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 Cali-
fornia, 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 consider-
ation of such provisions as fall within the jurisdiction of the committee
concerned
A BILL
Entitled ‘‘Food Stamp Program Integrity Act of 1995’’.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE I—RETAILER INTEGRITY
AUTHORITY TO ESTABLISH AUTHORIZATION PERIODS
SEC. 101. Section 9(a)(1) of the Food Stamp Act of
1977 (7 U.S.C. 2018(a)(1)) is amended by adding at the
end the following new sentence: ‘‘The Secretary is author-
ized to issue regulations establishing specific time periods
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during which authorization to accept and redeem coupons
under the Food Stamp Program shall be valid.’’.
SPECIFIC PERIOD FOR PROHIBITING PARTICIPATION OF
STORES BASED ON LACK OF BUSINESS INTEGRITY
SEC. 102. Section 9(a)(1) of the Food Stamp Act of
1977 (7 U.S.C. 2018(a)(1)), as previously amended by
this Act, is amended by adding at the end thereof the fol-
lowing new sentences: ‘‘The Secretary is authorized to
issue regulations establishing specific time periods during
which a retail food store or wholesale food concern that
has an application for approval to accept and redeem cou-
pons denied or that has such an approval withdrawn on
the basis of business integrity and reputation cannot sub-
mit a new application for approval. Such periods shall re-
flect the severity of business integrity infractions that are
the basis of such denials or withdrawals.’’.
INFORMATION FOR VERIFYING ELIGIBILITY FOR
AUTHORIZATION
SEC. 103. Section 9(c) of the Food Stamp Act of
1977 (7 U.S.C. 2018(c)) is amended by—
(1) inserting after ‘‘submit information’’ in the
first sentence the following: ‘‘, which may include
relevant income and sales tax filing documents,’’;
and
(2) inserting after the first sentence the follow-
ing new sentence: ‘‘The regulations may require re-
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tail food stores and wholesale food concerns to pro-
vide written authorization for the Secretary to verify
all relevant tax filings with appropriate agencies and
to obtain corroborating documentation from other
sources in order that the accuracy of information
provided by such stores and concerns may be veri-
fied.’’.
WAITING PERIOD FOR STORES THAT INITIALLY FAIL TO
MEET AUTHORIZATION CRITERIA
SEC. 104. Section 9(d) of the Food Stamp Act of
1977 (7 U.S.C. 2018(d)) is amended by adding at the end
thereof the following new sentence: ‘‘Regulations issued
pursuant to this Act shall prohibit a retail food store or
wholesale food concern that has an application for ap-
proval to accept and redeem coupons denied because it
does not meet criteria for approval established by the Sec-
retary in regulations from submitting a new application
for six months from the date of such denial.’’.
BASES FOR SUSPENSIONS AND DISQUALIFICATIONS
SEC. 105. Section 12(a) of the Food Stamp Act of
1977 (7 U.S.C. 2021(a)) is amended by adding at the end
thereof the following new sentence: ‘‘Regulations issued
pursuant to this Act shall provide criteria for the finding
of violations and the suspension or disqualification of a
retail food store or wholesale food concern on the basis
of evidence which may include, but is not limited to, facts
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established through on-site investigations, inconsistent re-
demption data or evidence obtained through transaction
reports under electronic benefit transfer systems.’’.
AUTHORITY TO SUSPEND STORES VIOLATING PROGRAM
REQUIREMENTS PENDING ADMINISTRATIVE AND JU-
DICIAL REVIEW
SEC. 106. (a) Section 12(a) of the Food Stamp Act
of 1977 (7 U.S.C. 2021(a)), as previously amended by this
Act, is amended by adding at the end thereof the following
new sentences: ‘‘Such regulations may establish criteria
under which the authorization of a retail food store or
wholesale food concern to accept and redeem coupons may
be suspended at the time such store or concern is initially
found to have committed violations of program require-
ments. Such suspension may coincide with the period of
a review as provided in section 14 of this Act. The Sec-
retary shall not be liable for the value of any sales lost
during any suspension or disqualification period.’’.
