[Congressional Record (Bound Edition), Volume 145 (1999), Part 8]
[Extensions of Remarks]
[Page 10895]
[From the U.S. Government Publishing Office, www.gpo.gov]



 INTRODUCTION OF THE CRIMINAL WELFARE PREVENTION ACT, PART II AND THE 
               CRIMINAL WELFARE PREVENTION ACT, PART III

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                         Tuesday, May 25, 1999

  Mr. HERGER. Mr. Speaker, today, I join with a bipartisan coalition of 
original cosponsors to re-introduce two important pieces of 
legislation--The Criminal Welfare Prevention Act, Part II and The 
Criminal Welfare Prevention Act, Part III--which will help prevent the 
needless waste of taxpayer dollars.
  Because of the original Criminal Welfare Prevention Act--legislation 
I introduced during the 104th Congress which was enacted as part of 
welfare reform in 1996--an effective new incentive system is now in 
place that enables the Social Security Administration (SSA) to detect 
and cut off fraudulent Supplemental Security Income (SSI) and Social 
Security (OASDI) benefits that would otherwise be issued to prisoners. 
That provision established monetary incentives for state and local law 
enforcement authorities to enter into voluntary data-sharing contracts 
with SSA. Now, participating local authorities can elect to provide the 
Social Security numbers of their inmates to the Social Security 
Administration. If SSA identifies any ``matches''--instances where 
inmates are fraudulently collecting SSI benefits--SSA now cuts off 
payment of as much as $400. Participation in these data-sharing 
contracts is strictly voluntary; they do not involve any unfunded 
federal mandates. According to an estimate by SSA's Inspector General, 
this initiative could help save taxpayers as much as $3.46 billion 
through the year 2001.
  While we should certainly be proud of this achievement Mr. Speaker, 
our work in this area is far from finished. During the 105th Congress, 
the House passed by follow-up legislation, The Criminal Welfare 
Prevention Act, Part II (H.R. 530), as part of The Ticket to Work and 
Self-Sufficiency Act (H.R. 3433). This proposal would encourage even 
more sheriffs to become involved in fraud-prevention by extending the 
$400 incentive payments to intercepted Social Security (OASDI) checks 
as well. Regrettably, this proposal was not taken up by the Senate. For 
this reason, I am re-introducing The Criminal Welfare Prevention Act, 
Part II today, and will continue to push for the enactment of this 
important initiative.
  At the same time, I will also be working to enact a somewhat broader 
proposal. The Criminal Welfare Prevention Act, Part III, which I first 
introduced during the 105th Congress as H.R. 4172. This legislation 
would simply require SSA to share its prisoner database with other 
federal departments and agencies--such as the Departments of 
Agriculture, Education, Labor, and Veterans' Affairs--to help prevent 
the continued payment of other fraudulent benefits to prisoners. While 
we do not have reliable information about how many prisoners are 
receiving food stamps, education aid, and VA benefits for which they 
are ineligible, it is likely that many do. SSA's prisoner database 
provides us with the perfect tool to help identify and terminate 
inappropriate benefits issued through other federal and federally-
assisted spending programs.
  While SSA already has the authority to share its prisoner database 
with other agencies under a provision of the original Criminal Welfare 
Prevention Act--and while President Clinton has issued an executive 
memorandum ordering the SSA to do so--I believe it is important for 
Congress to codify this requirement into law. Because fraud prevention 
has not historically been a top priority at SSA, Congress should act 
swiftly to ensure that we permanently stamp out inmate fraud in all its 
forms. After all, taxpayers already pay for inmates' food, clothing, 
and shelter. It is simply outrageous that prisoners may be receiving 
fraudulent ``bonus'' checks each month as well.
  Mr. Speaker, I would urge all of my colleagues--on both sides of the 
aisle--to cosponsor both of these important pieces of legislation. I 
hope that Congress will not promptly on these proposals to help remind 
inmates that crime isn't supposed to pay.

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