As Introduced

136th General Assembly

Regular Session S. B. No. 347

2025-2026

To amend section 153.03 and to enact sections 4123.221, 4123.346, and 4123.347 of the Revised Code regarding the Bureau of Workers' Compensation drug free workplace program.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 153.03 be amended and sections 4123.221, 4123.346, and 4123.347 of the Revised Code be enacted to read as follows:

Sec. 153.03. (A) As used in this section:

(1) "Contracting authority" means any state agency or other state instrumentality that is authorized to award a public improvement contract.

(2) "Bidder" means a person who submits a bid to a contracting authority to perform work under a public improvement contract.

(3) "Contractor" means any person with whom a contracting authority has entered into a public improvement contract to provide labor for a public improvement and includes a construction manager at risk and a design-build firm.

(4) "Subcontractor" means any person who undertakes to provide any part of the labor on the site of a public improvement under a contract with any person other than the contracting authority, including all such persons in any tier.

(5) "Construction manager" has the same meaning as in section 9.33 of the Revised Code.

(6) "Construction manager at risk" has the same meaning as in section 9.33 of the Revised Code.

(7) "Design-build firm" has the same meaning as in section 153.65 of the Revised Code.

(8) "Labor" means any activity performed by a person that contributes to the direct installation of a product, component, or system, or that contributes to the direct removal of a product, component, or system.

(9) "Public improvement contract" means any contract that is financed in whole or in part with money appropriated by the general assembly, or that is financed in any manner by a contracting authority, and that is awarded by a contracting authority for the construction, alteration, or repair of any public building, public highway, or other public improvement.

(10) "State agency" means every organized body, office, or agency established by the laws of this state for the exercise of any function of state government.

(B) A contracting authority shall not award a public improvement contract to a bidder, and a construction manager at risk or design-build firm shall not award a subcontract, unless the contract or subcontract contains both of the following:

(1) The statements described in division (E) of this section;

(2) Terms that require the contractor or subcontractor to be enrolled in and be in good standing in the drug-free workplace program of the bureau of workers' compensation or a comparable program approved by the bureau that requires an employer to do all of the following:

(a) Develop, implement, and provide to all employees a written substance use policy that conveys full and fair disclosure of the employer's expectations that no employee be at work with alcohol or drugs in the employee's system, and specifies the consequences for violating the policy.

(b) Conduct drug and alcohol tests on employees in accordance with division (B)(2)(c) of this section and under the following conditions:

(i) Prior to an individual's employment or ~~during~~ after an employee's probationary period for employment, which shall not exceed ~~one hundred twenty~~ thirty days after the probationary period ~~begins~~ends;

(ii) At random intervals while an employee provides labor or on-site supervision of labor for a public improvement contract. The employer shall use the neutral selection procedures required by the United States department of transportation to determine which employees to test and when to test those employees. When testing employees under this division, the employer shall test not less than ten per cent of the total number of the employer's employees who are providing labor or on-site supervision of labor for a public improvement contract.

(iii) After an accident at the site where labor is being performed pursuant to a public improvement contract. For purposes of this division, "accident" has the meaning established in rules the administrator of workers' compensation adopts pursuant to Chapters 4121. and 4123. of the Revised Code for the bureau's drug-free workplace program, as those rules exist on March 30, 2007.

(iv) When the employer, construction manager, construction manager at risk, or design-build firm has reasonable suspicion that prior to an accident an employee may be in violation of the employer's written substance use policy. For purposes of this division, "reasonable suspicion" has the meaning established in rules the administrator adopts pursuant to Chapters 4121. and 4123. of the Revised Code for the bureau's drug-free workplace program, as those rules exist on March 30, 2007.

(v) Prior to an employee returning to a work site to provide labor for a public improvement contract after the employee tested positive for drugs or alcohol, and again after the employee returns to that site to provide labor under that contract, as required by either the employer, construction manager, construction manager at risk, design-build firm, or conditions in the contract.

(c) Use the following types of tests when conducting a test on an employee under the conditions described in division (B)(2)(b) of this section:

(i) Drug and alcohol testing that uses the federal testing model that the administrator has incorporated into the bureau's drug-free workplace program;

(ii) Testing to determine whether the concentration of alcohol on an employee's breath is equal to or in excess of the level specified in division (A)(1)(d) or (h) of section 4511.19 of the Revised Code, which is obtained through an evidentiary breath test conducted by a breath alcohol technician using breath testing equipment that meets standards established by the United States department of transportation, or, if such technician and equipment are unavailable, a blood test may be used to determine whether the concentration of alcohol in an employee's blood is equal to or in excess of the level specified in division (A)(1)(b) or (f) of section 4511.19 of the Revised Code.

