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[Federal Register Volume 76, Number 71 (Wednesday, April 13, 2011)]
[Rules and Regulations]
[Pages 20518-20524]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-9016]

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DEPARTMENT OF JUSTICE

Drug Enforcement Administration

21 CFR Part 1314

[Docket No. DEA-347I]
RIN 1117-AB30

Self-Certification and Employee Training of Mail-Order 
Distributors of Scheduled Listed Chemical Products

AGENCY: Drug Enforcement Administration (DEA), Department of Justice.

ACTION: Interim final rule with request for comment.

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

SUMMARY: On October 12, 2010, the President signed the Combat 
Methamphetamine Enhancement Act of 2010 (MEA). It establishes new 
requirements for mail-order distributors of scheduled listed chemical 
products. Mail-order distributors must now self-certify to DEA in order 
to sell scheduled listed chemical products at retail. Sales at retail 
are those sales intended for personal use; mail-order distributors that 
sell scheduled listed chemical products not intended for personal use, 
e.g., sale to a university, are not affected by the new law. This self-
certification must include a statement that the mail-order distributor 
understands each of the requirements that apply under part 1314 and 
agrees to comply with these requirements. Additionally, mail-order 
distributors are now required to train their employees prior to self 
certification. DEA is promulgating this rule to incorporate the 
statutory provisions and make its regulations consistent with the new 
requirements

[[Page 20519]]

and other existing regulations related to self-certification.

DATES: Effective Date: This rule is effective April 13, 2011.
    Comment Date: Written comments must be postmarked and electronic 
comments must be submitted on or before June 13, 2011. Commenters 
should be aware that the electronic Federal Docket Management System 
will not accept comments after midnight Eastern Time on the last day of 
the comment period.

ADDRESSES: To ensure proper handling of comments, please reference 
``Docket No. DEA-347'' on all written and electronic correspondence. 
Comments may be sent electronically through http://www.regulations.gov 
using the electronic comment form provided on that site. An electronic 
copy of this document is also available at the http://www.regulations.gov Web site. Comments may be sent to DEA by sending an 
electronic message to dea.diversion.policy@usdoj.gov. DEA will accept 
attachments to electronic comments in Microsoft Word, WordPerfect, 
Adobe PDF, or Excel file formats only. DEA will not accept any file 
formats other than those specifically listed here.
    Please note that DEA is requesting that electronic comments be 
submitted before midnight Eastern Time on the day the comment period 
closes because http://www.regulations.gov terminates the public's 
ability to submit comments at midnight Eastern Time on the day the 
comment period closes. Commenters in time zones other than Eastern Time 
may want to consider this so that their electronic comments are 
received.
    Written comments sent via regular or express mail should be sent to 
the Drug Enforcement Administration, Attention: DEA Federal Register 
Representative/ODL, 8701 Morrissette Drive, Springfield, VA 22152.
    All comments sent via regular or express mail will be considered 
timely if postmarked on the day the comment period closes.

FOR FURTHER INFORMATION CONTACT: Cathy A. Gallagher, Acting Chief, 
Liaison and Policy Section, Office of Diversion Control, Drug 
Enforcement Administration, 8701 Morrissette Drive, Springfield, VA 
22152; telephone: (202) 307-7297.

SUPPLEMENTARY INFORMATION: 

Posting of Public Comments

    Please note that all comments received are considered part of the 
public record and made available for public inspection online at http://www.regulations.gov and in the Drug Enforcement Administration'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 
the Drug Enforcement Administration'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 CONTACT paragraph.

