[Congressional Record Volume 140, Number 17 (Thursday, February 24, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
          A PERIODIC UPDATE ON MILITARY-STYLE ASSAULT WEAPONS

  Mrs. FEINSTEIN. Mr. President, last November the U.S. Senate 
considered and passed legislation to ban the sale, possession, and 
future manufacture of 19 semiautomatic assault weapons and their 
copycat versions. In addition, the legislation would ban ammunition 
devices that hold more than 10 rounds and specifically protect more 
than 670 guns used only for hunting and recreational purposes.
  It made me proud to serve in the U.S. Senate when this body approved 
the amendment by a vote of 56 to 43. We did the right thing.
  However, the House has not yet acted on the crime bill or on 
legislation to ban military-style assault weapons from the streets of 
America.
  Beginning today, I would like to take the opportunity to periodically 
update the Senate on crimes that are being perpetrated on the streets 
of America with the very weapons that the Senate's legislation aims to 
stop. Some people feel that semiautomatic assault weapons are not 
really responsible for much crime in America. In fact, that picture is 
changing. So just as others comment regularly on issues of their 
concern, I am going to comment regularly on crimes taking place that 
are perpetrated with semiautomatic assault weapons, and on the people 
bearing those weapons of war.
  The Atlanta Constitution found in a 1989 study that, although assault 
weapons make up only 2 to 3 percent of all guns owned by Americans, 
they show up in 30 percent of all firearms traced to organized crime, 
gun trafficking, and terrorism.
  More recent statistics show that the number of assault weapons traced 
to all kinds of gun crime is also disproportionately large.
  According to the Bureau of Alcohol, Tobacco and Firearms:
  Of the 55,665 crime guns traced by ATF in 1993, 5,397--roughly 10 
percent--were assault weapons.
  The most popular: the AK-47, the Intratec TEC-9, the Colt AR-15, and 
the MAC SM10, SM11, and M11.
  As uncommitted House Members continue to ponder this issue, the 
staccato of assault weapon gunfire continues to be heard across 
America--shattering bodies and families from California to New 
Hampshire by way of Texas, Louisiana, Minnesota, Georgia, and New York.
  Mr. President, let me describe just a few incidents from just the 
last 4 months, and ask unanimous consent that a table of these and 
other incidents be printed in the Record immediately following my 
remarks.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  (See exhibit 1).
  On October 25 in Indianapolis, IN, a 16-year-old girl was killed, and 
a 7-year-old boy was shot in his apartment, after more than 50 rounds 
of AK-47 gunfire ripped through a housing project in a retaliatory gang 
shooting.
  On October 30 in El Cajon, CA, a child-hating sniper used a Colt AR-
15 to kill a woman, a 9-year-old child, and wound five others in a 
parking lot;
  On November 1 in Newbury, NH, a man with a grudge and a replica of a 
Tommy gun murdered two people and wounded a third in an attack on a tax 
collector's office.
  That same day in Houston, TX, a teenage boy was slain by an AK-47 at 
a Halloween party by rival gang members.
  On November 23 in New Orleans, a jealous husband used an AK-47 and a 
MAC-11 to kill four: twin 4-month-old girls sleeping in their cribs, if 
you can believe it, their 8-year-old sister, and their mother. He also 
wounded their 10-year-old brother before committing suicide.
  On December 17 in Hugo, OK, a grievance killer with a MAK-90 assault 
rifle, purchased in a pawn shop, opened fire on holiday shoppers in a 
Wal-Mart parking lot, killing two and wounding three others. And it 
goes on.
  On December 30 in Dekalb County, GA, a grandmother was shot twice in 
the abdomen by her 13-year-old step-granddaughter wielding a MAC-11, 
hidden by the girl under her grandmother's bed for that purpose.
  On January 17 in St. Paul, MN, a 17-year-old used an AK-47 to shoot 
and kill another teenager in a dispute over a stolen stereo.
  I hope that it is not lost that the military style assault weapon is 
becoming the gun of choice for children.
  On January 29 in Buffalo, NY, a 16-year-old and his 14-year-old 
accomplice carjacked a vehicle, ``persuading'' the driver to hand over 
the keys with an AK-47.
  On January 31 in Seattle, WA, a teacher was shot in the back and 
killed by a former student armed with an AR-15 on school grounds.
  On February 7, just a few weeks ago, in Minneapolis, MN, a fugitive 
from a Detroit murder investigation was apprehended with a small 
arsenal of assault weapons, including a Colt AR-15.
