II
Calendar No. 656
105TH CONGRESS
2D SESSION
H.R. 3853
[Report No. 105–348]
IN THE SENATE OF THE UNITED STATES
JUNE 24, 1998
Received; read twice and referred to the Committee on Small Business
SEPTEMBER 25, 1998
Reported by Mr. BOND, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To promote drug-free workplace programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Drug-Free Workplace
Act of 1998’’.
SEC. 2. FINDINGS; PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) 74 percent of adults who use illegal drugs
are employed;
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(2) small business concerns employ over 50 per-
cent of the Nation’s workforce;
(3) in over 88 percent of families with children
under the age of 18, at least 1 parent is employed;
and
(4) employees who use and abuse addictive sub-
stances increase costs for businesses and risk the
health and safety of all employees because—
(A) absenteeism is 66 percent higher
among drug users than nondrug users;
(B) health benefit utilization is 300
percent higher among drug users than
nondrug users;
(C) 47 percent of workplace accidents
are drug-related;
(D) disciplinary actions are 90 per-
cent
higher
among
drug
users
than
nondrug users; and
(E) employee turnover is significantly
higher among drug users than nondrug
users.
(b) PURPOSES.—The purposes of this Act are to—
(1) educate small business concerns about the
advantages of a drug-free workplace;
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SEC. 4. DRUG-FREE WORKPLACE DEMONSTRATION PRO-
GRAM.
The Small Business Act (15 U.S.C. 636 et seq.) is
amended by—
(1) redesignating sections 31 and 32 as sections
32 and 33, respectively; and
(2) inserting the following new section:
‘‘SEC. 31. DRUG-FREE WORKPLACE DEMONSTRATION PRO-
GRAM.
‘‘(a) ESTABLISHMENT.—There is established a drug-
free workplace demonstration program, under which the
Administration may make grants, cooperative agreements,
or contracts to eligible intermediaries for the purpose of
providing financial and technical assistance to small busi-
ness concerns seeking to start a drug-free workplace pro-
gram.
‘‘(b) ELIGIBILITY FOR PARTICIPATION.—An inter-
mediary shall be eligible to receive a grant, cooperative
agreement, or contract under subsection (a) if it meets
the following criteria:
‘‘(1) It is an organization described in section
501(c)(3) or 501(c)(6) of the Internal Revenue Code
of 1986 that is exempt from tax under section 5(a)
of such Act, a program of such organization, or pro-
vides services to such organization.
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‘‘(2) Its purpose is to develop comprehensive
drug-free workplace programs or to supply drug-free
workplace services, or provide other forms of assist-
ance and services to small businesses.
‘‘(3) It has at least 2 years of experience in
drug-free workplace programs or in providing assist-
ance and services to small business concerns.
‘‘(4) It has a drug-free workplace policy in ef-
fect.
‘‘(c) REQUIREMENTS FOR PROGRAM.—Any drug-free
workplace program developed as a result of this section
shall include—
‘‘(1) a written policy, including a clear state-
ment of expectations for workplace behavior, prohibi-
tions against substances in the workplace, and the
consequences of violating such expectations and pro-
hibitions;
‘‘(2) training for at least 2 hours for employees;
‘‘(3) additional training for employees who are
parents;
‘‘(4) employee drug testing by a drug testing
laboratory certified by the Substance Abuse and
Mental Health Services Administration, or approved
by the Department of Health and Human Services
under the Clinical Laboratories Improvements Act of
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1967 (42 U.S.C. 263a), or the College of American
Pathologists, and each positive result shall be re-
viewed by a Licensed Medical Review Officer;
‘‘(5) employee access to an employee assistance
program, including assessment, referral, and short-
term problem resolution; and
‘‘(6) continuing alcohol and drug abuse preven-
tion program.
‘‘(d) EVALUATION AND COORDINATION.—The Small
Business Administrator, in coordination with the Sec-
retary of Labor, the Secretary of Health and Human Serv-
ices, and the Director of the Office of National Drug Con-
trol Policy, shall evaluate drug-free workplace programs
established as a result of this section and shall submit a
report of findings to the Congress not later than 1 year
after the date of the enactment of this section.
‘‘(e) ELIGIBLE INTERMEDIARY.—Any eligible inter-
mediary shall be located in a state, the District of Colum-
bia, or the territories.
