‘(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 not use any part of the grant to provide assistance to any individual who has not been tested for illegal drug use under the program required under section 402(a)(8).
‘(B) TRANSITION RULE- In the case of an individual who is receiving assistance under the State program funded under this part on the effective date of the Drug Free Families Act of 2011, or whose application for assistance is approved before such date if such assistance has not begun as of such date, a State may not provide assistance to such individual unless such individual is tested for illegal drug use under the program described in subparagraph (A) after the 3rd month that begins 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 the Drug Free Families Act of 2011;
the State shall not provide assistance to the individual under the State program funded under this part unless such individual enters and successfully completes (as determined by the State) a drug rehabilitation or treatment program and does not test positive for illegal drug use in the 6-month period beginning on the date the individual enters such rehabilitation or treatment program. During such 6-month period the State may continue to provide assistance to an individual who has not been convicted of a felony drug-related crime, unless the individual tests positive for illegal drug use during such period. The State may test the individual for illegal drug use at random or set intervals, at the discretion of the State, after such period.
‘(D) WAITING PERIOD AFTER DENIAL OF BENEFITS- In the case of an individual who is denied assistance under subparagraph (C) because of failure to satisfy the requirements of such subparagraph, a State may not provide assistance to such individual under the State program funded under this part at any time during the 2-year period beginning on the date the individual is so denied.
‘(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 such individual under the State program funded under this part at any time 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- For purposes of 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 REHABILITATION OR TREATMENT PROGRAM- The term ‘drug rehabilitation or treatment program’ means a program determined by the State to provide treatment that can lead to the rehabilitation of drug users, but only if such program complies with all applicable Federal, State, and local laws and regulations.
‘(iii) DRUG-RELATED CRIME- The term ‘drug-related crime’ means any crime involving the possession, use, or sale of an illegal drug.’.