Assembly Bill A8197

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8197
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 5, 2025
                                ___________
 
 Introduced  by  M.  of A. NOVAKHOV, BROOK-KRASNY, CHANG -- read once and
   referred to the Committee on Social Services
 
 AN ACT to amend the social services law and the general business law, in
   relation to requiring signage  warning  about  EBT/SNAP  skimming  and
   mandating chip-enabled point-of-sale systems for SNAP transactions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that Electronic
 Benefit Transfer (EBT) and  Supplemental  Nutrition  Assistance  Program
 (SNAP)  recipients  are increasingly at risk of benefit theft due to the
 use of illegal skimming devices installed  on  point-of-sale  terminals.
 These devices compromise the security of magnetic stripe cards and cause
 significant  financial  harm to vulnerable New Yorkers. To mitigate this
 threat, it is necessary to raise consumer  awareness  through  mandatory
 signage  and to modernize payment systems by requiring chip-enabled card
 readers in all retail establishments that accept SNAP.
   § 2. Section 95 of the social services law is amended by adding a  new
 subdivision 12 to read as follows:
   12.  (A) ALL RETAIL FOOD STORES, AND AUTHORIZED SNAP RETAILERS LOCATED
 IN THE STATE SHALL PROMINENTLY DISPLAY A SIGN AT EACH PUBLIC ENTRANCE TO
 THE STORE WARNING CUSTOMERS ABOUT THE POTENTIAL  FOR  SNAP/EBT  SKIMMING
 FRAUD.
   (B)  SUCH  SIGN  SHALL BE AT LEAST EIGHT AND ONE-HALF INCHES BY ELEVEN
 INCHES, WRITTEN IN PLAIN LANGUAGE, AND INCLUDE THE FOLLOWING OR SUBSTAN-
 TIALLY SIMILAR MESSAGE:
 WARNING: EBT AND SNAP BENEFITS MAY BE AT RISK OF THEFT  THROUGH  ILLEGAL
 SKIMMING DEVICES.
 DO  NOT  SWIPE  YOUR CARD IF THE CARD READER APPEARS DAMAGED OR TAMPERED
 WITH.
 USE CHIP-ENABLED TERMINALS WHEN AVAILABLE. REPORT SUSPECTED FRAUD TO THE
 NYS EBT CUSTOMER SERVICE AT 1-888-328-6399.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11692-01-5
              

 A. 8197                             2
 
   (C) THE OFFICE OF TEMPORARY AND DISABILITY  ASSISTANCE  SHALL  DEVELOP
 AND  MAKE AVAILABLE A STANDARDIZED SIGN TEMPLATE FOR USE BY ALL AFFECTED
 RETAILERS.
   § 3. The general business law is amended by adding a new section 397-c
 to read as follows:
   §  397-C.  SNAP  SECURITY AT POINT-OF-SALE TERMINALS. 1. BEGINNING THE
 FIRST OF JANUARY NEXT SUCCEEDING THE EFFECTIVE DATE OF THIS SECTION, ALL
 BUSINESSES IN THE STATE THAT ACCEPT  SUPPLEMENTAL  NUTRITION  ASSISTANCE
 PROGRAM  (SNAP)  BENEFITS SHALL INSTALL AND UTILIZE POINT-OF-SALE TERMI-
 NALS THAT SUPPORT EUROPAY, MASTERCARD, AND VISA (EMV)  CHIP  CARD  FUNC-
 TIONALITY FOR ELECTRONIC BENEFIT TRANSFER (EBT) TRANSACTIONS.
   2.  ANY  BUSINESS  THAT  FAILS  TO  COMPLY WITH THE PROVISIONS OF THIS
 SECTION SHALL BE SUBJECT TO A  CIVIL  PENALTY  OF  UP  TO  FIVE  HUNDRED
 DOLLARS  FOR  EACH  VIOLATION, UNLESS SUCH BUSINESS CAN DEMONSTRATE THAT
 COMPLIANCE WAS NOT FEASIBLE  DUE  TO  EQUIPMENT  AVAILABILITY  OR  OTHER
 CIRCUMSTANCES  AS  DETERMINED  BY  THE  DEPARTMENT  OF  AGRICULTURE  AND
 MARKETS.
   3. THE DEPARTMENT OF AGRICULTURE AND MARKETS, IN CONSULTATION WITH THE
 OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE,  SHALL  PROMULGATE  RULES
 AND  REGULATIONS  NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SECTION,
 INCLUDING PROVISIONS FOR FINANCIAL ASSISTANCE OR GRANTS TO SUPPORT SMALL
 BUSINESSES WITH THE COST ASSOCIATED WITH UPGRADING EQUIPMENT.
   § 4. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be  invalid,  such  judgment shall not affect, impair, or invalidate the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence, paragraph, section or part thereof directly  involved  in  the
 controversy in which such judgment shall have been rendered.
   § 5. This act shall take effect on the one hundred twentieth day after
 it  shall  have become a law; provided, however subdivision 3 of section
 397-c of the general business law as added by section two  of  this  act
 shall  take  effect  immediately.  Effective  immediately, the addition,
 amendment and/or repeal of any rule  or  regulation  necessary  for  the
 implementation  of  this  act on its effective date are authorized to be
 made and completed on or before such effective date.