DEA's Legal Authority

    DEA implements and enforces the Comprehensive Drug Abuse Prevention 
and Control Act of 1970, often referred to as the Controlled Substances 
Act (CSA) and the Controlled Substances Import and Export Act (21 
U.S.C. 801-971), as amended. DEA publishes the implementing regulations 
for these statutes in Title 21 of the Code of Federal Regulations 
(CFR), parts 1300 to 1321. These regulations are designed to ensure 
that there is a sufficient supply of controlled substances for 
legitimate medical, scientific, research, and industrial purposes and 
to deter the diversion of controlled substances to illegal purposes.
    The CSA mandates that DEA establish a closed system of control for 
manufacturing, distributing, and dispensing controlled substances. Any 
person who manufactures, distributes, dispenses, imports, exports, or 
conducts research or chemical analysis with controlled substances must 
register with DEA (unless exempt) and comply with the applicable 
requirements for the activity.
    The CSA as amended also requires DEA to regulate the manufacture, 
distribution, importation, and exportation of chemicals that may be 
used to manufacture controlled substances illegally. Listed chemicals 
that are classified as List I chemicals are important to the 
manufacture of controlled substances. Those classified as List II 
chemicals may be used to manufacture controlled substances.
    On October 12, 2010, the President signed the Combat 
Methamphetamine Enhancement Act of 2010 (MEA) (Pub. L. 111-268). 
Generally, the Administrative Procedure Act (APA) (5 U.S.C. 553) 
requires agencies to provide notice of proposed rulemaking and the 
opportunity for public comment in its regulations implementing an Act 
of Congress. However, an agency may find good cause to exempt a rule 
from certain provisions of the APA, including notice of proposed 
rulemaking and the opportunity for public comment, if it is determined 
to be unnecessary, impracticable, or contrary to the public interest. 
DEA is invoking the APA good cause exception and promulgating this rule 
as an interim final rule rather than a proposed rule because the 
requirements of the MEA addressed by this rulemaking are self-
implementing and changes in this rulemaking provide conforming 
amendments to make the language of the regulations consistent with that 
of the law. The MEA also specifically states that ``[t]he Attorney 
General may issue regulations on an interim basis as necessary to 
ensure the implementation of this Act by the effective date.'' Public 
Law 111-268, Sec. 6(b). DEA is accepting comments on this rulemaking.

Mail-Order Distributor

    DEA regulations do not specifically define ``mail-order 
distributor.'' However, part 1314 of the regulations defines ``mail-
order sale'' as ``a retail sale of scheduled listed chemical products 
for personal use where a regulated person uses or attempts to use the 
U.S. Postal Service or any private or commercial carrier to deliver the 
product to the customer.'' 21 CFR 1314.03. Also, mail-order sale 
``includes purchase orders submitted by phone,

[[Page 20520]]

mail, fax, Internet, or any method other than face-to-face 
transaction.'' 21 CFR 1314.03.
    The idea of mail-order distributor is further developed later in 
part 1314, which discusses a ``regulated person who makes a sale at 
retail of a scheduled listed chemical product and is required under 
Sec.  1310.03(c) of this chapter to submit a report of the sales 
transaction to the Administration * * *'' 21 CFR 1314.100(a). The CSA 
(21 U.S.C. 830(b)(3)) and its implementing regulations impose 
recordkeeping and reporting requirements on ``[e]ach regulated person 
who engages in a transaction with a nonregulated person or who engages 
in an export transaction that involves ephedrine, pseudoephedrine, 
phenylpropanolamine, or gamma-hydroxybutyric acid, including drug 
products containing these chemicals, and uses or attempts to use the 
Postal Service or any private or commercial carrier * * *'' 21 CFR 
1310.03(c). Such persons are obligated to file monthly reports with 
DEA. 21 CFR 1310.03(c).

