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COOPERATIVE AGREEMENT NO. C-1-3252 <br />EXHIBIT B <br />National Drug -Free <br />Workplace Alliance <br />DRUG -FREE WORKPLACE ACT OF 1988 <br />THE FEDERAL LAW <br />This law, enacted November 1988, with subsequent modification in 1994 by the <br />Federal Acquisition Streamlining Act, (raising the contractor amount from <br />$25,000 to $100,000), requires compliance by all organizations contracting with <br />any U. S. Federal agency in the amount of $100,000 or more that does not <br />involve the acquisition of commercial goods via a procurement contract or <br />purchase order, and is performed in whole in the United States. It also requires <br />that all organizations receiving federal grants, regardless of amount granted, <br />maintain a drug -free workplace in compliance with the Drug -Free Workplace Act <br />of 1988. The Law further requires that all individual contractors and grant <br />recipients, regardless of dollar amount/value of the contract or grant, comply with <br />the Law. <br />Certification that this requirement is being met must be done in the following <br />manner: <br />By publishing a statement informing all covered employees that the unlawful <br />manufacture, distribution, dispensing, possession, or use of a controlled <br />substance is prohibited in the covered workplace, and what actions will be taken <br />against employees in the event of violations of such statement. <br />By providing ALL covered employees with a copy of the above -described <br />statement, including the information that as a condition of employment on the <br />Federal contract or grant, the employee must abide by the terms and conditions <br />of the policy statement. <br />For Federal contractors this encompasses employees involved in the <br />performance of the contract. For Federal grantees all employees must come <br />under this requirement as the act includes all direct charge" employees (those <br />whose services are directly & explicitly paid for by grant funds), and "indirect <br />charge" employees (members of grantee's organization who perform support or <br />overhead functions related to the grant and for which the Federal Government <br />pays its share of expenses under the grant program). <br />Among "indirect charge" employees, those whose impact or involvement is <br />insignificant to the performance of the grant are exempted from coverage. Any <br />other person, who is on the grantee's payroll and works in any activity under the <br />grant, even if not paid from grant funds, is also considered to be an employee. <br />Page 1 of 2 <br />Revised: 0310312010 <br />