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S 4641

Prohibits non-compete agreements and certain restrictive covenants

2025 Regular Session Introduced by Sean Ryan

S-4641 strengthens SNAP/EBT security by upgrading penalties for unauthorized use, adopting USDA‑recommended fraud protections (PIN, EMV, two‑factor auth), and replacing stolen bene

REFERRED TO LABOR
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WeVote Research Nonpartisan
Bill Summary · S 4641

Summary — S-4641 (Introduced Version)

Note on discrepancy
- The bill heading provided to the clerk lists S-4641 as “Prohibits non‑compete agreements and certain restrictive covenants,” but the introduced version of the bill text supplied here amends P.L.1993, c.13 and addresses Supplemental Nutrition Assistance Program (SNAP) Electronic Benefits Transfer (EBT) fraud prevention and related criminal penalties. This summary describes the introduced SNAP/EBT version of S-4641. Verify the official enrolled or later-version text for final subject matter.

Purpose and intent
- Strengthen protections for SNAP (and Work First New Jersey — WFNJ) benefits loaded on EBT cards by (1) modernizing terminology to refer to SNAP and EBT cards, (2) increasing criminal penalties for certain unauthorized uses of EBT funds, and (3) directing the Department of Human Services (DHS) to evaluate and implement fraud‑prevention and EBT security measures recommended by USDA Food and Nutrition Service.

Key provisions
1. Terminology and statutory cross‑references
- Replaces older “food stamp”/ATP language with modern references to SNAP and “electronic benefits transfer card” and updates statutory citations to reflect current law.

  1. Criminal penalties for unauthorized use of EBT/SNAP benefits

    • If SNAP benefits available on an EBT card equal or exceed $150: unauthorized receipt/use, conversion, or transfer of those benefits is a crime of the third degree (upgraded from the prior fourth‑degree classification).
    • If SNAP benefits on an EBT card are less than $150: the offense remains a fourth‑degree crime for the same conduct.

  2. DHS obligations — fraud prevention and security

    • Commissioner of Human Services must evaluate and implement security and fraud‑prevention measures recommended by USDA FNS, including (but not limited to):
      • Requiring participants to choose a strong Personal Identification Number (PIN).
      • Implementing embedded microchip (EMV) technology for EBT cards; until full EMV rollout, use additional magnetic‑stripe safeguards available from processors.
      • Improving DHS data collection on stolen SNAP benefits to identify fraud trends and system weaknesses.
      • Requiring two‑factor authentication for SNAP balance inquiries.
      • Encouraging participants to change their PIN at least monthly.
      • Educating participants about restricting certain transactions (e.g., out‑of‑state or online purchases).
    • DHS must distribute theft/fraud prevention information in writing at enrollment and recertification and post guidance online and in hard copy at all SNAP eligibility agencies.

  3. Replacement of stolen benefits (partial)

    • The introduced text directs DHS to replace SNAP benefits determined to have been stolen via card skimming/cloning until microchip technology is fully implemented. (Text truncates in the supplied file; final replacement process details may appear in the completed bill.)

Who would be affected
- SNAP and WFNJ participants in New Jersey (cardholders) — will receive security protections, education, and possible benefit replacement following certain thefts.
- Department of Human Services — required to adopt technical and administrative safeguards, update outreach materials, and improve data collection.
- EBT processors and card vendors — may be required to implement EMV chips, enhanced magnetic‑stripe safeguards, and support two‑factor authentication and other security functions.
- Retailers and entities that accept EBT payments — may experience procedural or technology changes during the transition.
- Individuals who commit EBT fraud — face increased criminal penalties when $150+ is involved.

Procedural / timeline notes
- Introduced: June 23, 2025 (per header). Status listed as REFERRED TO LABOR.
- Legislative action entries provided are duplicative and inconsistent (some actions predate introduction and show passage/delivery dates through June 9, 2025). Given the inconsistencies in the supplied action log, consult the official legislative website for the current status, committee referrals, and any amended/printed versions (e.g., 4641A was printed per the action history).
- The introduced text is truncated near the end; final enacted language may include additional procedural or appropriation language.

Sponsors and related bills
- Primary sponsors: Senators Angela V. McKnight, Raj Mukherji, and Sean Ryan.
- Related prior-session bills: S-6425 and S-3100.

Recommendation
- Because the supplied metadata (title) and the bill text diverge, and because the legislative action history in the file contains duplicate and inconsistent entries, review the official legislative docket (New Jersey Legislature) and any subsequently printed/committee/amended versions (e.g., S-4641A or an enrolled bill) to confirm final provisions and current status before relying on this summary for legal or programmatic decisions.

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

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