By Isett                                              H.B. No. 3128
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the adoption of a drug-free workplace program by
 1-3     employers and to a discount on workers' compensation insurance
 1-4     premiums for employers who elect to participate in the program.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6                    ARTICLE 1.  DRUG TESTING BY EMPLOYERS
 1-7           SECTION 1.01. Subtitle A, Title 5, Labor Code, is amended by
 1-8     adding Chapter 419 to read as follows:
 1-9        CHAPTER 419.  REQUIREMENTS FOR EMPLOYEE DRUG TESTING PROGRAMS
1-10                      SUBCHAPTER A. GENERAL PROVISIONS
1-11           Sec. 419.001.  DEFINITIONS. In this chapter:
1-12                 (1)  "Alcohol" means ethyl alcohol, hydrated oxide of
1-13     ethyl, or spirits of wine, from whatever source by whatever process
1-14     produced.
1-15                 (2)  "Chain of custody" means the methodology of
1-16     tracking specified materials, specimens, or substances for the
1-17     purpose of:
1-18                       (A)  maintaining control and accountability from
1-19     initial collection to final disposition for all the materials,
1-20     specimens, or substances; and
1-21                       (B)  providing for accountability at each stage
1-22     in handling, testing, and storing materials, specimens, or
1-23     substances and reporting of test results.
 2-1                 (3)  "Confirmation test" means a second analytical
 2-2     procedure used to identify the presence of a specific drug or
 2-3     metabolite in a specimen that is:
 2-4                       (A)  different in scientific principle from that
 2-5     of the initial test procedure; and
 2-6                       (B)  capable of providing requisite specificity,
 2-7     sensitivity, and quantitative accuracy.
 2-8                 (4)  "Drug" means:
 2-9                       (A)  an amphetamine;
2-10                       (B)  a cannabinoid;
2-11                       (C)  cocaine;
2-12                       (D)  phencyclidine (PCP);
2-13                       (E)  an opiate;
2-14                       (F)  a barbiturate;
2-15                       (G)  a benzodiazepine;
2-16                       (H)  methadone;
2-17                       (I)  methaqualene;
2-18                       (J)  propoxyphene; or
2-19                       (K)  a metabolite of a substance listed in
2-20     Paragraphs (A)-(J).
2-21                 (5)  "Employee" means a person who works for salary,
2-22     wages, or other remuneration for an employer.  The term includes a
2-23     part-time or leased employee.
2-24                 (6)  "Employee assistance program" means a program
2-25     designed to assist in the identification and resolution of job
2-26     performance problems associated with employees impaired by personal
 3-1     concerns that provides a minimum level of core services, including:
 3-2                       (A)  consultation and training;
 3-3                       (B)  professional, confidential, appropriate, and
 3-4     timely problem assessment services;
 3-5                       (C)  short-term problem resolution;
 3-6                       (D)  referrals for appropriate diagnosis,
 3-7     treatment, and assistance;
 3-8                       (E)  follow-up and monitoring;
 3-9                       (F)  employee education; and
3-10                       (G)  quality assurance.
3-11                 (7)  "Employer" means a person who employs one or more
3-12     employees.
3-13                 (8)  "Initial test" means a sensitive, rapid, and
3-14     reliable procedure to identify negative and presumptive positive
3-15     specimens that uses an immunoassay procedure or an equivalent
3-16     procedure or, as more accurate technology becomes available in a
3-17     cost-effective form, another more accurate scientifically accepted
3-18     method approved by the United States Department of Health and Human
3-19     Services National Laboratory Certification Program.
3-20                 (9)  "Job applicant" means a person who has applied for
3-21     a position of employment and has been offered employment subject to
3-22     passing a substance abuse test.  The term includes a person who has
3-23     begun work pending the results of the substance abuse test.
