[Congressional Record Volume 140, Number 29 (Wednesday, March 16, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: March 16, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              FOOD STAMP PROGRAM IMPROVEMENTS ACT OF 1994

  Mr. de la GARZA. Mr. Speaker, I ask unanimous consent to take from 
the Speaker's table the Senate bill (S. 1926) to amend the Food Stamp 
Act of 1977 to modify the requirements relating to monthly reporting 
and staggered issuance of coupons for households residing on Indian 
reservations, to ensure adequate access to retail food stores by food 
stamp households, and to maintain the integrity of the food stamp 
program, and for other purposes, and ask for its immediate 
consideration.
  The Clerk read the title of the Senate bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  Mr. ROBERTS. Mr. Speaker, reserving the right to object, I do so to 
yield to the distinguished chairman of the Committee on Agriculture, 
the gentleman from Texas [Mr. de la Garza], to explain the Senate bill, 
the Food Stamp Program Improvements Act of 1994.
  Mr. de la GARZA. Mr. Speaker, will the right honorable gentleman 
yield?
  Mr. ROBERTS. Mr. Speaker, I am delighted to yield to my distinguished 
colleague, the gentleman from Texas [Mr. de la Garza].
  Mr. de la GARZA. Mr. Speaker, I will be most happy to edify the 
gentleman from Kansas on the contents of the legislation.
  Mr. Speaker, this bill is basically the contents of H.R. 3436 that 
passed earlier in the session in this House, with some minor 
modifications by the Senate.
  Mr. Speaker, S. 1926 amends the Food Stamp Act to address two 
important objectives. First, it incorporates the provisions of H.R. 
3436, a bill passed by the House last November, to ensure that food 
stamp recipients continue to have adequate access to a variety of 
retail food stores to acquire nutritious foods, and to provide 
additional authority to the Secretary of Agriculture to enhance USDA's 
efforts at reducing fraud in the Food Stamp Program. Second, S. 1926 
includes provisions added by the Senate to address monthly reporting 
and food stamp issuance concerns of food stamp recipients living on 
Indian reservations.
  With respect to the first objective, this legislation will correct an 
unintended situation which threatens to eliminate the authorization for 
thousands of small retail stores to accept food stamps for food 
purchases.
  In reauthorizing food stamp retailers, the Food and Nutrition Service 
has determined that a number of small retailer establishments no longer 
meet the technical definition of retail food store in the Food Stamp 
Act, even though many have participated in the program for years.
  USDA has informed the Committee on Agriculture that these stores will 
have their authorization to participate in the Food Stamp Program 
withdrawn.
  This action threatens to deny ready access by food stamp households 
to food stores, creating an acute problem in many rural areas and in 
inner cities where there are few supermarkets. The provisions of H.R. 
3436, incorporated into S. 1926, will remedy this situation.
  Currently, the Food Stamp Act requires that an eligible retail food 
store have over 50 percent of its food sales volume in staple foods.
  S. 1926 will make a retail food store eligible to participate in the 
Food Stamp Program if it meets one or the other of the following 
conditions:
  If the store has over 50 percent of its total sales volume--not 
simply its food sales volume--in staple foods, or; if the store offers, 
on a continuous basis, a variety of food in each of four categories of 
staple foods, and sells perishable foods in at least two of these 
categories of staple foods.
  Either of these requirements will ensure that only those stores which 
sell a significant number of staple foods will be eligible to 
participate. The bill defines staple food categories as: (1) meat, 
poultry and fish; (2) bread or cereals; (3) vegetables or fruits; and 
(4) dairy products.
  The bill does not change the current prohibition on the participation 
of certain types of stores, such as those that sell only accessory 
foods, including spices, candy, soft drinks, tea, or coffee; ice cream 
vendors; and doughnut shops.
  S. 1926 requires that the Secretary of Agriculture prepare a report 
for the House Committee on Agriculture and the Senate Committee on 
Agriculture, Nutrition, and Forestry, within 18 months, on the impact 
on the Food Stamp Program of the change in the definition of retail 
food store.
  The bill also amends the Food Stamp Act to strengthen the authority 
of the Secretary to maintain program integrity. It permits the use and 
disclosure of information provided by retail food stores and wholesale 
food concerns to law enforcement and investigative agencies 
investigating abuses of the Food Stamp Act or other Federal or State 
laws.
  The bill imposes penalties on those who publish, divulge, or disclose 
any of the information obtained in such an investigation if not 
authorized by Federal law.
  S. 1926 requires that the Secretary use up to $4 million for specific 
kinds of demonstration projects. This funding is provided only to help 
State or local food stamp agencies test new ideas for working with 
State or local law enforcement agencies to investigate and prosecute 
street food stamp trafficking. Trafficking in food stamps has always 
been prohibited by the Food Stamp Act.
  S. 1926 addresses two concerns of food stamp recipients living on 
Indian reservations, those involving monthly reporting and staggered 
issuance of benefits. First, the bill prohibits a State food stamp 
agency from requiring monthly reporting of households on Indian 
reservations unless the agency:
  Is requiring such monthly reports at the time of enactment of this 
legislation; grants a grace period of 1 month after the end of the 
month in which the monthly report is normally due during which time the 
State agency does not delay, reduce, suspend, or terminate 
benefits; reinstates benefits, without requiring a new application, to 
households that file a complete report during the month following the 
grace period; and certifies monthly reporting households for 2 years, 
unless there is an approved cause for a shorter period.

