[Congressional Record Volume 144, Number 146 (Wednesday, October 14, 1998)]
[Senate]
[Pages S12464-S12465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page S12464]]
 REQUIRING THE COMMISSIONER OF SOCIAL SECURITY TO TAKE CERTAIN ACTIONS

  Mr. CRAIG. I ask unanimous consent that the Agriculture Committee be 
discharged from further consideration of S. 1733, and the Senate then 
proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 1733) to require the Commissioner of Social 
     Security and food stamp State agencies to take certain 
     actions to ensure that food stamp coupons are not issued for 
     deceased individuals.

  The PRESIDING OFFICER (Mr. Coats). Is there objection to the 
immediate consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill.


                           Amendment No. 3822

              (Purpose: To provide a complete substitute)

  Mr. CRAIG. Mr. President, Senator Lugar and Senator Harkin have a 
substitute amendment at the desk, and I ask for its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Idaho [Mr. Craig] for Mr. Lugar, for 
     himself and Mr. Harkin, proposes an amendment numbered 3822.

  The amendment is as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. DENIAL OF FOOD STAMPS FOR DECEASED INDIVIDUALS.

       (a) In General.--Section 11 of the Food Stamp Act of 1977 
     (7 U.S.C. 2020) is amended by adding at the end the 
     following:
       ``(r) Denial of Food Stamps for Deceased Individuals.--Each 
     State agency shall--
       ``(1) enter into a cooperative arrangement with the 
     Commissioner of Social Security, pursuant to the authority of 
     the Commissioner under section 205(r)(3) of the Social 
     Security Act (42 U.S.C. 405(r)(3)), to obtain information on 
     individuals who are deceased; and
       ``(2) use the information to verify and otherwise ensure 
     that benefits are not issued to individuals who are 
     deceased.''.
       (b) Report.--Not later than September 1, 2000, the 
     Secretary of Agriculture shall submit a report regarding the 
     progress and effectiveness of the cooperative arrangements 
     entered into by State agencies under section 11(r) of the 
     Food Stamp Act of 1977 (7 U.S.C. 2020(r)) (as added by 
     subsection (a)) to--
       (1) the Committee on Agriculture of the House of 
     Representatives;
       (2) the Committee on Agriculture, Nutrition, and Forestry 
     of the Senate;
       (3) the Committee on Ways and Means of the House of 
     Representatives;
       (4) the Committee on Finance of the Senate; and
       (5) the Secretary of the Treasury.
       (d) Effective Date.--This section and the amendments made 
     by this section take effect on June 1, 2000.

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

       (a) In General.--The Secretary of Agriculture shall conduct 
     a 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 
     shall--
       (1) analyze available data to determine--
       (A) whether the data have addressed the needs of the food 
     stamp program established under the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.);
       (B) whether additional or unique data need to be developed 
     to address the needs of the food stamp program; and
       (C) the feasibility and cost-benefit ratio of each 
     available option for a national database;
       (2) survey the States to determine how the States are 
     enforcing the prohibition on recipients receiving assistance 
     in more than 1 State under Federal means-tested public 
     assistance programs;
       (3) determine the functional requirements of each available 
     option for a national database; and
       (4) ensure that all options provide safeguards to protect 
     against the unauthorized use or disclosure of information in 
     the national database.
       (c) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study conducted under this 
     section.
       (d) Funding.--Out of any moneys in the Treasury not 
     otherwise appropriated, the Secretary of the Treasury shall 
     provide to the Secretary of Agriculture $500,000 to carry out 
     this section. The Secretary shall be entitled to receive the 
     funds and shall accept the funds, without further 
     appropriation.

       Amend the title so as to read: ``A bill to amend the Food 
     Stamp Act of 1977 to require food stamp State agencies to 
     take certain actions to ensure that food stamp coupons are 
     not issued for deceased individuals, to require the Secretary 
     of Agriculture to conduct a study of options for the design, 
     development, implementation, and operation of a national 
     database to track participation in Federal means-tested 
     public assistance programs, and for other purposes.''.

  Mr. LUGAR. Mr. President, I rise today to support S. 1733, as 
amended, a bill to combat fraud and waste in the food stamp program. 
This bill will do two things. First, it will require food stamp offices 
to match food stamp files with Social Security data to identify 
overpayments to deceased food stamp participants. Second, it will 
require the Secretary of the U.S. Department of Agriculture to explore 
data on the development of a national database to identify overpayments 
resulting from individuals receiving benefits in two or more states at 
the same time and implement other program interstate requirements.
  This bill is the result of the last two General Accounting Office 
studies that I requested dealing with groups of ineligible people 
receiving food stamps. In the first report, 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. In the second report, the 
GAO identified 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.
  My bill will require state food stamp agencies to use the Social 
Security Administration's Death Master file to verify that no deceased 
individuals are counted as members of food stamp households, either 
increasing a households' benefits or allowing an individual to 
illegally receive benefits in the deceased person's name. To give SAA 
enough time to iron out Year 2000 problems, this provision will not be 
effective until June 1, 2000.
  Current law requires that households notify their local welfare 
office of any changes in the makeup of the household within ten days. 
The GAO report showed that the deceased individuals were counted in 
food stamp households for an average of four months; and, in a few 
instances, the deceased individuals were counted as beneficiaries for 
the full two years the review was counted. This is unacceptable, 
particularly since this type of fraud can easily be prevented.
   Mr. President, one federal agency has the information to prevent 
this fraud and abuse, but is not sharing it with other agencies issuing 
federal benefits. The Social Security Administration (SSA) has a Death 
Master File that compiles death information available in the federal 
government. According to the GAO, a match using SSA's Death Master File 
information could be a cost-effective method for identifying such 
individuals in food stamp households and eliminating these 
overpayments. States already relay on the SSA to verify the social 
security numbers of food stamp applicants. Therefore, a system already 
exists in one branch of the federal government that, with some 
modifications, could stop these overpayments.
  My bill will also require the United States Department of Agriculture 
to conduct a 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. 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

[[Page S12465]]

 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. HHS has already fulfilled a congressional 
mandate to look into some of these issues, so I expect the USDA to use 
the completed HHS report to Congress 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 urge my colleagues to join Senator Harkin and me in 
supporting this bill.
  Mr. CRAIG. Mr. President, I ask unanimous consent that the amendment 
be agreed to, the bill be read the third time and passed, the motion to 
reconsider be laid upon the table, and that any statements relating to 
the bill appear at this point in the record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3822) was agreed to.
  The bill (S. 1733), as amended, was read the third time and passed.

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