81_FR_70850 81 FR 70652 - Withdrawal of Notice of Intent to Temporarily Place Mitragynine and 7-Hydroxymitragynine Into Schedule I

81 FR 70652 - Withdrawal of Notice of Intent to Temporarily Place Mitragynine and 7-Hydroxymitragynine Into Schedule I

DEPARTMENT OF JUSTICE
Drug Enforcement Administration

Federal Register Volume 81, Issue 198 (October 13, 2016)

Page Range70652-70654
FR Document2016-24659

On August 31, 2016, the Drug Enforcement Administration (DEA) published in the Federal Register a notice of intent to temporarily place mitragynine and 7-hydroxymitragynine, which are the main psychoactive constituents of the plant Mitragyna speciosa, also referred to as kratom, into schedule I pursuant to the temporary scheduling provisions of the Controlled Substances Act. Since publishing that notice, DEA has received numerous comments from members of the public challenging the scheduling action and requesting that the agency consider those comments and accompanying information before taking further action. In addition, DEA will receive from the Food and Drug Administration (FDA) a scientific and medical evaluation and scheduling recommendation for these substances, which DEA previously requested. DEA is therefore taking the following actions: DEA is withdrawing the August 31, 2016 notice of intent; and soliciting comments from the public regarding the scheduling of mitragynine and 7-hydroxymitragynine under the Controlled Substances Act.

Federal Register, Volume 81 Issue 198 (Thursday, October 13, 2016)
[Federal Register Volume 81, Number 198 (Thursday, October 13, 2016)]
[Proposed Rules]
[Pages 70652-70654]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24659]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration

21 CFR Part 1308

[Docket No. DEA-442W]


Withdrawal of Notice of Intent to Temporarily Place Mitragynine 
and 7-Hydroxymitragynine Into Schedule I

AGENCY: Drug Enforcement Administration, Department of Justice.

ACTION: Withdrawal of Notice of Intent; Solicitation of Comments.

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

SUMMARY: On August 31, 2016, the Drug Enforcement Administration (DEA) 
published in the Federal Register a notice of intent to temporarily 
place mitragynine and 7-hydroxymitragynine, which are the main 
psychoactive constituents of the plant Mitragyna speciosa, also 
referred to as kratom, into schedule I pursuant to the temporary 
scheduling provisions of the Controlled Substances Act. Since 
publishing that notice, DEA has received numerous comments from members 
of the public challenging the scheduling action and requesting that the 
agency consider those comments and accompanying information before 
taking further action. In addition, DEA will receive from the Food and 
Drug Administration (FDA) a scientific and medical evaluation and 
scheduling recommendation for these substances, which DEA previously 
requested.
    DEA is therefore taking the following actions: DEA is withdrawing 
the August 31, 2016 notice of intent; and soliciting comments from the 
public regarding the scheduling of mitragynine and 7-hydroxymitragynine 
under the Controlled Substances Act.

DATES: The notice of intent that was published on August 31, 2016 (81 
FR 59929) is withdrawn as of October 13, 2016. The comment period will 
be open until December 1, 2016. All comments for the public record must 
be submitted electronically or in writing in accordance with the 
procedures outlined below. Electronic comments must be submitted, and 
written comments must be postmarked, on or before December 1, 2016. 
Commenters should be aware that the electronic Federal Docket 
Management System will not accept comments after 11:59 p.m. Eastern 
Time on the last day of the comment period. Please note that if you 
previously submitted a comment via email or regular mail following the 
August 31, 2016 notice, that comment is being considered by DEA--it is 
not necessary to resubmit the same comment unless you wish to provide 
additional information, or you wish to have your comment posted for 
public view in accordance with the instructions provided below.

ADDRESSES: To ensure proper handling of comments, please reference 
``Docket No. DEA-442W'' on all correspondence, including any 
attachments.
     Electronic comments: The Drug Enforcement Administration 
encourages that all comments be submitted electronically through the 
Federal eRulemaking Portal, which provides the ability to type short 
comments directly into the comment field on the Web page or attach a 
file for lengthier comments. Please go to http://www.regulations.gov 
and follow the online instructions at that site for submitting 
comments. Upon completion of your submission, you will receive a 
Comment Tracking Number for your comment. Please be aware that 
submitted comments are not instantaneously available for public view on 
Regulations.gov. If you have

[[Page 70653]]

received a Comment Tracking Number, your comment has been successfully 
submitted and there is no need to resubmit the same comment.
     Paper comments: Paper comments that duplicate the 
electronic submission are not necessary and are discouraged. Should you 
wish to mail a paper comment in lieu of an electronic comment, it 
should be sent via regular or express mail to: Drug Enforcement 
Administration, Attn: DEA Federal Register Representative/ODW, 8701 
Morrissette Drive, Springfield, Virginia 22152.