  Second, these provisions affecting households living on Indian 
reservations require that, if a tribal organization requests, a State 
agency must stagger the issuance of food stamp benefits over at least 
15 days a month.
  Finally, S. 1926 requires the General Accounting Office to conduct a 
study on the feasibility and desirability of increasing the opportunity 
of Indian tribal organizations to administer the Food Stamp Program on 
Indian reservations by modifying or eliminating requirements that 
tribal organizations share in administrative costs, and permitting 
tribal organizations to establish different issuance, reporting, and 
certification requirements.
  Staff at the Congressional Budget Office has advised us that this 
bill has only insignificant costs and savings, and is therefore budget 
neutral.
  Last November, because of difficulty in finding a compromise on the 
issues affecting households on Indian reservations, legislation was 
enacted to suspend until March 15, 1994, the implementation of the 
several Food Stamp Act provisions affecting retail food stores and 
households living on Indian reservations. I urge the Secretary to take 
notice of the will of the Congress on these issues, the Senate having 
passed this bill on March 11, and the House passing it today. We are 
assured that the President will sign this important legislation. 
Therefore, I would not expect USDA to take action under current law 
during the time between March 15 and the day on which the President 
signs this bill. Further, neither the Department nor State agencies 
should be considered negligent for not taking such action.
  This legislation will make very necessary and needed changes in the 
Food Stamp Program. After reviewing the language and its added 
provisions for Indian reservations, the members of the Committee on 
Agriculture are agreeable to accepting S. 1926. I urge its adoption.
  Mr. ROBERTS. Mr. Speaker, I rise in support of S. 1926 as the 
Chairman has described it. The minority, or at least this Member of the 
minority, supports the bill.
  Mr. Speaker, I rise in support of S. 1926, a bill to ensure adequate 
access to retail food stores for food stamp participants; to change the 
requirements concerning monthly reporting and staggered issuance for 
families living on Indian reservations; to require a study by GAO as to 
the feasibility of tribal organizations to administer the Food Stamp 
Program on reservations; and, to maintain the integrity of the Food 
Stamp Program.
  Title I of S. 1926 changes the requirements of the Food Stamp Act 
relating to the administration of the program for people living on 
Indian reservations. The secretary of the Kansas Department of Social 
and Rehabilitation Services has been urging action on the issue 
relating to monthly reporting and staggered issuance of food stamp 
benefits on Indian reservations. The secretary believes, as do most 
other States affected by these provisions, that unnecessary hardships 
for food stamp participants and unnecessary work for administrators 
will result without the changes incorporated in S. 1926. I am pleased 
that the differences concerning these provisions have been resolved and 
that State administrators support this bill.
  Additionally, GAO is required to study the feasibility of allowing 
the tribal organization of an Indian tribe on a reservation to 
administer the Food Stamp Program. Currently the Food Stamp Act 
provides limited ability for such administration. The GAO study will 
explore this option and report to the Committee on Agriculture by 
December 1, 1994.
  Title II of the bill under consideration today incorporates a bill 
passed by the House of Representatives last year, H.R. 3436, in which 
the definition of retail food stores that can accept food stamp coupons 
was changed. Additionally, other provisions are included to strengthen 
the enforcement of the provisions relating to retail food stores: to 
allow information provided by retail food stores to be shared with law 
enforcement officials; and, to require that the secretary spend up to 
$4 million on pilot projects designed to improve the investigation and 
prosecution of food stamp trafficking.
  Several retail food stores in Kansas advised me of the need to change 
this definition in order to move away from only a sales based test and 
take into account the variety of staple foods sold in food stores. S. 
1926 includes the amendments needed to make these changes.
  I urge my colleagues to support this bill.
  (Mr. ROBERTS asked and was given permission to revise and extend his 
remarks.)
  Mr. ROBERTS. Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The clerk read the Senate bill, 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. 
     2105(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.

  The Senate bill was ordered to be read a third time, was read the 
third time, and passed, and a motion to reconsider was laid on the 
table.

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