83_FR_17405 83 FR 17329 - Controlled Substances Quotas

83 FR 17329 - Controlled Substances Quotas

DEPARTMENT OF JUSTICE
Drug Enforcement Administration

Federal Register Volume 83, Issue 76 (April 19, 2018)

Page Range17329-17333
FR Document2018-08111

The Drug Enforcement Administration (DEA) is publishing this proposed rule to strengthen controls over diversion of controlled substances and make other improvements in the quota management regulatory system for the production, manufacturing, and procurement of controlled substances.

Federal Register, Volume 83 Issue 76 (Thursday, April 19, 2018)
[Federal Register Volume 83, Number 76 (Thursday, April 19, 2018)]
[Proposed Rules]
[Pages 17329-17333]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-08111]


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DEPARTMENT OF JUSTICE

Drug Enforcement Administration

21 CFR Part 1303

[Docket No. DEA-480]
RIN 1117-AB48


Controlled Substances Quotas

AGENCY: Drug Enforcement Administration, Department of Justice.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Drug Enforcement Administration (DEA) is publishing this 
proposed rule to strengthen controls over diversion of controlled 
substances and make other improvements in the quota management 
regulatory system for the production, manufacturing, and procurement of 
controlled substances.

DATES: Written comments must be postmarked, and electronic comments 
must be sent, on or before May 4, 2018. Comments received by mail will 
be considered timely if they are postmarked on or before the last day 
of the comment period. The electronic Federal Docket Management System 
will accept electronic comments until Midnight Eastern Time at the end 
of that day.

ADDRESSES: To ensure proper handling of comments, please reference 
``Docket No. DEA-480'' on all correspondence, including any attachment. 
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 to 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 received a Comment Tracking Number, your comment has been 
successfully submitted and there is no need to resubmit the same 
comment. Paper comments that duplicate the electronic submission are 
not necessary and are discouraged. Should you, however, 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, Attention: 
DEA Federal Register Representative/DRW, 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-
8953.

SUPPLEMENTARY INFORMATION: 

Posting of Public Comments

    Please note that all comments received are considered part of the 
public record. They will, unless reasonable cause is given, be made 
available by the Drug Enforcement Administration (DEA) for public 
inspection online at http://www.regulations.gov and in DEA's public 
docket. Such information includes personal identifying information 
(such as your name, address, etc.) voluntarily submitted by the 
commenter.
    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 posted online or made available in the public docket, you must 
include the phrase ``PERSONAL IDENTIFYING INFORMATION'' in the first 
paragraph of your comment. You must also place all the personal 
identifying information you do not want posted online or made available 
in the public docket 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 posted online or made available 
in the public docket, you must include the phrase ``CONFIDENTIAL 
BUSINESS INFORMATION'' in the first paragraph of your comment. You must 
also prominently identify confidential business information to be 
redacted within the comment. If a comment has so much confidential 
business information that it cannot be effectively redacted, all or 
part of that comment may not be posted online or made available in the 
public docket.
    Personal identifying information and confidential business 
information identified and located as set forth above will be redacted 
and the comment, in redacted form, will be posted online and placed in 
DEA's public docket file. Please note that the Freedom of Information 
Act applies to all comments received. If you wish to inspect the 
agency's public docket file in person by appointment, please see the 
FOR FURTHER INFORMATION paragraph.

Legal Authority

    Provisions of the Controlled Substances Act, 21 U.S.C. 801 et seq., 
authorize the Attorney General to issue rules and regulations relating 
to registration and control of the manufacture, distribution, and 
dispensing of controlled substances and listed chemicals. 21 U.S.C. 
821. Pursuant to this authority, the Attorney General, through the Drug 
Enforcement Administration (DEA), has issued and administers 
regulations setting aggregate production quotas for each basic class of 
controlled substances in schedules I and II, manufacturing quotas for 
individual manufacturers, and procurement quotas for manufacturers to 
produce other controlled substances or to convert the substances into 
dosage form. See 21 CFR part 1303.
    The current regulations, issued initially in 1971, need to be 
updated to reflect changes in the manufacture of controlled substances, 
changing patterns of substance abuse and markets in illicit drugs, and 
the challenges presented by the current national crisis of controlled 
substance abuse. This proposed rule modifies the regulations to 
strengthen controls over diversion--that is, the redirection of 
controlled substances which may have lawful uses into illicit 
channels--and makes other improvements in the controlled substance 
regulatory quota system.
    The quota process, in general terms, is a critical element of the 
Controlled Substances Act's regulatory system that seeks to prevent or 
limit diversion by preventing the accumulation of controlled substances 
in amounts exceeding legitimate need. The measures the proposed rule 
adopts to strengthen the system include authorizing the requisition 
from quota applicants of additional information helpful in detecting 
and preventing diversion, and ensuring that DEA's determinations 
regarding the appropriate quotas are adequately informed by input from 
other federal agencies, from the states, and from quota applicants.

[[Page 17330]]

Section-by-Section Analysis

Section 1303.11--Aggregate Production Quotas

    Section 1303.11 in the existing regulations directs the 
Administrator of DEA to determine the total quantity of each basic 
class of controlled substance listed in schedule I or II needed in the 
calendar year for the medical, scientific, research and industrial 
needs of the United States, for lawful export, and for the 
establishment and maintenance of reserve stocks. Section 1303.11(b)(1)-
(4) identifies a number of factors that are categorically to be 
considered in determining aggregate production quotas--relating to 
total net disposal, net disposal trends, inventories and inventory 
trends, and demand--followed by a final catchall factor, (5), regarding 
factors to be considered as the Administrator finds relevant. The 
proposed rule would make two additions to the list of factors that must 
regularly be considered in setting the aggregate production quotas 
because of their importance.
    First, it would add to the list the extent of any diversion of the 
controlled substance in the class. This is relevant to ensure that the 
allowed aggregate production quota is limited to that needed to provide 
adequate supplies for the United States' legitimate needs.
    Second, the proposed rule would amend the list of factors to be 
considered in establishing these quotas to include relevant information 
from the Department of Health and Human Services (HHS) and its 
components, including the Food and Drug Administration (FDA), the 
Centers for Disease Control and Prevention (CDC), and the Centers for 
Medicare and Medicaid Services (CMS), as well as relevant information 
obtained from the states. Pursuant to 42 U.S.C. 242(a), HHS studies the 
use and misuse of controlled substances and provides, through the FDA, 
an annual report to the Attorney General concerning the quantities of 
controlled substances necessary to support the medicinal needs of the 
United States. The CDC and the CMS may also have relevant information, 
including information about the prevalence and patterns of drug abuse 
and the diversion of controlled substances to illicit use. The 
amendment would ensure that information will be requested from the 
relevant HHS components and will be considered in setting the aggregate 
production quotas.
    Regarding the states, the proposed rule would provide that the 
Administrator will consider information from the states in setting the 
aggregate production quotas and make additional changes enhancing their 
role in Sec.  1303.11(c). The states are critically situated to provide 
information about the extent of legitimate and illegitimate use of 
controlled substances because of their responsibilities for drug 
enforcement within their jurisdictions, including through the 
Prescription Drug Monitoring Programs, their responsibilities for 
administration of their health care systems, and their responsibilities 
for dealing with the human and social costs of drug abuse and 
diversion. States may have relevant information indicating that 
individual procurement quota requests reflect quantities which will in 
fact be diverted to illicit use, which may in turn yield an exaggerated 
picture of the aggregate production quotas needed for legitimate 
purposes. The proposed rule accordingly includes amendments to Sec.  
1303.11(c) which provide for (i) transmitting notices of proposed 
aggregate production quotas, and final aggregate production quota 
orders, to the state attorney general, and (ii) holding a hearing if 
necessary to resolve an issue of material fact raised by a state's 
objection to a proposed aggregate production quota as excessive in 
relation to legitimate United States need.