FOR FURTHER INFORMATION CONTACT: Michael J. Lewis, Diversion Control 
Division, Drug Enforcement Administration; Mailing Address: 8701 
Morrissette Drive, Springfield, Virginia 22152; Telephone: (202) 598-
6812.

SUPPLEMENTARY INFORMATION:

Posting of Public Comments

    Please note that all comments received in response to this notice 
are considered part of the public record. If you previously submitted a 
comment via email or regular mail following the August 31, 2016 notice, 
that comment is being considered by DEA--it is not necessary to 
resubmit the same comment unless you wish to provide additional 
information, or you wish to have your comment posted for public view in 
accordance with the instructions provided below.
    All comments received in response to this notice of opportunity to 
comment will, unless reasonable cause is given, be made available by 
DEA for public inspection online at http://www.regulations.gov. Such 
information includes personal identifying information (such as your 
name, address, etc.) voluntarily submitted by the commenter. The 
Freedom of Information Act (FOIA) applies to all comments received. If 
you want to submit personal identifying information (such as your name, 
address, etc.) as part of your comment, but do not want it to be made 
publicly available, you must include the phrase ``PERSONAL IDENTIFYING 
INFORMATION'' in the first paragraph of your comment. You must also 
place all of the personal identifying information you do not want made 
publicly available in the first paragraph of your comment and identify 
what information you want redacted.
    If you want to submit confidential business information as part of 
your comment, but do not want it to be made publicly available, you 
must include the phrase ``CONFIDENTIAL BUSINESS INFORMATION'' in the 
first paragraph of your comment. You must also prominently identify the 
confidential business information to be redacted within the comment.
    Comments containing personal identifying information and 
confidential business information identified as directed above will 
generally be made publicly available in redacted form. If a comment has 
so much personal identifying information or confidential business 
information that it cannot be effectively redacted, all or part of that 
comment may not be made publicly available. Comments posted to http://www.regulations.gov may include any personal identifying information 
(such as name, address, and phone number) or confidential business 
information included in the text of your electronic submission that is 
not identified as directed above as personal or confidential.

Background

Withdrawal of Notice of Intent

    The Controlled Substances Act (CSA) contains a temporary scheduling 
provision, 21 U.S.C. 811(h), pursuant to which the DEA Administrator 
\1\ may temporarily place a substance in schedule I where he finds that 
doing so is necessary to avoid an imminent hazard to the public safety. 
This provision of the CSA requires DEA to publish a notice in the 
Federal Register of its intent to issue a temporary scheduling order at 
least 30 days before issuing any such order. DEA published such a 
notice of intent on August 31, 2016, with respect to mitragynine and 7-
hydroxymitragynine, which are the main psychoactive constituents of the 
plant commonly known as kratom. 81 FR 59929.
---------------------------------------------------------------------------

    \1\ The Attorney General has delegated her functions under the 
CSA to the DEA Administrator.
---------------------------------------------------------------------------

    In response to the notice of intent, DEA received numerous comments 
from the public on mitragynine and 7-hydroxymitragynine, including 
comments offering their opinions regarding the pharmacological effects 
of these substances. To allow consideration of these comments, as well 
as others received on or before December 1, 2016, DEA has decided to 
withdraw the August 31, 2016 notice of intent published at 81 FR 59929. 
DEA has also requested that the FDA expedite its scientific and medical 
evaluation and scheduling recommendation for these substances, which 
DEA previously requested in accordance with 21 U.S.C. 811(b).\2\
---------------------------------------------------------------------------

    \2\ Section 811(b) provides that the scientific and medical 
evaluation and scheduling recommendation shall be conducted by the 
Secretary of Health and Human Services (HHS). This function has been 
delegated to the Assistant Secretary for Health. 58 FR 35460 (1993). 
Within HHS, the FDA has primary responsibility for conducting the 
evaluation and making the recommendation.
---------------------------------------------------------------------------

