S.Amdt. 4358

SA 4358. Mr. HATCH submitted an amendment intended to be proposed to
amendment SA 4301 proposed by Mr. Baucus to the bill H.R. 4213, to
amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes; which was ordered to lie on the
table; as follows:

At the end of title V, insert the following:

Subtitle C--Drug Testing and Treatment Programs

SEC. --. DRUG TESTING AND TREATMENT PROGRAM FOR APPLICANTS
FOR STATE TANF PROGRAMS.

(a) State Plan Requirement of Drug Testing and Treatment
Program.--Section 402(a) of the Social Security Act (42
U.S.C. 602(a)) is amended by adding at the end the following
new paragraph:
``(8) Certification that the state will operate an illegal
drug use testing and treatment program.--
``(A) In general.--A certification by the chief executive
officer of the State that the State will operate a program to
test all new applicants for assistance under the State
program funded under this part for the use of illegal drugs
(as defined in section 408(a)(12)(D)(i)), and (except as
provided in subparagraph (B)) to deny assistance under such
State program to individuals who test positive for illegal
drug use, as required by such section.
``(B) Assistance and repeat testing.--The program described
in subparagraph (A) shall include a plan to make all
reasonable effort to provide individuals who test positive
for illegal drug use with services under State or federally
funded drug treatment programs, and to allow individuals who
test positive at the first test to repeat the drug test after
60 days upon request by the individual. If such an individual
tests negative for illegal drug use at the second test, the
State may provide assistance to such individual under the
State program funded under this part.''.
(b) Requirement That Applicants Be Tested for Illegal Drug
Use.--Section 408(a) of the Social Security Act (42 U.S.C.
608(a)) is amended by adding at the end the following new
paragraph:
``(12) Requirement for drug testing.--
``(A) In general.--A State to which a grant is made under
section 403 shall not use any part of the grant to provide
assistance to any individual who applies for assistance on or
after the effective date of the American Jobs and Closing Tax
Loopholes Act of 2010, who has not been tested for illegal
drug use under the program required under section 402(a)(8).
``(B) Denial of assistance for individuals who test
positive for illegal drug use.--In the case of an individual
who tests positive for illegal drug use under the program
described in subparagraph (A), the State shall not provide
assistance to the individual under the State program funded
under this part except as provided in section 402(a)(8)(B).
``(C) Limitation on waiver authority.--The Secretary may
not waive the provisions of this paragraph under section
1115.
``(D) Illegal drug.--For purposes of this paragraph, the
term `illegal drug' means a controlled substance as defined
in section 102 of the Controlled Substances Act (21 U.S.C.
802)).''.
(c) Effective Date.--The amendments made by this section
shall take effect on the 1st day of the 1st calendar quarter
that begins on or after the date of the enactment of this
Act.

SEC. --. DRUG TESTING AND TREATMENT PROGRAM FOR APPLICANTS
FOR UNEMPLOYMENT COMPENSATION.

(a) In General.--Section 3304(a) of the Internal Revenue
Code of 1986 (relating to approval of State unemployment
compensation laws) is amended--
(1) in paragraph (18), by striking ``and'' at the end;
(2) by redesignating paragraph (19) as paragraph (20); and
(3) by inserting after paragraph (18) the following new
paragraph:
``(19) the State--
``(A) is required to operate a program to test all new
applicants for unemployment compensation for the use of
illegal drugs (as defined in section 408(a)(12)(D) of the
Social Security Act);
``(B) makes all reasonable efforts to provide individuals
who test positive for illegal drug use with services under
State or federally funded drug treatment programs;
``(C) allows individuals who test positive at the first
test to repeat the drug test after 60 days upon request by
the individual;
``(D) denies unemployment compensation to individuals who
test positive for illegal drug use or who have not been
tested for illegal drug use under the program (except that in
the case of an individual who tests positive for illegal drug
use at the first test, compensation shall not be denied based
on such test if the individual tests negative for illegal
drug use at the second test under subparagraph (C); and''.
(b) Effective Date.--The amendments made by this section
shall take effect on the 1st day of the 1st calendar quarter
that begins on or after the date of the enactment of this
Act.

SEC. --. REDUCTION OF HHS DISCRETIONARY FUNDING AND
APPROPRIATION OF FUNDS.

(a) In General.--The budget authority provided for each
discretionary account within the Department of Health and
Human Services shall be reduced for fiscal year 2010 and each
fiscal year thereafter by such account's pro rata share of
the amount equal to the aggregate State administrative cost
amounts for the fiscal year.
(b) Appropriation of Funds.--For each fiscal year beginning
with fiscal year 2010, an amount equal to the total amount of
the budget authority reduction required under subsection (a)
for such fiscal year is appropriated, and shall be
transferred to the States, for the purpose of implementing
the Federal benefit drug testing requirements in such fiscal
year. The amount transferred to each State for a fiscal year
shall be equal to the State administrative cost amount with
respect to such State for such year.
(c) State Administrative Cost Amount.--For purposes of this
section, the State administrative cost amount is, with
respect to each State and a fiscal year, the cost the State
will incur to implement the Federal benefit drug testing
requirements during the fiscal year, as estimated and
reported by the State to the Secretary of the Treasury.
(d) Federal Benefit Drug Testing Requirements.--For
purposes of this section, the term ``Federal benefit drug
testing requirements'' means the requirements imposed by
sections 402(a)(8) and 408(a)(12) of the Social Security Act
(42 U.S.C. 602(a)(8) and 608(a)(12), respectively), and
section 3304(a)(19) of the Internal Revenue Code of 1986.
______