Maryland 2025 Regular Session

Maryland House Bill HB175 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0175
6	6
7	7	HOUSE BILL 175
8	8	O1, I1 5lr0336
9	9	(PRE–FILED) CF SB 232
10	10	By: Chair, Appropriations Committee (By Request – Departmental – Human
11	11	Services)
12	12	Requested: October 3, 2024
13	13	Introduced and read first time: January 8, 2025
14	14	Assigned to: Appropriations
15	15
16	16	A BILL ENTITLED
17	17
18	18	AN ACT concerning 1
19	19
20	20	Electronic Benefits Transfer Cards – Restoration and Receipt of Benefits and 2
21	21	Use at Automated Teller Machines 3
22	22
23	23	FOR the purpose of requiring, subject to a certain provision of law, the Department of 4
24	24	Human Services to reimburse a beneficiary for any benefits lost due to the fraudulent 5
25	25	use of the beneficiary’s Electronic Benefits Transfer card and restore the benefits 6
26	26	without further action from the household; requiring the Department to reimburse 7
27	27	a beneficiary on or before a certain date for any benefits lost due to the fraudulent 8
28	28	use of the beneficiary’s Electronic Benefits Transfer card that occurred between 9
29	29	certain dates, and requiring the beneficiary to submit a claim to the Department by 10
30	30	a certain date to be eligible for reimbursement; requiring, on or before a certain date, 11
31	31	each operator of an automated teller machine to ensure that the machine has certain 12
32	32	functionality relating to Electronic Benefits Transfer cards; and generally relating 13
33	33	to electronic benefits. 14
34	34
35	35	BY repealing and reenacting, with amendments, 15
36	36	Article – Human Services 16
37	37	Section 5–609 and 5–610 17
38	38	Annotated Code of Maryland 18
39	39	(2019 Replacement Volume and 2024 Supplement) 19
40	40
41	41	BY repealing and reenacting, with amendments, 20
42	42	Article – Financial Institutions 21
43	43	Section 1–401(d) 22
44	44	Annotated Code of Maryland 23
45	45	(2020 Replacement Volume and 2024 Supplement) 24
46	46
47	47	BY adding to 25
48	48	Article – Financial Institutions 26 2 HOUSE BILL 175
49	49
50	50
51	51	Section 1–407 1
52	52	Annotated Code of Maryland 2
53	53	(2020 Replacement Volume and 2024 Supplement) 3
54	54
55	55	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
56	56	That the Laws of Maryland read as follows: 5
57	57
58	58	Article – Human Services 6
59	59
60	60	5–609. 7
61	61
62	62	(a) (1) In this section the following words have the meanings indicated. 8
63	63
64	64	(2) (i) “Personal identifying information” has the meaning stated in § 9
65	65	8–301 of the Criminal Law Article. 10
66	66
67	67	(ii) “Personal identifying information” includes an Electronic 11
68	68	Benefits Transfer card number or personal identification number. 12
69	69
70	70	(3) “Skimming practices” includes: 13
71	71
72	72	(i) use of a skimming device, including a scanner, skimmer, reader, 14
73	73	or other electronic device used to access, read, scan, obtain, memorize, or store, temporarily 15
74	74	or permanently, personal identifying information; or 16
75	75
76	76	(ii) adding malicious code illegally to a website to capture Electronic 17
77	77	Benefits Transfer card data or personal identifying information. 18
78	78
79	79	(4) “Theft” includes: 19
80	80
81	81	(i) physical theft of an Electronic Benefits Transfer card; 20
82	82
83	83	(ii) identity fraud, as defined in § 8–301 of the Criminal Law Article; 21
84	84	and 22
85	85
86	86	(iii) theft through skimming practices. 23
87	87
88	88	(5) “Two–way fraud alert” means the capability of the Department to 24
89	89	communicate with households, and of households to communicate with the Department, 25
90	90	through text messaging regarding potential fraudulent use or theft of an Electronic 26
91	91	Benefits Transfer card. 27
92	92
93	93	(b) (1) If an investigation by the Department shows a household’s correctly 28
94	94	issued benefits were lost due to theft, the Department [automatically] shall, SUBJECT TO 29