    Accordingly, the August 31, 2016, notice of intent to temporarily 
place mitragynine and 7-hydroxymitragynine in schedule I is withdrawn. 
Mitragynine and 7-hydroxymitragynine therefore remain--as has been the 
case--noncontrolled substances under federal law.\3\
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    \3\ Under some state and local laws, kratom and/or its 
constituents mitragynine and 7-hydroxymitragynine are currently 
listed as controlled substances or otherwise subject to control. 
Nothing in this publication alters the validity of such laws, or any 
pending state efforts to implement those laws or enact new laws 
controlling these substances.
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Consideration of Public Comments and FDA's Analysis

    With respect to mitragynine and 7-hydroxymitragynine, DEA will 
consider all public comments received under the above procedures, as 
well as FDA's scientific and medical evaluation and scheduling 
recommendation for these substances. Once DEA has received and 
considered all of this information, DEA will decide whether to proceed 
with permanent scheduling of mitragynine and 7-hydroxymitragynine, or 
both permanent and temporary scheduling of these substances.
    Permanent Scheduling Process: As the CSA provides, if DEA 
determines that the medical and scientific facts contained in the FDA 
scheduling evaluation, along with all other relevant data and 
information, constitute substantial evidence of potential for abuse to 
support permanent scheduling of mitragynine and 7-hydroxymitragynine, 
DEA will publish in the Federal Register a notice of proposed 
rulemaking, which will give interested members of the public an 
additional opportunity to submit comments and request a hearing.\4\ As 
provided in 21 U.S.C. 811(a), permanent scheduling rules shall be made 
on the record after opportunity for a hearing pursuant to the 
rulemaking procedures prescribed by 5 U.S.C. 553, 556, and 557.
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    \4\ In permanent scheduling actions, when DEA reviews the FDA 
evaluation and scheduling recommendation, the FDA determinations as 
to scientific and medical matters are binding on DEA. 21 U.S.C. 
811(b).
---------------------------------------------------------------------------

    Temporary Scheduling Process: The pendency of permanent scheduling 
proceedings for a substance does not preclude a simultaneous or 
subsequent order to temporarily control that substance. If DEA finds in 
light of FDA's scientific and medical evaluation and after 
consideration of all public

[[Page 70654]]

comments and other relevant information that, based on the criteria of 
section 811(h), temporary placement of mitragynine and 7-
hydroxymitragynine in schedule I is necessary to avoid an imminent 
hazard to the public safety, DEA will follow the statutory procedures 
for issuing such a temporary scheduling order. As indicated above, 
before issuing such a temporary scheduling order, DEA would be required 
---------------------------------------------------------------------------
to publish in the Federal Register a new notice of intent.

    Dated: October 6, 2016.
Chuck Rosenberg,
Acting Administrator.
[FR Doc. 2016-24659 Filed 10-12-16; 8:45 am]
BILLING CODE 4410-09-P



                                               70652                 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Proposed Rules

