BILL NUMBER: S7224
SPONSOR: PERSAUD
 
TITLE OF BILL:
An act to amend the social services law, in relation to reissuing
certain benefits in instances of fraud or theft of such benefits
 
PURPOSE OR GENERAL IDEA OF BILL:
Authorizes the reissuance of certain benefits in instances of fraud or
theft of benefits.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 95 of the social services jaw to add a new
subdivision to allow the office to direct social services districts to
provide the replacement of benefits.
Section 2 amends subdivision 1 of section 303 by adding a new paragraph
to subdivision 1 to allow for the adjustment of the replacement of bene-
fits or assignment of federal replacement.
Section 3 amends section 350-j of the social services law by including
instances of theft when it is out of the control of the applicant.
Section 4 amends section 350-j of the social services law by adding a
new subdivision to allow for the adjustment of the replacement of bene-
fits or assignment of federal replacement benefits to reflect any bene-
fits issued under federal law within seven days of the theft being veri-
fied that occurred after January first, two thousand twenty-two. This
section includes that the replacement of any benefits applies to stolen
family assistance, emergency assistance to needy families, pandemic
electronic benefit transfer benefits, or supplemental nutrition assist-
ance program benefits.
Section 5 amends section 159 of the social services law by adding a new
subdivision to allow for the replacement of benefits or assignment of
federal replacement benefits to reflect any benefits issued under feder-
al law within seven days of the theft being verified that it occurred
after January first, two thousand twenty-two. This section includes the
replacement of any benefits applies to stolen safety net assistance,
emergency safety net assistance, pandemic electronic benefit transfer
benefits, or supplemental nutrition assistance program benefits.
Section 6 sets the effective date.
 
JUSTIFICATION:
Since December 2022, over 4,000 New Yorkers have been the victims of
public benefits theft by card skimming schemes and more than $700,000 in
public benefits has been stolen from New Yorkers as of August. Public
benefits skimming is the practice of individuals using devices and
attaching them to point-of-sale (POS) machines/PIN pads to steal card
numbers and other information from credit, debit, and EBT cards. The
loss of funds has had a devastating impact on families, such as skipping
meals until the next grocery pay period. This is also at a time when New
Yorkers are suffering from food insecurity with Hunger Solutions New
York reporting that "just over 1 in 10 New York households (10.5%) expe-
rience food insecurity."
The issue, however, is not just with SNAP but various forms of public
assistance that are being skimmed. This legislation would allow for the
Office of Temporary Disability Assistance (OTDA) to reimburse victims of
theft of their safety net assistance, family assistance and SNAP. It
would also require the re-issuance of benefits in the amount stolen,
reimbursement within 7 days of theft being verified and would apply to
theft of benefits occurring on or after January 1, 2022, which is not
accounted for in the recent federal 2022 omnibus bill. Food insecurity
is impacting Black, Brown, and low-income New Yorkers across our state.
This legislation would result in relief and the replacement of stolen
public benefits and help to address a national crisis that is hurting
our most vulnerable and needy families.
 
LEGISLATIVE HISTORY:
2023/2024: S4736 referred to Social Services
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7224: 95 social services law, 303 social services law, 303(1) social services law, 350-j social services law, 350-j(2) social services law, 159 social services law