[Title 21 CFR 1301]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[Title 21 - FOOD AND DRUGS]
[Chapter II - DRUG ENFORCEMENT ADMINISTRATION, DEPARTMENT OF JUSTICE]
[Part 1301 - REGISTRATION OF MANUFACTURERS, DISTRIBUTORS, AND DISPENSERS OF CONTROLLED SUBSTANCES]
[From the U.S. Government Printing Office]


21FOOD AND DRUGS92002-04-012002-04-01falseREGISTRATION OF MANUFACTURERS, DISTRIBUTORS, AND DISPENSERS OF CONTROLLED SUBSTANCES1301PART 1301FOOD AND DRUGSDRUG ENFORCEMENT ADMINISTRATION, DEPARTMENT OF JUSTICE
PART 1301--REGISTRATION OF MANUFACTURERS, DISTRIBUTORS, AND DISPENSERS OF CONTROLLED SUBSTANCES--Table of Contents




                           General Information

Sec.
1301.01 Scope of this part 1301.
1301.02 Definitions.
1301.03 Information; special instructions.

                              Registration

1301.11 Persons required to register.
1301.12 Separate registrations for separate locations.
1301.13 Application for registration; time for application; expiration 
          date; registration for independent activities; application 
          forms, fees, contents and signature; coincident activities.
1301.14 Filing of application; acceptance for filing; defective 
          applications.
1301.15 Additional information.
1301.16 Amendments to and withdrawal of applications.
1301.17 Special procedures for certain applications.
1301.18 Research protocols.

                   Exceptions to Registration and Fees

1301.21 Exception from fees.
1301.22 Exemption of agents and employees; affiliated practitioners.
1301.23 Exemption of certain military and other personnel.
1301.24 Exemption of law enforcement officials.
1301.25 Registration regarding ocean vessels, aircraft, and other 
          entities.
1301.26 Exemptions from import or export requirements for personal 
          medical use.

  Action on Application for Registration: Revocation or Suspension of 
                              Registration

1301.31 Administrative review generally.
1301.32 Action on applications for research in Schedule I substances.
1301.33 Application for bulk manufacture of Schedule I and II 
          substances.
1301.34 Application for importation of Schedule I and II substances.
1301.35 Certificate of registration; denial of registration.
1301.36 Suspension or revocation of registration; suspension of 
          registration pending final order; extension of registration 
          pending final order.
1301.37 Order to show cause.

                                Hearings

1301.41 Hearings generally.
1301.42 Purpose of hearing.
1301.43 Request for hearing or appearance; waiver.
1301.44 Burden of proof.
1301.45 Time and place of hearing.
1301.46 Final order.

         Modification, Transfer, and Termination of Registration

1301.51 Modification in registration.
1301.52 Termination of registration; transfer of registration; 
          distribution upon discontinuance of business.

                          Security Requirements

1301.71 Security requirements generally.
1301.72 Physical security controls for nonpractitioners; narcotic 
          treatment programs and compounders for narcotic treatment 
          programs; storage areas.
1301.73 Physical security controls for nonpractitioners; compounders for 
          narcotic treatment programs; manufacturing and compounding 
          areas.
1301.74 Other security controls for nonpractitioners; narcotic treatment 
          programs and compounders for narcotic treatment programs.
1301.75 Physical security controls for practitioners.
1301.76 Other security controls for practitioners.
1301.77 Security controls for freight forwarding facilities.

                  Employee Screening--Non-Practitioners

1301.90 Employee screening procedures.
1301.91 Employee responsibility to report drug diversion.
1301.92 Illicit activities by employees.
1301.93 Sources of information for employee checks.

    Authority: 21 U.S.C. 821, 822, 823, 824, 871(b), 875, 877.

[[Page 14]]


    Source: 36 FR 7778, Apr. 24, 1971, unless otherwise noted. 
Redesignated at 38 FR 26609, Sept. 24, 1973.

                           General Information



Sec. 1301.01  Scope of this part 1301.

    Procedures governing the registration of manufacturers, 
distributors, dispensers, importers, and exporters of controlled 
substances pursuant to sections 301-304 and 1007-1008 of the Act (21 
U.S.C. 821-824 and 957-958) are set forth generally by those sections 
and specifically by the sections of this part.

[62 FR 13945, Mar. 24, 1997]



Sec. 1301.02  Definitions.

    Any term used in this part shall have the definition set forth in 
section 102 of the Act (21 U.S.C. 802) or part 1300 of this chapter.

[62 FR 13945, Mar. 24, 1997]



Sec. 1301.03  Information; special instructions.

    Information regarding procedures under these rules and instructions 
supplementing these rules will be furnished upon request by writing to 
the Registration Unit, Drug Enforcement Administration, Department of 
Justice, Post Office Box 28083, Central Station, Washington, DC 20005.

[36 FR 7778, Apr. 24, 1971. Redesignated at 38 FR 26609, Sept. 23, 1973, 
and amended at 51 FR 5319, Feb. 13, 1986]

                              Registration



Sec. 1301.11  Persons required to register.

    (a) Every person who manufactures, distributes, dispenses, imports, 
or exports any controlled substance or who proposes to engage in the 
manufacture, distribution, dispensing, importation or exportation of any 
controlled substance shall obtain a registration unless exempted by law 
or pursuant to Secs. 1301.22-1301.26. Only persons actually engaged in 
such activities are required to obtain a registration; related or 
affiliated persons who are not engaged in such activities are not 
required to be registered. (For example, a stockholder or parent 
corporation of a corporation manufacturing controlled substances is not 
required to obtain a registration.)
    (b) [Reserved]

[62 FR 13945, Mar. 24, 1997]



Sec. 1301.12  Separate registrations for separate locations.

    (a) A separate registration is required for each principal place of 
business or professional practice at one general physical location where 
controlled substances are manufactured, distributed, imported, exported, 
or dispensed by a person.
    (b) The following locations shall be deemed not to be places where 
controlled substances are manufactured, distributed, or dispensed:
    (1) A warehouse where controlled substances are stored by or on 
behalf of a registered person, unless such substances are distributed 
directly from such warehouse to registered locations other than the 
registered location from which the substances were delivered or to 
persons not required to register by virtue of subsection 302(c)(2) or 
subsection 1007(b)(1)(B) of the Act (21 U.S.C. 822(c)(2) or 
957(b)(1)(B));
    (2) An office used by agents of a registrant where sales of 
controlled substances are solicited, made, or supervised but which 
neither contains such substances (other than substances for display 
purposes or lawful distribution as samples only) nor serves as a 
distribution point for filling sales orders; and
    (3) An office used by a practitioner (who is registered at another 
location) where controlled substances are prescribed but neither 
administered nor otherwise dispensed as a regular part of the 
professional practice of the practitioner at such office, and where no 
supplies of controlled substances are maintained.
    (4) A freight forwarding facility, as defined in Sec. 1300.01 of 
this part, provided that the distributing registrant operating the 
facility has submitted written notice of intent to operate the facility 
by registered mail, return receipt requested (or other suitable means of 
documented delivery) and such notice has been approved. The notice shall 
be submitted to the Special Agent in Charge of the Administration's 
offices in both the area in which the facility is located and each area 
in

[[Page 15]]

which the distributing registrant maintains a registered location that 
will transfer controlled substances through the facility. The notice 
shall detail the registered locations that will utilize the facility, 
the location of the facility, the hours of operation, the individual(s) 
responsible for the controlled substances, the security and 
recordkeeping procedures that will be employed, and whether controlled 
substances returns will be processed through the facility. The notice 
must also detail what state licensing requirements apply to the facility 
and the registrant's actions to comply with any such requirements. The 
Special Agent in Charge of the DEA Office in the area where the freight 
forwarding facility will be operated will provide written notice of 
approval or disapproval to the person within thirty days after confirmed 
receipt of the notice. Registrants that are currently operating freight 
forwarding facilities under a memorandum of understanding with the 
Administration must provide notice as required by this section no later 
than September 18, 2000 and receive written approval from the Special 
Agent in Charge of the DEA Office in the area in which the freight 
forwarding facility is operated in order to continue operation of the 
facility.

[62 FR 13945, Mar. 24, 1997, as amended at 65 FR 44678, July 19, 2000; 
65 FR 45829, July 25, 2000]



Sec. 1301.13  Application for registration; time for application; 
expiration date; registration for independent activities; application 
forms, fees, contents and signature; coincident activities.

    (a) Any person who is required to be registered and who is not so 
registered may apply for registration at any time. No person required to 
be registered shall engage in any activity for which registration is 
required until the application for registration is granted and a 
Certificate of Registration is issued by the Administrator to such 
person.
    (b) Any person who is registered may apply to be reregistered not 
more than 60 days before the expiration date of his/her registration, 
except that a bulk manufacturer of Schedule I or II controlled 
substances or an importer of Schedule I or II controlled substances may 
apply to be reregistered no more than 120 days before the expiration 
date of their registration.
    (c) At the time a manufacturer, distributor, researcher, analytical 
lab, importer, exporter or narcotic treatment program is first 
registered, that business activity shall be assigned to one of twelve 
groups, which shall correspond to the months of the year. The expiration 
date of the registrations of all registrants within any group will be 
the last date of the month designated for that group. In assigning any 
of the above business activities to a group, the Administration may 
select a group the expiration date of which is less than one year from 
the date such business activity was registered. If the business activity 
is assigned to a group which has an expiration date less than three 
months from the date of which the business activity is registered, the 
registration shall not expire until one year from that expiration date; 
in all other cases, the registration shall expire on the expiration date 
following the date on which the business activity is registered.
    (d) At the time a retail pharmacy, hospital/clinic, practitioner or 
teaching institution is first registered, that business activity shall 
be assigned to one of twelve groups, which shall correspond to the 
months of the year. The expiration date of the registrations of all 
registrants within any group will be the last day of the month 
designated for that group. In assigning any of the above business 
activities to a group, the Administration may select a group the 
expiration date of which is not less than 28 months nor more than 39 
months from the date such business activity was registered. After the 
initial registration period, the registration shall expire 36 months 
from the initial expiration date.
    (e) Any person who is required to be registered and who is not so 
registered, shall make application for registration for one of the 
following groups of controlled substances activities, which are deemed 
to be independent of each other. Application for each registration shall 
be made on the indicated form, and shall be accompanied by the indicated 
fee. Fee payments shall be made

[[Page 16]]

in the form of a personal, certified, or cashier's check or money order 
made payable to the ``Drug Enforcement Administration''. The application 
fees are not refundable. Any person, when registered to engage in the 
activities described in each subparagraph in this paragraph, shall be 
authorized to engage in the coincident activities described without 
obtaining a registration to engage in such coincident activities, 
provided that, unless specifically exempted, he/she complies with all 
requirements and duties prescribed by law for persons registered to 
engage in such coincident activities. Any person who engages in more 
than one group of independent activities shall obtain a separate 
registration for each group of activities, except as provided in this 
paragraph under coincident activities. A single registration to engage 
in any group of independent activities listed below may include one or 
more controlled substances listed in the schedules authorized in that 
group of independent activities. A person registered to conduct research 
with controlled substances listed in Schedule I may conduct research 
with any substances listed in Schedule I for which he/she has filed and 
had approved a research protocol.
    (1)

