Restricts use of electronic benefit cards by cash assistance recipients.

A4616

ASSEMBLY, No. 4616

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblywoman� DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Restricts use of electronic benefit cards by cash
assistance recipients.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the use of electronic benefit cards
by cash assistance recipients and amending P.L.1997, c.37.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 5 of P.L.1997,
c.37 (C.44:10-75) is amended to read as follows:

���� 5.��� a.�� The department
shall implement the electronic benefit distribution system established pursuant
to P.L.1985, c.501 (C.44:10-5.1 et seq.) in every county of the State.

���� b.��� All cash assistance and
food stamp benefits shall be provided through the issuance of a single benefit
card utilizing the electronic benefit distribution system.� The commissioner
may include additional programs in this system at his discretion.

���� c.���� No charge, including a
fee imposed by a terminal owner, shall be imposed upon a person receiving cash
assistance, food stamp or other benefits for participating in the electronic
benefit transfer system, except as follows:

���� (1)�� after three free cash
automatic teller machine withdrawals in a month, the department may deduct a
transaction fee from a recipient's account for each subsequent withdrawal;

���� (2)�� a recipient shall be
required to pay a fee for a replacement benefit card in an amount to be
determined by the commissioner, which may be deducted from the recipient's
account as determined by the commissioner, in accordance with federal law; and

���� (3)�� in the case of a
recipient who elects to receive benefits at a point-of-sale location licensed
by the Department of Banking and Insurance� pursuant to P.L.1993, c.383
(C.17:15A-30 et seq.), the State shall pay the licensee the difference between
the contracted base transaction fee and $1.00.� The provisions of this
paragraph shall expire two years after the effective date of the single
Statewide electronic benefits distribution contract that is let pursuant to
P.L.1997, c.37 (C.44:10-71 et al.).

���� d.��� A retail establishment
currently authorized to participate in the federal food stamp program, or the
New Jersey Supplementary Food Stamp Program established pursuant to P.L.1998,
c.32 (C.44:10-79 et al.), shall be afforded the opportunity to participate in
the electronic benefit distribution system.

���� e.���� The department shall
cycle the issuance of cash assistance and food stamp benefits over multiple
dates throughout the month in a manner that best serves cash assistance and
food stamp recipients within the framework of the electronic benefit
distribution system in each county.

���� f.���� The commissioner shall
have the discretion to determine the need for appropriate benefit card security
measures, as well as whatever personal identification technology is included on
the benefit card, to access cash assistance, food stamp or other benefits under
the electronic benefit distribution system.

���� g.��� A county agency shall
issue a photo-identification card to each adult recipient as a condition of
receiving benefits until implementation of the electronic benefit distribution
system in that county agency.� Once a county begins to implement the electronic
benefit distribution system, the county agency shall no longer be required to
issue a photo-identification card to each adult recipient but may continue the
issuance of photo-identification cards separate from the benefit cards.

���� h.���
[
Notwithstanding
any provisions of law to the contrary, until such time as the electronic
benefit distribution system is implemented Statewide, contracts for the
provision of food stamp coupons are not subject to the requirements of the
"Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.).
]

(Deleted
by amendment, P.L.� , c.� (pending before the Legislature as this bill)

����
i.���� The commissioner
shall work with the New Jersey Office of Information Technology and
representatives of automatic teller machine suppliers to create and implement a
program or method to prevent: �access to cash benefits through the electronic
benefit distribution system at automatic teller machines located on the
premises of a casino, adult entertainment venue, adult bookstore, or liquor
store; and the use of a benefit card to make a point-of-sale purchase at those
premises or to pay for a cruise at a travel agency or other venue.

(cf: P.L.1998, c.32, s.10)

���� 2.��� The Commissioner of
Human Services, as soon as is practicable after the date of enactment of this
act, shall apply for any federal waivers that the commissioner determines are
required to implement the provisions of this act.

���� 3.��� The Commissioner of
Human Services, pursuant to the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to
effectuate the purposes of this act.

���� 4.��� This act shall take
effect on the first day of the seventh month next following the date of
enactment, except that section 2 of this act shall take effect immediately, but
the Commissioner of Human Services may take such anticipatory administrative
action in advance thereof as shall be necessary for the implementation of this
act.

STATEMENT

���� This bill is intended to
restrict the use of electronic benefit cards by cash assistance recipients in
those venues that do not conduce to the appropriate use of taxpayer dollars.

���� The bill directs the Commissioner
of Human Services to work with the New Jersey Office of Information Technology
and representatives of automatic teller machine suppliers to create and
implement a program or method to prevent: �access to cash benefits through the
electronic benefit distribution system at automatic teller machines located on
the premises of a casino, adult entertainment venue, adult bookstore, or liquor
store; and the use of a benefit card to make a point-of-sale purchase at those
premises or to pay for a cruise at a travel agency or other venue.

���� The commissioner, as soon as is
practicable after the date of enactment of this bill, is to apply for any
federal waivers that the commissioner determines are required to implement the
provisions of the bill.

���� The bill takes take effect on
the first day of the seventh month following the date of enactment, except for
the provision that requires the commissioner to seek any necessary federal
waivers, but the commissioner is authorized to take administrative action in
advance as necessary to implement the bill.

���� The restrictions on access to
electronic benefit cards by cash assistance recipients in certain venues as
provided in this bill include certain restrictions that are currently embodied
in federal law, pursuant to sections 4001 through 4005 of Pub.L.112-96,
designated as the �Welfare Integrity and Data Improvement Act,� enacted on February 22, 2012.� Each state must comply with these federal requirements by 2014 or face
a loss of federal funds for its TANF program (which is the Work First New
Jersey program in this State).