Section 1303.12--Procurement Quotas

    Section 1303.12 in the regulations directs the Administrator to 
issue procurement quotas for manufacturers that use controlled 
substances to put them into dosage form or to make other substances. 
The section requires applicants for procurement quotas to state what 
basic class of controlled substance is needed, the purpose or purposes 
for which the class is desired, the quantity desired for each purpose 
during the next calendar year, and the quantities used and estimated to 
be used for each purpose during the current and preceding two calendar 
years. If the applicant's purpose is to manufacture another basic class 
of controlled substance, the applicant also must state the quantity of 
the other basic class that the applicant has applied to manufacture, 
and the quantity of the first basic class necessary to manufacture a 
specified quantity of the second basic class.
    The proposed rule would amend Sec.  1303.12(b) to clarify that the 
Administrator may require additional comparable information from 
applicants that may help to detect or prevent diversion, including 
customer identities and amounts of the controlled substance sold to 
each customer.

Section 1303.13--Adjustments of Aggregate Production Quotas

    Section 1303.13 authorizes the Administrator, at any time, to 
increase or reduce the aggregate production quotas for basic classes of 
controlled substances that were previously fixed pursuant to Sec.  
1303.11. The proposed rule would make amendments to Sec.  1303.13 that 
parallel some of the amendments made to Sec.  1303.11. Specifically, it 
includes changes in the extent of any diversion of the controlled 
substance among the factors to be considered in adjusting the aggregate 
production quota, requires transmission of adjustment notices and final 
adjustment orders to the state attorney general, and provides for a 
hearing if necessary to resolve an issue of material fact raised by a 
state's objection to a proposed adjusted quota as excessive for 
legitimate United States need.

Section 1303.22--Procedure for Applying for Individual Manufacturing 
Quotas

    The proposed rule would amend Sec.  1303.22 to clarify that the 
Administrator may require additional information from individual 
manufacturing quota applicants that may help to detect or prevent 
diversion, including customer identities and amounts of the controlled 
substance sold to each customer.

Section 1303.23--Procedures for Fixing Individual Manufacturing Quotas

    The proposed rule would amend Sec.  1303.23 to provide that the 
factors the Administrator may deem relevant in fixing individual 
manufacturing quotas include the extent and risk of diversion of 
controlled substances.

Section 1303.32--Purpose of Hearing

    The proposed rule includes an amendment relating to hearings in 
Sec.  1303.32(a), conforming to the amendments to Sec. Sec.  1303.11(c) 
and 1303.13(c) concerning hearings based on state objections.

Other Matters

    In addition to the significant changes discussed above, the 
proposed rule would correct a number of typographic errors in the 
current regulations.

Request for Comments

    Some of the proposed rule's provisions, including those relating to 
seeking information from other federal agencies and the states, and 
those relating to the holding of hearings based on state objections, 
are exempt from the notice and comment requirements of the 
Administrative Procedure Act as ``rules

[[Page 17331]]

of agency organization, procedure, or practice.'' 5 U.S.C. 553(b)(A). 
Regarding the other matters addressed in the proposed rule, DEA 
particularly seeks comments on the provisions regarding the factors the 
Administrator shall consider when adjusting the aggregate production 
quotas (21 CFR 1303.13(b)(1)) and the additional information the 
Administrator may require from applicants (21 CFR 1303.12(b) and 21 CFR 
1303.22).
    Insofar as soliciting public comment is necessary or useful, DEA 
publishes this proposed rule with a 15-day public comment period. This 
shortened period for public comment is necessary as an element in 
addressing the largest drug crisis in the nation's history. HHS and DEA 
have developed extensive information concerning the nature and 
magnitude of the crisis. See www.hhs.gov/about/news/2017/10/26/hhs-acting-secretary-declares-public-health-emergency-address-national-opioid-crisis.html; www.cdc.gov/drugoverdose/data (CDC Epidemic Data); 
www.cdc.gov/nchs/products/databriefs/db294.htm (CDC Overdose Data); 
www.samhsa.gov/data/sites/default/files/NSDUH-FFR1-2016/NSDUH-FFR1-2016.pdf (SAMHSA Data); www.drugabuse.gov/drugs-abuse/opioids/opioid-overdose-crisis (NIDA Data); Drug Enforcement Administration, 2017 
National Drug Threat Assessment (Oct. 2017), at v, 25-43 (2017 DEA 
Data). Salient facts include the following:
    Drug overdoses are now the leading cause of injury-related death in 
the United States, eclipsing deaths from motor vehicle accidents, 
firearms, homicide, or suicide. There were more than 63,600 overdose 
deaths in 2016, with opioids as the main driver of such deaths. 
Overdoses involving opioids killed more than 42,000 people in 2016, 
with prescription opioids accounting for 40% of the total. Opioid 
overdose deaths were more than five times higher in 2016 than 1999. 
2017 DEA Data at v, 25; CDC Overdose Data; CDC Epidemic Data.
    The misuse of controlled prescription drugs, and particularly 
prescription opioids, has been central to this deadly epidemic. In 
2016, of Americans aged 12 or older, an estimated 3.3 million had 
misused prescription pain relievers during the preceding month and 
approximately 11.8 million had misused opioids in the past year. 
Prescription opioid misuse is more common than use of any category of 
illicit drug in the United States except for marijuana. SAMHSA Data at 
14, 16, 20-21.
    Users may be initiated into a life of substance abuse and 
dependency after first obtaining these drugs from their health care 
providers or without cost from the family medicine cabinet or from 
friends. Once ensnared, dependency on potent and dangerous street drugs 
may ensue. About 80% of heroin users first misused prescription 
opioids. Thus, it may be inferred that current users of heroin and 
fentanyl largely entered the gateway as part of the populations who 
previously misused prescription opioids. See NIDA Data.
    Street prices for controlled prescription opioids are typically 5 
to 10 times their retail value, with steady increases with the relative 
strength of the drug, fueling the market for prescription medications 
diverted into illegal channels. For example, hydrocodone combination 
products--a schedule II prescription drug and also the most prescribed 
controlled prescription drug in the country--can be purchased for $5 to 
$7 per tablet on the street. Slightly stronger drugs like oxycodone 
combined with acetaminophen (e.g., Percocet) can be purchased for $7 to 
$10 per tablet on the street. Even stronger prescription drugs are sold 
for as much as $1 per milligram (mg). For example, 30 mg oxycodone 
(immediate release) and 30 mg oxymorphone (extended release) cost $30 
to $40 per tablet on the street. Due in part to the large number of 
people who abuse licit controlled prescription drugs, other opioids are 
now being disguised and sold as controlled prescription drugs.
    The economic impact of prescription drug abuse was estimated to be 
$78.5 billion in 2013. Specific costs included increased health care 
and substance abuse treatment costs, criminal justice costs, and 
employment-related costs including lost earnings from premature death, 
reduced compensation, and lost employment. These costs, largely 
reflecting prescription opioid abuse, represent a substantial and 
growing economic burden on society. 2017 DEA Data at 40.
    This proposed rule's reforms, which will help to control the 
diversion of controlled substances feeding the crisis described above, 
must be implemented without delay to permit timely action by the Drug 
Enforcement Administration, informed by adequate input from 
manufacturers, other federal agencies, and the states. The affected 
determinations include the following:
    Section 1303.11 in the regulations requires the DEA Administrator 
to publish notice of the proposed aggregate production quotas for 2019 
well in advance in 2018. The proposed rule's amendments to Sec.  
1303.11 would expand the factors to be considered by the Administrator 
to include the extent of diversion and enhance the input and role of 
other federal agencies and the states in the quota-setting process. 
Having these reforms in place expeditiously will facilitate the sound 
proposal and determination of aggregate production quotas for 2019.
    Section 1303.12 requires the Administrator to set manufacturers' 
procurement quotas for 2019 well in advance in 2018; manufacturers' 
applications were due by April 1, 2018. The proposed rule would amend 
Sec.  1303.12 to allow the Administrator to require procurement quota 
applicants to provide additional information that may help to detect or 
prevent the diversion of controlled substances ostensibly obtained for 
legitimate dosage form manufacturing. Having this reform in place 
expeditiously will facilitate the sound determination of procurement 
quotas for 2019 and help to ensure that controlled substances sought 
for dosage form manufacturing will not be diverted.
    Section 1303.13 allows the Administrator to increase or reduce 
aggregate production quotas at any time. The proposed amendments would 
expand the factors to be considered by the Administrator in adjusting 
aggregate production quotas to include changes in the extent of 
diversion and make other changes to enhance the input and role of the 
states in the aggregate production quota adjustment process. Having 
these reforms in place expeditiously, as well as the amendments to 
other sections authorizing the requisition of more information from 
manufacturers bearing on the extent of diversion, will facilitate the 
sound determination of aggregate production quota adjustments by the 
Administrator, which may be undertaken at any time.
    Sections 1303.22 and 1303.23 require the Administrator to set 
individual manufacturing quotas for 2019 well in advance in 2018, based 
on applications the manufacturers must submit by May 1, 2018. The 
proposed rule's amendments to these sections would authorize the 
Administrator to require applicants to provide additional information 
that may help to detect or prevent diversion, and add the extent and 
risk of diversion to the factors the Administrator may deem relevant in 
fixing individual manufacturing quotas. Having these reforms in place 
expeditiously will facilitate the sound determination of the individual 
manufacturing quotas for 2019.
    In sum, the death of over 63,600 Americans from drug overdoses in 
2016, and the other human, social, and