  Just last week, on February 14 in the community of Rancho Palos 
Verdes, a masked gunman wearing a bullet proof vest burst unannounced 
into a hotel meeting room where a police management seminar was taking 
place.
  Before being subdued by other policemen, the gunman fired several 
times with a semiautomatic handgun. This was just a semiautomatic 
handgun. He killed two police officers--Captain Michael Tracy, 50, and 
Sergeant Vernon Thomas Vanderpool, 57. But then what did the police 
find?
  Police recovered an Uzi carbine assault rifle from the gunman's car--
and found a Colt AR-15 assault rifle that had been illegally converted 
to fully automatic mode in the gunman's home. Imagine the mass 
destruction that would have occurred had the gunman used either of 
these assault weapons in that small conference room.
  And just 2 days ago, in an early morning ambush, assault weapons took 
yet another life.
  This time it was the 45-year-old mother of two.
  She was the oldest rookie in her class at the Los Angeles Police 
Academy. Her father was a retired detective. And recently, Christy Lynn 
Hamilton's classmates in the Los Angeles Police Academy voted her the 
most inspirational new officer in one of the largest police departments 
of this Nation--an honor named after the only policewoman, up to then, 
to have died in the line of duty. Tragically, on Tuesday, 4 days after 
graduating from the Police Academy, Hamilton became the second woman in 
LAPD history to give her life on the job.
  She was shot and killed Tuesday morning with a semiautomatic 
military-style assault weapon when she was one of the first officers to 
respond to a call from a woman in Northridge--just where the earthquake 
took place--who reported that a family member had a gun.
  The 17-year-old gunman--again, 17-year-old--had already killed his 
father, who had simply asked him to turn down his stereo. Armed with a 
Colt AR-15 semiautomatic assault rifle, he ambushed the police officers 
when they arrived at his home and opened fire at 1:20 in the morning.
  Officer Hamilton had come prepared and well trained. She wore a 
bullet-proof vest. She crouched behind her police car's door, as she 
had been trained to do. The bullet that killed her, however, tore 
through the car door, passed through her arm, skirted the armhole of 
her vest, and lodged in her chest. She was pronounced dead at 
Northridge Hospital an hour later.
  This is a clear example of how police all across this Nation are 
simply being outgunned by grievance killers, drive-by shooters, and 
assassins.
  Let me briefly describe the Colt AR-15 that killed officer Christy 
Hamilton. It is a semiautomatic copy of the M-16, which has served as 
the standard rifle of the U.S. Armed Forces and many other countries' 
armies around the world. Several million automatic, and several hundred 
thousand semiautomatic, copies of this gun have been produced over the 
last 30 years. At least one version has a collapsible stock that 
facilitates ``concealability.''
  Now I ask you, should this weapon, the civilian model of a military 
gun designed and used to kill large numbers of people in close combat, 
be available legally over the counter, as it is in many States across 
the Nation? I believe that the answer is clearly ``No,'' and that it is 
time to stop the flow of these weapons to the streets of America once 
and for all.
  I know that every Member of this Senate extends their deepest 
sympathy to the family, friends, and coworkers of Christy Hamilton. It 
is true, the most dangerous job in the world today is being a police 
officer in a major city. In fact, the Los Angeles metropolitan area has 
lost eight police officers in just the last year, alone--all killed in 
the line of duty.
  Officer Hamilton's murder, and the dozen other recent assault weapon 
incidents that I described earlier, make one thing very clear.
  Nobody should say that semiautomatic assault weapons are not killing 
people. Nobody should say that these guns are not increasingly being 
used by young people throughout this Nation. And nobody should say that 
these guns do not figure in crime in America, because they do.
  Mr. President, I am hopeful that--like the Senate--the House of 
Representatives will pass legislation to stop the future manufacture of 
assault weapons. The President has said that he fully supports such a 
measure and will sign one. I believe that Congress owes it to Officer 
Christy Hamilton, every other victim of an assault weapon, and to the 
American public who overwhelmingly support such a bill, to give the 
President that opportunity.
  I thank you, Mr. President, and I yield the floor.
  There being no objection, the table was ordered to be printed in the 
Record, as follows:

