82_FR_45699 82 FR 45511 - 340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties Regulation

82 FR 45511 - 340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties Regulation

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Federal Register Volume 82, Issue 188 (September 29, 2017)

Page Range45511-45514
FR Document2017-20911

The Health Resources and Services Administration (HRSA) administers section 340B of the Public Health Service Act (PHSA), known as the ``340B Drug Pricing Program'' or the ``340B Program.'' HRSA published a final rule on January 5, 2017, that set forth the calculation of the ceiling price and application of civil monetary penalties. The final rule applied to all drug manufacturers that are required to make their drugs available to covered entities under the 340B Program. On August 21, 2017, HHS solicited comments on further delaying the effective date of the January 5, 2017, final rule to July 1, 2018 (82 FR 39553). HHS proposed this action to allow a more deliberate process of considering alternative and supplemental regulatory provisions and to allow for sufficient time for additional rulemaking. After consideration of the comments received on the proposed rule, HHS is delaying the effective date of the January 5, 2017, final rule, to July 1, 2018.

Federal Register, Volume 82 Issue 188 (Friday, September 29, 2017)
[Federal Register Volume 82, Number 188 (Friday, September 29, 2017)]
[Rules and Regulations]
[Pages 45511-45514]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20911]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

42 CFR Part 10

RIN 0906-AB11


340B Drug Pricing Program Ceiling Price and Manufacturer Civil 
Monetary Penalties Regulation

AGENCY: Health Resources and Services Administration, HHS.

ACTION: Final rule; further delay of effective date.

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SUMMARY: The Health Resources and Services Administration (HRSA) 
administers section 340B of the Public Health Service Act (PHSA), known 
as the ``340B Drug Pricing Program'' or the ``340B Program.'' HRSA 
published a final rule on January 5, 2017, that set forth the 
calculation of the ceiling price and application of civil monetary 
penalties. The final rule applied to all drug manufacturers that are 
required to make their drugs available to covered entities under the 
340B Program. On August 21, 2017, HHS solicited comments on further 
delaying the effective date of the January 5, 2017, final rule to July 
1, 2018 (82 FR 39553). HHS proposed this action to allow a more 
deliberate process of considering alternative and supplemental 
regulatory provisions and to allow for sufficient time for additional 
rulemaking. After consideration of the comments received on the 
proposed rule, HHS is delaying the effective date of the January 5, 
2017, final rule, to July 1, 2018.

DATES: As of September 29, 2017, the effective date of the final rule 
published in the Federal Register (82 FR 1210, January 5, 2017) is 
further delayed to July 1, 2018.

FOR FURTHER INFORMATION CONTACT: CAPT Krista Pedley, Director, Office 
of Pharmacy Affairs, Healthcare Systems Bureau, HRSA, 5600 Fishers 
Lane, Mail Stop 08W05A, Rockville, MD 20857, or by telephone at 301-
594-4353.

SUPPLEMENTARY INFORMATION: 

I. Background

    On September 30, 2010, HHS published an advanced notice of proposed 
rulemaking (ANPRM) in the Federal Register, ``340B Drug Pricing Program 
Manufacturer Civil Monetary Penalties'' (75 FR 57230, September 20, 
2010). HHS subsequently published a notice of proposed rulemaking 
(NPRM) on June 17, 2015, to implement CMPs for manufacturers that 
knowingly and intentionally charge a covered entity more than the 
ceiling price for a covered outpatient drug; to provide clarity 
regarding the requirement that manufacturers calculate the 340B ceiling 
price on a quarterly basis; and to establish the requirement that a 
manufacturer charge $.01 (penny pricing) for drugs when the ceiling 
price calculation equals zero (80 FR 34583, June 17, 2015). The public 
comment period closed on August 17, 2015, and HRSA received 35 
comments. After review of the initial comments, HHS reopened the 
comment period (81 FR 22960, April 19, 2016) to invite additional 
comments on the following areas of the NPRM: 340B ceiling price 
calculations that result in a ceiling price that equals zero (penny 
pricing); the methodology that manufacturers use when estimating the 
ceiling price for a new covered outpatient drug; and the definition of 
the ``knowing and intentional'' standard to be applied when assessing a 
CMP for manufacturers that overcharge a covered entity. The comment 
period closed May 19, 2016, and HHS received 72 comments.
    On January 5, 2017, HHS published a final rule in the Federal 
Register (82 FR 1210, January 5, 2017); comments from both the original 
comment period established in the NPRM and the reopened comment period 
announced in the April 19, 2016 notice were considered in the 
development of the final rule. The provisions of that final rule were 
to be effective March 6, 2017; however, HHS issued a subsequent final 
rule (82 FR 12508, March 6, 2017) delaying the effective date to March 
21, 2017, in accordance with a January 20, 2017, memorandum from the 
Assistant to the President and Chief of Staff, titled ``Regulatory 
Freeze Pending Review.'' \1\ In the January 5, 2017, final rule, HHS 
acknowledged that the effective date fell during the middle of a 
quarter and stakeholders needed time to adjust systems and update their 
policies and procedures. As such, HHS stated that it intended to 
enforce the requirements of the final rule at the start of the next 
quarter, which began April 1, 2017.
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    \1\ See: https://www.whitehouse.gov/the-press-office/2017/01/20/memorandum-heads-executive-departments-and-agencies.
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    After further consideration and to provide affected parties 
sufficient time to make needed changes to facilitate compliance, and 
because questions were raised, HHS issued an interim final rule (82 FR 
14332, March 20, 2017), to delay the effective date of the final rule 
to May 22, 2017, and solicited additional comments on whether that date 
should be further extended to October 1, 2017. HHS received 51 comments 
on the interim final rule, some supporting and some opposing the delay 
of the effective date to May 22, 2017, or alternatively to October 1, 
2017. After careful consideration of the comments received, HHS delayed 
the effective date of the January 5, 2017, final rule to October 1, 
2017 (82 FR 22893, May 19, 2017).
    HHS subsequently published a proposed rule (82 FR 39553, August 21, 
2017) to further delay the effective date of the final rule to July 1, 
2018. The further delay allows necessary time to fully consider the 
substantial questions of fact, law, and policy raised by the rule, 
consistent with the aforementioned ``Regulatory Freeze Pending 
Review,'' memorandum. Requiring manufacturers to make targeted and 
potentially costly changes to pricing systems and business procedures 
in order to comply with a rule that is under further consideration and 
for which substantive questions have been raised would be disruptive. 
The further delay allows HHS to consider objections regarding the 
timing of the effective date and challenges associated with complying 
with the rule, as well as other objections to the rule.
    In addition, Executive Order 13765 (82 FR 8351) titled, 
``Minimizing the

