IB 
Union Calendar No. 167
108TH CONGRESS 
1ST SESSION H. R. 1260
[Report No. 108–287] 
To amend the Federal Food, Drug, and Cosmetic Act to establish a program 
of fees relating to animal drugs. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2003
Mr. UPTON (for himself, Ms. DEGETTE, Mr. GREENWOOD, Mr. TOWNS, Mr. 
BILIRAKIS, and Mr. JOHN) introduced the following bill; which was re-
ferred to the Committee on Energy and Commerce 
SEPTEMBER 30, 2003
Additional sponsors: Mr. OTTER, Mr. PICKERING, Mr. WHITFIELD, Mr. 
GILCHREST, Mr. BOSWELL, Mr. ROGERS of Michigan, Mr. PUTNAM, Mr. 
DEAL of Georgia, Mr. SOUDER, Mr. TERRY, Mr. BOUCHER, Mr. MORAN 
of Kansas, Mr. THORNBERRY, Mr. CHOCOLA, and Mr. GOODLATTE 
SEPTEMBER 30, 2003
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To amend the Federal Food, Drug, and Cosmetic Act to 
establish a program of fees relating to animal drugs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Animal Drug User Fee 
Act of 2003’’. 
SEC. 2. FINDINGS. 
Congress finds as follows: 
(1) Prompt approval of safe and effective new 
animal drugs is critical to the improvement of ani-
mal health and the public health. 
(2) Animal health and the public health will be 
served by making additional funds available for the 
purpose of augmenting the resources of the Food 
and Drug Administration that are devoted to the 
process for review of new animal drug applications. 
(3) The fees authorized by this title will be 
dedicated toward expediting the animal drug devel-
opment process and the review of new and supple-
mental animal drug applications and investigational 
animal drug submissions as set forth in the goals 
identified, for purposes of part 4 of subchapter C of 
chapter VII of the Federal Food, Drug, and Cos-
metic Act, in the letters from the Secretary of 
Health and Human Services to the Chairman of the 
Committee on Energy and Commerce of the House 
of Representatives and the Chairman of the Com-
mittee on Health, Education, Labor, and Pensions
of the Senate as set forth in the Congressional 
Record. 
SEC. 3. FEES RELATING TO ANIMAL DRUGS. 
Subchapter C of chapter VII of the Federal Food, 
Drug and Cosmetic Act (21 U.S.C. 379f et seq.) is amend-
ed by adding at the end the following part: 
‘‘PART 4—FEES RELATING TO ANIMAL DRUGS 
‘‘SEC. 739. DEFINITIONS. 
‘‘For purposes of this subchapter: 
‘‘(1) The term ‘animal drug application’ means 
an application for approval of any new animal drug 
submitted under section 512(b)(1). Such term does 
not include either a new animal drug application 
submitted under section 512(b)(2) or a supplemental 
animal drug application. 
‘‘(2) The term ‘supplemental animal drug appli-
cation’ means—
‘‘(A) a request to the Secretary to approve 
a change in an animal drug application which 
has been approved; or 
‘‘(B) a request to the Secretary to approve 
a change to an application approved under sec-
tion 512(c)(2) for which data with respect to 
safety or effectiveness are required.
‘‘(3) The term ‘animal drug product’ means 
each specific strength or potency of a particular ac-
tive ingredient or ingredients in final dosage form 
marketed by a particular manufacturer or dis-
tributor, which is uniquely identified by the labeler 
code and product code portions of the national drug 
code, and for which an animal drug application or 
a supplemental animal drug application has been ap-
proved. 
‘‘(4) The term ‘animal drug establishment’ 
means a foreign or domestic place of business which 
is at one general physical location consisting of one 
or more buildings all of which are within 5 miles of 
each other, at which one or more animal drug prod-
ucts are manufactured in final dosage form. 
‘‘(5) The term ‘investigational animal drug sub-
mission’ means—
‘‘(A) the filing of a claim for an investiga-
tional exemption under section 512(j) for a new 
animal drug intended to be the subject of an 
animal drug application or a supplemental ani-
mal drug application, or 
‘‘(B) the submission of information for the 
purpose of enabling the Secretary to evaluate 
the safety or effectiveness of an animal drug
application or supplemental animal drug appli-
cation in the event of their filing. 