‘‘(f) DEFINITION OF EMPLOYEE.—For purposes of
this section, the term ‘employee’ includes—
‘‘(1) supervisors;
‘‘(2) managers;
‘‘(3) officers active in management of the busi-
ness; and
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‘‘(4) owners active in management of the busi-
ness.
‘‘(g) CONSTRUCTION.—Nothing in this section shall
be construed to require an employer who attends a pro-
gram offered by an intermediary to contract for any serv-
ices offered as part of a drug-free workplace program.
‘‘(h) AUTHORIZATION.—There are authorized to be
appropriated to carry out the provisions of this section,
$10,000,000 for fiscal year 1999 and such sums may re-
main available until expended.’’.
SEC. 5. SMALL BUSINESS DEVELOPMENT CENTERS.
Section 21(c)(3) of the Small Business Act (15
U.S.C. 648(c)(3)) is amended—
(1) in subparagraph (R) by striking ‘‘and’’;
(2) in subparagraph (S) by striking the period
and inserting ‘‘; and’’; and
(3) by inserting after subparagraph (S) the fol-
lowing new subparagraph:
‘‘(T) providing information and assistance to
small business concerns with respect to developing
drug-free workplace programs.’’.
SEC. 6. CONTRACT AUTHORITY.
The Small Business Administrator may contract with
and compensate government and private agencies or per-
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sons for services related to carrying out the provisions of
this Act.
SEC. 7. COLLECTION OF DATA AND STUDY.
(a) COLLECTION AND STUDY.—The Small Business
Administrator shall collect data and conduct a study on—
(1) drug use in the workplace among employees
of small business concerns;
(2) costs to small business concerns associated
with illegal drug use by employees; and
(3) a need for assistance in the small business
community to develop drug prevention programs.
(b) REPORT.—Not later than 6 months after the date
of the enactment of this Act, the Small Business Adminis-
trator shall submit a report containing findings and con-
clusions of the study to the chairmen and ranking mem-
bers of the Small Business Committees of the House and
Senate.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Drug-Free Workplace
Act of 1998’’.
SEC. 2. FINDINGS; PURPOSES.
(a) FINDINGS.—Congress finds that—
(1) 74 percent of adults who use illegal drugs are
employed;
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(2) small business concerns employ over 50 per-
cent of the Nation’s workforce;
(3) in more than 88 percent of families with
children under the age of 18, at least 1 parent is em-
ployed; and
(4) employees who use and abuse addictive ille-
gal drugs and alcohol increase costs for businesses and
risk the health and safety of all employees because—
(A) absenteeism is 66 percent higher among
drug users than individuals who do not use
drugs;
(B) health benefit utilization is 300 percent
higher among drug users than individuals who
do not use drugs;
(C) 47 percent of workplace accidents are
drug-related;
(D) disciplinary actions are 90 percent
higher among drug users than among individ-
uals who do not use drugs; and
(E) employee turnover is significantly high-
er among drug users than among individuals
who do not use drugs.
(b) PURPOSES.—The purposes of this Act are to—
(1) educate small business concerns about the ad-
vantages of a drug-free workplace;
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(2) provide grants and technical assistance in
addition to financial incentives to enable small busi-
ness concerns to create a drug-free workplace;
(3) assist working parents in keeping their chil-
dren drug-free; and
(4) encourage small business employers and em-
ployees alike to participate in drug-free workplace
programs.
SEC. 3. SENSE OF CONGRESS.
It is the sense of Congress that—
(1) businesses should adopt drug-free workplace
programs;
(2) States should consider incentives to encour-
age businesses to adopt drug-free workplace programs;
and
(3) such incentives may include—
(A) financial incentives, including—
(i) a reduction in workers’ compensa-
tion premiums;
(ii) a reduction in unemployment in-
surance premiums; and
(iii) tax deductions in an amount
equal to the amount of expenditures for em-
ployee assistance programs, treatment, or il-
legal drug testing; and
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(B) other incentives, such as the adoption of
liability limitations, as recommended by the
President’s Commission on Model State Drug
Laws.
SEC. 4. DRUG-FREE WORKPLACE DEMONSTRATION PRO-
GRAM.