[[Page 45512]]

Economic Burden of the Patient Protection and Affordable Care Act 
Pending Repeal,'' specifically instructs HHS and all other heads of 
executive offices to utilize all authority and discretion available to 
delay the implementation of certain provisions or requirements of the 
Patient Protection and Affordable Care Act.\2\ HHS based the January 5, 
2017, final rule on changes made to the 340B Program by the Patient 
Protection and Affordable Care Act. HHS proposed to delay the effective 
date of the January 5, 2017, final rule to July 1, 2018, to allow for a 
sufficient amount of time to consider the regulatory burdens that may 
be posed by this final rule. HHS continues to examine important 
substantive issues in matters covered by the rule and intends to engage 
in additional rulemaking on these issues.
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    \2\ See: https://www.whitehouse.gov/the-press-office/2017/01/2/executive-order-minimizing-economic-burden-patient-protection-and.
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    HHS received a number of comments on the proposed rule both 
supporting and opposing the delay of the effective date to July 1, 
2018. After careful consideration of the comments received, HHS has 
decided to delay the effective date of the January 5, 2017, final rule 
to July 1, 2018. As HHS changed the effective date of the final rule to 
July 1, 2018, enforcement will be delayed to July 1, 2018. HHS 
continues to believe that the delay of the effective date provides 
regulated entities sufficient time to implement the requirements of the 
rule, as well as allowing a more deliberate process of considering 
alternative and supplemental regulatory provisions, and to allow for 
sufficient time for additional rulemaking.
    Section 553(d) of the Administrative Procedure Act (APA) (5 U.S.C. 
551 et seq.) requires that Federal agencies provide at least 30 days 
after publication of a final rule in the Federal Register before making 
it effective, unless good cause can be found not to do so. HHS finds 
good cause for making this final rule effective less than 30 days after 
publication in the Federal Register given that failure to do so would 
result in the final rule published on January 5, 2017, going into 
effect on October 1, 2017, for several weeks before a final rule 
delaying the effective date until July 1, 2018, would go into effect. 
To preclude this uncertainty in the marketplace and to ease the burdens 
of stakeholders, HHS believes that a clear effective date is an 
important goal and one that becomes particularly important when it is 
paired with potential civil monetary penalties. The additional time 
provided to the public before the rule takes effect will assist 
stakeholders in preparing to comply with these new program 
requirements.

II. Analysis and Responses to Public Comments

    In the proposed rule, HHS solicited comments regarding whether we 
should delay the January 5, 2017, final rule to July 1, 2018. We 
received 97 comments containing a number of issues from covered 
entities, manufacturers, and groups representing these stakeholders. In 
this final rule, we will only respond to comments related to whether 
HHS should delay the January 5, 2017, final rule to July 1, 2018. We 
did not consider and do not address comments that raised issues beyond 
the narrow scope of the proposed rule, including comments related to 
withdrawal of the rule or comments related to broader policy matters. 
However, HHS intends to engage in further rulemaking on issues covered 
in the January 5, 2017, final rule. We have summarized the relevant 
comments received and provided our responses below.
    Comment: Some commenters supported HHS's proposed delay of the 
effective date of the final rule until not only July 1, 2018, but until 
HHS fulfills its commitment to engage in additional rulemaking that 
cures the substantive legal and practical concerns with the final rule. 
These commenters recommend that HRSA tie the further delay of the 
effective date of the final rule to the completion of such rulemaking, 
as opposed to a certain date.
    Response: HHS has decided to delay the effective date to July 1, 
2018, to provide affected parties sufficient time to make needed 
changes to facilitate compliance and because HHS continues to examine 
important substantive issues arising from the January 5, 2017, final 
rule. After reviewing the comments received from stakeholders regarding 
objections on the timing of the effective date and challenges 
associated with complying with the final rule, HHS has determined that 
delaying the effective date to July 1, 2018, is necessary to consider 
some of the issues raised. HHS believes that delaying the effective 
date to July 1, 2018, provides sufficient time to address these issues 
and does not believe a further delay is necessary at this time.
    Comment: Some commenters stated that the January 5, 2017, final 
rule contains several policies that are inconsistent with the 340B 
statute and imposes needless burdens on manufacturers. These commenters 
urge HHS to delay the effective date to July 1, 2018, and use the 
additional time to reconsider the policies included in the final rule.
    Responses: HHS intends to engage in further rulemaking and believes 
that this delay will provide HHS with time to consider the substantial 
questions of fact, law, and policy raised by the rule.
    Comment: Several commenters explained that a delay in the effective 
date of the final rule is also necessary to align with the 
Administration priorities of analyzing final, but not yet effective, 
regulations, and removing or minimizing unwarranted economic and 
regulatory burdens related to the Affordable Care Act, the law that 
added the provisions of the 340B statute that are the subject of the 
final rule.
    Response: HHS agrees with the commenters. Executive Order 13765 
instructs agencies to use discretion to delay the implementation of 
certain provisions of requirements of the Patient Protection and 
Affordable Care Act. As previously mentioned, HHS based the January 5, 
2017, final rule on changes made to the 340B Program by the Patient 
Protection and Affordable Care Act. As such, HHS is complying with 
Executive Order 13765 to delay implementation on provisions of that law 
that ``. . . impose a fiscal burden on any State or a cost, fee, tax, 
penalty, or regulatory burden on individuals, families, healthcare 
providers, health insurers, patients, recipients of healthcare 
services, purchasers of health insurance, or makers of medical devices, 
products, or medications.'' The policies finalized in the January 5, 
2017, final rule will require targeted and potentially costly changes 
to pricing systems and business procedures for manufacturers affected 
by the rule. Thus, HHS is delaying the effective date to July 1, 2018.
    Comment: Some commenters recommend that HHS delay the effective 
date of the final rule until HHS concurrently addresses 340B covered 
entity compliance obligations and penalties under the 340B statute, 
which is necessary to strengthen the integrity of the 340B Program.
    Response: HHS plans to issue separate policy documents for the 
different areas of the 340B program integrity provisions in the 340B 
statute and disagrees with the commenters advising HHS to address these 
issues concurrently.
    Comment: Many commenters opposed delaying the effective date to 
July 1, 2018. Commenters recommended that HHS use its statutory 
rulemaking authority to balance the scales of enforcement and oversight 
in the 340B Program, and expressed concern that drug manufacturers have 
engaged in discriminatory pricing strategies due to

