[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR147]
[Page 587-592]
TITLE 13--BUSINESS CREDIT AND ASSISTANCE
CHAPTER I--SMALL BUSINESS ADMINISTRATION
PART 147_GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE
(NONPROCUREMENT)
Subpart A_Purpose and Coverage
Sec.
147.100 What does this part do?
147.105 Does this part apply to me?
147.110 Are any of my Federal assistance awards exempt from this part?
147.115 Does this part affect the Federal contracts that I receive?
Subpart B_Requirements for Recipients Other Than Individuals
147.200 What must I do to comply with this part?
147.205 What must I include in my drug-free workplace statement?
147.210 To whom must I distribute my drug-free workplace statement?
147.215 What must I include in my drug-free awareness program?
147.220 By when must I publish my drug-free workplace statement and
establish my drug-free awareness program?
147.225 What actions must I take concerning employees who are convicted
of drug violations in the workplace?
147.230 How and when must I identify workplaces?
Subpart C_Requirements for Recipients Who Are Individuals
147.300 What must I do to comply with this part if I am an individual
recipient?
147.301 [Reserved]
Subpart D_Responsibilities of SBA Awarding Officials
147.400 What are my responsibilities as an SBA awarding official?
Subpart E_Violations of This Part and Consequences
147.500 How are violations of this part determined for recipients other
than individuals?
147.505 How are violations of this part determined for recipients who
are individuals?
147.510 What actions will the Federal Government take against a
recipient determined to have violated this part?
147.515 Are there any exceptions to those actions?
Subpart F_Definitions
147.605 Award.
147.610 Controlled substance.
147.615 Conviction.
147.620 Cooperative agreement.
147.625 Criminal drug statute.
147.630 Debarment.
147.635 Drug-free workplace.
147.640 Employee.
147.645 Federal agency or agency.
147.650 Grant.
147.655 Individual.
147.660 Recipient.
147.665 State.
147.670 Suspension.
Authority: 41 U.S.C. 701-707.
Source: 68 FR 66557, 66572, Nov. 26, 2003, unless otherwise noted.
Subpart A_Purpose and Coverage
Sec. 147.100 What does this part do?
This part carries out the portion of the Drug-Free Workplace Act of
1988 (41 U.S.C. 701 et seq., as amended) that applies to grants. It also
applies the provisions of the Act to cooperative agreements and other
financial assistance awards, as a matter of Federal Government policy.
Sec. 147.105 Does this part apply to me?
(a) Portions of this part apply to you if you are either--
(1) A recipient of an assistance award from the SBA; or
(2) A(n) SBA awarding official. (See definitions of award and
recipient in Sec. Sec. 147.605 and 147.660, respectively.)
(b) The following table shows the subparts that apply to you:
------------------------------------------------------------------------
If you are . . . see subparts . . .
------------------------------------------------------------------------
(1) A recipient who is not an individual.. A, B and E.
(2) A recipient who is an individual...... A, C and E.
(3) A(n) SBA awarding official............ A, D and E.
------------------------------------------------------------------------
Sec. 147.110 Are any of my Federal assistance awards exempt from this
part?
This part does not apply to any award that the SBA Administrator or
designee determines that the application of this part would be
inconsistent with the international obligations of the United States or
the laws or regulations of a foreign government.
[[Page 588]]
Sec. 147.115 Does this part affect the Federal contracts that I
receive?
It will affect future contract awards indirectly if you are debarred
or suspended for a violation of the requirements of this part, as
described in Sec. 147. 510(c). However, this part does not apply
directly to procurement contracts. The portion of the Drug-Free
Workplace Act of 1988 that applies to Federal procurement contracts is
carried out through the Federal Acquisition Regulation in chapter 1 of
Title 48 of the Code of Federal Regulations (the drug-free workplace
coverage currently is in 48 CFR part 23, subpart 23.5).
Subpart B_Requirements for Recipients Other Than Individuals
Sec. 147.200 What must I do to comply with this part?
There are two general requirements if you are a recipient other than
an individual.
