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hb163_04_PH
As Passed by the House
136th
General Assembly
Regular
Session
Am. H. B. No. 163
2025-2026
Representatives Rader, Deeter
Cosponsors: Representatives Fischer,
Williams, Lett, Glassburn, McNally, Brennan, Synenberg, White, E.,
Sigrist, Somani, Brewer, Russo, Miller, J., Thomas, D., Robinson,
Grim, Brent, Troy, Cockley, Piccolantonio, Miller, K., Thomas, C.,
Denson, Upchurch, Abdullahi, Schmidt, Willis, Baker, Bird, Brownlee,
Claggett, Click, Daniels, Demetriou, Ghanbari, Hall, D., Hiner,
Isaacsohn, Jarrells, John, King, Klopfenstein, Lawson-Rowe, Manning,
Mathews, A., Mathews, T., McClain, Miller, M., Mohamed, Newman,
Odioso, Oelslager, Peterson, Plummer, Richardson, Ritter, Robb
Blasdel, Rogers, Salvo, Sims, Swearingen, Tims, White, A., Young
To
amend sections 5101.54 and 5101.542 and to enact section 5101.5411 of
the Revised Code
to
require Ohio's SNAP program to begin using chip-enabled EBT cards, to
name this act the Enhanced Cybersecurity for SNAP Act of 2026, and to
make an appropriation.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
sections 5101.54 and 5101.542 be amended and section
5101.5411
of
the Revised Code be enacted to read as follows:
Sec.
5101.54.
(A)
The director of job and family services shall administer the
supplemental nutrition assistance program in accordance with the Food
and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.). The department of
job and family services may:
(1)
Prepare and submit to the secretary of the United States department
of agriculture a plan for the administration of the supplemental
nutrition assistance program;
(2)
Prescribe forms for applications, certificates, reports, records, and
accounts of county departments of job and family services, and other
matters;
(3)
Require such reports and information from each county department of
job and family services as may be necessary and advisable;
(4)
Administer and expend any sums appropriated by the general assembly
for the purposes of the supplemental nutrition assistance program and
all sums paid to the state by the United States as authorized by the
Food and Nutrition Act of 2008;
(5)
Conduct such investigations as are necessary;
(6)
Enter into interagency agreements and cooperate with investigations
conducted by the department of public safety, including providing
information for investigative purposes, exchanging property and
records, passing through federal financial participation, modifying
any agreements with the United States department of agriculture,
providing for the supply, security, and accounting of supplemental
nutrition assistance program benefits for investigative purposes, and
meeting any other requirements necessary for the detection and
deterrence of illegal activities in the supplemental nutrition
assistance program;
(7)
Adopt rules in accordance with Chapter 119. of the Revised Code
governing employment and training requirements of recipients of
supplemental nutrition assistance program benefits, including rules
specifying which recipients are subject to the requirements and
establishing sanctions for failure to satisfy the requirements. The
rules shall be consistent with 7 U.S.C. 2015, including its work and
employment and training requirements, and, to the extent practicable,
shall provide for the recipients to participate in work activities,
developmental activities, and alternative work activities described
in sections 5107.40 to 5107.69 of the Revised Code that are
comparable to programs authorized by 7 U.S.C. 2015(d)(4). The rules
may reference rules adopted under section 5107.05 of the Revised Code
governing work activities, developmental activities, and alternative
work activities described in sections 5107.40 to 5107.69 of the
Revised Code.
(8)
Adopt rules in accordance with section 111.15 of the Revised Code
that are consistent with the Food and Nutrition Act of 2008, the
regulations adopted thereunder, and this section governing the
following:
(a)
Eligibility requirements for the supplemental nutrition assistance
program;
(b)
Sanctions for failure to comply with eligibility requirements;
(c)
Allotment of supplemental nutrition assistance program benefits;
(d)
To the extent permitted under federal statutes and regulations, a
system under which some or all recipients of supplemental nutrition
assistance program benefits subject to employment and training
requirements established by rules adopted under division (A)(7) of
this section receive the benefits after satisfying the requirements;
(e)
Administration of the program by county departments of job and family
services;
(f)
Other requirements necessary for the efficient administration of the
program.
(9)
Submit a plan to the United States secretary of agriculture for the
department of job and family services to operate a simplified
supplemental nutrition assistance program pursuant to 7 U.S.C. 2035
under which requirements governing the Ohio works first program
established under Chapter 5107. of the Revised Code also govern the
supplemental nutrition assistance program in the case of households
receiving supplemental nutrition assistance program benefits and
participating in Ohio works first.
