October 1, 2004

The Honorable Donald Manzullo
Chairman, House Committee on Small Business
VIA FACSIMILE: 202-225-5284 

Dear Congressman Manzullo:

On behalf of the 1,300 members of the Drug & Alcohol Testing Industry Association (DATIA), I applaud your sponsorship of HR 5108, the Small Business Reauthorization and Manufacturing Assistance Act of 2004, which includes the Paul D. Coverdell Drug Free Workplace Program.

The Act will renew crucial funding for the Small Business Administration to set-up and provide technical assistance to small businesses around the country that need help setting up drug free workplace programs. The grants have previously been available to both Small Business Development Centers and private entities.

Since 1998, the program has had great success around the country.  According to the report from one grantee, drug free workplaces he set up using funds from the Coverdell program saw:

•  Accidents in the workplace decreased by 59%
• Absenteeism in the workplace decreased by 53
• Tardiness in the workplace decreased by 59%
• Health care benefit utilization decreased by 53%
• Workers comp claims decreased by 53%
• Theft in the workplace decreased by 56%
• Turnover in the workplace decreased by 56%

Similar results can be found nationwide. Many small businesses want to set up drug free workplace programs, but don’t know where to begin.  The Coverdell grants allow for experts in the drug and alcohol testing industry to assist these small companies without a significant financial burden.

Additionally, allowing private entities to apply for the grants is essential.  When the Act was first passed in 1998, DATIA worked to include language that would allow for-profit companies to apply for and utilize the grants.

“… an ‘eligible intermediary’ as an organization located in the United States established to develop comprehensive drug-free workplace programs or to supply drug-free workplace services or to provide other assistance and services to small businesses. Eligible intermediaries must have a specific history of no less than two-years experience in establishing drug-free workplace programs and have an existing drug-free workplace program themselves. Nothing in this Section is intended to encourage competition between profit and not-for-profit organizations.” (See senate report 105-348, page 2.)