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2/1/2013 Corvese bill targets SNAP fraud

STATE HOUSE – Rep. Arthur J. Corvese has filed legislation aimed at combating trafficking of food assistance provided by the federal government through the state to needy individuals and families.

The legislation (2013-H 5059) would make it a felony to buy or sell, or attempt to buy or sell, food assistance benefits, and would punish perpetrators with up to five years in prison.

“There are a lot of good people who really need the help that the food assistance program provides. This legislation is to protect the program from fraud and preserve its resources for those who need them and will use them as they are intended: to feed their families,” said Representative Corvese (D-Dist. 55, North Providence).

The Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, provides benefits to users via electronic benefits cards that can be used only for eligible food items.

Representative Corvese intends for his legislation to prevent people from converting their benefits to cash by selling them – generally at a discount – to others. The U.S. Department of Agriculture, which operates SNAP on the federal level, estimates that fraud costs taxpayers about $750 million annually, or about 1 percent of the program’s cost.

While some fraud reportedly comes from individuals selling their card for cash and later getting their card replaced, other forms of fraud occur with the assistance of unscrupulous retailers. For example, in November Massachusetts state police arrested eight people in Brockton connected to an alleged scheme in which the stores would swipe customers’ EBT cards claiming they bought food, but instead exchange the benefits for cash, keeping a share of the cash for the store.

Under Representative Corvese’s bill, those who convert or attempt to convert food assistance benefits would be guilty of a felony punishable by up to five years in prison. Those convicted of buying or attempting to buy the benefits, or selling or trying to sell benefits belonging to another person, would also be subject to up to $5,000 in fines. Any food assistance recipient convicted of selling or trying to exchange his or her benefits for cash would be disqualified from receiving food assistance for five years following his or release from confinement.

Representative Corvese said he believes stiffer penalties are necessary to discourage people from abusing a very worthwhile program and to protect families who need food.

“Food assistance is for food. Period. If someone is selling their benefits, they either don’t need them and the benefits should be going to someone who does, or they are abusing them and quite possibly depriving their family of food they desperately need. No child should have to go hungry because his or her parent sold their SNAP benefits,” said Representative Corvese.

For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457


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