LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 5574
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 26, 2023
SUMMARY
Synopsis: Requires DHS to provide information to SNAP and WFNJ recipients
regarding card skimming, cloning, and similar fraudulent activities
and to submit report to Governor and Legislature on these fraud
activities.
Type of Impact: Annual State expenditure increase.
Agencies Affected: Division of Family Development, Department of Human Services.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Cost Increase Up to $250,000
 The Office of Legislative Services (OLS) concludes that the Department of Human Services
(DHS) may incur up to $250,000 annually to fulfill all aspects of the bill’s reporting
requirement, assuming that no more than one full-time equivalent employee is required to
collect, compile, and present the mandated data to the Governor and Legislature. In addition
to staffing expenses, costs to fulfill this provision include the establishment of a system to
connect with local law enforcement agencies for information, as required under the bill.
BILL DESCRIPTION
This bill directs the Department of Human Services to provide information to Supplemental
Nutrition Assistance Program (SNAP) and WorkFirst New Jersey (WFNJ) recipients regarding
card skimming, cloning, and similar fraudulent activities. Information provided to recipients under
the bill is to be distributed in writing, at the point of enrollment and recertification in SNAP or
WFNJ and with the issuance of the recipient’s electronic benefits transfer card.
The department, in collaboration with local law enforcement agencies, is required to report to
the Governor and the Legislature, 18 months following the effective date of the bill, and annually
thereafter, data regarding stolen and replaced SNAP and WFNJ benefits, as collected under the
bill, as well as any other information that demonstrates the department’s efforts to protect SNAP
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
 FE to A5574
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and WFNJ recipients from fraud due to card skimming, card cloning, or similar fraudulent
methods.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF SERVICES
The OLS concludes that the department may incur costs of up to $250,000 annually to fulfill
all aspects of the bill’s reporting requirements, assuming that no more than one full-time equivalent
employee is required to collect, compile, and present the mandated data to the Governor and
Legislature. In addition to staffing, costs to fulfill this provision include the establishment of a
system to connect with local law enforcement agencies for information, as required under the bill.
According to the United States Department of Justice, as of 2018, there were 507 State and local
law enforcement agencies in New Jersey. Currently, SNAP and WFNJ recipients can report
fraudulent activities via an online form, phone call, or e-mail directly to the Division of Family
Development Fraud Identification and Recovery Management Unit.
This OLS estimate does not include any costs for the department to provide SNAP and WFNJ
recipients certain information regarding fraudulent activities upon enrollment in the respective
program, upon recertification, and with the issuance of a recipient’s electronic benefits transfer
card. The department currently contacts recipients during these enrollment events and the OLS
assumes that the information required under the bill can be incorporated into existing
communications without any cost to the department.
Section: Human Services
Analyst: Sarah Schmidt
Lead Research Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).