‘‘(6) The term ‘animal drug sponsor’ means ei-
ther an applicant named in an animal drug applica-
tion, except for an approved application for which all 
subject products have been removed from listing 
under section 510, or a person who has submitted 
an investigational animal drug submission that has 
not been terminated or otherwise rendered inactive 
by the Secretary. 
‘‘(7) The term ‘final dosage form’ means, with 
respect to an animal drug product, a finished dosage 
form which is approved for administration to an ani-
mal without substantial further manufacturing. Such 
term includes animal drug products intended for 
mixing in animal feeds. 
‘‘(8) The term ‘process for the review of animal 
drug applications’ means the following activities of 
the Secretary with respect to the review of animal 
drug applications, supplemental animal drug applica-
tions, and investigational animal drug submissions: 
‘‘(A) The activities necessary for the re-
view of animal drug applications, supplemental 
animal drug applications, and investigational 
animal drug submissions.
‘‘(B) The issuance of action letters which 
approve animal drug applications or supple-
mental animal drug applications or which set 
forth in detail the specific deficiencies in animal
drug applications, supplemental animal drug 
applications, or investigational animal drug sub-
missions and, where appropriate, the actions 
necessary to place such applications, supple-
ments or submissions in condition for approval. 
‘‘(C) The inspection of animal drug estab-
lishments and other facilities undertaken as 
part of the Secretary’s review of pending animal 
drug applications, supplemental animal drug 
applications, and investigational animal drug 
submissions. 
‘‘(D) Monitoring of research conducted in 
connection with the review of animal drug ap-
plications, supplemental animal drug applica-
tions, and investigational animal drug submis-
sions. 
‘‘(E) The development of regulations and 
policy related to the review of animal drug ap-
plications, supplemental animal drug applica-
tions, and investigational animal drug submis-
sions.
‘‘(F) Development of standards for prod-
ucts subject to review. 
‘‘(G) Meetings between the agency and the 
animal drug sponsor. 
‘‘(H) Review of advertising and labeling 
prior to approval of an animal drug application 
or supplemental animal drug application, but 
not such activities after an animal drug has 
been approved. 
‘‘(9) The term ‘costs of resources allocated for 
the process for the review of animal drug applica-
tions’ means the expenses incurred in connection 
with the process for the review of animal drug appli-
cations for—
‘‘(A) officers and employees of the Food 
and Drug Administration, contractors of the 
Food and Drug Administration, advisory com-
mittees consulted with respect to the review of 
specific animal drug applications, supplemental 
animal drug applications, or investigational ani-
mal drug submissions, and costs related to such 
officers, employees, committees, and contrac-
tors, including costs for travel, education, and 
recruitment and other personnel activities,
‘‘(B) management of information, and the 
acquisition, maintenance, and repair of com-
puter resources, 
‘‘(C) leasing, maintenance, renovation, and 
repair of facilities and acquisition, maintenance, 
and repair of fixtures, furniture, scientific 
equipment, and other necessary materials and 
supplies, and 
‘‘(D) collecting fees under section 740 and 
accounting for resources allocated for the re-
view of animal drug applications, supplemental 
animal drug applications, and investigational 
animal drug submissions. 
‘‘(10) The term ‘adjustment factor’ applicable 
to a fiscal year refers to the formula set forth in sec-
tion 735(8) with the base or comparator year being 
2003. 
‘‘(11) The term ‘affiliate’ refers to the defini-
tion set forth in section 735(9). 
‘‘SEC. 740. AUTHORITY TO ASSESS AND USE ANIMAL DRUG 
FEES. 