                                               as a result of this proposed rule would                 List of Subjects in 19 CFR Part 360                   Substances Act. Since publishing that
                                               be less than two percent, or an                           Administrative practice and                         notice, DEA has received numerous
                                               estimated $37,151.00, of the estimated                  procedure, Business and industry,                     comments from members of the public
                                               total $1,857,560.00 cost to all steel                   Imports, Reporting and recordkeeping                  challenging the scheduling action and
                                               importers to process the on-line                        requirements, Steel.                                  requesting that the agency consider
                                               automatic licenses. These calculations                                                                        those comments and accompanying
                                               were based on an hourly pay rate of                       Dated: October 4, 2016.                             information before taking further action.
                                               $20.00 multiplied by the estimated                      Ken Hyatt,                                            In addition, DEA will receive from the
                                               92,878 total annual burden hours. Based                 Acting Under Secretary for International              Food and Drug Administration (FDA) a
                                               on the current patterns of license                      Trade.                                                scientific and medical evaluation and
                                               applications, the vast majority of the                    For the reasons discussed above, we                 scheduling recommendation for these
                                               licenses are applied for by large                       propose amending 19 CFR part 360 as                   substances, which DEA previously
                                               companies. The approximate cost of a                    follows:                                              requested.
                                               single license is less than 10 minutes of                                                                       DEA is therefore taking the following
                                               the applicant’s time and this is reduced                PART 360—STEEL IMPORT                                 actions: DEA is withdrawing the August
                                               if applicants use templates or the                      MONITORING AND ANALYSIS SYSTEM                        31, 2016 notice of intent; and soliciting
                                               electronic data interface for multiple                                                                        comments from the public regarding the
                                               licenses. This amounts to an average                    ■ 1. The authority citation for part 360              scheduling of mitragynine and 7-
                                               cost per license of $3.33.                              continues to read as follows:                         hydroxymitragynine under the
                                                  This proposed rule contains                              Authority: 13 U.S.C. 301(a) and 302.              Controlled Substances Act.
                                               collection-of-information requirements                                                                        DATES: The notice of intent that was
                                                                                                       ■ 2. Section 360.105 is revised to read
                                               subject to review and approval by the                   as follows.                                           published on August 31, 2016 (81 FR
                                               Office of Management and Budget                                                                               59929) is withdrawn as of October 13,
                                               (OMB) under the Paperwork Reduction                     § 360.105 Duration of the steel import                2016. The comment period will be open
                                               Act (PRA).                                              licensing requirement.                                until December 1, 2016. All comments
                                                  These requirements have been                            The licensing program will be in                   for the public record must be submitted
                                               approved by OMB (OMB No.: 0625–                         effect through March 21, 2022, but may                electronically or in writing in
                                               0245; Expiration Date: 1/31/2018).                      be extended upon review and                           accordance with the procedures
                                               Public reporting for this collection of                 notification in the Federal Register                  outlined below. Electronic comments
                                               information is estimated to be less than                prior to this expiration date. Licenses               must be submitted, and written
                                               10 minutes per response, including the                  will be required for all subject imports              comments must be postmarked, on or
                                               time for reviewing instructions, and                    entered during this period, even if the               before December 1, 2016. Commenters
                                               completing and reviewing the collection                 entry summary documents are not filed                 should be aware that the electronic
                                               of information.                                         until after the expiration of this                    Federal Docket Management System
                                                                                                       program. The licenses will be valid for               will not accept comments after 11:59
                                               Paperwork Reduction Act Data                                                                                  p.m. Eastern Time on the last day of the
                                                                                                       10 business days after the expiration of
                                                 OMB Number: 0625–0245.                                this program to allow for the final filing            comment period. Please note that if you
                                                 ITA Number: ITA–4141P.                                of required Customs documentation.                    previously submitted a comment via
                                                 Type of Review: Regular Submission.                   [FR Doc. 2016–24649 Filed 10–12–16; 8:45 am]          email or regular mail following the
                                                                                                                                                             August 31, 2016 notice, that comment is
                                                 Affected Public: Business or other for-               BILLING CODE 3510–DS–P
                                                                                                                                                             being considered by DEA—it is not
                                               profit.
                                                                                                                                                             necessary to resubmit the same
                                                 Estimated Number of Registered                                                                              comment unless you wish to provide
                                               Users: 3,500.                                           DEPARTMENT OF JUSTICE
                                                                                                                                                             additional information, or you wish to
                                                 Estimated Time per Response: Less                                                                           have your comment posted for public
                                               than 10 minutes.                                        Drug Enforcement Administration
                                                                                                                                                             view in accordance with the
                                                 Estimated Total Annual Burden                                                                               instructions provided below.
                                                                                                       21 CFR Part 1308
                                               Hours: 92,878 hours.                                                                                          ADDRESSES: To ensure proper handling
                                                 Estimated Total Annual Costs: $0.00.                  [Docket No. DEA–442W]                                 of comments, please reference ‘‘Docket
                                                 Notwithstanding any other provision                                                                         No. DEA–442W’’ on all correspondence,
                                                                                                       Withdrawal of Notice of Intent to
                                               of law, no person is required to respond                                                                      including any attachments.
                                                                                                       Temporarily Place Mitragynine and 7-
                                               to nor shall a person be subject to a                                                                           • Electronic comments: The Drug
                                                                                                       Hydroxymitragynine Into Schedule I
                                               penalty for failure to comply with a                                                                          Enforcement Administration encourages
                                               collection of information subject to the                AGENCY:   Drug Enforcement                            that all comments be submitted
                                               requirements of the Paperwork                           Administration, Department of Justice.                electronically through the Federal
                                               Reduction Act unless that collection of                 ACTION: Withdrawal of Notice of Intent;               eRulemaking Portal, which provides the
                                               information displays a current valid                    Solicitation of Comments.                             ability to type short comments directly
                                               OMB Control Number.                                                                                           into the comment field on the Web page
                                                                                                       SUMMARY:   On August 31, 2016, the Drug               or attach a file for lengthier comments.
                                               Executive Order 12866
                                                                                                       Enforcement Administration (DEA)                      Please go to http://www.regulations.gov
                                                 This rule has been determined to be                   published in the Federal Register a                   and follow the online instructions at
Lhorne on DSK30JT082PROD with PROPOSALS




