[Congressional Record Volume 143, Number 32 (Thursday, March 13, 1997)]
[Senate]
[Page S2279]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:

  S. 438. A bill to provide for implementation of prohibitions against 
payment of Social Security benefits to prisoners, and for other 
purposes; to the Committee on Finance.


                      THE NO CASH FOR CONVICTS ACT

 Mr. GRASSLEY. Mr. President, today I am introducing 
legislation to prohibit the payment of Social Security benefits to 
convicted criminals who are incarcerated at the expense of hard-working 
taxpayers.
  The fate of the Social Security program has become a major topic of 
debate in Washington and in the homes of the American people. In the 
news, on Capitol Hill, and in the conversations of people all across 
this country the question of how to address the pending financial 
problems of Social Security has caused considerable anxiety. Congress 
must face one of its stiffest challenges in the next couple of years to 
enact legislation that will rescue the Social Security program for the 
long term.
  However, there are other flaws in the Social Security program that we 
must not overlook. Because Social Security provides a lifelong 
entitlement to cash and health care, it is often a target of fraud and 
abuse. In the last couple of years, we have taken action to suspend 
benefits paid to drug addicts and alcoholics and have increased funding 
so the Social Security Administration can perform continuing disability 
reviews which ensure that beneficiaries who may have recovered are no 
longer receiving benefits.
  Just last year, Congress enacted legislation to help SSA identify 
prisoners who received benefits from the Supplemental Security Income 
Program. Unfortunately, Congress was unable to provide similar help to 
the Social Security Disability Insurance Program.
  No one incarcerated for a crime should continue to collect Social 
Security Disability Insurance. Criminals should not be allowed to 
double dip and receive Federal money earmarked for the purchase of food 
and clothing while they are part of a prison system which provides 
these necessities already. The average SSDI payment in January of 1996 
was $682. When an individual's shelter, food, and clothing needs are 
already being paid for at government expense--at least $13,000 a year 
in some States--paying out additional Federal funds is inexcusable.
  Under current law, criminals are prohibited from collecting 
disability insurance benefits if they are incarcerated and if that 
incarceration arises from a conviction punishable by imprisonment of 
more than one year. However, this narrow standard applies to a limited 
number of criminals.
  In order to fully confront this problem we must enact legislation 
that accomplishes two goals. First, the law needs to be expanded to 
close the existing loophole that allows criminals who are serving time 
for misdemeanors or who receive a sentence of less than one year to 
continue to collect benefits. Second, we must amend the law to 
facilitate the flow of information between Federal, State, county and 
local officials.
  Right now, SSA is able to identify only a few of the individuals who 
have been imprisoned to stop their benefits. The Social Security Act 
already requires that any Federal, State, county or local agency send 
the SSA the names and social security numbers of anyone who is confined 
to a penal institution or correctional facility in writing.
  What's needed is an incentive for State and local law enforcement 
authorities to report to the SSA any inmate illegally collecting DI 
benefits. In testimony to the House Ways and Means Oversight Committee 
on March 4, 1996, the General Accounting Office testified that SSA 
lacks timely and accurate information to stop benefit payments to 
prisoners.
  My bill provides State and local law enforcement agencies with a 
financial incentive to report convicted criminals who are receiving 
benefits while serving time in jail. The bill awards $400 for each 
criminal reported to SSA within the first 30 days of confinement, and 
$200 if the required information is reported to SSA after the 30 day 
period ends. If the local authorities do not notify SSA within 90 days 
after confinement begins, no award will be made.
  Last year, as part of welfare reform we took steps to stop the 
flagrant abuse of the Social Security system with respect to SSI 
payments. Now we must finish the job by extending the law to include 
the illegal collection of DI benefits.
  By passing this legislation we will protect the financial soundness 
of Social Security disability insurance and preserve the program for 
the people it is meant to assist. The only way to protect the hard-
earned money of the American taxpayer is to insure that every penny is 
being spent properly. This legislation is projected to save $35 million 
over the next 7 years. In this day of hundreds of billions of dollars 
in deficit this may not seem overwhelming, but it will ease the 
administrative burden on SSA and most importantly, help restore 
confidence in this vital program.
                                 ______