95	95	THE REQUIREMENTS OF § 5–610 OF THIS SUBTITLE , restore the benefits without 30
96	96	requiring further action from the household. 31
97	97	HOUSE BILL 175 3
98	98
99	99
100	100	(2) As soon as practicable, but not later than 10 days after a household 1
101	101	informs the Department of the loss of benefits due to theft, the Department shall: 2
102	102
103	103	(i) notify the household in writing of the Department’s decision as 3
104	104	to whether to restore benefits, the amount of benefits to be restored, and the right to and 4
105	105	method of requesting a hearing on the Department’s decision in accordance with subsection 5
106	106	(c) of this section; 6
107	107
108	108	(ii) if the Department determines that the household receives 7
109	109	benefits, restore benefits to the household in the amount of benefits that was lost; and 8
110	110
111	111	(iii) provide the household with a new Electronic Benefits Transfer 9
112	112	card. 10
113	113
114	114	(3) The Department may not: 11
115	115
116	116	(i) require a household to provide a police report as a condition of 12
117	117	restoration of benefits; or 13
118	118
119	119	(ii) limit the number of months in which a household can receive 14
120	120	restoration of benefits lost due to theft. 15
121	121
122	122	(c) (1) If a household disputes the amount of benefits restored or the 16
123	123	Department’s determination that no restoration is due, the household may request a 17
124	124	hearing with the Department within 90 days after the date of the Department’s 18
125	125	determination. 19
126	126
127	127	(2) If a household requests a hearing under this subsection, the 20
128	128	Department shall restore the benefits for which the household claims entitlement while the 21
129	129	hearing is pending. 22
130	130
131	131	(3) If the hearing decision is unfavorable to the household, any benefits 23
132	132	improperly restored under paragraph (2) of this subsection may be recovered by the 24
133	133	Department by reducing the household’s benefit at a rate that may not exceed the lesser of 25
134	134	$10 or 5% of the household’s monthly allotment of benefits. 26
135	135
136	136	(d) In the procurement process for electronic benefits distribution or 27
137	137	administration, the State or State–aided or State–controlled entity shall give preference to 28
138	138	a vendor that: 29
139	139
140	140	(1) holds a form of insurance that can be used to reimburse a beneficiary 30
141	141	for identity fraud or theft; and 31
142	142
143	143	(2) provides identity access protections to protect an eligible beneficiary 32
144	144	against identity fraud and theft, which may include multifactor authentication. 33
145	145	4 HOUSE BILL 175
146	146
147	147
148	148	(e) The Department shall coordinate with vendors to take available precautions 1
149	149	to reduce the vulnerability of Electronic Benefits Transfer cards to theft by utilizing 2
150	150	enhanced technology. 3
151	151
152	152	(F) SUBJECT TO THE LIMITA TIONS OF THE STATE BUDGET AND 4
153	153	SUBSECTION (B) OF THIS SECTION , THE DEPARTMENT SHALL RESTORE BENEFITS 5
154	154	TO A HOUSEHOLD AS PR OVIDED FOR BY AN APP ROPRIATION FOR THE P URPOSES OF 6
155	155	ELECTRONIC BENEFIT T HEFT RESTORATION . 7
156	156
157	157	[(f)] (G) On or before December 1 each year, the Department, in consultation 8
158	158	with local law enforcement agencies in the State, shall report to the General Assembly, in 9
159	159	accordance with § 2–1257 of the State Government Article, on: 10
160	160
161	161	(1) the accessibility and security of Electronic Benefits Transfer cards; 11
162	162
163	163	(2) actions taken to reduce the fraudulent use of Electronic Benefits 12
164	164	Transfer cards; 13
165	165
166	166	(3) the number of Electronic Benefits Transfer cards reissued due to fraud 14
167	167	in the immediately preceding year; 15
168	168
169	169	(4) the number of households reporting theft of benefits, by jurisdiction and 16