[[Page 45513]]

a lack of oversight and enforcement with respect to manufacturer 
behavior. They explained that various factors, including extensive data 
regarding overcharging covered entities, HHS's inability to address 
overcharges, and HHS's admission that many manufacturers are still out 
of compliance highlight the need for the final rule to go into effect 
immediately. They further explained that the January 5, 2017, final 
rule is critical to ensuring that drug manufacturers uphold the intent 
of the 340B Program. The commenters also disagreed that ``a more 
deliberative process is needed'' as there have been multiple delays and 
stakeholders were given various opportunities to comment.
    Response: HHS does not agree that that we should enforce the final 
rule immediately. We are delaying the effective date of the January 5, 
2017, final rule to July 1, 2018, because the delay will provide 
stakeholders with additional time to come into compliance and provide 
time to consider the substantial questions of fact, law, and policy 
raised by the rule. The final rule does not represent the only method 
for HHS to address manufacturer overcharges. In addition to the final 
rule, HHS performs audits of manufacturers, investigates all 
allegations of overcharging, and participates in settlements that have 
returned millions of dollars to covered entities. HHS believes that it 
would be disruptive to require stakeholders to make potentially costly 
changes to pricing systems and business procedures in order to comply 
with a rule that is under further consideration and for which 
substantive questions have been raised.
    While stakeholders had the opportunity to provide comments on the 
final rule, the 340B Program is a complex program that is affected by 
changes in other areas of health care. HHS has determined that this 
complexity and changing environment warrants further review of the 
final rule.
    Comment: Many commenters supported further delaying the effective 
date to July 1, 2018, at a minimum, and agreed with HHS that more time 
was needed for stakeholders to come into compliance and to consider 
substantial questions of fact, law and policy raised by the January 5, 
2017, final rule.
    Response: HHS agrees with the commenters and will delay the 
effective date of the January 5, 2017, final rule to July 1, 2018.

III. Regulatory Impact Analysis

    HHS examined the effects of this final rule as required by 
Executive Order 12866 on Regulatory Planning and Review (September 30, 
1993), Executive Order 13563 on Improving Regulation and Regulatory 
Review (January 8, 2011), the Regulatory Flexibility Act (Pub. L. 96-
354, September 19, 1980), the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4), Executive Order 13132 on Federalism (August 4, 1999), 
the Congressional Review Act, and Executive Order 13771 on Reducing 
Regulation and Controlling Regulatory Costs (January 30, 2017).

Executive Orders 12866, 13563 and 13771

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 is supplemental to and reaffirms the principles, 
structures, and definitions governing regulatory review as established 
in Executive Order 12866, emphasizing the importance of quantifying 
both costs and benefits, of reducing costs, of harmonizing rules, and 
of promoting flexibility. Section 3(f) of Executive Order 12866 defines 
a ``significant regulatory action'' as an action that is likely to 
result in a rule: (1) Having an annual effect on the economy of $100 
million or more in any 1 year, or adversely and materially affecting a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or Tribal 
governments or communities (also referred to as ``economically 
significant''); (2) creating a serious inconsistency or otherwise 
interfering with an action taken or planned by another agency; (3) 
materially altering the budgetary impacts of entitlement grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) raising novel legal or policy issues arising out of 
legal mandates, the President's priorities, or the principles set forth 
in the Executive Order.
    A regulatory impact analysis (RIA) must be prepared for major rules 
with economically significant effects ($100 million or more in any 1 
year), and a ``significant'' regulatory action is subject to review by 
the Office of Management and Budget (OMB) and is therefore, not a major 
rule under the Congressional Review Act.
    HHS does not believe that a delay of the effective date of the 
January 5, 2017, final rule will have an economic impact of $100 
million or more, and is, therefore, not designated as an ``economically 
significant'' rule under section 3(f)(1) of the Executive Order 12866. 
Therefore, the economic impact of having no rule in place related to 
the policies addressed in the final rule is believed to be minimal, as 
the policies would not yet be required or enforceable.
    Executive Order 13771, titled ``Reducing Regulation and Controlling 
Regulatory Costs,'' was issued on January 30, 2017. This final rule is 
not expected to be an EO 13771 regulatory action because this final 
rule is not significant under EO 12866.

The Regulatory Flexibility Act (RFA)

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA) and the 
Small Business Regulatory Enforcement and Fairness Act of 1996, which 
amended the RFA, require HHS to analyze options for regulatory relief 
of small businesses. If a rule has a significant economic effect on a 
substantial number of small entities, the Secretary must specifically 
consider the economic effect of the rule on small entities and analyze 
regulatory options that could lessen the impact of the rule. HHS will 
use an RFA threshold of at least a 3 percent impact on at least 5 
percent of small entities.
    For purposes of the RFA, HHS considers all health care providers to 
be small entities either by meeting the Small Business Administration 
(SBA) size standard for a small business, or by being a nonprofit 
organization that is not dominant in its market. The current SBA size 
standard for health care providers ranges from annual receipts of $7 
million to $35.5 million. As of January 1, 2017, over 12,000 covered 
entities participate in the 340B Program, which represent safety-net 
health care providers across the country. HHS has determined, and the 
Secretary certifies that this final rule will not have a significant 
impact on the operations of a substantial number of small 
manufacturers; therefore, we are not preparing an analysis of impact 
for this RFA. HHS estimates that the economic impact on small entities 
and small manufacturers will be minimal.

Unfunded Mandates Reform Act

    Section 202(a) of the Unfunded Mandates Reform Act of 1995 requires 
that agencies prepare a written statement, which includes an assessment 
of anticipated costs and benefits, before proposing ``any rule that 
includes any Federal mandate that may result in the expenditure by 
State, local, and Tribal governments, in the

[[Page 45514]]

aggregate, or by the private sector, of $100 million or more (adjusted 
annually for inflation) in any one year.'' In 2017, that threshold is 
approximately $148 million. HHS does not expect this rule to exceed the 
threshold.

Executive Order 13132--Federalism

    HHS has reviewed this final rule in accordance with Executive Order 
13132 regarding federalism, and has determined that it does not have 
``federalism implications.'' This final rule would not ``have 
substantial direct effects on the States, or on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government.''