                                            ASSAULT WEAPON INCIDENTS                                            
                                                [Partial Listing]                                               
----------------------------------------------------------------------------------------------------------------
         Date                  Location                Gun(s)                          Incident                 
----------------------------------------------------------------------------------------------------------------
Oct. 25, 1993.........  Indianapolis, IN.....  AK-47................  Retaliatory gang shooting kills teen 50-  
                                                                       shot fusillade and wounds 7 year-old     
                                                                       watching TV at home.                     
Oct. 26, 1993.........  Waterbury, CT........  TEC-9................  Botched drive-by shooting leads to 10 mile
                                                                       high-speed police chase.                 
Oct. 30, 1993.........  El Cajon, CA.........  AR-15................  ``Child-hating'' sniper kills woman and 9 
                                                                       year-old child in parking lot; wounds 5  
                                                                       others.                                  
Nov. 1, 1993..........  Newbury, NH..........  1927A-1..............  Grievance killer slays 2 and wounds a     
                                                                       third in attack on tax collector's office
                                                                       with ``Tommy'' gun replica.              
Nov. 1, 1993..........  Houston, TX..........  AK-47................  Teenage boy killed at Halloween party by  
                                                                       rival gang members.                      
Nov. 23, 1993.........  New Orleans, LA......  AK-47, MAC-11........  Jealous husband kills 4 month-old twin    
                                                                       girls in crib, 8 year-old sister, and    
                                                                       their mother before wounding children's  
                                                                       10 year-old brother in the head and      
                                                                       committing suicide.                      
Dec. 17, 1993.........  Hugo, OK.............  MAK-90...............  Two killed and 3 wounded in Wal-Mart      
                                                                       parking lot attack with AK-47 rifle      
                                                                       variation.                               
Dec. 30, 1993.........  Dekalb County, GA....  MAC-11...............  A 13 year-old girl intentionally wounds   
                                                                       her step-grandmother with two shots to   
                                                                       the abdomen.                             
Jan. 23, 1994.........  St. Paul, MN.........  AK-47................  17 year-old kills another teen in dispute 
                                                                       over stolen stereo.                      
Jan. 29, 1994.........  Buffalo, NY..........  AK-47................  A 16 year-old and his 14 year-old         
                                                                       accomplice commit carjacking.            
Jan. 31, 1994.........  Seattle, WA..........  AR-15................  Teacher killed in early morning ambush on 
                                                                       middle school grounds.                   
Feb. 7, 1994..........  Minneapolis, MN......  AR-15................  Fugitive from Detroit murder investigation
                                                                       apprehended with small arsenal.          
Feb. 14, 1994.........  Torrance, CA.........  Uzi, AR-15...........  Car and home of masked killer of 2 police 
                                                                       officers at motivational seminar yield,  
                                                                       respectively, Uzi carbine and AR-15      
                                                                       illegally modified to fire as fully-     
                                                                       automatic machine gun.                   
Feb. 22, 1994.........  Los Angeles, CA......  AR-15................  Drug-abusing 17 year-old kills LAPD rookie
                                                                       in 4th day on job, and his father, with  
                                                                       gun from father's collection; fatal      
                                                                       bullet passed through police car door and
                                                                       part of officer's ``bullet-proof'' vest; 
                                                                       officers from three cars pinned down by  
                                                                       hail of bullets.                         
----------------------------------------------------------------------------------------------------------------