170	170	program; 17
171	171
172	172	(5) the number of households eligible for expedited Supplemental 18
173	173	Nutrition Assistance Program benefits that reported loss of benefits due to theft, by 19
174	174	jurisdiction and program; 20
175	175
176	176	(6) the total dollar amount of benefits reported lost due to theft, by 21
177	177	jurisdiction and program; 22
178	178
179	179	(7) the number of determinations of theft made by the Department, by 23
180	180	jurisdiction; 24
181	181
182	182	(8) the number of determinations made by the Department that theft did 25
183	183	not occur, by jurisdiction; 26
184	184
185	185	(9) the number of households reimbursed for benefits lost due to theft and 27
186	186	the total dollar amount of benefits restored, by jurisdiction and program; 28
187	187
188	188	(10) the average and maximum length of time, in days, between the report 29
189	189	of theft and the restoration of benefits, by jurisdiction; 30
190	190
191	191	(11) the number of hearings requested and the number of households that 31
192	192	received a restoration of benefits as an outcome of a hearing, by jurisdiction; and 32
193	193	HOUSE BILL 175 5
194	194
195	195
196	196	(12) demographic data on households that experienced theft, including race, 1
197	197	gender, number of households with children under the age of 18 years, and number of 2
198	198	households with a member at least 60 years old. 3
199	199
200	200	5–610. 4
201	201
202	202	(a) The Department [may] SHALL: 5
203	203
204	204	(1) restore benefits to any household that lost benefits due to theft that 6
205	205	occurred between January 1, 2021, and [October 1, 2022] JULY 1, 2025, both inclusive, 7
206	206	provided that the Department confirms the household lost benefits due to theft during that 8
207	207	time period; and 9
208	208
209	209	(2) support innovative practices required to support beneficiaries during 10
210	210	the time period between the reporting of the loss of benefits due to theft and the restoration 11
211	211	of benefits. 12
212	212
213	213	(b) On or before [September 1, 2023] SEPTEMBER 30, 2026, the Department 13
214	214	shall issue benefits to households eligible to receive funds under subsection (a) of this 14
215	215	section. 15
216	216
217	217	(C) ANY CLAIM FOR THE RES TORATION OF LOST BENEF ITS DUE TO THEFT 16
218	218	THAT OCCURRED BETWEE N JANUARY 1, 2021, AND JULY 1, 2025, BOTH INCLUSIVE , 17
219	219	SHALL BE SUBMITTED T O THE DEPARTMENT ON OR BEFO RE JUNE 30, 2026. 18
220	220
221	221	(D) ANY RESTORATION OF LO ST BENEFITS DUE TO T HEFT IN THIS SECTION 19
222	222	IS SUBJECT TO THE LIMITATIONS OF T HE STATE BUDGET . 20
223	223
224	224	Article – Financial Institutions 21
225	225
226	226	1–401. 22
227	227
228	228	(d) (1) “Automated teller machine” means any electronic information 23
229	229	processing device located in this State which [accepts]: 24
230	230
231	231	(I) ACCEPTS or dispenses cash in connection with a credit, deposit, 25
232	232	or convenience account; AND 26
233	233
234	234	(II) PROCESSES AND DISPENS ES CASH FROM AN ELECTRONIC 27
235	235	BENEFITS TRANSFER CARD . 28
236	236
237	237	(2) “Automated teller machine” does not include devices used: 29
238	238
239	239	(i) Solely to facilitate check guarantees or check authorizations; 30
240	240	6 HOUSE BILL 175
241	241
242	242
243	243	(ii) In connection with the acceptance or dispensing of cash on a 1
244	244	person–to–person basis, including by a store cashier; or 2
245	245
246	246	(iii) For the payment of goods or services. 3
247	247
248	248	1–407. 4
249	249
250	250	ON OR BEFORE JANUARY 1, 2026, EACH OPERATOR OF AN AUTOMATED 5
251	251	TELLER MACHINE SHALL ENSURE THAT THE MACH INE HAS THE FUNCTION ALITY TO 6
252	252	PROCESS AND DISPENSE CASH FROM AN ELECTRONIC BENEFITS TRANSFER CARD . 7
253	253
254	254	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effec t July 8
255	255	1, 2025. 9
256	256