[Congressional Record Volume 140, Number 27 (Friday, March 11, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 11, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              FOOD STAMP PROGRAM IMPROVEMENTS ACT OF 1994

  Mr. McCONNELL. Mr. President, around 213,000 retail stores nationwide 
are authorized to redeem food stamp coupons issued under the Food Stamp 
Program, a program which hands out over $20 billion in Federal benefits 
to 26 million Americans a year. Mr. President, those numbers are 
staggering, and demonstrate the enormity of our Nation's largest food 
assistance program. I have spoken on this floor in the past about 
concerns with the fraud and trafficking abuses that occur within this 
program, and it is with these interests in mind that I rise today to 
address certain provisions of the Food Stamp Program Improvements Act 
of 1994.
  I want to thank my colleagues in both the House and Senate, including 
Senators Pressler and Leahy and Congressmen Roberts and Stenholm, for 
including a key provision from my bill, the Food Stamp Anti-Fraud Act, 
that addresses the use of information provided to USDA by retail food 
stores. Currently, the Department of Agriculture is hampered by 
restrictions in law that do not allow them to fully investigate 
suspected fraud and trafficking abuses in the Food Stamp Program. 
Section 203 of the Food Stamp Program Improvements Act will improve the 
ability of USDA to pursue suspected cases of abuse by expanding the use 
of information provided by retailers to federal and state law 
enforcement agencies. This provision will go far in enhancing our 
government's ability to weed out fraudulent activities by retail stores 
in the Food Stamp Program.
  The Food Stamp Program Improvements Act also changes the definition 
of a retail food store and requires the Department to periodically 
provide information to the stores on eligibility criteria. Mr. 
President, the management of the retail food stores participating in 
the program is a critical element in the Department's overall efforts 
to fight fraud and maintain the integrity of the Food Stamp Program.
  I asked my colleagues to include in this bill a request that the 
Secretary monitor and report back to Congress on the impact that these 
changes have on the Food Stamp Program, and I appreciate their 
agreement to include this provision. By asking the Department to inform 
us of the stores coming on or leaving the program, and by asking the 
Department to monitor and assess the adequacy of the information they 
are providing to both field staff and retail stores, it is my hope that 
we will be able to evaluate the ramifications that the changes brought 
about by this bill have on the Food Stamp Program.
  Previous audits by USDA's Office of Inspector General indicate that 
ineligible stores participate in the program on a widespread basis, 
that the Food and Nutrition Service provided conflicting information to 
stores on eligibility criteria, and that stores often erred in their 
eligibility determinations. We have attempted to address some of these 
concerns through the Food Stamp Program Improvements Act, and it is my 
sincere hope that these directives will tighten up the oversight of 
retail food stores. I look forward to continuing to work with my 
colleagues on efforts to reduce the fraud in our nation's largest food 
assistance program.
  So the bill (S. 1926) was deemed read three times and passed, as 
follows.

                                S. 1926

       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 Program 
     Improvements Act of 1994''.
      TITLE I--REPORTING AND STAGGERED ISSUANCE FOR HOUSEHOLDS ON 
                              RESERVATIONS

     SEC. 101. BUDGETING AND MONTHLY REPORTING ON RESERVATIONS.

       (a) In General.--Section 6(c)(1) of the Food Stamp Act of 
     1977 (7 U.S.C. 2015(c)(1)) is amended--
       (1) in subparagraph (A)--
       (A) by striking clause (ii); and
       (B) by redesignating clauses (iii) and (iv) as clauses (ii) 
     and (iii), respectively; and
       (2) by adding at the end the following new subparagraph:
       ``(C) A State agency may require periodic reporting on a 
     monthly basis by households residing on a reservation only 
     if--
       ``(i) the State agency reinstates benefits, without 
     requiring a new application, for any household residing on a 
     reservation that submits a report not later than 1 month 
     after the end of the month in which benefits would otherwise 
     be provided;
       ``(ii) the State agency does not delay, reduce, suspend, or 
     terminate the allotment of a household that submits a report 
     not later than 1 month after the end of the month in which 
     the report is due;
       ``(iii) on the date of enactment of this subparagraph, the 
     State agency requires households residing on a reservation to 
     file periodic reports on a monthly basis; and
       ``(iv) the certification period for households residing on 
     a reservation that are required to file periodic reports on a 
     monthly basis is 2 years, unless the State demonstrates just 
     cause to the Secretary for a shorter certification period.''.
       (b) Conforming Amendments.--
       (1) The second sentence of section 3(c) of such Act (7 
     U.S.C. 2012(c)) is amended by striking ``For'' and inserting 
     ``Except as provided in section 6(c)(1)(C), for''.
       (2) Section 5(f)(2)(C) of such Act (7 U.S.C. 2014(f)(2)(C)) 
     is amended by striking ``clauses (i), (ii), (iii), and (iv)'' 
     and inserting ``clauses (i), (ii), and (iii)''.

