[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3853 Reported in Senate (RS)]






                                                       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 Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Drug-Free Workplace Act of 
1998''.</DELETED>

<DELETED>SEC. 2. FINDINGS; PURPOSES.</DELETED>

<DELETED>    (a) Findings.--Congress finds that--</DELETED>
        <DELETED>    (1) 74 percent of adults who use illegal drugs are 
        employed;</DELETED>
        <DELETED>    (2) small business concerns employ over 50 percent 
        of the Nation's workforce;</DELETED>
        <DELETED>    (3) in over 88 percent of families with children 
        under the age of 18, at least 1 parent is employed; 
        and</DELETED>
        <DELETED>    (4) employees who use and abuse addictive 
        substances increase costs for businesses and risk the health 
        and safety of all employees because--</DELETED>
                        <DELETED>    (A) absenteeism is 66 percent 
                        higher among drug users than nondrug 
                        users;</DELETED>
                        <DELETED>    (B) health benefit utilization is 
                        300 percent higher among drug users than 
                        nondrug users;</DELETED>
                        <DELETED>    (C) 47 percent of workplace 
                        accidents are drug-related;</DELETED>
                        <DELETED>    (D) disciplinary actions are 90 
                        percent higher among drug users than nondrug 
                        users; and</DELETED>
                        <DELETED>    (E) employee turnover is 
                        significantly higher among drug users than 
                        nondrug users.</DELETED>
<DELETED>    (b) Purposes.--The purposes of this Act are to--</DELETED>
        <DELETED>    (1) educate small business concerns about the 
        advantages of a drug-free workplace;</DELETED>
        <DELETED>    (2) provide financial incentives and technical 
        assistance to enable small business concerns to create a drug-
        free workplace; and</DELETED>
        <DELETED>    (3) assist working parents in keeping their 
        children drug-free.</DELETED>

<DELETED>SEC. 3. SENSE OF THE CONGRESS.</DELETED>

<DELETED>    It is the sense of the Congress that--</DELETED>
        <DELETED>    (1) businesses should adopt drug-free workplace 
        programs; and</DELETED>
        <DELETED>    (2) States should consider incentives to encourage 
        businesses to adopt drug-free workplace programs. Financial 
        incentives may include--</DELETED>
                <DELETED>    (A) a reduction in workers' compensation 
                premiums;</DELETED>
                <DELETED>    (B) a reduction in unemployment insurance 
                premiums; and</DELETED>
                <DELETED>    (C) tax deductions in an amount equal to 
                the amount of expenditures for employee assistance 
                programs, treatment, or drug testing.</DELETED>
        <DELETED>Other incentives may include adoption of liability 
        limitation as recommended by the President's Commission on 
        Model State Drug Laws.</DELETED>

<DELETED>SEC. 4. DRUG-FREE WORKPLACE DEMONSTRATION PROGRAM.</DELETED>

<DELETED>    The Small Business Act (15 U.S.C. 636 et seq.) is amended 
by--</DELETED>
        <DELETED>    (1) redesignating sections 31 and 32 as sections 
        32 and 33, respectively; and</DELETED>
        <DELETED>    (2) inserting the following new section:</DELETED>

<DELETED>``SEC. 31. DRUG-FREE WORKPLACE DEMONSTRATION 
              PROGRAM.</DELETED>

<DELETED>    ``(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 business concerns seeking to start a drug-free 
workplace program.</DELETED>
<DELETED>    ``(b) Eligibility for Participation.--An intermediary 
shall be eligible to receive a grant, cooperative agreement, or 
contract under subsection (a) if it meets the following 
criteria:</DELETED>
        <DELETED>    ``(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 provides services to such 
        organization.</DELETED>
        <DELETED>    ``(2) Its purpose is to develop comprehensive 
        drug-free workplace programs or to supply drug-free workplace 
        services, or provide other forms of assistance and services to 
        small businesses.</DELETED>
        <DELETED>    ``(3) It has at least 2 years of experience in 
        drug-free workplace programs or in providing assistance and 
        services to small business concerns.</DELETED>
        <DELETED>    ``(4) It has a drug-free workplace policy in 
        effect.</DELETED>
<DELETED>    ``(c) Requirements for Program.--Any drug-free workplace 
program developed as a result of this section shall include--</DELETED>
        <DELETED>    ``(1) a written policy, including a clear 
        statement of expectations for workplace behavior, prohibitions 
        against substances in the workplace, and the consequences of 
        violating such expectations and prohibitions;</DELETED>
        <DELETED>    ``(2) training for at least 2 hours for 
        employees;</DELETED>
        <DELETED>    ``(3) additional training for employees who are 
        parents;</DELETED>
        <DELETED>    ``(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 
        reviewed by a Licensed Medical Review Officer;</DELETED>
        <DELETED>    ``(5) employee access to an employee assistance 
        program, including assessment, referral, and short-term problem 
        resolution; and</DELETED>
        <DELETED>    ``(6) continuing alcohol and drug abuse prevention 
        program.</DELETED>
<DELETED>    ``(d) Evaluation and Coordination.--The Small Business 
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 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.</DELETED>
<DELETED>    ``(e) Eligible Intermediary.--Any eligible intermediary 
shall be located in a state, the District of Columbia, or the 
territories.</DELETED>
<DELETED>    ``(f) Definition of Employee.--For purposes of this 
section, the term `employee' includes--</DELETED>
        <DELETED>    ``(1) supervisors;</DELETED>
        <DELETED>    ``(2) managers;</DELETED>
        <DELETED>    ``(3) officers active in management of the 
        business; and</DELETED>
        <DELETED>    ``(4) owners active in management of the 
        business.</DELETED>
<DELETED>    ``(g) Construction.--Nothing in this section shall be 
construed to require an employer who attends a program offered by an 
intermediary to contract for any services offered as part of a drug-
free workplace program.</DELETED>
<DELETED>    ``(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 remain available until 
expended.''.</DELETED>