[[Page 17332]]

economic costs detailed above, make imperative the immediate use of all 
available tools to prevent the diversion of controlled substances. 
Delay in the finalization and implementation of this proposed rule 
would impede putting into effect the diversion countermeasures it 
authorizes, which will help to stem a source of the flow of controlled 
substances with legitimate uses into illicit channels. Such delay would 
prevent in the meantime the alleviation of the toll on human life and 
health, and the devastating social and economic costs, which shortfalls 
in the existing regulations facilitate.

Regulatory Flexibility Act

    The Administrator, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 601-612), has reviewed this proposed rule and by 
approving it certifies that the rule will not have a significant 
economic impact on a substantial number of small entities.
    The DEA estimates that 325 manufacturers may be affected by the 
proposed rule, of which 301 manufacturers (92.6% of the total) are 
small entities. There will not be a significant economic impact on a 
substantial number of these small entities or any others because, as 
the ensuing certifications discuss, any overall cost of the rule is not 
significant.

Executive Orders 12866, 13563, and 13771--Regulatory Planning and 
Review, and Reducing Regulation and Controlling Regulatory Costs

    This regulation has been drafted and reviewed in accordance with 
Executive Order 12866, ``Regulatory Planning and Review,'' section 
1(b), Principles of Regulation, and Executive Order 13563, ``Improving 
Regulation and Regulatory Review.'' DEA has determined that this 
proposed rule is not a ``significant regulatory action'' under 
Executive Order 12866, section 3(f). The DEA analyzed the economic 
impact of each provision of this proposed rule. Section 1303.11 would 
be amended to make two additions to the list of factors to be 
considered by the Administrator in setting the aggregate production 
quotas. First, it would add the extent of any diversion of the 
controlled substance in the class. Second, it would add relevant 
information from HHS and its components, as well as from the states. 
The DEA has always considered any information obtained from other 
federal and state government agencies when fixing the aggregate 
production quotas for a controlled substance. While the DEA may receive 
additional information that is valuable in detecting and preventing 
diversion, the DEA has no reason to believe that there will be adverse 
economic impact or other consequences sufficient to implicate Executive 
Order (E.O.) 12866.
    Additionally, sections 1303.11 and 1303.13 would be amended to 
require the DEA to transmit copies of aggregate production quotas and 
any adjustments to those quotas published in the Federal Register 
directly to state attorney general. While the DEA anticipates some 
labor burden to transmit aggregate production quota notices and orders 
to each state attorney general, the DEA estimates that this activity 
will result in a minimal yearly cost to the DEA and that the DEA has 
sufficient resources to absorb this minimal cost.
    Additionally, sections 1303.11, 1303.13, and 1303.32 would be 
amended to explicitly state that the DEA Administrator shall hold a 
hearing if he or she determines it is necessary to resolve an issue of 
material fact raised by a state objecting to the proposed quantity for 
the class as excessive for legitimate United States need. The estimated 
yearly cost of this revision will be dependent on the amount of 
hearings the DEA Administrator determines to be necessary to resolve an 
issue of material fact raised by a state regarding the aggregate 
production quota. Hearings regarding aggregate production quotas are 
infrequent and the DEA estimates that hearings of this type will 
continue to be infrequent under this proposed rule. For these reasons, 
the DEA does not expect a material increase in the number of hearings 
or in the associated costs to DEA or the states.
    Sections 1303.12 and 1303.22 would be amended to explicitly state 
that the Administrator may require additional information from an 
individual manufacturing or procurement quota applicant, including 
customer identities and amounts of controlled substances sold to each 
of their customers. Currently, the DEA can and does request additional 
information of this nature from quota applicants if deemed necessary. 
While affording the Administrator express regulatory authority to 
require such information may result in the receipt of additional 
information that is valuable in detecting and preventing diversion, it 
is not expected that the difference will have adverse economic impact 
or other consequences sufficient to implicate E.O. 12866.
    Sections 1303.11, 1303.13, and 1303.23 would be amended to add the 
requirement that DEA consider diversion of a controlled substance when 
fixing aggregate production quotas, adjusting aggregate production 
quotas, and fixing individual manufacturing quotas. When fixing and 
adjusting the aggregate production quota, or fixing an individual 
manufacturing quota for a controlled substance, the DEA has always 
considered all available information regarding the diversion of that 
controlled substance. While the proposed rule's amendments, as 
discussed above, may result in the receipt and consideration of 
additional information relating to diversion, it is not expected that 
the difference will have adverse economic impact or other consequences 
sufficient to implicate E.O. 12866.
    This proposed rule is not expected to be an E.O. 13771 regulatory 
action because this proposed rule is not significant under E.O. 12866.

Executive Order 13132--Federalism

    This regulation will not have substantial direct effects on the 
states, on the relationship between the national Government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this proposed rule does not have 
sufficient federalism implications to warrant the preparation of a 
federalism assessment.

Executive Order 12988--Civil Justice Reform

    This regulation meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988.

Paperwork Reduction Act

    This proposed rule codifies current agency practice under existing 
approved information collections, and does not impose new information 
collection requirements under the Paperwork Reduction Act of 1995, 44 
U.S.C. 3501-3521.

Unfunded Mandates Reform Act of 1995

    This proposed rule will not result in the expenditure by State, 
local and tribal governments, in the aggregate, or by the private 
sector, of $100 million or more in any one year, and it will not 
significantly or uniquely affect small governments. Therefore, no 
actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Congressional Review Act

    This rulemaking is not a major rule as defined by section 251 of 
the Congressional Review Act. 5 U.S.C. 804. This proposed rule will not 
result in an

[[Page 17333]]

annual effect on the economy of $100 million or more; a major increase 
in costs or prices; or significant adverse effects on competition, 
employment, investment, productivity, or innovation, or on the ability 
of United States-based enterprises to compete with foreign-based 
enterprises in domestic and export markets.

List of Subjects in 21 CFR Part 1303

    Administrative practice and procedure, Drug traffic control.

    Accordingly, for the reasons stated in the preamble, part 1303 of 
title 21 of the Code of Federal Regulations is proposed to be amended 
as follows:

PART 1303--QUOTAS

0
1. The authority citation for part 1303 continues to read as follows:

    Authority:  21 U.S.C. 821, 826, 871(b).

0
2. In Sec.  1303.11:
0
a. Remove the word ``and'' at the end of paragraph (b)(4).
0
b. Redesignate paragraph (b)(5) as paragraph (b)(7).
0
c. Add new paragraphs (b)(5) and (6).
0
d. In paragraph (c), add the phrase ``and transmitted to each state 
attorney general'' before the period in the second sentence, add the 
phrase ``except that the Administrator shall hold a hearing if he 
determines it is necessary to resolve an issue of material fact raised 
by a state objecting to the proposed quantity for the class as 
excessive for legitimate United States need'' before the period in the 
fourth sentence, remove the word ``such'' in the fifth sentence, add 
the phrase ``, the Administrator'' before ``shall issue'' in the sixth 
sentence, and add the phrase ``and transmitted to each state attorney 
general'' before the period in the final sentence.
    The additions read as follows:


Sec.  1303.11   Aggregate production quotas.

