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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)).''.
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.