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S 465

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.

2026-2027 Regular Session Introduced by Brian Stack

Establishes a temporary Stolen SNAP Benefits Replacement Fund to replace stolen SNAP benefits via EBT, funded by a 5% court fee, ending after chip-enabled EBT is fully deployed.

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee
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WeVote Research Nonpartisan
Bill Summary · S 465

Summary of Bill: S 465 (New Jersey, 222nd Legislature)

Purpose and Intent

  • Establishes a Stolen SNAP Benefits Replacement Fund within the Department of the Treasury to replace SNAP benefits stolen from EBT cards due to card skimming, cloning, or similar fraud.
  • Creates a process for replacing stolen SNAP benefits using funds from the new Stolen SNAP Benefits Replacement Fund, supplementing federal program gaps and extending protection until chip-enabled EBT cards are fully deployed.
  • Allocates $20 million from the fund to the Administrative Office of the Courts to support administration of the supplemental fee collection and related court costs.

Key Provisions and Changes

  1. Definitions (Section 1)

    • Clarifies terms: Card Cloning, Card Skimming, Electronic Benefits Transfer Card (EBT), and SNAP.

  2. Replacement Process (Section 2)

    • The Commissioner of Human Services must establish a process to replace stolen SNAP benefits using the Stolen SNAP Benefits Replacement Fund.
    • Eligibility window: theft must have occurred between December 20, 2024 (federal funding window for replacement) and the date the participant receives a chip-enabled EBT card.
    • Public disclosure: process details publicly available on the DHS website and provided in writing at enrollment/recertification and upon issuance of an EBT card.
    • Replacements are funded solely from the Stolen SNAP Benefits Replacement Fund, subject to available balances.

  3. Supplemental Fee (Section 3)

    • The Attorney General, with DHS, will assess a temporary supplemental court fee equal to 5% of the total penalties and restitution in civil/criminal settlements.
    • Collected fees go to the Stolen SNAP Benefits Replacement Fund via the Treasury.
    • The fee is temporary and ends once the state is fully transitioned to chip-enabled EBT cards.

  4. Stolen SNAP Benefits Replacement Fund (Section 4)

    • Establishes a nonlapsing revolving fund, administered by the State Treasurer.
    • Funds are used to replace stolen SNAP benefits to a participant’s EBT card.
    • The fund is temporary and must be dissolved no less than three months after DHS certifies full transition to chip-enabled EBT cards.
    • Upon dissolution, any remaining balances go to the General Fund.

  5. Reporting (Section 5)

    • DHS must report within three months after dissolution on:
      • Total stolen benefits restored,
      • Number of participants restored,
      • Amount of fund balances returned to the General Fund.

  6. Appropriation to Courts (Section 6)

    • $20,000,000 transferred from the Fund to the Administrative Office of the Courts to cover design/operation/maintenance of a standardized system for collecting the supplemental fee and related court costs.

  7. Implementation and Sunset (Section 7-8)

    • Requires regulatory rules to implement, with potential court rules as needed.
    • Takes effect immediately and expires upon submission of the mandated DHS report.

Affected Parties and Impacts

  • SNAP participants: Potential eligibility for replacement of stolen benefits during the specified window; benefits restored to the participant’s EBT card.
  • DHS and the Commissioner of Human Services: Responsible for establishing the replacement process, eligibility criteria, and public communications.
  • State Treasury and Courts: Administration of the Stolen SNAP Benefits Replacement Fund, collection of the supplemental fee, and use of funds to support court-related costs.
  • Attorney General: Collects the temporary 5% supplemental fee tied to settlements.

Timeline and Status

  • Chip-enabled EBT cards anticipated for all participants in late 2025 or early 2026 (per DHS/vendor timeline).
  • Fund is temporary and targeted to wind down after full transition to chip technology; dissolution occurs no earlier than three months after certification of full transition.
  • Immediate effect upon enactment, with required reporting after dissolution.

This bill aims to bridge gaps before full chip-based EBT deployment by funding replacement of stolen SNAP benefits and creating a dedicated funding mechanism with oversight and reporting.

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

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