(a) First, you must make a good faith effort, on a continuing basis,
to maintain a drug-free workplace. You must agree to do so as a
condition for receiving any award covered by this part. The specific
measures that you must take in this regard are described in more detail
in subsequent sections of this subpart. Briefly, those measures are to--
(1) Publish a drug-free workplace statement and establish a drug-
free awareness program for your employees (see Sec. Sec. 147.205
through 147.220); and
(2) Take actions concerning employees who are convicted of violating
drug statutes in the workplace (see Sec. 147.225).
(b) Second, you must identify all known workplaces under your
Federal awards (see Sec. 147.230).
Sec. 147.205 What must I include in my drug-free workplace statement?
You must publish a statement that--
(a) Tells your employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance
is prohibited in your workplace;
(b) Specifies the actions that you will take against employees for
violating that prohibition; and
(c) Lets each employee know that, as a condition of employment under
any award, he or she:
(1) Will abide by the terms of the statement; and
(2) Must notify you in writing if he or she is convicted for a
violation of a criminal drug statute occurring in the workplace and must
do so no more than five calendar days after the conviction.
Sec. 147.210 To whom must I distribute my drug-free workplace
statement?
You must require that a copy of the statement described in Sec.
147.205 be given to each employee who will be engaged in the performance
of any Federal award.
Sec. 147.215 What must I include in my drug-free awareness program?
You must establish an ongoing drug-free awareness program to inform
employees about--
(a) The dangers of drug abuse in the workplace;
(b) Your policy of maintaining a drug-free workplace;
(c) Any available drug counseling, rehabilitation, and employee
assistance programs; and
(d) The penalties that you may impose upon them for drug abuse
violations occurring in the workplace.
Sec. 147.220 By when must I publish my drug-free workplace statement
and establish my drug-free awareness program?
If you are a new recipient that does not already have a policy
statement as described in Sec. 147.205 and an ongoing awareness program
as described in Sec. 147.215, you must publish the statement and
establish the program by the time given in the following table:
------------------------------------------------------------------------
If . . . then you . . .
------------------------------------------------------------------------
(a) The performance period of the award must have the policy statement
is less than 30 days. and program in place as soon
as possible, but before the
date on which performance is
expected to be completed.
(b) The performance period of the award must have the policy statement
is 30 days or more. and program in place within 30
days after award.
[[Page 589]]
(c) You believe there are extraordinary may ask the SBA awarding
circumstances that will require more official to give you more time
than 30 days for you to publish the to do so. The amount of
policy statement and establish the additional time, if any, to be
awareness program. given is at the discretion of
the awarding official.
------------------------------------------------------------------------
Sec. 147.225 What actions must I take concerning employees who are
convicted of drug violations in the workplace?
There are two actions you must take if an employee is convicted of a
drug violation in the workplace:
(a) First, you must notify Federal agencies if an employee who is
engaged in the performance of an award informs you about a conviction,
as required by Sec. 147.205(c)(2), or you otherwise learn of the
conviction. Your notification to the Federal agencies must--
(1) Be in writing;
(2) Include the employee's position title;
(3) Include the identification number(s) of each affected award;
(4) Be sent within ten calendar days after you learn of the
conviction; and
(5) Be sent to every Federal agency on whose award the convicted
employee was working. It must be sent to every awarding official or his
or her official designee, unless the Federal agency has specified a
central point for the receipt of the notices.
(b) Second, within 30 calendar days of learning about an employee's
conviction, you must either--
(1) Take appropriate personnel action against the employee, up to
and including termination, consistent with the requirements of the
Rehabilitation Act of 1973 (29 U.S.C. 794), as amended; or
(2) Require the employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for these purposes
by a Federal, State or local health, law enforcement, or other
appropriate agency.
Sec. 147.230 How and when must I identify workplaces?
(a) You must identify all known workplaces under each SBA award. A
failure to do so is a violation of your drug-free workplace
requirements. You may identify the workplaces--
(1) To the SBA official that is making the award, either at the time
of application or upon award; or
(2) In documents that you keep on file in your offices during the
performance of the award, in which case you must make the information
available for inspection upon request by SBA officials or their
designated representatives.
