I
104TH CONGRESS
1ST SESSION
H. R. 992
To amend the Food Stamp Act of 1977 to require the Secretary to reauthorize
participating retail food stores and wholesale food concerns biennially;
to require such stores and such concerns to provide documentation to
the Secretary for approval and reauthorization; to provide for the forfeit-
ure of proceeds and property resulting from certain violations of such
Act; and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 16, 1995
Mr. WYDEN introduced the following bill; which was referred to the Committee
on Agriculture
A BILL
To amend the Food Stamp Act of 1977 to require the
Secretary to reauthorize participating retail food stores
and wholesale food concerns biennially; to require such
stores and such concerns to provide documentation to
the Secretary for approval and reauthorization; to pro-
vide for the forfeiture of proceeds and property resulting
from certain violations of such Act; and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Food Stamp Traffick-
ing Prevention and Penalty Act of 1995’’.
SEC. 2. BIENNIAL REAUTHORIZATION OF RETAIL FOOD
STORES AND WHOLESALE FOOD CONCERNS.
Section 9(a)(2)(A) of the Food Stamp Act of 1977
(7 U.S.C. 2018(a)(2)(A)) is amended—
(1) by striking ‘‘periodic’’, and
(2) by inserting ‘‘not less frequently that at 2-
year intervals’’ before the semicolon.
SEC. 3. DOCUMENTATION REQUIRED RELATING RETAIL
FOOD STORES AND WHOLESALE FOOD CON-
CERNS.
The first sentence of section 9(c) of the Food Stamp
Act of 1977 (7 U.S.C. 2018(c)) is amended by inserting
‘‘and documentation (which may include tax documents,
business licenses, certificates of incorporation, and other
official documents)’’ after ‘‘information’’.
SEC. 4. CIVIL AND CRIMINAL FORFEITURE OF PROPERTY.
(a) FORFEITURE.—The Food Stamp Act of 1977 (7
U.S.C. 2011–2032) is amended by adding at the end the
following:
‘‘SEC. 24. CIVIL AND CRIMINAL FORFEITURE.
‘‘(a) PROPERTY SUBJECT TO FORFEITURE.—In the
case of a violation (other than a misdemeanor) of sub-
section (b) or (c) of section 15, the following shall be sub-
ject to forfeiture to the United States in a civil or criminal
proceeding, and no property right shall exist in them:
‘‘(1) All coupons which have been used, trans-
ferred, acquired, altered, possessed, or presented or
caused to be presented for payment or redemption in
violation of subsection (b) or (c) of section 15.
‘‘(2) All conveyances, including aircraft, vehi-
cles, or vessels, which are used, or are intended for
use, to transport, or in any manner to facilitate the
transportation, sale, receipt, possession, or conceal-
ment of property described in paragraph (1), except
that—
‘‘(A) no conveyance used by any person as
a common carrier in the transaction of business
as a common carrier shall be forfeited under
this section unless it appears that the owner or
other person in charge of such conveyance was
a consenting party or privy to a violation of
subsection (b) or (c) of section 15;
‘‘(B) no conveyance shall be forfeited
under this section by reason of any act or omis-
sion established by the owner thereof to have
been committed or omitted by any person other
than such owner while such conveyance was un-
lawfully in the possession of a person other
than the owner in violation of the criminal laws
of the United States, or of any State; and
‘‘(C) no conveyance shall be forfeited under
this paragraph to the extent of an interest of an
owner, by reason of any act or omission estab-
lished by that owner to have been committed, or
omitted without the knowledge, consent, or will-
ful blindness of the owner.
‘‘(3) All books, records, microfilm, tapes, and
data which are used, or intended for use, in violation
of subsection (b) or (c) of section 15.
‘‘(4) All moneys, negotiable instruments, securi-
ties, or other things of value furnished or intended
to be furnished by any person in exchange for cou-
pons in violation of subsection (b) or (c) of section
15, all proceeds traceable to such an exchange, and
all moneys, negotiable instruments, and securities
used or intended to be used to facilitate any viola-
tion of subsection (b) or (c) of section 15, except
that no property shall be forfeited under this para-
graph, to the extent of the interest of an owner, by
reason of any act or omission established by that
owner to have been committed or omitted without
the knowledge or consent of that owner.
‘‘(5) All real property, including any right, title,
and interest (including any leasehold interest) in the
whole of any lot or tract of land and any appur-
tenances or improvements, which is used, or in-
tended to be used, in any manner or part, to com-
mit, or to facilitate the commission of, a violation of
subsection (b) or (c) of section 15 punishable by
more than one year’s imprisonment, except that no
property shall be forfeited under this paragraph, to
the extent of an interest of an owner, by reason of
any act or omission established by that owner to
have been committed or omitted without the knowl-
edge or consent of that owner.
‘‘(6) All coupons which have been involved in
violation of subsection (b) or (c) of section 15.