Combat Methamphetamine Enhancement Act of 2010

    The MEA amends the CSA to change the regulations for selling 
scheduled listed chemical products--nonprescription products that 
contain ephedrine, pseudoephedrine, and phenylpropanolamine, their 
salts, optical isomers, and salts of optical isomers. The law requires 
that each regulated person making sales at retail of a scheduled listed 
chemical product who is required under Title 21 of the United States 
Code ((21 U.S.C. 830(b)(3)) to submit monthly reports of sales 
transactions to the Attorney General (referred to as mail-order 
distributors) may not sell any scheduled listed chemical product at 
retail unless such regulated person has submitted to the Attorney 
General a self-certification. Sales at retail are those sales intended 
for personal use; mail-order distributors that sell scheduled listed 
chemical products not intended for personal use, e.g., sale to a 
university, are not affected by the new law. The requirement of self-
certification becomes effective April 10, 2011 (180 days after 
enactment on October 10, 2010). Mail-order distributors must be self-
certified before they can sell scheduled listed chemical products. Such 
self-certification must be consistent with the criteria established for 
certifications of regulated sellers--i.e., retail stores and mobile 
retail vendors--of scheduled listed chemical products.
    To that end, and pursuant to the requirements of 21 U.S.C. 
830(e)(1)(B)(ii)(II), DEA is requiring that each mail-order distributor 
must be self-certified at each place of business at which they sell 
these products at retail. For a mail-order distributor, this would mean 
that each location that prepares or packages product for distribution 
to customers, and each location where employees accept payment for such 
sales, must be self-certified.
    Pursuant to the requirements of 21 U.S.C. 830(e)(1)(B)(iii)(I) 
pertaining to regulated sellers, the self-certification for mail-order 
distributors is required to take place via the Internet on DEA's Web 
site. Self-certification includes a statement that the mail-order 
distributors understand the requirements and agree to comply with them. 
MEA also makes it unlawful to negligently fail to self-certify as 
required under 21 U.S.C. 830, by an amendment to 21 U.S.C. 842(a)(10). 
Public Law 111-268, Sec. 5. This applies to regulated sellers and mail-
order distributors.
    The MEA also includes a provision which states that ``[t]he 
Attorney General shall by regulation establish criteria for 
certifications of mail-order distributors that are consistent with the 
criteria established for the certifications of regulated sellers under 
paragraph (1)(B).'' 21 U.S.C. 830(e)(2)(C), as amended by Public Law 
111-268, Sec. 2. This means that mail-order distributors are now 
required to train their employees prior to self certification.

Provisions of the Combat Methamphetamine Enhancement Act of 2010

    Prior to MEA, mail-order distributors of scheduled listed chemical 
products, which covered any sale where the product is shipped using the 
Postal Service or any private or commercial carrier, did not have to 
self-certify. They did have to file monthly reports of all sales of 
scheduled listed chemical products with DEA, and they were required to 
verify the identity of their customer before shipping scheduled listed 
chemical products. 21 U.S.C. 830(b)(3) and 830(e)(2)(A).
    Sales of scheduled listed chemical products by mail-order 
distributors. MEA requires that on and after April 10, 2011, a mail-
order distributor must not sell scheduled listed chemical products at 
retail unless it has self-certified to DEA, through DEA's Web site. The 
self-certification requires the mail-order distributor to confirm the 
following:
     Its employees who will be engaged in the sale of scheduled 
listed chemical products have undergone training regarding provisions 
of the Combat Methamphetamine Epidemic Act of 2005 (CMEA).
     Records of the training are maintained.
     Sales to individuals do not exceed 3.6 grams of ephedrine, 
pseudoephedrine, or phenylpropanolamine per day. For mail-order 
distributors, sales to individuals do not exceed 7.5 grams of 
ephedrine, pseudoephedrine, or phenylpropanolamine per 30-day period.
     Nonliquid forms are packaged as required. The mail-order 
distributor must train its employees and self-certify before either the 
mail-order distributor or individual employees may sell scheduled 
listed chemical products. The law governing self-certification of mail-
order distributors does not explicitly make such certifications subject 
to 18 U.S.C. 1001, as is the case for regulated sellers whose sales are 
limited almost exclusively to face-to-face retail transactions. Compare 
21 U.S.C. 830(e)(1)(B) to 830(e)(2)(C). However, a mail-order 
distributor who knowingly or willfully self-certifies to facts that are 
not true is subject to fines and imprisonment by virtue of general 
applicability of 18 U.S.C. 1001. Also, when Congress directed that 
regulations of the Attorney General establish criteria for the 
certification of mail-order distributors ``that are consistent with the 
criteria established for the certification of regulated sellers under 
paragraph (1)(B),'' it must have intended that this Federal false 
statements statute apply.
    Training. DEA has developed training that it has made available on 
its Web site (http://www.deadiversion.usdoj.gov). Employers must use 
the content of this training in the training of their employees who 
sell scheduled listed chemical products. An employer may include 
content in addition to DEA's content, but DEA's content must be 
included in the training. For example, a mail-order distributor may 
elect to incorporate DEA's content into initial training for new 
employees.
    Training records. On and after April 10, 2011, each employee of a 
mail-order distributor who is responsible for delivering scheduled 
listed chemical products to purchasers or who deals directly with 
purchasers by obtaining payment for the scheduled listed chemical 
products must undergo training and must sign an acknowledgement of 
training received prior to selling scheduled listed chemical products. 
This record must be kept in the employee's personnel file.
    Self-certification. MEA adds the requirement that mail-order 
distributors