----------------------------------------------------------------------------------------------------------------
                                                                 Application  Registration
   Business activity          Controlled        DEA application      fee         period          Coincident
                              substances             forms        (dollars)      (years)     activities allowed
----------------------------------------------------------------------------------------------------------------
(i) Manufacturing        Schedules I through   New--225                 875            1    Schedules I through
                          V                    Renewal--225a            875                  V: May distribute
                                                                                             that substance or
                                                                                             class for which
                                                                                             registration was
                                                                                             issued; may not
                                                                                             distribute any
                                                                                             substance or class
                                                                                             for which not
                                                                                             registered.
                                                                                             Schedules II
                                                                                             through V: May
                                                                                             conduct chemical
                                                                                             analysis and
                                                                                             preclinical
                                                                                             research (including
                                                                                             quality control
                                                                                             analysis) with
                                                                                             substances listed
                                                                                             in those schedules
                                                                                             for which
                                                                                             authorization as a
                                                                                             manufacturer was
                                                                                             issued.
(ii) Distributing        Schedules I through   New--225                 438            1    ....................
                          V                    Renewal--225a            438
(iii) Dispensing or      Schedules II through  New--224                 210            3    May conduct research
 Instructing (Includes    V                    Renewal--224a            210                  and instructional
 Practitioner Hospital/                                                                      activities with
 Clinic, Retail                                                                              those substances
 Pharmacy, Teaching                                                                          for which
 Institution)                                                                                registration was
                                                                                             granted, except
                                                                                             that a mid-level
                                                                                             practitioner may
                                                                                             conduct such
                                                                                             research only to
                                                                                             the extent
                                                                                             expressly
                                                                                             authorized under
                                                                                             state statute. A
                                                                                             pharmacist may
                                                                                             manufacture an
                                                                                             aqueous or
                                                                                             oleaginous solution
                                                                                             or solid dosage
                                                                                             form containing a
                                                                                             narcotic controlled
                                                                                             substance in
                                                                                             Schedule II through
                                                                                             V in a proportion
                                                                                             not exceeding 20
                                                                                             percent of the
                                                                                             complete solution,
                                                                                             compound, or
                                                                                             mixture.
(iv) Research            Schedule I            New--225                  70            1    A researcher may
                                               Renewal--225a             70                  manufacture or
                                                                                             import the basic
                                                                                             class of substance
                                                                                             or substances for
                                                                                             which registration
                                                                                             was issued,
                                                                                             provided that such
                                                                                             manufacture or
                                                                                             import is set forth
                                                                                             in the protocol
                                                                                             required in Section
                                                                                             1301.18 and to
                                                                                             distribute such
                                                                                             class to persons
                                                                                             registered or
                                                                                             authorized to
                                                                                             conduct research
                                                                                             with such class of
                                                                                             substance or
                                                                                             registered or
                                                                                             authorized to
                                                                                             conduct chemical
                                                                                             analysis with
                                                                                             controlled
                                                                                             substances.

[[Page 17]]

 
(v) Research             Schedules II through  New--225                  70            1    May conduct chemical
                          V                    Renewal--225a             70                  analysis with
                                                                                             controlled
                                                                                             substances in those
                                                                                             schedules for which
                                                                                             registration was
                                                                                             issued; manufacture
                                                                                             such substances if
                                                                                             and to the extent
                                                                                             that such
                                                                                             manufacture is set
                                                                                             forth in a
                                                                                             statement filed
                                                                                             with the
                                                                                             application for
                                                                                             registration or
                                                                                             reregistration and
                                                                                             provided that the
                                                                                             manufacture is not
                                                                                             for the purposes of
                                                                                             dosage form
                                                                                             development; import
                                                                                             such substances for
                                                                                             research purposes;
                                                                                             distribute such
                                                                                             substances to
                                                                                             persons registered
                                                                                             or authorized to
                                                                                             conduct chemical
                                                                                             analysis,
                                                                                             instructional
                                                                                             activities, or
                                                                                             research with such
                                                                                             substances, and to
                                                                                             persons exempted
                                                                                             from registration
                                                                                             pursuant to Section
                                                                                             1301.24; and
                                                                                             conduct
                                                                                             instructional
                                                                                             activities with
                                                                                             controlled
                                                                                             substances.
(vi) Narcotic Treatment  Narcotic Drugs in     New--363                  70            1    ....................
 Program (including       Schedules II         Renewal--363a             70
 compounder)              through V
(vii) Importing          Schedules I through   New--225                 438            1    May distribute that
                          V                    Renewal--225a            438                  substance or class
                                                                                             for which
                                                                                             registration was
                                                                                             issued; may not
                                                                                             distribute any
                                                                                             substance or class
                                                                                             for which not
                                                                                             registered.
(viii) Exporting         Schedules I through   New--225                 438            1    ....................
                          V                    Renewal--225a            438
(ix) Chemical Analysis   Schedules I through   New--225                  70            1    May manufacture and
                          V                    Renewal--225a             70                  import controlled
                                                                                             substances for
                                                                                             analytical or
                                                                                             instructional
                                                                                             activities; may
                                                                                             distribute such
                                                                                             substances to
                                                                                             persons registered
                                                                                             or authorized to
                                                                                             conduct chemical
                                                                                             analysis,
                                                                                             instructional
                                                                                             activities, or
                                                                                             research with such
                                                                                             substances and to
                                                                                             persons exempted
                                                                                             from registration
                                                                                             pursuant to Section
                                                                                             1301.24; may export
                                                                                             such substances to
                                                                                             persons in other
                                                                                             countries
                                                                                             performing chemical
                                                                                             analysis or
                                                                                             enforcing laws
                                                                                             relating to
                                                                                             controlled
                                                                                             substances or drugs
                                                                                             in those countries;
                                                                                             and may conduct
                                                                                             instructional
                                                                                             activities with
                                                                                             controlled
                                                                                             substances.
----------------------------------------------------------------------------------------------------------------

    (2) DEA Forms 224, 225, and 363 may be obtained at any area office 
of the Administration or by writing to the Registration Unit, Drug 
Enforcement Administration, Department of Justice, Post Office Box 
28083, Central Station, Washington, DC 20005.
    (3) DEA Forms 224a, 225a, and 363a will be mailed, as applicable, to 
each registered person approximately 60 days before the expiration date 
of his/her registration; if any registered person does not receive such 
forms within 45 days before the expiration date of his/her registration, 
he/she must promptly give notice of such fact and request such forms by 
writing to the Registration Unit of the Administration at the foregoing 
address.
    (f) Each application for registration to handle any basic class of 
controlled substance listed in Schedule I (except to conduct chemical 
analysis with such classes), and each application for registration to 
manufacture a basic class of controlled substance listed in Schedule II 
shall include the Administration Controlled Substances Code Number, as 
set forth in part 1308 of this chapter,

[[Page 18]]

for each basic class to be covered by such registration.
    (g) Each application for registration to import or export controlled 
substances shall include the Administration Controlled Substances Code 
Number, as set forth in part 1308 of this chapter, for each controlled 
substance whose importation or exportation is to be authorized by such 
registration. Registration as an importer or exporter shall not entitle 
a registrant to import or export any controlled substance not specified 
in such registration.
    (h) Each application for registration to conduct research with any 
basic class of controlled substance listed in Schedule II shall include 
the Administration Controlled Substances Code Number, as set forth in 
part 1308 of this chapter, for each such basic class to be manufactured 
or imported as a coincident activity of that registration. A statement 
listing the quantity of each such basic class of controlled substance to 
be imported or manufactured during the registration period for which 
application is being made shall be included with each such application. 
For purposes of this paragraph only, manufacturing is defined as the 
production of a controlled substance by synthesis, extraction or by 
agricultural/horticultural means.
    (i) Each application shall include all information called for in the 
form, unless the item is not applicable, in which case this fact shall 
be indicated.
    (j) Each application, attachment, or other document filed as part of 
an application, shall be signed by the applicant, if an individual; by a 
partner of the applicant, if a partnership; or by an officer of the 
applicant, if a corporation, corporate division, association, trust or 
other entity. An applicant may authorize one or more individuals, who 
would not otherwise be authorized to do so, to sign applications for the 
applicant by filing with the Registration Unit of the Administration a 
power of attorney for each such individual. The power of attorney shall 
be signed by a person who is authorized to sign applications under this 
paragraph and shall contain the signature of the individual being 
authorized to sign applications. The power of attorney shall be valid 
until revoked by the applicant.

[62 FR 13946, Mar. 24, 1997]



Sec. 1301.14  Filing of application; acceptance for filing; defective applications.

    (a) All applications for registration shall be submitted for filing 
to the Registration Unit, Drug Enforcement Administration, Department of 
Justice, Post Office Box 28083, Central Station, Washington, DC 20005. 
The appropriate registration fee and any required attachments must 
accompany the application.
    (b) Any person required to obtain more than one registration may 
submit all applications in one package. Each application must be 
complete and should not refer to any accompanying application for 
required information.
    (c) Applications submitted for filing are dated upon receipt. If 
found to be complete, the application will be accepted for filing. 
Applications failing to comply with the requirements of this part will 
not generally be accepted for filing. In the case of minor defects as to 
completeness, the Administrator may accept the application for filing 
with a request to the applicant for additional information. A defective 
application will be returned to the applicant within 10 days following 
its receipt with a statement of the reason for not accepting the 
application for filing. A defective application may be corrected and 
resubmitted for filing at any time; the Administrator shall accept for 
filing any application upon resubmission by the applicant, whether 
complete or not.
    (d) Accepting an application for filing does not preclude any 
subsequent request for additional information pursuant to Sec. 1301.15 
and has no bearing on whether the application will be granted.

[62 FR 13948, Mar. 24, 1997]



Sec. 1301.15  Additional information.

    The Administrator may require an applicant to submit such documents 
or written statements of fact relevant to the application as he/she 
deems necessary to determine whether the application should be granted. 
The failure of

[[Page 19]]

the applicant to provide such documents or statements within a 
reasonable time after being requested to do so shall be deemed to be a 
waiver by the applicant of an opportunity to present such documents or 
facts for consideration by the Administrator in granting or denying the 
application.

[62 FR 13948, Mar. 24, 1997]



Sec. 1301.16  Amendments to and withdrawal of applications.

    (a) An application may be amended or withdrawn without permission of 
the Administrator at any time before the date on which the applicant 
receives an order to show cause pursuant to Sec. 1301.37. An application 
may be amended or withdrawn with permission of the Administrator at any 
time where good cause is shown by the applicant or where the amendment 
or withdrawal is in the public interest.
    (b) After an application has been accepted for filing, the request 
by the applicant that it be returned or the failure of the applicant to 
respond to official correspondence regarding the application, when sent 
by registered or certified mail, return receipt requested, shall be 
deemed to be a withdrawal of the application.

