Summary
This regulation implements the Drug-Free Workplace Act for Department of Interior grants and cooperative agreements. It requires recipients to publish drug-free workplace statements, maintain awareness programs, notify agencies of employee drug convictions within 10 days, take personnel action or require rehabilitation within 30 days, and identify all workplaces where grant work occurs. Violations can result in suspended payments, terminated awards, or debarment for up to five years.
Reason
This regulation imposes significant compliance costs on countless small businesses, nonprofits, educational institutions, and local governments receiving even modest DOI grants—burdens 30% higher per employee for small firms. It federalizes workplace drug policy far from actual federal spending, using attachment conditions to regulate conduct with no nexus to proper federal purposes. The vague 'good faith effort' standard invites arbitrary enforcement, while existing federal/state criminal laws, workers' compensation, and private insurance already address workplace drug issues. The unseen consequences include discouraging hiring of rehabilitated individuals and creating barriers to entry for small competitors—exactly the anti-competitive effects Mises and Hayek warned of.