80_FR_26909 80 FR 26819 - Viruses, Serums, Toxins, and Analogous Products; Exemptions From Preparation Pursuant to an Unsuspended and Unrevoked License

80 FR 26819 - Viruses, Serums, Toxins, and Analogous Products; Exemptions From Preparation Pursuant to an Unsuspended and Unrevoked License

DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection Service

Federal Register Volume 80, Issue 90 (May 11, 2015)

Page Range26819-26822
FR Document2015-11311

We are amending the Virus-Serum-Toxin Act regulations to require that veterinary biologics prepared under the veterinary practitioner exemption must be prepared at the same facility the veterinarian utilizes in conducting the day-to-day activities associated with his or her practice. This exemption applies to veterinary biologics prepared by a veterinary practitioner solely for administration to animals in the course of a State-licensed professional practice of veterinary medicine under a veterinarian- client-patient relationship. This rule is necessary to ensure that veterinary biologics are not prepared in unlicensed establishments in violation of the Virus-Serum-Toxin Act and to clarify the regulations regarding the preparation of product by a veterinary practitioner under a veterinarian-client-patient relationship.

Federal Register, Volume 80 Issue 90 (Monday, May 11, 2015)
[Federal Register Volume 80, Number 90 (Monday, May 11, 2015)]
[Rules and Regulations]
[Pages 26819-26822]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-11311]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
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========================================================================


Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and 
Regulations

[[Page 26819]]



DEPARTMENT OF AGRICULTURE

Animal and Plant Health Inspection Service

9 CFR Part 107

[Docket No. APHIS-2011-0048]
RIN 0579-AD66


Viruses, Serums, Toxins, and Analogous Products; Exemptions From 
Preparation Pursuant to an Unsuspended and Unrevoked License

AGENCY: Animal and Plant Health Inspection Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: We are amending the Virus-Serum-Toxin Act regulations to 
require that veterinary biologics prepared under the veterinary 
practitioner exemption must be prepared at the same facility the 
veterinarian utilizes in conducting the day-to-day activities 
associated with his or her practice. This exemption applies to 
veterinary biologics prepared by a veterinary practitioner solely for 
administration to animals in the course of a State-licensed 
professional practice of veterinary medicine under a veterinarian-
client-patient relationship. This rule is necessary to ensure that 
veterinary biologics are not prepared in unlicensed establishments in 
violation of the Virus-Serum-Toxin Act and to clarify the regulations 
regarding the preparation of product by a veterinary practitioner under 
a veterinarian-client-patient relationship.

DATES: Effective July 10, 2015.

FOR FURTHER INFORMATION CONTACT: Dr. Donna Malloy, Operational Support 
Section, Center for Veterinary Biologics, Policy, Evaluation, and 
Licensing, VS, APHIS, 4700 River Road Unit 148, Riverdale, MD 20737-
1231; phone (301) 851-3426, fax (301) 734-4314.

SUPPLEMENTARY INFORMATION: 

Background

    The regulations in Title 9, Code of Federal Regulations (9 CFR), 
parts 101-118 (referred to below as the regulations) contain provisions 
implementing the Virus-Serum-Toxin Act (the Act), as amended (21 U.S.C. 
151-159). These regulations are administered by the Animal and Plant 
Health Inspection Service (APHIS) of the U.S. Department of Agriculture 
(USDA). The Act prohibits the preparation, sale, and shipment of 
veterinary biological products in or from the United States unless such 
products have been prepared under and in compliance with USDA 
regulations at an establishment holding an unsuspended and unrevoked 
license issued by USDA.
    In part 102 of the regulations, Sec. Sec.  102.1 and 102.2 require 
that each establishment and every person preparing biological products 
subject to the Act must hold an unexpired, unsuspended, and unrevoked 
U.S. Veterinary Biologics Establishment License issued by the 
Administrator and a U.S. Veterinary Biological Product License for each 
product prepared in such establishment. Part 107 of the regulations 
contains exemptions from the requirement for preparation pursuant to 
unsuspended and unrevoked establishment and product licenses. One of 
those exemptions, found in Sec.  107.1(a)(1), allows for product to be 
prepared by a veterinary practitioner solely for administration to 
animals in the course of his or her State-licensed professional 
practice of veterinary medicine under a veterinarian-client-patient 
relationship. The regulations in Sec.  107.1(a)(1) also set forth the 
criteria that must be satisfied in order to establish the existence of 
a veterinarian-client-patient relationship.
    On July 18, 2012, we published in the Federal Register (77 FR 
42195-42197, Docket No. APHIS-2011-0048) a proposal \1\ to amend the 
regulations to require that veterinary biologics prepared under the 
veterinary practitioner exemption be prepared at the same facility the 
veterinarian utilizes in conducting the day-to-day activities 
associated with his or her practice. The proposal was intended to 
ensure that veterinary biologics are not prepared in unlicensed 
establishments in violation of the Virus-Serum-Toxin Act and to clarify 
the regulations regarding the preparation of product by a veterinary 
practitioner under a veterinarian-client-patient relationship.
---------------------------------------------------------------------------

    \1\ To view the proposed rule and the comments we received, go 
to http://www.regulations.gov/#!docketDetail;D=APHIS-2011-0048.
---------------------------------------------------------------------------

    We solicited comments concerning our proposal for 60 days ending 
September 17, 2012. We reopened and extended the deadline for comments 
until November 16, 2012, in a document published in the Federal 
Register on September 20, 2012 (77 FR 58323, Docket No. APHIS-2011-
0048). We received 55 comments by that date. They were from 
veterinarians and veterinary associations, several State universities, 
pork producers' associations, trade organizations, veterinary biologics 
companies, private laboratories, aquaculture companies, officials from 
the State of Iowa, and individuals. These comments are discussed below 
by topic.
    Some commenters not only supported the proposal but recommended 
that we speed the implementation process along.
    We are finalizing this rule as expeditiously as possible. Given the 
number of comments we received on the proposed rule and the substantive 
nature of most of them, however, we determined that we needed to 
carefully review and evaluate those comments before implementing any 
regulatory changes.
    Several organizations and a number of veterinary practitioners 
raised concerns about what they termed the ``forced relocation'' of 
preparation sites for veterinary biologics to the same facility in 
which the veterinarian conducts day-to-day activities connected with 
his or her practice. Commenters stated that a veterinary practice is an 
environment poorly suited to the aseptic conditions required for 
biologics production and that personnel working in these facilities are 
trained in animal care rather than in specialized laboratory work. 
Several commenters recommended that APHIS revise the rule to require 
that, regardless of the location of the production facility, 
veterinarians that use the facility must document regular involvement 
in the management of the facility, provide such documentation on 
request, and allow regular on-site inspections, presumably by APHIS.

