text: 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.
target: 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.
feat_title: To amend title III of the Social Security Act to require a substance abuse risk assessment and targeted drug testing as a condition for the receipt of unemployment benefits, and for other purposes.