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DATIA Meets with White House and Small Business Administration Regulatory Review Officials on 49 CFR 40 Proposal

November 27, 2000

Top government officials heard industry concerns on remaining unresolved issues relating to the Department of Transportation’s rulemaking to change the mandatory drug and alcohol testing regulations. The meeting, which occurred on Monday, November 27 was requested by DATIA and was part of The White House’s review of DOT’s work before the regulation can be issued.


DATIA presented a comprehensive review and analysis of the DOT docket, which showed that 80 percent of the comments sent to DOT during the rulemaking process on the issue supported the DATIA position to allow “service agents” such as consortiums and third party administrators to serve as the agent of the employer. DOT had proposed to require each “actual employer” to have a Designated Employer Representative on staff to interface with the MRO, and prohibited employers from contracting this role out to service agents. DOT’s proposal, however, was supported by only 20 percent of the comments received, a decisive rejection of the proposal.


DATIA presented the relevant regulatory law that applied to the rulemaking including the Regulatory Flexibility Act, the Paperwork Reduction Act, and the Administrative Procedures Act, which require that impacts and costs be considered before releasing the final regulation.


DATIA’s other issues involved the quarterly statistical summary issue, and the blind sampling requirement in DOT’s notice of proposed rulemaking. DATIA made the point that both these requirements had no stated or empirical support, and therefore were of no “practical utility” as required by the Paperwork Reduction Act.


Invited by DATIA to accompany our presentation was a representative from the Society for Human Resources, a 150,000 member association which also supported DATIA’s concerns on the Designated Employer Representative Issue.


This meeting followed a recent meeting between DATIA and the Small Business Administration where DATIA outlined the regulation’s impact on small business. Officials from SBA were also present at the White House meeting and are following it to ensure that it complies with the Regulatory Flexibility Act, which DOT claims it is exempt from.


Relevant Links

DATIA's Meeting Points with the Office of Information and Regulatory Affairs

Results of DATIA’s Review of DOT Docket on 49 CFR Part 40 Rulemaking

Follow Up Letter to DOT on Why Small Firms Would Be Impacted

DATIA's Comments to DOT Docket for NPRM, 49 CFR Part 40