[[Page 26820]]

    APHIS disagrees with the commenters' recommendation. As noted in 
the preamble to the July 2012 proposed rule, the intent of the 
veterinary practitioner exemption in Sec.  107.1(a)(1) is to allow a 
practitioner to prepare exempt biological products at a location not 
licensed under the Act, where the practitioner operates a veterinary 
practice, and to transport such products away from that facility when 
necessary for administration to an animal or animals under a 
veterinarian-client-patient relationship without violating the Act. The 
intention behind the proposed rule was to clarify the relationship 
between the veterinary practitioner and the facility where exempt 
veterinary biological product is prepared. No provision in the Act or 
the regulations allows an unlicensed commercial laboratory, acting as 
the agent for the practitioner, to prepare, produce, sell, and ship the 
veterinary biological product under the exemption in Sec.  107.1(a)(1). 
Such an arrangement would violate the Act. Nothing in this rule or in 
the Act, however, prevents veterinarians from working with 
establishments with a license to produce autogenous products, i.e., 
limited use biologics.
    Commenters expressed concern about how this rule would affect 
practitioners who have offices in multiple locations in which there are 
multiple practitioners. It was stated that changes within the swine 
industry have led many veterinarians to practice in this manner. 
According to the commenters, this rule would potentially require that a 
``brick and mortar'' location for vaccine production would have to be 
the same as the physical location of the veterinarian. In the 
commenters' view, such a requirement could prove problematic for a 
multi-location veterinary practice in which there may only be one 
location suitable for the preparation of exempt veterinary biological 
product. Commenters questioned how we would address the issue of 
multiple locations managed by the same veterinarian or practice even 
though the prescribing veterinarian may not routinely work out of the 
office where the exempt biological product is prepared.
    APHIS acknowledges that it has become a common occurrence in the 
swine industry for swine practitioners to work in multi-veterinarian, 
multi-location corporate practices. Nothing in this rule, however, 
prohibits a veterinarian from producing an exempt biological product in 
any of the locations routinely used in his or her day-to-day practice, 
provided that the other conditions in Sec.  107.1 are met.
    Noting that Sec.  107.1(a)(2) of the proposed rule stated that a 
biological product may be prepared by a veterinary assistant under the 
veterinarian's ``direct supervision,'' some commenters, while generally 
supportive of the rule, requested that we clarify how we define that 
term.
    APHIS interprets ``direct supervision'' to mean that the licensed 
veterinarian is readily available on the premises where the product is 
being prepared and has the responsibility for its preparation by the 
assistant working under his or her direction.
    Some commenters suggested that the emphasis of the rule should be 
redirected away from location of the exempt facilities and toward the 
quality and management of the facilities where the products are 
prepared. It was stated that the rule focuses too much on location and 
not enough on animal health.
    As noted above, the purpose of this rule is to clarify who may 
prepare exempted biological products and where those exempted products 
may be prepared under the regulations. Requirements pertaining to the 
quality and management of veterinary biologics establishments are 
already addressed in 9 CFR part 108.
    Some commenters maintained that unlicensed laboratories should be 
allowed to prepare and ship exempt veterinary biological products on 
behalf of veterinary practitioners, that the rule may hinder innovative 
practices, and that the relationship between the veterinarian and the 
facility should be legal rather than location-based. The commenters 
expressed concern that the rule will restrict veterinarians' access to 
certain customized vaccines that are prepared in specialized settings 
and thus prevent practitioners from responding rapidly to mutating 
viruses. Several commenters cited the case of an Iowa manufacturer, 
which they viewed as an innovative company with expertise in new 
technologies that enabled it to prepare vaccines quickly and 
effectively. The commenters stated that that company's activities may 
be restricted under this rule.
    The purpose of this rule is to clarify the relationship between the 
veterinary practitioner and the facility where exempt veterinary 
biological products are prepared. We do not intend to hinder innovation 
and the development of valuable new technologies, nor do we anticipate 
that this rule will have such an effect. Any manufacturing 
establishment wishing to provide its technology and expertise to 
veterinarians has several licensing options that will allow it to 
market its product. To cite one example, in 2012, APHIS published 
guidelines for obtaining a conditional veterinary biologics license 
using production platform technology. These guidelines, which describe 
the policies and procedures regarding the licensure of product 
platforms based on recombinant technology, can be viewed at http://www.aphis.usda.gov/animal_health/vet_biologics/publications/memo_800_213.pdf.
    Some commenters expressed concerns about how this rule may affect 
minor species, in particular, the aquaculture industry. It was stated 
that the language contained in the proposed rule was too restrictive, 
as it was based on an erroneous assumption of a homogenous type of 
veterinary practice involving mainly major species where there is only 
in-patient or on-the-farm care. Veterinary practitioners in the 
aquaculture industry routinely prepare autogenous vaccines, which may 
be isolated from a particular school of fish. A commenter stated that 
for minor species and minor indications, it is not cost-effective to 
have separate facilities for the preparation of existing exempt 
vaccines and autogenous vaccines. The commenter recommended that, for 
minor species applications, we add a provision to the final rule 
allowing the production of exempt biological products in a veterinary 
establishment that has either full or autogenous licensure to produce 
biologics, provided that the practitioner can demonstrate temporal and 
sanitary separation between exempt and non-exempt products.
    We do not agree that adding such a provision to the regulations is 
necessary. This rule does not affect the preparation of exempt 
veterinary biological product for minor species, such as farmed fish; 
it merely clarifies where such products can be prepared. Veterinarians 
who service minor species will continue to have the options currently 
available to them of preparing an exempt product or working with a 
licensed establishment to produce an autogenous vaccine.
    The July 2012 proposed rule included some additional changes to 
Sec.  107.1. Specifically, we proposed to replace the term 
``establishments'' with ``facilities'' in the introductory text and in 
paragraph (a)(1). One commenter favored retaining the original 
terminology. The commenter stated that ``facilities'' is too narrow a 
term and that, conversely, ``establishments'' correctly reflects many 
of the types of operations that licensed veterinarians are associated 
with (ambulatory, zoos,

