Establishes Stolen SNAP Benefits Replacement Fund in Department of Treasury, requires DHS to replace stolen SNAP benefits from fund, and appropriates $20 million to AOC.

A4943

ASSEMBLY, No. 4943

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� JERRY WALKER

District 31 (Hudson)

Co-Sponsored by:

Assemblyman Kearney

SYNOPSIS

���� Establishes Stolen SNAP Benefits Replacement Fund in
Department of Treasury, requires DHS to replace stolen SNAP benefits from fund,
and appropriates $20 million to AOC.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning SNAP benefits theft and making an
appropriation.

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

���� 1.��� As used in this act:

���� �Card Cloning� means making an
unauthorized copy of an electronic benefits transfer card.

���� �Card Skimming� means the
illegal installation of devices on point-of-sale terminals to capture a
cardholder�s personal identification number and other data stored on the
magnetic strip of the electronic benefits transfer card.�����������

���� �Electronic Benefits Transfer
Card� means the payment card issued to SNAP participants by the Department of
Human Services in connection with the electronic benefit distribution system
implemented pursuant to section 5 of P.L.1997, c.37 (C.44:10-75), on which SNAP
benefits are deposited and through which SNAP participants can purchase food.

���� �SNAP� means the Supplemental
Nutrition Assistance Program established pursuant to the federal "Food and
Nutrition Act of 2008," Pub.L.110-246 (7 U.S.C. s.2011 et seq.).

���� 2.��� a.� The Commissioner of
Human Services shall establish a process by which SNAP benefits determined to
have been stolen through card skimming, card cloning, or similar fraudulent
methods, may be replaced using resources available in the Stolen SNAP Benefits
Replacement Fund, established pursuant to section

4 of this act.� SNAP
participants may be eligible to have stolen SNAP benefits replaced if the SNAP
benefits theft is determined to have occurred between the expiration of the
federal program to replace stolen SNAP benefits using federal funds, pursuant
to the federal �Consolidated Appropriations Act, 2023,� Pub.L. 117-328 and the
�Continuing Appropriations and Extensions Act, 2025,� Pub.L118-83, and the date
on which the SNAP participant receives a chip technology electronic benefits
transfer card from the Department of Human Services.

���� b.� The commissioner shall
establish a process by which the department may determine that an individual�s
SNAP benefits have been stolen, which process shall be subject to the same
conditions that apply to the replacement of SNAP benefits stolen via card
skimming, card cloning, and similar fraudulent methods, with federal funds,
pursuant to the federal �Consolidated Appropriations Act, 2023,� Pub.L.
117-328; and the Continuing Appropriations and Extensions Act, 2025,�
Pub.L118-83.� The department shall make this information publicly available on
the department�s Internet website and also shall distribute this information,
in writing, at the time of enrollment and recertification in the SNAP and with
the issuance of a SNAP participant�s electronic benefits transfer card.

���� c.� The commissioner shall
provide for the replacement of SNAP benefits from the Stolen SNAP Benefits
Replacement Fund, as provided pursuant to subsection b. of section 4 of this
act, subject to the availability of fund balances.

���� 3.��� a.� The Attorney
General, in consultation with the Commissioner of Human Services, shall assess
a supplemental fee, in an amount equal to five percent of the total amount of
penalties and restitution paid by a defendant in a civil or criminal settlement
agreement entered into by the Attorney General pursuant to Title 2A or Title 2C
of the New Jersey Statutes.� The amount of the supplemental fee collected
pursuant to this section shall be collected by a court of competent

jurisdiction
and forwarded to the Department of the Treasury for deposit into the Stolen
SNAP Benefits Replacement Fund, established pursuant to subsection a. of
section 4 of this act.�

���� b.� The supplemental fee
established under subsection a. of this section shall be temporary in nature,
and the Attorney General shall cease assessing the fee upon certification by the
Commissioner of Human Services that the State has transitioned to chip
technology electronic benefits transfer cards for all current and future
participants in the SNAP.

���� 4.��� a.� There is hereby
established the Stolen SNAP Benefits Replacement Fund, a nonlapsing revolving
fund, which shall be the repository for monies collected pursuant to subsection
a. of section 3 of this act.� The State Treasurer shall be the custodian of the
fund and all disbursements from the fund shall be made by the State Treasurer
upon requests made by the Commissioner of Human Services.� The monies in the
fund shall be invested and reinvested by the Director of the Division of
Investment in the Department of the Treasury in the same manner as other trust
funds in the custody of the State Treasurer, in the manner provided by law.�
Interest received on the monies in the fund shall be credited to the fund.