                                               not significant for purposes of Executive               notice of intent to temporarily place                 that site for submitting comments. Upon
                                               Order 12866.                                            mitragynine and 7-hydroxymitragynine,                 completion of your submission, you will
                                                                                                       which are the main psychoactive                       receive a Comment Tracking Number for
                                               Executive Order 13132
                                                                                                       constituents of the plant Mitragyna                   your comment. Please be aware that
                                                 This rule does not contain policies                   speciosa, also referred to as kratom, into            submitted comments are not
                                               with federalism implications as that                    schedule I pursuant to the temporary                  instantaneously available for public
                                               term is defined in EO 13132.                            scheduling provisions of the Controlled               view on Regulations.gov. If you have


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                                                                     Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Proposed Rules                                                 70653

                                               received a Comment Tracking Number,                     prominently identify the confidential                   Accordingly, the August 31, 2016,
                                               your comment has been successfully                      business information to be redacted                   notice of intent to temporarily place
                                               submitted and there is no need to                       within the comment.                                   mitragynine and 7-hydroxymitragynine
                                               resubmit the same comment.                                 Comments containing personal                       in schedule I is withdrawn. Mitragynine
                                                 • Paper comments: Paper comments                      identifying information and confidential              and 7-hydroxymitragynine therefore
                                               that duplicate the electronic submission                business information identified as                    remain—as has been the case—
                                               are not necessary and are discouraged.                  directed above will generally be made                 noncontrolled substances under federal
                                               Should you wish to mail a paper                         publicly available in redacted form. If a             law.3
                                               comment in lieu of an electronic                        comment has so much personal
                                                                                                                                                             Consideration of Public Comments and
                                               comment, it should be sent via regular                  identifying information or confidential
                                                                                                                                                             FDA’s Analysis
                                               or express mail to: Drug Enforcement                    business information that it cannot be
                                               Administration, Attn: DEA Federal                       effectively redacted, all or part of that                With respect to mitragynine and 7-
                                               Register Representative/ODW, 8701                       comment may not be made publicly                      hydroxymitragynine, DEA will consider
                                               Morrissette Drive, Springfield, Virginia                available. Comments posted to http://                 all public comments received under the
                                               22152.                                                  www.regulations.gov may include any                   above procedures, as well as FDA’s
                                                                                                       personal identifying information (such                scientific and medical evaluation and
                                               FOR FURTHER INFORMATION CONTACT:                                                                              scheduling recommendation for these
                                               Michael J. Lewis, Diversion Control                     as name, address, and phone number) or
                                                                                                       confidential business information                     substances. Once DEA has received and
                                               Division, Drug Enforcement                                                                                    considered all of this information, DEA
                                               Administration; Mailing Address: 8701                   included in the text of your electronic
                                                                                                       submission that is not identified as                  will decide whether to proceed with
                                               Morrissette Drive, Springfield, Virginia                                                                      permanent scheduling of mitragynine
                                               22152; Telephone: (202) 598–6812.                       directed above as personal or
                                                                                                       confidential.                                         and 7-hydroxymitragynine, or both
                                               SUPPLEMENTARY INFORMATION:                                                                                    permanent and temporary scheduling of
                                                                                                       Background                                            these substances.
                                               Posting of Public Comments
                                                                                                       Withdrawal of Notice of Intent                           Permanent Scheduling Process: As the
                                                  Please note that all comments                                                                              CSA provides, if DEA determines that
                                               received in response to this notice are                    The Controlled Substances Act (CSA)                the medical and scientific facts
                                               considered part of the public record. If                contains a temporary scheduling                       contained in the FDA scheduling
                                               you previously submitted a comment                      provision, 21 U.S.C. 811(h), pursuant to              evaluation, along with all other relevant
                                               via email or regular mail following the                 which the DEA Administrator 1 may                     data and information, constitute
                                               August 31, 2016 notice, that comment is                 temporarily place a substance in                      substantial evidence of potential for
                                               being considered by DEA—it is not                       schedule I where he finds that doing so               abuse to support permanent scheduling
                                               necessary to resubmit the same                          is necessary to avoid an imminent                     of mitragynine and 7-
                                               comment unless you wish to provide                      hazard to the public safety. This                     hydroxymitragynine, DEA will publish
                                               additional information, or you wish to                  provision of the CSA requires DEA to                  in the Federal Register a notice of
                                               have your comment posted for public                     publish a notice in the Federal Register              proposed rulemaking, which will give
                                               view in accordance with the                             of its intent to issue a temporary                    interested members of the public an
                                               instructions provided below.                            scheduling order at least 30 days before              additional opportunity to submit
                                                  All comments received in response to                 issuing any such order. DEA published                 comments and request a hearing.4 As
                                               this notice of opportunity to comment                   such a notice of intent on August 31,                 provided in 21 U.S.C. 811(a), permanent
                                               will, unless reasonable cause is given,                 2016, with respect to mitragynine and 7-              scheduling rules shall be made on the
                                               be made available by DEA for public                     hydroxymitragynine, which are the                     record after opportunity for a hearing
                                               inspection online at http://                            main psychoactive constituents of the                 pursuant to the rulemaking procedures
                                               www.regulations.gov. Such information                   plant commonly known as kratom. 81                    prescribed by 5 U.S.C. 553, 556, and
                                               includes personal identifying                           FR 59929.                                             557.
                                               information (such as your name,                            In response to the notice of intent,                  Temporary Scheduling Process: The
                                               address, etc.) voluntarily submitted by                 DEA received numerous comments from                   pendency of permanent scheduling
                                               the commenter. The Freedom of                           the public on mitragynine and 7-                      proceedings for a substance does not
                                               Information Act (FOIA) applies to all                   hydroxymitragynine, including                         preclude a simultaneous or subsequent
                                               comments received. If you want to                       comments offering their opinions                      order to temporarily control that
                                               submit personal identifying information                 regarding the pharmacological effects of              substance. If DEA finds in light of FDA’s
                                               (such as your name, address, etc.) as                   these substances. To allow                            scientific and medical evaluation and
                                               part of your comment, but do not want                   consideration of these comments, as                   after consideration of all public
                                               it to be made publicly available, you                   well as others received on or before
                                               must include the phrase ‘‘PERSONAL                      December 1, 2016, DEA has decided to                  This function has been delegated to the Assistant
                                               IDENTIFYING INFORMATION’’ in the                        withdraw the August 31, 2016 notice of                Secretary for Health. 58 FR 35460 (1993). Within
                                               first paragraph of your comment. You                    intent published at 81 FR 59929. DEA                  HHS, the FDA has primary responsibility for
                                                                                                                                                             conducting the evaluation and making the
                                               must also place all of the personal                     has also requested that the FDA                       recommendation.
                                               identifying information you do not want                 expedite its scientific and medical                     3 Under some state and local laws, kratom and/

