New legislation regarding employer reporting
regarding positive drug and alcohol tests

November 16, 2005

To: Managers, Clerks, Attorneys, Human Resources Directors

From: Andrew L. Romanet, Jr., General Counsel
Gregg F. Schwitzgebel III, Senior Assistant General Counsel

Subject: New Legislation Regarding Employer Reporting Requirements to DMV Regarding F ederally-Required Drug and Alcohol Tests with Positive Results

During the 2005 legislative session, House Bill 740 was ratified as Chapter 156 of the 2005 Session Laws. The new legislation (hereinafter "the new law") amends existing state statutes under the Commercial Driver License Act (Article 2C of Chapter 20 of the North Carolina General Statutes) regarding employer responsibilities as to f ederally-required drug and alcohol tests for truck drivers having a commercial driver license (49 Code of Federal Regulations (C.F.R.) Part 382) and for transit employees in safety sensitive positions (49 C.F.R. Part 655). The effective date of the new law is December 1, 2005. (The full text of S.L. 2005-156 is attached.)

I.  New Notice Requirements Upon Employers' Receipt of Positive Results from Federally-Required Drug and Alcohol Tests ( Section 1 of the new law; amends G.S. 20-37.19 )

This provision of the new law adds a new subsection (c) to the "Employer responsibilities" statute (G.S. 20-37.19). Employers must report the positive result of any f ederally-required drug and alcohol test to the North Carolina Division of Motor Vehicles (DMV). Notification to DMV must occur within five (5) business days after the employer receives confirmation of the positive test result. This written notification from the employer must provide the following information:

§ name of the driver;

§ address of the driver;

§ drivers license number;

§ social security number; and

§ results of the drug or alcohol test

Please note that this section is covered by the "Penalties" provision (G.S. 20-37.21) of the Commercial Driver License Act, which provides, "Any employer who violates G.S. 20-37.19 shall have committed an infraction and, upon being found responsible, shall pay a penalty of not less than five hundred dollars ($500.00) nor more than ($1,000.00)." G.S. 20-37.21.

II.  DMV Action upon Receipt of Positive Test Result ( Sections 2, 3 & 4 of the new law )

The new law provides that once the employer forwards notice, DMV is required to place a notation of disqualification on the driving record of the individual. The disqualification remains in effect until  DMV receives proof of that individual's successful completion of assessment and treatment by a substance abuse professional in accordance with 49 C.F.R. § 382.503.  (The new law also provides that at the end of the disqualification, DMV must retain the notation on that person's driving record for two years.) Section 4 of the new law sets forth provisions regarding DMV appeal hearings of disqualifications.

For questions, please contact Robert B. Quinn, Jr., Manager, Commercial Driver License at DMV, (919) 861-3319.  The Division is currently in the process of developing a reporting form for employers.