Establishes Stolen SNAP Benefits Replacement Fund in Department of Treasury, requires DHS to replace stolen SNAP benefits from fund, and appropriates $20 million to AOC.
Summary
A4943 would create a temporary state program to reimburse Supplemental Nutrition Assistance Program (SNAP) participants whose benefits were stolen through EBT card skimming, card cloning, or similar fraud. The bill directs the Commissioner of Human Services to set up a claims process, publicize the eligibility rules, and replace stolen benefits from a new Stolen SNAP Benefits Replacement Fund. Eligible thefts are limited to losses occurring after the end of the prior federal replacement program and before a participant receives a chip-enabled EBT card from the Department of Human Services.
To finance the fund, the bill requires the Attorney General to assess a temporary supplemental fee equal to 5% of penalties and restitution paid in certain civil or criminal settlement agreements, with the money collected through the courts and deposited into the fund. The bill also appropriates $20 million to the Administrative Office of the Courts to build and maintain a standardized computer system for collecting the fee and covering related administrative costs. The fund would be dissolved after the state fully transitions to chip technology EBT cards, and the Commissioner of Human Services would then report to the Governor and Legislature on the amount of benefits restored and any remaining balances returned to the General Fund.
Impact
The bill would add a new temporary mechanism in state law for replacing stolen SNAP benefits and would create a dedicated revolving fund in the Department of the Treasury for that purpose. It would also impose new administrative duties on the Department of Human Services, the Attorney General, the State Treasurer, and the courts, including eligibility determinations, fee collection, fund administration, and reporting. In practical terms, it would shift the cost of replacing stolen benefits from federal support to a state-funded structure during the transition to chip-enabled EBT cards, while also requiring public notice to SNAP participants about the replacement process.
Sentiment
The bill appears generally supportive of SNAP recipients and aimed at addressing a real consumer-protection and anti-fraud problem, especially the gap left after expiration of the federal stolen-benefits replacement program. The structure of the bill suggests an urgency to provide relief quickly while the state transitions to more secure chip technology. No committee transcripts or recorded votes were provided, so there is no documented floor or committee sentiment beyond the bill’s stated purpose and design.
Contention
The main policy issues likely concern how the replacement fund is financed and administered. The bill uses a 5% supplemental fee on penalties and restitution from certain Attorney General settlements, which could draw scrutiny from those concerned about diverting settlement-related funds or creating a new court collection burden. The $20 million appropriation to the Administrative Office of the Courts may also be a point of contention because it is a sizable upfront administrative cost tied to building a fee-collection system rather than directly reimbursing SNAP losses. Another possible issue is the temporary nature of the program and the narrow eligibility window, which may raise questions about whether all affected households will be covered before chip cards are fully deployed.
Same As
Establishes Stolen SNAP Benefits Replacement Fund in Department of Treasury, requires DHS to replace stolen SNAP benefits from fund, and appropriates $20 million to AOC.
Carry Over
Establishes Stolen SNAP Benefits Replacement Fund in Department of Treasury, requires DHS to replace stolen SNAP benefits from fund, and appropriates $20 million to AOC.