(b) Your workplace identification for an award must include the
actual address of buildings (or parts of buildings) or other sites where
work under the award takes place. Categorical descriptions may be used
(e.g., all vehicles of a mass transit authority or State highway
department while in operation, State employees in each local
unemployment office, performers in concert halls or radio studios).
(c) If you identified workplaces to the SBA awarding official at the
time of application or award, as described in paragraph (a)(1) of this
section, and any workplace that you identified changes during the
performance of the award, you must inform the SBA awarding official.
Subpart C_Requirements for Recipients Who Are Individuals
Sec. 147.300 What must I do to comply with this part if I am an
individual recipient?
As a condition of receiving a(n) SBA award, if you are an individual
recipient, you must agree that--
(a) You will not engage in the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance in conducting
any activity related to the award; and
(b) If you are convicted of a criminal drug offense resulting from a
violation occurring during the conduct of any award activity, you will
report the conviction:
(1) In writing.
(2) Within 10 calendar days of the conviction.
(3) To the SBA awarding official or other designee for each award
that you currently have, unless Sec. 147.301 or the award document
designates a central
[[Page 590]]
point for the receipt of the notices. When notice is made to a central
point, it must include the identification number(s) of each affected
award.
Sec. 147.301 [Reserved]
Subpart D_Responsibilities of SBA Awarding Officials
Sec. 147.400 What are my responsibilities as a(n) SBA awarding
official?
As a(n) SBA awarding official, you must obtain each recipient's
agreement, as a condition of the award, to comply with the requirements
in--
(a) Subpart B of this part, if the recipient is not an individual;
or
(b) Subpart C of this part, if the recipient is an individual.
Subpart E_Violations of this Part and Consequences
Sec. 147.500 How are violations of this part determined for recipients
other than individuals?
A recipient other than an individual is in violation of the
requirements of this part if the SBA Administrator or designee
determines, in writing, that--
(a) The recipient has violated the requirements of subpart B of this
part; or
(b) The number of convictions of the recipient's employees for
violating criminal drug statutes in the workplace is large enough to
indicate that the recipient has failed to make a good faith effort to
provide a drug-free workplace.
Sec. 147.505 How are violations of this part determined for recipients
who are individuals?
An individual recipient is in violation of the requirements of this
part if the SBA Administrator or designee determines, in writing, that--
(a) The recipient has violated the requirements of subpart C of this
part; or
(b) The recipient is convicted of a criminal drug offense resulting
from a violation occurring during the conduct of any award activity.
Sec. 147.510 What actions will the Federal Government take against a
recipient determined to have violated this part?
If a recipient is determined to have violated this part, as
described in Sec. 147.500 or Sec. 147.505, the SBA may take one or
more of the following actions--
(a) Suspension of payments under the award;
(b) Suspension or termination of the award; and
(c) Suspension or debarment of the recipient under 13 CFR Part 145,
for a period not to exceed five years.
Sec. 147.515 Are there any exceptions to those actions?
The SBA Administrator may waive with respect to a particular award,
in writing, a suspension of payments under an award, suspension or
termination of an award, or suspension or debarment of a recipient if
the SBA Administrator determines that such a waiver would be in the
public interest. This exception authority cannot be delegated to any
other official.
Subpart F_Definitions
Sec. 147.605 Award.
Award means an award of financial assistance by the SBA or other
Federal agency directly to a recipient.
(a) The term award includes:
(1) A Federal grant or cooperative agreement, in the form of money
or property in lieu of money.
(2) A block grant or a grant in an entitlement program, whether or
not the grant is exempted from coverage under the Governmentwide rule 13
CFR Part 147 that implements OMB Circular A-102 (for availability, see 5
CFR 1310.3) and specifies uniform administrative requirements.
(b) The term award does not include:
(1) Technical assistance that provides services instead of money.
(2) Loans.
(3) Loan guarantees.
(4) Interest subsidies.
(5) Insurance.
(6) Direct appropriations.
[[Page 591]]
(7) Veterans' benefits to individuals (i.e., any benefit to
veterans, their families, or survivors by virtue of the service of a
veteran in the Armed Forces of the United States).