3-24                 (10)  "Medical review officer" means a licensed
3-25     physician trained in the field of testing for alcohol and other
3-26     drugs who, in compliance with regulations and guidelines as
 4-1     prescribed by 49 C.F.R. Part 40:
 4-2                       (A)  provides medical assessment of positive test
 4-3     results;
 4-4                       (B)  requests reanalysis if necessary; and
 4-5                       (C)  makes a determination as to whether use of
 4-6     alcohol or other drugs has occurred;
 4-7                 (11)  "Nonprescription medication" means a drug or
 4-8     other medication authorized under federal or state law for general
 4-9     distribution and use in the treatment of human disease, ailments,
4-10     or injuries without a prescription.
4-11                 (12)  "Prescription medication" means a drug or other
4-12     medication lawfully prescribed by a physician for an individual to
4-13     be taken by the individual only in accordance with the terms of
4-14     prescription.
4-15                 (13)  "Reasonable suspicion testing" means substance
4-16     abuse testing based on evidence, drawn from specific objective and
4-17     articulable facts and reasonable inferences drawn from those facts
4-18     based on experience, that an employee is using or has used alcohol
4-19     or other drugs in violation of the employer's drug-free workplace
4-20     policy.
4-21                 (14)  "Rehabilitation program" means an established
4-22     program:
4-23                       (A)  capable of providing expert identification,
4-24     assessment, and resolution of employee abuse of alcohol or other
4-25     drugs in a confidential and timely manner; and
4-26                       (B)  in which services are provided by persons
 5-1     licensed by the Texas Department of Health or other appropriately
 5-2     licensed health professionals to provide alcohol and other drug
 5-3     rehabilitative services.
 5-4                 (15)  "Specimen" means a urine, blood, breath, hair,
 5-5     tissue, or other sample of the human body capable of revealing the
 5-6     presence of alcohol or other drugs or their metabolites.
 5-7                 (16)  "Substance" means alcohol or other drugs.
 5-8                 (17)  "Substance abuse test" means any chemical,
 5-9     biological, or physical instrumental analysis administered to
5-10     determine the presence or absence of alcohol or other drugs or
5-11     their metabolites.
5-12                 (18)  "Threshold detection level" means the level at
5-13     which the presence of alcohol or other drugs can be reasonably
5-14     expected to be detected by an initial and confirmatory test
5-15     performed by a laboratory meeting the standards specified in this
5-16     chapter.  The threshold detection level indicates the level at
5-17     which a valid conclusion can be drawn that alcohol or other drugs
5-18     are present in the employee's specimen.
5-19           Sec. 419.002.  APPLICATION OF CHAPTER. (a)  This chapter
5-20     applies to:
5-21                 (1)  an employer who elects to operate a program of
5-22     drug testing; and
5-23                 (2)  the employees of that employer.
5-24           (b)  This chapter does not require an employer to conduct
5-25     drug testing of employees.  An employer who elects to participate
5-26     in the drug-free workplace program under article 5.55A, Insurance
 6-1     Code must comply with this chapter.  An employer may establish
 6-2     policies that are supplemental to and not inconsistent with this
 6-3     chapter.
 6-4           (c)  This chapter governs all drug testing of employees whose
 6-5     primary workplace is within this state, regardless of whether the
 6-6     test is performed inside or outside this state, if the test is
 6-7     conducted pursuant to the drug-free workplace program established
 6-8     by article 5.55A, Insurance Code
 6-9           (d)  This chapter does not prevent the negotiation of
6-10     collective bargaining agreements that provide greater protection to
6-11     employees than the protections provided by this chapter and may not
6-12     be construed to limit the rights, privileges, or remedies of any
6-13     employee or collective bargaining representative under any other
6-14     state or federal law or regulation or under any collective
6-15     bargaining agreement or employment contract.
6-16           (e)  This chapter does not prevent an employer from requiring
6-17     or performing medical examinations of employees as permitted by law
6-18     or from conducting medical screenings to monitor exposure to toxic
6-19     or other harmful substances in the workplace if those examinations
6-20     or screenings are not used to avoid the requirements of this
6-21     chapter.
6-22           (f)  This chapter does not prevent an employer from adopting
6-23     rules related to the possession or use of a drug by an employee,
6-24     including rules relating to the consequences of a  conviction for a
6-25     drug-related offense, or from taking an action based on a violation
6-26     of those rules, including termination of the employment.
