Amends GS 108A-29.1 as the title indicates. Requires the Department of Health and Human Services (DHHS) to develop a program toscreen each applicant or recipient who is otherwise eligible for Work First Program assistance under Article 2 of GS Chapter 108A for illegal use of controlled substances. Requires DHHS to test individuals whom DHHS has reasonable cause, based on the screening, to believe is engaging in the the illegal use of controlled substances, using a urine dipstick five-panel test.

Provides that any applicant or recipient (1) who tests positive for a controlled substance not prescribed to that individual by a licensed health care provideror (2) who refuses to be tested is declared, after an administrative hearing conducted by DHHS under GS Chapter 150A, to be ineligible for Work First Program assistancefor a three-year period dating from the administrative hearing. Provides for a restoration of eligibility for an applicant or recipient who successfully completes a substance abuse treatment program and does not test positive for illegal use of a controlled substance in the six-month period beginning on the date of entry into the rehabilitation or treatment program. Allows the applicant or recipient to continue to receive benefits while participating in the treatment program. Authorizes DHHS, at its discretion,to randomly or at set intervals test the applicant or recipient for illegal drug use.

Provides that an applicant or recipient testing positive for use of illegal drugs for a second time is to be declared ineligible for Work First Program assistance for a three-year period from the date of the administrative hearing decision. Directs DHHS to refer an applicant or recipient testing positive for the use of a controlled substance to an appropriate substance abuse treatment program approved by DHHS.

Requires case workers of applicants or recipients to report or cause to be reported suspectedchild abuse to child protective services if the case worker has knowledge that an applicant or recipient (1) has tested positive for the illegal use of a controlled substance or (2) has refused to be tested for the illegal use of a controlledsubstance.

Provides for continuation of Work First Program assistance benefitsto other members of a household, including a person who has been declared ineligible for Work First benefits, if otherwise eligible,but requires the benefits to be paid to a protective payee under GS 108A-38.

Requires the Social Services Commission to adopt rules pertaining to the screening and testing of applicants and recipients under this section. Deletes provisions that make area mental health authorities responsible for administering the provisions of this section and permitting the requirements of this section to be modified to the degree necessary to comply with Medicaid eligibility provisions. Also deletes provision requiring an applicant or recipient of Work First Program assistance benefits identified as having a substance abuse problem to receive substance abuse treatment as a condition of receiving benefits.