    
                H_______________________________________

    

            REFORM OF THE SOCIAL SECURITY DISABILITY PROGRAM

  Mr. COHEN. Mr. President, yesterday, I, along with Senators Dole, 
Kassebaum, Domenici, Thurmond, Kohl, Lugar, Chafee, Warner, Grassley, 
Stevens, and Bennett, introduced legislation to stop the flow of 
millions of Federal dollars into the hands of illegal drug users, many 
of whom are simply using the money to turn around and buy either more 
drugs or alcohol.
  It is our intent to reform the Supplemental Security Income and 
Social Security Disability Program so as to encourage the actual 
treatment of those who are addicted to either alcohol or drugs, to get 
tough on those who manipulate the system, and to send a very strong 
message that the Federal Government no longer is going to be handing 
out checks to drug dealers, addicts, and others who are not seriously 
dedicated to helping themselves through the path of rehabilitation.
  To explain the dimensions of the problem, currently, under 
Supplemental Security Income--or SSI--our and Social Security 
disability systems, there are roughly 250,000 known addicts and 
alcoholics. Of those 250,000, only 78,000 are required to seek 
treatment for rehabilitation from their particular addiction.
  Of those 78,000, only approximately 9 percent are known by the Social 
Security Administration to be receiving treatment. So, in essence, out 
of the 250,000, only about 3 percent are known to be seeking treatment 
for their particular addiction.
  The word on the street is that the Social Security disability 
programs are an easy source of cash for drugs and alcohol and that once 
the Government checks start to flow, the Government rarely, if ever, 
checks up to see if the addict is going to treatment or to be sure that 
the benefits are not being used to buy more drugs. This, in essence, 
means that out of the $1.4 billion in benefits going to addicts and 
alcoholics, $1.1 billion is being paid without any supervision or 
monitoring on the part of the Federal Government.
  What is clear is that tax dollars are being used to support illegal 
drug habits. I will give you one example.
  Earlier this month, a drug bust took place in Williamsport, PA. It 
netted at least 28 packets of cocaine with a cutting agent for mixing 
cocaine, along with direct deposit receipts from Social Security 
disability checks. According to the local district attorney, two of the 
three suspects allegedly had been receiving Social Security benefits 
for their drug addictions but were not in any treatment program.
  We also found, after a year-long investigation, conducted by the 
minority staff of the Senate Aging Committee, that in some cases, over 
$20,000 is being paid in lump-sum benefits to drug addicts and 
alcoholics. Many of these recipients are taking that $20,000 check and 
spending the money on drugs and alcohol, resulting in very dangerous 
consequences, including even death, to the claimants. Even when the 
benefits are paid to a third party, the money often finds its way back 
into the hands of the addicts or into a local bar or drug house.
  I will give you another rather outrageous example, Mr. President. A 
liquor store owner in Denver was selected by the Social Security 
Administration to serve as a ``responsible representative payee'' for 
40 alcoholics. He received $160,000 a year from the Government to, in 
essence, run a tab for them. Under the Social Security Supplemental 
Income Program, those individuals who are addicted are required, number 
one, to seek treatment, and they are also required to have a 
representative payee. In this particular case, and quite a few others, 
the representative payees are either drug addicts themselves, or 
bartenders who are running tabs of $160,000 a year.
  Something is wrong with the system because the message is, right now: 
Show us that you are a hardcore drug addict and the Government is going 
to pay you, and as long as you continue to either shoot up or drink up, 
the money is going to keep coming. Then, even if you tell us you are 
breaking the law to get your drugs, we are going to pay you. And 
finally, once we start the checks, they will probably never stop 
coming.
  One of the other most most graphic cases of abuse that I can point to 
is that some of the addicts are, in fact, engaged in the sale of drugs 
in order to continue to feed their habit. For example, as I indicated 
when I offered an amendment to the emergency supplemental 
appropriations bill just about 10 days ago, the ninth circuit recently 
ruled that a drug dealer was entitled to receive SSI benefits because 
his drug dealing was not ``substantial gainful activity.'' Under 