* * * * *
    (b) * * *
    (5) The extent of any diversion of the controlled substance in the 
class;
    (6) Relevant information obtained from the Department of Health and 
Human Services, including from the Food and Drug Administration, the 
Centers for Disease Control and Prevention, and the Centers for 
Medicare and Medicaid Services, and relevant information obtained from 
the states; and
* * * * *
0
3. In Sec.  1303.12(b), add after the fifth sentence a new sentence to 
read as follows:


Sec.  1303.12   Procurement quotas.

* * * * *
    (b) * * * The Administrator may require additional information from 
an applicant which, in the Administrator's judgment, may be helpful in 
detecting or preventing diversion, including customer identities and 
amounts of the controlled substance sold to each customer. * * *
* * * * *
0
4. In Sec.  1303.13:
0
a. Revise paragraph (b)(1).
0
b. In paragraph (c), add the phrase ``and transmitted to each state 
attorney general'' before the period in the second sentence, add the 
phrase ``, except that the Administrator shall hold a hearing if he 
determines it is necessary to resolve an issue of material fact raised 
by a state objecting to the proposed adjusted quota as excessive for 
legitimate United States need'' before the period in the fourth 
sentence, remove the word ``such'' in the fifth sentence, and add the 
phrase ``and transmitted to each state attorney general'' before the 
period in the final sentence.
    The revision reads as follows:


Sec.  1303.13   Adjustments of aggregate production quotas.

* * * * *
    (b) * * *
    (1) Changes in the demand for that class, changes in the national 
rate of net disposal of the class, changes in the rate of net disposal 
of the class by registrants holding individual manufacturing quotas for 
that class, and changes in the extent of any diversion in the class;
* * * * *


Sec.  1303.21   [Amended]

0
5. In Sec.  1303.21(a), remove ``Sec. Sec.  '' in the second sentence 
and add in its place ``Sec.  ''.
0
6. In Sec.  1303.22:
0
a. In paragraph (c)(2), remove the word ``econolic'' and add in its 
place the word ``economic''.
0
b. Add paragraph (d).
    The addition reads as follows:


Sec.  1303.22   Procedure for applying for individual manufacturing 
quotas.

* * * * *
    (d) The Administrator may require additional information from an 
applicant which, in the Administrator's judgment, may be helpful in 
detecting or preventing diversion, including customer identities and 
amounts of the controlled substance sold to each customer.


Sec.  1303.23   [Amended]

0
7. In Sec.  1303.23, add the phrase ``the extent of any diversion of 
the controlled substance,'' after ``strikes),'' in paragraph (a)(2), 
and add the phrase ``any risk of diversion of the controlled 
substance,'' after ``strikes),'' in paragraph (b)(2).


Sec.  1303.32   [Amended]

0
8. In Sec.  1303.32(a), add the phrase ``and shall, if determined by 
the Administrator to be necessary under Sec.  1303.11(c) or 1303.13(c) 
based on objection by a state,'' before ``hold a hearing''.

    Dated: April 13, 2018.
Robert W. Patterson,
Acting Administrator.
[FR Doc. 2018-08111 Filed 4-18-18; 8:45 am]
 BILLING CODE 4410-09-P



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                                                   From Dells, WI; Madison, WI;to INT                    received a Comment Tracking Number,                    will be redacted and the comment, in
                                                 Madison 138° and Badger, WI, 193°(T)/                   your comment has been successfully                     redacted form, will be posted online and
                                                 191°(M) radials. From INT DuPage, IL,                   submitted and there is no need to                      placed in DEA’s public docket file.
                                                 359°(T)/357°(M) and Northbrook, IL, 291°                resubmit the same comment. Paper                       Please note that the Freedom of
                                                 radials; Northbrook; INT Northbrook 110°                comments that duplicate the electronic
                                                 and Gipper, MI, 290° radials; to Gipper.                                                                       Information Act applies to all comments
                                                                                                         submission are not necessary and are                   received. If you wish to inspect the
                                                   Issued in Washington, DC, on April 11,                discouraged. Should you, however,
                                                 2018.
                                                                                                                                                                agency’s public docket file in person by
                                                                                                         wish to mail a paper comment in lieu                   appointment, please see the FOR
                                                 Rodger A. Dean Jr.,                                     of an electronic comment, it should be
                                                                                                                                                                FURTHER INFORMATION paragraph.
                                                 Manager, Airspace Policy Group.                         sent via regular or express mail to: Drug
                                                 [FR Doc. 2018–08033 Filed 4–18–18; 8:45 am]             Enforcement Administration, Attention:                 Legal Authority
                                                 BILLING CODE 4910–13–P                                  DEA Federal Register Representative/
                                                                                                         DRW, 8701 Morrissette Drive,                              Provisions of the Controlled
                                                                                                         Springfield, Virginia 22152.                           Substances Act, 21 U.S.C. 801 et seq.,
                                                 DEPARTMENT OF JUSTICE                                   FOR FURTHER INFORMATION CONTACT:                       authorize the Attorney General to issue
                                                                                                         Michael J. Lewis, Diversion Control                    rules and regulations relating to
                                                 Drug Enforcement Administration                         Division, Drug Enforcement                             registration and control of the
                                                                                                         Administration; Mailing Address: 8701                  manufacture, distribution, and
                                                 21 CFR Part 1303                                        Morrissette Drive, Springfield, Virginia               dispensing of controlled substances and
                                                                                                         22152; Telephone: (202) 598–8953.                      listed chemicals. 21 U.S.C. 821.
                                                 [Docket No. DEA–480]
                                                                                                         SUPPLEMENTARY INFORMATION:                             Pursuant to this authority, the Attorney
                                                 RIN 1117–AB48                                                                                                  General, through the Drug Enforcement
                                                                                                         Posting of Public Comments
                                                                                                                                                                Administration (DEA), has issued and
                                                 Controlled Substances Quotas                               Please note that all comments                       administers regulations setting aggregate
                                                 AGENCY: Drug Enforcement                                received are considered part of the                    production quotas for each basic class of
                                                 Administration, Department of Justice.                  public record. They will, unless                       controlled substances in schedules I and
                                                                                                         reasonable cause is given, be made                     II, manufacturing quotas for individual
                                                 ACTION: Notice of proposed rulemaking.
                                                                                                         available by the Drug Enforcement
                                                                                                                                                                manufacturers, and procurement quotas
                                                 SUMMARY:    The Drug Enforcement                        Administration (DEA) for public
                                                                                                                                                                for manufacturers to produce other
                                                 Administration (DEA) is publishing this                 inspection online at http://
                                                                                                         www.regulations.gov and in DEA’s                       controlled substances or to convert the
                                                 proposed rule to strengthen controls                                                                           substances into dosage form. See 21 CFR
                                                 over diversion of controlled substances                 public docket. Such information
                                                                                                         includes personal identifying                          part 1303.
                                                 and make other improvements in the
                                                 quota management regulatory system for                  information (such as your name,                           The current regulations, issued
                                                 the production, manufacturing, and                      address, etc.) voluntarily submitted by                initially in 1971, need to be updated to
                                                 procurement of controlled substances.                   the commenter.                                         reflect changes in the manufacture of
                                                 DATES: Written comments must be
                                                                                                            If you want to submit personal                      controlled substances, changing patterns
                                                 postmarked, and electronic comments                     identifying information (such as your                  of substance abuse and markets in illicit
                                                                                                         name, address, etc.) as part of your                   drugs, and the challenges presented by
                                                 must be sent, on or before May 4, 2018.
                                                                                                         comment, but do not want it to be                      the current national crisis of controlled
                                                 Comments received by mail will be
                                                                                                         posted online or made available in the                 substance abuse. This proposed rule
                                                 considered timely if they are
                                                                                                         public docket, you must include the
                                                 postmarked on or before the last day of                                                                        modifies the regulations to strengthen
                                                                                                         phrase ‘‘PERSONAL IDENTIFYING
                                                 the comment period. The electronic                                                                             controls over diversion—that is, the
                                                                                                         INFORMATION’’ in the first paragraph
                                                 Federal Docket Management System                                                                               redirection of controlled substances
                                                                                                         of your comment. You must also place
                                                 will accept electronic comments until                                                                          which may have lawful uses into illicit
                                                                                                         all the personal identifying information
                                                 Midnight Eastern Time at the end of that                                                                       channels—and makes other
                                                                                                         you do not want posted online or made
                                                 day.                                                                                                           improvements in the controlled
                                                                                                         available in the public docket in the first
                                                 ADDRESSES: To ensure proper handling                    paragraph of your comment and identify                 substance regulatory quota system.
                                                 of comments, please reference ‘‘Docket                  what information you want redacted.                       The quota process, in general terms, is
                                                 No. DEA–480’’ on all correspondence,                       If you want to submit confidential                  a critical element of the Controlled
                                                 including any attachment. The Drug                      business information as part of your                   Substances Act’s regulatory system that
                                                 Enforcement Administration encourages                   comment, but do not want it to be
                                                 that all comments be submitted                                                                                 seeks to prevent or limit diversion by
                                                                                                         posted online or made available in the                 preventing the accumulation of
                                                 electronically through the Federal                      public docket, you must include the
                                                 eRulemaking Portal which provides the                                                                          controlled substances in amounts
                                                                                                         phrase ‘‘CONFIDENTIAL BUSINESS
                                                 ability to type short comments directly                                                                        exceeding legitimate need. The
                                                                                                         INFORMATION’’ in the first paragraph
                                                 into the comment field on the web page                                                                         measures the proposed rule adopts to
                                                                                                         of your comment. You must also
                                                 or to attach a file for lengthier                       prominently identify confidential                      strengthen the system include
                                                 comments. Please go to http://                          business information to be redacted                    authorizing the requisition from quota
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                                                 www.regulations.gov and follow the                      within the comment. If a comment has                   applicants of additional information
                                                 online instructions at that site for                    so much confidential business                          helpful in detecting and preventing
                                                 submitting comments. Upon completion                    information that it cannot be effectively              diversion, and ensuring that DEA’s
                                                 of your submission you will receive a                   redacted, all or part of that comment                  determinations regarding the
                                                 Comment Tracking Number for your                        may not be posted online or made                       appropriate quotas are adequately
                                                 comment. Please be aware that                           available in the public docket.                        informed by input from other federal
                                                 submitted comments are not                                 Personal identifying information and                agencies, from the states, and from
                                                 instantaneously available for public                    confidential business information                      quota applicants.