[[Page 20521]]

self-certify with DEA. As noted previously, MEA also makes it unlawful 
for mail-order distributors to negligently fail to self-certify as 
required under 21 U.S.C. 830.
    On and after April 10, 2011, under the requirements of MEA, mail-
order distributors who sell at retail must self-certify to DEA as 
described above. DEA has established a Web page that will allow mail-
order distributors of scheduled listed chemical products to complete 
the self-certification online and submit it to DEA electronically. A 
self-certification certificate will immediately be generated by DEA 
upon receipt of the application. The mail-order distributors will print 
this self-certification certificate, or if they are unable to print it, 
DEA will print and mail the certificate to the self-certifier.
    Time for self-certification. MEA requires that mail-order 
distributors self-certify by April 10, 2011. When a regulated person 
files the initial self-certification, the Administration will assign 
the regulated person to one of twelve groups. The expiration date of 
the self-certification for all regulated persons in any group will be 
the last day of the month designated for that group. In assigning a 
regulated person to a group, the Administration may select a group with 
an expiration date that is not less than 12 months or more than 23 
months from the date of self-certification. After the initial 
certification period, the regulated person must update the self-
certification annually. It is the responsibility of the mail-order 
distributor to ensure that they renew the self-certification before it 
lapses.
    Fee for self-certification. To comply with the requirement of the 
CSA that fees be set at a level to ensure the recovery of the full 
costs of operating the various aspects of the Diversion Control 
Program, DEA established an annual self-certification fee for certain 
regulated sellers selling scheduled listed chemical products at retail. 
The annual self-certification fee for regulated sellers who are not DEA 
pharmacy registrants is $21. To make regulations regarding mail-order 
distributors consistent with those for regulated sellers, the same 
self-certification fee will apply to any mail-order distributor that is 
not a DEA-registered pharmacy.
    Table 1 summarizes the requirements for mail-order distributors of 
scheduled listed chemical products that are now in place since the 
passage of the MEA.

           Table 1--Summary of Requirements by Type of Seller
------------------------------------------------------------------------
                                                Mail-order sellers
------------------------------------------------------------------------
Daily sales limit......................  3.6 gm/chemical.
30-day sales limit.....................  7.5 gm.
Blister packs..........................  Yes.
Storage................................  NA.
Logbook................................  NA.
Customer ID............................  Verify ID.
Train employees........................  Yes.
Self-Certify...........................  Yes.
Monthly reports........................  Yes.
Theft and loss reports.................  Yes.
------------------------------------------------------------------------