current SSA rules, an applicant is not eligible for benefits if he or 
she engages in substantial gainful activity.
   The Ninth Circuit Court of Appeals found the drug dealer eligible 
for benefits--which could have amounted to a $19,500 lump sum payment 
plus monthly benefits.
  The court reasoned that because he really only worked at dealing 
drugs for about 20 minutes a day, he was not engaged in substantial 
gainful activity. In other words, because it took only 20 minutes and 
he was not initiating the deals, but they were coming in to him, no 
heavy lifting was involved. Therefore, that individual was allowed to 
continue to receive disability insurance payments for his addiction at 
a time when he admittedly was engaged in the sale of illegal drugs. 
Something is wrong with this system.

  Far from proposing reform, which is considered to be heartless, what 
we want to do is reform the system to help those who are in fact 
addicted, get the treatment they need and deserve and stop feeding a 
system whereby the money is simply going into a bottle or into a 
needle.
  Psychiatrists and drug abuse counselors have told us that the laxity 
in the current system violates the basic rules of drug and alcohol 
treatment: Never give cash to an addict. It is like giving him or her a 
key to the medicine cabinet.
  Let me point to a chart, Mr. President. This chart shows the dramatic 
increase in those who are now going on to the rolls for addiction. From 
1989 to 1990, we saw 22,634 new addicts added to the rolls, another 
29,429 in 1990, another 38,686 in 1991, and another 58,045 in 1992. We 
have seen a 150 percent increase in the number of addicts going on the 
rolls just in the last 4 years, and yet most are not receiving the 
treatment that is required.
  What we seek to do in this legislation is to stop the cash from 
flowing into the pockets of drug dealers and into the veins of drug 
addicts. Specifically, the bill would do the following. It would 
require that any individual who received disability benefits must 
undergo appropriate treatment for substance abuse if it is available. 
It sets up a strict disability review process for those whose 
disability is based on substance abuse. It requires representative 
payees for substance abuse recipients to be Government agencies or 
other nonprofit agencies or facilities that will not be subject to 
coercion or manipulation by the substance abusers. It requires that 
lump sum benefits payable to abusers on SSI or SSDI be paid to a 
representative payee--again, a Government or nonprofit agency. It 
requires the establishment of an agency to monitor treatment in each 
State, and it requires that any proceeds derived from criminal activity 
to support substance abuse shall be considered to be substantial 
gainful activity.
  Mr. President, the amendment that I offered 10 days ago to the 
emergency supplemental was accepted by unanimous vote. It was dropped 
in the House-Senate conference. Apparently, the House conferees wanted 
the opportunity to take up legislation of their own in a more 
comprehensive fashion. In the meantime, millions of dollars continue to 
flow to drug abusers and alcoholics who are not getting treatment. We 
would put a stop to that.
  It toughens penalties for fraudulent statements or misrepresentations 
made by applicants or recipients to obtain SSI or disability insurance 
benefits and by others who assist in such fraudulent activities. The 
Secretary of Health and Human Services is also given authority to 
exclude from all HHS programs anyone who defrauds the disability 
system.
  Mr. President, far from abandoning substance abusers, this proposal 
stresses treatment and rehabilitation, and it closes the loopholes in 
the system that now invite abuse. Right now, the program is failing 
both taxpayers and substance abusers. We need to protect both.
  Mr. President, I cannot urge my colleagues enough to focus on this 
problem. It seems to me that we are absolutely doing a disservice to 
the people who are addicted and to the taxpayers who are helping to 
support them. This legislation would apply to SSDI as well as SSI 
disability programs because, Mr. President, we are told the disability 
insurance fund will run dry next year. It will then have to turn to the 
Social Security Retirement Trust Fund to be replenished. If we are 
going to do that, we have to assure the American taxpayers that their 
money is being spent for the purpose for which it is intended--
rehabilitation and treatment--and not more booze and not more drugs.
  I thank the Chair and request unanimous consent that the text of the 
bill be included at the conclusion of my remarks.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. --

