[Congressional Record Volume 144, Number 117 (Tuesday, September 8, 1998)]
[Senate]
[Pages S9977-S9978]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 2447. A bill to require the Secretary of Agriculture, in 
consultation with the heads of other agencies, to conduct a feasibility 
and cost-benefit study of options for the design, development, 
implementation, and operation of a national database to track 
participation in Federal means-tested public assistance programs; to 
the Committee on Governmental Affairs.


                 FOOD STAMP INTERSTATE FRAUD PREVENTION

 Mr. LUGAR. Mr. President, I rise today to introduce a bill to 
combat fraud and waste in the food stamp program--overpayments 
resulting from individuals receiving benefits in two or more states at 
the same time. This bill is the result of the last in a series of 
General Accounting Office studies that I requested dealing with groups 
of ineligible people receiving food stamps. In the report being 
released today, GAO identifies over 20,000 individuals who received 
benefits in at least two states at the same time during 1996. Using 
administrative records from four states (California, Texas, New York 
and Florida), the GAO estimates overpayments of $3.9 million in those 
states alone.
  Last year the GAO reported to the Agriculture Committee that over $3 
million in food stamp benefits were overpaid to prisoners' households. 
In response we passed legislation to stop prisoners from receiving 
benefits. Earlier this year, the GAO reported that 26,000 deceased 
individuals in four states were counted as members of a food stamp 
household. According to the GAO this resulted in overpayments of an 
estimated $8.6 million. The Agriculture Committee reported a bill to 
match food stamp files with Social Security Administration data.
  My bill will require the United States Department of Agriculture to 
conduct a feasibility study to identify options for a national database 
to track food stamp participants and combat interstate fraud. The GAO's 
report validates a Department of Health and Human Services computer 
match of 15 states which found 18,000 potential duplicated Temporary 
Assistance for Needy Families (TANF) cases. This suggests that the 
problem is not confined to USDA. My bill would direct the USDA to work 
in consultation with other agencies to develop a systematic approach to 
developing a national database.
  At present there is no appropriate national database that tracks in 
means-tested benefit programs. States have been working individually on 
the problem of benefits paid in multiple jurisdictions. For example, 
some states have developed cooperative agreements with neighboring 
states to share data. Current state efforts are effective, but anything 
short of a national system is inefficient.
  Mr. President, the welfare reform bill required states to guard 
against fraud and abuse, and specifically prohibited participants from 
receiving benefits in two states. However, the bill did not give states 
tools to combat this type of fraud. The welfare bill also did not give 
states the tools to implement other important provisions. To 
effectively implement the TANF and food stamp time limits, some type of 
national tracking system is necessary.
  Therefore, this bill directs the agencies involved to address a 
broader range of issues than simply the receipt of benefits in 
different states at the same time. HHS has already fulfilled a 
congressional mandate to look into some of these issues, so I expect 
the participants in this new study to use the completed project as a 
base upon which to build.
  Further, I believe that the study should explore the possibility of a 
``real time'' database, so that eligibility workers will instantly know 
if there are any problems with an application. This will avoid the 
``pay-and-chase'' problem that forces states to recoup overpayments 
from beneficiaries after the fact--sometimes years later. This method 
of fraud enforcement is inefficient, and often a burden on the 
recipient as well. A national database should not be seen as purely an 
enforcement tool. There are many cross program benefits for the poor, 
benefits which may not be apparent today. As with any large 
governmental database, the study should address how the system will 
safeguard recipients' privacy and limit unauthorized use and disclosure 
of data.
  Means-tested benefits, including food stamps, provide a safety net 
for millions of people. We cannot allow fraud and abuse to undermine 
the food stamp program and welfare reform. Integrity is essential to 
ensure a program that can serve those in need. It is our responsibility 
to help end fraud and abuse in all federally funded programs. This 
legislation is an important step in that direction and will help ensure 
that welfare reform is a success.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2447

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

     SECTION 1. FINDINGS.

       Congress finds that--
       (1) during 1997, the Federal Government spent over 
     $21,000,000,000 to deliver food stamp benefits under the Food 
     Stamp Act of 1977 (7 U.S.C. 2011 et seq.) to over 23,000,000 
     individuals;
       (2) a portion of the funds spent on food stamp benefits 
     annually is misspent through overpayments and fraud, which 
     undermines the integrity and confidence in the food stamp 
     program;
       (3) the Comptroller General of the United States has found 
     that--
       (A) as many as 20,000 individuals were receiving food stamp 
     benefits in at least 2 to 4 States at the same time during 
     1996;
       (B) due to this duplication, overpayments to the households 
     in those States during 1996 totaled approximately $3,900,000; 
     and
       (C) there was a similar duplication of payments in other 
     Federal means-tested public assistance programs, such as the 
     temporary assistance to needy families (TANF) program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.);
       (4) certain States currently have cooperative agreements 
     under which matches of recipients of means-tested public 
     assistance programs are tracked and coordinated with 
     neighboring States, but there is no comprehensive national 
     database or information system to track participation across 
     State lines;
       (5) the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193) created a 
     number of requirements to track means-tested assistance 
     throughout the United States, including time-limited receipt 
     of assistance under the food stamp program and the temporary 
     assistance to needy families (TANF) program;
       (6) a centralized database would be the most effective tool 
     to prevent receipt of means-tested assistance in multiple 
     jurisdictions and would avoid duplicated effort on the part 
     of States;
       (7) according to the Director of the Office of Management 
     and Budget, improved mechanisms to provide accurate 
     information to employees who determine eligibility for means-
     tested assistance would help prevent overpayments and improve 
     service to clients; and
       (8) data sharing at the time of application for means-
     tested assistance could change enforcement efforts from a 
     pay-and-chase method to a method that would be more proactive 
     and efficient.

     SEC. 2. STUDY ON NATIONAL DATABASE FOR FEDERAL MEANS-TESTED 
                   PUBLIC ASSISTANCE PROGRAMS.

       (a) In General.--The Secretary of Agriculture, in 
     consultation with the Secretary of Health and Human Services, 
     the Secretary of Labor, the Commissioner of Social Security, 
     and the Secretary of the Treasury, shall conduct a 
     feasibility and cost-benefit study of options for the design, 
     development, implementation, and operation of a national 
     database to track participation in Federal means-tested 
     public assistance programs.
       (b) Administration.--In conducting the study, the Secretary 
     of Agriculture shall--
       (1) study an option under which information in the national 
     database is collected and made available in real-time; and
       (2) provide safeguards to protect against the unauthorized 
     use or disclosure of information in the national database.
       (c) Report.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Agriculture shall 
     submit to Congress a report on the results of the study 
     conducted under this section.
       (d) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section 
     $250,000.

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