‘‘(b) SEIZURE PURSUANT TO SUPPLEMENTAL RULES
FOR CERTAIN ADMIRALTY AND MARITIME CLAIMS; ISSU-
ANCE OF WARRANT AUTHORIZING SEIZURE.—Any prop-
erty subject to forfeiture to the United States under sub-
section (a) may be seized by the Attorney General upon
process issued pursuant to the Supplemental Rules for
Certain Admiralty and Maritime Claims by any district
court of the United States having jurisdiction over the
property, except that seizure without such process may be
made when—
‘‘(1) the seizure is incident to an arrest or a
search under a search warrant or an inspection
under an administrative inspection warrant;
‘‘(2) the property subject to seizure has been
the subject of a prior judgment in favor of the
United States in a criminal injunction or forfeiture
proceeding under this section;
‘‘(3) the Attorney General has probable cause
to believe that the property is directly or indirectly
dangerous to health or safety; or
‘‘(4) the Attorney General has probable cause
to believe that the property is subject to civil forfeit-
ure under subsection (a).
In the event of seizure pursuant to paragraph (2), pro-
ceedings under subsection (e) shall be instituted promptly.
The Government may request the issuance of a warrant
authorizing the seizure of property subject to forfeiture
under subsection (a) in the same manner as provided for
a search warrant under the Federal Rules of Criminal
Procedure.
‘‘(c) CRIMINAL FORFEITURE.—The court in imposing
sentence on a person convicted of violation (other than a
misdemeanor) of subsection (b) or (c) of section 15 shall
order that the person forfeit to the United States any
property subject to forfeiture to the United States under
subsection (a).
‘‘(d) CUSTODY OF ATTORNEY GENERAL.—Property
taken or detained under this section shall not be
repleviable, but shall be deemed to be in the custody of
the Attorney General, subject only to the orders and de-
crees of the court or the official having jurisdiction there-
of. Whenever property is seized under this section, the At-
torney General may—
‘‘(1) place the property under seal;
‘‘(2) remove the property to a place designated
by the Attorney General; or
‘‘(3) require that the General Services Adminis-
tration take custody of the property and remove it,
if practicable, to an appropriate location for disposi-
tion in accordance with law.
‘‘(e) OTHER LAWS
AND PROCEEDINGS APPLICA-
BLE.—The provisions of law relating to—
‘‘(1) the seizure, summary and judicial forfeit-
ure, and condemnation of property for violation of
the customs laws;
‘‘(2) the disposition of such property or the pro-
ceeds from the sale thereof;
‘‘(3) the remission or mitigation of such forfeit-
ures; and
‘‘(4) the compromise of claims;
shall apply to seizure and forfeitures incurred, or alleged
to have been incurred, under this section, insofar as appli-
cable and not inconsistent with the provisions hereof, ex-
cept that such duties as are imposed upon the customs
officer or any other person with respect to the seizure and
forfeiture of property under the customs laws shall be per-
formed with respect to seizures and forfeitures of property
under this section by such officers, agents, or other per-
sons as may be authorized to be designated for that pur-
pose by the Attorney General unless such duties arise from
seizures and forfeitures effected by any customs officer.
‘‘(f) DISPOSITION OF FORFEITED PROPERTY.—
‘‘(1) METHODS.—Whenever property is for-
feited under this section the Attorney General
may—
‘‘(A) retain the property for official use or,
in the manner provided with respect to trans-
fers under section 1616a of title 19, United
States Code, transfer the property to any Fed-
eral agency or to any State or local law enforce-
ment agency which participated directly in the
seizure or forfeiture of the property;
‘‘(B) sell any forfeited property which is
not required to be destroyed by law and which
is not harmful to the public;
‘‘(C) require that the General Services Ad-
ministration take custody of the property and
dispose of it in accordance with law; or
‘‘(D) transfer the forfeited personal prop-
erty or the proceeds of the sale of any forfeited
personal or real property to any foreign country
which participated directly or indirectly in a sei-
zure or forfeiture of the property, if such a
transfer—
‘‘(i) has been agreed to by the Sec-
retary of State;
‘‘(ii) is authorized in an international
agreement between the United States and
the foreign country; and
‘‘(iii) is made to a country which, if
applicable, has been certified under section
2291(h) of title 22, United States Code.
‘‘(2) USE
OF
PROCEEDS
FROM
SALES.—The
proceeds from any sale under paragraph (1)(B) and
any monies forfeited under this section shall be
used—
‘‘(A) first, to reimburse the Department of
Justice for the costs incurred by the Depart-
ment to initiate and complete the forfeiture pro-
ceeding that caused the sale that produced such
proceeds;
‘‘(B) second, to reimburse the Department
of Agriculture for any costs incurred by the De-
partment to assist the Department of Justice to
initiate or complete such proceeding; and
‘‘(C) third, to reimburse the State agency
for any costs incurred by the State agency to
assist the Department of Justice, or the De-
partment of Agriculture, to initiate or complete
such proceeding.