(10)
Collect information on suspicious electronic benefit transfer card
transactions and provide the information to each impacted county
department for analysis and investigation. Such information shall
include transactions of even dollar amounts, full monthly benefit
amounts, multiple same-day transactions, out-of-state transactions,
and any other suspicious trends
.
(11)
Not later than one year after the effective date of this amendment,
adopt rules in accordance with Chapter 119. of the Revised Code
concerning cybersecurity and digital service related to electronic
benefit transfer cards and mobile payments under the supplemental
nutrition assistance program. At a minimum, rules adopted under
division (A)(11) of this section shall ensure that cybersecurity
measures for electronic benefit transfer cards and mobile payments
meet security safeguards that are used in the private sector and
required by federal agencies for credit, debit, and other payment
cards and mobile payments. The director shall review rules adopted
pursuant to division (A)(11) of this section every five years and
update them as necessary
.
(B)
A household that is entitled to receive supplemental nutrition
assistance program benefits and that is determined to be in immediate
need of nutrition assistance shall receive certification of
eligibility for program benefits, pending verification, within
twenty-four hours, or, if mitigating circumstances occur, within
seventy-two hours, after application, if:
(1)
The results of the application interview indicate that the household
will be eligible upon full verification;
(2)
Information sufficient to confirm the statements in the application
has been obtained from at least one additional source, not a member
of the applicant's household. Such information shall be recorded in
the case file and shall include:
(a)
The name of the person who provided the name of the information
source;
(b)
The name and address of the information source;
(c)
A summary of the information obtained.
The
period of temporary eligibility shall not exceed one month from the
date of certification of temporary eligibility. If eligibility is
established by full verification, benefits shall continue without
interruption as long as eligibility continues.
There
is no limit on the number of times a household may receive expedited
certification of eligibility under this division as long as before
each expedited certification all of the information identified in
division (F)(1) of this section was verified for the household at the
last expedited certification or the household's eligibility was
certified under normal processing standards since the last expedited
certification.
At
the time of application, the county department of job and family
services shall provide to a household described in this division a
list of community assistance programs that provide emergency food.
(C)
Before certifying supplemental nutrition assistance program benefits,
the department shall verify the eligibility of each household in
accordance with division (F) of this section. All applications shall
be approved or denied through full verification within thirty days
from receipt of the application by the county department of job and
family services.
(D)
Nothing in this section shall be construed to prohibit the
certification of households that qualify under federal regulations to
receive supplemental nutrition assistance program benefits without
charge under the Food and Nutrition Act of 2008.
(E)
Any person who applies for the supplemental nutrition assistance
program shall receive a voter registration application under section
3503.10 of the Revised Code.
(F)(1)
In order to verify household eligibility as required by federal
regulations and this section, the department shall, except as
provided in division (F)(2) of this section, verify at least the
following information before certifying supplemental nutrition
assistance program benefits:
(a)
Household composition;
(b)
Identity;
(c)
Citizenship and alien eligibility status;
(d)
Social security numbers;
(e)
State residency status;
(f)
Disability status;
(g)
Gross nonexempt income;
(h)
Utility expenses;
(i)
Medical expenses;
(j)
Enrollment status in other state-administered public assistance
programs within and outside this state;
(k)
Any available information related to potential identity fraud or
identity theft.
(2)
A household's eligibility for supplemental nutrition assistance
program benefits may be certified before all of the information
identified in division (F)(1) of this section is verified if the
household's certification is being expedited under division (B) of
this section.
(3)
On at least a quarterly basis and consistent with federal
regulations, as information is received by a county department of job
and family services, the county department shall review and act on
information identified in division (F)(1) of this section that
indicates a change in circumstances that may affect eligibility, to
the extent such information is available to the department.
(4)
Consistent with federal regulations, as part of the application for
public assistance and before certifying benefits under the
supplemental nutrition assistance program, the department shall
require an applicant, or a person acting on the applicant's behalf,
to verify the identity of the members of the applicant household.
(5)(a)
The department shall sign a memorandum of understanding with any
department, agency, or division as needed to obtain the information
identified in division (F)(1) of this section.
(b)
The department may contract with one or more independent vendors to
provide the information identified in division (F)(1) of this
section.
(c)
Nothing in this section prevents the department or a county
department of job and family services from receiving or reviewing
additional information related to eligibility not identified in this
section or from contracting with one or more independent vendors to
provide additional information not identified in this section.
(6)
The department shall explore joining a multistate cooperative, such
as the national accuracy clearinghouse, to identify individuals
enrolled in public assistance programs outside of this state.