[[Page 26821]]

aquarium, fish culture facilities, feedlots, etc.).
    We do not agree with this comment. The reason for the proposed 
change in terminology was to distinguish between manufacturers that 
produce licensed biological products in licensed establishments and 
those that produce exempt veterinary biological products under the 
conditions described in Sec.  107.1. The introductory text of Sec.  
107.1 contains a reference to establishment licenses. Elsewhere in the 
regulations, including Sec.  107.2, only production sites that are not 
exempt from licensing requirements are referred to as establishments. 
Drawing a clear distinction between establishments, where vaccines are 
prepared in accordance with our licensing requirements, and facilities, 
where exempt products are produced, helps to clarify the regulations 
and eliminate possible confusion.
    Therefore, for the reasons given in the proposed rule and in this 
document, we are adopting the proposed rule as a final rule, without 
change.

Executive Order 12866 and Regulatory Flexibility Act

    This final rule has been determined to be not significant for the 
purposes of Executive Order 12866 and, therefore, has not been reviewed 
by the Office of Management and Budget.
    In accordance with the Regulatory Flexibility Act, we have analyzed 
the potential economic effects of this action on small entities. The 
analysis is summarized below. Copies of the full analysis are available 
on the Regulations.gov Web site (see footnote 1 in this document for a 
link to Regulations.gov) or by contacting the person listed under FOR 
FURTHER INFORMATION CONTACT.
    This final rule amends the regulations in Sec.  107.1 to clarify 
that the preparation of biological products pursuant to the exemption 
in paragraph (a)(1) of that section must take place at the same 
facility that the veterinarian preparing the product utilizes in 
conducting the day-to-day activities associated with his/her State-
licensed professional practice of veterinary medicine.
    The exemption applies to veterinary biologics prepared by a 
veterinary practitioner solely for administration to animals in the 
course of a State-licensed professional practice of veterinary medicine 
under a veterinarian-client-patient relationship. No provision in the 
Act or the regulations allows a veterinary practitioner to take 
advantage of the licensing exemption while at the same time consigning 
the actual preparation of the product to a commercial laboratory or 
other manufacturing establishment which would then exchange or deliver 
the product to a third party.
    The Regulatory Flexibility Act requires agencies to consider 
whether a rule will have a significant economic impact on a substantial 
number of small entities.
    Some commenters on the July 2012 proposed rule expressed concerns 
that the rule would adversely affect how veterinary practitioners 
conduct day-to-day activities connected with their practices, prevent 
veterinarians from working with commercial labs or manufacturing 
facilities in preparing vaccines, and hinder the development of 
innovative practices.
    For the most part, there should be little or no effect on 
veterinary practitioners. Veterinary practitioners who are in 
compliance with the regulations do not need to alter the way they 
conduct their veterinarian-client-patient relationships. This final 
rule will not change the nature of the exemption, the number of 
veterinary practitioners eligible to take advantage of the exemption, 
or the criteria that must be satisfied in order to establish the 
existence of a veterinarian-client-patient relationship. Also, this 
final rule will not add any additional reporting or recordkeeping 
burden.
    Under these circumstances, the Administrator of the Animal and 
Plant Health Inspection Service has determined that this action will 
not have a significant economic impact on a substantial number of small 
entities.

Executive Order 12372

    This program/activity is listed in the Catalog of Federal Domestic 
Assistance under No. 10.025 and is subject to Executive Order 12372, 
which requires intergovernmental consultation with State and local 
officials. (See 7 CFR part 3015, subpart V.)

Executive Order 12988

    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. It is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies where they are necessary to address local disease conditions 
or eradication programs. However, where safety, efficacy, purity, and 
potency of biological products are concerned, it is the Agency's intent 
to occupy the field. This includes, but is not limited to, the 
regulation of labeling. Under the Act, Congress clearly intended that 
there be national uniformity in the regulation of these products. There 
are no administrative proceedings which must be exhausted prior to a 
judicial challenge to the regulations under this rule.

Paperwork Reduction Act

    This final rule contains no new information collection or 
recordkeeping requirements under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.).

List of Subjects in 9 CFR Part 107

    Animal biologics, Reporting and recordkeeping requirements.

    Accordingly, we are amending 9 CFR part 107 as follows:

PART 107--EXEMPTIONS FROM PREPARATION PURSUANT TO AN UNSUSPENDED 
AND UNREVOKED LICENSE

0
1. The authority citation for part 107 continues to read as follows:

    Authority: 21 U.S.C. 151-159; 7 CFR 2.22, 2.80, and 371.4.


0
2. Section 107.1 is amended as follows:
0
a. In the introductory text of the section and in paragraph (a)(1), 
introductory text, by removing the word ``establishments'' both times 
it appears and adding the word ``facilities'' in its place; and
0
b. By redesignating paragraph (a)(2) as paragraph (a)(3) and adding a 
new paragraph (a)(2).
    The addition reads as follows:


Sec.  107.1  Veterinary practitioners and animal owners.