                                               made publicly available in the first                    evaluation and scheduling                             or its constituents mitragynine and 7-
                                               paragraph of your comment and identify                  recommendation for these substances,                  hydroxymitragynine are currently listed as
                                                                                                       which DEA previously requested in                     controlled substances or otherwise subject to
                                               what information you want redacted.
Lhorne on DSK30JT082PROD with PROPOSALS




                                                                                                                                                             control. Nothing in this publication alters the
                                                  If you want to submit confidential                   accordance with 21 U.S.C. 811(b).2                    validity of such laws, or any pending state efforts
                                               business information as part of your                                                                          to implement those laws or enact new laws
                                               comment, but do not want it to be made                    1 The Attorney General has delegated her            controlling these substances.
                                               publicly available, you must include the                functions under the CSA to the DEA Administrator.       4 In permanent scheduling actions, when DEA
                                                                                                         2 Section 811(b) provides that the scientific and   reviews the FDA evaluation and scheduling
                                               phrase ‘‘CONFIDENTIAL BUSINESS                          medical evaluation and scheduling                     recommendation, the FDA determinations as to
                                               INFORMATION’’ in the first paragraph                    recommendation shall be conducted by the              scientific and medical matters are binding on DEA.
                                               of your comment. You must also                          Secretary of Health and Human Services (HHS).         21 U.S.C. 811(b).