‘‘(a) TYPES
OF FEES.—Beginning in fiscal year 
2004, the Secretary shall assess and collect fees in accord-
ance with this section as follows:
‘‘(1) ANIMAL DRUG APPLICATION AND SUPPLE-
MENT FEE.—
‘‘(A) IN GENERAL.—Each person that sub-
mits, on or after September 1, 2003, an animal 
drug application or a supplemental animal drug 
application shall be subject to a fee as follows: 
‘‘(i) A fee established in subsection 
(b) for an animal drug application; and 
‘‘(ii) A fee established in subsection 
(b) for a supplemental animal drug appli-
cation for which safety or effectiveness 
data are required, in an amount that is 
equal to 50 percent of the amount of the 
fee under clause (i). 
‘‘(B) PAYMENT.—The fee required by sub-
paragraph (A) shall be due upon submission of 
the animal drug application or supplemental 
animal drug application. 
‘‘(C) EXCEPTION FOR PREVIOUSLY FILED 
APPLICATION OR SUPPLEMENT.—If an animal 
drug application or a supplemental animal drug 
application was submitted by a person that paid 
the fee for such application or supplement, was 
accepted for filing, and was not approved or 
was withdrawn (without a waiver or refund),
the submission of an animal drug application or 
a supplemental animal drug application for the 
same product by the same person (or the per-
son’s licensee, assignee, or successor) shall not 
be subject to a fee under subparagraph (A). 
‘‘(D) REFUND OF FEE IF APPLICATION RE-
FUSED FOR FILING.—The Secretary shall re-
fund 75 percent of the fee paid under subpara-
graph (B) for any animal drug application or 
supplemental animal drug application which is 
refused for filing. 
‘‘(E) REFUND
OF
FEE
IF
APPLICATION 
WITHDRAWN.—If an animal drug application or 
a supplemental animal drug application is with-
drawn after the application or supplement was 
filed, the Secretary may refund the fee or por-
tion of the fee paid under subparagraph B if no 
substantial work was performed on the applica-
tion or supplement after the application or sup-
plement was filed. The Secretary shall have the 
sole discretion to refund the fee under this 
paragraph. A determination by the Secretary 
concerning a refund under this paragraph shall 
not be reviewable.
‘‘(2) ANIMAL DRUG PRODUCT FEE.—Each per-
son—
‘‘(A) who is named as the applicant in an 
animal drug application or supplemental animal 
drug application for an animal drug product
which has been submitted for listing under sec-
tion 510, and 
‘‘(B) who, after September 1, 2003, had 
pending before the Secretary an animal drug 
application or supplemental animal drug appli-
cation; 
shall pay for each such animal drug product the an-
nual fee established in subsection (b). Such fee shall 
be payable for the fiscal year in which the animal 
drug product is first submitted for listing under sec-
tion 510, or is submitted for relisting under section 
510 if the animal drug product has been withdrawn 
from listing and relisted. After such fee is paid for 
that fiscal year, such fee shall be payable on or be-
fore January 31 of each year. Such fee shall be paid 
only once for each animal drug product for a fiscal 
year in which the fee is payable. 
‘‘(3) ANIMAL
DRUG
ESTABLISHMENT
FEE.—
Each person—
‘‘(A) who owns or operates, directly or 
through an affiliate, an animal drug establish-
ment, and 
‘‘(B) who is named as the applicant in an 
animal drug application or supplemental animal 
drug application for an animal drug product 
which has been submitted for listing under sec-
tion 510, and 
‘‘(C) who, after September 1, 2003, had 
pending before the Secretary an animal drug 
application or supplemental animal drug appli-
cation, 
shall be assessed an annual fee established in sub-
section (b) for each animal drug establishment listed 
in its approved animal drug application as an estab-
lishment that manufactures the animal drug product 
named in the application. The annual establishment 
fee shall be assessed in each fiscal year in which the 
animal drug product named in the application is as-
sessed a fee under paragraph (2) unless the animal 
drug establishment listed in the application does not 
engage in the manufacture of the animal drug prod-
uct during the fiscal year. The fee shall be paid on 
or before January 31 of each year. The establish-
ment shall be assessed only one fee per fiscal year
under this section, provided, however, that where a 
single establishment manufactures both animal drug 
products and prescription drug products, as defined 
in section 735(3), such establishment shall be as-
sessed both the animal drug establishment fee and 
the prescription drug establishment fee, as set forth 
in section 736(a)(2), within a single fiscal year. 