     SEC. 102. STAGGERED ISSUANCES ON RESERVATIONS.

       Section 7(h)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
     2016(h)(1)) is amended by striking the second sentence and 
     inserting the following new sentence: ``Upon the request of 
     the tribal organization that exercises governmental 
     jurisdiction over the reservation, the State agency shall 
     stagger the issuance of benefits for eligible households 
     located on reservations for at least 15 days of a month.''.

     SEC. 103. GAO STUDY AND REPORT ON ADMINISTRATION OF FOOD 
                   STAMP PROGRAM BY TRIBAL ORGANIZATIONS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of the feasibility and desirability 
     of--
       (1) increasing the opportunity for a tribal organization of 
     an Indian tribe to administer the food stamp program 
     established under the Food Stamp Act of 1977 (7 U.S.C. 2011 
     et seq.) in connection with members of the tribe by--
       (A) modifying the requirements established under sections 
     3(n)(2) and 11(d) of such Act (7 U.S.C. 2012(n)(2) and 
     2020(d));
       (B) modifying or eliminating the cost-sharing requirements 
     established for the tribal organization under section 16(a) 
     of such Act (7 U.S.C. 2025); and
       (C) taking such other actions as the Comptroller General 
     considers appropriate; and
       (2) permitting the tribal organization to establish 
     reasonable and appropriate requirements with respect to 
     issuance, reporting, and certification requirements under the 
     food stamp program for members of the tribe.
       (b) Report.--Not later than December 1, 1994, the 
     Comptroller General shall report the results of the study 
     required under subsection (a) to the Committee on 
     Agriculture, and the Subcommittee on Native American Affairs 
     of the Committee on Natural Resources, of the House of 
     Representatives, and the Committee on Agriculture, Nutrition, 
     and Forestry, and the Committee on Indian Affairs, of the 
     Senate, so that the results of the study may be considered by 
     the Committee on Agriculture of the House of Representatives 
     and the Committee on Agriculture, Nutrition, and Forestry of 
     the Senate during the reauthorization of the food stamp 
     program during 1995.

     SEC. 104. CONFORMING AMENDMENTS.

       (a) Section 908 of the Food, Agriculture, Conservation, and 
     Trade Act Amendments of 1991 (Public Law 102-237; 7 U.S.C. 
     2015 note) is repealed.
       (b) Section 6(c)(4) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)(4)) is amended by striking ``Any'' and inserting 
     ``Except as provided in paragraph (1)(C), any''.
    TITLE II--ACCESS TO RETAIL FOOD STORES BY FOOD STAMP HOUSEHOLDS

     SEC. 201. FOOD STAMP ACT DEFINITIONS.

       Section 3 of the Food Stamp Act of 1977 (7 U.S.C. 2012) is 
     amended--
       (1) in subsection (k)--
       (A) by striking ``means (1) an establishment'' and all that 
     follows through ``spices, (2) an establishment'' and 
     inserting the following: ``means--
       ``(1) an establishment or house-to-house trade route that 
     sells food for home preparation and consumption and--
       ``(A) offers for sale, on a continuous basis, a variety of 
     foods in each of the 4 categories of staple foods specified 
     in subsection (u)(1), including perishable foods in at least 
     2 of the categories; or
       ``(B) has over 50 percent of the total sales of the 
     establishment or route in staple foods,
     as determined by visual inspection, sales records, purchase 
     records, counting of stockkeeping units, or other inventory 
     or accounting recordkeeping methods that are customary or 
     reasonable in the retail food industry;
       ``(2) an establishment'';
       (B) by striking ``section, (3) a store'' and inserting the 
     following: ``section;
       ``(3) a store''; and
       (C) by striking ``section, and (4) any private'' and 
     inserting the following: ``section; and
       ``(4) any private''; and
       (2) by adding at the end the following new subsection:
       ``(u)(1) Except as provided in paragraph (2), `staple 
     foods' means foods (as defined in subsection (g)) in the 
     following categories:
       ``(A) Meat, poultry, or fish.
       ``(B) Bread or cereals.
       ``(C) Vegetables or fruits.
       ``(D) Dairy products.
       ``(2) `Staple foods' do not include accessory food items, 
     such as coffee, tea, cocoa, carbonated and uncarbonated 
     drinks, candy, condiments, and spices.''.

