41 U.S.C. § 8103 — Drug-free workplace requirements for Federal grant recipients

(a) In General.
(1) Persons other than individuals. An organization — not an individual person — can't get a federal grant unless it agrees to keep a drug-free workplace^*. That means it must: post a notice telling employees that unlawfully manufacturing, distributing, dispensing, possessing, or using a controlled substance^* at work is banned, and explain what happens if someone breaks that rule; run a program teaching employees about the dangers of drug abuse, the organization's no-drugs policy, available counseling and rehab help, and the penalties for violations; give every employee^* working on the grant a copy of that notice; tell each employee that, as a condition of working on the grant, they must follow the notice and must tell the employer within 5 days if convicted of a drug crime that happened in the workplace; tell the granting agency within 10 days of learning of such a conviction^*; punish a convicted employee, or require them to satisfactorily complete a drug abuse treatment program, as required by section 8104; and keep making a good-faith effort to follow all of this.
(2) Individuals. A federal agency^* can't give a grant to an individual person unless that person agrees not to unlawfully manufacture, distribute, dispense, possess, or use a controlled substance while carrying out the grant activity.

(b) Suspension, Termination, or Debarment of Grantee^*.
(1) Grounds. An agency head, or that person's designee, can suspend grant payments, end the grant, and suspend or bar (debar) the grantee if they decide in writing that the grantee violated one of the rules in (a)(1), or that so many of the grantee's employees have been convicted of workplace drug crimes that it shows the grantee failed to make a good-faith effort at a drug-free workplace.
(2) Conduct of proceedings. These suspension, termination, and debarment actions must follow applicable law, including Executive Order 12549 (or any order that replaces it) and related regulations.
(3) Effect of debarment. A grantee barred by a final decision under this section can't get, or take part in, any federal grant for whatever period the decision sets — but never more than 5 years.