[62 FR 13949, Mar. 24, 1997]



Sec. 1301.17  Special procedures for certain applications.

    (a) If, at the time of application for registration of a new 
pharmacy, the pharmacy has been issued a license from the appropriate 
State licensing agency, the applicant may include with his/her 
application an affidavit as to the existence of the State license in the 
following form:

                       Affidavit for New Pharmacy

    I, --------------------, the -------------------- (Title of officer, 
official, partner, or other position) of -------------------- 
(Corporation, partnership, or sole proprietor), doing business as ------
-------------- (Store name) at -------------------- (Number and Street), 
-------------------- (City) ------------ (State) ------------ (Zip 
code), hereby certify that said store was issued a pharmacy permit No. 
-------- by the ---------------- (Board of Pharmacy or Licensing Agency) 
of the State of ------------ on ------------ (Date).
    This statement is submitted in order to obtain a Drug Enforcement 
Administration registration number. I understand that if any information 
is false, the Administration may immediately suspend the registration 
for this store and commence proceedings to revoke under 21 U.S.C. 824(a) 
because of the danger to public health and safety. I further understand 
that any false information contained in this affidavit may subject me 
personally and the above-named corporation/partnership/business to 
prosecution under 21 U.S.C. 843, the penalties for conviction of which 
include imprisonment for up to 4 years, a fine of not more than $30,000 
or both.
________________________________________________________________________
Signature (Person who signs Application for Registration)
State of________________________________________________________________
County of_______________________________________________________________
    Subscribed to and sworn before me this -------- day of --------, 
19------.
________________________________________________________________________
Notary Public

    (b) Whenever the ownership of a pharmacy is being transferred from 
one person to another, if the transferee owns at least one other 
pharmacy licensed in the same State as the one the ownership of which is 
being transferred, the transferee may apply for registration prior to 
the date of transfer. The Administrator may register the applicant and 
authorize him to obtain controlled substances at the time of transfer. 
Such registration shall not authorize the transferee to dispense 
controlled substances until the pharmacy has been issued a valid State 
license. The transferee shall include with his/her application the 
following affidavit:

                   Affidavit for Transfer of Pharmacy

    I, --------------------, the -------------------- (Title of officer, 
official, partner or other position) of -------------------- 
(Corporation, partnership, or sole proprietor), doing business as ------
-------------- (Store name) hereby certify:
    (1) That said company was issued a pharmacy permit No.------------by 
the -------------------- (Board of Pharmacy of Licensing Agency) of the 
State of ------------ and a DEA Registration Number -------------------- 
for a pharmacy located at -------------------- (Number and Street) ----
-------- (City) ------------ (State) ------------ (Zip Code); and
    (2) That said company is acquiring the pharmacy business of --------
------------ (Name of Seller) doing business

[[Page 20]]

as--------------------with DEA Registration Number ------------ on or 
about ------------ (Date of Transfer) and that said company has applied 
(or will apply on ------------ (Date) for a pharmacy permit from the 
board of pharmacy (or licensing agency) of the State of ------------ to 
do business as -------------------- (Store name) at -------------------- 
(Number and Street) -------------------- (City) ------------ (State) --
---------- (Zip Code).

    This statement is submitted in order to obtain a Drug Enforcement 
Administration registration number.

    I understand that if a DEA registration number is issued, the 
pharmacy may acquire controlled substances but may not dispense them 
until a pharmacy permit or license is issued by the State board of 
pharmacy or licensing agency.
    I understand that if any information is false, the Administration 
may immediately suspend the registration for this store and commence 
proceedings to revoke under 21 U.S.C. 824(a) because of the danger to 
public health and safety. I further understand that any false 
information contained in this affidavit may subject me personally to 
prosecution under 21 U.S.C. 843, the penalties for conviction of which 
include imprisonment for up to 4 years, a fine of not more than $30,000 
or both.

________________________________________________________________________
Signature (Person who signs Application for Registration)
State of________________________________________________________________
County of_______________________________________________________________
    Subscribed to and sworn before me this----day of------------, 19--
--.
________________________________________________________________________
Notary Public

    (c) The Administrator shall follow the normal procedures for 
approving an application to verify the statements in the affidavit. If 
the statements prove to be false, the Administrator may revoke the 
registration on the basis of section 304(a)(1) of the Act (21 U.S.C. 
824(a)(1)) and suspend the registration immediately by pending 
revocation on the basis of section 304(d) of the Act (21 U.S.C. 824(d)). 
At the same time, the Administrator may seize and place under seal all 
controlled substances possessed by the applicant under section 304(f) of 
the Act (21 U.S.C. 824(f)). Intentional misuse of the affidavit 
procedure may subject the applicant to prosecution for fraud under 
section 403(a)(4) of the Act (21 U.S.C. 843(a)(4)), and obtaining 
controlled substances through registration by fraudulent means may 
subject the applicant to prosecution under section 403(a)(3) of the Act 
(21 U.S.C. 843(a)(3)). The penalties for conviction of either offense 
include imprisonment for up to 4 years, a fine not exceeding $30,000 or 
both.

[62 FR 13949, Mar. 24, 1997]



Sec. 1301.18  Research protocols.

    (a) A protocol to conduct research with controlled substances listed 
in Schedule I shall be in the following form and contain the following 
information where applicable:
    (1) Investigator:
    (i) Name, address, and DEA registration number; if any.
    (ii) Institutional affiliation.
    (iii) Qualifications, including a curriculum vitae and an 
appropriate bibliography (list of publications).
    (2) Research project:
    (i) Title of project.
    (ii) Statement of the purpose.
    (iii) Name of the controlled substances or substances involved and 
the amount of each needed.
    (iv) Description of the research to be conducted, including the 
number and species of research subjects, the dosage to be administered, 
the route and method of administration, and the duration of the project.
    (v) Location where the research will be conducted.
    (vi) Statement of the security provisions for storing the controlled 
substances (in accordance with Sec. 1301.75) and for dispensing the 
controlled substances in order to prevent diversion.
    (vii) If the investigator desires to manufacture or import any 
controlled substance listed in paragraph (a)(2)(iii) of this section, a 
statement of the quantity to be manufactured or imported and the sources 
of the chemicals to be used or the substance to be imported.
    (3) Authority:
    (i) Institutional approval.
    (ii) Approval of a Human Research Committee for human studies.
    (iii) Indication of an approved active Notice of Claimed 
Investigational Exemption for a New Drug (number).
    (iv) Indication of an approved funded grant (number), if any.
    (b) In the case of a clinical investigation with controlled 
substances listed

[[Page 21]]

in Schedule I, the applicant shall submit three copies of a Notice of 
Claimed Investigational Exemption for a New Drug (IND) together with a 
statement of the security provisions (as proscribed in paragraph 
(a)(2)(vi) of this section for a research protocol) to, and have such 
submission approved by, the Food and Drug Administration as required in 
21 U.S.C. 355(i) and Sec. 130.3 of this title. Submission of this Notice 
and statement to the Food and Drug Administration shall be in lieu of a 
research protocol to the Administration as required in paragraph (a) of 
this section. The applicant, when applying for registration with the 
Administration, shall indicate that such notice has been submitted to 
the Food and Drug Administration by submitting to the Administration 
with his/her DEA Form 225 three copies of the following certificate:

    I hereby certify that on -------------------- (Date), pursuant to 21 
U.S.C. 355(i) and 21 CFR 130.3, I, -------------------- (Name and 
Address of IND Sponsor) submitted a Notice of Claimed Investigational 
Exemption for a New Drug (IND) to the Food and Drug Administration for:

________________________________________________________________________
(Name of Investigational Drug).

________________________________________________________________________
(Date)

________________________________________________________________________
(Signature of Applicant).

    (c) In the event that the registrant desires to increase the 
quantity of a controlled substance used for an approved research 
project, he/she shall submit a request to the Registration Unit, Drug 
Enforcement Administration, Post Office Box 28083, Central Station, 
Washington, DC 20005, by registered mail, return receipt requested. The 
request shall contain the following information: DEA registration 
number; name of the controlled substance or substances and the quantity 
of each authorized in the approved protocol; and the additional quantity 
of each desired. Upon return of the receipt, the registrant shall be 
authorized to purchase the additional quantity of the controlled 
substance or substances specified in the request. The Administration 
shall review the letter and forward it to the Food and Drug 
Administration together with the Administration comments. The Food and 
Drug Administration shall approve or deny the request as an amendment to 
the protocol and so notify the registrant. Approval of the letter by the 
Food and Drug Administration shall authorize the registrant to use the 
additional quantity of the controlled substance in the research project.
    (d) In the event the registrant desires to conduct research beyond 
the variations provided in the registrant's approved protocol (excluding 
any increase in the quantity of the controlled substance requested for 
his/her research project as outlined in paragraph (c) of this section), 
he/she shall submit three copies of a supplemental protocol in 
accordance with paragraph (a) of this section describing the new 
research and omitting information in the supplemental protocol which has 
been stated in the original protocol. Supplemental protocols shall be 
processed and approved or denied in the same manner as original research 
protocols.

[62 FR 13949, Mar. 24, 1997]

                   Exceptions to Registration and Fees



Sec. 1301.21  Exemption from fees.

    (a) The Administrator shall exempt from payment of an application 
fee for registration or reregistration:
    (1) Any hospital or other institution which is operated by an agency 
of the United States (including the U.S. Army, Navy, Marine Corps., Air 
Force, and Coast Guard), of any State, or any political subdivision or 
agency thereof.
    (2) Any individual practitioner who is required to obtain an 
individual registration in order to carry out his or her duties as an 
official of an agency of the United States (including the U.S. Army, 
Navy, Marine Corps, Air Force, and Coast Guard), of any State, or any 
political subdivision or agency thereof.
    (b) In order to claim exemption from payment of a registration or 
reregistration application fee, the registrant shall have completed the 
certification on the appropriate application form, wherein the 
registrant's superior (if the registrant is an individual) or officer 
(if the registrant is an agency) certifies to the status and address of 
the registrant and to the authority of the

[[Page 22]]

registrant to acquire, possess, or handle controlled substances.
    (c) Exemption from payment of a registration or reregistration 
application fee does not relieve the registrant of any other 
requirements or duties prescribed by law.

[62 FR 13950, Mar. 24, 1997]



Sec. 1301.22  Exemption of agents and employees; affiliated practitioners.