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                                                 17330                   Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Proposed Rules

                                                 Section-by-Section Analysis                             production quotas and make additional                  Section 1303.13—Adjustments of
                                                                                                         changes enhancing their role in                        Aggregate Production Quotas
                                                 Section 1303.11—Aggregate Production
                                                                                                         § 1303.11(c). The states are critically                  Section 1303.13 authorizes the
                                                 Quotas
                                                                                                         situated to provide information about                  Administrator, at any time, to increase
                                                    Section 1303.11 in the existing                      the extent of legitimate and illegitimate              or reduce the aggregate production
                                                 regulations directs the Administrator of                use of controlled substances because of                quotas for basic classes of controlled
                                                 DEA to determine the total quantity of                  their responsibilities for drug                        substances that were previously fixed
                                                 each basic class of controlled substance                enforcement within their jurisdictions,                pursuant to § 1303.11. The proposed
                                                 listed in schedule I or II needed in the                including through the Prescription Drug                rule would make amendments to
                                                 calendar year for the medical, scientific,              Monitoring Programs, their                             § 1303.13 that parallel some of the
                                                 research and industrial needs of the                    responsibilities for administration of                 amendments made to § 1303.11.
                                                 United States, for lawful export, and for               their health care systems, and their                   Specifically, it includes changes in the
                                                 the establishment and maintenance of                    responsibilities for dealing with the                  extent of any diversion of the controlled
                                                 reserve stocks. Section 1303.11(b)(1)–(4)               human and social costs of drug abuse                   substance among the factors to be
                                                 identifies a number of factors that are                 and diversion. States may have relevant                considered in adjusting the aggregate
                                                 categorically to be considered in                       information indicating that individual                 production quota, requires transmission
                                                 determining aggregate production                        procurement quota requests reflect                     of adjustment notices and final
                                                 quotas—relating to total net disposal,                  quantities which will in fact be diverted              adjustment orders to the state attorney
                                                 net disposal trends, inventories and                    to illicit use, which may in turn yield                general, and provides for a hearing if
                                                 inventory trends, and demand—                           an exaggerated picture of the aggregate
                                                 followed by a final catchall factor, (5),                                                                      necessary to resolve an issue of material
                                                                                                         production quotas needed for legitimate                fact raised by a state’s objection to a
                                                 regarding factors to be considered as the               purposes. The proposed rule
                                                 Administrator finds relevant. The                                                                              proposed adjusted quota as excessive for
                                                                                                         accordingly includes amendments to                     legitimate United States need.
                                                 proposed rule would make two                            § 1303.11(c) which provide for (i)
                                                 additions to the list of factors that must              transmitting notices of proposed                       Section 1303.22—Procedure for
                                                 regularly be considered in setting the                  aggregate production quotas, and final                 Applying for Individual Manufacturing
                                                 aggregate production quotas because of                  aggregate production quota orders, to                  Quotas
                                                 their importance.                                       the state attorney general, and (ii)                     The proposed rule would amend
                                                    First, it would add to the list the
                                                                                                         holding a hearing if necessary to resolve              § 1303.22 to clarify that the
                                                 extent of any diversion of the controlled
                                                                                                         an issue of material fact raised by a                  Administrator may require additional
                                                 substance in the class. This is relevant
                                                                                                         state’s objection to a proposed aggregate              information from individual
                                                 to ensure that the allowed aggregate
                                                                                                         production quota as excessive in                       manufacturing quota applicants that
                                                 production quota is limited to that
                                                 needed to provide adequate supplies for                 relation to legitimate United States                   may help to detect or prevent diversion,
                                                 the United States’ legitimate needs.                    need.                                                  including customer identities and
                                                    Second, the proposed rule would                                                                             amounts of the controlled substance
                                                                                                         Section 1303.12—Procurement Quotas
                                                 amend the list of factors to be                                                                                sold to each customer.
                                                 considered in establishing these quotas                    Section 1303.12 in the regulations                  Section 1303.23—Procedures for Fixing
                                                 to include relevant information from the                directs the Administrator to issue                     Individual Manufacturing Quotas
                                                 Department of Health and Human                          procurement quotas for manufacturers
                                                                                                         that use controlled substances to put                     The proposed rule would amend
                                                 Services (HHS) and its components,
                                                                                                         them into dosage form or to make other                 § 1303.23 to provide that the factors the
                                                 including the Food and Drug
                                                                                                         substances. The section requires                       Administrator may deem relevant in
                                                 Administration (FDA), the Centers for
                                                                                                         applicants for procurement quotas to                   fixing individual manufacturing quotas
                                                 Disease Control and Prevention (CDC),
                                                                                                         state what basic class of controlled                   include the extent and risk of diversion
                                                 and the Centers for Medicare and
                                                                                                         substance is needed, the purpose or                    of controlled substances.
                                                 Medicaid Services (CMS), as well as
                                                 relevant information obtained from the                  purposes for which the class is desired,               Section 1303.32—Purpose of Hearing
                                                 states. Pursuant to 42 U.S.C. 242(a),                   the quantity desired for each purpose
                                                                                                                                                                  The proposed rule includes an
                                                 HHS studies the use and misuse of                       during the next calendar year, and the
                                                                                                                                                                amendment relating to hearings in
                                                 controlled substances and provides,                     quantities used and estimated to be used
                                                                                                                                                                § 1303.32(a), conforming to the
                                                 through the FDA, an annual report to                    for each purpose during the current and
                                                                                                                                                                amendments to §§ 1303.11(c) and
                                                 the Attorney General concerning the                     preceding two calendar years. If the
                                                                                                                                                                1303.13(c) concerning hearings based on
                                                 quantities of controlled substances                     applicant’s purpose is to manufacture
                                                                                                                                                                state objections.
                                                 necessary to support the medicinal                      another basic class of controlled
                                                 needs of the United States. The CDC and                 substance, the applicant also must state               Other Matters
                                                 the CMS may also have relevant                          the quantity of the other basic class that               In addition to the significant changes
                                                 information, including information                      the applicant has applied to                           discussed above, the proposed rule
                                                 about the prevalence and patterns of                    manufacture, and the quantity of the                   would correct a number of typographic
                                                 drug abuse and the diversion of                         first basic class necessary to                         errors in the current regulations.
                                                 controlled substances to illicit use. The               manufacture a specified quantity of the
                                                 amendment would ensure that                             second basic class.                                    Request for Comments
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                                                 information will be requested from the                     The proposed rule would amend                         Some of the proposed rule’s
                                                 relevant HHS components and will be                     § 1303.12(b) to clarify that the                       provisions, including those relating to
                                                 considered in setting the aggregate                     Administrator may require additional                   seeking information from other federal
                                                 production quotas.                                      comparable information from applicants                 agencies and the states, and those
                                                    Regarding the states, the proposed                   that may help to detect or prevent                     relating to the holding of hearings based
                                                 rule would provide that the                             diversion, including customer identities               on state objections, are exempt from the
                                                 Administrator will consider information                 and amounts of the controlled substance                notice and comment requirements of the
                                                 from the states in setting the aggregate                sold to each customer.                                 Administrative Procedure Act as ‘‘rules


