MEMORANDUM 
Date: March 1, 1994
To: Senator Dole
From: Alec Vachon 
Re: Social Security Independent Agency Bill:
Deny DI and SSI Benefits to Drugs Addicts and Alcoholics Supporting Their Habits Through Criminal Activity 

*As you may recall, Senator Cohen offered an amendment to the Emergency Supplemental to effectively preclude awarding Disability Insurance (DI) or Supplemental Security Income (SSI) benefits to substance abusers who engage in criminal activity to support their habit. 

*You were principal co-sponsor of that amendment.

*The amendment died in conference, and Cohen plans to offer it again tomorrow to the Social Security Independent Agency bill. 

*I previously cleared this amendment with Sheila and Dennis. 

DO YOU AGAIN WANT TO CO-SPONSOR THIS AMENDMENT? 
YES 	NO 

S1332 CONGRESSIONAL RECORD-SENATE February 10, 1994 

following: I am certain, whether we like it or not, we will have to consider the events that are now unfolding in Bosnia.. I think it would be wise to anticipate that we may be soon considering air strikes, air strikes by our United States Air Force and Navy attack aircraft against Serbian artillery positions. 
At a time like this, is it prudent to reduce funds for the very intelligence programs which we need to identify these targets? This amendment would do that. It would blind our pilots. Is this the time to cut the satellite programs that give our forces warning of attacks? I hope that we will keep this in mind. It is on the front pages of every paper. Are we or are we not going to participate in the bombing of Bosnia? If we do and this amendment passes, then we are putting blindfolds over our pilot's eyes.
Madam President, if we expect the 1 percent of our Nation to risk their lives and stand in harm's way, the least we can do is to provide them with all of the resources necessary so that they can carry out their mission and get home to their loved ones. We cannot do any less. This amendment would take away their protection, and I am not prepared to do that. 
I urge all Members to vote against this amendment. 
It is not a problem then for consideration at this time. I hope the time will come, Madam President, when we can slash the Defense Department to almost nothing, when peace will come upon this planet. But much as we dream about that moment, that has not arrived yet. As long as we are confronted with madmen, terrorists, and countries with strained agendas, I think it would be prudent on the part of the United States to maintain a ready force of men and women who are willing to stand in harm's way. 
Madam President, I am ready to yield the floor. I gather the Senator from Maine has an amendment.
MR. COHEN addressed the Chair. 
THE PRESIDING OFFICER. Without objection, the pending amendment will be set aside.

AMENDMENT NO. 1455
(Purpose: To amend titles II and XVI of the Social Security Act to provide that any proceeds from certain criminal activities demonstrate an ability to engage in substantial gainful activity)
Mr. COHEN. Madam President, I send an amendment to the desk and ask for its immediate consideration. 
The PRESIDING OFFICER. The clerk will report. 
The bill clerk read as follows: 
The Senator from Maine [Mr. COHEN], for himself, Mr. Dole, Mrs. KASSEBAUM, Mr. GORTON, Mr. THURMOND, and Mr. D'AMATO, proposes an amendment numbered 1455
Mr. COHEN. Madam President, I ask unanimous consent that reading of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered. 
The amendment is as follows:
At the appropriate place insert the following:
	(a) Section 223(d)(4) of the Social Security Act (42 U.S.C. 423(d)(4)) is amended by interting the following after the first sentence: "If an individual engages in a criminal activity to support substance abuse, any proceeds derived from such activity shall demonstrate such individual's ability to engage in substantial gainful activity.".
	(b) Section 1614(a)(3)(D) of the Social Security Act (42 U.S.C. 1382(a)(3)(D)) is amended by insertin the following after the first sentence: "If an individual engages in a criminal activity to support substance abuse, any proceeds derived from such activity shall demonstrate such individual's avility to engage in substantial gainful activity.".
	(c) The amendments made by this section shall apply to disability determinations conducted on or after the date of the enactment of this Act.
MR. COHEN. Madam President, I offer this amendment on begalf of myself, Senators DOLE, KASSEBAUM, D'AMATO, THURMOND, and GORTON.
From time to time, astounding examples of absurd Federal spending policies come to light and stop us in our tracks. The amendment that I am offering today to the emergency supplemental appropriations bill addresses a situation that would certainly make anyone's top 20 list of how to waste tax dollars and, at the same time, undermine our efforts in the war against crime and illegal drugs. 
I offer it today in a very limited form from the statement I made just a few days ago. I took the floor 2 days ago to point out that the President had announced a $1.5 trillion budget proposal, and that his national drug strategy would shift the emphasis from drug­control efforts and interdiction toward treatment and rehabilitation. 
I wish to point out to my colleagues that we now have a program in place through the Social Security Administration that keeps money flowing to alcoholics and drug addicts.
Earlier this week I released the results of a year-long investigation conducted by my staff on the Special Committee on Aging which revealed that last year, the Federal Government paid over $1.4 billion in benefits under the Social Security Disability Insurance Program [DI] and the Supplemental Security Income Program [SSI] to drug addicts and alcoholics.
Amazingly, fewer than one-third of the drug addicts and alcoholics receiving SSI and DI payments are under any requirements for rehavilitation or monitoring by the SSA on how they use the cash provided by the Federal Government- leaving no controls in place on the $1.1 billion in payments being made to drug addicts and alcoholics who are on the SSI and disability insurance rolls.
The results of our investigation probably come to no surprise to anyone with common sense: When we give cash to drug addicts, they will use it to by more drugs. But that, Mr. President, is the essence of the disability policy that we have in effect today.
When Congress allowed drug and other substance abusers to receive disability benefits under the SSI and disability insurance programs, it placed two conditions on these benefits. First, that the drug addict or alcoholic receive treatment; and second, that a third party, such as a friend or relative, or even an institution, receive the benefits on behalf of the addict or alcoholic, in order to prevent the money from simply being used to fuel a drug habit.
As we reported earlier this week, however, our instigation found that the system has failed to keep money out of the hands of addicts and alcoholics, and few of these addicts are receiving any treatment. Instead, the money keeps flowing, and the addicts keep drinking, snorting, or shooting our federal dollars away.
Today I will be announcing comprehensive legislation to address the many problems uncovered in our investigation. But this amendment is really quite limited in nature. It takes the first step toward reform by prohibiting the Social Security Administration from providing cash benefits to drug dealers and other criminals who are using Social Security funds to feed their habits.
Under the current SSI and disability insurance programs, a claimant is ineligible for benefits if he or she is found to be able to engage in substantial gainful activity.
Given the street value of drugs these days, it seems like simple common sense to conclude that any income from dealing drugs should be gainful activity. But, as we have learned from our investigation, common sense does not apply when it comes to how we spend the taxpayers' dollars, especially in the Social Security disability programs.
Last month, the Ninth Circuit Court of Appeals ruled that illegal drug dealing under some circumstances does not constitute substantial gainful activity  under the Social Security Act, thereby allowing some drug dealers continued access to disability benefits.
The discussion by the Ninth Circuit Court of Appeals in Raymond Corrao versus Donna E. Shalala is enough to make a taxpayer's blood boil. 
Even though the SSI claimant in the case admitted that he obtains  up to $600 worth of heroin daily for up to three people and receives approximately 1 1/2 grams of heroin per day, worth about $150, the court found that he was not engaged in substantial activity- and therefore he was eligible for disability benefits.
While the court conceded that it is possible under current law to disqualify a claimant for benefits whenhe or she earns money by engaging in illegal activity, the tortured application of SSA rules is almost comical- but for the fact that it wastes hard-earned taxpayers dollars.