‘‘(4) ANIMAL DRUG SPONSOR FEE.—Each per-
son—
‘‘(A) who meets the definition of an animal 
drug sponsor within a fiscal year; and 
‘‘(B) who, after September 1, 2003, had 
pending before the Secretary an animal drug 
application, a supplemental animal drug appli-
cation, or an investigational animal drug sub-
mission, 
shall be assessed an annual fee established under 
subsection (b). The fee shall be paid on or before 
January 31 of each year. Each animal drug sponsor 
shall pay only one such fee each fiscal year. 
‘‘(b) FEE AMOUNTS.—Except as provided in sub-
section (a)(1) and subsections (c), (d), (f), and (g), the 
fees required under subsection (a) shall be established to 
generate fee revenue amounts as follows:
‘‘(1) TOTAL FEE REVENUES FOR APPLICATION 
AND SUPPLEMENT FEES.—The total fee revenues to 
be collected in animal drug application fees under 
subsection (a)(1)(A)(i) and supplemental animal 
drug application fees under subsection (a)(1)(A)(ii) 
shall be $1,250,000 in fiscal year 2004, $2,000,000 
in fiscal year 2005, and $2,500,000 in fiscal years 
2006, 2007, and 2008. 
‘‘(2) TOTAL
FEE
REVENUES
FOR
PRODUCT 
FEES.—The total fee revenues to be collected in 
product fees under subsection (a)(2) shall be 
$1,250,000 in fiscal year 2004, $2,000,000 in fiscal 
year 2005, and $2,500,000 in fiscal years 2006, 
2007, and 2008. 
‘‘(3) TOTAL FEE REVENUES FOR ESTABLISH-
MENT FEES.—The total fee revenues to be collected 
in establishment fees under subsection (a)(3) shall 
be $1,250,000 in fiscal year 2004, $2,000,000 in fis-
cal year 2005, and $2,500,000 in fiscal years 2006, 
2007, and 2008. 
‘‘(4) TOTAL
FEE
REVENUES
FOR
SPONSOR 
FEES.—The total fee revenues to be collected in 
sponsor fees under subsection (a)(4) shall be 
$1,250,000 in fiscal year 2004, $2,000,000 in fiscal
year 2005, and $2,500,000 in fiscal years 2006, 
2007, and 2008. 
‘‘(c) ADJUSTMENTS.—
‘‘(1) INFLATION ADJUSTMENT.—The revenues 
established in subsection (b) shall be adjusted by the 
Secretary by notice, published in the Federal Reg-
ister, for a fiscal year to reflect the greater of—
‘‘(A) the total percentage change that oc-
curred in the Consumer Price Index for all 
urban consumers (all items; United States city 
average) for the 12-month period ending June 
30 preceding the fiscal year for which fees are 
being established; or 
‘‘(B) the total percentage change for the 
previous fiscal year in basic pay under the Gen-
eral Schedule in accordance with section 5332 
of title 5, United States Code, as adjusted by 
any locality-based comparability payment pur-
suant to section 5304 of such title for Federal 
employees stationed in the District of Columbia. 
The adjustment made each fiscal year by this sub-
section will be added on a compounded basis to the 
sum of all adjustments made each fiscal year after 
fiscal year 2004 under this subsection.
‘‘(3) FINAL
YEAR
ADJUSTMENT.—For fiscal 
year 2008, the Secretary may further increase the 
fees to provide for up to 3 months of operating re-
serves of carryover user fees for the process for the 
review of animal drug applications for the first 3 
months of fiscal year 2009. If the Food and Drug 
Administration has carryover balances for the proc-
ess for the review of animal drug applications in ex-
cess of 3 months of such operating reserves, then 
this adjustment will not be made. If this adjustment 
is necessary, then the rationale for the amount of 
the increase shall be contained in the annual notice 
setting fees for fiscal year 2008. 
‘‘(4) ANNUAL
FEE
SETTING.—The Secretary 
shall establish, 60 days before the start of each fis-
cal year beginning after September 30, 2003, for 
that fiscal year, animal drug application fees, sup-
plemental animal drug application fees, animal drug 
sponsor fees, animal drug establishment fees, and 
animal drug product fees based on the revenue 
amounts established under subsection (b) and the 
adjustments provided under this subsection. 