    (a) The requirement of registration is waived for any agent or 
employee of a person who is registered to engage in any group of 
independent activities, if such agent or employee is acting in the usual 
course of his/her business or employment.
    (b) An individual practitioner who is an agent or employee of 
another practitioner (other than a mid-level practitioner) registered to 
dispense controlled substances may, when acting in the normal course of 
business or employment, administer or dispense (other than by issuance 
of prescription) controlled substances if and to the extent that such 
individual practitioner is authorized or permitted to do so by the 
jurisdiction in which he or she practices, under the registration of the 
employer or principal practitioner in lieu of being registered him/
herself.
    (c) An individual practitioner who is an agent or employee of a 
hospital or other institution may, when acting in the normal course of 
business or employment, administer, dispense, or prescribe controlled 
substances under the registration of the hospital or other institution 
which is registered in lieu of being registered him/herself, provided 
that:
    (1) Such dispensing, administering or prescribing is done in the 
usual course of his/her professional practice;
    (2) Such individual practitioner is authorized or permitted to do so 
by the jurisdiction in which he/she is practicing;
    (3) The hospital or other institution by whom he/she is employed has 
verified that the individual practitioner is so permitted to dispense, 
administer, or prescribe drugs within the jurisdiction;
    (4) Such individual practitioner is acting only within the scope of 
his/her employment in the hospital or institution;
    (5) The hospital or other institution authorizes the individual 
practitioner to administer, dispense or prescribe under the hospital 
registration and designates a specific internal code number for each 
individual practitioner so authorized. The code number shall consist of 
numbers, letters, or a combination thereof and shall be a suffix to the 
institution's DEA registration number, preceded by a hyphen (e.g., 
APO123456-10 or APO123456-A12); and
    (6) A current list of internal codes and the corresponding 
individual practitioners is kept by the hospital or other institution 
and is made available at all times to other registrants and law 
enforcement agencies upon request for the purpose of verifying the 
authority of the prescribing individual practitioner.

[62 FR 13950, Mar. 24, 1997]



Sec. 1301.23  Exemption of certain military and other personnel.

    (a) The requirement of registration is waived for any official of 
the U.S. Army, Navy, Marine Corps, Air Force, Coast Guard, Public Health 
Service, or Bureau of Prisons who is authorized to prescribe, dispense, 
or administer, but not to procure or purchase, controlled substances in 
the course of his/her official duties. Such officials shall follow 
procedures set forth in part 1306 of this chapter regarding 
prescriptions, but shall state the branch of service or agency (e.g., 
``U.S. Army'' or ``Public Health Service'') and the service 
identification number of the issuing official in lieu of the 
registration number required on prescription forms. The service 
identification number for a Public Health Service employee is his/her 
Social Security identification number.
    (b) The requirement of registration is waived for any official or 
agency of the U.S. Army, Navy, Marine Corps, Air Force, Coast Guard, or 
Public Health Service who or which is authorized to import or export 
controlled substances in the course of his/her official duties.

[[Page 23]]

    (c) If any official exempted by this section also engages as a 
private individual in any activity or group of activities for which 
registration is required, such official shall obtain a registration for 
such private activities.

[62 FR 13951, Mar. 24, 1997]



Sec. 1301.24  Exemption of law enforcement officials.

    (a) The requirement of registration is waived for the following 
persons in the circumstances described in this section:
    (1) Any officer or employee of the Administration, any officer of 
the U.S. Customs Service, any officer or employee of the United States 
Food and Drug Administration, and any other Federal officer who is 
lawfully engaged in the enforcement of any Federal law relating to 
controlled substances, drugs or customs, and is duly authorized to 
possess or to import or export controlled substances in the course of 
his/her official duties; and
    (2) Any officer or employee of any State, or any political 
subdivision or agency thereof, who is engaged in the enforcement of any 
State or local law relating to controlled substances and is duly 
authorized to possess controlled substances in the course of his/her 
official duties.
    (b) Any official exempted by this section may, when acting in the 
course of his/her official duties, procure any controlled substance in 
the course of an inspection, in accordance with Sec. 1316.03(d) of this 
chapter, or in the course of any criminal investigation involving the 
person from whom the substance was procured, and may possess any 
controlled substance and distribute any such substance to any other 
official who is also exempted by this section and acting in the course 
of his/her official duties.
    (c) In order to enable law enforcement agency laboratories, 
including laboratories of the Administration, to obtain and transfer 
controlled substances for use as standards in chemical analysis, such 
laboratories shall obtain annually a registration to conduct chemical 
analysis. Such laboratories shall be exempted from payment of a fee for 
registration. Laboratory personnel, when acting in the scope of their 
official duties, are deemed to be officials exempted by this section and 
within the activity described in section 515(d) of the Act (21 U.S.C. 
885(d)). For purposes of this paragraph, laboratory activities shall not 
include field or other preliminary chemical tests by officials exempted 
by this section.
    (d) In addition to the activities authorized under a registration to 
conduct chemical analysis pursuant to Sec. 1301.13(e)(1)(ix), 
laboratories of the Administration shall be authorized to manufacture or 
import controlled substances for any lawful purpose, to distribute or 
export such substances to any person, and to import and export such 
substances in emergencies without regard to the requirements of part 
1312 of this chapter if a report concerning the importation or 
exportation is made to the Drug Operations Section of the Administration 
within 30 days of such importation or exportation.

[62 FR 13951, Mar. 24, 1997]



Sec. 1301.25  Registration regarding ocean vessels, aircraft, and other entities.

    (a) If acquired by and dispensed under the general supervision of a 
medical officer described in paragraph (b) of this section, or the 
master or first officer of the vessel under the circumstances described 
in paragraph (d) of this section, controlled substances may be held for 
stocking, be maintained in, and dispensed from medicine chests, first 
aid packets, or dispensaries:
    (1) On board any vessel engaged in international trade or in trade 
between ports of the United States and any merchant vessel belonging to 
the U.S. Government;
    (2) On board any aircraft operated by an air carrier under a 
certificate of permit issued pursuant to the Federal Aviation Act of 
1958 (49 U.S.C. 1301); and
    (3) In any other entity of fixed or transient location approved by 
the Administrator as appropriate for application of this section (e.g., 
emergency kits at field sites of an industrial firm).
    (b) A medical officer shall be:
    (1) Licensed in a state as a physician;
    (2) Employed by the owner or operator of the vessel, aircraft or 
other entity; and

[[Page 24]]

    (3) Registered under the Act at either of the following locations:
    (i) The principal office of the owner or operator of the vessel, 
aircraft or other entity or
    (ii) At any other location provided that the name, address, 
registration number and expiration date as they appear on his/her 
Certificate of Registration (DEA Form 223) for this location are 
maintained for inspection at said principal office in a readily 
retrievable manner.
    (c) A registered medical officer may serve as medical officer for 
more than one vessel, aircraft, or other entity under a single 
registration, unless he/she serves as medical officer for more than one 
owner or operator, in which case he/she shall either maintain a separate 
registration at the location of the principal office of each such owner 
or operator or utilize one or more registrations pursuant to paragraph 
(b)(3)(ii) of this section.
    (d) If no medical officer is employed by the owner or operator of a 
vessel, or in the event such medical officer is not accessible and the 
acquisition of controlled substances is required, the master or first 
officer of the vessel, who shall not be registered under the Act, may 
purchase controlled substances from a registered manufacturer or 
distributor, or from an authorized pharmacy as described in paragraph 
(f) of this section, by following the procedure outlined below:
    (1) The master or first officer of the vessel must personally appear 
at the vendor's place of business, present proper identification (e.g., 
Seaman's photographic identification card) and a written requisition for 
the controlled substances.
    (2) The written requisition must be on the vessel's official 
stationery or purchase order form and must include the name and address 
of the vendor, the name of the controlled substance, description of the 
controlled substance (dosage form, strength and number or volume per 
container) number of containers ordered, the name of the vessel, the 
vessel's official number and country of registry, the owner or operator 
of the vessel, the port at which the vessel is located, signature of the 
vessel's officer who is ordering the controlled substances and the date 
of the requisition.
    (3) The vendor may, after verifying the identification of the 
vessel's officer requisitioning the controlled substances, deliver the 
control substances to that officer. The transaction shall be documented, 
in triplicate, on a record of sale in a format similar to that outlined 
in paragraph (d)(4) of this section. The vessel's requisition shall be 
attached to copy 1 of the record of sale and filed with the controlled 
substances records of the vendor, copy 2 of the record of sale shall be 
furnished to the officer of the vessel and retained aboard the vessel, 
copy 3 of the record of sale shall be forwarded to the nearest DEA 
Division Office within 15 days after the end of the month in which the 
sale is made.
    (4) The vendor's record of sale should be similar to, and must 
include all the information contained in, the below listed format.

                Sale of Controlled Substances to Vessels

(Name of registrant)____________________________________________________

(Address of registrant)_________________________________________________

(DEA registration number)_______________________________________________

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                 Number of                                                Packages
                          Line No.                            packages ordered   Size of packages   Name of product     distributed     Date distributed
--------------------------------------------------------------------------------------------------------------------------------------------------------
1..........................................................  .................  .................  ................  .................  ................
2..........................................................  .................  .................  ................  .................  ................
3..........................................................  .................  .................  ................  .................  ................
--------------------------------------------------------------------------------------------------------------------------------------------------------
Footnote: Line numbers may be continued according to needs of the vendor.

Number of lines completed_______________________________________________
Name of vessel__________________________________________________________
Vessel's official number________________________________________________
Vessel's country of registry____________________________________________
Owner or operator of the vessel_________________________________________

Name and title of vessel's officer who presented the requisition ------
          --
Signature of vessel's officer who presented the requisition --------


[[Page 25]]


    (e) Any medical officer described in paragraph (b) of this section 
shall, in addition to complying with all requirements and duties 
prescribed for registrants generally, prepare an annual report as of the 
date on which his/her registration expires, which shall give in detail 
an accounting for each vessel, aircraft, or other entity, and a summary 
accounting for all vessels, aircraft, or other entities under his/her 
supervision for all controlled substances purchased, dispensed or 
disposed of during the year. The medical officer shall maintain this 
report with other records required to be kept under the Act and, upon 
request, deliver a copy of the report to the Administration. The medical 
officer need not be present when controlled substances are dispensed, if 
the person who actually dispensed the controlled substances is 
responsible to the medical officer to justify his/her actions.
    (f) Any registered pharmacy that wishes to distribute controlled 
substances pursuant to this section shall be authorized to do so, 
provided:
    (1) The registered pharmacy notifies the nearest Division Office of 
the Administration of its intention to so distribute controlled 
substances prior to the initiation of such activity. This notification 
shall be by registered mail and shall contain the name, address, and 
registration number of the pharmacy as well as the date upon which such 
activity will commence; and
    (2) Such activity is authorized by state law; and
    (3) The total number of dosage units of all controlled substances 
distributed by the pharmacy during any calendar year in which the 
pharmacy is registered to dispense does not exceed the limitations 
imposed upon such distribution by Sec. 1307.11(a)(4) and (b) of this 
chapter.
    (g) Owners or operators of vessels, aircraft, or other entities 
described in this section shall not be deemed to possess or dispense any 
controlled substance acquired, stored and dispensed in accordance with 
this section. Additionally, owners or operators of vessels, aircraft, or 
other entities described in this section or in Article 32 of the Single 
Convention on Narcotic Drugs, 1961, or in Article 14 of the Convention 
on Psychotropic Substances, 1971, shall not be deemed to import or 
export any controlled substances purchased and stored in accordance with 
that section or applicable article.
    (h) The Master of a vessel shall prepare a report for each calendar 
year which shall give in detail an accounting for all controlled 
substances purchased, dispensed, or disposed of during the year. The 
Master shall file this report with the medical officer employed by the 
owner or operator of his/her vessel, if any, or, if not, he/she shall 
maintain this report with other records required to be kept under the 
Act and, upon request, deliver a copy of the report to the 
Administration.
    (i) Controlled substances acquired and possessed in accordance with 
this section shall not be distributed to persons not under the general 
supervision of the medical officer employed by the owner or operator of 
the vessel, aircraft, or other entity, except in accordance with 
Sec. 1307.21 of this chapter.

