[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1093 Introduced in House (IH)]







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''.

    Be it enacted by the Senate and House of Representatives 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 authorized to issue regulations establishing 
specific time periods 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 following 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 coupons denied or that 
has such an approval withdrawn on the basis of business integrity and 
reputation cannot submit a new application for approval. Such periods 
shall reflect 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 following new 
        sentence: ``The regulations may require retail food stores and 
        wholesale food concerns to provide 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 verified.''.

  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 
approval to accept and redeem coupons denied because it does not meet 
criteria for approval established by the Secretary 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 
established through on-site investigations, inconsistent redemption 
data or evidence obtained through transaction reports under electronic 
benefit transfer systems.''.

  authority to suspend stores violating program requirements pending 
                   administrative and judicial 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 requirements. Such suspension may coincide with 
the period of a review as provided in section 14 of this Act. The 
Secretary 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 ``suspended,'';
            (2) inserting immediately before the period at the end of 
        the fifth sentence ``: Provided, That notwithstanding any other 
        provision of law, in the case of the suspension of a retail 
        food store or wholesale food concern pursuant to section 12(a) 
        of this Act, such suspension shall remain in effect pending any 
        administrative or judicial review of the proposed 
        disqualification action and the period of suspension shall be 
        deemed a part of any period of disqualification which is 
        imposed.''; and
            (3) striking the last sentence.

disqualification of retailers who are disqualified from the wic program

    Sec. 107. Section 12 of the Food Stamp Act of 1977 (7 U.S.C. 2021) 
is amended by adding the following new subsection:
    ``(g) The Secretary shall issue regulations providing criteria for 
the disqualification of approved retail food stores and wholesale food 
concerns that are otherwise disqualified from accepting benefits under 
the Special Supplemental Nutrition Program for Women, Infants and 
Children (WIC) authorized under section 17 of the Child Nutrition Act 
of 1966. Such disqualification (1) shall be for the same period as the 
disqualification from the WIC Program, (2) may begin at a later date, 
and (3) notwithstanding the provisions of section 14 of this Act, shall 
not be subject to administrative or judicial review.''.

  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:
    ``(h)(1) Civil Forfeiture for Food Stamp Benefit 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 commit, 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 applicable and not inconsistent 
        with the provisions of this subsection.
    ``(2) Criminal Forfeiture for Food Stamp Benefit Violations.--
            ``(A)(i) Any person convicted of violating subsection (b) 
        or subsection (c) of this section involving food stamp benefits 
        having an aggregate value of not less than $5,000, shall 
        forfeit to the United States, irrespective of any State law--
                    ``(I) any food stamp benefits and any property 
                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 subsection.
            ``(B) All food stamp benefits and any property subject to 
        forfeiture under this subsection, any seizure and disposition 
        thereof, and any administrative or judicial proceeding relating 
        thereto, shall be governed 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 specified in 
subsection (g) of this section.
    ``(4) The Secretary may prescribe such rules and regulations as may 
be necessary to carry out this subsection.''.

    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 Reform 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 investigative responsibilities, or State 
        agencies that have the responsibility for administering the 
        Special Supplemental Nutrition Program for Women, Infants 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) immediately 
        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 of 1994 (Public Law 103-296; 108 Stat. 1464) 
is amended by--
            (1) inserting in subparagraph (A) immediately after 
        ``instrumentality of the United States'' the following: ``, or 
        State government officers and employees with law enforcement or 
        investigative responsibilities, or State agencies that have the 
        responsibility for administering the Special Supplemental 
        Nutrition Program for Women, Infants and Children (WIC)'';
            (2) inserting in the last sentence of subparagraph (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 certificate, authorization cards, 
cash or checks issued in lieu of coupons or access devices, including, 
but not limited to, electronic benefit transfer cards and personal 
identification numbers''.

                     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 inserting 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 inserting 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 thereof the 
        following: ``or refunds of Federal taxes as authorized 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--
            (1) striking ``officers and employees'' in paragraph 
        (10)(A) and inserting in lieu thereof ``officers, employees or 
        agents, including State agencies''; and
            (2) striking ``officers and employees'' in paragraph 
        (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.
                                 <all>