(1)    In this section:

      (a)    “Administering agency” means the department or an agency with which the department contracts to administer a program.

      (b)    “Controlled substance” has the meaning given in s. 961.01 (4).

      (bg)    “Controlled substance abuse screening” means a questionnaire, a criminal background check, or any other controlled substance abuse screening mechanism identified by the department by rule.

      (bm)    “Dependent child” has the meaning given in s. 49.141 (1) (c).

      (br)    “Group member” means an adult member of an individual’s Wisconsin Works group whose income or assets are included in determining the individual’s eligibility for a program.

      (c)    “Program” means any of the following:

         1.    Services and benefits under s. 49.159 (1) (b).

         2.    The Transform Milwaukee Jobs program or the Transitional Jobs program under s. 49.163.

         3.    A work experience and job training program under s. 49.36.

         4.    A Wisconsin Works employment position.

         4m.    The Hire Heroes program under s. 106.38.

      (e)    “Wisconsin Works” has the meaning given in s. 49.141 (1) (p).

      (f)    “Wisconsin Works employment position” has the meaning given in s. 49.141 (1) (r).

      (g)    “Wisconsin Works group” has the meaning given in s. 49.141 (1) (s).

   (2)   

      (a)    Except as provided in sub. (2m), in order to participate in a program, an individual who applies to participate in a program or who registers for a program under sub. (1) (c) 3. and, with respect to an individual applying for a program under sub. (1) (c) 4., all of the individual’s group members shall complete controlled substance abuse screening. If, on the basis of the screening results, the administering agency determines that there is a reasonable suspicion that an individual who is otherwise eligible for a program or any of the individual’s group members is abusing a controlled substance, the administering agency shall require the individual or group member to undergo a test for the use of a controlled substance.

      (b)    Except as provided in sub. (4m), if the individual or group member refuses to submit to a test under par. (a), the individual is not eligible to participate in a program until the individual or group member complies with the requirement to undergo a test for the use of a controlled substance.

   (2m)   

      (a)    The screening and testing requirements under sub. (2) do not apply to an individual if the individual is any of the following:

         1.    A custodial parent of a child who is 8 weeks old or less.

         2.    A woman who is in a pregnancy that is medically verified and that is shown by medical documentation to be at risk.

         3.    A participant in a Wisconsin Works employment position who moves to an unsubsidized employment position and receives case management services under s. 49.1475.

         4.    A dependent child.

      (b)    The screening and testing requirements under sub. (2) do not apply to a group member if the group member is any of the following:

         1.    A custodial parent of a child who is 8 weeks old or less.

         2.    A woman who is in a pregnancy that is medically verified and that is shown by medical documentation to be at risk.

         3.    Specified as exempt from the screening and testing requirements by department rule.

   (3)   If an individual or group member who undergoes a test under sub. (2) tests negative for the use of a controlled substance, or tests positive for the use of a controlled substance but presents evidence satisfactory to the administering agency that the individual or group member possesses a valid prescription for each controlled substance for which the individual or group member tests positive, the individual or group member will have satisfactorily completed the substance abuse testing requirements under this section.

   (4)   

      (a)    If an individual or group member who undergoes a test under sub. (2) tests positive for the use of a controlled substance without presenting evidence of a valid prescription as described in sub. (3), the administering agency shall require the individual or group member to participate in substance abuse treatment to remain eligible to participate in a program. If the individual or group member refuses to participate in substance abuse treatment, the individual is not eligible to participate in a program until the individual or group member complies with the requirement to participate in substance abuse treatment.

      (b)    During the time that an individual or group member is receiving substance abuse treatment under par. (a), the administering agency shall require the individual or group member to undergo random testing for the use of a controlled substance. Except as provided in sub. (4m), for the individual to remain eligible for a program, the individual or his or her group member must cooperate with the testing and the results of the tests must be negative or, if any results are positive, the individual or group member must present evidence of a valid prescription as described in sub. (3). If the results of any test during treatment are positive for the use of a controlled substance and the individual or group member does not present evidence of a valid prescription for the controlled substance, the individual or group member shall have the opportunity to begin the treatment again one time, as determined by the administering agency. Except as provided in sub. (4m), if the individual or group member begins the substance abuse treatment again, the individual remains eligible for a program as long as the results of all tests for the use of a controlled substance during the subsequent treatment are negative for the use of a controlled substance or, if any results are positive, the individual or group member presents evidence of a valid prescription for the controlled substance.

      (c)    If an individual or group member receiving treatment under par. (b) completes treatment and, at the conclusion of the treatment, tests negative for the use of a controlled substance or presents evidence of a valid prescription for any controlled substance for which the individual or group member tests positive, the individual or group member will have satisfactorily completed the substance abuse testing requirements under this section.

   (4m)   

      (a)    If an individual applying for a community service job under s. 49.147 (4) or a transitional placement under s. 49.147 (5) or his or her group member undergoes a test under sub. (2), tests positive for the use of a controlled substance without presenting evidence of a valid prescription as described in sub. (3), and refuses to participate in substance abuse treatment under sub. (4) (a) or if the individual or his or her group member fails to cooperate with the testing or treatment requirements under sub. (4) (b), the individual remains eligible only for the monthly grant portion of the community service job or transitional placement under s. 49.148 (1) (b) or (c) and only to the extent described in par. (b).

      (b)   

         1.    In determining the monthly grant for which an individual is eligible under par. (a), the department shall reduce the amount that would otherwise have been established under s. 49.148 (1) (b) or (c) by an amount that reflects the fact that the monthly grant is to be used exclusively for the benefit of the dependent children in the individual’s Wisconsin Works group and not for the benefit of the individual.

         2.    If an individual is eligible for a monthly grant under the circumstances described in par. (a), the department shall pay the monthly grant through a protective payee structure, under which the monthly grant is paid to a protective payee who is not the individual and who holds the money and uses it exclusively for the benefit of the dependent children in the individual’s Wisconsin Works group.

         3.    An individual’s partial eligibility under par. (a) ends on the earlier of the following dates:

            a.    The date on which the individual again becomes eligible for full participation in a Wisconsin Works employment position.

            b.    Twelve months after the date on which the individual or his or her group member meets the circumstances described under par. (a), as determined by the department.

   (5)   The department shall manage the costs and reinvest the savings under this section, and shall work with the administering agency, if different from the department, to manage the costs and reinvest the savings.

   (6)   From the appropriation under s. 20.437 (2) (em), the department shall pay substance abuse treatment costs under this section that are not otherwise covered by medical assistance under subch. IV, private insurance, or another type of coverage. If treatment costs payable by the department exceed the moneys available under s. 20.437 (2) (em), the department shall request the joint committee on finance to take action under s. 13.101. The requirement of a finding of emergency under s. 13.101 (3) (a) 1. does not apply to such a request.

   (7)   The department shall promulgate rules to implement the substance abuse screening, testing, and treatment requirements under this section and the monthly grant eligibility and protective payee structure under sub. (4m).