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103D CONGRESS

2D SESSION H. R. 3929

To amend titles II and XVI of the Social Security Act to provide that,

for purposes of determining whether an individual is under a disability,

engagement in an illegal drug-related enterprise demonstrates ability

to engage in substantial gainful activity.

IN THE HOUSE OF REPRESENTATIVES

MARCH 1, 1994

Mr. HERGER introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend titles II and XVI of the Social Security Act

to provide that, for purposes of determining whether

an individual is under a disability, engagement in an

illegal drug-related enterprise demonstrates ability to engage in substantial gainful activity.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. ENGAGEMENT IN ILLEGAL DRUG-RELATED EN2 TERPRISE TREATED AS DEMONSTRATION OF

3 ABILITY TO ENGAGE IN SUBSTANTIAL GAIN4 FUL ACTIVITY.

5 (a) DISABILITY INSURANCE.—Section 223(d)(4) of

6 the Social Security Act (42 U.S.C. 423(d)(4)) is amend7 ed—

8 (1) by inserting ‘‘(A)’’ after ‘‘(4)’’; and

9 (2) by adding at the end the following new sub10 paragraph:

11 ‘‘(B)(i) The criteria referred to in the first sentence

12 of subparagraph (A) shall provide that engagement by an

13 individual in an illegal drug-related enterprise for any re14 muneration, or any earnings derived by an individual from

15 engagement in such an enterprise, are sufficient to dem16 onstrate such individual’s ability to engage in substantial

17 gainful activity.

18 ‘‘(ii) For purposes of clause (i), the term ‘illegal drug19 related enterprise’ means the distribution, manufacture,

20 cultivation, sale, or transfer of, or the attempt or conspir21 acy to distribute, manufacture, cultivate, sell, or transfer,

22 any substance the possession of which is prohibited under

23 the Controlled Substances Act.’’.

24 (b) SUPPLEMENTAL SECURITY INCOME.—Section

25 1614(a)(3)(D) of such Act (42 U.S.C. 1382c(a)(3)(D)) is

26 amended—
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1 (1) by inserting ‘‘(i)’’ after ‘‘(D)’’; and

2 (2) by adding at the end the following new

3 clause:

4 ‘‘(ii)(I) The criteria referred to in the first sentence

5 of clause (i) shall provide that engagement by an individ6 ual in an illegal drug-related enterprise for any remunera7 tion, or any earnings derived by an individual from en8 gagement in such an enterprise, are sufficient to dem9 onstrate such individual’s ability to engage in substantial

10 gainful activity.

11 ‘‘(II) For purposes of subclause (I), the term ‘illegal

12 drug-related enterprise’ means the distribution, manufac13 ture, cultivation, sale, or transfer of, or the attempt or

14 conspiracy to distribute, manufacture, cultivate, sell, or

15 transfer, any substance the possession of which is prohib16 ited under the Controlled Substances Act.’’.

17 SEC. 2. EFFECTIVE DATE.

18 The amendments made by this Act shall apply with

19 respect to determinations of disability made after Decem20 ber 31, 1994. The Secretary of Health and Human Serv21 ices shall by regulations revise the criteria referred to in

22 the first sentence of section 223(d)(4)(A) of the Social Se23 curity Act (as amended by this Act) and the first sentence

24 of section 1614(a)(3)(D)(i) of such Act (as amended by

25 this Act) not later than December 31, 1994, so as to con-
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1 form to the requirements of the amendments made by this

2 Act.

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