(G)
The department shall use the same criteria to verify gross nonexempt
income from self-employment pursuant to division (F)(1) of this
section as were used during initial certification when:
(1)
Reviewing information pursuant to division (F)(3) of this section
regarding households with income from self-employment;
(2)
Recertifying households with income from self- employment.
(H)
If the department receives information concerning a household
certified to receive supplemental nutrition assistance program
benefits that indicates a change in circumstances that may affect
eligibility, the department shall take action in accordance with
federal regulations, including verifying unclear information,
providing prior written notice of a change or adverse action, and
notifying the household of the right to a fair hearing.
(I)
In the case of suspected fraud, the department shall refer the case
for an administrative disqualification hearing or to the county
prosecutor of the county in which the applicant or recipient resides
for investigation, or both.
(J)
The department shall adopt rules in accordance with Chapter 119. of
the Revised Code to implement divisions (F) to (I) of this section.
(K)
Except as prohibited by federal law, the department may assign any of
the duties described in this section to any county department of job
and family services.
Sec.
5101.542.
(A)
Immediately following a county department of job and family services'
certification that a household determined under division (B) of
section 5101.54 of the Revised Code to be in immediate need of
nutrition assistance is eligible for the supplemental nutrition
assistance program, the department of job and family services shall
provide for the household to be sent by regular United States mail an
electronic benefit transfer card containing the amount of benefits
the household is eligible to receive under the program. The card
shall be sent to the member of the household in whose name
application for the supplemental nutrition assistance program was
made or that member's authorized representative.
(B)
Except as provided in division (C) of this section, the department
shall replace any electronic benefit transfer card that is reported
by a household to be lost, stolen, or damaged, within two business
days of receiving notice of the card's condition, in accordance with
7 C.F.R. 274.6(b).
(C)(1)
The department shall implement the option described in 7 C.F.R.
274.6(b)(5) and shall withhold a replacement electronic benefit
transfer card from a household that requests four or more replacement
cards during a twelve-month period until the requirements specified
in 7 C.F.R. 274.6(b)(5) have been satisfied.
(2)
The department shall not withhold a replacement card as described
under division (C)(1) of this section if the individual requesting
the replacement has a disability directly related to the loss of the
card.
(D)
On
the
effective date of this amendment, the department shall
begin
work to
ensure
that all new electronic benefit transfer cards are chip-enabled cards
that meet the requirements specified in technical guidance prepared
by the United States department of agriculture.
Once
the department is capable of issuing cards that meet those
requirements, it
shall
replace all existing electronic benefit transfer cards with
chip-enabled cards under the department's ordinary time frame for
replacing electronic benefit transfer cards.
Sec.
5101.5411.
The
director of job and family services shall ensure that the department
of job and family services' web site contains a mechanism that allows
supplemental nutrition assistance program benefit recipients to
report alleged fraudulent transactions to the department.
Section
2.
That
existing sections 5101.54 and 5101.542 of the Revised Code are hereby
repealed.
Section
3.
This
act shall be known as the Enhanced Cybersecurity for SNAP Act of
2026.
Section
4.
All
items in this act are hereby appropriated as designated out of any
moneys in the state treasury to the credit of the designated fund.
For all operating appropriations made in this act, those in the first
column are for fiscal year 2026 and those in the second column are
for fiscal year 2027. The operating appropriations made in this act
are in addition to any other operating appropriations made for these
fiscal years.
Section
5.
1
2
3
4
5
A
JFS
DEPARTMENT OF JOB AND FAMILY SERVICES
B
General
Revenue Fund
C
GRF
600569
SNAP
EBT Modernization
$0
$2,250,000
D
TOTAL
GRF General Revenue Fund
$0
$2,250,000
E
Federal
Fund Group
F
3840
600610
Food
Assistance Programs
$0
$750,000
G
TOTAL
FED Federal Fund Group
$0
$750,000
H
TOTAL
ALL BUDGET FUND GROUPS
$0
$3,000,000
SNAP
EBT MODERNIZATION
The
foregoing appropriation items 600569, SNAP EBT Modernization, and
600610, Food Assistance Programs, shall be used to support the
transition to chip-enabled Supplemental Nutrition Assistance Program
electronic benefit transfer cards.
Section
6.
Within
the limits set forth in this act, the Director of Budget and
Management shall establish accounts indicating the source and amount
of funds for each appropriation made in this act, and shall determine
the manner in which appropriation accounts shall be maintained.
Expenditures from operating appropriations contained in this act
shall be accounted for as though made in, and are subject to all
applicable provisions of, H.B. 96 of the 136th General Assembly.