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                                               70654                 Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Proposed Rules

                                               comments and other relevant                             electronically via the Federal                        IRS investigates and verifies the
                                               information that, based on the criteria of              eRulemaking Portal at http://                         taxpayer’s financial information
                                               section 811(h), temporary placement of                  www.regulations.gov (indicate IRS and                 submitted with the offer to determine
                                               mitragynine and 7-hydroxymitragynine                    REG–108934–16). The public hearing                    whether such a compromise is
                                               in schedule I is necessary to avoid an                  will be held in the Main IR Auditorium                appropriate before accepting the terms
                                               imminent hazard to the public safety,                   beginning at 10:00 a.m. in the Internal               of the offer in compromise. If the IRS
                                               DEA will follow the statutory                           Revenue Service Building, 1111                        initially rejects a processable offer in
                                               procedures for issuing such a temporary                 Constitution Avenue NW., Washington,                  compromise based on an investigation
                                               scheduling order. As indicated above,                   DC 20224.                                             of the taxpayer’s financial position,
                                               before issuing such a temporary                         FOR FURTHER INFORMATION CONTACT:                      section 7122(e)(1) provides that the IRS
                                               scheduling order, DEA would be                          Concerning the proposed amendments                    must conduct an independent
                                               required to publish in the Federal                      to the regulations, Maria Del Pilar                   administrative review of that decision
                                               Register a new notice of intent.                        Austin at (202) 317–5437; concerning                  before communicating the rejection to
                                                 Dated: October 6, 2016.                               submissions of comments, the hearing,                 the taxpayer. If the independent
                                               Chuck Rosenberg,                                        or to be placed on the building access                administrative review upholds the IRS’s
                                                                                                       list to attend the hearing, Regina                    initial decision to reject a processable
                                               Acting Administrator.
                                                                                                       Johnson, at (202) 317–6901; concerning                offer in compromise, section 7122(e)(2)
                                               [FR Doc. 2016–24659 Filed 10–12–16; 8:45 am]
                                                                                                       cost methodology, Eva Williams, at                    provides that the taxpayer is notified of
                                               BILLING CODE 4410–09–P                                                                                        the rejection and has the right to appeal
                                                                                                       (202) 803–9728 (not toll-free numbers).
                                                                                                       SUPPLEMENTARY INFORMATION:                            the rejection to the IRS’s Appeals Office.
                                                                                                                                                             When the IRS accepts an offer in
                                               DEPARTMENT OF THE TREASURY                              Background                                            compromise, the IRS processes the
                                                                                                          This document contains proposed                    payments and monitors the taxpayer’s
                                               Internal Revenue Service                                                                                      compliance with the terms of the offer.
                                                                                                       regulations that would amend § 300.3 of
                                                                                                       the User Fee Regulations (26 CFR part                    Under § 300.3, the IRS currently
                                               26 CFR Part 300                                                                                               charges $186 for processing an offer in
                                                                                                       300), which provides for a user fee
                                               [REG–108934–16]                                         applicable to offers in compromise                    compromise, which includes reviewing
                                                                                                       under section 7122 of the Internal                    and monitoring the offer. Under
                                               RIN 1545–BN38
                                                                                                       Revenue Code (Code).                                  § 300.3(b)(2)(i) and (ii), if a fee is
                                               User Fees for Offers in Compromise                         Section 7122(a) provides the Secretary             charged and the offer is accepted to
                                                                                                       the authority to compromise any civil or              promote effective tax administration or
                                               AGENCY: Internal Revenue Service (IRS),                 criminal case arising under the internal              accepted based on doubt as to
                                               Treasury.                                               revenue laws, prior to the referral of that           collectability where the IRS has
                                               ACTION: Notice of proposed rulemaking                   case to the Department of Justice.                    determined that collection of an amount
                                               and notice of public hearing.                           Section 7122(d)(1) requires the IRS to                greater than the amount offered would
                                                                                                       prescribe guidelines for officers and                 create economic hardship, then the user
                                               SUMMARY:   This document contains                                                                             fee is applied against the amount to be
                                                                                                       employees of the IRS to determine
                                               proposed amendments to the                                                                                    paid under the offer unless the taxpayer
                                                                                                       whether an offer in compromise is
                                               regulations that provide user fees for                                                                        requests that it be refunded. Section
                                                                                                       adequate and should be accepted to
                                               offers in compromise. The proposed                                                                            300.3(b)(1)(i) and (ii) provide that no fee
                                                                                                       resolve a dispute. Those guidelines can
                                               amendments affect taxpayers who wish                                                                          is charged if an offer is based solely on
                                                                                                       generally be found in § 301.7122–1.
                                               to pay their liabilities through offers in                                                                    doubt as to liability, or made by a low-
                                                                                                       Under those guidelines, an offer in
                                               compromise. The proposed effective                                                                            income taxpayer.
                                                                                                       compromise may be accepted if there is
                                               date for these proposed amendments to
                                                                                                       doubt as to liability, if there is doubt as           Explanation of Provisions
                                               the regulations is for offers in
                                                                                                       to collectability, or if acceptance will
                                               compromise submitted on or after                                                                              A. Overview
                                                                                                       promote effective tax administration.
                                               February 27, 2017. This document also
                                                                                                       See § 301.7122–1(b).                                     To bring the user fee rate for offers in
                                               provides a notice of public hearing on
                                                                                                          When the IRS receives an offer in                  compromise closer to the full cost to the
                                               these proposed amendments to the
                                                                                                       compromise, it initially determines                   IRS of providing this taxpayer specific
                                               regulations.
                                                                                                       whether the taxpayer submitting the                   service, the proposed regulations under
                                               DATES: Written or electronic comments                   offer is eligible for the offer in                    § 300.3 would increase the user fee for
                                               must be received by November 28, 2016.                  compromise program and, if the                        an offer in compromise to $300. The
                                               Outlines of topics to be discussed at the               taxpayer is eligible, whether the offer               proposed regulations do not modify
                                               public hearing scheduled for December                   submitted is otherwise processable.                   other portions of the User Fee
                                               16, 2016 at 10:00 a.m. must be received                 Currently, a taxpayer may be ineligible               Regulations regarding offers in
                                               by November 28, 2016.                                   for the offer in compromise program for               compromise, such as § 300.3(b)(1)(i) and
                                               ADDRESSES: Send submissions to:                         a number of reasons, including if the                 (ii) which waive the user fee for offers
                                               Internal Revenue Service,                               taxpayer is in bankruptcy or has not                  in compromise submitted by low-
                                               CC:PA:LPD:PR (REG–108934–16), Room                      filed all required tax returns. The IRS               income taxpayers and offers in
                                               5203, Post Office Box 7604, Ben                         will return an offer as nonprocessable if             compromise based solely on doubt as to
                                               Franklin Station, Washington, DC                        the taxpayer is ineligible or if the offer
Lhorne on DSK30JT082PROD with PROPOSALS