<DELETED>SEC. 5. SMALL BUSINESS DEVELOPMENT CENTERS.</DELETED>

<DELETED>    Section 21(c)(3) of the Small Business Act (15 U.S.C. 
648(c)(3)) is amended--</DELETED>
        <DELETED>    (1) in subparagraph (R) by striking 
        ``and'';</DELETED>
        <DELETED>    (2) in subparagraph (S) by striking the period and 
        inserting ``; and''; and</DELETED>
        <DELETED>    (3) by inserting after subparagraph (S) the 
        following new subparagraph:</DELETED>
        <DELETED>    ``(T) providing information and assistance to 
        small business concerns with respect to developing drug-free 
        workplace programs.''.</DELETED>

<DELETED>SEC. 6. CONTRACT AUTHORITY.</DELETED>

<DELETED>    The Small Business Administrator may contract with and 
compensate government and private agencies or persons for services 
related to carrying out the provisions of this Act.</DELETED>

<DELETED>SEC. 7. COLLECTION OF DATA AND STUDY.</DELETED>

<DELETED>    (a) Collection and Study.--The Small Business 
Administrator shall collect data and conduct a study on--</DELETED>
        <DELETED>    (1) drug use in the workplace among employees of 
        small business concerns;</DELETED>
        <DELETED>    (2) costs to small business concerns associated 
        with illegal drug use by employees; and</DELETED>
        <DELETED>    (3) a need for assistance in the small business 
        community to develop drug prevention programs.</DELETED>
<DELETED>    (b) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Small Business Administrator shall submit a 
report containing findings and conclusions of the study to the chairmen 
and ranking members of the Small Business Committees of the House and 
Senate.</DELETED>

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 illegal 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 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 grants and technical assistance in addition to 
        financial incentives to enable small business concerns to 
        create a drug-free workplace;
            (3) assist working parents in keeping their children drug-
        free; and
            (4) encourage small business employers and employees 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 encourage 
        businesses to adopt drug-free workplace programs; and
            (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 illegal 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.

    Section 27 of the Small Business Act (15 U.S.C. 654) is amended to 
read as follows:

``SEC. 27. 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 reporting to work or working under the 
                influence of illegal drugs or alcohol, prohibitions 
                against the use or possession of illegal drugs in the 
                workplace, and the consequences of violating those 
                expectations and prohibitions;
                    ``(B) drug and alcohol abuse prevention training 
                for a total of not less than 2 hours for each employee, 
                and additional voluntary drug and alcohol abuse 
                prevention training for employees 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 assistance 
                program, including confidential assessment, referral, 
                and short-term problem resolution; and
                    ``(E) continuing alcohol and drug abuse prevention 
                education.
            ``(2) Eligible intermediary.--The term `eligible 
        intermediary' means an organization--
                    ``(A) that has not less than 2 years of experience 
                in carrying out drug-free workplace programs;
                    ``(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--
                            ``(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) 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 
                        concern; or
                            ``(ii) employee or agent of, or any person 
                        having an financial interest in, the laboratory 
                        for which the illegal drug test results 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 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) Privacy Protection for Employees Participating 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 appropriate, 
        practices and procedures to ensure the confidentiality of 
        illegal drug test results and of any participation by an 
        employee in a rehabilitation program;
            ``(2) prohibit the mandatory disclosure of medical 
        information by an employee prior to a confirmed positive 
        illegal drug test; and
            ``(3) require that a medical review officer reviewing 
        illegal drug test results shall report only the final results, 
        limited to those drugs for which the employee 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 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).
    ``(e) 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.
    ``(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 offered by the intermediary.
    ``(g) Authorization.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section, $10,000,000 for fiscal years 1999 
        and 2000. Amounts made available under this subsection shall 
        remain available until expended.
            ``(2) Small business development centers.--Of the total 
        amount made available under this subsection, not more than the 
        greater of 10 percent or $1,000,000 may be used to carry out 
        section 21(c)(3)(T).''.

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 on or before October 1, 2000.''.
                                     





                                                       Calendar No. 656

105th CONGRESS

  2d Session

                               H. R. 3853

                          [Report No. 105-348]

_______________________________________________________________________

                                 AN ACT

                To promote drug-free workplace programs.

_______________________________________________________________________

                           September 25, 1998

                       Reported with an amendment