* * * * *
    (a) * * *
    (2) All steps in the preparation of product being prepared under 
the exemption in paragraph (a)(1) of this section must be performed at 
the facilities that the veterinarian utilizes for the day-to-day 
activities associated with the treatment of animals in the course of 
his/her State-licensed professional practice of veterinary medicine. A 
veterinary assistant employed by the veterinary practitioner and 
working at the veterinary practice's facility under the veterinarian's 
direct supervision may perform the steps in the preparation of product. 
Such preparation may not be consigned to any other party or sub-
contracted to a commercial laboratory/manufacturing facility.
* * * * *


[[Page 26822]]


    Done in Washington, DC, this 6th day of May 2015.
Kevin Shea,
Administrator, Animal and Plant Health Inspection Service.
[FR Doc. 2015-11311 Filed 5-8-15; 8:45 am]
 BILLING CODE 3410-34-P



                                                                                                                                                                                          26819

                                           Rules and Regulations                                                                                         Federal Register
                                                                                                                                                         Vol. 80, No. 90

                                                                                                                                                         Monday, May 11, 2015



                                           This section of the FEDERAL REGISTER                    Background                                            ensure that veterinary biologics are not
                                           contains regulatory documents having general                                                                  prepared in unlicensed establishments
                                           applicability and legal effect, most of which              The regulations in Title 9, Code of
                                                                                                   Federal Regulations (9 CFR), parts 101–               in violation of the Virus-Serum-Toxin
                                           are keyed to and codified in the Code of                                                                      Act and to clarify the regulations
                                           Federal Regulations, which is published under           118 (referred to below as the
                                                                                                   regulations) contain provisions                       regarding the preparation of product by
                                           50 titles pursuant to 44 U.S.C. 1510.
                                                                                                   implementing the Virus-Serum-Toxin                    a veterinary practitioner under a
                                           The Code of Federal Regulations is sold by              Act (the Act), as amended (21 U.S.C.                  veterinarian-client-patient relationship.
                                           the Superintendent of Documents. Prices of              151–159). These regulations are                          We solicited comments concerning
                                           new books are listed in the first FEDERAL               administered by the Animal and Plant                  our proposal for 60 days ending
                                           REGISTER issue of each week.                                                                                  September 17, 2012. We reopened and
                                                                                                   Health Inspection Service (APHIS) of
                                                                                                   the U.S. Department of Agriculture                    extended the deadline for comments
                                                                                                   (USDA). The Act prohibits the                         until November 16, 2012, in a document
                                           DEPARTMENT OF AGRICULTURE                                                                                     published in the Federal Register on
                                                                                                   preparation, sale, and shipment of
                                                                                                   veterinary biological products in or from             September 20, 2012 (77 FR 58323,
                                           Animal and Plant Health Inspection                                                                            Docket No. APHIS–2011–0048). We
                                           Service                                                 the United States unless such products
                                                                                                   have been prepared under and in                       received 55 comments by that date.
                                                                                                   compliance with USDA regulations at                   They were from veterinarians and
                                           9 CFR Part 107                                                                                                veterinary associations, several State
                                                                                                   an establishment holding an
                                           [Docket No. APHIS–2011–0048]                            unsuspended and unrevoked license                     universities, pork producers’
                                                                                                   issued by USDA.                                       associations, trade organizations,
                                           RIN 0579–AD66                                              In part 102 of the regulations, §§ 102.1           veterinary biologics companies, private
                                                                                                   and 102.2 require that each                           laboratories, aquaculture companies,
                                           Viruses, Serums, Toxins, and                                                                                  officials from the State of Iowa, and
                                                                                                   establishment and every person
                                           Analogous Products; Exemptions                                                                                individuals. These comments are
                                                                                                   preparing biological products subject to
                                           From Preparation Pursuant to an                                                                               discussed below by topic.
                                                                                                   the Act must hold an unexpired,
                                           Unsuspended and Unrevoked License                                                                                Some commenters not only supported
                                                                                                   unsuspended, and unrevoked U.S.
                                                                                                   Veterinary Biologics Establishment                    the proposal but recommended that we
                                           AGENCY:  Animal and Plant Health
                                                                                                   License issued by the Administrator and               speed the implementation process
                                           Inspection Service, USDA.
                                                                                                   a U.S. Veterinary Biological Product                  along.
                                           ACTION: Final rule.                                                                                              We are finalizing this rule as
                                                                                                   License for each product prepared in
                                           SUMMARY:    We are amending the Virus-                  such establishment. Part 107 of the                   expeditiously as possible. Given the
                                           Serum-Toxin Act regulations to require                  regulations contains exemptions from                  number of comments we received on the
                                           that veterinary biologics prepared under                the requirement for preparation                       proposed rule and the substantive
                                           the veterinary practitioner exemption                   pursuant to unsuspended and                           nature of most of them, however, we
                                           must be prepared at the same facility the               unrevoked establishment and product                   determined that we needed to carefully
                                           veterinarian utilizes in conducting the                 licenses. One of those exemptions,                    review and evaluate those comments
                                           day-to-day activities associated with his               found in § 107.1(a)(1), allows for                    before implementing any regulatory
                                           or her practice. This exemption applies                 product to be prepared by a veterinary                changes.
                                           to veterinary biologics prepared by a                   practitioner solely for administration to                Several organizations and a number of
                                           veterinary practitioner solely for                      animals in the course of his or her State-            veterinary practitioners raised concerns
                                           administration to animals in the course                 licensed professional practice of                     about what they termed the ‘‘forced
                                           of a State-licensed professional practice               veterinary medicine under a                           relocation’’ of preparation sites for
                                           of veterinary medicine under a                          veterinarian-client-patient relationship.             veterinary biologics to the same facility
                                           veterinarian-client-patient relationship.               The regulations in § 107.1(a)(1) also set             in which the veterinarian conducts day-
                                           This rule is necessary to ensure that                   forth the criteria that must be satisfied             to-day activities connected with his or
                                           veterinary biologics are not prepared in                in order to establish the existence of a              her practice. Commenters stated that a
                                           unlicensed establishments in violation                  veterinarian-client-patient relationship.             veterinary practice is an environment
                                           of the Virus-Serum-Toxin Act and to                        On July 18, 2012, we published in the              poorly suited to the aseptic conditions
                                           clarify the regulations regarding the                   Federal Register (77 FR 42195–42197,                  required for biologics production and
                                           preparation of product by a veterinary                  Docket No. APHIS–2011–0048) a                         that personnel working in these
                                           practitioner under a veterinarian-client-               proposal 1 to amend the regulations to                facilities are trained in animal care
                                           patient relationship.                                   require that veterinary biologics                     rather than in specialized laboratory
                                                                                                   prepared under the veterinary                         work. Several commenters
                                           DATES: Effective July 10, 2015.
                                                                                                   practitioner exemption be prepared at                 recommended that APHIS revise the
                                           FOR FURTHER INFORMATION CONTACT: Dr.                                                                          rule to require that, regardless of the
                                           Donna Malloy, Operational Support                       the same facility the veterinarian
                                                                                                                                                         location of the production facility,
Lhorne on DSK2VPTVN1PROD with RULES