     SEC. 202. PERIODIC NOTICE.

       Paragraph (2) of section 9(a) of the Food Stamp Act of 1977 
     (7 U.S.C. 2018(a)(2)) is amended to read as follows:
       ``(2) The Secretary shall issue regulations providing for--
       ``(A) the periodic reauthorization of retail food stores 
     and wholesale food concerns; and
       ``(B) periodic notice to participating retail food stores 
     and wholesale food concerns of the definitions of `retail 
     food store', `staple foods', `eligible foods', and 
     `perishable foods'.''.

     SEC. 203. USE AND DISCLOSURE OF INFORMATION PROVIDED BY 
                   RETAIL FOOD STORES AND WHOLESALE FOOD CONCERNS.

       Section 9(c) of the Food Stamp Act of 1977 (7 U.S.C. 
     2018(c)) is amended--
       (1) in the second sentence, by inserting after ``disclosed 
     to and used by'' the following: ``Federal law enforcement and 
     investigative agencies and law enforcement and investigative 
     agencies of a State government for the purposes of 
     administering or enforcing this Act or any other Federal or 
     State law and the regulations issued under this Act or such 
     law, and'';
       (2) by inserting after the second sentence the following 
     new sentence: ``Any person who publishes, divulges, 
     discloses, or makes known in any manner or to any extent not 
     authorized by Federal law (including a regulation) any 
     information obtained under this subsection shall be fined not 
     more than $1,000 or imprisoned not more than 1 year, or 
     both.''; and
       (3) in the last sentence, by striking ``Such purposes shall 
     not exclude'' and inserting the following: ``The regulations 
     shall establish the criteria to be used by the Secretary to 
     determine whether the information is needed. The regulations 
     shall not prohibit''.

     SEC. 204. DEMONSTRATION PROJECTS TESTING ACTIVITIES DIRECTED 
                   AT TRAFFICKING IN COUPONS.

       Section 17 of the Food Stamp Act of 1977 (7 U.S.C. 2026) is 
     amended by adding at the end the following new subsection:
       ``(l) The Secretary shall use up to $4,000,000 of the funds 
     provided in advance in appropriations Acts for projects 
     authorized by this section to conduct demonstration projects 
     in which State or local food stamp agencies test innovative 
     ideas for working with State or local law enforcement 
     agencies to investigate and prosecute coupon trafficking.''.

     SEC. 205. CONTINUING ELIGIBILITY.

       An establishment or house-to-house trade route that is 
     otherwise authorized to accept and redeem coupons under the 
     Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.) on the day 
     before the date of enactment of this Act shall be considered 
     to meet the definition of ``retail food store'' in section 
     3(k) of such Act (7 U.S.C. 2012(k)) (as amended by section 
     201) until the earlier of--
       (1) the periodic reauthorization of the establishment or 
     route; or
       (2) such time as the eligibility of the establishment or 
     route for continued participation in the food stamp program 
     is evaluated for any reason.

     SEC. 206. REPORT ON IMPACT ON RETAIL FOOD STORES.

       Not later than 18 months after the date of enactment of 
     this Act, the Secretary of Agriculture shall prepare and 
     submit to the Committee on Agriculture of the House of 
     Representatives and the Committee on Agriculture, Nutrition, 
     and Forestry of the Senate a report on the impact of the 
     amendments made by sections 201 and 202 on the involvement of 
     retail food stores in the food stamp program established 
     under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), 
     including a description of--
       (1) the numbers and types of stores that were newly 
     authorized to participate in the food stamp program after 
     implementation of the amendments;
       (2) the numbers and types of stores that were withdrawn 
     from the food stamp program after implementation of the 
     amendments;
       (3) the procedures used by the Secretary, and the adequacy 
     of the procedures used, to determine the eligibility of 
     stores to participate in the food stamp program and to 
     authorize and reauthorize the stores to participate in the 
     food stamp program;
       (4) the adequacy of the guidance provided by the Secretary 
     to retail food stores concerning--
       (A) the definitions of `retail food store', `staple foods', 
     `eligible foods', and `perishable foods' for purposes of the 
     food stamp program; and
       (B) eligibility criteria for stores to participate in the 
     food stamp program; and
       (5) an assessment of whether the amendment to the 
     definition of ``retail food store'' under section 3(k) of 
     such Act (as amended by section 201(1)) has had an adverse 
     effect on the integrity of the food stamp program.

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