[62 FR 13951, Mar. 24, 1997]



Sec. 1301.26  Exemptions from import or export requirements for personal medical use.

    Any individual who has in his/her possession a controlled substance 
listed in schedules II, III, IV, or V, which he/she has lawfully 
obtained for his/her personal medical use, or for administration to an 
animal accompanying him/her, may enter or depart the United States with 
such substance notwithstanding sections 1002-1005 of the Act (21 U.S.C. 
952-955), providing the following conditions are met:
    (a) The controlled substance is in the original container in which 
it was dispensed to the individual; and
    (b) The individual makes a declaration to an appropriate official of 
the U.S. Customs Service stating:
    (1) That the controlled substance is possessed for his/her personal 
use, or for an animal accompanying him/her; and
    (2) The trade or chemical name and the symbol designating the 
schedule of the controlled substance if it appears on the container 
label, or, if such name does not appear on the label, the name

[[Page 26]]

and address of the pharmacy or practitioner who dispensed the substance 
and the prescription number, if any; and
    (c) The importation of the controlled substance for personal medical 
use is authorized or permitted under other Federal laws and state law.

[62 FR 13952, Mar. 24, 1997]

  Action on Application for Registration: Revocation or Suspension of 
                              Registration



Sec. 1301.31  Administrative review generally.

    The Administrator may inspect, or cause to be inspected, the 
establishment of an applicant or registrant, pursuant to subpart A of 
part 1316 of this chapter. The Administrator shall review the 
application for registration and other information gathered by the 
Administrator regarding an applicant in order to determine whether the 
applicable standards of section 303 (21 U.S.C. 823) or section 1008 (21 
U.S.C. 958) of the Act have been met by the applicant.

[62 FR 13953, Mar. 24, 1997]



Sec. 1301.32  Action on applications for research in Schedule I substances.

    (a) In the case of an application for registration to conduct 
research with controlled substances listed in Schedule I, the 
Administrator shall process the application and protocol and forward a 
copy of each to the Secretary of Health and Human Services (Secretary) 
within 7 days after receipt. The Secretary shall determine the 
qualifications and competency of the applicant, as well as the merits of 
the protocol (and shall notify the Administrator of his/her 
determination) within 21 days after receipt of the application and 
complete protocol, except that in the case of a clinical investigation, 
the Secretary shall have 30 days to make such determination and notify 
the Administrator. The Secretary, in determining the merits of the 
protocol, shall consult with the Administrator as to effective 
procedures to safeguard adequately against diversion of such controlled 
substances from legitimate medical or scientific use.
    (b) An applicant whose protocol is defective shall be notified by 
the Secretary within 21 days after receipt of such protocol from the 
Administrator (or in the case of a clinical investigation within 30 
days), and he/she shall be requested to correct the existing defects 
before consideration shall be given to his/her submission.
    (c) If the Secretary determines the applicant qualified and 
competent and the research protocol meritorious, he/she shall notify the 
Administrator in writing of such determination. The Administrator shall 
issue a certificate of registration within 10 days after receipt of this 
notice, unless he/she determines that the certificate of registration 
should be denied on a ground specified in section 304(a) of the Act (21 
U.S.C. 824(a)). In the case of a supplemental protocol, a replacement 
certificate of registration shall be issued by the Administrator.
    (d) If the Secretary determines that the protocol is not meritorious 
and/or the applicant is not qualified or competent, he/she shall notify 
the Administrator in writing setting forth the reasons for such 
determination. If the Administrator determines that grounds exist for 
the denial of the application, he/she shall within 10 days issue an 
order to show cause pursuant to Sec. 1301.37 and, if requested by the 
applicant, hold a hearing on the application pursuant to Sec. 1301.41. 
If the grounds for denial of the application include a determination by 
the Secretary, the Secretary or his duly authorized agent shall furnish 
testimony and documents pertaining to his determination at such hearing.
    (e) Supplemental protocols will be processed in the same manner as 
original research protocols. If the processing of an application or 
research protocol is delayed beyond the time limits imposed by this 
section, the applicant shall be so notified in writing.

[62 FR 13953, Mar. 24, 1997]



Sec. 1301.33  Application for bulk manufacture of Schedule I and II substances.

    (a) In the case of an application for registration or reregistration 
to manufacture in bulk a basic class of controlled substance listed in 
Schedule I or II, the Administrator shall, upon the filing of such 
application, publish in

[[Page 27]]

the Federal Register a notice naming the applicant and stating that such 
applicant has applied to be registered as a bulk manufacturer of a basic 
class of narcotic or nonnarcotic controlled substance, which class shall 
be identified. A copy of said notice shall be mailed simultaneously to 
each person registered as a bulk manufacturer of that basic class and to 
any other applicant therefor. Any such person may, within 60 days from 
the date of publication of the notice in the Federal Register, file with 
the Administrator written comments on or objections to the issuance of 
the proposed registration.
    (b) In order to provide adequate competition, the Administrator 
shall not be required to limit the number of manufacturers in any basic 
class to a number less than that consistent with maintenance of 
effective controls against diversion solely because a smaller number is 
capable of producing an adequate and uninterrupted supply.
    (c) This section shall not apply to the manufacture of basic classes 
of controlled substances listed in Schedules I or II as an incident to 
research or chemical analysis as authorized in Sec. 1301.13(e)(1).

[62 FR 13953, Mar. 24, 1997]



Sec. 1301.34  Application for importation of Schedule I and II substances.

    (a) In the case of an application for registration or reregistration 
to import a controlled substance listed in Schedule I or II, under the 
authority of section 1002(a)(2)(B) of the Act (21 U.S.C. 952(a)(2)(B)), 
the Administrator shall, upon the filing of such application, publish in 
the Federal Register a notice naming the applicant and stating that such 
applicant has applied to be registered as an importer of a Schedule I or 
II controlled substance, which substance shall be identified. A copy of 
said notice shall be mailed simultaneously to each person registered as 
a bulk manufacturer of that controlled substance and to any other 
applicant therefor. Any such person may, within 30 days from the date of 
publication of the notice in the Federal Register, file written comments 
on or objections to the issuance of the proposed registration, and may, 
at the same time, file a written request for a hearing on the 
application pursuant to Sec. 1301.43. If a hearing is requested, the 
Administrator shall hold a hearing on the application in accordance with 
Sec. 1301.41. Notice of the hearing shall be published in the Federal 
Register, and shall be mailed simultaneously to the applicant and to all 
persons to whom notice of the application was mailed. Any such person 
may participate in the hearing by filing a notice of appearance in 
accordance with Sec. 1301.43 of this chapter. Notice of the hearing 
shall contain a summary of all comments and objections filed regarding 
the application and shall state the time and place for the hearing, 
which shall not be less than 30 days after the date of publication of 
such notice in the Federal Register. A hearing pursuant to this section 
may be consolidated with a hearing held pursuant to Sec. 1301.35 or 
Sec. 1301.36 of this part.
    (b) The Administrator shall register an applicant to import a 
controlled substance listed in Schedule I or II if he/she determines 
that such registration is consistent with the public interest and with 
U.S. obligations under international treaties, conventions, or protocols 
in effect on May 1, 1971. In determining the public interest, the 
following factors shall be considered:
    (1) Maintenance of effective controls against diversion of 
particular controlled substances and any controlled substance in 
Schedule I or II compounded therefrom into other than legitimate 
medical, scientific research, or industrial channels, by limiting the 
importation and bulk manufacture of such controlled substances to a 
number of establishments which can produce an adequate and uninterrupted 
supply of these substances under adequately competitive conditions for 
legitimate medical, scientific, research, and industrial purposes;
    (2) Compliance with applicable State and local law;
    (3) Promotion of technical advances in the art of manufacturing 
these substances and the development of new substances;
    (4) Prior conviction record of applicant under Federal and State 
laws relating to the manufacture, distribution, or dispensing of such 
substances;

[[Page 28]]

    (5) Past experience in the manufacture of controlled substances, and 
the existence in the establishment of effective control against 
diversion;
    (6) That the applicant will be permitted to import only:
    (i) Such amounts of crude opium, poppy straw, concentrate of poppy 
straw, and coca leaves as the Administrator finds to be necessary to 
provide for medical, scientific, or other legitimate purposes; or
    (ii) Such amounts of any controlled substances listed in Schedule I 
or II as the Administrator shall find to be necessary to provide for the 
medical, scientific, or other legitimate needs of the United States 
during an emergency in which domestic supplies of such substances are 
found by the Administrator to be inadequate; or
    (iii) Such amounts of any controlled substance listed in Schedule I 
or II as the Administrator shall find to be necessary to provide for the 
medical, scientific, or other legitimate needs of the United States in 
any case in which the Administrator finds that competition among 
domestic manufacturers of the controlled substance is inadequate and 
will not be rendered adequate by the registration of additional 
manufacturers under section 303 of the Act (21 U.S.C. 823); or
    (iv) Such limited quantities of any controlled substance listed in 
Schedule I or II as the Administrator shall find to be necessary for 
scientific, analytical or research uses; and
    (7) Such other factors as may be relevant to and consistent with the 
public health and safety.
    (c) In determining whether the applicant can and will maintain 
effective controls against diversion within the meaning of paragraph (b) 
of this section, the Administrator shall consider among other factors:
    (1) Compliance with the security requirements set forth in 
Secs. 1301.71-1301.76; and
    (2) Employment of security procedures to guard against in-transit 
losses within and without the jurisdiction of the United States.
    (d) In determining whether competition among the domestic 
manufacturers of a controlled substance is adequate within the meaning 
of paragraphs (b)(1) and (b)(6)(iii) of this section, as well as section 
1002(a)(2)(B) of the Act (21 U.S.C. 952(a)(2)(B)), the Administrator 
shall consider:
    (1) The extent of price rigidity in the light of changes in:
    (i) raw materials and other costs and
    (ii) conditions of supply and demand;
    (2) The extent of service and quality competition among the domestic 
manufacturers for shares of the domestic market including:
    (i) Shifts in market shares and
    (ii) Shifts in individual customers among domestic manufacturers;
    (3) The existence of substantial differentials between domestic 
prices and the higher of prices generally prevailing in foreign markets 
or the prices at which the applicant for registration to import is 
committed to undertake to provide such products in the domestic market 
in conformity with the Act. In determining the existence of substantial 
differentials hereunder, appropriate consideration should be given to 
any additional costs imposed on domestic manufacturers by the 
requirements of the Act and such other cost-related and other factors as 
the Administrator may deem relevant. In no event shall an importer's 
offering prices in the United States be considered if they are lower 
than those prevailing in the foreign market or markets from which the 
importer is obtaining his/her supply;
    (4) The existence of competitive restraints imposed upon domestic 
manufacturers by governmental regulations; and
    (5) Such other factors as may be relevant to the determinations 
required under this paragraph.
    (e) In considering the scope of the domestic market, consideration 
shall be given to substitute products which are reasonably 
interchangeable in terms of price, quality and use.
    (f) The fact that the number of existing manufacturers is small 
shall not demonstrate, in and of itself, that adequate competition among 
them does not exist.