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that OMB approve all collections of information by a federal agency 
from the public before they can be implemented. This final rule is 
projected to have no impact on current reporting and recordkeeping 
burden for manufacturers under the 340B Program. This final rule would 
result in no new reporting burdens. Comments are welcome on the 
accuracy of this statement.

    Dated: September 22, 2017.
George Sigounas,
Administrator, Health Resources and Services Administration.
Thomas E. Price,
Secretary, Department of Health and Human Services.
[FR Doc. 2017-20911 Filed 9-28-17; 8:45 am]
BILLING CODE 4165-15-P



                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                            45511

                                                  interest furthered by the request. The                  final rule to July 1, 2018 (82 FR 39553).             established in the NPRM and the
                                                  CSB ordinarily will presume that when                   HHS proposed this action to allow a                   reopened comment period announced
                                                  a news media requester has satisfied the                more deliberate process of considering                in the April 19, 2016 notice were
                                                  factors in paragraphs (k)(2)(i) and (ii) of             alternative and supplemental regulatory               considered in the development of the
                                                  this section, the request is not primarily              provisions and to allow for sufficient                final rule. The provisions of that final
                                                  in the commercial interest of the                       time for additional rulemaking. After                 rule were to be effective March 6, 2017;
                                                  requester. Disclosure to data brokers or                consideration of the comments received                however, HHS issued a subsequent final
                                                  others who merely compile and market                    on the proposed rule, HHS is delaying                 rule (82 FR 12508, March 6, 2017)
                                                  government information for direct                       the effective date of the January 5, 2017,            delaying the effective date to March 21,
                                                  economic return will not be presumed                    final rule, to July 1, 2018.                          2017, in accordance with a January 20,
                                                  to primarily serve the public interest.                 DATES: As of September 29, 2017, the                  2017, memorandum from the Assistant
                                                     (3) Where only some of the records to                effective date of the final rule published            to the President and Chief of Staff, titled
                                                  be released satisfy the requirements for                in the Federal Register (82 FR 1210,                  ‘‘Regulatory Freeze Pending Review.’’ 1
                                                  a waiver of fees, a waiver must be                      January 5, 2017) is further delayed to                In the January 5, 2017, final rule, HHS
                                                  granted for those records.                              July 1, 2018.                                         acknowledged that the effective date fell
                                                     (4) Requests for a waiver or reduction               FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                during the middle of a quarter and
                                                  of fees should be made when the request                 CAPT Krista Pedley, Director, Office of               stakeholders needed time to adjust
                                                  is first submitted to the CSB and should                Pharmacy Affairs, Healthcare Systems                  systems and update their policies and
                                                  address the criteria referenced above. A                Bureau, HRSA, 5600 Fishers Lane, Mail                 procedures. As such, HHS stated that it
                                                  requester may submit a fee waiver                       Stop 08W05A, Rockville, MD 20857, or                  intended to enforce the requirements of
                                                  request at a later time so long as the                  by telephone at 301–594–4353.                         the final rule at the start of the next
                                                  underlying record request is pending or                                                                       quarter, which began April 1, 2017.
                                                                                                          SUPPLEMENTARY INFORMATION:
                                                  on administrative appeal. When a                                                                                 After further consideration and to
                                                  requester who has committed to pay                      I. Background                                         provide affected parties sufficient time
                                                  fees subsequently asks for a waiver of                                                                        to make needed changes to facilitate
                                                                                                             On September 30, 2010, HHS
                                                  those fees and that waiver is denied, the                                                                     compliance, and because questions were
                                                                                                          published an advanced notice of
                                                  requester must pay any costs incurred                                                                         raised, HHS issued an interim final rule
                                                                                                          proposed rulemaking (ANPRM) in the
                                                  up to the date the fee waiver request                                                                         (82 FR 14332, March 20, 2017), to delay
                                                                                                          Federal Register, ‘‘340B Drug Pricing
                                                  was received.                                                                                                 the effective date of the final rule to May
                                                                                                          Program Manufacturer Civil Monetary
                                                                                                                                                                22, 2017, and solicited additional
                                                    Dated: September 25, 2017                             Penalties’’ (75 FR 57230, September 20,
                                                                                                                                                                comments on whether that date should
                                                  Kara Wenzel,                                            2010). HHS subsequently published a
                                                                                                                                                                be further extended to October 1, 2017.
                                                  Acting General Counsel, Chemical Safety and             notice of proposed rulemaking (NPRM)
                                                                                                                                                                HHS received 51 comments on the
                                                  Hazard Investigation Board.                             on June 17, 2015, to implement CMPs
                                                                                                                                                                interim final rule, some supporting and
                                                  [FR Doc. 2017–20853 Filed 9–28–17; 8:45 am]             for manufacturers that knowingly and
                                                                                                                                                                some opposing the delay of the effective
                                                                                                          intentionally charge a covered entity
                                                  BILLING CODE 6350–01–P                                                                                        date to May 22, 2017, or alternatively to
                                                                                                          more than the ceiling price for a covered
                                                                                                                                                                October 1, 2017. After careful
                                                                                                          outpatient drug; to provide clarity
                                                                                                                                                                consideration of the comments received,
                                                  DEPARTMENT OF HEALTH AND                                regarding the requirement that
                                                                                                                                                                HHS delayed the effective date of the
                                                  HUMAN SERVICES                                          manufacturers calculate the 340B
                                                                                                                                                                January 5, 2017, final rule to October 1,
                                                                                                          ceiling price on a quarterly basis; and to
                                                                                                                                                                2017 (82 FR 22893, May 19, 2017).
                                                  42 CFR Part 10                                          establish the requirement that a
                                                                                                                                                                   HHS subsequently published a
                                                                                                          manufacturer charge $.01 (penny
                                                  RIN 0906–AB11                                                                                                 proposed rule (82 FR 39553, August 21,
                                                                                                          pricing) for drugs when the ceiling price
                                                                                                                                                                2017) to further delay the effective date
                                                  340B Drug Pricing Program Ceiling                       calculation equals zero (80 FR 34583,
                                                                                                                                                                of the final rule to July 1, 2018. The
                                                  Price and Manufacturer Civil Monetary                   June 17, 2015). The public comment
                                                                                                                                                                further delay allows necessary time to
                                                  Penalties Regulation                                    period closed on August 17, 2015, and
                                                                                                                                                                fully consider the substantial questions
                                                                                                          HRSA received 35 comments. After
                                                                                                                                                                of fact, law, and policy raised by the
                                                  AGENCY:   Health Resources and Services                 review of the initial comments, HHS
                                                                                                                                                                rule, consistent with the aforementioned
                                                  Administration, HHS.                                    reopened the comment period (81 FR
                                                                                                                                                                ‘‘Regulatory Freeze Pending Review,’’
                                                  ACTION: Final rule; further delay of                    22960, April 19, 2016) to invite
                                                                                                                                                                memorandum. Requiring manufacturers
                                                  effective date.                                         additional comments on the following
                                                                                                                                                                to make targeted and potentially costly
                                                                                                          areas of the NPRM: 340B ceiling price
                                                                                                                                                                changes to pricing systems and business
                                                  SUMMARY:   The Health Resources and                     calculations that result in a ceiling price
                                                                                                                                                                procedures in order to comply with a
                                                  Services Administration (HRSA)                          that equals zero (penny pricing); the
                                                                                                                                                                rule that is under further consideration
                                                  administers section 340B of the Public                  methodology that manufacturers use
                                                                                                                                                                and for which substantive questions
                                                  Health Service Act (PHSA), known as                     when estimating the ceiling price for a
                                                                                                                                                                have been raised would be disruptive.
                                                  the ‘‘340B Drug Pricing Program’’ or the                new covered outpatient drug; and the
                                                                                                                                                                The further delay allows HHS to
                                                  ‘‘340B Program.’’ HRSA published a                      definition of the ‘‘knowing and
                                                                                                                                                                consider objections regarding the timing
                                                  final rule on January 5, 2017, that set                 intentional’’ standard to be applied
                                                                                                                                                                of the effective date and challenges
                                                  forth the calculation of the ceiling price              when assessing a CMP for
                                                                                                                                                                associated with complying with the
asabaliauskas on DSKBBXCHB2PROD with RULES