                                           Section, Center for Veterinary Biologics,               utilizes in conducting the day-to-day
                                                                                                   activities associated with his or her                 veterinarians that use the facility must
                                           Policy, Evaluation, and Licensing, VS,                                                                        document regular involvement in the
                                           APHIS, 4700 River Road Unit 148,                        practice. The proposal was intended to
                                                                                                                                                         management of the facility, provide
                                           Riverdale, MD 20737–1231; phone (301)                     1 To view the proposed rule and the comments        such documentation on request, and
                                           851–3426, fax (301) 734–4314.                           we received, go to http://www.regulations.gov/        allow regular on-site inspections,
                                           SUPPLEMENTARY INFORMATION:                              #!docketDetail;D=APHIS-2011-0048.                     presumably by APHIS.


                                      VerDate Sep<11>2014   15:20 May 08, 2015   Jkt 235001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                           26820               Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and Regulations

                                              APHIS disagrees with the                                Noting that § 107.1(a)(2) of the                   product. To cite one example, in 2012,
                                           commenters’ recommendation. As noted                    proposed rule stated that a biological                APHIS published guidelines for
                                           in the preamble to the July 2012                        product may be prepared by a veterinary               obtaining a conditional veterinary
                                           proposed rule, the intent of the                        assistant under the veterinarian’s                    biologics license using production
                                           veterinary practitioner exemption in                    ‘‘direct supervision,’’ some commenters,              platform technology. These guidelines,
                                           § 107.1(a)(1) is to allow a practitioner to             while generally supportive of the rule,               which describe the policies and
                                           prepare exempt biological products at a                 requested that we clarify how we define               procedures regarding the licensure of
                                           location not licensed under the Act,                    that term.                                            product platforms based on recombinant
                                           where the practitioner operates a                          APHIS interprets ‘‘direct supervision’’            technology, can be viewed at http://
                                           veterinary practice, and to transport                   to mean that the licensed veterinarian is             www.aphis.usda.gov/animal_health/
                                           such products away from that facility                   readily available on the premises where               vet_biologics/publications/memo_800_
                                           when necessary for administration to an                 the product is being prepared and has                 213.pdf.
                                           animal or animals under a veterinarian-                 the responsibility for its preparation by                Some commenters expressed concerns
                                           client-patient relationship without                     the assistant working under his or her                about how this rule may affect minor
                                           violating the Act. The intention behind                 direction.                                            species, in particular, the aquaculture
                                           the proposed rule was to clarify the                       Some commenters suggested that the                 industry. It was stated that the language
                                           relationship between the veterinary                     emphasis of the rule should be                        contained in the proposed rule was too
                                           practitioner and the facility where                     redirected away from location of the                  restrictive, as it was based on an
                                           exempt veterinary biological product is                 exempt facilities and toward the quality              erroneous assumption of a homogenous
                                           prepared. No provision in the Act or the                and management of the facilities where                type of veterinary practice involving
                                           regulations allows an unlicensed                        the products are prepared. It was stated              mainly major species where there is
                                           commercial laboratory, acting as the                    that the rule focuses too much on                     only in-patient or on-the-farm care.
                                           agent for the practitioner, to prepare,                 location and not enough on animal                     Veterinary practitioners in the
                                           produce, sell, and ship the veterinary                  health.                                               aquaculture industry routinely prepare
                                           biological product under the exemption                     As noted above, the purpose of this
                                                                                                                                                         autogenous vaccines, which may be
                                           in § 107.1(a)(1). Such an arrangement                   rule is to clarify who may prepare
                                                                                                                                                         isolated from a particular school of fish.
                                           would violate the Act. Nothing in this                  exempted biological products and
                                                                                                                                                         A commenter stated that for minor
                                           rule or in the Act, however, prevents                   where those exempted products may be
                                                                                                   prepared under the regulations.                       species and minor indications, it is not
                                           veterinarians from working with                                                                               cost-effective to have separate facilities
                                           establishments with a license to                        Requirements pertaining to the quality
                                                                                                   and management of veterinary biologics                for the preparation of existing exempt
                                           produce autogenous products, i.e.,                                                                            vaccines and autogenous vaccines. The
                                           limited use biologics.                                  establishments are already addressed in
                                                                                                   9 CFR part 108.                                       commenter recommended that, for
                                              Commenters expressed concern about
                                                                                                      Some commenters maintained that                    minor species applications, we add a
                                           how this rule would affect practitioners
                                                                                                   unlicensed laboratories should be                     provision to the final rule allowing the
                                           who have offices in multiple locations
                                                                                                   allowed to prepare and ship exempt                    production of exempt biological
                                           in which there are multiple
                                                                                                   veterinary biological products on behalf              products in a veterinary establishment
                                           practitioners. It was stated that changes
                                                                                                   of veterinary practitioners, that the rule            that has either full or autogenous
                                           within the swine industry have led
                                                                                                   may hinder innovative practices, and                  licensure to produce biologics, provided
                                           many veterinarians to practice in this
                                                                                                   that the relationship between the                     that the practitioner can demonstrate
                                           manner. According to the commenters,
                                                                                                   veterinarian and the facility should be               temporal and sanitary separation
                                           this rule would potentially require that
                                                                                                   legal rather than location-based. The                 between exempt and non-exempt
                                           a ‘‘brick and mortar’’ location for
                                           vaccine production would have to be                     commenters expressed concern that the                 products.
                                           the same as the physical location of the                rule will restrict veterinarians’ access to              We do not agree that adding such a
                                           veterinarian. In the commenters’ view,                  certain customized vaccines that are                  provision to the regulations is
                                           such a requirement could prove                          prepared in specialized settings and                  necessary. This rule does not affect the
                                           problematic for a multi-location                        thus prevent practitioners from                       preparation of exempt veterinary
                                           veterinary practice in which there may                  responding rapidly to mutating viruses.               biological product for minor species,
                                           only be one location suitable for the                   Several commenters cited the case of an               such as farmed fish; it merely clarifies
                                           preparation of exempt veterinary                        Iowa manufacturer, which they viewed                  where such products can be prepared.
                                           biological product. Commenters                          as an innovative company with                         Veterinarians who service minor species
                                           questioned how we would address the                     expertise in new technologies that                    will continue to have the options
                                           issue of multiple locations managed by                  enabled it to prepare vaccines quickly                currently available to them of preparing
                                           the same veterinarian or practice even                  and effectively. The commenters stated                an exempt product or working with a
                                           though the prescribing veterinarian may                 that that company’s activities may be                 licensed establishment to produce an
                                           not routinely work out of the office                    restricted under this rule.                           autogenous vaccine.
                                           where the exempt biological product is                     The purpose of this rule is to clarify                The July 2012 proposed rule included
                                           prepared.                                               the relationship between the veterinary               some additional changes to § 107.1.
                                              APHIS acknowledges that it has                       practitioner and the facility where                   Specifically, we proposed to replace the
                                           become a common occurrence in the                       exempt veterinary biological products                 term ‘‘establishments’’ with ‘‘facilities’’
                                           swine industry for swine practitioners                  are prepared. We do not intend to                     in the introductory text and in
                                           to work in multi-veterinarian, multi-                   hinder innovation and the development                 paragraph (a)(1). One commenter
                                           location corporate practices. Nothing in                of valuable new technologies, nor do we               favored retaining the original
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                                           this rule, however, prohibits a                         anticipate that this rule will have such              terminology. The commenter stated that
                                           veterinarian from producing an exempt                   an effect. Any manufacturing                          ‘‘facilities’’ is too narrow a term and
                                           biological product in any of the                        establishment wishing to provide its                  that, conversely, ‘‘establishments’’
                                           locations routinely used in his or her                  technology and expertise to                           correctly reflects many of the types of
                                           day-to-day practice, provided that the                  veterinarians has several licensing                   operations that licensed veterinarians
                                           other conditions in § 107.1 are met.                    options that will allow it to market its              are associated with (ambulatory, zoos,


