New Jersey Assembly Bill A5574

New Jersey 2022-2023 Regular Session

• Introduced: 6/8/23
• Refer: 6/8/23
• Refer: 6/15/23
• Report Pass: 6/22/23
• Engrossed: 6/30/23
• Refer: 11/27/23

Caption

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.

Impact

The information must include details on how recipients can claim back stolen benefits due to these fraudulent activities for a set period. Specifically, benefits reportedly stolen between October 1, 2022, and September 30, 2024, are to be replaced with federal funds. The act aims to ensure that recipients are not only aware of the risks associated with their electronic benefits transfer cards but are also aware of the processes to report theft and seek restitution, ultimately aiming to improve their security against these threats.

Summary

Assembly Bill A5574 requires the New Jersey Department of Human Services (DHS) to inform recipients of the Supplemental Nutrition Assistance Program (SNAP) and the Work First New Jersey Program (WFNJ) about the risks of card skimming, cloning, and other fraudulent activities. This bill stems from increasing concerns over the theft of benefits through electronic means, particularly affecting vulnerable populations that rely on these programs for food and cash assistance. It mandates the DHS to educate recipients on how to shield themselves from these fraudulent practices, including providing precautionary information at enrollment and recertification points.

Contention

There may be concerns regarding the efficacy of the measures proposed in the bill. While it aims to educate and protect recipients, some may argue about the adequacy of the responses and resources that will be allocated to ensure implementation and compliance from DHS. Furthermore, the effectiveness of communication to at-risk populations and the timely processing of claims for stolen benefits could result in discussions about the operational capabilities of the department tasked with executing these provisions. The bill also includes a requirement for DHS to report back to the Governor and the Legislature on these fraud-related activities, thus instituting transparency and accountability.