(b) Section 14(a) of the Food Stamp Act of 1977 (7
U.S.C. 2023(a)) is amended by—
(1) inserting in the first sentence immediately
before ‘‘disqualified or subjected’’ the word ‘‘sus-
pended,’’;
(2) inserting immediately before the period at
the end of the fifth sentence ‘‘: Provided, That not-
withstanding any other provision of law, in the case
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PERMANENT DEBARMENT OF RETAILERS WHO
INTENTIONALLY SUBMIT FALSIFIED APPLICATIONS
SEC. 108. Section 12 of the Food Stamp Act of 1977
(7 U.S.C. 2021) is amended by adding the following new
subsection:
‘‘(h) The Secretary shall issue regulations providing
for the permanent disqualification of a retail food store
or wholesale food concern that is determined to have
knowingly submitted an application for approval to accept
and redeem coupons which contains false information
about one or more substantive matters which were the
basis for providing approval. Any disqualification imposed
under this subsection shall be subject to administrative
and judicial review pursuant to section 14 of this Act but
such disqualification shall remain in effect pending such
review.’’.
EXPANDED CIVIL AND CRIMINAL FORFEITURE FOR
VIOLATIONS OF THE FOOD STAMP ACT
SEC. 109. (a) FORFEITURE OF ITEMS EXCHANGED
IN FOOD STAMP TRAFFICKING.—Section 15(g) of the
Food Stamp Act of 1977 (7 U.S.C. 2024(g)) is amended
by striking ‘‘or intended to be furnished.’’
(b) CIVIL AND CRIMINAL FORFEITURE.—Section 15
of the Food Stamp Act of 1977 (7 U.S.C. 2024)) is
amended by adding the following new subsection:
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‘‘(h)(1) CIVIL FORFEITURE FOR FOOD STAMP BENE-
FIT VIOLATIONS.—
‘‘(A) Any food stamp benefits and any property,
real or personal—
‘‘(i) constituting, derived from, or traceable
to any proceeds obtained directly or indirectly
from, or
‘‘(ii) used, or intended to be used, to com-
mit, or to facilitate,
the commission of a violation of subsection (b) or
subsection (c) of this section involving food stamp
benefits having an aggregate value of not less than
$5,000, shall be subject to forfeiture to the United
States.
‘‘(B) The provisions of chapter 46 of title 18,
relating to civil forfeitures shall extend to a seizure
or forfeiture under this subsection, insofar as appli-
cable and not inconsistent with the provisions of this
subsection.
‘‘(2) CRIMINAL FORFEITURE FOR FOOD STAMP BEN-
EFIT VIOLATIONS.—
‘‘(A)(i) Any person convicted of violating sub-
section (b) or subsection (c) of this section involving
food stamp benefits having an aggregate value of not
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less than $5,000, shall forfeit to the United States,
irrespective of any State law—
‘‘(I) any food stamp benefits and any prop-
erty constituting, or derived from, or traceable
to any proceeds such person obtained directly or
indirectly as a result of such violation; and
‘‘(II) any food stamp benefits and any of
such person’s property used, or intended to be
used, in any manner or part, to commit, or to
facilitate the commission of such violation.
‘‘(ii) In imposing sentence on such person, the
court shall order that the person forfeit to the
United States all property described in this sub-
section.
‘‘(B) All food stamp benefits and any property
subject to forfeiture under this subsection, any sei-
zure and disposition thereof, and any administrative
or judicial proceeding relating thereto, shall be gov-
erned by subsections (b), (c), (e), and (g) through
(p) of section 413 of the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (21 U.S.C.
853), insofar as applicable and not inconsistent with
the provisions of this subsection.
‘‘(3) This subsection shall not apply to property spec-
ified in subsection (g) of this section.
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‘‘(4) The Secretary may prescribe such rules and reg-
ulations as may be necessary to carry out this sub-
section.’’.
