Emergency Food Stamp Vendor Accountability Act
PL 94-339 (S.2853), enacted 07/05/1976

PUBLIC LAW 94-339—JULY 5, 1976 
90 STAT. 799 
Public Law 94-339 
94th Congress 
An Act 
To amend the Food Stamp Act of 1964 to insure a proper level of accountability 
on the part of food stamp vendors. 
Be it enacted iy the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Emergency Food Stamp Vendor Accountability Act 
of 1976". 
SEC. 2. Section 7(d) of the Food Stamp Act of 1964, as amended, 
is amended by inserting " (1)" immediately after "(d)", and adding at 
the end thereof new paragraphs (2) through (7) as follows: 
"(2) (A) The Secretary shall by regulation prescribe the manner in 
which funds derived from the distribution of coupons (charges made 
for coupon allotments) shall be deposited by coupon vendors. The 
regulations shall contain provisions requiring that coupon vendors 
promptly deposit such funds in the manner prescribed by the Secre-
tary: Provided, That such regulations shall, at a minimum, require 
that such deposits be made weekly: Provided further. That such reg-
ulations shall, at a minimum, require that upon the accumulation of 
a balance on hand of $1,000 or more, such deposits be made within 
two banking days following the accumulation of such amount. 
"(B) Any coupon vendor, or any officer, employee, or agent thereof, 
convicted of violating the regulations issued under subparagraph (A) 
of this paragraph shall be fined not more than $3,000, or imprisoned 
not more than one year, or both. 
"(3) (A) Coupon vendors receiving funds derived from the distri-
bution of coupons (charges made for coupon allotments) shall be 
deemed to be receiving such funds as fiduciaries of the Federal Gov-
ernment, and such coupon vendors shall immediately set aside all such 
funds as funds of the Federal Government. Funds derived from the 
distribution of coupons (charges made for coupon allotments) shall 
not be used, prior to the deposit of such funds in the manner prescribed 
by the Secretary, for the benefit of any person, partnership, corpora-
tion, association, organization, or entity other than the Federal 
Government. 
"(B) Any coupon vendor, or any officer, employee, or agent thereof, 
convicted of violating subparagraph (A) of this paragraph shall be 
fined not more than $10,000, or a sum equal to the amount of funds 
involved in the violation, whichever is the greater, or imprisoned not 
more than ten years, or both: Provided, That if the amount of such 
funds is less than $1,000, such vendor shall be fined not more than 
$3,000, or imprisoned not more than one year, or both. 
"(4) (A) The Secretary shall by regulation require that upon the 
deposit, in the manner prescribed by the Secretary, of funds derived 
from the distribution of coupons (charges made for coupon allot-
ments), coupon vendors shall immediately send a written notice to the 
State agency, accompanied by an appropriate voucher, confirming 
such deposit. In addition to such other information deemed by the 
Secretary to be appropriate, such regulations shall require that the 
notice contain— 
" (i) the name and address of the coupon vendor; 
July 5, 1976 
[S. 2853] 
Emergency Fc»od 
Stamp Vendoi' 
Accountability 
Act of 1976. 
7 u s e 2011 note. 
Disposition of 
funds, 
regulations. 
7 u s e 2016. 
Penalty. 
Penalty. 
Notice of deposit. 
89-194 O—78—pt. 1 
54 
90 STAT. 800 
PUBLIC LAW 94-339—JULY 5, 1976 
Penalty. 
Penalty. 
Report to 
Secretary. 
Contents. 
Penalty. 
Reports to 
Secretary. 
7 use 2015. 
"(ii) the total receipts of such coupon vendor derived from the 
distribution of coupons (charges made for coupon allotments) 
during the deposit period; 
"(iii) the amount of the deposit; 
" (iv) the name and address of the depository; and 
"(v) an oath, or affirmation signed bj the coupon vendor, or 
in the case of a corporation or other entity not a natural person, 
by an appropriate official of the coupon vendor, certifying that 
the information contained in such notice is true and correct to the 
best of such person's knowledge and belief. 
" (B) Any coupon vendor, or any officer, employee, or agent thereof, 
convicted of failing to provide the notice required under subparagraph 
(A) of this paragraph shall be fined not more than $3,000, or impris-
oned not more than one year, or both. 
"(C) Any coupon vendor, or any officer, employee, or agent thereof, 
who knowingly provides false information in any notice required 
under subparagraph (A) of this paragraph shall be fined not more 
than $10,000, or imprisoned not more than ten years, or both. 