(d) Require all employees to receive at least one hour of training that increases awareness of and attempts to deter substance ~~abuse~~ use and supplies information about employee assistance to deal with substance ~~abuse~~ use problems, and require all supervisors to receive one additional hour of training in skill building to teach a supervisor how to observe and document employee behavior and intervene when reasonable suspicion exists of substance use;

(e) Require all supervisors and employees to receive the training described in division (B)(2)(d) of this section before work for a public improvement contract commences or during the term of a public improvement contract;

(f) Require that the training described in division (B)(2)(d) of this section be provided using material prepared by an individual who has credentials or experience in substance ~~abuse~~ use training;

(g) Assist employees by providing, at a minimum, a list of community resources from which an employee may obtain help with substance ~~abuse~~ use problems, except that this requirement does not preclude an employer from having a policy that allows an employer to terminate an employee's employment the first time the employee tests positive for drugs or alcohol or if an employee refuses to be tested for drugs, alcohol, or both.

(C) Any time the United States department of health and human services changes the federal testing model that the administrator has incorporated into the bureau's drug-free workplace program in a manner that allows additional or new products, protocols, procedures, and standards in the model, the administrator may adopt rules establishing standards to allow employers to use those additional or new products, protocols, procedures, or standards to satisfy the requirements of division (B)(2)(c) of this section, and the bureau may approve an employer's drug-free workplace program that meets the administrator's standards and the other requirements specified in division (B)(2) of this section.

(D) A contracting authority shall ensure that money appropriated by the general assembly for the contracting authority's public improvement contract or, in the case of a state institution of higher education, the institution's financing for the public improvement contract, is not expended unless the contractor for that contract is enrolled in and in good standing in a drug-free workplace program described in division (B) of this section. Prior to awarding a contract to a bidder, a contracting authority shall verify that the bidder is enrolled in and in good standing in such a program.

(E) A contracting authority shall include all of the following statements in the public improvement contract entered into between the contracting authority and a contractor for the public improvement:

(1) "Each contractor shall require all subcontractors with whom the contractor is in contract for the public improvement to be enrolled in and be in good standing in the Bureau of Workers' Compensation's Drug-Free Workplace Program or a comparable program approved by the Bureau that meets the requirements specified in section 153.03 of the Revised Code prior to a subcontractor providing labor at the project site of the public improvement."

(2) "Each subcontractor shall require all lower-tier subcontractors with whom the subcontractor is in contract for the public improvement to be enrolled in and be in good standing in the Bureau of Workers' Compensation's Drug-Free Workplace Program or a comparable program approved by the Bureau that meets the requirements specified in section 153.03 of the Revised Code prior to a lower-tier subcontractor providing labor at the project site of the public improvement."

(3) "Failure of a contractor to require a subcontractor to be enrolled in and be in good standing in the Bureau of Workers' Compensation's Drug-Free Workplace Program or a comparable program approved by the Bureau that meets the requirements specified in section 153.03 of the Revised Code prior to the time that the subcontractor provides labor at the project site will result in the contractor being found in breach of the contract and that breach shall be used in the responsibility analysis of that contractor or the subcontractor who was not enrolled in a program for future contracts with the state for five years after the date of the breach."

(4) "Failure of a subcontractor to require a lower-tier subcontractor to be enrolled in and be in good standing in the Bureau of Workers' Compensation's Drug-Free Workplace Program or a comparable program approved by the Bureau that meets the requirements specified in section 153.03 of the Revised Code prior to the time that the lower-tier subcontractor provides labor at the project site will result in the subcontractor being found in breach of the contract and that breach shall be used in the responsibility analysis of that subcontractor or the lower-tier subcontractor who was not enrolled in a program for future contracts with the state for five years after the date of the breach."

(F) In the event a construction manager, construction manager at risk, or design-build firm intends and is authorized to provide labor for a public improvement contract, a contracting authority shall verify, prior to awarding a contract for construction management services or design-build services, that the construction manager, construction manager at risk, or design-build firm was enrolled in and in good standing in a drug-free workplace program described in division (B) of this section prior to entering into the public improvement contract. The contracting authority shall not award a contract for construction manager services or design-build services if the construction manager, construction manager at risk, or design-build firm is not enrolled in or in good standing in such a program.