[62 FR 13953, Mar. 24, 1997]

[[Page 29]]



Sec. 1301.35  Certificate of registration; denial of registration.

    (a) The Administrator shall issue a Certificate of Registration (DEA 
Form 223) to an applicant if the issuance of registration or 
reregistration is required under the applicable provisions of sections 
303 or 1008 of the Act (21 U.S.C. 823 and 958). In the event that the 
issuance of registration or reregistration is not required, the 
Administrator shall deny the application. Before denying any 
application, the Administrator shall issue an order to show cause 
pursuant to Sec. 1301.37 and, if requested by the applicant, shall hold 
a hearing on the application pursuant to Sec. 1301.41.
    (b) If in response to a show cause order a hearing is requested by 
an applicant for registration or reregistration to manufacture in bulk a 
basic class of controlled substance listed in Schedule I or II, notice 
that a hearing has been requested shall be published in the Federal 
Register and shall be mailed simultaneously to the applicant and to all 
persons to whom notice of the application was mailed. Any person 
entitled to file comments or objections to the issuance of the proposed 
registration pursuant to Sec. 1301.33(a) may participate in the hearing 
by filing notice of appearance in accordance with Sec. 1301.43. Such 
persons shall have 30 days to file a notice of appearance after the date 
of publication of the notice of a request for a hearing in the Federal 
Register.
    (c) The Certificate of Registration (DEA Form 223) shall contain the 
name, address, and registration number of the registrant, the activity 
authorized by the registration, the schedules and/or Administration 
Controlled Substances Code Number (as set forth in part 1308 of this 
chapter) of the controlled substances which the registrant is authorized 
to handle, the amount of fee paid (or exemption), and the expiration 
date of the registration. The registrant shall maintain the certificate 
of registration at the registered location in a readily retrievable 
manner and shall permit inspection of the certificate by any official, 
agent or employee of the Administration or of any Federal, State, or 
local agency engaged in enforcement of laws relating to controlled 
substances.

[62 FR 13954, Mar. 24, 1997]



Sec. 1301.36  Suspension or revocation of registration; suspension of 
registration pending final order; extension of registration pending 
final order.

    (a) For any registration issued under section 303 of the Act (21 
U.S.C. 823), the Administrator may:
    (1) Suspend the registration pursuant to section 304(a) of the Act 
(21 U.S.C. 824(a)) for any period of time.
    (2) Revoke the registration pursuant to section 304(a) of the Act 
(21 U.S.C. 824(a)).
    (b) For any registration issued under section 1008 of the Act (21 
U.S.C. 958), the Administrator may:
    (1) Suspend the registration pursuant to section 1008(d) of the Act 
(21 U.S.C. 958(d)) for any period of time.
    (2) Revoke the registration pursuant to section 1008(d) of the Act 
(21 U.S.C. 958(d)) if he/she determines that such registration is 
inconsistent with the public interest as defined in section 1008 or with 
the United States obligations under international treaties, conventions, 
or protocols in effect on October 12, 1984.
    (c) The Administrator may limit the revocation or suspension of a 
registration to the particular controlled substance, or substances, with 
respect to which grounds for revocation or suspension exist.
    (d) Before revoking or suspending any registration, the 
Administrator shall issue an order to show cause pursuant to 
Sec. 1301.37 and, if requested by the registrant, shall hold a hearing 
pursuant to Sec. 1301.41.
    (e) The Administrator may suspend any registration simultaneously 
with or at any time subsequent to the service upon the registrant of an 
order to show cause why such registration should not be revoked or 
suspended, in any case where he/she finds that there is an imminent 
danger to the public health or safety. If the Administrator so suspends, 
he/she shall serve with the order to show cause pursuant to Sec. 1301.37 
an order of immediate suspension which shall contain a statement of his 
findings regarding the danger to public health or safety.

[[Page 30]]

    (f) Upon service of the order of the Administrator suspending or 
revoking registration, the registrant shall immediately deliver his/her 
Certificate of Registration, any order forms, and any import or export 
permits in his/her possession to the nearest office of the 
Administration. The suspension or revocation of a registration shall 
suspend or revoke any individual manufacturing or procurement quota 
fixed for the registrant pursuant to part 1303 of this chapter and any 
import or export permits issued to the registrant pursuant to part 1312 
of this chapter. Also, upon service of the order of the Administrator 
revoking or suspending registration, the registrant shall, as instructed 
by the Administrator:
    (1) Deliver all controlled substances in his/her possession to the 
nearest office of the Administration or to authorized agents of the 
Administration; or
    (2) Place all controlled substances in his/her possession under seal 
as described in sections 304(f) or 1008(d)(6) of the Act (21 U.S.C. 
824(f) or 958(d)(6)).
    (g) In the event that revocation or suspension is limited to a 
particular controlled substance or substances, the registrant shall be 
given a new Certificate of Registration for all substances not affected 
by such revocation or suspension; no fee shall be required to be paid 
for the new Certificate of Registration. The registrant shall deliver 
the old Certificate of Registration and, if appropriate, any order forms 
in his/her possession to the nearest office of the Administration. The 
suspension or revocation of a registration, when limited to a particular 
basic class or classes of controlled substances, shall suspend or revoke 
any individual manufacturing or procurement quota fixed for the 
registrant for such class or classes pursuant to part 1303 of this 
chapter and any import or export permits issued to the registrant for 
such class or classes pursuant to part 1312 of this chapter. Also, upon 
service of the order of the Administrator revoking or suspending 
registration, the registrant shall, as instructed by the Administrator:
    (1) Deliver to the nearest office of the Administration or to 
authorized agents of the Administration all of the particular controlled 
substance or substances affected by the revocation or suspension which 
are in his/her possession; or
    (2) Place all of such substances under seal as described in sections 
304(f) or 958(d)(6) of the Act (21 U.S.C. 824(f) or 958(d)(6)).
    (h) Any suspension shall continue in effect until the conclusion of 
all proceedings upon the revocation or suspension, including any 
judicial review thereof, unless sooner withdrawn by the Administrator or 
dissolved by a court of competent jurisdiction. Any registrant whose 
registration is suspended under paragraph (e) of this section may 
request a hearing on the revocation or suspension of his/her 
registration at a time earlier than specified in the order to show cause 
pursuant to Sec. 1301.37. This request shall be granted by the 
Administrator, who shall fix a date for such hearing as early as 
reasonably possible.
    (i) In the event that an applicant for reregistration (who is doing 
business under a registration previously granted and not revoked or 
suspended) has applied for reregistration at least 45 days before the 
date on which the existing registration is due to expire, and the 
Administrator has issued no order on the application on the date on 
which the existing registration is due to expire, the existing 
registration of the applicant shall automatically be extended and 
continue in effect until the date on which the Administrator so issues 
his/her order. The Administrator may extend any other existing 
registration under the circumstances contemplated in this section even 
though the registrant failed to apply for reregistration at least 45 
days before expiration of the existing registration, with or without 
request by the registrant, if the Administrator finds that such 
extension is not inconsistent with the public health and safety.

[62 FR 13955, Mar. 24, 1997]



Sec. 1301.37  Order to show cause.

    (a) If, upon examination of the application for registration from 
any applicant and other information gathered by the Administration 
regarding the applicant, the Administrator is unable to make the 
determinations required

[[Page 31]]

by the applicable provisions of section 303 and/or section 1008 of the 
Act (21 U.S.C. 823 and 958) to register the applicant, the Administrator 
shall serve upon the applicant an order to show cause why the 
registration should not be denied.
    (b) If, upon information gathered by the Administration regarding 
any registrant, the Administrator determines that the registration of 
such registrant is subject to suspension or revocation pursuant to 
section 304 or section 1008 of the Act (21 U.S.C. 824 and 958), the 
Administrator shall serve upon the registrant an order to show cause why 
the registration should not be revoked or suspended.
    (c) The order to show cause shall call upon the applicant or 
registrant to appear before the Administrator at a time and place stated 
in the order, which shall not be less than 30 days after the date of 
receipt of the order. The order to show cause shall also contain a 
statement of the legal basis for such hearing and for the denial, 
revocation, or suspension of registration and a summary of the matters 
of fact and law asserted.
    (d) Upon receipt of an order to show cause, the applicant or 
registrant must, if he/she desires a hearing, file a request for a 
hearing pursuant to Sec. 1301.43. If a hearing is requested, the 
Administrator shall hold a hearing at the time and place stated in the 
order, pursuant to Sec. 1301.41.
    (e) When authorized by the Administrator, any agent of the 
Administration may serve the order to show cause.

[62 FR 13955, Mar. 24, 1997]

                                Hearings



Sec. 1301.41  Hearings generally.

    (a) In any case where the Administrator shall hold a hearing on any 
registration or application therefor, the procedures for such hearing 
shall be governed generally by the adjudication procedures set forth in 
the Administrative Procedure Act (5 U.S.C. 551-559) and specifically by 
sections 303, 304, and 1008 of the Act (21 U.S.C. 823-824 and 958), by 
Secs. 1301.42-1301.46 of this part, and by the procedures for 
administrative hearings under the Act set forth in Secs. 1316.41-1316.67 
of this chapter.
    (b) Any hearing under this part shall be independent of, and not in 
lieu of, criminal prosecutions or other proceedings under the Act or any 
other law of the United States.

[62 FR 13956, Mar. 24, 1997]



Sec. 1301.42  Purpose of hearing.

    If requested by a person entitled to a hearing, the Administrator 
shall hold a hearing for the purpose of receiving factual evidence 
regarding the issues involved in the denial, revocation, or suspension 
of any registration, and the granting of any application for 
registration to import or to manufacture in bulk a basic class of 
controlled substance listed in Schedule I or II. Extensive argument 
should not be offered into evidence but rather presented in opening or 
closing statements of counsel or in memoranda or proposed findings of 
fact and conclusions of law.