                                                                                                                                                             liability. The increased user fee for
                                               20044. Submissions may be hand-                         has not been properly submitted.                      offers in compromise is proposed to be
                                               delivered Monday through Friday                            If the IRS determines the offer in                 effective for offers submitted on or after
                                               between the hours of 8 a.m. and 4 p.m.                  compromise is processable, then except                February 27, 2017.
                                               to CC:PA:LPD:PR (REG–108934–16),                        where the offer is made under section
                                               Courier’s Desk, Internal Revenue                        7122(d)(3)(B) relating only to issues of              B. User Fee Authority
                                               Service, 1111 Constitution Avenue NW.,                  liability and the case is processed                    The Independent Offices
                                               Washington, DC 20224 or sent                            without a financial investigation, the                Appropriations Act (IOAA) (31 U.S.C.


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Document Created: 2016-10-13 00:53:42
Document Modified: 2016-10-13 00:53:42
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionWithdrawal of Notice of Intent; Solicitation of Comments.
DatesThe notice of intent that was published on August 31, 2016 (81 FR 59929) is withdrawn as of October 13, 2016. The comment period will be open until December 1, 2016. All comments for the public record must be submitted electronically or in writing in accordance with the procedures outlined below. Electronic comments must be submitted, and written comments must be postmarked, on or before December 1, 2016. Commenters should be aware that the electronic Federal Docket Management System will not accept comments after 11:59 p.m. Eastern Time on the last day of the comment period. Please note that if you previously submitted a comment via email or regular mail following the August 31, 2016 notice, that comment is being considered by DEA--it is not necessary to resubmit the same comment unless you wish to provide additional information, or you wish to have your comment posted for public view in accordance with the instructions provided below.
ContactMichael J. Lewis, Diversion Control
FR Citation81 FR 70652 

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