Sec. 4123.221. With respect to the bureau of workers' compensation drug free workplace program established under section 4123.346 of the Revised Code, the administrator shall do all of the following:

(A) Prepare a report that includes information regarding the program;

(B) Submit the report to the general assembly not later than the first day of June of each year;

(1) The number of employers that participated in the program during the preceding year;

(2) The per cent change in the number of employers that participated in the program from year to year during the preceding biennium;

(3) The number of drug tests on which employees tested positive that were reported to the administrator by employers that participated in the program during the preceding year;

(4) The per cent change in the number of reports of positive drug tests from year to year during the preceding biennium;

(5) Information regarding each type of substance detected by positive drug tests reported to the administrator during the preceding year;

(6) The amount of each substance detected represented as a percentage of the total number of positive drug tests reported to the administrator during the preceding year;

(7) Information regarding the expenses incurred by the administrator in administering the program during the preceding year.

Sec. 4123.346. (A) As used in this section:

(1) "Advanced program level" means a component of the bureau of workers' compensation drug free workplace program that, in addition to including all of the requirements of a basic program level, requires a participating employer to do all of the following:

(a) Conduct random drug testing of at least fifteen per cent of the employer's employees each program period;

(b) Ensure its written policy required under division (A)(2)(a) of this section addresses random drug testing and employee assistance;

(d) Agree not to discharge from employment an employee who tests positive on a drug test for the first time, who indicates the employee has a substance use problem, or who is referred by a supervisor for a substance assessment and who agrees to participate in the assessment.

(2) "Basic program level" means a component of the bureau of workers' compensation drug free workplace program that requires a participating employer to do all of the following:

(a) Adopt a written policy described under division (B)(2) of section 4123.347 of the Revised Code;

(b) Require the employer's employees to complete the annual employee training described under division (B)(3) of section 4123.347 of the Revised Code;

(c) Require the employer's supervisors to complete the annual supervisor skill-building training described under division (B)(4) of section 4123.347 the Revised Code;

(d) Implement an employee assistance plan;

(e) Conduct employee drug and alcohol testing that occurs before employment, after an accident, after reasonable suspicion, and on return to duty.

(3) "Comparable program" means a program described in section 153.03 of the Revised Code.

(B) The administrator of workers' compensation shall do all of the following:

(1) Not later than one hundred eighty days after the effective date of this section, establish a bureau of workers' compensation drug free workplace program that offers a discount on premium rates for an employer that participates in and complies with the requirements of a basic program level, advanced program level, or comparable program;

(2) Name the program the bureau of workers' compensation drug free workplace program;

(3) Calculate the discount using a multiplier listed under division (C) of this section.

(C) For purposes of calculating a premium discount under division (B) of this section, the administrator shall use the following multipliers for the calculation:

(1) For an employer participating in a comparable program, five per cent;

(2) For an employer participating in a basic program level, ten per cent;

(3) For an employer participating in an advanced program level, fifteen per cent.

Sec. 4123.347. (A) Other than the bureau of workers' compensation drug free workplace program established under section 4123.346 of the Revised Code, the administrator of workers' compensation shall not establish any other drug free workplace program that incentivizes a participating employer to create a drug free workplace.

(B) With respect to each employer participating in the bureau of workers' compensation drug free workplace program established under section 4123.346 of the Revised Code, the administrator shall do all of the following:

(1) Permit the employer to combine a discount the employer receives on premium rates by participating in the program with a discount available under any other loss prevention or workplace safety program established by the administrator;

(2) Require the employer to adopt a written substance use policy that specifies the employer's expectation that no employee be at work with alcohol or any drug in the employee's system and the consequences for violating the policy;

(3) Require the employer to require its employees to complete at least one hour of annual training to deter substance use and to provide information regarding employee assistance for substance use problems;

(4) Require the employer to require its supervisors to complete an annual two-hour supervisor skill-building training to educate them on how to enforce the employer's written substance use policy and how to observe and document employee behavior and intervene if reasonable suspicion exists of substance use;

(5) Permit a supervisor to conduct the supervisor skill-building training if the supervisor completes a training program developed by the administrator that educates the supervisor on how to conduct the supervisor skill-building training;

(6) Require each vendor contracted with the administrator to develop the education and training materials used in connection with the training described under divisions (B)(3) to (5) of this section to update the materials annually.

(C) The education and training materials described under division (B)(6) of this section shall be updated to reflect the best practices that exist at the time they are updated in preventing workplace accidents and injuries attributed to the use of alcohol and drugs. If the administrator develops the materials, the administrator shall update the materials annually in accordance with this division.

Section 2. That existing section 153.03 of the Revised Code is hereby repealed.