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                                                               Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and Regulations                                             26821

                                           aquarium, fish culture facilities,                      commercial laboratory or other                        proceedings which must be exhausted
                                           feedlots, etc.).                                        manufacturing establishment which                     prior to a judicial challenge to the
                                              We do not agree with this comment.                   would then exchange or deliver the                    regulations under this rule.
                                           The reason for the proposed change in                   product to a third party.
                                           terminology was to distinguish between                     The Regulatory Flexibility Act                     Paperwork Reduction Act
                                           manufacturers that produce licensed                     requires agencies to consider whether a
                                                                                                                                                            This final rule contains no new
                                           biological products in licensed                         rule will have a significant economic
                                                                                                                                                         information collection or recordkeeping
                                           establishments and those that produce                   impact on a substantial number of small
                                           exempt veterinary biological products                   entities.                                             requirements under the Paperwork
                                           under the conditions described in                          Some commenters on the July 2012                   Reduction Act of 1995 (44 U.S.C. 3501
                                           § 107.1. The introductory text of § 107.1               proposed rule expressed concerns that                 et seq.).
                                           contains a reference to establishment                   the rule would adversely affect how                   List of Subjects in 9 CFR Part 107
                                           licenses. Elsewhere in the regulations,                 veterinary practitioners conduct day-to-
                                           including § 107.2, only production sites                day activities connected with their                     Animal biologics, Reporting and
                                           that are not exempt from licensing                      practices, prevent veterinarians from                 recordkeeping requirements.
                                           requirements are referred to as                         working with commercial labs or
                                                                                                   manufacturing facilities in preparing                   Accordingly, we are amending 9 CFR
                                           establishments. Drawing a clear
                                           distinction between establishments,                     vaccines, and hinder the development                  part 107 as follows:
                                           where vaccines are prepared in                          of innovative practices.
                                                                                                      For the most part, there should be                 PART 107—EXEMPTIONS FROM
                                           accordance with our licensing
                                                                                                   little or no effect on veterinary                     PREPARATION PURSUANT TO AN
                                           requirements, and facilities, where
                                           exempt products are produced, helps to                  practitioners. Veterinary practitioners               UNSUSPENDED AND UNREVOKED
                                           clarify the regulations and eliminate                   who are in compliance with the                        LICENSE
                                           possible confusion.                                     regulations do not need to alter the way
                                              Therefore, for the reasons given in the              they conduct their veterinarian-client-               ■ 1. The authority citation for part 107
                                           proposed rule and in this document, we                  patient relationships. This final rule                continues to read as follows:
                                           are adopting the proposed rule as a final               will not change the nature of the                       Authority: 21 U.S.C. 151–159; 7 CFR 2.22,
                                           rule, without change.                                   exemption, the number of veterinary                   2.80, and 371.4.
                                           Executive Order 12866 and Regulatory                    practitioners eligible to take advantage
                                           Flexibility Act                                         of the exemption, or the criteria that                ■  2. Section 107.1 is amended as
                                                                                                   must be satisfied in order to establish               follows:
                                             This final rule has been determined to                the existence of a veterinarian-client-
                                           be not significant for the purposes of                                                                        ■ a. In the introductory text of the
                                                                                                   patient relationship. Also, this final rule
                                           Executive Order 12866 and, therefore,                                                                         section and in paragraph (a)(1),
                                                                                                   will not add any additional reporting or
                                           has not been reviewed by the Office of                                                                        introductory text, by removing the word
                                                                                                   recordkeeping burden.
                                           Management and Budget.                                     Under these circumstances, the                     ‘‘establishments’’ both times it appears
                                             In accordance with the Regulatory                     Administrator of the Animal and Plant                 and adding the word ‘‘facilities’’ in its
                                           Flexibility Act, we have analyzed the                   Health Inspection Service has                         place; and
                                           potential economic effects of this action               determined that this action will not                  ■ b. By redesignating paragraph (a)(2) as
                                           on small entities. The analysis is                      have a significant economic impact on                 paragraph (a)(3) and adding a new
                                           summarized below. Copies of the full                    a substantial number of small entities.               paragraph (a)(2).
                                           analysis are available on the
                                           Regulations.gov Web site (see footnote 1                Executive Order 12372                                    The addition reads as follows:
                                           in this document for a link to                            This program/activity is listed in the              § 107.1 Veterinary practitioners and animal
                                           Regulations.gov) or by contacting the                   Catalog of Federal Domestic Assistance                owners.
                                           person listed under FOR FURTHER                         under No. 10.025 and is subject to
                                                                                                                                                         *      *     *     *     *
                                           INFORMATION CONTACT.                                    Executive Order 12372, which requires
                                             This final rule amends the regulations                intergovernmental consultation with                     (a) * * *
                                           in § 107.1 to clarify that the preparation              State and local officials. (See 7 CFR part              (2) All steps in the preparation of
                                           of biological products pursuant to the                  3015, subpart V.)                                     product being prepared under the
                                           exemption in paragraph (a)(1) of that                                                                         exemption in paragraph (a)(1) of this
                                           section must take place at the same                     Executive Order 12988
                                                                                                                                                         section must be performed at the
                                           facility that the veterinarian preparing                  This final rule has been reviewed                   facilities that the veterinarian utilizes
                                           the product utilizes in conducting the                  under Executive Order 12988, Civil                    for the day-to-day activities associated
                                           day-to-day activities associated with                   Justice Reform. It is not intended to
                                                                                                                                                         with the treatment of animals in the
                                           his/her State-licensed professional                     have retroactive effect. This rule will
                                                                                                                                                         course of his/her State-licensed
                                           practice of veterinary medicine.                        not preempt any State or local laws,
                                                                                                                                                         professional practice of veterinary
                                             The exemption applies to veterinary                   regulations, or policies where they are
                                                                                                                                                         medicine. A veterinary assistant
                                           biologics prepared by a veterinary                      necessary to address local disease
                                           practitioner solely for administration to               conditions or eradication programs.                   employed by the veterinary practitioner
                                           animals in the course of a State-licensed               However, where safety, efficacy, purity,              and working at the veterinary practice’s
                                           professional practice of veterinary                     and potency of biological products are                facility under the veterinarian’s direct
                                           medicine under a veterinarian-client-                   concerned, it is the Agency’s intent to               supervision may perform the steps in
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                                           patient relationship. No provision in the               occupy the field. This includes, but is               the preparation of product. Such
                                           Act or the regulations allows a                         not limited to, the regulation of labeling.           preparation may not be consigned to
                                           veterinary practitioner to take advantage               Under the Act, Congress clearly                       any other party or sub-contracted to a
                                           of the licensing exemption while at the                 intended that there be national                       commercial laboratory/manufacturing
                                           same time consigning the actual                         uniformity in the regulation of these                 facility.
                                           preparation of the product to a                         products. There are no administrative                 *      *     *     *     *


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                                           26822               Federal Register / Vol. 80, No. 90 / Monday, May 11, 2015 / Rules and Regulations