 7-1           (g)  This chapter does not restrict an employer's authority
 7-2     to prohibit the use or possession of alcohol or other drugs during
 7-3     work hours.
 7-4           (h)  This chapter may not be construed to prevent an employer
 7-5     from establishing reasonable work rules relating to employee
 7-6     manufacture, sale, distribution, possession, or use of alcohol or
 7-7     other drugs, including convictions for drug-related offenses, and
 7-8     taking action based on a violation of any of those rules.
 7-9           Sec. 419.003.  RULES; DRUG-FREE WORKPLACE PROGRAM ELEMENTS.
7-10     (a) The commission by rule shall prescribe the elements of a
7-11     comprehensive drug-free workplace program under this chapter.
7-12           (b)  The rules adopted under this section may require the
7-13     employer to provide in the employer's drug-free workplace program:
7-14                 (1)  a written policy statement explaining the
7-15     employer's policies on alcohol and drug abuse as applicable to
7-16     employees and job applicants;
7-17                 (2)  an employee assistance program or access to such
7-18     an assistance program;
7-19                 (3)  an employee education program regarding the
7-20     dangers of alcohol and drug abuse; and
7-21                 (4)  training for supervisors and other managerial
7-22     employees in handling issues regarding employee abuse of alcohol or
7-23     other drugs.
7-24           (c)  The rules adopted under this section must require an
7-25     employer's drug-free workplace program to include substance abuse
7-26     testing that complies with the requirements prescribed by
 8-1     Subchapter B.
 8-2           (d)  In addition to the requirements of Subsection (b), a
 8-3     comprehensive drug-free workplace program must be implemented in
 8-4     compliance with the confidentiality standards prescribed by
 8-5     Subchapter C.
 8-6              (Sections 419.004-419.050 reserved for expansion
 8-7                    SUBCHAPTER B. SUBSTANCE ABUSE TESTING
 8-8           Sec. 419.051.  TESTING REQUIREMENTS. (a)  Unless the
 8-9     commission by rule adopts different testing standards and
8-10     procedures, all testing conducted by an employer must be in
8-11     conformity with the standards and procedures established under 49
8-12     C.F.R. Part 40.
8-13           (b)  An employer must require job applicants to submit to a
8-14     substance abuse test after an offer of employment and may use a
8-15     refusal to submit to drug testing or a positive confirmed test as a
8-16     basis for not hiring the job applicant.
8-17           (c)  An employer must require an employee to submit to
8-18     reasonable suspicion testing.
8-19           (d)  If an employee in the course of employment enters a drug
8-20     or alcohol rehabilitation program, the employer must require the
8-21     employee to submit to substance abuse testing as a follow-up to
8-22     that program.  The frequency of the testing must be at least once
8-23     annually for a two-year period after completion of the program.
8-24     Advance notice of the testing date may not be given to the
8-25     employee.
8-26           (e)  If the employee has caused or contributed to an accident
 9-1     during the course of employment, the employer must conduct
 9-2     postaccident substance abuse testing.
 9-3           (f)  The employee must submit to substance abuse testing if
 9-4     the employee is returning to duty after any confirmed positive
 9-5     test.
 9-6           (g)  This section does not prohibit a private employer from
 9-7     conducting random testing or other lawful testing of employees.
 9-8           (h)  If testing is conducted based on reasonable suspicion,
 9-9     the employer shall promptly detail in writing the circumstances
9-10     that formed the basis of the determination that reasonable
9-11     suspicion existed to warrant the testing.  The employer shall give
9-12     a copy of this documentation to the employee. The employer shall
9-13     keep the original documentation confidential as provided by
9-14     Subchapter C and must retain the original documentation for at
9-15     least one year or throughout the duration of any legal proceedings
9-16     resulting from the testing if longer than one year.
9-17           Sec. 419.052.  HANDLING OF TEST SPECIMENS. (a)  Except as
9-18     otherwise provided by rule by the commission, a specimen must be
9-19     collected in accordance with the specimen collection procedures
9-20     described by regulations approved by:
9-21                 (1)  the United States Department of Health and Human
9-22     Services; or
9-23                 (2)  for alcohol testing, the United States Department
9-24     of Transportation regulations.