                                                  and application of civil monetary                       manufacturers that overcharge a covered
                                                                                                                                                                rule, as well as other objections to the
                                                  penalties. The final rule applied to all                entity. The comment period closed May
                                                                                                                                                                rule.
                                                  drug manufacturers that are required to                 19, 2016, and HHS received 72                            In addition, Executive Order 13765
                                                  make their drugs available to covered                   comments.                                             (82 FR 8351) titled, ‘‘Minimizing the
                                                  entities under the 340B Program. On                        On January 5, 2017, HHS published a
                                                  August 21, 2017, HHS solicited                          final rule in the Federal Register (82 FR               1 See: https://www.whitehouse.gov/the-press-
                                                  comments on further delaying the                        1210, January 5, 2017); comments from                 office/2017/01/20/memorandum-heads-executive-
                                                  effective date of the January 5, 2017,                  both the original comment period                      departments-and-agencies.



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                                                  45512            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  Economic Burden of the Patient                          takes effect will assist stakeholders in              reconsider the policies included in the
                                                  Protection and Affordable Care Act                      preparing to comply with these new                    final rule.
                                                  Pending Repeal,’’ specifically instructs                program requirements.                                    Responses: HHS intends to engage in
                                                  HHS and all other heads of executive                                                                          further rulemaking and believes that
                                                                                                          II. Analysis and Responses to Public                  this delay will provide HHS with time
                                                  offices to utilize all authority and
                                                                                                          Comments                                              to consider the substantial questions of
                                                  discretion available to delay the
                                                  implementation of certain provisions or                    In the proposed rule, HHS solicited                fact, law, and policy raised by the rule.
                                                  requirements of the Patient Protection                  comments regarding whether we should                     Comment: Several commenters
                                                  and Affordable Care Act.2 HHS based                     delay the January 5, 2017, final rule to              explained that a delay in the effective
                                                  the January 5, 2017, final rule on                      July 1, 2018. We received 97 comments                 date of the final rule is also necessary
                                                  changes made to the 340B Program by                     containing a number of issues from                    to align with the Administration
                                                  the Patient Protection and Affordable                   covered entities, manufacturers, and                  priorities of analyzing final, but not yet
                                                  Care Act. HHS proposed to delay the                     groups representing these stakeholders.               effective, regulations, and removing or
                                                  effective date of the January 5, 2017,                  In this final rule, we will only respond              minimizing unwarranted economic and
                                                  final rule to July 1, 2018, to allow for a              to comments related to whether HHS                    regulatory burdens related to the
                                                  sufficient amount of time to consider                   should delay the January 5, 2017, final               Affordable Care Act, the law that added
                                                  the regulatory burdens that may be                      rule to July 1, 2018. We did not consider             the provisions of the 340B statute that
                                                  posed by this final rule. HHS continues                 and do not address comments that                      are the subject of the final rule.
                                                  to examine important substantive issues                 raised issues beyond the narrow scope                    Response: HHS agrees with the
                                                  in matters covered by the rule and                      of the proposed rule, including                       commenters. Executive Order 13765
                                                  intends to engage in additional                         comments related to withdrawal of the                 instructs agencies to use discretion to
                                                  rulemaking on these issues.                             rule or comments related to broader                   delay the implementation of certain
                                                     HHS received a number of comments                    policy matters. However, HHS intends                  provisions of requirements of the
                                                  on the proposed rule both supporting                    to engage in further rulemaking on                    Patient Protection and Affordable Care
                                                  and opposing the delay of the effective                 issues covered in the January 5, 2017,                Act. As previously mentioned, HHS
                                                  date to July 1, 2018. After careful                     final rule. We have summarized the                    based the January 5, 2017, final rule on
                                                  consideration of the comments received,                 relevant comments received and                        changes made to the 340B Program by
                                                  HHS has decided to delay the effective                  provided our responses below.                         the Patient Protection and Affordable
                                                  date of the January 5, 2017, final rule to                 Comment: Some commenters                           Care Act. As such, HHS is complying
                                                  July 1, 2018. As HHS changed the                        supported HHS’s proposed delay of the                 with Executive Order 13765 to delay
