BILL NUMBER: S1465

SPONSOR: SERRANO
 
TITLE OF BILL:

An act to amend the social services law, in relation to implementing an
electronic benefit transfer system

 
PURPOSE OR GENERAL IDEA OF BILL:

Requires the implementation of an electronic benefit transfer system.

 
SUMMARY OF PROVISIONS:

Section 1 amends section 95 of the social services law by adding a new
subdivision 12 which allows the office to implement an electronic bene-
fit transfer system utilizing industry-standard commercial electronic
funds transfer technology. This includes the use of EMV chip cards by
June twenty-first, two thousand twenty-six.

Section 2 sets the effective date.

              

 
JUSTIFICATION:

In August 2022 alone, over 2,208 New Yorkers had SNAP funds stolen,
totaling a value of more than .5700,000 because of Supplemental Nutri-
tion Assistance Program (SNAP) skimming. SNAP skimming is the practice
of individuals using devices and attaching them to point-of-sale (PDS)
machines/PIN pads to steal card numbers and other information from cred-
it, debit, and EBT cards. The loss of funds has had a devastating impact
on families such as skipping meals until the next grocery pay period.

The process of skimming retrieves data from the magnetic strip on an
individual's card, which is then used to record the cardholder's PINS.
According to VISA, EMV chip cards decreased fraud by 87 percent from
2015-2019 because it has higher amounts of encryption technology on the
chip.

This legislation would allow the state to address the initial problem by
implementing EMV computer chip cards to protect public assistance funds
from being stolen from families who are already experiencing food inse-
curity and difficult financial times.

 
LEGISLATIVE HISTORY:

2023-2024: 5.7823B - Passed Senate. Delivered to Assembly.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.