���� b.��� Monies deposited into
the fund pursuant to subsection a. of this section shall be used to replace
SNAP benefits, stolen via electronic benefits transfer card skimming, card
cloning, and similar fraudulent methods, upon the request of the Commissioner
of Human Services.� Stolen SNAP benefits shall be restored solely via the SNAP
participant�s electronic benefit transfer card.�

���� c.���� The fund shall be
temporary in nature, and shall be dissolved by the State Treasurer no less than
three months following the date on which the Commissioner of Human Services certifies
to the Governor, the Legislature pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), and the State Treasurer that the State has transitioned to chip
technology electronic benefits transfer cards for all current and future
participants in the SNAP.� Upon the dissolution of the fund, the State
Treasurer shall deposit any remaining fund balances into the General Fund.�

���� 5.��� The Commissioner of
Human Services shall report to the Governor and the Legislature, pursuant to
section 2 of P.L.1991, c.164 (C.52:14-19.1), no more than three months
following the dissolution of the Stolen SNAP Benefits Replacement Fund, as
provided in subsection c. of section 4 of this act, on the aggregate amount of
stolen SNAP benefits restored and the number of SNAP participants whose stolen
benefits were restored pursuant to subsection b. of section 4 of this act, and
the amount of any fund balances returned to the General Fund pursuant to
subsection c. of section 4 of this act.

���� 6.��� There is appropriated
from the Stolen SNAP Benefits Replacement Fund, established pursuant to
subsection a. of section 4 of this act, to the Administrative Office of the
Courts $20,000,000 to design, operate, and maintain a standardized computer
system necessary for the collection of the supplemental fee assessed pursuant
to subsection a. of section 3 of this act, and for any administrative costs
incurred by the courts pursuant to this act.�

���� 7.��� a. The Commissioner of
Human Services, the State Treasurer, and the Attorney General shall, in
accordance with the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.). adopt rules and regulations as necessary to implement
this act.

���� b.� The Supreme Court may
issue Rules of the Court to implement the provisions of subsection a. of
section 3 and section 6 of this act.

���� 8. This act shall take effect
immediately and shall expire upon submission of the report required pursuant to
section 5 of this act.

STATEMENT

���� The bill directs the
Commissioner of Human Services (the commissioner) to establish a process for
SNAP participants to apply to the Department of Human Services (the department)
for replacement of SNAP benefits stolen by electronic benefits transfer (EBT)
card cloning, skimming, or other fraudulent means. �SNAP participants may be
eligible to have stolen SNAP benefits replaced if the benefits theft occurred
between December 20, 2024, the expiration date for the federal program that replaced
stolen SNAP benefits using federal funds, and the date on which the SNAP
participant receives a chip technology electronic benefits transfer card from
the department. Under the bill, �card cloning� means making an unauthorized
copy of an EBT card, and �card skimming� means the illegal installation of
devices on point-of-sale terminals to capture a cardholder�s personal
identification number and other data stored on the magnetic strip of the EBT card.

���� The commissioner will establish
a process for the department to determine that an individual�s SNAP benefits
have been stolen; this process will be subject to the same conditions that applied
to the replacement of SNAP benefits stolen via card skimming and cloning with
federal funds, as provided under federal law. �The department will post the information
on its website and distribute the information, in writing, at the time of
enrollment and recertification in the SNAP and with the issuance of a SNAP EBT card.

���� The bill establishes the Stolen
SNAP Benefits Replacement Fund (the fund), from which the department will
replace stolen SNAP benefits.� The State Treasurer will administer the fund and
will issue repayment of stolen SNAP benefits via the SNAP participant�s EBT
card, upon the request of the commissioner.�

���� In response to an OLS FY 2026
Discussion Point question, the department stated that the State�s EBT card
vendor will issue chip technology EBT cards to SNAP participants in late 2025
or early 2026.� Given this timeline, the bill specifies that the fund will be
dissolved no less than three months after the commissioner certifies to the
Governor, the Legislature, and the State Treasurer that the State has transitioned
to chip technology EBT cards for all current and future SNAP participants.� �

���� The State Treasurer will
assess a supplemental fee, in an amount equal to five percent of the penalties
paid by a defendant in a civil or criminal settlement agreement with the
Attorney General, in order to seed the fund.� The supplemental fee will be collected
by a court of competent

jurisdiction and forwarded to the Department of
the Treasury for deposit into the fund.� The Attorney General will stop assessing
the fee upon the commissioner�s certification that the State has transitioned
to chip technology EBT cards for all current and future SNAP participants.

���� Within three months of the
fund�s dissolution, the commissioner will report to the Governor and the
Legislature on the total amount of stolen SNAP benefits restored, the number of
SNAP participants whose benefits were restored, and the amount of any fund
balances returned to the General Fund.

���� The bill appropriates $20
million from the fund to the Administrative Office of the Courts to design,
operate, and maintain a standardized computer system to collect the
supplemental fee and for the courts� related administrative costs.

���� The bill�s provisions will take
effect immediately and will expire upon submission of the commissioner�s report
to the Governor and the Legislature.