article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Ensuring Quality in the Unemployment Insurance Program (EQUIP) Act''. SEC. 2. DRUG SCREENING MADE A CONDITION OF BENEFIT RECEIPT. (a) In General.--Section 303 of the Social Security Act (42 U.S.C. 503) is amended by adding at the end the following: ``(l)(1) For purposes of subsection (a), the State law (as defined in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note)) of a State shall provide the following: ``(A) No regular compensation may be paid to an applicant for such compensation with respect to a benefit year unless, before the receipt of any such compensation-- ``(i) the applicant has completed a substance abuse risk assessment for such benefit year; and ``(ii) subject to subparagraph (B), if the State determines based on the results of such assessment that the applicant is a high-risk applicant, not later than 1 week after the results of the assessment are determined, the applicant tests negative for controlled substances. ``(B) If a high-risk applicant tests positive for any controlled substance-- ``(i) if such test result is the first positive test result for such applicant in the benefit year-- ``(I) no regular compensation may be paid to such applicant for a period of 30 days beginning on the date that such test result is determined; and ``(II) no regular compensation may be paid to such applicant during the remainder of such benefit year unless the applicant tests negative for controlled substances at the end of such period; ``(ii) if such test result is not the first positive test result for such applicant in the benefit year, no regular compensation may be paid to such applicant during the remainder of such benefit year. ``(C) A high-risk applicant receiving benefits with respect to a benefit year shall be subject to testing for controlled substances by the State at any time during the benefit year, with limited notice provided to the applicant of such testing. ``(D) A high-risk applicant who is tested for controlled substances under-- ``(i) subparagraph (A) or (C) shall be responsible for the cost of such test if the individual tests positive for any such substance; and ``(ii) subparagraph (B)(i)(II) shall be responsible for the cost of such test. ``(2) For purposes of this subsection-- ``(A) the term `benefit year' means the benefit year as defined in the applicable State law; ``(B) the term `controlled substance'-- ``(i) means a drug or other substance selected by the State to be included in drug testing under this subsection; and ``(ii) does not include any drug or other substance used by the applicant pursuant to a valid prescription or as otherwise authorized by law; ``(C) the term `high-risk applicant', with respect to a benefit year, means an individual who is determined by the State to have a high risk of substance abuse based on the results of a substance abuse risk assessment administered under paragraph (1)(A)(i); and ``(D) the term `substance abuse risk assessment' means a screening instrument, approved by the Director of the National Institutes of Health, designed to determine whether an individual has a high risk of substance abuse.''. (b) No Merit Staffing Requirements.--Section 303(a)(1) of the Social Security Act (42 U.S.C. 503(a)(1)) shall not be construed in such a manner as to apply the merit staffing requirements in section 900.603 of title 5, Code of Federal Regulations, as in effect on October 1, 2011, to the implementation of section 303(l) of such Act (as amended by subsection (a)). (c) Funding for Substance Abuse Testing.-- (1) Funding from ipab.--Section 1899A(m) of the Social Security Act is amended-- (A) in paragraph (1), in the matter preceding subparagraph (A), by striking ``to the Board to carry'' and inserting ``for the purposes of carrying out section 303(l), and, if any funds remain in the fiscal year involved, for the Board for the purpose of carrying''; and (B) by striking paragraph (2). (2) Funding from the co-op program.--Section 1322(g) of the Patient Protection and Affordable Care Act is amended by striking ``to carry out this section.'' and inserting ``to carry out section 303(l) of the Social Security Act, to the extent funds are necessary to carry out such section after the application of section 1899A(m)(1) of such Act.''. (d) Effective Date.-- (1) In general.--Except as provided in paragraph (2), the amendment made by subsection (a) shall take effect on the date that is 180 days after the date of the enactment of this Act. (2) Delay permitted if legislation pending.--If a State applies to the Secretary of Labor to delay implementation of the requirements of section 303(l) of the Social Security Act (42 U.S.C. 503(l)) on the grounds that legislation to implement such requirements is pending in the State legislature on the date that is 180 days after the date of the enactment of this Act, the Secretary shall not refuse certification for payment to the State under section 302 of such Act solely on the basis of the failure of the State to implement such requirements before such date.
summary: Ensuring Quality in the Unemployment Insurance Program (EQUIP) Act - Amends title III (Grants to States for Unemployment Compensation Administration) of the Social Security Act (SSA) to require state unemployment compensation (UC) laws to require, as a condition of UC eligibility for a benefit year, an applicant, before receiving any UC, to: (1) complete a substance abuse risk assessment; and (2) test negative for controlled substances within one week after the results of such assessment if the state determines that the applicant is a high-risk. Prescribes retesting requirements and UC payment suspensions for applicants who test positive. Amends SSA title XVIII (Medicare) and the Patient Protection and Affordable Care Act to provide funding for such substance abuse testing out of current funds appropriated for the Independent Payment Advisory Board (IPAB) and, after application of those funds, for the Consumer Operated and Oriented Plan (CO-OP) program.