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Social Security Disability 
     and Rehabilitation Act of 1994''.

     SEC. 2. REFORM OF MONTHLY INSURANCE BENEFITS BASED ON 
                   DISABILITY INVOLVING SUBSTANCE ABUSE.

       (a) Social Security Disability Insurance.--
       (1) In general.--Section 223 of the Social Security Act (42 
     U.S.C. 423) is amended by adding at the end the following new 
     subsection:

    ``Limitation on Payment of Benefits by Reason of Substance Abuse

       ``(j)(1)(A) Notwithstanding any other provision of this 
     title, no individual whose disability is based in whole or in 
     part on a medical determination that the individual is a drug 
     addict or alcoholic shall be entitled to benefits under this 
     title based on such disability with respect to any month, 
     unless such individual--
       ``(i) is undergoing, or on a waiting list for, any medical 
     or psychological treatment that may be appropriate for such 
     individual's condition as a drug addict or alcoholic (as the 
     case may be) and for the stage of such individual's 
     rehabilitation at an institution or facility approved for 
     purposes of this paragraph by the Secretary (so long as 
     access to such treatment is reasonably available, as 
     determined by the Secretary), and
       ``(ii) demonstrates in such manner as the Secretary 
     requires, including at a continuing disability review not 
     later than one year after such determination, that such 
     individual is complying with the terms, conditions, and 
     requirements of such treatment and with the requirements 
     imposed by the Secretary under subparagraph (B).
       ``(B) The Secretary shall provide for the monitoring and 
     testing of all individuals who are receiving benefits under 
     this title and who as a condition of such benefits are 
     required to be undergoing treatment and complying with the 
     terms, conditions, and requirements thereof as described in 
     subparagraph (A), in order to assure such compliance and to 
     determine the extent to which the imposition of such 
     requirements is contributing to the achievement of the 
     purposes of this title. The Secretary may retain jurisdiction 
     in the case of a hearing before the Secretary under this 
     title to the extent the Secretary determines necessary to 
     carry out the preceding sentence. The Secretary shall 
     annually submit to the Congress a full and complete report on 
     the Secretary's activities under this paragraph.
       ``(C) The representative payee and the referral and 
     monitoring agency for any individual described in 
     subparagraph (A) shall report to the Secretary any 
     noncompliance with the terms, conditions, and requirements of 
     the treatment described in subparagraph (A) and with the 
     requirements imposed by the Secretary under subparagraph (B).
       ``(D)(i) If the Secretary finds that an individual is not 
     complying with the terms, conditions, and requirements of the 
     treatment described in subparagraph (A), or with the 
     requirements imposed by the Secretary under subparagraph (B), 
     or both, the Secretary, in lieu of termination, may suspend 
     such individual's benefits under this title until compliance 
     has been reestablished, including compliance with any 
     additional requirements determined to be necessary by the 
     Secretary.
       ``(ii) Any period of suspension under clause (i) shall be 
     taken into account in determining any 24-month period 
     described in subparagraph (E) and shall not be taken into 
     account in determining the 36-month period described in such 
     subparagraph.
       ``(E)(i) Except as provided in clause (ii), no individual 
     described in subparagraph (A) shall be entitled to benefits 
     under this title for any month following the 24-month period 
     beginning with the determination of the disability described 
     in such subparagraph.
       ``(ii) If at the end of the 24-month period described in 
     clause (i), the individual furnishes evidence in accordance 
     with subsection (d)(5) that the individual continues to be 
     under a disability based in whole or in part on a medical 
     determination that the individual is a drug addict or 
     alcoholic, such individual shall continue to be entitled to 
     benefits under this title based on such disability.
       ``(iii) Subject to clause (iv), if such an individual 
     continues to be entitled to such benefits for an additional 
     24-month period following a determination under clause (ii), 
     clauses (i) and (ii) shall apply with regard to any further 
     entitlement to such benefits following the end of such 
     additional period.
       ``(iv) In no event shall such an individual be entitled to 
     benefits under this title for more than a total of 36 months, 
     unless upon the termination of the 36th month such individual 
     furnishes evidence in accordance with subsection (d)(5) that 
     the individual is under a disability which is not related in 
     part to a medical determination that the individual is a drug 
     addict or alcoholic.
       ``(2)(A) Any benefits under this title payable to any 
     individual referred to in paragraph (1), including any 
     benefits payable in a lump sum amount, shall be payable only 
     pursuant to a certification of such payment to a qualified 
     organization acting as a representative payee of such 
     individual pursuant to section 205(j).
       ``(B) For purposes of subparagraph (A) and section 
     205(j)(4), the term `qualified organization'--
       ``(i) shall have the meaning given such term by section 
     205(j)(4)(B), and
       ``(ii) shall mean an agency or instrumentality of a State 
     or a political subdivision of a State.
       ``(3) Monthly insurance benefits under this title which 
     would be payable to any individual (other than the disabled 
     individual to whom benefits are not payable by reason of this 
     subsection) on the basis of the wages and self-employment 
     income of such a disabled individual but for the provisions 
     of paragraph (1), shall be payable as though such disabled 
     individual were receiving such benefits which are not payable 
     under this subsection.''
       (2) Conforming amendments.--
       (A) Section 205(j)(1) of such Act (42 U.S.C. 405(j)(1)) is 
     amended by inserting '', or in the case of any individual 
     referred to in section 223(j)(1)(A)'' after ``thereby''.
       (B) Section 205(j)(2)(D)(ii)(II) of such Act (42 U.S.C. 
     405(j)(2)(D)(ii)(II)) is amended by striking ``legally 
     incompetent or under the age of 15'' and inserting ``legally 
     incompetent, under the age of 15, or a drug addict or 