Discussion of the Rule

    To make the rule easier to follow for regulated sellers and mail-
order distributors, DEA previously created part 1314 that includes all 
requirements related to the sale of scheduled listed chemical products 
to end users. Subpart A contains requirements that apply to any retail 
sale. Subpart B applies to regulated sellers (retail distributors and 
mobile retail vendors). Subpart C applies to retail sales that are 
shipped by mail or private or commercial carriers, regardless of how 
those sales are ordered.
    In Subpart C, Section 1314.101 is being added to address employee 
training for mail-order distributors. Section 1314.102 is added to 
address self-certification for mail-order distributors. Section 
1314.103 covers the self-certification fee and the time of payment for 
this fee. As discussed above, DEA is setting an annual period for 
renewal of the certification. DEA has developed a page on its Web site 
that will allow mail-order distributors to complete and submit the 
self-certification form online and print out a self-certification 
certificate for their records. The information required will include 
the name and address of the location, a point of contact, and tax 
identification number.

Regulatory Certifications

Administrative Procedure Act (5 U.S.C. 553)

    The Administrative Procedure Act (APA) generally requires that 
agencies, prior to issuing a new rule, publish a Notice of Proposed 
Rulemaking in the Federal Register. However, the Combat Methamphetamine 
Enhancement Act specifically states, ``[t]he Attorney General may issue 
regulations on an interim basis as necessary to ensure the 
implementation of this Act by the effective date.'' Public Law 111-268, 
Sec. 6(b). Additionally, the APA provides that agencies may be excepted 
from this requirement when ``the agency for good cause finds (and 
incorporates the finding and a brief statement of reasons therefor in 
the rules issued) that notice and public procedure thereon are 
impracticable, unnecessary, or contrary to the public interest.'' 5 
U.S.C. 553(b)(B).
    With publication of this interim final rule, DEA is invoking this 
``good cause'' exception to the APA's notice requirement based on the 
combination of several factors. The MEA is effective 180 days after its 
passage. Mail-order distributors selling scheduled listed chemical 
products at retail must self-certify with DEA in order to continue to 
sell these products. Based on the effective date and the requirements 
of the MEA, it is impracticable for DEA to comply with the APA's notice 
and comment requirements due to the limited time involved. Were DEA not 
to publish this interim final rule with Request for Comment, mail-order 
distributors selling scheduled listed chemical products at retail would 
not be able to self-certify by the date specified in the law. As a 
result, these mail-order distributors would be forced to stop selling 
scheduled listed chemical products, or violate the law by doing so. 
Thus, DEA also finds it is contrary to the public interest to DEA to 
comply with the APA's notice and comment requirements due to the 
potential disruption of sales of scheduled listed chemical products by 
mail-order distributors.
    In light of these factors, DEA finds that ``good cause'' exists to 
issue this interim rule without engaging in traditional notice and 
comment rulemaking.

Regulatory Flexibility Act

    The Deputy Assistant Administrator, Office of Diversion Control, 
hereby certifies that this rulemaking has been drafted in accordance 
with the Regulatory Flexibility Act (5 U.S.C. 601-612). The Regulatory 
Flexibility Act (RFA) applies to rules that are subject to notice and 
comment. DEA has determined, as explained above, that public notice and 
comment are impracticable and contrary to the public interest. 
Consequently, the RFA does not apply.
    Although the RFA does not apply to this interim final rule, DEA has 
reviewed the potential impacts. DEA does not believe that it will have 
a significant economic impact on small entities. Based on reports 
filed, DEA expects that the rule will affect only 9 firms, two of which 
are not small based on the Small Business Administration's size 
standards. For the seven small firms, the only costs are the $21 annual 
fee, the time required to complete the

[[Page 20522]]

certification (0.5 hours or about $20 for a new self-certification 
application), and cost of training (0.5 hours or about $10). The cost 
of compliance for these firms, which appear to have between 5 and 25 
employees, not all of whom would need to be trained, is less than $200 
and in most cases, less than $100. The smallest mail order pharmacies 
(those with fewer than five employees) have average annual sales of $1 
million. The cost of compliance is, therefore, less than 0.1 percent of 
sales and would not impose a significant economic burden on any small 
entity.