9-25           (b)  A specimen must be collected with due regard to the
9-26     privacy of the individual providing the specimen and in a manner
 10-1    reasonably designed to prevent substitution or contamination of the
 10-2    specimen.
 10-3          (c)  Specimen collection and storage, and employee
 10-4    transportation to the testing site, must be performed in a manner
 10-5    that reasonably precludes specimen contamination or adulteration.
 10-6          (d)  An employee or job applicant shall have an opportunity
 10-7    to provide notification of any information that may be considered
 10-8    relevant to the test, including identification of currently or
 10-9    recently used prescription or nonprescription drugs, or other
10-10    relevant medical information.  This opportunity must  include
10-11    procedures for review by a qualified medical review officer in the
10-12    case of a sample that tests positive in a confirmation test.
10-13          (e)  Each initial and confirmation test conducted under this
10-14    section, not including the taking or collecting of a specimen to be
10-15    tested, must be conducted by a laboratory certified by the United
10-16    States Department of Health and Human Services National Laboratory
10-17    Certification Program or, for alcohol, must be handled in
10-18    accordance with United States Department of Transportation
10-19    regulations relating to alcohol testing.
10-20          (f)  A specimen for a test may be taken or collected by:
10-21                (1)  a physician, physician's assistant, registered
10-22    nurse, licensed vocational nurse, or advanced nurse practitioner;
10-23                (2)  a  certified emergency medical technician who is
10-24    present at the scene of an accident to render emergency medical
10-25    service or treatment;
10-26                (3)  a qualified person certified or employed by a
 11-1    laboratory certified by the United States Department of Health and
 11-2    Human Services National Laboratory Certification Program; or
 11-3                (4)  a qualified person certified or employed by a
 11-4    specimen collection company.
 11-5          (g)  An employer who performs specimen collection shall use
 11-6    chain of custody procedures to ensure proper recordkeeping,
 11-7    handling, labeling, and identification of all specimens to be
 11-8    tested.
 11-9          (h)  An initial test with a positive result must be verified
11-10    by a confirmation test or it shall be certified as a negative
11-11    result.
11-12          (i)  An employer shall pay the cost of all initial and
11-13    confirmation substance abuse tests that the employer requires of
11-14    job applicants or employees.
11-15          (j)  An employee or job applicant shall pay the cost of any
11-16    additional tests that the employee or job applicant requests.
11-17          Sec. 419.053.  NOTIFICATION OF TEST RESULTS. (a)  Not later
11-18    than the fifth business day after the date of receipt of a positive
11-19    confirmed test result from the laboratory, an employer shall inform
11-20    an employee or job applicant in writing of the positive test
11-21    result, the consequences of the result, and the options available
11-22    to the employee or job applicant.
11-23          (b)  The employer shall provide to the employee or job
11-24    applicant, on request, a copy of the test results.
11-25          Sec. 419.054.  REQUIREMENTS FOR TESTING LABORATORIES. (a)  A
11-26    laboratory may not analyze initial or confirmation drug specimens
 12-1    unless the laboratory is certified by the National Laboratory
 12-2    Certification Program.
 12-3          (b)  A laboratory shall disclose to the employer a written
 12-4    test result report not later than the seventh business day after
 12-5    the date of receipt of the sample.  All laboratory reports of a
 12-6    substance abuse test result shall, at a minimum, state:
 12-7                (1)  the name and address of the laboratory that
 12-8    performed the test and the positive identification of the person
 12-9    tested;
12-10                (2)  positive results on confirmation tests only, or
12-11    negative results, as applicable;
12-12                (3)  a list of the drugs for which the drug analyses
12-13    were conducted; and
12-14                (4)  the types of tests conducted for both initial and
12-15    confirmation tests and the minimum cutoff levels of the tests.
12-16          (c)  A report under this section may not disclose the
12-17    presence or absence of any drug other than a specific drug and its
12-18    metabolites listed under this chapter.
