NY State Senate Bill 2023-S8662

Senate Bill S8662

2023-2024 Legislative Session

Requires electronic benefit transfer systems to allow for benefit recipients to cancel or lock a credit or debit card when fraud has been suspected or reported

download bill text pdf

Current Bill Status - In Senate Committee Social Services Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 25, 2024	print number 8662a
Mar 25, 2024	amend and recommit to social services
Feb 27, 2024	referred to social services

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S8662 - Details

Current Committee:: Senate Social Services
Law Section:: Social Services Law
Laws Affected:: Amd §21-a, Soc Serv L

2023-S8662 - Summary

Requires electronic benefit transfer systems to allow for benefit recipients to cancel or lock a credit or debit card when fraud has been suspected or reported; directs that any interactive voice response system associated with an electronic benefit transfer system which benefit recipients may call for support or assistance shall include an option for benefit recipients to report fraud and cancel, lock or unlock their electronic benefit transfer credit or debit card.

2023-S8662 - Sponsor Memo

                                 
BILL NUMBER: S8662

SPONSOR: FELDER
 
TITLE OF BILL:

An act to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to include fraud detection for unauthor-
ized transactions

 
PURPOSE:

To implement a system to prevent EBT benefit theft.

 
SUMMARY OF PROVISIONS:

Section 1 (i)Requires any electronic benefit transfer system to include
a fraud detection mechanism that will include but not be limited to
requiring authorization from the benefit recipient prior to a trans-
action being completed in another state.

(ii)Ability to opt out for those who do not want authorization to be
required. Section 2 effective date

 
JUSTIFICATION:

Increasingly sophisticated fraud and theft schemes targeting Electronic
Benefit Transfer (EBT)recipients have grown to alarming levels affecting
large populations of beneficiaries and costing taxpayers millions of
dollars. Despite the recognition of these schemes by the allocation of
reimbursement reserves, little has been accomplished in proactive
approaches to prevent these thefts.

While major bank and credit card companies have implemented various
protections to combat the increasingly elaborate scams, EBT has lagged
behind. Fraud detection systems are crucial for protecting the individ-
uals who depend on Supplemental Nutrition Assistance Program (SNAP)
benefits, protecting the taxpayers who fund these programs and alleviat-
ing pressure on agency personnel. By instituting a verification mech-
anism when transactions are initiated. out-of-state would represent
significant progress in ensuring the most vulnerable among us are not
falling victim to these schemes and helps safeguard the finite amount of
funds recipients have to feed their families.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
EFFECTIVE DATE:
This act shall take effect six months after it shall become law.

2023-S8662 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8662
 
                             I N  S E N A T E
 
                             February 27, 2024
                                ___________
 
 Introduced  by  Sen.  FELDER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Social Services
 
 AN ACT to amend the social services law, in relation to requiring  elec-
   tronic  benefit  transfer systems to include fraud detection for unau-
   thorized transactions
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 21-a of the social services law is
 amended by adding a new paragraph (c) to read as follows:
   (C) (I) ANY ELECTRONIC BENEFIT TRANSFER SYSTEM IMPLEMENTED PURSUANT TO
 THIS  SECTION SHALL INCLUDE A FRAUD DETECTION MECHANISM TO PROTECT BENE-
 FIT RECIPIENTS FROM STOLEN CARDS  AND  UNAUTHORIZED  TRANSACTIONS.  SUCH
 FRAUD  DETECTION MECHANISM SHALL INCLUDE, BUT NOT BE LIMITED TO, REQUIR-
 ING AUTHORIZATION FROM THE BENEFIT RECIPIENT BEFORE ANY TRANSACTION  CAN
 BE COMPLETED IF SUCH TRANSACTION IS BEING MADE IN A STATE OTHER THAN NEW
 YORK.  SUCH AUTHORIZATION SHALL BE IN A FORM AND MANNER TO BE DETERMINED
 BY THE DEPARTMENT.
   (II) THE DEPARTMENT SHALL ESTABLISH AN OPT-OUT PROCEDURE FOR ANY BENE-
 FIT  RECIPIENT  WHO  DOES  NOT  WANT  AUTHORIZATION  TO BE REQUIRED WHEN
 CONDUCTING A TRANSACTION IN ANOTHER STATE. SUCH OPT-OUT SHALL BE DONE BY
 FORM AND SUCH FORM SHALL BE MADE AVAILABLE IN HARD  COPY  AND  ELECTRON-
 ICALLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.
   §  2. This act shall take effect six months after it shall have become
 a law.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14361-04-4

co-Sponsors

2023-S8662A (ACTIVE) - Details

Current Committee:: Senate Social Services
Law Section:: Social Services Law
Laws Affected:: Amd §21-a, Soc Serv L

