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As Introduced
136th
General Assembly
Regular
Session
H. B. No. 174
2025-2026
Representatives Rader, Tims
Cosponsors: Representatives White,
E., Brent, McNally, Sigrist, Denson, Synenberg, Lett, Upchurch,
Abdullahi, Brennan, Mohamed, Brownlee, Thomas, C.
To
enact section 5101.548 of the Revised Code
to
establish a program to refund SNAP recipients who have been victims
of electronic theft or fraud, to name this act the No Hungry Families
Act, and to make an appropriation.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section 5101.548 of the Revised Code be enacted to read as follows:
Sec.
5101.548.
(A)
As used in this section:
(1)
"Card cloning" means a form of theft that occurs when an
unauthorized person uses data captured by skimming or other means to
create fake electronic benefit transfer cards used to steal
supplemental nutrition assistance program benefits.
(2)
"Card skimming" means a form of theft that occurs when an
unauthorized device is installed on a retailer's card reader
machines, known as point-of-sale terminals, to capture card data or
record supplemental nutrition assistance program households' personal
identification numbers.
(3)
"Electronic benefit theft" means theft of supplemental
nutrition assistance program benefits by card skimming, card cloning,
and other similar fraudulent methods such as scamming through
fraudulent phone calls or text messages that mimic official
department of job and family services or county department of job and
family services messaging and phishing emails.
(4)
"Phishing" means an attempt to deceive people into
revealing sensitive information such as passwords, banking, and
credit card details. Some phishing emails also contain malicious or
unwanted software used to track recipients' online activities, steal
their personal data, or slow their computers.
(5)
"Scamming" means a form of theft in which a person is
falsely deceived into giving benefits, electronic benefit transfer
card information, or both to an unauthorized person.
(B)(1)
Not later than sixty days after the effective date of this section,
the director of job and family services shall establish a program to
replace supplemental nutrition assistance program benefits for
households that have had benefits stolen on or after December 21,
2024, as a result of electronic benefit theft. Benefits stolen before
December 21, 2024, are ineligible for replacement under the program.
(2)
The director shall prescribe a form for households to apply for
replacement benefits. The form shall include a place for a
recipient's signature, attesting that the household did not have
knowledge of any transaction for which the household is applying for
replacement benefits and did not authorize any such transaction.
(C)
Supplemental nutrition program assistance benefits eligible for
replacement are limited to both of the following:
(1)
Regular supplemental nutrition assistance program benefits, including
initial prorations;
(2)
Disaster supplemental nutrition assistance program benefits.
(D)(1)
The amount replaced under the program established under this section
shall not exceed the lesser of the following:
(a)
The amount of benefits stolen from the household as a result of
electronic benefit theft;
(b)
The amount that equals two months of the household's monthly
allotment, as of the month in which the benefits were stolen as a
result of electronic benefit theft.
(2)
If an incident of electronic benefit theft occurs over the course of
several transactions or days, calculations for the amount of
replacement benefits for purposes of division (D)(1)(b) of this
section shall be based on the date of the first occurrence of the
electronic benefit theft.
(3)
No household shall receive replacement benefits under this section
more than twice in a fiscal year.
(E)(1)
To receive replacement benefits, a household shall submit to the
county department of job and family services a completed application
form prescribed by the department of job and family services as
follows:
(a)
For supplemental nutrition assistance program benefits stolen on or
after the effective date of this section, within ninety calendar days
of the date the benefits were stolen or within ninety days of
receiving a letter from the county department indicating the
household may have been a victim of electronic benefit theft,
whichever is later;
(b)
For supplemental nutrition assistance program benefits stolen between
December 21, 2024, and the effective date of this section, ninety
calendar days from the effective date of this section.
(2)
If a household submits an incomplete form or does not provide all
required information as determined by the county department, the
county department shall return the form to the household indicating
what information is missing and shall allow the household fifteen
calendar days to submit an updated form that includes the requested
information.
(F)(1)
Within thirty calendar days of receipt of a request of replacement
benefits, the county department shall review the request and
determine if the household is eligible for replacement benefits. If
eligible, the department of job and family services shall replace the
amount of stolen benefits permitted under division (D)(1) of this
section.
(2)
On receipt of a request for replacement of stolen benefits, the
department shall send the household a new electronic benefit transfer
card.
(G)
In making its determination under division (F) of this section, a
county department of job and family services shall conclude that
benefits were stolen as a result of electronic benefit theft if there
is evidence of two or more of the following:
(1)
Transactions that occurred at a supplemental nutrition assistance
program-authorized retailer known to the department of job and family
services as previously processing fraudulent transactions;
(2)
Even dollar transactions, high dollar transactions, or multiple
transactions over a short period of time;
(3)
Online transactions in which food was delivered to a location other
than the household's address;
(4)
Depleting the electronic benefit transfer card balance entirely or
leaving a small amount, such as less than five dollars;
(5)
Transactions outside of the household's normal shopping habits over
the previous twelve months;
(6)
Other evidence that supports the signed statement of the recipient
attesting that the household had no knowledge of any transaction for
which the household is applying for replacement benefits and did not
authorize any such transaction.
(H)
The county department of job and family services may deny an
application for replacement benefits for one or more of the following
reasons:
(1)
The household fails to submit the application within the time frame
described in division (E)(1) of this section.
(2)
The application was submitted timely but was incomplete, and the
household did not return the completed application within the time
frame described in division (E)(2) of this section.
(3)
The electronic benefit theft occurred before December 21, 2024.
(4)
The household has already had stolen benefits replaced twice during
the same fiscal year.
(5)
Two or more validation claim criteria in division (G) of this section
have not been established, as determined by the county department.
(6)
The household reported a lost or stolen electronic benefit transfer
card associated with unauthorized transactions that were not caused
by electronic benefit theft.
(7)
The household gave the electronic benefit transfer card and personal
identification number to another person, and that person subsequently
stole or misused the household's benefits.
(I)
A household may request an administrative hearing to contest the
denial of replacement benefits or the amount of replacement benefits
approved. The household shall request the hearing within ninety
calendar days of receiving the decision of the county department of
job and family services regarding its application for replacement
benefits. The department of job and family services shall not issue
replacement benefits to the household while the appeal of the denial
or amount is pending.
(J)
The director of job and family services shall adopt rules to
implement this section in accordance with Chapter 119. of the Revised
Code.
Section
2.
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
3.
1
2
3
4
5
A
JFS
DEPARTMENT OF JOB AND FAMILY SERVICES
B
General
Revenue Fund
C
GRF
600568
SNAP
Replacement Benefits
$17,000,000
$0
D
TOTAL
GRF General Revenue Fund
$17,000,000
$0
E
TOTAL
ALL BUDGET FUND GROUPS
$17,000,000
$0
SNAP
REPLACEMENT BENEFITS
The
foregoing appropriation item 600568, SNAP Replacement Benefits, shall
be used to replace stolen Supplemental Nutrition Assistance Program
benefits in accordance with section 5101.548 of the Revised Code.
On
July 1, 2026, or as soon as possible thereafter, the Director of Job
and Family Services may certify to the Director of Budget and
Management an amount up to the unexpended, unencumbered balance of
the foregoing appropriation item 600568, SNAP Replacement Benefits,
at the end of fiscal year 2026 to be reappropriated to fiscal year
2027. The amount certified is hereby reappropriated to the same
appropriation item for fiscal year 2027.
Section
4.
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, the main operating appropriations act of
the 136th General Assembly.
Section
5.
This
act shall be known as the No Hungry Families Act.