http://mlb.mlb.com/mlb/news/drug_policy.jsp?content=timeline
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June 18, 2002: At a Senate Commerce Committee hearing in Washington, D.C., Senators Byron Dorgan (D-ND) and John McCain (R-Ariz) tell Commissioner Bud Selig and MLB Players Association executive director Don Fehr that a strict drug testing program at the Major League level must be negotiated during collective bargaining for a new Basic Agreement, which is about to expire. Up to this point, no MLB player can be tested for drug use without probable cause. Fehr tells the committee that the Congress should enact laws to ban over-the-counter sales of performance-enhancing substances.
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August 30, 2002: MLB and the union unveil Major League Baseball's Joint Drug Prevention and Treatment Program as an addendum to the new Basic Agreement, which is bargained at the 11th hour just as the players are about to go out on strike. The new policy calls for "Survey Testing" in 2003 to gauge the use of steroids among players on the 40-man rosters of each club. The tests will be anonymous and no one will be punished.
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March 1, 2003: Drug testing begins in Major League Spring Training camps. Some teams, including the Chicago White Sox, consider balking at taking the tests to skew the results. A refusal to participate in the "Survey" phase is considered a positive test. That first year, all MLB players on the 40-man rosters are subject to be randomly tested once. In addition, MLB had the right to retest up to 240 players a second time by the end of the season. All players ultimately complied and took the tests.
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Nov. 13, 2003: MLB announced that 5-to-7 percent of 1,438 tests were positive during the 2003 season, well above the threshold, setting in motion mandatory testing for performance-enhancing drugs with punishments for the first time in Major League history. The first positive test put a player on a medical track that includes treatment and further testing. Otherwise, there's no punitive for a first positive test.