EXPANDED AUTHORITY FOR SHARING INFORMATION
PROVIDED BY RETAILERS
SEC. 110. (a) Section 205(c)(2)(C)(iii) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)(iii)) (as amended by
section 316(a) of the Social Security Administrative Re-
form Act of 1994 (Public Law 103–296; 108 Stat. 1464)
is amended by—
(1) inserting in the first sentence of subclause
(II) immediately after ‘‘instrumentality of the
United States’’ the following: ‘‘, or State government
officers and employees with law enforcement or in-
vestigative responsibilities, or State agencies that
have the responsibility for administering the Special
Supplemental Nutrition Program for Women, In-
fants and Children (WIC)’’;
(2) inserting in the last sentence of subclause
(II) immediately after ‘‘other Federal’’ the words
‘‘or State’’; and
(3) inserting ‘‘or a State’’ in subclause (III) im-
mediately after ‘‘United States’’.
(b) Section 6109(f)(2) of the Internal Revenue Code
of 1986 (26 U.S.C. 6109(f)(2)) (as added by section
316(b) of the Social Security Administrative Reform Act
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of 1994 (Public Law 103–296; 108 Stat. 1464) is amend-
ed by—
(1) inserting in subparagraph (A) immediately
after ‘‘instrumentality of the United States’’ the fol-
lowing: ‘‘, or State government officers and employ-
ees with law enforcement or investigative responsibil-
ities, or State agencies that have the responsibility
for administering the Special Supplemental Nutri-
tion Program for Women, Infants and Children
(WIC)’’;
(2) inserting in the last sentence of subpara-
graph (A) immediately following ‘‘other Federal’’ the
words ‘‘or State’’; and
(3) inserting ‘‘or a State’’ in subparagraph (B)
immediately after ‘‘United States’’.
EXPANDED DEFINITION OF ‘‘COUPON’’
SEC. 111. Section 3(d) of the Food Stamp Act of
1977 (7 U.S.C. 2012(d)) is amended by striking ‘‘or type
of certificate’’ and inserting in lieu thereof ‘‘type of certifi-
cate, authorization cards, cash or checks issued in lieu of
coupons or access devices, including, but not limited to,
electronic benefit transfer cards and personal identifica-
tion numbers’’.
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TITLE II—RECIPIENT INTEGRITY
DOUBLED PENALTIES FOR VIOLATING FOOD STAMP
PROGRAM REQUIREMENTS
SEC. 201. Section 6(b)(1) of the Food Stamp Act of
1977 (7 U.S.C. 2015(b)(1)) is amended by—
(1) striking in clause (i) ‘‘six months’’ and in-
serting in lieu thereof ‘‘1 year’’; and
(2) striking in clause (ii) ‘‘1 year’’ and inserting
in lieu thereof ‘‘2 years’’.
MANDATORY CLAIMS COLLECTION METHODS
SEC. 202. (a) Section 11(e)(8) of the Food Stamp
Act of 1977 (7 U.S.C. 2020(e)(8)) is amended by insert-
ing before the semi-colon at the end thereof the following:
‘‘or refunds of Federal taxes as authorized pursuant to
31 U.S.C. 3720A’’.
(b) Section 13(d) of the Food Stamp Act of 1977
(7 U.S.C. 2022(d)) is amended by—
(1) striking ‘‘may’’ and inserting in lieu thereof
‘‘shall’’; and
(2) inserting before the period at the end there-
of the following: ‘‘or refunds of Federal taxes as au-
thorized pursuant to 31 U.S.C. 3720A’’.
(c) Section 6103(1) of the Internal Revenue Code (26
U.S.C. 6103(1)) is amended by—
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(1) striking ‘‘officers and employees’’ in para-
graph (10)(A) and inserting in lieu thereof ‘‘officers,
employees or agents, including State agencies’’; and
(2) striking ‘‘officers and employees’’ in para-
graph (10)(B) and inserting in lieu thereof ‘‘officers,
employees or agents, including State agencies’’.
(d) The provisions of this section shall be effective
October 1, 1995.
TITLE III—IMPLEMENTATION AND EFFECTIVE
DATES
SEC. 301. Except as otherwise provided in this Act,
the provisions of this Act shall become effective and be
implemented on the date of enactment.
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