     alcoholic referred to in section 223(j)(1)(A)''.
       (b) Supplemental Security Income.--Paragraph (3) of section 
     1611(e) of the Social Security Act (42 U.S.C. 1382(e)) is 
     amended to read as follows:
       ``(3)(A)(i) No person who is an aged, blind, or disabled 
     individual solely by reason of disability (as determined 
     under section 1614(a)(3)) shall be an eligible individual or 
     eligible spouse for purposes of this title with respect to 
     any month if such individual's disability is based in whole 
     or in part on a medical determination that the individual is 
     a drug addict or alcoholic, unless such individual--
       ``(I) is undergoing, or on a waiting list for, any medical 
     or psychological treatment that may be appropriate for such 
     individual's condition as a drug addict or alcoholic (as the 
     case may be) and for the stage of such individual's 
     rehabilitation at an institution or facility approved for 
     purposes of this paragraph by the Secretary (so long as 
     access to such treatment is reasonably available, as 
     determined by the Secretary), and
       ``(II) demonstrates in such manner as the Secretary 
     requires, including at a continuing disability review not 
     later than one year after such determination, that such 
     individual is complying with the terms, conditions, and 
     requirements of such treatment and with the requirements 
     imposed by the Secretary under clause (ii).
       ``(ii) The Secretary shall provide for the monitoring and 
     testing of all individuals who are receiving benefits under 
     this title and who as a condition of such benefits are 
     required to be undergoing treatment and complying with the 
     terms, conditions, and requirements thereof as described in 
     clause (i), in order to assure such compliance and to 
     determine the extent to which the imposition of such 
     requirements is contributing to the achievement of the 
     purposes of this title. The Secretary may retain jurisdiction 
     in the case of a hearing before the Secretary under this 
     title to the extent the Secretary determines necessary to 
     carry out the preceding sentence. The Secretary shall 
     annually submit to the Congress a full and complete report on 
     the Secretary's activities under this subparagraph.
       ``(iii) The representative payee and the referral and 
     monitoring agency for any individual described in clause (i) 
     shall report to the Secretary any noncompliance with the 
     terms, conditions, and requirements of the treatment 
     described in clause (i) and with the requirements imposed by 
     the Secretary under clause (ii).
       ``(iv)(I) If the Secretary finds that an individual is not 
     complying with the terms, conditions, and requirements of the 
     treatment described in clause (i), or with the requirements 
     imposed by the Secretary under clause (ii), or both, the 
     Secretary, in lieu of termination, may suspend such 
     individual's benefits under this title until compliance has 
     been reestablished, including compliance with any additional 
     requirements determined to be necessary by the Secretary.
       ``(II) Any period of suspension under subclause (I) shall 
     be taken into account in determining any 24-month period 
     described in clause (v) and shall not be taken into account 
     in determining the 36-month period described in such clause.
       ``(v)(I) Except as provided in subclause (II), no 
     individual described in clause (i) shall be entitled to 
     benefits under this title for any month following the 24-
     month period beginning with the determination of the 
     disability described in such clause.
       ``(II) If at the end of the 24-month period described in 
     subclause (I), the individual furnishes evidence in 
     accordance with section 223(d)(5) that the individual 
     continues to be under a disability based in whole or in part 
     on a medical determination that the individual is a drug 
     addict or alcoholic, such individual shall be entitled to 
     benefits under this title based on such disability.
       ``(III) Subject to subclause (IV), if such an individual 
     continues to be entitled to such benefits for an additional 
     24-month period following a determination under subclause 
     (II), subclauses (I) and (II) shall apply with regard to any 
     further entitlement to such benefits following the end of 
     such additional period.
       ``(IV) In no event shall such an individual be entitled to 
     benefits under this title for more than a total of 36 months, 
     unless upon the termination of the 36th month such individual 
     furnishes evidence in accordance with section 223(d)(5) that 
     the individual is under a disability which is not related in 
     part to a medical determination that the individual is a drug 
     addict or alcoholic.
       ``(B)(i) Any benefits under this title payable to any 
     individual referred to in subparagraph (A), including any 
     benefits payable in a lump sum amount, shall be payable only 
     pursuant to a certification of such payment to a qualified 
     organization acting as a representative payee of such 
     individual pursuant to section 1631(a)(2)(A)(ii).
       ``(ii) For purposes of clause (i) and section 
     1631(a)(2)(D), the term `qualified organization'--
       ``(I) shall have the meaning given such term by section 
     1631(a)(2)(D)(ii), and
       ``(II) shall mean an agency or instrumentality of a State 
     or a political subdivision of a State.''
       (c) Effective Dates; Authorizations.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to benefits 
     payable for determinations of disability made 90 or more days 
     after the date of the enactment of this Act.
       (2) Current determinations.--
       (A) In general.--With respect to any individual described 
     in subparagraph (B), the Secretary of Health and Human 
     Services shall provide during the 3-year period beginning 
     after the date of the enactment of this Act for the 
     application of the amendments made by this section to such 
     individual with the time periods described in such amendments 
     to begin upon such application.
       (B) Individual described.--An individual is described in 
     this subparagraph if such individual is entitled to benefits 
     under title II or XVI of the Social Security Act based on a 
     disability determined before the date described in paragraph 
     (1) to be based in whole or in part on a medical 
     determination that the individual is a drug addict or 
     alcoholic.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of the provisions of, and the amendments made 
     by, this section.

