BILL NUMBER: S8918
SPONSOR: SEPULVEDA
 
TITLE OF BILL:
An act to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to include automatic credit or debit
card cancellation when fraudulent activity has been reported
 
PURPOSE:
This bill would require the implementation of a system that would auto-
matically cancel EBT cards when the recipient reports fraudulent activ-
ity
 
SUMMARY OF PROVISIONS:
Section 1: Adds paragraph (c) to subdivision 1 of section 21-a of social
services law
(c) When an EBT recipient reports fraudulent activity on their EBT
account their card will automatically be cancelled. At this point they
will be permitted to apply for a replacement card.
2. Effective Date.
 
JUSTIFICATION:
As it stands, if an EBT recipient has their benefits stolen, they must
report their benefits stolen to get reimbursed. Then the recipient must
cancel their card in order to apply for a new, uncompromised card.
If a recipient reports fraudulent activity their card should be automat-
ically cancelled at that point. There is no reason to make these victims
jump through multiple hoops so they may once again be able to put food
on the table.
Moreover, the current multi-step system leaves victims susceptible to
further theft. If a recipient fails to cancel their current card,
thieves can continue to steal their funds each time they are added to
the account. This results in the waste of taxpayer money, added stress
to the government agency, and more hardship for an already vulnerable
New Yorker.
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become a law.