Before the House State Government Committee
Opponent Testimony on Substitute House Bill 136
Presented by William Fitzgibbon, Director, Ohio Small Business Council
May 11, 2004

Mr. Chairman and members of the House State Government Committee, thank you for the opportunity to testify today. My name is William Fitzgibbon and I am the Director of the Ohio Small Business Council (OSBC). I am here to testify on behalf of the members of OSBC in opposition to Sub.HB 136 (R-Smith). HB 136 would codify the September 20, 2002 Executive Order that prohibits a state agency from awarding a public improvement contract unless that contractor had a Bureau of Worker Compensation certified drug free workplace program.

While it is OSBC's position that all workplaces should be drug and alcohol free, a "one-size fits all" model is not always the best. While the bureau's program might work for some, or even most, large contractors; it also can be a barrier for a small contractor. Couple this with prevailing wage, and other government imposed requirements, and you can see why the small and mid sized contractor is at an immediate disadvantage in competing for state projects. Small businesses are the backbone of our economy. These businesses already pay income taxes, property taxes, unemployment taxes, workers comp premiums and file permits and paperwork in extraordinary amounts. How high are the barriers going to get before small businesses can't compete and are shut out altogether? Also, if it is the construction industry today, which industry tomorrow will be required to have a BWC like program to do business with the state of Ohio?

That being said, it must be pointed out that there are some benefits to joining BWC's drug free program. The BWC program does come with a premium discount, dependent on the program you implement, and the bureau also does offer a plan designed for small employers, the DFWP-EZ program. Unfortunately even the EZ program comes with some hurdles. Small businesses, under this program, still have to implement the following steps:

Written substance policy
Employee education
Supervisor training
Drug and alcohol testing
Employee assistance
10-Step Business Plan

What this Executive Order, and HB 136, do not take into account is the fact the many employers have a stronger drug free workplace policy now. The employer who simply has a zero tolerance policy, laid out on a single piece of paper, does not qualify to bid on state construction work. While BWC's programs can prove to be effective tools to combat drugs and alcohol on the jobsite, there is no evidence that says those programs are any more effective than a zero tolerance or any other drug free policy.

Let me again reiterate that OSBC supports a drug free work environment. We fully support HB 223 (R-Gibbs), rebuttable presumption bill, and feel it is an important component to combating substance abuse in the workplace. We also feel that a strong drug policy is a necessity for every employer. That is why we, in conjunction with the Ohio Chamber of Commerce and the Manufactures Education Council, promote these policies at each and every workers compensation seminar held across the state.

That concludes my formal testimony. Thank you again Mr. Chairman for allowing me to testify. I would be pleased to answer any questions at this time.