                                             Done in Washington, DC, this 6th day of               Administration, McLean, VA 22102–                     registered civil aircraft for a foreign air
                                           May 2015.                                               5090, (703) 883–4020, TTY (703) 883–                  carrier; and operators of U.S.-registered
                                           Kevin Shea,                                             4056.                                                 civil aircraft, except when such
                                           Administrator, Animal and Plant Health                  SUPPLEMENTARY INFORMATION:      The Farm              operators are foreign air carriers. On
                                           Inspection Service.                                                                                           August 8, 2014, the FAA issued a Notice
                                                                                                   Credit Administration adopted a final
                                           [FR Doc. 2015–11311 Filed 5–8–15; 8:45 am]              rule related to System bank and                       to Airmen (NOTAM) prohibiting flight
                                           BILLING CODE 3410–34–P                                  association disclosures to shareholders               operations in the ORBB FIR at all
                                                                                                   and investors of senior officer                       altitudes, subject to certain limited
                                                                                                   compensation in the Summary                           exceptions, due to the armed conflict in
                                           FARM CREDIT ADMINISTRATION                              Compensation Table. Under the final                   Iraq. This amendment to SFAR No. 77
                                                                                                   rule, System banks and associations are               incorporates the flight prohibition set
                                           12 CFR Part 620                                         not required to report in the Table the               forth in the August 8, 2014, NOTAM
                                                                                                   compensation of employees who are not                 into the rule. The FAA is also revising
                                           RIN 3052–AD02
                                                                                                   senior officers and who would not                     the approval process for this SFAR for
                                           Disclosure to Shareholders; Pension                     otherwise be considered ‘‘highly                      other U.S. Government departments,
                                           Benefit Disclosures                                     compensated employees’’ but for the                   agencies, and instrumentalities, to align
                                                                                                   payments related to, or change(s) in                  with the approval process established
                                           AGENCY:   Farm Credit Administration.                                                                         for other recently published flight
                                                                                                   value of, the employees’ qualified
                                           ACTION:   Notice of effective date.                     pension plans, provided that the plans                prohibition SFARs. This final rule will
                                                                                                   were available to all employees on the                remain in effect for two years.
                                           SUMMARY:    The Farm Credit                                                                                   DATES: This final rule is effective May
                                                                                                   same basis at the time the employees
                                           Administration (FCA or we) adopted a                                                                          11, 2015 through May 11, 2017.
                                                                                                   joined the plans. In accordance with 12
                                           final rule related to Farm Credit System
                                                                                                   U.S.C. 2252, the effective date of the                FOR FURTHER INFORMATION CONTACT: For
                                           (System) bank and association
                                                                                                   final rule is 30 days from the date of                technical questions about this action,
                                           disclosures to shareholders and
                                                                                                   publication in the Federal Register                   contact Will Gonzalez, Air
                                           investors of senior officer compensation
                                                                                                   during which either or both Houses of                 Transportation Division, AFS–220,
                                           in the Summary Compensation Table
                                                                                                   Congress are in session. Based on the                 Flight Standards Service, Federal
                                           (Table). Under the final rule, System
                                                                                                   records of the sessions of Congress, the              Aviation Administration, 800
                                           banks and associations are not required
                                                                                                   effective date of the regulations is April            Independence Avenue SW.,
                                           to report in the Table the compensation
                                                                                                   29, 2015.                                             Washington, DC 20591; telephone: 202–
                                           of employees who are not senior officers
                                                                                                   (12 U.S.C. 2252(a)(9) and (10))                       267–8166; email: will.gonzalez@faa.gov.
                                           and who would not otherwise be
                                                                                                                                                            For legal questions concerning this
                                           considered ‘‘highly compensated                           Dated: May 5, 2015.                                 action, contact: Robert Frenzel, Office of
                                           employees’’ but for the payments related                Dale L. Aultman,                                      the Chief Counsel, AGC–200, Federal
                                           to, or change(s) in value of, the                       Secretary, Farm Credit Administration Board.          Aviation Administration, 800