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                                                                         Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Proposed Rules                                            17331

                                                 of agency organization, procedure, or                   first obtaining these drugs from their                 the factors to be considered by the
                                                 practice.’’ 5 U.S.C. 553(b)(A). Regarding               health care providers or without cost                  Administrator to include the extent of
                                                 the other matters addressed in the                      from the family medicine cabinet or                    diversion and enhance the input and
                                                 proposed rule, DEA particularly seeks                   from friends. Once ensnared,                           role of other federal agencies and the
                                                 comments on the provisions regarding                    dependency on potent and dangerous                     states in the quota-setting process.
                                                 the factors the Administrator shall                     street drugs may ensue. About 80% of                   Having these reforms in place
                                                 consider when adjusting the aggregate                   heroin users first misused prescription                expeditiously will facilitate the sound
                                                 production quotas (21 CFR                               opioids. Thus, it may be inferred that                 proposal and determination of aggregate
                                                 1303.13(b)(1)) and the additional                       current users of heroin and fentanyl                   production quotas for 2019.
                                                 information the Administrator may                       largely entered the gateway as part of                    Section 1303.12 requires the
                                                 require from applicants (21 CFR                         the populations who previously                         Administrator to set manufacturers’
                                                 1303.12(b) and 21 CFR 1303.22).                         misused prescription opioids. See NIDA                 procurement quotas for 2019 well in
                                                    Insofar as soliciting public comment                 Data.                                                  advance in 2018; manufacturers’
                                                 is necessary or useful, DEA publishes                      Street prices for controlled                        applications were due by April 1, 2018.
                                                 this proposed rule with a 15-day public                 prescription opioids are typically 5 to                The proposed rule would amend
                                                 comment period. This shortened period                   10 times their retail value, with steady               § 1303.12 to allow the Administrator to
                                                 for public comment is necessary as an                   increases with the relative strength of                require procurement quota applicants to
                                                 element in addressing the largest drug                  the drug, fueling the market for                       provide additional information that may
                                                 crisis in the nation’s history. HHS and                 prescription medications diverted into                 help to detect or prevent the diversion
                                                 DEA have developed extensive                            illegal channels. For example,                         of controlled substances ostensibly
                                                 information concerning the nature and                   hydrocodone combination products—a                     obtained for legitimate dosage form
                                                 magnitude of the crisis. See                            schedule II prescription drug and also                 manufacturing. Having this reform in
                                                 www.hhs.gov/about/news/2017/10/26/                      the most prescribed controlled                         place expeditiously will facilitate the
                                                 hhs-acting-secretary-declares-public-                   prescription drug in the country—can                   sound determination of procurement
                                                 health-emergency-address-national-                      be purchased for $5 to $7 per tablet on                quotas for 2019 and help to ensure that
                                                 opioid-crisis.html; www.cdc.gov/                        the street. Slightly stronger drugs like               controlled substances sought for dosage
                                                 drugoverdose/data (CDC Epidemic                         oxycodone combined with                                form manufacturing will not be
                                                 Data); www.cdc.gov/nchs/products/                       acetaminophen (e.g., Percocet) can be                  diverted.
                                                 databriefs/db294.htm (CDC Overdose                      purchased for $7 to $10 per tablet on the                 Section 1303.13 allows the
                                                 Data); www.samhsa.gov/data/sites/                       street. Even stronger prescription drugs               Administrator to increase or reduce
                                                 default/files/NSDUH-FFR1-2016/                          are sold for as much as $1 per milligram               aggregate production quotas at any time.
                                                 NSDUH-FFR1-2016.pdf (SAMHSA                             (mg). For example, 30 mg oxycodone                     The proposed amendments would
                                                 Data); www.drugabuse.gov/drugs-abuse/                   (immediate release) and 30 mg                          expand the factors to be considered by
                                                 opioids/opioid-overdose-crisis (NIDA                    oxymorphone (extended release) cost                    the Administrator in adjusting aggregate
                                                 Data); Drug Enforcement                                 $30 to $40 per tablet on the street. Due               production quotas to include changes in
                                                 Administration, 2017 National Drug                      in part to the large number of people                  the extent of diversion and make other
                                                 Threat Assessment (Oct. 2017), at v, 25–                who abuse licit controlled prescription                changes to enhance the input and role
                                                 43 (2017 DEA Data). Salient facts                       drugs, other opioids are now being                     of the states in the aggregate production
                                                 include the following:                                  disguised and sold as controlled                       quota adjustment process. Having these
                                                    Drug overdoses are now the leading                   prescription drugs.                                    reforms in place expeditiously, as well
                                                 cause of injury-related death in the                       The economic impact of prescription                 as the amendments to other sections
                                                 United States, eclipsing deaths from                    drug abuse was estimated to be $78.5                   authorizing the requisition of more
                                                 motor vehicle accidents, firearms,                      billion in 2013. Specific costs included               information from manufacturers bearing
                                                 homicide, or suicide. There were more                   increased health care and substance                    on the extent of diversion, will facilitate
                                                 than 63,600 overdose deaths in 2016,                    abuse treatment costs, criminal justice                the sound determination of aggregate
                                                 with opioids as the main driver of such                 costs, and employment-related costs                    production quota adjustments by the
                                                 deaths. Overdoses involving opioids                     including lost earnings from premature                 Administrator, which may be
                                                 killed more than 42,000 people in 2016,                 death, reduced compensation, and lost                  undertaken at any time.
                                                 with prescription opioids accounting for                employment. These costs, largely                          Sections 1303.22 and 1303.23 require
                                                 40% of the total. Opioid overdose                       reflecting prescription opioid abuse,                  the Administrator to set individual
                                                 deaths were more than five times higher                 represent a substantial and growing                    manufacturing quotas for 2019 well in
                                                 in 2016 than 1999. 2017 DEA Data at v,                  economic burden on society. 2017 DEA                   advance in 2018, based on applications
                                                 25; CDC Overdose Data; CDC Epidemic                     Data at 40.                                            the manufacturers must submit by May
                                                 Data.                                                      This proposed rule’s reforms, which                 1, 2018. The proposed rule’s
                                                    The misuse of controlled prescription                will help to control the diversion of                  amendments to these sections would
                                                 drugs, and particularly prescription                    controlled substances feeding the crisis               authorize the Administrator to require
                                                 opioids, has been central to this deadly                described above, must be implemented                   applicants to provide additional
                                                 epidemic. In 2016, of Americans aged                    without delay to permit timely action by               information that may help to detect or
                                                 12 or older, an estimated 3.3 million                   the Drug Enforcement Administration,                   prevent diversion, and add the extent
                                                 had misused prescription pain relievers                 informed by adequate input from                        and risk of diversion to the factors the
                                                 during the preceding month and                          manufacturers, other federal agencies,                 Administrator may deem relevant in
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                                                 approximately 11.8 million had misused                  and the states. The affected                           fixing individual manufacturing quotas.
                                                 opioids in the past year. Prescription                  determinations include the following:                  Having these reforms in place
                                                 opioid misuse is more common than use                      Section 1303.11 in the regulations                  expeditiously will facilitate the sound
                                                 of any category of illicit drug in the                  requires the DEA Administrator to                      determination of the individual
                                                 United States except for marijuana.                     publish notice of the proposed aggregate               manufacturing quotas for 2019.
                                                 SAMHSA Data at 14, 16, 20–21.                           production quotas for 2019 well in                        In sum, the death of over 63,600
                                                    Users may be initiated into a life of                advance in 2018. The proposed rule’s                   Americans from drug overdoses in 2016,
                                                 substance abuse and dependency after                    amendments to § 1303.11 would expand                   and the other human, social, and