Executive Order 12866

    The Deputy Assistant Administrator, Office of Diversion Control, 
further certifies that this rulemaking has been drafted in accordance 
with the principles in Executive Order 12866 Sec.  1(b). It has been 
determined that this is ``a significant regulatory action.'' Therefore, 
this action has been reviewed by the Office of Management and Budget. 
As discussed above, this action is codifying statutory provisions and 
involves no agency discretion. However, DEA has reviewed the potential 
benefits and costs following OMB Circular A-4.
    The time for a mail-order distributor to self-certify is estimated 
at 0.5 hours. Additionally, the time for a mail-order distributor to 
train employees is estimated at 0.5 hours. The nine affected firms 
range in size from 5 employees to more than 800. DEA assumes that the 
smallest firms will train half their employees and the two large firms 
will train 20 percent, based on the percentage of retail sales persons, 
order clerks, and order fillers to total employment in the retail mail 
order sector. The total cost of the rule is estimated to be less than 
$2,600. DEA does not expect that the rule will lead any of the firms to 
discontinue sales of the products because they are already reporting to 
DEA on these sales. The low cost of compliance is unlikely to 
discourage firms from selling the products.
    Benefits. Congress passed the MEA to better track retail sales of 
scheduled listed chemical products by requiring self-certification of 
mail-order distributors in addition to regulated sellers (retailers). 
The MEA also makes it more difficult for regulated sellers and mail-
order distributors to obtain scheduled listed chemical products from 
distributors by prohibiting distributors from selling to them if they 
have not self-certified. This leaves less opportunity for diversion at 
the retail level.
    Methamphetamine remains the primary drug produced in illicit 
laboratories within the United States. The vast majority of these 
laboratories used pharmaceutical products containing pseudoephedrine, 
ephedrine, and phenylpropanolamine as the source of precursor material.
    Conclusion. MEA's requirements will not impose an annual cost on 
the economy of $100 million or more, the standard for an economically 
significant rule under Executive Order 12866.

Executive Order 13563

    Published on January 18, 2011, Executive Order 13563 supplements 
and reaffirms the principles established in Executive Order 12866. 76 
FR 3821. The new Executive Order emphasizes the importance of public 
participation and cost-effectiveness within the context of the 
regulatory process. DEA has carefully considered the requirements of 
the Executive Order and has concluded that this rule satisfies the 
applicable requirements. Although the MEA provides authorization to 
issue rules on an interim basis in order to implement the self-
certification requirements of Section 2 of the Act, DEA has requested 
public comment in order to ensure that its regulatory process maintains 
a flexible approach and seeks the view of all persons potentially 
affected by the MEA's requirements. Further, because this rule contains 
a 60-day comment period and utilizes regulations.gov regarding its 
rulemaking docket, it complies with the specific requirements of 
Section 2(b) of the Executive Order. 76 FR 3821, 3822. Finally, DEA 
believes its rule to be cost-effective and tailored to impose the least 
possible burden. There are only 9 mail-order distributors that would be 
affected by this rule and the cost of implementation is low.

Paperwork Reduction Act of 1995

    To address the new mandates of MEA, DEA is revising an existing 
information collection ``Self-Certification, Training, and Logbooks for 
Regulated Sellers and Mail-Order Distributors of Scheduled Listed 
Chemical Products,'' Information Collection 1117-0046. MEA requires 
mail-order distributors to train any employee who will be involved in 
selling scheduled listed chemical products and to document the 
training. Mail-order distributors must also self-certify to DEA that 
all affected employees have been trained and that the mail-order 
distributor is in compliance with all provisions of the CMEA.
    The Department of Justice, Drug Enforcement Administration, has 
submitted the following information collection request to the Office of 
Management and Budget for review and clearance in accordance with 
review procedures of the Paperwork Reduction Act of 1995. The 
information collection is published to obtain comments from the public 
and affected agencies.
    All comments and suggestions, or questions regarding additional 
information, to include obtaining a copy of the information collection 
instrument with instructions, should be directed to Cathy A. Gallagher, 
Acting Chief, Liaison and Policy Section, Office of Diversion Control, 
Drug Enforcement Administration, 8701 Morrissette Drive, Springfield, 
VA 22152. Written comments and suggestions from the public and affected 
agencies concerning the collection of information are encouraged. Your 
comments on the information collection-related aspects of this rule 
should address one or more of the following four points:
     Evaluate whether the collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the collection of information, including the validity of the 
methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.