                                           employees’ qualified pension plans,
                                                                                                   [FR Doc. 2015–11286 Filed 5–8–15; 8:45 am]            Independence Avenue SW.,
                                           provided that the plans were available
                                                                                                   BILLING CODE 6705–01–P                                Washington, DC 20591; telephone (202)
                                           to all employees on the same basis at the
                                                                                                                                                         267–7638, email: robert.frenzel@faa.gov.
                                           time the employees joined the plans. In
                                           accordance with the law, the effective                                                                        SUPPLEMENTARY INFORMATION:
                                           date of the rule is 30 days from the date               DEPARTMENT OF TRANSPORTATION
                                                                                                                                                         Good Cause for Immediate Adoption
                                           of publication in the Federal Register                  Federal Aviation Administration                          Section 553(b)(3)(B) of title 5, U.S.
                                           during which either or both Houses of
                                                                                                                                                         Code, authorizes agencies to dispense
                                           Congress are in session.                                14 CFR Part 91                                        with notice and comment procedures
                                           DATES: Effective Date: Under the                                                                              for rules when the agency for ‘‘good
                                           authority of 12 U.S.C. 2252, the                        [Docket No. FAA–2003–14766; Amendment
                                                                                                   No. 91–327A; SFAR No. 77]                             cause’’ finds that those procedures are
                                           regulation amending 12 CFR part 620                                                                           ‘‘impracticable, unnecessary, or contrary
                                           published on February 26, 2015 (80 FR                   RIN 2120–AK60                                         to the public interest.’’ In this instance,
                                           10325) is effective April 29, 2015.                                                                           the FAA finds that notice and public
                                              Compliance Date: System banks and                    Prohibition Against Certain Flights
                                                                                                                                                         comment to this immediately adopted
                                           associations must comply with the final                 Within the Baghdad (ORBB) Flight
                                                                                                                                                         final rule, as well as any delay in the
                                           rule for compensation reported in the                   Information Region (FIR)
                                                                                                                                                         effective date of this rule, are
                                           Table for the fiscal year ending 2015,                  AGENCY:  Federal Aviation                             impracticable and contrary to the public
                                           and may implement the final rule                        Administration (FAA), Department of                   interest due to the immediate need to
                                           retroactively for the fiscal years ended                Transportation (DOT).                                 address the potential hazard to civil
                                           2014, 2013, and 2012. However,                                                                                aviation that now exists in the ORBB
                                                                                                   ACTION: Final rule.
                                           retroactive application is not required,                                                                      FIR, as described in the Background
                                           and we would expect footnote                            SUMMARY:   This action amends Special                 section of this rule.
                                           disclosure of the change in calculation                 Federal Aviation Regulation (SFAR) No.
                                           for the fiscal years to which the final                 77, ‘‘Prohibition Against Certain Flights             Authority for This Rulemaking
                                           rule was applied.                                       Within the Territory and Airspace of                    The FAA is responsible for the safety
                                           FOR FURTHER INFORMATION CONTACT:                        Iraq,’’ which prohibits certain flight                of flight in the U.S. and for the safety
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                                           Michael T. Wilson, Policy Analyst,                      operations in the territory and airspace              of U.S. civil operators, U.S.-registered
                                           Office of Regulatory Policy, Farm Credit                of Iraq by all United States (U.S.) air               civil aircraft, and U.S.-certificated
                                           Administration, McLean, VA 22102–                       carriers; U.S. commercial operators;                  airmen throughout the world. The
                                           5090, (703) 883–4124, TTY (703) 883–                    persons exercising the privileges of a                FAA’s authority to issue rules on
                                           4056, or Jeff Pienta, Senior Attorney,                  U.S. airman certificate, except when                  aviation safety is found in title 49, U.S.
                                           Office of General Counsel, Farm Credit                  such persons are operating a U.S.-                    Code. Subtitle I, section 106(f),


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Document Created: 2018-02-21 10:25:55
Document Modified: 2018-02-21 10:25:55
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective July 10, 2015.
ContactDr. Donna Malloy, Operational Support Section, Center for Veterinary Biologics, Policy, Evaluation, and Licensing, VS, APHIS, 4700 River Road Unit 148, Riverdale, MD 20737- 1231; phone (301) 851-3426, fax (301) 734-4314.
FR Citation80 FR 26819 
RIN Number0579-AD66
CFR AssociatedAnimal Biologics and Reporting and Recordkeeping Requirements

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