105TH CONGRESS
2D SESSION
H. R. 3853
AN ACT
To promote drug-free workplace programs.
105TH CONGRESS
2D SESSION
H. R. 3853
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;
(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;
(2) provide financial incentives and technical
assistance to enable small business concerns to cre-
ate a drug-free workplace; and
(3) assist working parents in keeping their chil-
dren drug-free.
SEC. 3. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) businesses should adopt drug-free workplace
programs; and
(2) States should consider incentives to encour-
age businesses to adopt drug-free workplace pro-
grams. Financial incentives may include—
(A) a reduction in workers’ compensation
premiums;
(B) a reduction in unemployment insur-
ance premiums; and
(C) tax deductions in an amount equal to
the amount of expenditures for employee assist-
ance programs, treatment, or drug testing.
Other incentives may include adoption of liability
limitation as recommended by the President’s Com-
mission on Model State Drug Laws.
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.
‘‘(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
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
‘‘(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-
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.
Passed the House of Representatives June 23, 1998.
Attest:
Clerk.