Section 27 of the Small Business Act (15 U.S.C. 654)
is amended to read as follows:
‘‘SEC. 27. DRUG-FREE WORKPLACE DEMONSTRATION PRO-
GRAM.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) DRUG-FREE
WORKPLACE
PROGRAM.—The
term ‘drug-free workplace program’ means a program
that includes—
‘‘(A) a written policy, including a clear
statement of expectations for workplace behavior,
prohibitions against reporting to work or work-
ing under the influence of illegal drugs or alco-
hol, prohibitions against the use or possession of
illegal drugs in the workplace, and the con-
sequences of violating those expectations and pro-
hibitions;
‘‘(B) drug and alcohol abuse prevention
training for a total of not less than 2 hours for
each employee, and additional voluntary drug
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and alcohol abuse prevention training for em-
ployees who are parents;
‘‘(C) employee illegal drug testing, with
analysis conducted by a drug testing laboratory
certified by the Substance Abuse and Mental
Health Services Administration, or approved by
the College of American Pathologists for forensic
drug testing, and a review of each positive test
result by a medical review officer;
‘‘(D) employee access to an employee assist-
ance program, including confidential assessment,
referral, and short-term problem resolution; and
‘‘(E) continuing alcohol and drug abuse
prevention education.
‘‘(2) ELIGIBLE INTERMEDIARY.—The term ‘eligi-
ble intermediary’ means an organization—
‘‘(A) that has not less than 2 years of expe-
rience in carrying out drug-free workplace pro-
grams;
‘‘(B) that has a drug-free workplace policy
in effect;
‘‘(C) that is located in a State, the District
of Columbia, or a territory of the United States;
and
‘‘(D) the purpose of which is—
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‘‘(i) to develop comprehensive drug-free
workplace programs or to supply drug-free
workplace services; or
‘‘(ii) to provide other forms of assist-
ance and services to small business con-
cerns.
‘‘(3) EMPLOYEE.—The term ‘employee’ includes
any—
‘‘(A) applicant for employment;
‘‘(B) employee;
‘‘(C) supervisor;
‘‘(D) manager;
‘‘(E) officer of a small business concern who
is active in management of the concern; and
‘‘(F) owner of a small business concern who
is active in management of the concern.
‘‘(4) MEDICAL
REVIEW
OFFICER.—The term
‘medical review officer’—
‘‘(A) means a licensed physician with
knowledge of substance abuse disorders; and
‘‘(B) does not include any—
‘‘(i) employee of the small business con-
cern; or
‘‘(ii) employee or agent of, or any per-
son having an financial interest in, the lab-
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oratory for which the illegal drug test re-
sults are being reviewed.
‘‘(b) ESTABLISHMENT.—There is established a drug-
free workplace demonstration program, under which the
Administrator may make grants to, or enter into coopera-
tive agreements or contracts with, eligible intermediaries for
the purpose of providing financial and technical assistance
to small business concerns seeking to establish a drug-free
workplace program.
‘‘(c) PRIVACY PROTECTION FOR EMPLOYEES PARTICI-
PATING IN A DRUG-FREE WORKPLACE PROGRAM.—Each
drug-free workplace program established with assistance
made available under this section shall—
‘‘(1) include, as reasonably necessary and appro-
priate, practices and procedures to ensure the con-
fidentiality of illegal drug test results and of any par-
ticipation by an employee in a rehabilitation pro-
gram;
‘‘(2) prohibit the mandatory disclosure of medi-
cal information by an employee prior to a confirmed
positive illegal drug test; and
‘‘(3) require that a medical review officer review-
ing illegal drug test results shall report only the final
results, limited to those drugs for which the employee
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tests positive, in writing and in a manner designed
to ensure the confidentiality of the results.
‘‘(d) EVALUATION
AND COORDINATION.—Not later
than 18 months after the date of enactment of the Drug-
Free Workplace Act of 1998, the Administrator, in coordi-
nation with the Secretary of Labor, the Secretary of Health
and Human Services, and the Director of the Office of Na-
tional Drug Control Policy, shall—
‘‘(1) evaluate the drug-free workplace programs
established with assistance made available under this
section; and
‘‘(2) submit to Congress a report describing the
results of the evaluation under paragraph (1).
‘‘(e) CONTRACT AUTHORITY.—In carrying out this sec-
tion, the Administrator may—
‘‘(1) contract with public and private entities to
provide assistance related to carrying out the pro-
gram under this section; and
‘‘(2) compensate those entities for provision of
that assistance.
‘‘(f) CONSTRUCTION.—Nothing in this section may be
construed to require an employer who attends a program
offered by an intermediary to contract for any service of-
fered by the intermediary.
‘‘(g) AUTHORIZATION.—