Sec. 147.610 Controlled substance.
Controlled substance means a controlled substance in schedules I
through V of the Controlled Substances Act (21 U.S.C. 812), and as
further defined by regulation at 21 CFR 1308.11 through 1308.15.
Sec. 147.615 Conviction.
Conviction means a finding of guilt (including a plea of nolo
contendere) or imposition of sentence, or both, by any judicial body
charged with the responsibility to determine violations of the Federal
or State criminal drug statutes.
Sec. 147.620 Cooperative agreement.
Cooperative agreement means an award of financial assistance that,
consistent with 31 U.S.C. 6305, is used to enter into the same kind of
relationship as a grant (see definition of grant in Sec. 147.650),
except that substantial involvement is expected between the Federal
agency and the recipient when carrying out the activity contemplated by
the award. The term does not include cooperative research and
development agreements as defined in 15 U.S.C. 3710a.
Sec. 147.625 Criminal drug statute.
Criminal drug statute means a Federal or non-Federal criminal
statute involving the manufacture, distribution, dispensing, use, or
possession of any controlled substance.
Sec. 147.630 Debarment.
Debarment means an action taken by a Federal agency to prohibit a
recipient from participating in Federal Government procurement contracts
and covered nonprocurement transactions. A recipient so prohibited is
debarred, in accordance with the Federal Acquisition Regulation for
procurement contracts (48 CFR part 9, subpart 9.4) and the common rule,
Government-wide Debarment and Suspension (Nonprocurement), that
implements Executive Order 12549 and Executive Order 12689.
Sec. 147.635 Drug-free workplace.
Drug-free workplace means a site for the performance of work done in
connection with a specific award at which employees of the recipient are
prohibited from engaging in the unlawful manufacture, distribution,
dispensing, possession, or use of a controlled substance.
Sec. 147.640 Employee.
(a) Employee means the employee of a recipient directly engaged in
the performance of work under the award, including--
(1) All direct charge employees;
(2) All indirect charge employees, unless their impact or
involvement in the performance of work under the award is insignificant
to the performance of the award; and
(3) Temporary personnel and consultants who are directly engaged in
the performance of work under the award and who are on the recipient's
payroll.
(b) This definition does not include workers not on the payroll of
the recipient (e.g., volunteers, even if used to meet a matching
requirement; consultants or independent contractors not on the payroll;
or employees of subrecipients or subcontractors in covered workplaces).
Sec. 147.645 Federal agency or agency.
Federal agency or agency means any United States executive
department, military department, government corporation, government
controlled corporation, any other establishment in the executive branch
(including the Executive Office of the President), or any independent
regulatory agency.
Sec. 147.650 Grant.
Grant means an award of financial assistance that, consistent with
31 U.S.C. 6304, is used to enter into a relationship--
(a) The principal purpose of which is to transfer a thing of value
to the recipient to carry out a public purpose of support or stimulation
authorized by a law of the United States, rather than to acquire
property or services for the
[[Page 592]]
Federal Government's direct benefit or use; and
(b) In which substantial involvement is not expected between the
Federal agency and the recipient when carrying out the activity
contemplated by the award.
Sec. 147.655 Individual.
Individual means a natural person.
Sec. 147.660 Recipient.
Recipient means any individual, corporation, partnership,
association, unit of government (except a Federal agency) or legal
entity, however organized, that receives an award directly from a
Federal agency.
Sec. 147.665 State.
State means any of the States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or any territory or
possession of the United States.
Sec. 147.670 Suspension.
Suspension means an action taken by a Federal agency that
immediately prohibits a recipient from participating in Federal
Government procurement contracts and covered nonprocurement transactions
for a temporary period, pending completion of an investigation and any
judicial or administrative proceedings that may ensue. A recipient so
prohibited is suspended, in accordance with the Federal Acquisition
Regulation for procurement contracts (48 CFR part 9, subpart 9.4) and
the common rule, Government-wide Debarment and Suspension
(Nonprocurement), that implements Executive Order 12549 and Executive
Order 12689. Suspension of a recipient is a distinct and separate action
from suspension of an award or suspension of payments under an award.
[[Page 593]]