12-19          (d)  The laboratory shall provide technical assistance to the
12-20    employer, employee, or job applicant to interpret any positive
12-21    confirmed test results that could have been caused by prescription
12-22    or nonprescription medication taken by the employee or job
12-23    applicant.
12-24          (e)  Each positive initial test must be confirmed using the
12-25    gas chromatography/mass spectrometry (GC/MS) method or an
12-26    equivalent or more accurate and scientifically accepted method
 13-1    approved by the National Laboratory Certification Program as the
 13-2    technology becomes available in a cost-effective form.
 13-3          Sec. 419.055.  ABSENCE OF PHYSICIAN-PATIENT PRIVILEGE. A
 13-4    physician-patient relationship is not created between an employee
 13-5    or job applicant and an employer, medical review officer, or
 13-6    substance abuse testing laboratory performing or evaluating a
 13-7    substance abuse test solely by the establishment, implementation,
 13-8    or administration of a substance abuse testing program.
 13-9             (Sections 419.056-419.100 reserved for expansion
13-10                SUBCHAPTER C.  CONFIDENTIALITY REQUIREMENTS
13-11          Sec. 419.101.  CONFIDENTIALITY REQUIREMENTS. (a)  All
13-12    information, interviews, reports, statements, memoranda, and test
13-13    results, written or otherwise, received by the employer through a
13-14    substance abuse testing program are confidential communications as
13-15    they relate to the tested employee or job applicant and may not be
13-16    used or received in evidence, obtained in discovery, or disclosed
13-17    in any public or private proceedings, except in accordance with
13-18    this chapter.
13-19          (b)  Employers, laboratories, medical review officers, and
13-20    their agents who receive or have access to information concerning
13-21    test results shall keep all information confidential.  Release of
13-22    the information under any circumstance other than as authorized by
13-23    this chapter shall be solely under a written consent form signed
13-24    voluntarily by the person tested unless the release is compelled by
13-25    a state agency or a court or unless considered appropriate by a
13-26    professional or occupational licensing board in a related
 14-1    disciplinary proceeding.
 14-2          (c)  A consent form used under Subsection (b) must contain at
 14-3    a minimum:
 14-4                (1)  the name of the person who is authorized to obtain
 14-5    the information;
 14-6                (2)  the purpose of the disclosure;
 14-7                (3)  the precise information to be disclosed;
 14-8                (4)  the duration of the consent; and
 14-9                (5)  the signature of the person authorizing release of
14-10    the information.
14-11          (d)  This subchapter may not be construed to prohibit the
14-12    employer, agent of the employer, or laboratory conducting a test
14-13    from having access to employee testing program information when
14-14    consulting with legal counsel in connection with actions related to
14-15    this chapter or when the information is relevant to its defense in
14-16    a civil or administrative matter.
14-17          Sec. 419.102.  EFFECT OF OTHER LAW; USE OF INFORMATION IN
14-18    CRIMINAL PROCEEDING. (a)  This chapter may not be construed to call
14-19    for actions that may violate federal or state confidentiality
14-20    statutes for employee assistance professionals and alcohol and
14-21    other drug abuse counseling or treatment providers.
14-22          (b)  Information on test results may not be released or used
14-23    in a criminal proceeding against the employee or job applicant.
14-24    Information released contrary to this section is inadmissible as
14-25    evidence in a criminal proceeding.
14-26             (Sections 419.103-419.150 reserved for expansion
 15-1          SUBCHAPTER D.  REHABILITATION; DISCIPLINARY PROCEDURES
 15-2          Sec. 419.151.  REHABILITATIVE PROCEDURES; DISCIPLINARY
 15-3    PROCEDURES. (a)  On receipt of a confirmed positive substance abuse
 15-4    test result that indicates a violation of the employer's written
 15-5    policy, or on the refusal of an employee or prospective employee to
 15-6    provide a testing sample, an employer may use that confirmed test
 15-7    result or test refusal as a valid basis for rehabilitative or
 15-8    disciplinary actions.
