Section 414.1. Report on Transition to Chip-Enabled Access Cards.--(a) The department shall prepare a report evaluating the feasibility of transitioning from magnetic stripe access cards to chip-enabled access cards for use in the Supplemental Nutrition Assistance Program. The report shall include an assessment of the financial impact, operational considerations and proposed implementation strategies for the transition. The report shall be designed to provide the members of the General Assembly identified under subsection (c) with timely and actionable information to support an efficient and cost-effective transition.
(b) The report under subsection (a) shall include the following information:
(1) A cost analysis of replacing magnetic stripe access cards with chip-enabled access cards, including an itemized estimate of anticipated expenditures by the following:
(i) The department for costs associated with access card production, distribution and modifications to vendor contracts.
(ii) The department and county assistance offices for costs associated with necessary system modifications, including upgrades to information technology infrastructure.
(2) A review of other states that have implemented or are in the process of implementing chip-enabled access cards. The review shall include the following information:
(i) Identification of best practices and operational insights.
(ii) Recommended strategies to minimize service disruptions, including pilot programs and point-of-sale testing protocols at authorized Supplemental Nutrition Assistance Program retailers.
(iii) Identification of cost-saving measures and methods to reduce the implementation timeline, including options for in-person access card distribution at county assistance offices and alternative mailing strategies.
(3) A proposed implementation timeline that outlines key milestones and estimated time frames for each phase of the transition.
(c) The department shall submit the report under subsection (a) within thirty days of the effective date of this subsection to the following:
(1) The chairperson and minority chairperson of the Appropriations Committee of the Senate.
(2) The chairperson and minority chairperson of the Appropriations Committee of the House of Representatives.
(3) The chairperson and minority chairperson of the Health and Human Services Committee of the Senate.
(4) The chairperson and minority chairperson of the Health Committee of the House of Representatives.
(5) The chairperson and minority chairperson of the Human Services Committee of the House of Representatives.
(414.1 added Nov. 12, 2025, P.L.235, No.46)