S214

SENATE, No. 214

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Senators CONNORS and BASSANO

An Act concerning aid to families with dependent children and supplementing chapter 20 of Title 2C of the New Jersey Statutes and chapter 10 of Title 44 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in this act:

"AFDC benefits" means any cash benefit used or intended for use by families receiving public assistance under the aid to families with dependent children program, established pursuant to P.L.1959, c.86 (C.44:10-1 et seq.).

"Benefit card" means a card used or intended for use to access AFDC benefits under the electronic benefit distribution system established pursuant to the "Public Assistance Electronic Distribution System Act," P.L.1985, c.501 (C.44:10-5.1 et seq.).

"Department" means the Department of Human Services.

2. If the value of any automated aid to families with dependent children benefit card assistance is equal to or greater than $150, an individual shall be guilty of a crime of the fourth degree if he purposely or knowingly and without authorization:

a. Receives or uses the proceeds of the aid to families with dependent children benefit card for which he has not applied or has not been approved by the department to use;

b. Engages in any transaction to convert aid to families with dependent children benefit card assistance to other property contrary to federal or State government rules and regulations governing the aid to families with dependent children program; or

c. Transfers the aid to families with dependent children benefit card to another person who is not lawfully entitled or approved by the department to use the aid to families with dependent children benefit card.

3. If the value of any automated aid to families with dependent children benefit card assistance is less than $150, an individual shall be guilty of a disorderly persons offense if he purposely or knowingly and without authorization:

a. Receives or uses the proceeds of the aid to families with dependent children benefit card for which he has not applied or has not been approved by the department to use;

4. Computer related crimes or any misuse of the proceeds of an electronic benefits transfer benefit card for which an individual has not applied, or has not been approved to use by the Department of Human Services, either through the food stamp or aid to families with dependent children programs, shall be subject to the penalties of law delineated in P.L.1993, c.13 (C.2C:20-35 et seq.) and in sections 2 and 3 of P.L. , c. (C. )(pending before the Legislature as this bill).

5. This act shall take effect immediately.

STATEMENT

This bill expands the provisions of P.L.1993, c.13 (C.2C:20-35 et seq.), which established penalties for the illegal use of food stamp benefits, to include the use of the plastic magnetic-stripe card for the aid to families with dependent children (AFDC) program. AFDC recipients will use the benefit cards to access their benefits at point-of-sale terminals under the electronic benefit distribution system established purusant to the "Public Assistance Electronic Benefit Distribution System Act," P.L.1985, c.501 (C.44:10-5.1 et seq.).

The State has begun implementing the electronic benefit distribution system in Camden, Essex and Hudson counties, where the use of this card is replacing food stamps and AFDC welfare checks for thousands of public assistance recipients, and will eventually be expanding the system to all 21 counties Statewide.

Establishes penalites for fraudulent use of Electronic Benefits Transfer benefit card for AFDC benefits.