‘‘(5) LIMIT.—The total amount of fees charged, 
as adjusted under this subsection, for a fiscal year 
may not exceed the total costs for such fiscal year
for the resources allocated for the process for the re-
view of animal drug applications. 
‘‘(d) FEE WAIVER OR REDUCTION.—
‘‘(1) IN GENERAL.—The Secretary shall grant a 
waiver from or a reduction of 1 or more fees as-
sessed under subsection (a) where the Secretary 
finds that—
‘‘(A) the assessment of the fee would 
present a significant barrier to innovation be-
cause of limited resources available to such per-
son or other circumstances, 
‘‘(B) the fees to be paid by such person 
will exceed the anticipated present and future 
costs incurred by the Secretary in conducting 
the process for the review of animal drug appli-
cations for such person, 
‘‘(C) the animal drug application or sup-
plemental animal drug application is intended 
solely to provide for use of the animal drug 
in—
‘‘(i) a Type B medicated feed (as de-
fined in section 558.3(b)(3) of title 21, 
Code of Federal Regulations (or any suc-
cessor regulation)) intended for use in the
manufacture of Type C free-choice medi-
cated feeds, or 
‘‘(ii) a Type C free-choice medicated 
feed (as defined in section 558.3(b)(4) of 
title 21, Code of Federal Regulations (or 
any successor regulation)), 
‘‘(D) the animal drug application or sup-
plemental animal drug application is intended 
solely to provide for a minor use or minor spe-
cies indication, or 
‘‘(E) the sponsor involved is a small busi-
ness submitting its first animal drug applica-
tion to the Secretary for review. 
‘‘(2) USE OF STANDARD COSTS.—In making the 
finding in paragraph (1)(B), the Secretary may use 
standard costs. 
‘‘(3) RULES FOR SMALL BUSINESSES.—
‘‘(A) DEFINITION.—In paragraph (1)(E), 
the term ‘small business’ means an entity that 
has fewer than 500 employees, including em-
ployees of affiliates. 
‘‘(B) WAIVER OF APPLICATION FEE.—The 
Secretary shall waive under paragraph (1)(E) 
the application fee for the first animal drug ap-
plication that a small business or its affiliate
submits to the Secretary for review. After a 
small business or its affiliate is granted such a 
waiver, the small business or its affiliate shall 
pay application fees for all subsequent animal 
drug applications and supplemental animal 
drug applications for which safety or effective-
ness data are required in the same manner as 
an entity that does not qualify as a small busi-
ness. 
‘‘(C) CERTIFICATION.—The Secretary shall 
require any person who applies for a waiver 
under paragraph (1)(E) to certify their quali-
fication for the waiver. The Secretary shall peri-
odically publish in the Federal Register a list of 
persons making such certifications. 
‘‘(e) EFFECT OF FAILURE TO PAY FEES.—An ani-
mal drug application or supplemental animal drug applica-
tion submitted by a person subject to fees under sub-
section (a) shall be considered incomplete and shall not 
be accepted for filing by the Secretary until all fees owed 
by such person have been paid. An investigational animal 
drug submission under section 739(5)(B) that is sub-
mitted by a person subject to fees under subsection (a) 
shall be considered incomplete and shall not be accepted 
for review by the Secretary until all fees owed by such
person have been paid. The Secretary may discontinue re-
view of any animal drug application, supplemental animal 
drug application or investigational animal drug submission 
from a person if such person has not submitted for pay-
ment all fees owed under this section by 30 days after 
the date upon which they are due. 
‘‘(f) ASSESSMENT OF FEES.—
‘‘(1) LIMITATION.—Fees may not be assessed 
under subsection (a) for a fiscal year beginning after 
fiscal year 2003 unless appropriations for salaries 
and expenses of the Food and Drug Administration 
for such fiscal year (excluding the amount of fees 
appropriated for such fiscal year) are equal to or 
greater than the amount of appropriations for the 
salaries and expenses of the Food and Drug Admin-
istration for the fiscal year 2003 (excluding the 
amount of fees appropriated for such fiscal year) 
multiplied by the adjustment factor applicable to the 
fiscal year involved. 