                                                  effective date of the final rule to July 1,             effective date of the final rule until not            implementation on provisions of that
                                                  2018, enforcement will be delayed to                    only July 1, 2018, but until HHS fulfills             law that ‘‘. . . impose a fiscal burden on
                                                  July 1, 2018. HHS continues to believe                  its commitment to engage in additional                any State or a cost, fee, tax, penalty, or
                                                  that the delay of the effective date                    rulemaking that cures the substantive                 regulatory burden on individuals,
                                                  provides regulated entities sufficient                  legal and practical concerns with the                 families, healthcare providers, health
                                                  time to implement the requirements of                   final rule. These commenters                          insurers, patients, recipients of
                                                  the rule, as well as allowing a more                    recommend that HRSA tie the further                   healthcare services, purchasers of health
                                                  deliberate process of considering                       delay of the effective date of the final              insurance, or makers of medical devices,
                                                  alternative and supplemental regulatory                 rule to the completion of such                        products, or medications.’’ The policies
                                                  provisions, and to allow for sufficient                 rulemaking, as opposed to a certain                   finalized in the January 5, 2017, final
                                                  time for additional rulemaking.                         date.                                                 rule will require targeted and
                                                     Section 553(d) of the Administrative                    Response: HHS has decided to delay                 potentially costly changes to pricing
                                                  Procedure Act (APA) (5 U.S.C. 551 et                    the effective date to July 1, 2018, to                systems and business procedures for
                                                  seq.) requires that Federal agencies                    provide affected parties sufficient time              manufacturers affected by the rule.
                                                  provide at least 30 days after                          to make needed changes to facilitate                  Thus, HHS is delaying the effective date
                                                  publication of a final rule in the Federal              compliance and because HHS continues                  to July 1, 2018.
                                                  Register before making it effective,                    to examine important substantive issues                  Comment: Some commenters
                                                  unless good cause can be found not to                   arising from the January 5, 2017, final               recommend that HHS delay the effective
                                                  do so. HHS finds good cause for making                  rule. After reviewing the comments                    date of the final rule until HHS
                                                  this final rule effective less than 30 days             received from stakeholders regarding                  concurrently addresses 340B covered
                                                  after publication in the Federal Register               objections on the timing of the effective             entity compliance obligations and
                                                  given that failure to do so would result                date and challenges associated with                   penalties under the 340B statute, which
                                                  in the final rule published on January 5,               complying with the final rule, HHS has                is necessary to strengthen the integrity
                                                  2017, going into effect on October 1,                   determined that delaying the effective                of the 340B Program.
                                                  2017, for several weeks before a final                  date to July 1, 2018, is necessary to                    Response: HHS plans to issue separate
                                                  rule delaying the effective date until                  consider some of the issues raised. HHS               policy documents for the different areas
                                                  July 1, 2018, would go into effect. To                  believes that delaying the effective date             of the 340B program integrity provisions
                                                  preclude this uncertainty in the                        to July 1, 2018, provides sufficient time             in the 340B statute and disagrees with
                                                  marketplace and to ease the burdens of                  to address these issues and does not                  the commenters advising HHS to
                                                  stakeholders, HHS believes that a clear                 believe a further delay is necessary at               address these issues concurrently.
                                                                                                          this time.                                               Comment: Many commenters opposed
                                                  effective date is an important goal and
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                                                                                                             Comment: Some commenters stated                    delaying the effective date to July 1,
                                                  one that becomes particularly important
                                                                                                          that the January 5, 2017, final rule                  2018. Commenters recommended that
                                                  when it is paired with potential civil
                                                                                                          contains several policies that are                    HHS use its statutory rulemaking
                                                  monetary penalties. The additional time
                                                                                                          inconsistent with the 340B statute and                authority to balance the scales of
                                                  provided to the public before the rule
                                                                                                          imposes needless burdens on                           enforcement and oversight in the 340B
                                                    2 See: https://www.whitehouse.gov/the-press-          manufacturers. These commenters urge                  Program, and expressed concern that
                                                  office/2017/01/2/executive-order-minimizing-            HHS to delay the effective date to July               drug manufacturers have engaged in
                                                  economic-burden-patient-protection-and.                 1, 2018, and use the additional time to               discriminatory pricing strategies due to


