IIA
105TH CONGRESS
2D SESSION H. R. 3853
IN THE SENATE OF THE UNITED STATES
JUNE 24, 1998
Received; read twice and referred to the Committee on Small Business
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