Mr. Robert L. Anderberg
Director, Office of Local Systems
Iowa Department of Transportation
800 Lincoln Way
Ames, Iowa 50010

Dear Mr. Anderberg:

Thank you for your letter in which you ask several questions related to the Federal Transit Administration's (FTA) drug and alcohol testing program. Your questions are:

1. Is it acceptable for an Iowa DOT subrecipient to administer the drug and alcohol testing program for its subproviders acting as the employer for the employees of the subproviders in order to submit one report for all[?] Are there any conditions under which this may be allowed? What are the implications for the rights to privacy provisions in these situations?

It is permissible for an FTA subrecipient to manage a contractor's drug and alcohol testing program (e.g., establishing contracts with collection sites, Medical Review Officer (MRO), etc., for use by and benefit of contractors). However, the contractor itself actually conducts the program. This includes retaining exclusive right to receive drug and alcohol test results, and submitting its own MIS forms.

Because the contractor is the employer of record, only the contractor may receive test results. The contractor must comply with the provisions of 49 CFR 653.75 and 654.55 regarding confidentiality of test results and the testing process.

2. Is it acceptable for an Iowa DOT subrecipient to include taxi-cab drivers in its testing and reporting pool when a request to do so is made in writing by the taxi company? Are there any conditions which may allow this?

While a contractor such as a taxi-cab company may be included in a subrecipient's random testing pool, the contractor may not be included in the subrecipient's reporting pool. Each contractor compiles its own MIS forms, which it in turn submits to the subrecipient. Further, the MRO reports results back to the contractor, not to the subrecipient.

3. If a taxi-cab company which provides service under contract to an Iowa DOT subrecipient is required to submit MIS reports separately, what information can be made available to the Iowa DOT subrecipient to verify that the taxi-cab company is complying with the drug and alcohol regulations? In a number of small Iowa communities, taxi-cab companies are owner/operator [entities], or have only one or two employees.

A subrecipient must exercise its program oversight authority to ensure that its contractors and vendors comply with all applicable regulations. A recent edition of the FTA Drug and Alcohol Regulations Updates (Summer 1997, Issue 5), highlights steps a subrecipient can take to ensure that its contractors and vendors comply with the FTA's drug and alcohol testing regulations. I am enclosing a copy for your convenience.

If you have additional questions, please contact Michael Connelly of my staff at (202) 366-4011.

Very truly yours,
(Signed)
Patrick W. Reilly
Chief Counsel

Enclosure