2023-S8662A (ACTIVE) - Summary

2023-S8662A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8662A

SPONSOR: FELDER
 
TITLE OF BILL:

An act to amend the social services law, in relation to requiring elec-
tronic benefit transfer systems to include fraud detection for unauthor-
ized transactions

 
PURPOSE:

To implement a system to prevent EBT benefit theft.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1 of section 21-a of the social services
law by creating an option for ebt beneficiaries to lock or unlock their
card via a Interactive Voice Response System (IVR) and to specifically
lock their card for out-of-state or online purchases.

 
JUSTIFICATION:

Increasingly sophisticated fraud and theft schemes targeting Electronic
Benefit Transfer (EBT)recipients have grown to alarming levels affecting
large populations of beneficiaries. Despite the recognition of these
schemes costing taxpayers millions of dollars little has been accom-
plished to proactively prevent these thefts.

While major bank and credit card companies have implemented various
protections to combat the increasingly elaborate scams, EBT has lagged
behind. Fraud detection systems are crucial for protecting the individ-
uals who depend on Supplemental Nutrition Assistance Program (SNAP)
benefits, protecting the. taxpayers who fund these programs and allevi-
ating pressure on agency personnel. By instituting a verification mech-
anism when transactions are initiated out-of-state, New York would be
showing progress in ensuring the most vulnerable among us are not fall-
ing victim to these schemes. It would provide a valuable safeguard for
the finite amount of funds recipients have to feed their families.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
EFFECTIVE DATE:
This act shall take effect six months after it shall become law.

2023-S8662A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8662--A
 
                             I N  S E N A T E
 
                             February 27, 2024
                                ___________
 
 Introduced by Sens. FELDER, SEPULVEDA -- read twice and ordered printed,
   and  when  printed to be committed to the Committee on Social Services
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN  ACT to amend the social services law, in relation to requiring elec-
   tronic benefit transfer systems to include fraud detection  for  unau-
   thorized transactions
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 21-a of the social services law is
 amended by adding a new paragraph (c) to read as follows:
   (C) ANY INTERACTIVE VOICE RESPONSE SYSTEM ASSOCIATED WITH AN ELECTRON-
 IC BENEFIT TRANSFER SYSTEM WHICH BENEFIT RECIPIENTS MAY CALL FOR SUPPORT
 OR ASSISTANCE SHALL INCLUDE AN OPTION FOR BENEFIT RECIPIENTS  TO  REPORT
 FRAUD  AND  CANCEL  SUCH BENEFIT RECIPIENT'S ELECTRONIC BENEFIT TRANSFER
 CREDIT OR DEBIT CARD PERMANENTLY OR LOCK SUCH BENEFIT RECIPIENT'S  ELEC-
 TRONIC  BENEFIT  TRANSFER  CREDIT OR DEBIT CARD INDEFINITELY.  PROVIDED,
 FURTHER, ANY INTERACTIVE VOICE RESPONSE SYSTEM ASSOCIATED WITH AN  ELEC-
 TRONIC  BENEFIT  TRANSFER  SYSTEM  WHICH BENEFIT RECIPIENTS MAY CALL FOR
 SUPPORT OR ASSISTANCE SHALL ALSO ALLOW FOR BENEFIT  RECIPIENTS  TO  LOCK
 SUCH BENEFIT RECIPIENT'S CREDIT OR DEBIT CARD FOR OUT OF STATE PURCHASES
 ONLY OR FOR ONLINE PURCHASES ONLY.
   §  2. This act shall take effect six months after it shall have become
 a law.
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14361-14-4

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S8662

Share this bill

Sponsored By

Simcha Felder

Current Bill Status - In Senate Committee Social Services Committee

Bill Amendments

co-Sponsors

Luis R. Sepúlveda

2023-S8662 - Details

2023-S8662 - Summary

2023-S8662 - Sponsor Memo

2023-S8662 - Bill Text download pdf

co-Sponsors

Luis R. Sepúlveda

2023-S8662A (ACTIVE) - Details

2023-S8662A (ACTIVE) - Summary

2023-S8662A (ACTIVE) - Sponsor Memo

2023-S8662A (ACTIVE) - Bill Text download pdf

Comments