South Carolina H 4401: South Carolina EBT Fraud Reimbursement and Economic Protection Act

Bill Text

2025-2026 Bill 4401 Text of Previous Version (Apr. 23, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4401

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE 
"SOUTH CAROLINA EBT FRAUD REIMBURSEMENT AND ECONOMIC PROTECTION ACT" BY ADDING 
ARTICLE 11 TO CHAPTER 5, TITLE 43 SO AS TO ESTABLISH A FUND AND RELATED PROGRAM 
THROUGH WHICH CERTAIN SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFICIARIES 
WHO ARE VICTIMS OF EBT THEFT MAY RECOVER LOST BENEFITS, TO DEFINE TERMS, TO 
ESTABLISH PROGRAM REQUIREMENTS, TO PROVIDE A FUND CAP, AND FOR OTHER PURPOSES.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. This act may be cited as the "South Carolina EBT Fraud Reimbursement and 
Economic Protection Act."

SECTION 2. Chapter 5, Title 43 of the S.C. Code is amended by 
adding:

Article 11

EBT Fraud Reimbursement and Economic Protection Program

 Section 
43-5-1310. The purpose of this article is to establish a reimbursement program 
for Supplemental Nutrition Assistance Program (SNAP) beneficiaries in South 
Carolina who are victims of electronic benefit transfer card theft including, 
but not limited to, by skimming, cloning, or other unauthorized electronic 
access, which reimburses up to eighty percent of any lost benefits, subject to 
annual appropriations and a statewide reimbursement cap tied to SNAP enrollment 
figures.

 Section 
43-5-1320. The General Assembly finds that:

 (1) 
The unauthorized skimming of EBT benefits has caused undue harm to low-income 
South Carolinians.

 (2) 
Expired federal protections have left families with no pathway to recover 
stolen benefits, resulting in hunger, housing insecurity, and local economic 
disruption.

 (3) 
For every dollar of SNAP benefits spent, approximately one dollar and fifty 
cents is generated in local economic activity, according to U.S. Department of 
Agriculture estimates.

 (4) 
Protecting and restoring EBT benefits support both low-income families and 
South Carolina's retail and agricultural economy.

 Section 
43-5-1330. For purposes of this article:

 (1) "Department" 
means the Department of Social Services.

 (2) 
"EBT" means electronic benefits transfer card.

 (3) "EBT 
skimming" means the unauthorized collection of electronic benefits transfer 
card information through illegal electronic devices or networks.

 (4) 
"Reimbursement fund" means a fund created pursuant to this article from which 
reimbursements are issued upon approval.

 (5) 
"SNAP" means the Supplemental Nutrition Assistance Program.

 (6) 
"SNAP beneficiary" means an individual or household currently receiving SNAP benefits.

 Section 
43-5-1340. (A) There is hereby 
created the EBT Fraud Reimbursement Fund, administered by the South Carolina 
Department of Social Services.

 (B) 
The reimbursement fund shall reimburse eligible SNAP beneficiaries up to eighty 
percent of the value of verified stolen benefits as a result of EBT theft.

 (C) The 
department shall develop a fraud verification and appeal process, including:

 (1) 
required documentation from the recipient;

 (2) 
written internal fraud investigation process; and

 (3) 
a timeline for reimbursement decision.

 (D) 
Reimbursements of verified stolen benefits shall be issued as temporary 
replacement EBT credits.

 Section 
43-5-1350. (A) The reimbursement 
fund is subject to an annual cap based on the number of active SNAP households 
in the previous fiscal year. Unless modified by the department through a duly 
promulgated regulation, the formula to determine the annual cap is the product 
of the number of active SNAP households multiplied by five.

 (B) The 
department annually shall report to the General Assembly:

 (1) 
the number of cases filed;

 (2) 
the number of reimbursements granted;

 (3) 
the total value reimbursed; and

 (4) 
the fund utilization rate.

 Section 43-5-1360. This 
article and fund created pursuant to this article must be funded in the annual 
general appropriations act, or may be supported through any combination of 
state funds and private or public grants.

SECTION 3. This act takes effect upon approval 
by the Governor.

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This web page was last updated on April 23, 2025 at 02:11 PM