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SB 232

Electronic Benefits Transfer Cards - Restoration and Receipt of Benefits and Use at Automated Teller Machines

2025 Regular Session

The bill would restore and reimburse SNAP/EBT benefits lost to theft, strengthen fraud protections, enable two‑way fraud alerts, and require ATM improvements.

Withdrawn by Sponsor
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WeVote Research Nonpartisan
Bill Summary · SB 232

SB 232 — Electronic Benefits Transfer Cards: Restoration, Fraud Protections, and ATM Functionality

Status: Withdrawn by sponsor (withdrawn 2025-02-03)
Introduced: January 8, 2025 (pre-filed Oct 3, 2024) — Departmental bill (Dept. of Human Services)

Main purpose

To require the Maryland Department of Human Services (DHS) and related payment vendors and financial institutions to (1) restore and reimburse SNAP/EBT beneficiaries for benefits lost to theft or fraudulent use of EBT cards, (2) strengthen technical and contractual protections against EBT fraud (including vendor insurance and identity protections), (3) enable DHS–household two‑way fraud alerts (text messaging), and (4) require certain ATM functionality to reduce fraud. The bill also directed DHS to study and report EBT fraud metrics annually.

Key provisions and requirements

  • Definitions: clarifies “personal identifying information,” “skimming practices,” and defines “theft” to include physical theft, identity fraud, and skimming.
  • Automatic restoration: DHS must restore benefits to a household if its investigation shows benefits were lost due to theft; restoration is to occur without requiring further action from the household (subject to budget/appropriation limits in the bill).
  • Timeframes and notices:
    • DHS must notify the household within 10 days of receiving report of lost benefits regarding restoration decision, restored amount, and hearing rights.
    • Households may request an administrative hearing within 90 days; DHS must restore benefits while hearings are pending.
    • If a hearing is decided against the household, DHS may recoup improperly restored amounts at a repayment rate capped at the lesser of $10 or 5% of the household’s monthly allotment.
  • Retroactive reimbursement: DHS was required to restore/reimburse benefits for thefts that occurred between Jan 1, 2021 and July 1, 2025, provided DHS confirms the theft (the bill also referenced claimant deadlines for retroactive claims).
  • Vendor procurement standards: procurement should favor vendors that (a) carry insurance to reimburse beneficiaries for identity fraud/theft and (b) provide identity-access protections (e.g., multifactor authentication). DHS must coordinate with vendors to adopt enhanced anti‑fraud technology.
  • Two‑way fraud alerts: authorizes DHS to communicate with households via text messaging about suspected fraudulent EBT use and allows households to respond.
  • ATM functionality: the bill would have required ATM operators, by a stated deadline, to ensure ATMs include specific functionality related to EBT cards (bill text provided limited detail).
  • Annual reporting: DHS must report annually (by Dec 1) to the General Assembly on EBT fraud statistics (counts, dollar amounts, time to restoration, demographics, hearings, etc.).
  • Appropriation conditionality: many restoration/reimbursement duties are explicitly subject to State budget limitations and specific appropriations for EBT theft restoration.

Who would be affected

  • EBT/SNAP beneficiaries (households) — especially victims of card theft or skimming.
  • Maryland Department of Human Services (administration, investigations, hearings, reporting).
  • EBT vendors and contractors (procurement requirements, technology and insurance expectations).
  • ATM operators and financial institutions (required technical functionality).
  • State budget — restoration/reimbursement obligations were subject to appropriations.

Procedural / timeline notes

  • The bill included specific operational timeframes (10‑day notice, 90‑day hearing window) and a retroactive window (thefts from Jan 1, 2021 through July 1, 2025).
  • DHS annual reporting due Dec 1.
  • The bill was withdrawn by the sponsor on Feb 3, 2025; it did not advance to enactment.

Notes: The publicly available bill text for certain financial/ATM provisions was limited in the provided materials. The bill tied benefit restoration authority to available appropriations; actual restoration payments would have depended on subsequent budget action.

Compiled from official sources — confirm details with the bill’s official record.

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