Overview of Information Collection 1117-0046

    (1) Type of Information Collection: Revision of an existing 
collection.
    (2) Title of the Form/Collection: Self-certification, Training and 
Logbooks for Regulated Sellers and Mail-Order Distributors of Scheduled 
Listed Chemical Products.
    (3) Agency form number, if any, and the applicable component of the 
Department of Justice sponsoring the collection:
    Form Number: DEA Form 597.
    Office of Diversion Control, Drug Enforcement Administration, U.S. 
Department of Justice.
    (4) Affected public who will be asked or required to respond, as 
well as a brief abstract:
    Primary: Business or other for-profit.
    Other: None.
    Abstract: The Controlled Substances Act mandates that regulated 
sellers of

[[Page 20523]]

scheduled listed chemical products maintain a written or electronic 
logbook of sales. The CSA also requires that regulated sellers and 
mail-order distributors retain a record of employee training, and 
complete a self-certification form verifying the training and 
compliance with CMEA provisions regarding retail sales of scheduled 
listed chemical products.
    (5) An estimate of the total number of respondents and the amount 
of time estimated for an average respondent to respond.
    As discussed in the previous section, DEA estimates the number of 
mail-order distributors to be around 9. The average annual burden hour 
per respondent is 1.8 hours.
    (6) An estimate of the total public burden (in hours) associated 
with the collection: 16 hours.
    The following table presents the burden hour calculations.

                                     Table 2--Estimate of Total Burden Hours
----------------------------------------------------------------------------------------------------------------
                                                                                    Number of      Total burden
                   Activity                            Unit burden hour            activities         hours
----------------------------------------------------------------------------------------------------------------
Training record..............................  0.05 hour (3 minutes)...........         410,228         20,511.4
Self-certification (regulated sellers).......  0.25 hour (15 minutes)..........          64,000         16,000
Self-certification (mail-order distributors).  0.5 hours (30 minutes)..........               9              4.5
Transaction record...........................  0.033 hour (2 minutes)..........      25,500,000        850,000
Customer time................................  0.033 hour (2 minutes)..........      25,500,000        850,000
                                              ------------------------------------------------------------------
    Total....................................  ................................  ..............      1,736,515.9
----------------------------------------------------------------------------------------------------------------

    If additional information is required contact: Lynn Murray, 
Department Clearance Officer, Information Management and Security 
Staff, Justice Management Division, Department of Justice, Two 
Constitution Square, 145 N Street, NE., Suite 2E-502, Washington, DC 
20530.

Executive Order 12988

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

Executive Order 13132

    This rulemaking does not impose enforcement responsibilities on any 
State; nor does it diminish the power of any State to enforce its own 
laws. These requirements, however, are mandated under MEA, and DEA has 
no authority to alter them or change the preemption. Accordingly, this 
rulemaking does not have federalism implications warranting the 
application of Executive Order 13132.

Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local, and 
Tribal governments, in the aggregate, or by the private sector, of 
$126,400,000 or more in any one year, and 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 rule is not a major rule as defined by section 804 of the 
Small Business Regulatory Enforcement Fairness Act of 1996 
(Congressional Review Act). This rule will not result in an annual 
effect on the economy of $100,000,000 or more. It will not cause a 
major increase in costs or prices; or significant adverse effects on 
competition, employment, investment, productivity, innovation, or on 
the ability of United States-based companies to compete with foreign-
based companies in domestic and export markets.