"(5) (A) The Secretary shall by regulation require each coupon 
vendor at intervals prescribed by the Secretary, but not less often 
than monthly, to send to the Secretary, or his designee, a written report 
of the vendor's operations during such period under the food stamp 
program. In addition to such other information deemed by the Secre-
tary to be appropriate, the regulations shall require that the report 
contain—• 
"(i) the name and address of the coupon vendor; 
"(ii) the total receipts of the coupon vendor derived from the 
distribution of coupons (charges made for coupon allotments) 
during the report period; 
" (iii) the total amount of deposits made by the vendor of funds 
derived from the distribution of coupons (charges made for 
coupon allotments) during such period; 
"(iv) the name and address of each depository receiving such 
funds from such vendor; and 
"(v) an oath, or affirmation, signed by the coupon vendor, or 
in the case of a corporation or other entity not a natural person, 
by an appropriate official of the coupon vendor, certifying that the 
information contained in the report is true and correct to the best 
of such person's knowledge and belief. 
"(B) Any coupon vendor, or any officer, emploj^ee, or agent there-
of, convicted of failing to provide any notice required under sub-
paragraph (A) of this paragraph shall be fined not more than $3,000, 
or imprisoned not more than one year, or both. 
"(C) Any coupon vendor, or any officer, employee, or agent there-
of, who knowingly provides false information in any notice required 
under subparagraph (A) of this paragraph shall be fined not more 
than $10,000, or imprisoned not more than ten years, or both. 
"(6) The Secretary may by regulation require State agencies to 
provide periodic reports to the Secretary, or his designee, containing 
a consolidation of the respective coupon vendor's notices to such State 
agencies at such intervals as the Secretary in his discretion deems 
appropriate. 
"(7) The Secretary and the United States Postal Service shall 
jointly arrange for the prompt deposit of funds collected by the Postal 
Service on behalf of a State from charges made for coupon 
allotments.". 
SEC. 3. Section 6 of the Food Stamp Act of 1964, as amended, is 
amended by redesignatins: subsections (b) and (c) as subsections (d) 
PUBLIC LAW 94-339—JULY 5, 1976 
90 STAT. 801 
and (e), respectively, and inserting new subsections (b) and (c) as 
follows: 
"(b) (1) The Secretary shall by regulation develop an appropriate 
procedure for determining and monitoring the level of coupon inven-
tories in the hands of coupon vendors for the purpose of insuring that 
such inventories are at proper levels (taking into consideration the 
historical and projected volume of coupon distribution by such ven-
dors). Any such regulations shall contain procedures to insure that 
coupon inventories in the hands of coupon vendors are not in excess 
of the reasonable needs of such vendors taking into consideration the 
ease and feasibility of resupplying such coupon inventories. The Sec-
retary may, at his discretion, require periodic reports from such cou-
pon vendors respecting the level of such inventories. 
"(2) Any coupon vendor, or any officer, employee, or agent thereof, 
convicted of failing to provide a report required under paragraph (1) 
of this subsection shall be fined not more than $3,000, or imprisoned 
not more than one year, or both. 
"(3) Any coupon vendor, or any officer, employee, or agent thereof, 
who knowingly provides false information in any report required 
under paragraph (1) of this subsection shall be fined not more than 
$10,000, or imprisoned not more than ten years, or both. 
"(c)(1) The Secretary shall by regulation prescribe appropriate 
procedures for the delivery of coupons to coupon vendors and for the 
custody, care, control, and storage of coupons in the hands of coupon 
vendors in order to secure such coupons against theft, embezzlement, 
misuse, loss, or destruction. 
"(2) Any coupon vendor, or any officer, employee, or agent thereof, 
convicted of violating any regulations issued under paragraph (1) of 
this subsection shall be fined not more than $3,000, or imprisoned not 
more than one year, or both.". 
SEC. 4. Section 3 of the Food Stamp Act of 1964, as amended, is 
amended by adding at the end thereof a new subsection (o) as follows: 
"(o) The term 'coupon vendor' means any person, partnership, 
corporation, organization, political subdivision, or other entity with 
which a State agency has contracted for, or to which it has delegated 
administrative responsibility in connection with, the issuance of cou-
pons to households.". 
Approved July 5, 1976. 
Coupon 
inventories. 
Reports to 
Secretary. 
Penalty. 
Procedures. 
Penalty. 
"Coupon 
vendor." 
7 u s e 2012. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-1282 (Comm. on Agriculture). 
SENATE REPORT No. 94-714 (Comm. on Agriculture and Forestry). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Apr. 8, considered and passed Senate. 
June 22, considered and passed House. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 28: 
July 6, Presidential statement.