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                                                 17332                   Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Proposed Rules

                                                 economic costs detailed above, make                     reason to believe that there will be                   quotas, and fixing individual
                                                 imperative the immediate use of all                     adverse economic impact or other                       manufacturing quotas. When fixing and
                                                 available tools to prevent the diversion                consequences sufficient to implicate                   adjusting the aggregate production
                                                 of controlled substances. Delay in the                  Executive Order (E.O.) 12866.                          quota, or fixing an individual
                                                 finalization and implementation of this                    Additionally, sections 1303.11 and                  manufacturing quota for a controlled
                                                 proposed rule would impede putting                      1303.13 would be amended to require                    substance, the DEA has always
                                                 into effect the diversion                               the DEA to transmit copies of aggregate                considered all available information
                                                 countermeasures it authorizes, which                    production quotas and any adjustments                  regarding the diversion of that
                                                 will help to stem a source of the flow                  to those quotas published in the Federal               controlled substance. While the
                                                 of controlled substances with legitimate                Register directly to state attorney                    proposed rule’s amendments, as
                                                 uses into illicit channels. Such delay                  general. While the DEA anticipates                     discussed above, may result in the
                                                 would prevent in the meantime the                       some labor burden to transmit aggregate                receipt and consideration of additional
                                                 alleviation of the toll on human life and               production quota notices and orders to                 information relating to diversion, it is
                                                 health, and the devastating social and                  each state attorney general, the DEA                   not expected that the difference will
                                                 economic costs, which shortfalls in the                 estimates that this activity will result in            have adverse economic impact or other
                                                 existing regulations facilitate.                        a minimal yearly cost to the DEA and                   consequences sufficient to implicate
                                                                                                         that the DEA has sufficient resources to               E.O. 12866.
                                                 Regulatory Flexibility Act                              absorb this minimal cost.                                This proposed rule is not expected to
                                                   The Administrator, in accordance                         Additionally, sections 1303.11,                     be an E.O. 13771 regulatory action
                                                 with the Regulatory Flexibility Act (5                  1303.13, and 1303.32 would be                          because this proposed rule is not
                                                 U.S.C. 601–612), has reviewed this                      amended to explicitly state that the DEA               significant under E.O. 12866.
                                                 proposed rule and by approving it                       Administrator shall hold a hearing if he
                                                 certifies that the rule will not have a                 or she determines it is necessary to                   Executive Order 13132—Federalism
                                                 significant economic impact on a                        resolve an issue of material fact raised                  This regulation will not have
                                                 substantial number of small entities.                   by a state objecting to the proposed                   substantial direct effects on the states,
                                                   The DEA estimates that 325                            quantity for the class as excessive for                on the relationship between the national
                                                 manufacturers may be affected by the                    legitimate United States need. The                     Government and the states, or on the
                                                 proposed rule, of which 301                             estimated yearly cost of this revision                 distribution of power and
                                                 manufacturers (92.6% of the total) are                  will be dependent on the amount of                     responsibilities among the various
                                                 small entities. There will not be a                     hearings the DEA Administrator                         levels of government. Therefore, in
                                                 significant economic impact on a                        determines to be necessary to resolve an               accordance with Executive Order 13132,
                                                 substantial number of these small                       issue of material fact raised by a state               it is determined that this proposed rule
                                                 entities or any others because, as the                  regarding the aggregate production                     does not have sufficient federalism
                                                 ensuing certifications discuss, any                     quota. Hearings regarding aggregate                    implications to warrant the preparation
                                                 overall cost of the rule is not significant.            production quotas are infrequent and                   of a federalism assessment.
                                                 Executive Orders 12866, 13563, and                      the DEA estimates that hearings of this
                                                                                                         type will continue to be infrequent                    Executive Order 12988—Civil Justice
                                                 13771—Regulatory Planning and                                                                                  Reform
                                                 Review, and Reducing Regulation and                     under this proposed rule. For these
                                                 Controlling Regulatory Costs                            reasons, the DEA does not expect a                       This regulation meets the applicable
                                                                                                         material increase in the number of                     standards set forth in sections 3(a) and
                                                    This regulation has been drafted and                 hearings or in the associated costs to                 3(b)(2) of Executive Order 12988.
                                                 reviewed in accordance with Executive                   DEA or the states.
                                                 Order 12866, ‘‘Regulatory Planning and                     Sections 1303.12 and 1303.22 would                  Paperwork Reduction Act
                                                 Review,’’ section 1(b), Principles of                   be amended to explicitly state that the                  This proposed rule codifies current
                                                 Regulation, and Executive Order 13563,                  Administrator may require additional                   agency practice under existing approved
                                                 ‘‘Improving Regulation and Regulatory                   information from an individual                         information collections, and does not
                                                 Review.’’ DEA has determined that this                  manufacturing or procurement quota                     impose new information collection
                                                 proposed rule is not a ‘‘significant                    applicant, including customer identities               requirements under the Paperwork
                                                 regulatory action’’ under Executive                     and amounts of controlled substances                   Reduction Act of 1995, 44 U.S.C. 3501–
                                                 Order 12866, section 3(f). The DEA                      sold to each of their customers.                       3521.
                                                 analyzed the economic impact of each                    Currently, the DEA can and does request
                                                 provision of this proposed rule. Section                additional information of this nature                  Unfunded Mandates Reform Act of
                                                 1303.11 would be amended to make two                    from quota applicants if deemed                        1995
                                                 additions to the list of factors to be                  necessary. While affording the                            This proposed rule will not result in
                                                 considered by the Administrator in                      Administrator express regulatory                       the expenditure by State, local and
                                                 setting the aggregate production quotas.                authority to require such information                  tribal governments, in the aggregate, or
                                                 First, it would add the extent of any                   may result in the receipt of additional                by the private sector, of $100 million or
                                                 diversion of the controlled substance in                information that is valuable in detecting              more in any one year, and it will not
                                                 the class. Second, it would add relevant                and preventing diversion, it is not                    significantly or uniquely affect small
                                                 information from HHS and its                            expected that the difference will have                 governments. Therefore, no actions were
                                                 components, as well as from the states.                 adverse economic impact or other                       deemed necessary under the provisions
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                                                 The DEA has always considered any                       consequences sufficient to implicate                   of the Unfunded Mandates Reform Act
                                                 information obtained from other federal                 E.O. 12866.                                            of 1995.
                                                 and state government agencies when                         Sections 1303.11, 1303.13, and
                                                 fixing the aggregate production quotas                  1303.23 would be amended to add the                    Congressional Review Act
                                                 for a controlled substance. While the                   requirement that DEA consider                            This rulemaking is not a major rule as
                                                 DEA may receive additional information                  diversion of a controlled substance                    defined by section 251 of the
                                                 that is valuable in detecting and                       when fixing aggregate production                       Congressional Review Act. 5 U.S.C. 804.
                                                 preventing diversion, the DEA has no                    quotas, adjusting aggregate production                 This proposed rule will not result in an


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                                                                         Federal Register / Vol. 83, No. 76 / Thursday, April 19, 2018 / Proposed Rules                                                 17333

