Directs the commissioner of the office of temporary and disability assistance to develop and implement a program to replace all magnetic-strip electronic benefit transfer cards issued by or on behalf of the state with chip-enabled smart cards; provides for reimbursement of benefits.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9358
SPONSOR: Colton TITLE OF BILL:
An act to amend the social services law, in relation to establishing an
electronic benefit card replacement program
PURPOSE OR GENERAL IDEA OF BILL:
To incentivize New York State to replace the SNAP EBT benefit cards with
a magnetic strip and chip to mitigate the scanning and skimming of
users.
SUMMARY OF PROVISIONS:
Section 1 provides guides on creating a program for replacing all
current EBT cards with new ones that include magnetic-strip technology
with chip-enabled smart cards. It also provides that until a user is
provided a new chip-enabled smart card, the state shall be responsible
for reimbursing the holder of an EBT card that has been scammed, given
they were not involved in the scamming.
JUSTIFICATION:
Within the past year, there have been a lot of issues with users of EBT
cards getting skimmed of their money. There has been the beginning of
efforts to reduce the scam, one of those being implementing a magnetic
chip on the cards. However, it has been over a year and the state has
not implemented this change yet. By requiring the state to pay the
people who have been scanned back until they implement chips, it will
help innocent victims who are consistently being scammed and incentivize
the state to get a move on fixing this issue. Families should not be
going hungry due do a loop in a system that can be fixed.
PRIOR LEGISLATIVE HISTORY:
NONE.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9358
2025-2026 Regular Sessions
IN ASSEMBLY
December 19, 2025
___________
Introduced by M. of A. COLTON -- read once and referred to the Committee
on Social Services
AN ACT to amend the social services law, in relation to establishing an
electronic benefit card replacement program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The social services law is amended by adding a new section
2 152-e to read as follows:
3 § 152-e. Electronic benefit card replacement. 1. For the purposes of
4 this section:
5 (a) "Commissioner" means the commissioner of the office of temporary
6 and disability assistance.
7 (b) "Office" means the office of temporary and disability assistance.
8 (c) "Electronic benefit transfer card" means any card or device issued
9 in connection with the electronic benefit transfer system established in
10 section twenty-one-a of this chapter that allows individuals to access
11 public assistance or benefit funds including:
12 (i) any medical assistance card, food stamp assistance card, public
13 assistance card, or any other identification, authorization card or
14 electronic access device issued by the state or a social services
15 district as defined in subdivision seven of section two of this chapter
16 which entitles a person to obtain public assistance benefits under a
17 local, state or federal program administered by the state, its political
18 subdivisions or social services districts; or
19 (ii) any unemployment insurance program card, occupational training
20 act program card, adoption subsidy electronic payments program card, or
21 card issued by the New York child support program which entitles a
22 person to receive funds under a local, state or federal program adminis-
23 tered by the state, its political subdivisions or social services
24 districts.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14214-01-5
A. 9358 2
1 2. (a) Within one year of the effective date of this section, the
2 commissioner shall develop and implement a program to replace all elec-
3 tronic benefit transfer cards issued by or on behalf of the state that
4 utilize magnetic-strip technology with chip-enabled smart cards. Within
5 one year of the commencement of the program, no additional electronic
6 benefit transfer magnetic-strip cards shall be issued by or on behalf of
7 the state to an existing or new holder of such cards.
8 (b) The state shall reimburse the holder of an electronic benefit
9 transfer card utilizing magnetic-strip technology for benefits stolen
10 from the card until such time as the holder is provided by or on behalf
11 of the state with a chip-enabled smart card, provided the holder of the
12 card is not implicated in the theft of the benefits from the magnetic-
13 strip electronic benefit transfer card.
14 3. The commissioner shall promulgate rules and regulations as neces-
15 sary to implement the provisions of this section.
16 § 2. This act shall take effect immediately.