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                                                                   Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations                                       45513

                                                  a lack of oversight and enforcement                     12866 on Regulatory Planning and                      of $100 million or more, and is,
                                                  with respect to manufacturer behavior.                  Review (September 30, 1993), Executive                therefore, not designated as an
                                                  They explained that various factors,                    Order 13563 on Improving Regulation                   ‘‘economically significant’’ rule under
                                                  including extensive data regarding                      and Regulatory Review (January 8,                     section 3(f)(1) of the Executive Order
                                                  overcharging covered entities, HHS’s                    2011), the Regulatory Flexibility Act                 12866. Therefore, the economic impact
                                                  inability to address overcharges, and                   (Pub. L. 96–354, September 19, 1980),                 of having no rule in place related to the
                                                  HHS’s admission that many                               the Unfunded Mandates Reform Act of                   policies addressed in the final rule is
                                                  manufacturers are still out of                          1995 (Pub. L. 104–4), Executive Order                 believed to be minimal, as the policies
                                                  compliance highlight the need for the                   13132 on Federalism (August 4, 1999),                 would not yet be required or
                                                  final rule to go into effect immediately.               the Congressional Review Act, and                     enforceable.
                                                  They further explained that the January                 Executive Order 13771 on Reducing                        Executive Order 13771, titled
                                                  5, 2017, final rule is critical to ensuring             Regulation and Controlling Regulatory                 ‘‘Reducing Regulation and Controlling
                                                  that drug manufacturers uphold the                      Costs (January 30, 2017).                             Regulatory Costs,’’ was issued on
                                                  intent of the 340B Program. The                                                                               January 30, 2017. This final rule is not
                                                                                                          Executive Orders 12866, 13563 and                     expected to be an EO 13771 regulatory
                                                  commenters also disagreed that ‘‘a more
                                                                                                          13771                                                 action because this final rule is not
                                                  deliberative process is needed’’ as there
                                                  have been multiple delays and                              Executive Orders 12866 and 13563                   significant under EO 12866.
                                                  stakeholders were given various                         direct agencies to assess all costs and
                                                                                                          benefits of available regulatory                      The Regulatory Flexibility Act (RFA)
                                                  opportunities to comment.
                                                     Response: HHS does not agree that                    alternatives and, if regulation is                       The Regulatory Flexibility Act (5
                                                  that we should enforce the final rule                   necessary, to select regulatory                       U.S.C. 601 et seq.) (RFA) and the Small
                                                  immediately. We are delaying the                        approaches that maximize net benefits                 Business Regulatory Enforcement and
                                                  effective date of the January 5, 2017,                  (including potential economic,                        Fairness Act of 1996, which amended
                                                  final rule to July 1, 2018, because the                 environmental, public health and safety               the RFA, require HHS to analyze
                                                  delay will provide stakeholders with                    effects, distributive impacts, and                    options for regulatory relief of small
                                                  additional time to come into compliance                 equity). Executive Order 13563 is                     businesses. If a rule has a significant
                                                  and provide time to consider the                        supplemental to and reaffirms the                     economic effect on a substantial number
                                                  substantial questions of fact, law, and                 principles, structures, and definitions               of small entities, the Secretary must
                                                  policy raised by the rule. The final rule               governing regulatory review as                        specifically consider the economic
                                                  does not represent the only method for                  established in Executive Order 12866,                 effect of the rule on small entities and
                                                  HHS to address manufacturer                             emphasizing the importance of                         analyze regulatory options that could
                                                  overcharges. In addition to the final                   quantifying both costs and benefits, of               lessen the impact of the rule. HHS will
                                                  rule, HHS performs audits of                            reducing costs, of harmonizing rules,                 use an RFA threshold of at least a 3
                                                  manufacturers, investigates all                         and of promoting flexibility. Section 3(f)            percent impact on at least 5 percent of
                                                  allegations of overcharging, and                        of Executive Order 12866 defines a                    small entities.
                                                  participates in settlements that have                   ‘‘significant regulatory action’’ as an                  For purposes of the RFA, HHS
                                                  returned millions of dollars to covered                 action that is likely to result in a rule:            considers all health care providers to be
                                                  entities. HHS believes that it would be                 (1) Having an annual effect on the                    small entities either by meeting the
                                                  disruptive to require stakeholders to                   economy of $100 million or more in any                Small Business Administration (SBA)
                                                  make potentially costly changes to                      1 year, or adversely and materially                   size standard for a small business, or by
                                                  pricing systems and business                            affecting a sector of the economy,                    being a nonprofit organization that is
                                                  procedures in order to comply with a                    productivity, competition, jobs, the                  not dominant in its market. The current
                                                  rule that is under further consideration                environment, public health or safety, or              SBA size standard for health care
                                                  and for which substantive questions                     State, local, or Tribal governments or                providers ranges from annual receipts of
                                                  have been raised.                                       communities (also referred to as                      $7 million to $35.5 million. As of
                                                     While stakeholders had the                           ‘‘economically significant’’); (2) creating           January 1, 2017, over 12,000 covered
                                                  opportunity to provide comments on the                  a serious inconsistency or otherwise                  entities participate in the 340B Program,
                                                  final rule, the 340B Program is a                       interfering with an action taken or                   which represent safety-net health care
                                                  complex program that is affected by                     planned by another agency; (3)                        providers across the country. HHS has
                                                  changes in other areas of health care.                  materially altering the budgetary                     determined, and the Secretary certifies
                                                  HHS has determined that this                            impacts of entitlement grants, user fees,             that this final rule will not have a
                                                  complexity and changing environment                     or loan programs or the rights and                    significant impact on the operations of
                                                  warrants further review of the final rule.              obligations of recipients thereof; or (4)             a substantial number of small
                                                     Comment: Many commenters                             raising novel legal or policy issues                  manufacturers; therefore, we are not
                                                  supported further delaying the effective                arising out of legal mandates, the                    preparing an analysis of impact for this
                                                  date to July 1, 2018, at a minimum, and                 President’s priorities, or the principles             RFA. HHS estimates that the economic
                                                  agreed with HHS that more time was                      set forth in the Executive Order.                     impact on small entities and small
                                                  needed for stakeholders to come into                       A regulatory impact analysis (RIA)                 manufacturers will be minimal.
                                                  compliance and to consider substantial                  must be prepared for major rules with
                                                                                                          economically significant effects ($100                Unfunded Mandates Reform Act
                                                  questions of fact, law and policy raised
                                                  by the January 5, 2017, final rule.                     million or more in any 1 year), and a                   Section 202(a) of the Unfunded
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                                                     Response: HHS agrees with the                        ‘‘significant’’ regulatory action is subject          Mandates Reform Act of 1995 requires
                                                  commenters and will delay the effective                 to review by the Office of Management                 that agencies prepare a written
                                                  date of the January 5, 2017, final rule to              and Budget (OMB) and is therefore, not                statement, which includes an
                                                  July 1, 2018.                                           a major rule under the Congressional                  assessment of anticipated costs and
                                                                                                          Review Act.                                           benefits, before proposing ‘‘any rule that
                                                  III. Regulatory Impact Analysis                            HHS does not believe that a delay of               includes any Federal mandate that may
                                                     HHS examined the effects of this final               the effective date of the January 5, 2017,            result in the expenditure by State, local,
                                                  rule as required by Executive Order                     final rule will have an economic impact               and Tribal governments, in the


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                                                  45514            Federal Register / Vol. 82, No. 188 / Friday, September 29, 2017 / Rules and Regulations

