[Congressional Record Volume 142, Number 120 (Thursday, September 5, 1996)]
[Extensions of Remarks]
[Pages E1538-E1539]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF THE FOOD STAMP CONVERSION AND PROFITEERING PROHIBITION 
                              ACT OF 1996

                                 ______
                                 

                            HON. BOB FRANKS

                             of new jersey

                    in the house of representatives

                      Thursday, September 5, 1996

  Mr. FRANKS of New Jersey. Mr. Speaker, today I rise to invite my 
colleagues to join me in combating the latest scam being used to rip 
off the food stamp program. Recently, I learned that a Long Island 
couple went to a local supermarket and bought more than $120 in caviar 
with food stamps. And worse, instead of using the extravagant cuisine 
for their own consumption, the couple took the caviar and resold it for 
a considerable profit at a local flea market.
  Like most taxpayers in my district, I was appalled to learn of this 
blatant ripoff of the food

[[Page E1539]]

stamp program. However, after checking the rule of the current program, 
I was shocked to learn that this practice is perfectly legal.
  Therefore, today I am introducing legislation to prohibit the 
practice of selling food purchased with food stamps for profit. Under 
my bill, called the Food Stamp Conversion and Profiteering Prohibition 
Act of 1996, the couple that sold the caviar would face the same 
ineligibility penalties as they would for other forms of food stamp 
fraud.
  As you know, the welfare bill recently signed into law already takes 
significant steps to clean up the waste, fraud, and abuse in the food 
stamp program. Combined with my legislation to combat this latest scam, 
Congress can help restore honesty and accountability to the food stamp 
program. I urge my colleagues to cosponsor this legislation.

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