‘‘(2) AUTHORITY.—If the Secretary does not 
assess fees under subsection (a) during any portion 
of a fiscal year because of paragraph (1) and if at 
a later date in such fiscal year the Secretary may as-
sess such fees, the Secretary may assess and collect 
such fees, without any modification in the rate, for
animal drug applications, supplemental animal drug 
applications, investigational animal drug submis-
sions, sponsors, animal drug establishments and ani-
mal drug products at any time in such fiscal year 
notwithstanding the provisions of subsection (a) re-
lating to the date fees are to be paid. 
‘‘(g) CREDITING AND AVAILABILITY OF FEES.—
‘‘(1) IN GENERAL.—Fees authorized under sub-
section (a) shall be collected and available for obliga-
tion only to the extent and in the amount provided 
in advance in appropriations Acts. Such fees are au-
thorized to be appropriated to remain available until 
expended. Such sums as may be necessary may be 
transferred from the Food and Drug Administration 
salaries and expenses appropriation account without 
fiscal year limitation to such appropriation account 
for salary and expenses with such fiscal year limita-
tion. The sums transferred shall be available solely 
for the process for the review of animal drug appli-
cations. 
‘‘(2) 
COLLECTIONS
AND
APPROPRIATION 
ACTS.—
‘‘(A) IN
GENERAL.—The fees authorized 
by this section—
‘‘(i) shall be retained in each fiscal 
year in an amount not to exceed the 
amount specified in appropriation Acts, or 
otherwise made available for obligation for 
such fiscal year, and 
‘‘(ii) shall only be collected and avail-
able to defray increases in the costs of the 
resources allocated for the process for the 
review of animal drug applications (includ-
ing increases in such costs for an addi-
tional number of full-time equivalent posi-
tions in the Department of Health and 
Human Services to be engaged in such 
process) over such costs, excluding costs 
paid from fees collected under this section, 
for fiscal year 2003 multiplied by the ad-
justment factor. 
‘‘(B) COMPLIANCE.—The Secretary shall 
be considered to have met the requirements of 
subparagraph (A)(ii) in any fiscal year if the 
costs funded by appropriations and allocated for 
the process for the review of animal drug appli-
cations—
‘‘(i) are not more than 3 percent 
below the level specified in subparagraph 
(A)(ii); or 
‘‘(ii)(I) are more than 3 percent below 
the level specified in subparagraph (A)(ii), 
and fees assessed for the fiscal year fol-
lowing the subsequent fiscal year are de-
creased by the amount in excess of 3 per-
cent by which such costs fell below the 
level specified in subparagraph (A)(ii); and 
‘‘(II) such costs are not more than 5 
percent below the level specified in sub-
paragraph (A)(ii). 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for fees 
under this section—
‘‘(A) $5,000,000 for fiscal year 2004; 
‘‘(B) $8,000,000 for fiscal year 2005; 
‘‘(C) $10,000,000 for fiscal year 2006; 
‘‘(D) $10,000,000 for fiscal year 2007; 
and 
‘‘(E) $10,000,000 for fiscal year 2008; 
as adjusted to reflect adjustments in the total fee 
revenues made under this section and changes in the 
total amounts collected by animal drug application
fees, supplemental animal drug application fees, ani-
mal drug sponsor fees, animal drug establishment 
fees, and animal drug product fees. 
‘‘(4) OFFSET.—Any amount of fees collected 
for a fiscal year under this section that exceeds the 
amount of fees specified in appropriations Acts for 
such fiscal year shall be credited to the appropria-
tion account of the Food and Drug Administration 
as provided in paragraph (1), and shall be sub-
tracted from the amount of fees that would other-
wise be authorized to be collected under this section 
pursuant to appropriation Acts for a subsequent fis-
cal year. 