                                                 annual effect on the economy of $100                    § 1303.12    Procurement quotas.                       substance,’’ after ‘‘strikes),’’ in
                                                 million or more; a major increase in                    *      *    *     *     *                              paragraph (a)(2), and add the phrase
                                                 costs or prices; or significant adverse                    (b) * * * The Administrator may                     ‘‘any risk of diversion of the controlled
                                                 effects on competition, employment,                     require additional information from an                 substance,’’ after ‘‘strikes),’’ in
                                                 investment, productivity, or innovation,                applicant which, in the Administrator’s                paragraph (b)(2).
                                                 or on the ability of United States-based                judgment, may be helpful in detecting
                                                                                                                                                                § 1303.32   [Amended]
                                                 enterprises to compete with foreign-                    or preventing diversion, including
                                                 based enterprises in domestic and                       customer identities and amounts of the                 ■ 8. In § 1303.32(a), add the phrase ‘‘and
                                                 export markets.                                         controlled substance sold to each                      shall, if determined by the
                                                                                                         customer. * * *                                        Administrator to be necessary under
                                                 List of Subjects in 21 CFR Part 1303                                                                           § 1303.11(c) or 1303.13(c) based on
                                                                                                         *      *    *     *     *                              objection by a state,’’ before ‘‘hold a
                                                   Administrative practice and                           ■ 4. In § 1303.13:
                                                 procedure, Drug traffic control.                        ■ a. Revise paragraph (b)(1).
                                                                                                                                                                hearing’’.
                                                   Accordingly, for the reasons stated in                ■ b. In paragraph (c), add the phrase                    Dated: April 13, 2018.
                                                 the preamble, part 1303 of title 21 of the              ‘‘and transmitted to each state attorney               Robert W. Patterson,
                                                 Code of Federal Regulations is proposed                 general’’ before the period in the second              Acting Administrator.
                                                 to be amended as follows:                               sentence, add the phrase ‘‘, except that               [FR Doc. 2018–08111 Filed 4–18–18; 8:45 am]
                                                                                                         the Administrator shall hold a hearing                 BILLING CODE 4410–09–P
                                                 PART 1303—QUOTAS                                        if he determines it is necessary to
                                                                                                         resolve an issue of material fact raised
                                                 ■ 1. The authority citation for part 1303               by a state objecting to the proposed                   DEPARTMENT OF HOMELAND
                                                 continues to read as follows:                           adjusted quota as excessive for                        SECURITY
                                                     Authority: 21 U.S.C. 821, 826, 871(b).              legitimate United States need’’ before
                                                                                                         the period in the fourth sentence,                     Coast Guard
                                                 ■  2. In § 1303.11:                                     remove the word ‘‘such’’ in the fifth
                                                 ■ a. Remove the word ‘‘and’’ at the end                 sentence, and add the phrase ‘‘and                     33 CFR Part 100
                                                 of paragraph (b)(4).                                    transmitted to each state attorney
                                                 ■ b. Redesignate paragraph (b)(5) as                                                                           [Docket Number USCG–2018–0224]
                                                                                                         general’’ before the period in the final
                                                 paragraph (b)(7).                                       sentence.                                              RIN 1625–AA08
                                                 ■ c. Add new paragraphs (b)(5) and (6).                    The revision reads as follows:
                                                 ■ d. In paragraph (c), add the phrase                                                                          Special Local Regulation;
                                                                                                         § 1303.13 Adjustments of aggregate                     Monongahela, Allegheny, and Ohio
                                                 ‘‘and transmitted to each state attorney                production quotas.
                                                 general’’ before the period in the second                                                                      Rivers, Pittsburgh PA
                                                 sentence, add the phrase ‘‘except that                  *     *     *     *     *
                                                                                                           (b) * * *                                            AGENCY:   Coast Guard, DHS.
                                                 the Administrator shall hold a hearing                                                                         ACTION:   Notice of proposed rulemaking.
                                                                                                           (1) Changes in the demand for that
                                                 if he determines it is necessary to
                                                                                                         class, changes in the national rate of net
                                                 resolve an issue of material fact raised                                                                       SUMMARY:    The Coast Guard proposes to
                                                                                                         disposal of the class, changes in the rate
                                                 by a state objecting to the proposed                                                                           establish a special local regulation for
                                                                                                         of net disposal of the class by registrants
                                                 quantity for the class as excessive for                                                                        parts of the navigable waters of the
                                                                                                         holding individual manufacturing
                                                 legitimate United States need’’ before                                                                         Allegheny, Monongahela, and Ohio
                                                                                                         quotas for that class, and changes in the
                                                 the period in the fourth sentence,                                                                             Rivers. This action is necessary to
                                                                                                         extent of any diversion in the class;
                                                 remove the word ‘‘such’’ in the fifth                                                                          provide for the safety of life on these
                                                 sentence, add the phrase ‘‘, the                        *     *     *     *     *                              navigable waters during the weekend of
                                                 Administrator’’ before ‘‘shall issue’’ in               § 1303.21    [Amended]                                 the Kenny Chesney concert at Heinz
                                                 the sixth sentence, and add the phrase                  ■  5. In § 1303.21(a), remove ‘‘§§ ’’ in the           Field. This proposed rulemaking would
                                                 ‘‘and transmitted to each state attorney                second sentence and add in its place                   prohibit persons and vessels from
                                                 general’’ before the period in the final                ‘‘§ ’’.                                                loitering, anchoring, stopping, mooring,
                                                 sentence.                                               ■ 6. In § 1303.22:                                     remaining, or drifting in any manner
                                                    The additions read as follows:                       ■ a. In paragraph (c)(2), remove the                   that impedes safe passage of another
                                                                                                         word ‘‘econolic’’ and add in its place                 vessel to any launching ramp, marina,
                                                 § 1303.11    Aggregate production quotas.                                                                      or fleeting area unless authorized by the
                                                                                                         the word ‘‘economic’’.
                                                 *      *    *     *     *                               ■ b. Add paragraph (d).                                Captain of the Port Marine Safety Unit
                                                    (b) * * *                                               The addition reads as follows:                      Pittsburgh or a designated
                                                    (5) The extent of any diversion of the                                                                      representative. In addition, this
                                                 controlled substance in the class;                      § 1303.22 Procedure for applying for                   proposed rulemaking would prohibit
                                                                                                         individual manufacturing quotas.                       persons and vessels from loitering,
                                                    (6) Relevant information obtained
                                                 from the Department of Health and                       *     *    *    *     *                                anchoring, stopping, or drifting more
                                                 Human Services, including from the                        (d) The Administrator may require                    than 100 feet from any riverbank unless
                                                 Food and Drug Administration, the                       additional information from an                         authorized by the Captain of the Port
                                                 Centers for Disease Control and                         applicant which, in the Administrator’s                Marine Safety Unit Pittsburgh or a
                                                                                                         judgment, may be helpful in detecting                  designated representative. We invite
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 Prevention, and the Centers for
                                                 Medicare and Medicaid Services, and                     or preventing diversion, including                     your comments on this proposed
                                                 relevant information obtained from the                  customer identities and amounts of the                 rulemaking.
                                                 states; and                                             controlled substance sold to each
                                                                                                                                                                DATES: Comments and related material
                                                                                                         customer.
                                                 *      *    *     *     *                                                                                      must be received by the Coast Guard on
                                                 ■ 3. In § 1303.12(b), add after the fifth               § 1303.23    [Amended]                                 or before May 4, 2018.
                                                 sentence a new sentence to read as                      ■ 7. In § 1303.23, add the phrase ‘‘the                ADDRESSES: You may submit comments
                                                 follows:                                                extent of any diversion of the controlled              identified by docket number USCG–


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Document Created: 2018-04-19 00:40:39
Document Modified: 2018-04-19 00:40:39
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
ActionNotice of proposed rulemaking.
DatesWritten comments must be postmarked, and electronic comments must be sent, on or before May 4, 2018. Comments received by mail will be considered timely if they are postmarked on or before the last day of the comment period. The electronic Federal Docket Management System will accept electronic comments until Midnight Eastern Time at the end of that day.
ContactMichael J. Lewis, Diversion Control
FR Citation83 FR 17329 
RIN Number1117-AB48
CFR AssociatedAdministrative Practice and Procedure and Drug Traffic Control

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