I

104TH CONGRESS

1ST SESSION H. R. 1093

Entitled ‘‘Food Stamp Program Integrity Act of 1995’’.

IN THE HOUSE OF REPRESENTATIVES

MARCH 1, 1995

Mr. DE LA GARZA (for himself, Mr. HOLDEN, Mr. FARR, Mr. BROWN of California, Mr. PASTOR, and Mr. STENHOLM) introduced the following bill;

which was referred to the Committee on Agriculture and, in addition, to

the Committees on Ways and Means and the Judiciary, for a period to

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee

concerned

A BILL

Entitled ‘‘Food Stamp Program Integrity Act of 1995’’.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 TITLE I—RETAILER INTEGRITY

4 AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS

5 SEC. 101. Section 9(a)(1) of the Food Stamp Act of

6 1977 (7 U.S.C. 2018(a)(1)) is amended by adding at the

7 end the following new sentence: ‘‘The Secretary is author8 ized to issue regulations establishing specific time periods
2

HR 1093 IH

1 during which authorization to accept and redeem coupons

2 under the Food Stamp Program shall be valid.’’.

3 SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF

4 STORES BASED ON LACK OF BUSINESS INTEGRITY

5 SEC. 102. Section 9(a)(1) of the Food Stamp Act of

6 1977 (7 U.S.C. 2018(a)(1)), as previously amended by

7 this Act, is amended by adding at the end thereof the fol8 lowing new sentences: ‘‘The Secretary is authorized to

9 issue regulations establishing specific time periods during

10 which a retail food store or wholesale food concern that

11 has an application for approval to accept and redeem cou12 pons denied or that has such an approval withdrawn on

13 the basis of business integrity and reputation cannot sub14 mit a new application for approval. Such periods shall re15 flect the severity of business integrity infractions that are

16 the basis of such denials or withdrawals.’’.

17 INFORMATION FOR VERIFYING ELIGIBILITY FOR

18 AUTHORIZATION

19 SEC. 103. Section 9(c) of the Food Stamp Act of

20 1977 (7 U.S.C. 2018(c)) is amended by—

21 (1) inserting after ‘‘submit information’’ in the

22 first sentence the following: ‘‘, which may include

23 relevant income and sales tax filing documents,’’;

24 and

25 (2) inserting after the first sentence the follow26 ing new sentence: ‘‘The regulations may require re-
3

HR 1093 IH

1 tail food stores and wholesale food concerns to pro2 vide written authorization for the Secretary to verify

3 all relevant tax filings with appropriate agencies and

4 to obtain corroborating documentation from other

5 sources in order that the accuracy of information

6 provided by such stores and concerns may be veri7 fied.’’.

8 WAITING PERIOD FOR STORES THAT INITIALLY FAIL TO

9 MEET AUTHORIZATION CRITERIA

10 SEC. 104. Section 9(d) of the Food Stamp Act of

11 1977 (7 U.S.C. 2018(d)) is amended by adding at the end

12 thereof the following new sentence: ‘‘Regulations issued

13 pursuant to this Act shall prohibit a retail food store or

14 wholesale food concern that has an application for ap15 proval to accept and redeem coupons denied because it

16 does not meet criteria for approval established by the Sec17 retary in regulations from submitting a new application

18 for six months from the date of such denial.’’.

19 BASES FOR SUSPENSIONS AND DISQUALIFICATIONS

20 SEC. 105. Section 12(a) of the Food Stamp Act of

21 1977 (7 U.S.C. 2021(a)) is amended by adding at the end

22 thereof the following new sentence: ‘‘Regulations issued

23 pursuant to this Act shall provide criteria for the finding

24 of violations and the suspension or disqualification of a

25 retail food store or wholesale food concern on the basis

26 of evidence which may include, but is not limited to, facts
4

HR 1093 IH

1 established through on-site investigations, inconsistent re2 demption data or evidence obtained through transaction

3 reports under electronic benefit transfer systems.’’.

4 AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM

5 REQUIREMENTS PENDING ADMINISTRATIVE AND JU6 DICIAL REVIEW

7 SEC. 106. (a) Section 12(a) of the Food Stamp Act

8 of 1977 (7 U.S.C. 2021(a)), as previously amended by this

9 Act, is amended by adding at the end thereof the following

10 new sentences: ‘‘Such regulations may establish criteria

11 under which the authorization of a retail food store or

12 wholesale food concern to accept and redeem coupons may

13 be suspended at the time such store or concern is initially

14 found to have committed violations of program require15 ments. Such suspension may coincide with the period of

16 a review as provided in section 14 of this Act. The Sec17 retary shall not be liable for the value of any sales lost

18 during any suspension or disqualification period.’’.