List of Subjects in 21 CFR Part 1314

    Drug traffic control, Reporting and recordkeeping requirements.

    For the reasons set out above, 21 CFR part 1314 is amended as 
follows:

PART 1314--RETAIL SALE OF SCHEDULED LISTED CHEMICAL PRODUCTS

0
1. The authority citation for part 1314 continues to read as follows:

    Authority: 21 U.S.C. 802, 830, 842, 871(b), 875, 877, 886a.

0
2. Section 1314.101 is added to read as follows:

Sec.  1314.101  Training of sales personnel.

    Each regulated person who makes a sale at retail of a scheduled 
listed chemical product and is required under Sec.  1310.03(c) of this 
chapter to submit a report of the sales transaction to the 
Administration must ensure that its sales of a scheduled listed 
chemical product at retail are made in accordance with the following:
    (a) In the case of individuals who are responsible for preparing 
and packaging scheduled listed chemical products for delivery to 
purchasers through the Postal Service or any private or commercial 
carrier or who deal either directly or indirectly with purchasers by 
obtaining payments for the products, the regulated person has submitted 
to the Administration a self-certification that all such individuals 
have, in accordance with criteria issued by the Administration, 
undergone training provided by the regulated person to ensure that the 
individuals understand the requirements that apply under this part.
    (b) The regulated person maintains a copy of each self-
certification and all records demonstrating that individuals referred 
to in paragraph (a) of this section have undergone the training.

0
3. Section 1314.102 is added to read as follows:

Sec.  1314.102  Self-certification.

    (a) A regulated person who makes a sale at retail of a scheduled 
listed chemical product and is required under Sec.  1310.03 of this 
chapter to submit a report of the sales transaction to the Attorney 
General must submit to the Administration the self-certification 
referred to in Sec.  1314.101(a) in order to sell any scheduled listed 
chemical product. The certification is not effective for purposes of 
this section unless, in addition to provisions regarding the training 
of individuals referred to in Sec.  1314.101(a), the certification 
includes a statement that the regulated person understands each of the 
requirements that apply in this part and agrees to comply with the 
requirements.
    (b) When a regulated person files the initial self-certification, 
the Administration will assign the regulated person to one of twelve 
groups. The expiration date of the self-certification for all regulated 
persons in any group will be the last day of the month designated for 
that group. In assigning a regulated person to a group, the 
Administration may select a group with an expiration date that is not 
less than 12 months or more than 23 months from

[[Page 20524]]

the date of self-certification. After the initial certification period, 
the regulated person must update the self-certification annually.
    (c) The regulated person who makes a sale at retail of a scheduled 
listed chemical product and is required under Sec.  1310.03 of this 
chapter to submit a report of the sales transaction to the Attorney 
General must provide a separate certification for each place of 
business at which the regulated person sells scheduled listed chemical 
products at retail.

0
4. Section 1314.103 is added to read as follows:

Sec.  1314.103  Self-certification fee; time and method of fee payment.

    (a) Each regulated person who makes a sale at retail of a scheduled 
listed chemical product and is required under Sec.  1310.03 of this 
chapter to submit a report of the sales transaction to the 
Administration must pay a fee for each self-certification. For each 
initial application to self-certify, and for the renewal of each 
existing self-certification, a regulated seller shall pay a fee of $21.
    (b) The fee for self-certification shall be waived for any person 
holding a current, DEA registration in good standing as a pharmacy to 
dispense controlled substances.
    (c) A regulated person shall pay the fee at the time of self-
certification.
    (d) Payment shall be made by credit card.
    (e) The self-certification fee is not refundable.

    Dated: April 8, 2011.
Joseph T. Rannazzisi,
Deputy Assistant Administrator, Office of Diversion Control.
[FR Doc. 2011-9016 Filed 4-12-11; 8:45 am]
BILLING CODE 4410-09-P
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