[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 992 Introduced in House (IH)]







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 forfeiture 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 provide for the forfeiture of proceeds and property 
 resulting from certain violations of such Act; and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Food Stamp Trafficking 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 CONCERNS.

    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 subsection (b) or (c) of section 15, the 
following shall be subject 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, transferred, 
        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, vehicles, or 
        vessels, which are used, or are intended for use, to transport, 
        or in any manner to facilitate the transportation, sale, 
        receipt, possession, or concealment 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 omission established by 
                the owner thereof to have been committed or omitted by 
                any person other than such owner while such conveyance 
                was unlawfully 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 established by that owner 
                to have been committed, or omitted without the 
                knowledge, consent, or willful 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, securities, or 
        other things of value furnished or intended to be furnished by 
        any person in exchange for coupons 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 
        violation of subsection (b) or (c) of section 15, except that 
        no property shall be forfeited under this paragraph, 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 appurtenances or improvements, 
        which is used, or intended to be used, in any manner or part, 
        to commit, 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 knowledge 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; Issuance of Warrant Authorizing Seizure.--Any 
property subject to forfeiture to the United States under subsection 
(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 forfeiture under 
        subsection (a).
In the event of seizure pursuant to paragraph (2), proceedings 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 
decrees of the court or the official having jurisdiction thereof. 
Whenever property is seized under this section, the Attorney 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 Administration take 
        custody of the property and remove it, if practicable, to an 
        appropriate location for disposition in accordance with law.
    ``(e) Other Laws and Proceedings Applicable.--The provisions of law 
relating to--
            ``(1) the seizure, summary and judicial forfeiture, and 
        condemnation of property for violation of the customs laws;
            ``(2) the disposition of such property or the proceeds from 
        the sale thereof;
            ``(3) the remission or mitigation of such forfeitures; and
            ``(4) the compromise of claims;
shall apply to seizure and forfeitures incurred, or alleged to have 
been incurred, under this section, insofar as applicable and not 
inconsistent with the provisions hereof, except 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 
performed with respect to seizures and forfeitures of property under 
this section by such officers, agents, or other persons as may be 
authorized to be designated for that purpose 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 forfeited under this 
        section the Attorney General may--
                    ``(A) retain the property for official use or, in 
                the manner provided with respect to transfers under 
                section 1616a of title 19, United States Code, transfer 
                the property to any Federal agency or to any State or 
                local law enforcement 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 
                Administration take custody of the property and dispose 
                of it in accordance with law; or
                    ``(D) transfer the forfeited personal property or 
                the proceeds of the sale of any forfeited personal or 
                real property to any foreign country which participated 
                directly or indirectly in a seizure or forfeiture of 
                the property, if such a transfer--
                            ``(i) has been agreed to by the Secretary 
                        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 Department to initiate 
                and complete the forfeiture proceeding that caused the 
                sale that produced such proceeds;
                    ``(B) second, to reimburse the Department of 
                Agriculture for any costs incurred by the Department 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 Department 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 forfeiture, taking 
                into account the total value of all property forfeited 
                and the total law enforcement effort with respect to 
                the violation of law on which the forfeiture is based; 
                and
                    ``(B) is not so transferred to circumvent any 
                requirement of State law that prohibits forfeiture or 
                limits use or disposition of property forfeited to 
                State or local agencies.
    ``(g) Forfeiture and Destruction of Coupons.--All coupons that are 
used, transferred, acquired, altered, possessed, or presented or caused 
to be presented for payment or redemption in violation of subsection 
(b) or (c) of section 15 shall be deemed contraband, and seized and 
summarily forfeited to the United States. Similarly, all coupons which 
are seized or come into the possession of the United States, the owners 
of which are unknown, shall be deemed contraband and summarily 
forfeited to the United States.
    ``(h) Vesting of Title in United States.--All right, title, and 
interest in property described in subsection (a) shall vest in the 
United States upon commission of the act giving rise to forfeiture 
under this section.
    ``(i) Stay of Civil Forfeiture Proceedings.--The filing of an 
indictment or information alleging a violation of section 15 which is 
also related to a civil forfeiture proceeding under this section shall, 
upon motion of the 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 defendant charged with a violation that is the 
basis for forfeiture of the property under this section, a proceeding 
for forfeiture under this section may be brought in the judicial 
district 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 Functions.--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 Concerns.--
            ``(1) Petition for expedited decision; determination.--(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 subsection expeditiously, including a determination of any 
        rights or defenses available to the petitioner. If the Attorney 
        General does not grant or deny a petition 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 
        forfeiture proceedings.
            ``(B) With respect to a petition under this subsection, 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 release such 
                property to such store or such concern; 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 regulations 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 opportunity 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 parties (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 forfeiture 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 specified 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 property used to carry out its food sale 
        operations by providing security in the form of a bond to the 
        Attorney General in an amount equal to the value of such 
        property unless the Attorney General determines such property 
        should be retained (A) as contraband, (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 sections 2 and 3 shall take 
effect 60 days after the date of the enactment of this Act.
    (b) Laundering and Forfeiture.--The amendments made by section 4 
shall take effect on the date of the enactment of this Act.
                                 <all>