Department of Human Services – Electronic Benefits Transfer Cards – Theft and Restoration of Benefits
Impact
A significant component of the legislation is focused on the restoration of benefits lost due to theft. Under this bill, households that experience theft are entitled to automatic restoration of their benefits without excessive bureaucratic hurdles. Local departments are instructed to take proactive measures by restoring theft-related benefits once they are aware of a household’s situation, ensuring that those affected are swiftly notified and compensated. This represents a transformative change in how benefits are managed and restored following incidents of theft.
Summary
House Bill 697, titled 'Department of Human Services – Electronic Benefits Transfer Cards – Theft and Restoration of Benefits', is designed to address the issues surrounding the security of electronic benefits transfer (EBT) cards used in social services. The bill mandates local departments of social services to develop a secure EBT card system that actively monitors card activity for potential theft and fraud. Notably, the bill requires that all new EBT cards issued carry an embedded microchip to enhance security and safeguard personal identification information.
Conclusion
Overall, HB 697 is a proactive legislative measure aimed at securing electronic benefits for households reliant on social services. By embedding advanced security features in EBT cards and streamlining the process for restoring lost benefits, the bill seeks to reduce the vulnerability of recipients to theft and fraud while addressing broader issues of social service administration in Maryland.
Contention
The bill highlights a crucial balance between protecting vulnerable populations from fraudulent activities while ensuring that they do not face unnecessary barriers when recovering lost benefits. However, it has sparked discussions about the implications on bureaucratic processes within social services. Some concerns have been voiced regarding the feasibility of implementing these security measures and the timeline for requiring retailers to upgrade their systems. This aspect of the bill is particularly contentious as it places significant responsibilities on local businesses to adopt new technologies swiftly.
An Act to Require the Department of Health and Human Services to Review Medicaid, Supplemental Nutrition Assistance Program and Electronic Benefits Transfer Card Transactions and Lottery Operations
Public assistance programs; requiring the Department of Human Services to opt into and administer Summer Electronic Benefits Transfer program. Effective date.
Public assistance programs; requiring the Department of Human Services to opt into and administer Summer Electronic Benefits Transfer program. Effective date.
Requires State to adopt practices to reduce SNAP benefits theft and to replace stolen SNAP benefits under certain circumstances; upgrades criminal penalties for SNAP benefits theft; makes appropriation.
To amend sections 5101.54 and 5101.542 and to enact section 5101.5411 of the Revised Code to require Ohio's SNAP program to begin using chip-enabled EBT cards, to name this act the Enhanced Cybersecurity for SNAP Act of 2026, and to make an appropriation.