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 percent 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 employed; and
            (4) employees who use and abuse addictive substances 
        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 individuals who do not use 
                drugs; and
                    (E) employee turnover is significantly higher 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 advantages of 
        a drug-free workplace;
            (2) provide financial incentives and technical assistance 
        to enable small business concerns to create a drug-free 
        workplace; and
            (3) assist working parents in keeping their children drug-
        free.

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 encourage 
        businesses to adopt drug-free workplace programs;
            (3) such incentives may include--
                    (A) financial incentives, including--
                            (i) a reduction in workers' compensation 
                        premiums;
                            (ii) a reduction in unemployment insurance 
                        premiums; and
                            (iii) tax deductions in an amount equal to 
                        the amount of expenditures for employee 
                        assistance programs, treatment, or drug 
                        testing; and
                    (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 PROGRAM.

    The Small Business Act (15 U.S.C. 631 et seq.) is amended--
            (1) by redesignating section 32 as section 33; and
            (2) by inserting after section 31 the following:

``SEC. 32. DRUG-FREE WORKPLACE DEMONSTRATION PROGRAM.

    ``(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 substances in the workplace, and the 
                consequences of violating those expectations and 
                prohibitions;
                    ``(B) alcohol and drug abuse prevention training 
                for a total of not less than 2 hours for each employee, 
                and additional alcohol and drug abuse prevention 
                training for employees who are parents;
                    ``(C) employee drug testing conducted by a drug 
                testing laboratory certified by the Substance Abuse and 
                Mental Health Services Administration, approved by the 
                Department of Health and Human Services under the 
                Clinical Laboratories Improvement Act of 1967 (42 
                U.S.C. 263a), or approved by the College of American 
                Pathologists, and a review of each positive test result 
                by a licensed medical review officer;
                    ``(D) employee access to an employee assistance 
                program, including assessment, referral, and short-term 
                problem resolution; and
                    ``(E) continuing alcohol and drug abuse prevention 
                assistance.
            ``(2) Eligible intermediary.--The term `eligible 
        intermediary' means an organization--
                    ``(A) that is described in paragraph (3) or (6) of 
                section 501(c) of the Internal Revenue Code of 1986 
                that is exempt from taxation under section 5(a) of such 
                Code, or a program of any such organization; or
                    ``(B) that provides services to any organization 
                described in subparagraph (A);
                    ``(C) that has not less than 2 years of experience 
                in carrying out drug-free workplace programs or in 
                providing assistance and services to small business 
                concerns;
                    ``(D) that has a drug-free workplace policy in 
                effect;
                    ``(E) that is located in a State, the District of 
                Columbia, or a territory of the United States; and
                    ``(F) the purpose of which is--
                            ``(i) to develop comprehensive drug-free 
                        workplace programs or to supply drug-free 
                        workplace services; or
                            ``(ii) to provide other forms of assistance 
                        and services to small business concerns.
            ``(3) Employee.--The term `employee' includes any--
                    ``(A) supervisor;
                    ``(B) manager;
                    ``(C) officer of a small business concern who is 
                active in management of the concern; and
                    ``(D) owner of a small business concern who is 
                active in management of the concern.
    ``(b) Establishment.--There is established a drug-free workplace 
demonstration program, under which the Administrator may make grants 
to, or enter into cooperative 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) Evaluation and Coordination.--Not later than 1 year after the 
date of enactment of the Drug-Free Workplace Act of 1998, the 
Administrator, in coordination with the Secretary of Labor, the 
Secretary of Health and Human Services, and the Director of the Office 
of National 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).
    ``(d) Contract Authority.--In carrying out this section, the 
Administrator may--
            ``(1) contract with public and private entities to provide 
        assistance related to carrying out the program under this 
        section; and
            ``(2) compensate those entities for provision of that 
        assistance.
    ``(e) 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 offered by the intermediary.
    ``(f) Authorization.--There is authorized to be appropriated to 
carry out this section, $10,000,000 for fiscal year 1999. Amounts made 
available under this subsection shall remain 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'' at the end;
            (2) in subparagraph (S), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(T) providing information and assistance to small 
        business concerns with respect to establishing drug-free 
        workplace programs (as defined in section 32(a)).''.
Output: Drug-Free Workplace Act of 1998 - Expresses the sense of the Congress that:  (1) businesses should adopt drug-free workplace programs; and (2) States should consider incentives to encourage businesses to adopt such programs, such as reductions in workers' compensation or unemployment insurance premiums, tax deductions, or liability limitations. 
Amends the Small Business Act to establish a drug-free workplace demonstration program, under which the Administrator of the Small Business Administration (SBA) may make grants to, and contracts or cooperative agreements with, eligible intermediaries to provide financial assistance to small businesses seeking to establish such a program.  Sets forth intermediary eligibility requirements.  Requires such a program to include:  (1) a written policy, including prohibitions against substances in the workplace and violation consequences; (2) alcohol and drug abuse prevention training for employees; (3) employee drug testing; (4) employee access to an assistance program; and (5) continuing alcohol and drug abuse prevention assistance.  Authorizes appropriations.    Requires small business development centers to provide information and assistance to small businesses in developing drug-free workplace programs.