     SEC. 3. PRIORITY OF TREATMENT.

       The Secretary of Health and Human Services, through the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration, shall assure that every individual 
     receiving disability benefits under title II or XVI of the 
     Social Security Act based in whole or in part on a medical 
     determination that the individual is a drug addict or 
     alcoholic be given high priority for treatment through 
     entities supported by the various States through any 
     substance abuse block grant authorized under law.

     SEC. 4. ESTABLISHMENT OF REFERRAL MONITORING AGENCIES 
                   REQUIRED IN ALL STATES.

       The Secretary of Health and Human Services shall, within 1 
     year of the date of the enactment of this Act, provide for 
     the establishment of referral and monitoring agencies for 
     each State for the purpose of carrying out the treatment 
     requirements under sections 223(j)(1) and 1611(e)(3)(A) of 
     the Social Security Act (42 U.S.C. 423(j)(1) and 
     1382(e)(3)(A)).

     SEC. 5. PROCEEDS FROM CERTAIN CRIMINAL ACTIVITIES CONSTITUTE 
                   SUBSTANTIAL GAINFUL EMPLOYMENT.

       (a) Social Security Disability Insurance.--Section 
     223(d)(4) of the Social Security Act (42 U.S.C. 423(d)(4)) is 
     amended by inserting 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) Supplemental Security Income.--Section 1614(a)(3)(D) of 
     the Social Security Act (42 U.S.C. 1382(a)(3)(D)) is amended 
     by inserting 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.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disability determinations conducted on or 
     after the date of the enactment of this Act.

     SEC. 6. CONSISTENT PENALTY PROVISIONS FOR SSDI AND SSI 
                   PROGRAMS.

       (a) Felony Penalties for Fraud.--
       (1) In general.--Subsection (a) of section 1631 of the 
     Social Security Act (42 U.S.C. 1383a) is amended by striking 
     ``shall be guilty of a misdemeanor and upon conviction 
     thereof shall be fined not more than $1,000 or imprisoned for 
     not more than one year, or both'' and inserting ``shall be 
     guilty of a felony and upon conviction thereof shall be fined 
     under title 18, United States Code, or imprisoned for not 
     more than five years, or both''.
       (2) Representative payees.--
       (A) Ssdi.--Subsections (b) and (c) of section 208 of such 
     Act (42 U.S.C. 408) are amended to read as follows:
       ``(b)(1) Any person or other entity who is convicted of a 
     violation of any of the provisions of this section, if such 
     violation is committed by such person or entity in his role 
     as, or in applying to become, a certified payee under section 
     205(j) on behalf of another individual (other than such 
     person's spouse or an entity described in section 
     223(j)(2)(B)(ii)), shall be guilty of a felony and upon 
     conviction thereof shall be fined under title 18, United 
     States Code, or imprisoned for not more than five years, or 
     both.
       ``(2) In any case in which the court determines that a 
     violation described in paragraph (1) includes a willful 
     misuse of funds by such person or entity, the court may also 
     require that full or partial restitution of such funds be 
     made to the individual for whom such person or entity was the 
     certified payee.
       ``(3) Any person or entity convicted of a felony under this 
     section or under section 1632(b) may not be certified as a 
     payee under section 205(j).
       ``(c) For the purpose of subsection (a)(7), the terms 
     `social security number' and `social security account number' 
     mean such numbers as are assigned by the Secretary under 
     section 205(c)(2) whether or not, in actual use, such numbers 
     are called social security numbers.''
       (B) Ssi.--Subsection (b)(1) of section 1632 of such Act (42 
     U.S.C. 1383a) is amended by striking ``(other than such 
     person's spouse)'' and all that follows through the period 
     and inserting ``(other than such person's spouse or an entity 
     described in section 1611(e)(3)(B)(ii)(II)), shall be guilty 
     of a felony and upon conviction thereof shall be fined under 
     title 18, United States Code, or imprisoned for not more than 
     five years, or both.''
       (b) Civil Administrative Penalties.--
       (1) Ssdi.--Section 208 of the Social Security Act (42 
     U.S.C. 408) is amended by adding at the end the following new 
     subsections:
       ``(e) For administrative penalties for false claims and 
     statements with respect to which an individual or other 
     entity knows or has reason to know such falsity, see chapter 
     38 of title 31, United States Code.
       ``(f) In the case of the second or subsequent imposition of 
     an administrative or criminal penalty on any person or other 
     entity under this section, the Secretary may exclude such 
     person or entity from participation in any program under this 
     title and titles V, XVI, XVIII, and XX, and may direct that 
     such person or entity be excluded from any State health care 
     program (as defined in section 1128(h)) and any other Federal 
     program as provided by law.''
       (2) Ssi.--
       (A) In general.--Section 1632 of such Act (42 U.S.C. 1383a) 
     is amended by adding at the end the following new 
     subsections:
       ``(c) For administrative penalties for false claims and 
     statements with respect to which an individual or other 
     entity knows or has reason to know such falsity, see chapter 
     38 of title 31, United States Code.
       ``(d) In the case of the second or subsequent imposition of 
     an administrative or criminal penalty on any person or other 
     entity under this section, the Secretary may exclude such 
     person or entity from participation in any program under this 
     title and titles II, V, XVIII, and XX, and may direct that 
     such person or entity be excluded from any State health care 
     program (as defined in section 1128(h)) and any other Federal 
     program as provided by law.''
       (B) Conforming amendment.--The heading for section 1632 of 
     such Act (42 U.S.C. 1383a) is amended by striking ``for 
     fraud''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective on or after the date of the enactment of 
     this Act.

  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. HARKIN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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