I 111th CONGRESS 1st Session H. R. 1609 IN THE HOUSE OF REPRESENTATIVES March 19, 2009 Mr. Kind (for himself and Mr. Flake) introduced the following bill; which was referred to the Committee on Agriculture, and in addition to the Committee on Ways and Means, 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 To amend the Food Security Act of 1985 to require the Administrator of the Internal Revenue Service to verify income for purposes of determining the eligibility of persons for certain Department of Agriculture payments and benefits, and for other purposes.

1.

Amendments to require new penalties and Administrator verification of eligibility for subsidy programs

(a)

Addition of repayment penalty

Section 1001B of the Food Security Act of 1985 (7 U.S.C. 1308–2) is amended— (1)in subsection (b), by striking the Secretary may for a period not to exceed 5 crop years deny the issuance of payments to the person or legal entity. and inserting the Secretary shall for a period not less than 5 years, or permanently, deny the issuance of payments to the person or legal entity. ; (2)by redesignating subsections (c) through (e) as subsections (d) through (f), respectively; and (3)after subsection (b), by inserting the following new subsection: (c)

Repayment

If a person or legal entity is determined under subsection (d) of section 1001D to be ineligible for benefits or payments, the person or legal entity shall reimburse the Secretary for the full amount of any benefit or payment described in subsection (b) of such section that the person or legal entity has already received while the person or entity was ineligible. . (b)

Addition of income verification and enforcement procedures

Section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308–3a) is amended by striking subsection (d) and inserting the following new subsection: (d)

Income verification and enforcement

(1)

Submission to Administrator

Within 30 days after receiving an application from a person or legal entity for a benefit described in subsection (b), the Secretary shall request the Administrator of the Internal Revenue Service (referred to in this subsection as the Administrator) to verify the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity. The request for verification shall include the following: (A)The name of the person or legal entity. (B)The social security number or employer identification number of the person or legal entity. (C)Any other information that the Secretary determines to be relevant in assisting the Administrator in verifying the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity. (2)

Administrator determination and denial of benefits

(A)

Administrator determination

Not later than 30 days after the receipt of a verification request under paragraph (1) or a request of redetermination under paragraph (3), the Administrator shall— (i)determine whether the average adjusted gross income, average adjusted gross farm income, and average adjusted gross nonfarm income of the person or legal entity is within the applicable limitations established under subsection (b); and (ii)notify the Secretary of the results of such determination. (B)

Denial of benefits

Subject to paragraph (3), if the Administrator determines under subparagraph (A) that a person or legal entity does not comply with the applicable limitations set forth in subsection (b), the Secretary shall deny the issuance of applicable payments and benefits specified in subsection (b) to the person or legal entity, under similar terms and conditions as described in section 1001B. (3)

Farm Service Agency reconsideration for ineligible applicants

(A)

Submission of evidence to Farm Service Agency

A person or legal entity subject to denial of benefits under paragraph (2) may request a reconsideration of the denial by the Farm Service Agency office serving the location in which the person or legal entity resides or operates. The person or legal entity shall submit evidence, accompanied with a certification by a certified public accountant, to support the claim that the person or legal entity satisfies the income eligibility requirements under subsection (b). (B)

Submission of evidence to Administrator

If the Farm Service Agency determines that the claim of the person or legal entity is supported by the evidence submitted under subparagraph (A), the Secretary shall submit the evidence to the Administrator for a second determination under paragraph (2)(A). (C)

Time requirement

The Farm Service Agency shall make the determination in subparagraph (B) within 30 days after the date on which the person or legal entity submits the evidence under subparagraph (A). (4)

Limitation on redetermination

A person or legal entity may not apply for more than one redetermination, as described under paragraph (3), a calendar year. .