[62 FR 13956, Mar. 24, 1997]



Sec. 1301.43  Request for hearing or appearance; waiver.

    (a) Any person entitled to a hearing pursuant to Sec. 1301.32 or 
Secs. 1301.34-1301.36 and desiring a hearing shall, within 30 days after 
the date of receipt of the order to show cause (or the date of 
publication of notice of the application for registration in the Federal 
Register in the case of Sec. 1301.34), file with the Administrator a 
written request for a hearing in the form prescribed in Sec. 1316.47 of 
this chapter.
    (b) Any person entitled to participate in a hearing pursuant to 
Sec. 1301.34 or Sec. 1301.35(b) and desiring to do so shall, within 30 
days of the date of publication of notice of the request for a hearing 
in the Federal Register, file with the Administrator a written notice of 
intent to participate in such hearing in the form prescribed in 
Sec. 1316.48 of this chapter. Any person filing a request for a hearing 
need not also file a notice of appearance.
    (c) Any person entitled to a hearing or to participate in a hearing 
pursuant to Sec. 1301.32 or Secs. 1301.34-1301.36 may, within the period 
permitted for filing a request for a hearing or a notice of appearance, 
file with the Administrator a

[[Page 32]]

waiver of an opportunity for a hearing or to participate in a hearing, 
together with a written statement regarding such person's position on 
the matters of fact and law involved in such hearing. Such statement, if 
admissible, shall be made a part of the record and shall be considered 
in light of the lack of opportunity for cross-examination in determining 
the weight to be attached to matters of fact asserted therein.
    (d) If any person entitled to a hearing or to participate in a 
hearing pursuant to Sec. 1301.32 or Secs. 1301.34-1301.36 fails to file 
a request for a hearing or a notice of appearance, or if such person so 
files and fails to appear at the hearing, such person shall be deemed to 
have waived the opportunity for a hearing or to participate in the 
hearing, unless such person shows good cause for such failure.
    (e) If all persons entitled to a hearing or to participate in a 
hearing waive or are deemed to waive their opportunity for the hearing 
or to participate in the hearing, the Administrator may cancel the 
hearing, if scheduled, and issue his/her final order pursuant to 
Sec. 1301.46 without a hearing.

[62 FR 13956, Mar. 24, 1997]



Sec. 1301.44  Burden of proof.

    (a) At any hearing on an application to manufacture any controlled 
substance listed in Schedule I or II, the applicant shall have the 
burden of proving that the requirements for such registration pursuant 
to section 303(a) of the Act (21 U.S.C. 823(a)) are satisfied. Any other 
person participating in the hearing pursuant to Sec. 1301.35(b) shall 
have the burden of proving any propositions of fact or law asserted by 
such person in the hearing.
    (b) At any hearing on the granting or denial of an applicant to be 
registered to conduct a narcotic treatment program or as a compounder, 
the applicant shall have the burden of proving that the requirements for 
each registration pursuant to section 303(g) of the Act (21 U.S.C. 
823(g)) are satisfied.
    (c) At any hearing on the granting or denial of an application to be 
registered to import or export any controlled substance listed in 
Schedule I or II, the applicant shall have the burden of proving that 
the requirements for such registration pursuant to sections 1008(a) and 
(d) of the Act (21 U.S.C. 958 (a) and (d)) are satisfied. Any other 
person participating in the hearing pursuant to Sec. 1301.34 shall have 
the burden of proving any propositions of fact or law asserted by him/
her in the hearings.
    (d) At any other hearing for the denial of a registration, the 
Administration shall have the burden of proving that the requirements 
for such registration pursuant to section 303 or section 1008(c) and (d) 
of the Act (21 U.S.C. 823 or 958(c) and (d)) are not satisfied.
    (e) At any hearing for the revocation or suspension of a 
registration, the Administration shall have the burden of proving that 
the requirements for such revocation or suspension pursuant to section 
304(a) or section 1008(d) of the Act (21 U.S.C. 824(a) or 958(d)) are 
satisfied.

[62 FR 13956, Mar. 24, 1997]



Sec. 1301.45  Time and place of hearing.

    The hearing will commence at the place and time designated in the 
order to show cause or notice of hearing published in the Federal 
Register (unless expedited pursuant to Sec. 1301.36(h)) but thereafter 
it may be moved to a different place and may be continued from day to 
day or recessed to a later day without notice other than announcement 
thereof by the presiding officer at the hearing.

[62 FR 13956, Mar. 24, 1997]



Sec. 1301.46  Final order.

    As soon as practicable after the presiding officer has certified the 
record to the Administrator, the Administrator shall issue his/her order 
on the granting, denial, revocation, or suspension of registration. In 
the event that an application for registration to import or to 
manufacture in bulk a basic class of any controlled substance listed in 
Schedule I or II is granted, or any application for registration is 
denied, or any registration is revoked or suspended, the order shall 
include the findings of fact and conclusions of law upon which the order 
is based. The order shall specify the date on which it shall take 
effect. The Administrator

[[Page 33]]

shall serve one copy of his/her order upon each party in the hearing.

[62 FR 13956, Mar. 24, 1997]

         Modification, Transfer and Termination of Registration



Sec. 1301.51  Modification in registration.

    Any registrant may apply to modify his/her registration to authorize 
the handling of additional controlled substances or to change his/her 
name or address, by submitting a letter of request to the Registration 
Unit, Drug Enforcement Administration, Department of Justice, Post 
Office Box 28083, Central Station, Washington, DC 20005. The letter 
shall contain the registrant's name, address, and registration number as 
printed on the certificate of registration, and the substances and/or 
schedules to be added to his/her registration or the new name or address 
and shall be signed in accordance with Sec. 1301.13(j). If the 
registrant is seeking to handle additional controlled substances listed 
in Schedule I for the purpose of research or instructional activities, 
he/she shall attach three copies of a research protocol describing each 
research project involving the additional substances, or two copies of a 
statement describing the nature, extent, and duration of such 
instructional activities, as appropriate. No fee shall be required to be 
paid for the modification. The request for modification shall be handled 
in the same manner as an application for registration. If the 
modification in registration is approved, the Administrator shall issue 
a new certificate of registration (DEA Form 223) to the registrant, who 
shall maintain it with the old certificate of registration until 
expiration.

[62 FR 13956, Mar. 24, 1997]



Sec. 1301.52  Termination of registration; transfer of registration; distribution upon discontinuance of business.

    (a) Except as provided in paragraph (b) of this section, the 
registration of any person shall terminate if and when such person dies, 
ceases legal existence, or discontinues business or professional 
practice. Any registrant who ceases legal existence or discontinues 
business or professional practice shall notify the Administrator 
promptly of such fact.
    (b) No registration or any authority conferred thereby shall be 
assigned or otherwise transferred except upon such conditions as the 
Administration may specifically designate and then only pursuant to 
written consent. Any person seeking authority to transfer a registration 
shall submit a written request, providing full details regarding the 
proposed transfer of registration, to the Deputy Assistant 
Administrator, Office of Diversion Control, Drug Enforcement 
Administration, Department of Justice, Washington, DC 20537.
    (c) Any registrant desiring to discontinue business activities 
altogether or with respect to controlled substances (without 
transferring such business activities to another person) shall return 
for cancellation his/her certificate of registration, and any unexecuted 
order forms in his/her possession, to the Registration Unit, Drug 
Enforcement Administration, Department of Justice, Post Office Box 
28083, Central Station, Washington, DC 20005. Any controlled substances 
in his/her possession may be disposed of in accordance with Sec. 1307.21 
of this chapter.
    (d) Any registrant desiring to discontinue business activities 
altogether or with respect to controlled substance (by transferring such 
business activities to another person) shall submit in person or by 
registered or certified mail, return receipt requested, to the Special 
Agent in Charge in his/her area, at least 14 days in advance of the date 
of the proposed transfer (unless the Special Agent in Charge waives this 
time limitation in individual instances), the following information:
    (1) The name, address, registration number, and authorized business 
activity of the registrant discontinuing the business (registrant-
transferor);
    (2) The name, address, registration number, and authorized business 
activity of the person acquiring the business (registrant-transferee);
    (3) Whether the business activities will be continued at the 
location registered by the person discontinuing business, or moved to 
another location (if the latter, the address of the new location should 
be listed);

[[Page 34]]

    (4) Whether the registrant-transferor has a quota to manufacture or 
procure any controlled substance listed in Schedule I or II (if so, the 
basic class or class of the substance should be indicated); and
    (5) The date on which the transfer of controlled substances will 
occur.
    (e) Unless the registrant-transferor is informed by the Special 
Agent in Charge, before the date on which the transfer was stated to 
occur, that the transfer may not occur, the registrant-transferor may 
distribute (without being registered to distribute) controlled 
substances in his/her possession to the registrant-transferee in 
accordance with the following:
    (1) On the date of transfer of the controlled substances, a complete 
inventory of all controlled substances being transferred shall be taken 
in accordance with Sec. 1304.11 of this chapter. This inventory shall 
serve as the final inventory of the registrant-transferor and the 
initial inventory of the registrant-transferee, and a copy of the 
inventory shall be included in the records of each person. It shall not 
be necessary to file a copy of the inventory with the Administration 
unless requested by the Special Agent in Charge. Transfers of any 
substances listed in Schedule I or II shall require the use of order 
forms in accordance with part 1305 of this chapter.
    (2) On the date of transfer of the controlled substances, all 
records required to be kept by the registrant-transferor with reference 
to the controlled substances being transferred, under part 1304 of this 
chapter, shall be transferred to the registrant-transferee. 
Responsibility for the accuracy of records prior to the date of transfer 
remains with the transferor, but responsibility for custody and 
maintenance shall be upon the transferee.
    (3) In the case of registrants required to make reports pursuant to 
part 1304 of this chapter, a report marked ``Final'' will be prepared 
and submitted by the registrant-transferor showing the disposition of 
all the controlled substances for which a report is required; no 
additional report will be required from him, if no further transactions 
involving controlled substances are consummated by him. The initial 
report of the registrant-transferee shall account for transactions 
beginning with the day next succeeding the date of discontinuance or 
transfer of business by the transferor-registrant and the substances 
transferred to him shall be reported as receipts in his/her initial 
report.

[62 FR 13957, Mar. 24, 1997]

                          Security Requirements



Sec. 1301.71  Security requirements generally.