19 (b) Section 14(a) of the Food Stamp Act of 1977 (7

20 U.S.C. 2023(a)) is amended by—

21 (1) inserting in the first sentence immediately

22 before ‘‘disqualified or subjected’’ the word ‘‘sus23 pended,’’;

24 (2) inserting immediately before the period at

25 the end of the fifth sentence ‘‘: Provided, That not26 withstanding any other provision of law, in the case
5

HR 1093 IH

1 of the suspension of a retail food store or wholesale

2 food concern pursuant to section 12(a) of this Act,

3 such suspension shall remain in effect pending any

4 administrative or judicial review of the proposed dis5 qualification action and the period of suspension

6 shall be deemed a part of any period of disqualifica7 tion which is imposed.’’; and

8 (3) striking the last sentence.

9 DISQUALIFICATION OF RETAILERS WHO ARE

10 DISQUALIFIED FROM THE WIC PROGRAM

11 SEC. 107. Section 12 of the Food Stamp Act of 1977

12 (7 U.S.C. 2021) is amended by adding the following new

13 subsection:

14 ‘‘(g) The Secretary shall issue regulations providing

15 criteria for the disqualification of approved retail food

16 stores and wholesale food concerns that are otherwise dis17 qualified from accepting benefits under the Special Sup18 plemental Nutrition Program for Women, Infants and

19 Children (WIC) authorized under section 17 of the Child

20 Nutrition Act of 1966. Such disqualification (1) shall be

21 for the same period as the disqualification from the WIC

22 Program, (2) may begin at a later date, and (3) notwith23 standing the provisions of section 14 of this Act, shall not

24 be subject to administrative or judicial review.’’.
6

HR 1093 IH

1 PERMANENT DEBARMENT OF RETAILERS WHO

2 INTENTIONALLY SUBMIT FALSIFIED APPLICATIONS

3 SEC. 108. Section 12 of the Food Stamp Act of 1977

4 (7 U.S.C. 2021) is amended by adding the following new

5 subsection:

6 ‘‘(h) The Secretary shall issue regulations providing

7 for the permanent disqualification of a retail food store

8 or wholesale food concern that is determined to have

9 knowingly submitted an application for approval to accept

10 and redeem coupons which contains false information

11 about one or more substantive matters which were the

12 basis for providing approval. Any disqualification imposed

13 under this subsection shall be subject to administrative

14 and judicial review pursuant to section 14 of this Act but

15 such disqualification shall remain in effect pending such

16 review.’’.

17 EXPANDED CIVIL AND CRIMINAL FORFEITURE FOR

18 VIOLATIONS OF THE FOOD STAMP ACT

19 SEC. 109. (a) FORFEITURE OF ITEMS EXCHANGED

20 IN FOOD STAMP TRAFFICKING.—Section 15(g) of the

21 Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended

22 by striking ‘‘or intended to be furnished.’’

23 (b) CIVIL AND CRIMINAL FORFEITURE.—Section 15

24 of the Food Stamp Act of 1977 (7 U.S.C. 2024)) is

25 amended by adding the following new subsection:
7

HR 1093 IH

1 ‘‘(h)(1) CIVIL FORFEITURE FOR FOOD STAMP BENE2 FIT VIOLATIONS.—

3 ‘‘(A) Any food stamp benefits and any property,

4 real or personal—

5 ‘‘(i) constituting, derived from, or traceable

6 to any proceeds obtained directly or indirectly

7 from, or

8 ‘‘(ii) used, or intended to be used, to com9 mit, or to facilitate,

10 the commission of a violation of subsection (b) or

11 subsection (c) of this section involving food stamp

12 benefits having an aggregate value of not less than

13 $5,000, shall be subject to forfeiture to the United

14 States.

15 ‘‘(B) The provisions of chapter 46 of title 18,

16 relating to civil forfeitures shall extend to a seizure

17 or forfeiture under this subsection, insofar as appli18 cable and not inconsistent with the provisions of this

19 subsection.

20 ‘‘(2) CRIMINAL FORFEITURE FOR FOOD STAMP BEN21 EFIT VIOLATIONS.—

22 ‘‘(A)(i) Any person convicted of violating sub23 section (b) or subsection (c) of this section involving

24 food stamp benefits having an aggregate value of not
8

HR 1093 IH

1 less than $5,000, shall forfeit to the United States,

2 irrespective of any State law—

3 ‘‘(I) any food stamp benefits and any prop4 erty constituting, or derived from, or traceable

5 to any proceeds such person obtained directly or

6 indirectly as a result of such violation; and

7 ‘‘(II) any food stamp benefits and any of

8 such person’s property used, or intended to be

9 used, in any manner or part, to commit, or to

10 facilitate the commission of such violation.

11 ‘‘(ii) In imposing sentence on such person, the

12 court shall order that the person forfeit to the

13 United States all property described in this sub14 section.

15 ‘‘(B) All food stamp benefits and any property

16 subject to forfeiture under this subsection, any sei17 zure and disposition thereof, and any administrative

18 or judicial proceeding relating thereto, shall be gov19 erned by subsections (b), (c), (e), and (g) through

20 (p) of section 413 of the Comprehensive Drug Abuse

21 Prevention and Control Act of 1970 (21 U.S.C.

22 853), insofar as applicable and not inconsistent with

23 the provisions of this subsection.

