SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Welfare Integrity Act of 2011''.

SEC. 2. DRUG TESTING PROGRAM FOR APPLICANTS FOR AND RECIPIENTS OF 
              ASSISTANCE UNDER STATE TANF PROGRAMS.

    (a) State Plan Requirement of Drug Testing Program.--Section 402(a) 
of the Social Security Act (42 U.S.C. 602(a)) is amended by adding at 
the end the following:
            ``(8) Certification that the state will operate an illegal 
        drug use testing program.--
                    ``(A) In general.--A certification by the chief 
                executive officer of the State that the State will--
                            ``(i) operate a program to conduct, in a 
                        calendar year, random testing for the use of 
                        illegal drugs (as defined in section 
                        408(a)(12)(G)(i)) of a number of applicants for 
                        assistance under the program referred to in 
                        paragraph (1) that is not less than 20 percent 
                        of the number of applicants who applied for the 
                        assistance in the preceding calendar year 
                        (after having signed a waiver of constitutional 
                        rights with respect to the testing); and
                            ``(ii) deny the assistance to applicants 
                        who test positive for illegal drug use or who 
                        are convicted of drug-related crimes, as 
                        required by such section.
                    ``(B) Requirement for continued testing.--The 
                program described in subparagraph (A)(i) shall include 
                a plan to continue testing individuals receiving 
                assistance under the program referred to in paragraph 
                (1) for illegal drug use at random or set intervals 
                after the initial testing of the individuals, at the 
                discretion of the State agency administering the 
                program so referred to.''.
    (b) Requirement That Applicants and Individuals Receiving 
Assistance Be Tested for Illegal Drug Use.--Section 408(a) of such Act 
(42 U.S.C. 608(a)) is amended by adding at the end the following:
            ``(12) Requirement for drug testing; denial of assistance 
        for individuals found to have used illegal drugs and 
        individuals convicted of drug-related offenses.--
                    ``(A) In general.--A State to which a grant is made 
                under section 403 shall operate a drug testing program 
                that complies with the requirements of subparagraphs 
                (A)(i) and (B) of section 402(a)(8).
                    ``(B) Waiver of constitutional rights.--The State 
                may not use any part of the grant to provide assistance 
                to any individual who has not signed a waiver of 
                constitutional rights with respect to testing conducted 
                pursuant to subparagraph (A). In the case of an 
                individual who is receiving assistance under the State 
                program funded under this part on the effective date of 
                this paragraph, or whose application for the assistance 
                is approved before such date if the assistance has not 
                begun as of such date, a State may not provide the 
                assistance to the individual unless the individual has 
                signed such a waiver not later than 90 days after such 
                date.
                    ``(C) Denial of assistance for individuals who test 
                positive for illegal drug use and individuals convicted 
                of drug-related crimes.--In the case of--
                            ``(i) an individual who tests positive for 
                        illegal drug use under the program described in 
                        subparagraph (A); or
                            ``(ii) an individual who is convicted of a 
                        drug-related crime after the effective date of 
                        this paragraph;
                the State shall not provide assistance to the 
                individual under the State program funded under this 
                part until the expiration of the waiting period 
                described in subparagraph (D).
                    ``(D) Waiting period after denial of benefits.--The 
                waiting period described in this subparagraph shall 
                extend 1 year after the date on which the individual is 
                denied assistance under subparagraph (C).
                    ``(E) Permanent denial of assistance after third 
                drug-related denial.--In the case of an individual who 
                is denied assistance under subparagraph (C) 3 times, as 
                a result of 3 separate positive tests for illegal drug 
                use, 3 separate convictions for drug-related crimes 
                (not including convictions that are imposed 
                concurrently in time), or any combination of 3 such 
                separate tests or convictions, a State may not provide 
                assistance to the individual under the State program 
                funded under this part after the 3rd such test or 
                conviction.
                    ``(F) Limitation on waiver authority.--The 
                Secretary may not waive the provisions of this 
                paragraph under section 1115.
                    ``(G) Definitions.--In this paragraph:
                            ``(i) Illegal drug.--The term `illegal 
                        drug' means a controlled substance as defined 
                        in section 102 of the Controlled Substances Act 
                        (21 U.S.C. 802).
                            ``(ii) Drug-related crime.--The term `drug-
                        related crime' means any crime involving the 
                        possession, use, or sale of an illegal drug.''.
    (c) Penalty for Failure To Implement Illegal Drug Use Testing 
Program.--Section 409(a) of such Act (42 U.S.C. 609(a)) is amended by 
adding at the end the following:
            ``(16) Penalty for failure to implement illegal drug use 
        testing program.--If the Secretary determines that a State to 
        which a grant is made under section 403 in a fiscal year has 
        violated section 408(a)(12) during the fiscal year, the 
        Secretary shall reduce the grant payable to the State under 
        section 403(a)(1) for the immediately succeeding fiscal year by 
        an amount equal to 10 percent of the State family assistance 
        grant.''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), 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 that is 1 year after the date of the enactment of this 
        Act.
            (2) Delay permitted if state legislation required.--In the 
        case of a State plan under section 402(a) of the Social 
        Security Act which the Secretary of Health and Human Services 
        determines requires State legislation (other than legislation 
        appropriating funds) in order for the plan to meet the 
        additional requirements imposed by the amendments made by this 
        Act, the State plan shall not be regarded as failing to comply 
        with the requirements of such section 402(a) solely on the 
        basis of the failure of the plan to meet such additional 
        requirements before the 1st day of the 1st calendar quarter 
        beginning after the close of the 1st regular session of the 
        State legislature that begins after the date of enactment of 
        this Act. For purposes of the previous sentence, in the case of 
        a State that has a 2-year legislative session, each year of 
        such session shall be deemed to be a separate regular session 
        of the State legislature.
Welfare Integrity Act of 2011 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act to require state TANF programs to operate a program to conduct random testing of TANF applicants and recipients for illegal drug use.

Requires state TANF programs to deny assistance to individuals who test positive for illegal drugs and individuals convicted of drug-related crimes.

Prescribes an administrative penalty for failure to implement illegal drug use testing.
To amend title IV of the Social Security Act to require States to implement a drug testing program for applicants for and recipients of assistance under the Temporary Assistance for Needy Families (TANF) program.