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.

This bill creates a temporary fund in the State Treasury to replace SNAP benefits stolen through fraud like card cloning or skimming. It requires the Department of Human Services to restore stolen benefits using this fund, funded by a 5% supplemental fee on penalties from fraud cases. The bill appropriates $20 million to the Administrative Office of the Courts to build a system for collecting this fee. It expires after the state transitions to chip-based EBT cards for all SNAP participants, with any remaining funds returned to the General Fund. The fund directly affects SNAP recipients who experienced benefit theft via electronic card fraud.