BILL NUMBER: S403
SPONSOR: MYRIE
 
TITLE OF BILL:
An act to amend the social services law and the state finance law, in
relation to establishing a SNAP and cash assistance fraud victims
compensation fund; and making an appropriation therefor
 
PURPOSE:
To establish a compensation fund for victims of SNAP fraud.
 
SUMMARY OF PROVISIONS:
Section 1 amends the social services law by adding section 95-b estab-
lishing the SNAP and cash assistance fraud victims compensation program
within the Office of Temporary and Disability Assistance (OTDA) which
shall provide language assistance for said agency's required application
process. This section also provides that the Inspector General, Attorney
General, and Commissioner of OTDA shall determine what constitutes fraud
and who shall receive such benefits under this program.
Section 2 amends the state finance law by adding section 99-qq providing
the State Comptroller and the Commissioner of OTDA with joint custody of
the program funds that shall consist of monies received from financial-
ly-related civil penalties and settlements.
Section 3 provides the sum of appropriations. Section 4 provides the
effective date.
 
JUSTIFICATION:
SNAP theft is on the rise in New York State. It is so commonplace that
government agencies like the NYC Human Resources Administration adminis-
ter SNAP issue warnings about potential scams. These scams sometimes
include the use of card-swiping machines to steal EBT card information
which drains funds from vulnerable families depending on these benefits
to buy food. Many victims of food stamp fraud are low-income working
families, seniors, and immigrants. These exposed groups of individuals,
especially those with language barriers, have a difficult time navigat-
ing the agencies to replace the stolen funds(1). In some instances, if
EBT theft is rightfully reported to the Human Resource Administration,
it may be passed along to the NYS Office of Temporary and Disability
Assistance (ODTA)(2). However, cases rarely get solved due to bureau-
cratic hurdles, unclear lines of responsibility, and a lack of agency
resources. This bill aims to (1) direct state resources to compensate
victims of SNAP theft, and; (2) provide an accessible and easy-to-navi-
gate process by which victims may receive those replacement funds.
 
LEGISLATIVE HISTORY:
S219 of 2023-24: Referred to Finance.
S9589 of 2021-22: Referred to Finance.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.