24 ‘‘(3) This subsection shall not apply to property spec25 ified in subsection (g) of this section.
9

HR 1093 IH

1 ‘‘(4) The Secretary may prescribe such rules and reg2 ulations as may be necessary to carry out this sub3 section.’’.

4 EXPANDED AUTHORITY FOR SHARING INFORMATION

5 PROVIDED BY RETAILERS

6 SEC. 110. (a) Section 205(c)(2)(C)(iii) of the Social

7 Security Act (42 U.S.C. 405(c)(2)(C)(iii)) (as amended by

8 section 316(a) of the Social Security Administrative Re9 form Act of 1994 (Public Law 103–296; 108 Stat. 1464)

10 is amended by—

11 (1) inserting in the first sentence of subclause

12 (II) immediately after ‘‘instrumentality of the

13 United States’’ the following: ‘‘, or State government

14 officers and employees with law enforcement or in15 vestigative responsibilities, or State agencies that

16 have the responsibility for administering the Special

17 Supplemental Nutrition Program for Women, In18 fants and Children (WIC)’’;

19 (2) inserting in the last sentence of subclause

20 (II) immediately after ‘‘other Federal’’ the words

21 ‘‘or State’’; and

22 (3) inserting ‘‘or a State’’ in subclause (III) im23 mediately after ‘‘United States’’.

24 (b) Section 6109(f)(2) of the Internal Revenue Code

25 of 1986 (26 U.S.C. 6109(f)(2)) (as added by section

26 316(b) of the Social Security Administrative Reform Act
10

HR 1093 IH

1 of 1994 (Public Law 103–296; 108 Stat. 1464) is amend2 ed by—

3 (1) inserting in subparagraph (A) immediately

4 after ‘‘instrumentality of the United States’’ the fol5 lowing: ‘‘, or State government officers and employ6 ees with law enforcement or investigative responsibil7 ities, or State agencies that have the responsibility

8 for administering the Special Supplemental Nutri9 tion Program for Women, Infants and Children

10 (WIC)’’;

11 (2) inserting in the last sentence of subpara12 graph (A) immediately following ‘‘other Federal’’ the

13 words ‘‘or State’’; and

14 (3) inserting ‘‘or a State’’ in subparagraph (B)

15 immediately after ‘‘United States’’.

16 EXPANDED DEFINITION OF ‘‘COUPON’’

17 SEC. 111. Section 3(d) of the Food Stamp Act of

18 1977 (7 U.S.C. 2012(d)) is amended by striking ‘‘or type

19 of certificate’’ and inserting in lieu thereof ‘‘type of certifi20 cate, authorization cards, cash or checks issued in lieu of

21 coupons or access devices, including, but not limited to,

22 electronic benefit transfer cards and personal identifica23 tion numbers’’.
11

HR 1093 IH

1 TITLE II—RECIPIENT INTEGRITY

2 DOUBLED PENALTIES FOR VIOLATING FOOD STAMP

3 PROGRAM REQUIREMENTS

4 SEC. 201. Section 6(b)(1) of the Food Stamp Act of

5 1977 (7 U.S.C. 2015(b)(1)) is amended by—

6 (1) striking in clause (i) ‘‘six months’’ and in7 serting in lieu thereof ‘‘1 year’’; and

8 (2) striking in clause (ii) ‘‘1 year’’ and inserting

9 in lieu thereof ‘‘2 years’’.

10 MANDATORY CLAIMS COLLECTION METHODS

11 SEC. 202. (a) Section 11(e)(8) of the Food Stamp

12 Act of 1977 (7 U.S.C. 2020(e)(8)) is amended by insert13 ing before the semi-colon at the end thereof the following:

14 ‘‘or refunds of Federal taxes as authorized pursuant to

15 31 U.S.C. 3720A’’.

16 (b) Section 13(d) of the Food Stamp Act of 1977

17 (7 U.S.C. 2022(d)) is amended by—

18 (1) striking ‘‘may’’ and inserting in lieu thereof

19 ‘‘shall’’; and

20 (2) inserting before the period at the end there21 of the following: ‘‘or refunds of Federal taxes as au22 thorized pursuant to 31 U.S.C. 3720A’’.

23 (c) Section 6103(1) of the Internal Revenue Code (26

24 U.S.C. 6103(1)) is amended by—
12

HR 1093 IH

1 (1) striking ‘‘officers and employees’’ in para2 graph (10)(A) and inserting in lieu thereof ‘‘officers,

3 employees or agents, including State agencies’’; and

4 (2) striking ‘‘officers and employees’’ in para5 graph (10)(B) and inserting in lieu thereof ‘‘officers,

6 employees or agents, including State agencies’’.

7 (d) The provisions of this section shall be effective

8 October 1, 1995.

9 TITLE III—IMPLEMENTATION AND EFFECTIVE

10 DATES

11 SEC. 301. Except as otherwise provided in this Act,

12 the provisions of this Act shall become effective and be

13 implemented on the date of enactment.

Æ