The amount remaining, if any, shall be available to
the Secretary to carry out this Act.
‘‘(3) TRANSFER OF PROPERTY.—The Attorney
General shall ensure that any property transferred
to a State or local law enforcement agency under
paragraph (1)(A)—
‘‘(A) has a value that bears a reasonable
relationship to the degree of direct participation
of the State or local law enforcement agency in
the law enforcement effort resulting in the for-
feiture, taking into account the total value of all
United States and for good cause shown, stay the civil
forfeiture proceeding.
‘‘(j) VENUE.—In addition to the venue provided for
in section 1395 of title 28, United States Code, or any
other provision of law, in the case of property of a defend-
ant charged with a violation that is the basis for forfeiture
of the property under this section, a proceeding for forfeit-
ure under this section may be brought in the judicial dis-
trict in which the defendant owning such property is found
or in the judicial district in which the criminal prosecution
is brought.
‘‘(k) AGREEMENT BETWEEN ATTORNEY GENERAL
AND POSTAL SERVICE
FOR PERFORMANCE
OF FUNC-
TIONS.—The functions of the Attorney General under this
section shall be carried out by the Postal Service pursuant
to such agreement as may be entered into between the
Attorney General and the Postal Service.
‘‘(l) EXPEDITED PROCEDURES FOR PROPERTY OF
RETAIL FOOD STORES
AND WHOLESALE FOOD CON-
CERNS.—
‘‘(1) PETITION FOR EXPEDITED DECISION; DE-
TERMINATION.—(A) A retail food store or wholesale
food concern may petition the Attorney General for
an expedited decision with respect to property used
to carry out its food sale operations if such property
is seized under this section and if such store or such
concern filed the requisite claim and cost bond in
the manner provided in section 1608 of title 19,
United States Code. The Attorney General shall
make a determination on a petition under this sub-
section expeditiously, including a determination of
any rights or defenses available to the petitioner. If
the Attorney General does not grant or deny a peti-
tion under this subsection within 20 days after the
date on which the petition is filed, such property
shall be returned to the owner pending further for-
feiture proceedings.
‘‘(B) With respect to a petition under this sub-
section, the Attorney General may—
‘‘(i) deny the petition and retain possession
of such property;
‘‘(ii) grant the petition, move to dismiss
the forfeiture action, if filed, and promptly re-
lease such property to such store or such con-
cern; or
‘‘(iii) advise the petitioner that there is not
adequate information available to determine the
petition and promptly release such property to
such store or such concern.
‘‘(C) Release of property under subparagraph
(A) or (B)(iii) does not affect any forfeiture action
with respect to such property.
‘‘(D) The Attorney General shall prescribe reg-
ulations to carry out this subsection.
‘‘(2) WRITTEN NOTICE OF PROCEDURES.—At
the time of seizure, the officer making the seizure
shall furnish to any person in possession of such
property a written notice specifying the procedures
under this subsection. At the earliest practicable op-
portunity after determining ownership of the seized
property, the head of the department or agency that
seizes such property shall furnish a written notice to
such store or such concern, and other interested par-
ties (including lienholders), of the legal and factual
basis of the seizure.
‘‘(3) COMPLAINT FOR FORFEITURE.—Not later
than 60 days after a claim and cost bond have been
filed under section 1608 of title 19, United States
Code, regarding property seized under this section,
the Attorney General shall file a complaint for for-
feiture in the appropriate district court, except that
the court may extend the period for filing for good
cause shown or on agreement of the parties. If the
Attorney General does not file a complaint as speci-
fied in the preceding sentence, the court shall order
the return of such property to such store or such
concern and the forfeiture may not take place.
‘‘(4) BOND FOR RELEASE OF PROPERTY USED
IN FOOD SALE OPERATION.—Any retail food store or
wholesale food concern may obtain release of prop-
erty used to carry out its food sale operations by
providing security in the form of a bond to the At-
torney General in an amount equal to the value of
such property unless the Attorney General deter-
mines such property should be retained (A) as con-
traband, (B) as evidence of a violation of law, or (C)
because, by reason of design or other characteristic,
such property is particularly suited for use in illegal
activities.’’.
(b) CONFORMING AMENDMENT.—Section 15 of the
Food Stamp Act of 1977 (7 U.S.C. 2024) is amended by
striking subsection (g).
SEC. 5. EFFECTIVE DATES.
(a) REGULATIONS.—The amendment made by sec-
tions 2 and 3 shall take effect 60 days after the date of
the enactment of this Act.
(b) LAUNDERING AND FORFEITURE.—The amend-
ments made by section 4 shall take effect on the date of
the enactment of this Act.
Æ