‘‘(h) COLLECTION OF UNPAID FEES.—In any case 
where the Secretary does not receive payment of a fee as-
sessed under subsection (a) within 30 days after it is due, 
such fee shall be treated as a claim of the United States 
Government subject to subchapter II of chapter 37 of title 
31, United States Code. 
‘‘(i) WRITTEN REQUESTS
FOR WAIVERS, REDUC-
TIONS, AND REFUNDS.—To qualify for consideration for 
a waiver or reduction under subsection (d), or for a refund 
of any fee collected in accordance with subsection (a), a 
person shall submit to the Secretary a written request for
such waiver, reduction, or refund not later than 180 days 
after such fee is due. 
‘‘(j) CONSTRUCTION.—This section may not be con-
strued to require that the number of full-time equivalent 
positions in the Department of Health and Human Serv-
ices, for officers, employees, and advisory committees not 
engaged in the process of the review of animal drug appli-
cations, be reduced to offset the number of officers, em-
ployees, and advisory committees so engaged. 
‘‘(k) ABBREVIATED NEW ANIMAL DRUG APPLICA-
TIONS.—The Secretary shall—
‘‘(1) to the extent practicable, segregate the re-
view of abbreviated new animal drug applications 
from the process for the review of animal drug appli-
cations, and 
‘‘(2) adopt other administrative procedures to 
ensure that review times of abbreviated new animal 
drug applications do not increase from their current 
level due to activities under the user fee program.’’. 
SEC. 4. ACCOUNTABILITY AND REPORTS. 
(a) PUBLIC ACCOUNTABILITY.— 
(1) 
CONSULTATION.—In 
developing 
rec-
ommendations to Congress for the goals and plans 
for meeting the goals for the process for the review 
of animal drug applications for the fiscal years after
fiscal year 2008, and for the reauthorization of sec-
tions 739 and 740 of the Federal Food, Drug, and 
Cosmetic Act (as added by section 3), the Secretary 
of Health and Human Services (referred to in this 
section as the ‘‘Secretary’’) shall consult with the 
Committee on Energy and Commerce of the House 
of Representatives, the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate, appro-
priate scientific and academic experts, veterinary 
professionals, representatives of consumer advocacy 
groups, and the regulated industry. 
(2) 
RECOMMENDATIONS.—The 
Secretary 
shall—
(A) publish in the Federal Register rec-
ommendations under paragraph (1), after nego-
tiations with the regulated industry; 
(B) present the recommendations to the 
Committees referred to in that paragraph; 
(C) hold a meeting at which the public 
may comment on the recommendations; and 
(D) provide for a period of 30 days for the 
public to provide written comments on the rec-
ommendations. 
(b) PERFORMANCE REPORTS.—Beginning with fiscal 
year 2004, not later than 60 days after the end of each
fiscal year during which fees are collected under part 4 
of subchapter C of chapter VII of the Federal Food, Drug, 
and Cosmetic Act, the Secretary shall prepare and submit 
to the Committee on Energy and Commerce of the House 
of Representatives and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate a report con-
cerning the progress of the Food and Drug Administration 
in achieving the goals identified in the letters described 
in section 2(3) of this Act toward expediting the animal 
drug development process and the review of the new and 
supplemental animal drug applications and investigational 
animal drug submissions during such fiscal year, the fu-
ture plans of the Food and Drug Administration for meet-
ing the goals, the review times for abbreviated new animal 
drug applications, and the administrative procedures 
adopted by the Food and Drug Administration to ensure 
that review times for abbreviated new animal drug applica-
tions are not increased from their current level due to ac-
tivities under the user fee program. 
(c) FISCAL REPORT.—Beginning with fiscal year 
2004, not later than 120 days after the end of each fiscal 
year during which fees are collected under the part de-
scribed in subsection (a), the Secretary shall prepare and 
submit to the Committee on Energy and Commerce of the 
House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate a report 
on the implementation of the authority for such fees dur-
ing such fiscal year and the use, by the Food and Drug 
Administration, of the fees collected during such fiscal 
year for which the report is made. 
SEC. 5. SUNSET. 
The amendments made by section 3 shall not be in 
effect after October 1, 2008, and section 4 shall not be 
in effect after 120 days after such date.