                                                  aggregate, or by the private sector, of                    S5.3.11 Dynamic ozone test. A                      impact review (RIR) are available via the
                                                  $100 million or more (adjusted annually                 hydraulic brake hose shall not show                   Federal e-Rulemaking Portal: http://
                                                  for inflation) in any one year.’’ In 2017,              cracks visible without magnification                  www.regulations.gov, docket NOAA–
                                                  that threshold is approximately $148                    after having been subjected to a 48-hour              NMFS–2017–0024 or contact with the
                                                  million. HHS does not expect this rule                  dynamic ozone test (S6.9).                            Regional Administrator, Barry A. Thom,
                                                  to exceed the threshold.                                *     *     *    *    *                               NMFS West Coast Region, 1201 NE
                                                                                                          [FR Doc. 2017–21085 Filed 9–28–17; 8:45 am]           Lloyd Blvd., Suite 1100, Portland, OR
                                                  Executive Order 13132—Federalism
                                                                                                          BILLING CODE 1301–00–D                                97232–1274, or
                                                     HHS has reviewed this final rule in                                                                        RegionalAdministrator.WCRHMS@
                                                  accordance with Executive Order 13132                                                                         noaa.gov.
                                                  regarding federalism, and has                           DEPARTMENT OF COMMERCE                                FOR FURTHER INFORMATION CONTACT:
                                                  determined that it does not have                                                                              Taylor Debevec, NMFS at 562–980–
                                                  ‘‘federalism implications.’’ This final                 National Oceanic and Atmospheric                      4066.
                                                  rule would not ‘‘have substantial direct                Administration
                                                  effects on the States, or on the                                                                              SUPPLEMENTARY INFORMATION:
                                                  relationship between the national                       50 CFR Part 300                                       Background on the IATTC
                                                  government and the States, or on the
                                                  distribution of power and                               [Docket No. 170815764–7877–01]                          The United States is a member of the
                                                  responsibilities among the various                      RIN 0648–BH12
                                                                                                                                                                IATTC, which was established under
                                                  levels of government.’’                                                                                       the 1949 Convention for the
                                                                                                          International Fisheries; Pacific Tuna                 Establishment of an Inter-American
                                                  Paperwork Reduction Act                                 Fisheries; Revised 2017 Fishing                       Tropical Tuna Commission. In 2003, the
                                                     The Paperwork Reduction Act of 1995                  Restrictions for Tropical Tuna in the                 IATTC took the first step to dramatically
                                                  (44 U.S.C. 3507(d)) requires that OMB                   Eastern Pacific Ocean                                 revise the 1949 Convention by adopting
                                                  approve all collections of information                                                                        the Convention for the Strengthening of
                                                                                                          AGENCY:  National Marine Fisheries                    the IATTC Established by the 1949
                                                  by a federal agency from the public                     Service (NMFS), National Oceanic and
                                                  before they can be implemented. This                                                                          Convention between the United States
                                                                                                          Atmospheric Administration (NOAA),                    of America and the Republic of Costa
                                                  final rule is projected to have no impact               Commerce.
                                                  on current reporting and recordkeeping                                                                        Rica (Antigua Convention), which did
                                                                                                          ACTION: Final rule.                                   not enter into force until 2010 when the
                                                  burden for manufacturers under the
                                                  340B Program. This final rule would                                                                           requite number of members agreed to
                                                                                                          SUMMARY:    NMFS is issuing regulations
                                                  result in no new reporting burdens.                                                                           the revisions. After the Antigua
                                                                                                          under the Tuna Conventions Act to
                                                  Comments are welcome on the accuracy                                                                          Convention had entered into force in
                                                                                                          implement amendments to Resolution
                                                  of this statement.                                                                                            2010, the United States acceded to the
                                                                                                          C–17–01 (Conservation of Tuna in the
                                                                                                                                                                Antigua Convention on February 24,
                                                    Dated: September 22, 2017.                            Eastern Pacific Ocean During 2017) per
                                                                                                                                                                2016. The full text of the Antigua
                                                  George Sigounas,                                        Resolution C–17–02 (Conservation
                                                                                                                                                                Convention is available at: https://
                                                  Administrator, Health Resources and Services            Measures for Tropical Tunas in the
                                                                                                                                                                www.iattc.org/PDFFiles2/Antigua_
                                                  Administration.                                         Eastern Pacific Ocean During 2018–
                                                                                                                                                                Convention_Jun_2003.pdf.
                                                  Thomas E. Price,                                        2020 and Amendment to Resolution C–                     The IATTC consists of 21 member
                                                  Secretary, Department of Health and Human
                                                                                                          17–01) which was adopted by the Inter-                nations and four cooperating non-
                                                  Services.                                               American Tropical Tuna Commission                     member nations and facilitates scientific
                                                  [FR Doc. 2017–20911 Filed 9–28–17; 8:45 am]
                                                                                                          (IATTC or Commission) in July 2017.                   research into, as well as the
                                                                                                          Applicable to the purse seine fleet                   conservation and management of, tuna
                                                  BILLING CODE 4165–15–P
                                                                                                          fishing for tropical tunas (bigeye,                   and tuna-like species in the IATTC
                                                                                                          yellowfin, and skipjack tuna) in the                  Convention Area. The IATTC
                                                                                                          eastern Pacific Ocean (EPO) and only for              Convention Area is defined as waters of
                                                  DEPARTMENT OF TRANSPORTATION                            the remainder of the 2017 calendar year,              the EPO within the area bounded by the
                                                  National Highway Traffic Safety                         the amendments to Resolution C–17–01                  west coast of the Americas and by 50°
                                                  Administration                                          remove the total allowable catches                    N. latitude, 150° W. longitude, and 50°
                                                                                                          (TACs) for bigeye tuna (BET) and                      S. latitude. The IATTC maintains a
                                                  49 CFR Part 571                                         yellowfin tuna (YFT), and replace them                scientific research and fishery
                                                                                                          with an extension in the purse seine                  monitoring program and regularly
                                                  Federal Motor Vehicle Safety                            closure period from 62 days to 72 days.               assesses the status of tuna, sharks, and
                                                  Standards                                               Additionally, to ensure that the time/                billfish stocks in the EPO to determine
                                                                                                          area closure, known as the corralito,                 appropriate catch limits and other
                                                  CFR Correction                                          does not overlap with the extended                    measures deemed necessary to promote
                                                    In Title 49 of the Code of Federal                    closure periods, the amendments also                  sustainable fisheries and prevent the
                                                  Regulations, Parts 400 to 571, revised as               shift the dates for the corralito closure.            overexploitation of these stocks.
                                                  of October 1, 2016, on page 319, in                     This rule is necessary for the
                                                  § 571.106, standard S5.3.11 is reinstated               conservation of tropical tuna stocks in               International Obligations of the United
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                                                  to read as follows:                                     the EPO and for the United States to                  States Under the Antigua Convention
                                                                                                          satisfy its obligations as a member of the              As a Party to the Antigua Convention
                                                  § 571.106   Standard No. 106; Brake hoses.              IATTC.                                                and a member of the IATTC, the United
                                                  *     *    *     *   *                                  DATES: This final rule is effective                   States is legally bound to implement
                                                    S5. Requirements—hydraulic brake                      September 29, 2017.                                   decisions of the IATTC. The Tuna
                                                  hose, brake hose assemblies, and brake                  ADDRESSES: Copies of supporting                       Conventions Act (16 U.S.C. 951 et seq.)
                                                  hose end fittings.                                      documents that were prepared for this                 directs the Secretary of Commerce, in
                                                  *     *    *     *   *                                  final rule, including the regulatory                  consultation with the Secretary of State


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Document Created: 2017-09-29 03:27:10
Document Modified: 2017-09-29 03:27:10
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; further delay of effective date.
DatesAs of September 29, 2017, the effective date of the final rule published in the Federal Register (82 FR 1210, January 5, 2017) is further delayed to July 1, 2018.
ContactCAPT Krista Pedley, Director, Office of Pharmacy Affairs, Healthcare Systems Bureau, HRSA, 5600 Fishers Lane, Mail Stop 08W05A, Rockville, MD 20857, or by telephone at 301- 594-4353.
FR Citation82 FR 45511 
RIN Number0906-AB11

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