 15-9          (b)  Actions under this section may include a requirement
15-10    that the employee enroll in an employee assistance program or an
15-11    employer-provided or employer-approved rehabilitation, treatment,
15-12    or counseling program licensed by the state.  These programs may
15-13    include additional substance abuse testing, participation in which
15-14    may be a condition of continued employment, and the costs of which
15-15    may or may not be covered by the employer's health benefit plan.
15-16          (c)  Disciplinary actions under this section may include:
15-17                (1)  suspension of the employee, with or without pay,
15-18    for a designated period;
15-19                (2)  termination of employment;
15-20                (3)  refusal to hire a prospective employee; and
15-21                (4)  other actions in conformance with the employer's
15-22    written policy and procedures, including any applicable collective
15-23    bargaining agreement provisions.
15-24                  ARTICLE 2.  INSURANCE PREMIUM DISCOUNT
15-25          SECTION 2.01. Subchapter D, Chapter 5, Insurance Code, is
15-26    amended by adding Article 5.55A to read as follows:
 16-1          Art. 5.55A. WORKERS' COMPENSATION INSURANCE PREMIUM DISCOUNT
 16-2    FOR EMPLOYERS WITH DRUG-FREE WORKPLACE. (a)  In this article,
 16-3    "insurer" means a stock company, mutual company, reciprocal,
 16-4    interinsurance exchange, Lloyd's plan, or other entity authorized
 16-5    to write workers' compensation insurance in this state. The term
 16-6    includes the Texas workers' compensation insurance fund.
 16-7          (b)  This article applies to an employer who holds a
 16-8    certificate of a drug-free workplace issued by the Texas Workers'
 16-9    Compensation Commission under Section 411.092, Labor Code.
16-10          (c)  The commissioner by rule shall adopt a plan under which
16-11    each insurer shall grant a discount to an employer subject to
16-12    Subsection (b) of this article who obtains workers' compensation
16-13    insurance coverage from that insurer and applies for the discount
16-14    in the manner prescribed by the commissioner.  The insurer shall
16-15    grant a discount in a percentage set by the commissioner by rule on
16-16    the amount of the employer's workers' compensation premium.  The
16-17    percentage set by the commissioner must be at least five percent.
16-18          (d)  A discount established under this article is valid for
16-19    the term of the policy or contract of insurance.  On renewal of the
16-20    policy or contract, the employer must reapply for the discount in
16-21    the manner prescribed by the commissioner.
16-22          (e)  A discount under this article is in addition to any
16-23    other premium discount to which the employer is eligible under this
16-24    code.
16-25                     ARTICLE 3.  CONFORMING AMENDMENTS
16-26          SECTION 3.01. The heading to Subchapter G, Chapter 411, Labor
 17-1    Code, is amended to read as follows:
 17-2              SUBCHAPTER G.  POLICY FOR ELIMINATION OF DRUGS
 17-3                  IN THE WORKPLACE; CERTIFICATION PROGRAM
 17-4          SECTION 3.02. Subchapter G, Chapter 411, Labor Code, is
 17-5    amended by amending Section 411.092 and adding Section 411.093 to
 17-6    read as follows:
 17-7          Sec. 411.092.  CERTIFICATION PROGRAM. (a)  An employer who
 17-8    has workers' compensation insurance coverage may adopt a drug-free
 17-9    workplace program under Chapter 419.  The commission shall issue a
17-10    certificate to each employer maintaining a program adopted under
17-11    Chapter 419 who is determined by the commission, after an
17-12    investigation by the division, to meet the requirements of Chapter
17-13    419.
17-14          (b)  A certificate issued under this section is valid for one
17-15    year from the date of issuance and may be renewed by the employer
17-16    on application to the commission and reinvestigation by the
17-17    division.
17-18          Sec. 411.093.  IMPLEMENTATION [ENFORCEMENT]; RULES. The
17-19    commission shall implement this subchapter [enforce Section
17-20    411.091] and may adopt rules for that purpose.
17-21                        ARTICLE 4.  EFFECTIVE DATE
17-22          SECTION 4.01. This Act takes effect September 1, 2001.