    (a) All applicants and registrants shall provide effective controls 
and procedures to guard against theft and diversion of controlled 
substances. In order to determine whether a registrant has provided 
effective controls against diversion, the Administrator shall use the 
security requirements set forth in Secs. 1301.72-1301.76 as standards 
for the physical security controls and operating procedures necessary to 
prevent diversion. Materials and construction which will provide a 
structural equivalent to the physical security controls set forth in 
Secs. 1301.72, 1301.73 and 1301.75 may be used in lieu of the materials 
and construction described in those sections.
    (b) Substantial compliance with the standards set forth in 
Secs. 1301.72-1301.76 may be deemed sufficient by the Administrator 
after evaluation of the overall security system and needs of the 
applicant or registrant. In evaluating the overall security system of a 
registrant or applicant, the Administrator may consider any of the 
following factors as he may deem relevant to the need for strict 
compliance with security requirements:
    (1) The type of activity conducted (e.g., processing of bulk 
chemicals, preparing dosage forms, packaging, labeling, cooperative 
buying, etc.);
    (2) The type and form of controlled substances handled (e.g., bulk 
liquids or dosage units, usable powders or nonusable powders);
    (3) The quantity of controlled substances handled;
    (4) The location of the premises and the relationship such location 
bears on security needs;
    (5) The type of building construction comprising the facility and 
the general

[[Page 35]]

characteristics of the building or buildings;
    (6) The type of vault, safe, and secure enclosures or other storage 
system (e.g., automatic storage and retrieval system) used;
    (7) The type of closures on vaults, safes, and secure enclosures;
    (8) The adequacy of key control systems and/or combination lock 
control systems;
    (9) The adequacy of electric detection and alarm systems, if any 
including use of supervised transmittal lines and standby power sources;
    (10) The extent of unsupervised public access to the facility, 
including the presence and characteristics of perimeter fencing, if any;
    (11) The adequacy of supervision over employees having access to 
manufacturing and storage areas;
    (12) The procedures for handling business guests, visitors, 
maintenance personnel, and nonemployee service personnel;
    (13) The availability of local police protection or of the 
registrant's or applicant's security personnel, and;
    (14) The adequacy of the registrant's or applicant's system for 
monitoring the receipt, manufacture, distribution, and disposition of 
controlled substances in its operations.
    (c) When physical security controls become inadequate as a result of 
a controlled substance being transferred to a different schedule, or as 
a result of a noncontrolled substance being listed on any schedule, or 
as a result of a significant increase in the quantity of controlled 
substances in the possession of the registrant during normal business 
operations, the physical security controls shall be expanded and 
extended accordingly. A registrant may adjust physical security controls 
within the requirements set forth in Secs. 1301.72-1301.76 when the need 
for such controls decreases as a result of a controlled substance being 
transferred to a different schedule, or a result of a controlled 
substance being removed from control, or as a result of a significant 
decrease in the quantity of controlled substances in the possession of 
the registrant during normal business operations.
    (d) Any registrant or applicant desiring to determine whether a 
proposed security system substantially complies with, or is the 
structural equivalent of, the requirements set forth in Secs. 1301.72-
1301.76 may submit any plans, blueprints, sketches or other materials 
regarding the proposed security system either to the Special Agent in 
Charge in the region in which the system will be used, or to the 
Diversion Operations Section, Drug Enforcement Administration, 
Department of Justice, Washington, DC 20537.
    (e) Physical security controls of locations registered under the 
Harrison Narcotic Act or the Narcotics Manufacturing Act of 1960 on 
April 30, 1971, shall be deemed to comply substantially with the 
standards set forth in Secs. 1301.72, 1301.73 and 1301.75. Any new 
facilities or work or storage areas constructed or utilized for 
controlled substances, which facilities or work or storage areas have 
not been previously approved by the Administration, shall not 
necessarily be deemed to comply substantially with the standards set 
forth in Secs. 1301.72, 1301.73 and 1301.75, notwithstanding that such 
facilities or work or storage areas have physical security controls 
similar to those previously approved by the Administration.

[36 FR 18729, Sept. 21, 1971. Redesignated at 38 FR 26609, Sept. 24, 
l973, and amended at 46 FR 28841, May 29, 1981; 47 FR 41735, Sept. 22, 
1982; 51 FR 5319, Feb. 13, 1986]



Sec. 1301.72  Physical security controls for non-practitioners; narcotic 
treatment programs and compounders for narcotic treatment programs; 
storage areas.

    (a) Schedules I and II. Raw material, bulk materials awaiting 
further processing, and finished products which are controlled 
substances listed in Schedule I or II (except GHB that is manufactured 
or distributed in accordance with an exemption under section 505(i) of 
the FFDCA which shall be subject to the requirements of paragraph (b) of 
this section) shall be stored in one of the following secured areas:
    (1) Where small quantities permit, a safe or steel cabinet;
    (i) Which safe or steel cabinet shall have the following 
specifications or the

[[Page 36]]

equivalent: 30 man-minutes against surreptitious entry, 10 man-minutes 
against forced entry, 20 man-hours against lock manipulation, and 20 
man-hours against radiological techniques;
    (ii) Which safe or steel cabinet, if it weighs less than 750 pounds, 
is bolted or cemented to the floor or wall in such a way that it cannot 
be readily removed; and
    (iii) Which safe or steel cabinet, if necessary, depending upon the 
quantities and type of controlled substances stored, is equipped with an 
alarm system which, upon attempted unauthorized entry, shall transmit a 
signal directly to a central protection company or a local or State 
police agency which has a legal duty to respond, or a 24-hour control 
station operated by the registrant, or such other protection as the 
Administrator may approve.
    (2) A vault constructed before, or under construction on, September 
1, 1971, which is of substantial construction with a steel door, 
combination or key lock, and an alarm system; or
    (3) A vault constructed after September 1, 1971:
    (i) The walls, floors, and ceilings of which vault are constructed 
of at least 8 inches of reinforced concrete or other substantial 
masonry, reinforced vertically and horizontally with \1/2\-inch steel 
rods tied 6 inches on center, or the structural equivalent to such 
reinforced walls, floors, and ceilings;
    (ii) The door and frame unit of which vault shall conform to the 
following specifications or the equivalent: 30 man-minutes against 
surreptitious entry, 10 man-minutes against forced entry, 20 man-hours 
against lock manipulation, and 20 man-hours against radiological 
techniques;
    (iii) Which vault, if operations require it to remain open for 
frequent access, is equipped with a ``day-gate'' which is self-closing 
and self-locking, or the equivalent, for use during the hours of 
operation in which the vault door is open;
    (iv) The walls or perimeter of which vault are equipped with an 
alarm, which upon unauthorized entry shall transmit a signal directly to 
a central station protection company, or a local or State police agency 
which has a legal duty to respond, or a 24-hour control station operated 
by the registrant, or such other protection as the Administrator may 
approve, and, if necessary, holdup buttons at strategic points of entry 
to the perimeter area of the vault;
    (v) The door of which vault is equipped with contact switches; and
    (vi) Which vault has one of the following: Complete electrical 
lacing of the walls, floor and ceilings; sensitive ultrasonic equipment 
within the vault; a sensitive sound accumulator system; or such other 
device designed to detect illegal entry as may be approved by the 
Administration.
    (b) Schedules III, IV and V. Raw material, bulk materials awaiting 
further processing, and finished products which are controlled 
substances listed in Schedules III, IV, and V, and GHB when it is 
manufactured or distributed in accordance with an exemption under 
section 505(i) of the FFDCA, shall be stored in the following secure 
storage areas:
    (1) A safe or steel cabinet as described in paragraph (a)(1) of this 
section;
    (2) A vault as described in paragraph (a)(2) or (3) of this section 
equipped with an alarm system as described in paragraph (b)(4)(v) of 
this section;
    (3) A building used for storage of Schedules III through V 
controlled substances with perimeter security which limits access during 
working hours and provides security after working hours and meets the 
following specifications:
    (i) Has an electronic alarm system as described in paragraph 
(b)(4)(v) of this section,
    (ii) Is equipped with self-closing, self-locking doors constructed 
of substantial material commensurate with the type of building 
construction, provided, however, a door which is kept closed and locked 
at all times when not in use and when in use is kept under direct 
observation of a responsible employee or agent of the registrant is 
permitted in lieu of a self-closing, self-locking door. Doors may be 
sliding or hinged. Regarding hinged doors, where hinges are mounted on 
the outside, such hinges shall be sealed, welded or otherwise 
constructed to inhibit removal. Locking devices for such doors shall be

[[Page 37]]

either of the multiple-position combination or key lock type and:
    (a) In the case of key locks, shall require key control which limits 
access to a limited number of employees, or;
    (b) In the case of combination locks, the combination shall be 
limited to a minimum number of employees and can be changed upon 
termination of employment of an employee having knowledge of the 
combination;
    (4) A cage, located within a building on the premises, meeting the 
following specifications:
    (i) Having walls constructed of not less than No. 10 gauge steel 
fabric mounted on steel posts, which posts are:
    (a) At least one inch in diameter;
    (b) Set in concrete or installed with lag bolts that are pinned or 
brazed; and
    (c) Which are placed no more than ten feet apart with horizontal one 
and one-half inch reinforcements every sixty inches;
    (ii) Having a mesh construction with openings of not more than two 
and one-half inches across the square,
    (iii) Having a ceiling constructed of the same material, or in the 
alternative, a cage shall be erected which reaches and is securely 
attached to the structural ceiling of the building. A lighter gauge mesh 
may be used for the ceilings of large enclosed areas if walls are at 
least 14 feet in height,
    (iv) Is equipped with a door constructed of No. 10 gauge steel 
fabric on a metal door frame in a metal door flange, and in all other 
respects conforms to all the requirements of 21 CFR 1301.72(b)(3)(ii), 
and
    (v) Is equipped with an alarm system which upon unauthorized entry 
shall transmit a signal directly to a central station protection agency 
or a local or state police agency, each having a legal duty to respond, 
or to a 24-hour control station operated by the registrant, or to such 
other source of protection as the Administrator may approve;
    (5) An enclosure of masonry or other material, approved in writing 
by the Administrator as providing security comparable to a cage;
    (6) A building or enclosure within a building which has been 
inspected and approved by DEA or its predecessor agency, BND, and 
continues to provide adequate security against the diversion of Schedule 
III through V controlled substances, of which fact written 
acknowledgment has been made by the Special Agent in Charge of DEA for 
the area in which such building or enclosure is situated;
    (7) Such other secure storage areas as may be approved by the 
Administrator after considering the factors listed in Sec. 1301.71(b), 
(1) through (14);
    (8)(i) Schedule III through V controlled substances may be stored 
with Schedules I and II controlled substances under security measures 
provided by 21 CFR 1301.72(a);
    (ii) Non-controlled drugs, substances and other materials may be 
stored with Schedule III through V controlled substances in any of the 
secure storage areas required by 21 CFR 1301.72(b), provided that 
permission for such storage of non-controlled items is obtained in 
advance, in writing, from the Special Agent in Charge of DEA for the 
area in which such storage area is situated. Any such permission 
tendered must be upon the Special Agent in Charge's written 
determination that such non-segregated storage does not diminish 
security effectiveness for Schedules III through V controlled 
substances.
    (c) Multiple storage areas. Where several types or classes of 
controlled substances are handled separately by the registrant or 
applicant for different purposes (e.g., returned goods, or goods in 
process), the controlled substances may be stored separately, provided 
that each storage area complies with the requirements set forth in this 
section.
    (d) Accessibility to storage areas. The controlled substances 
storage areas shall be accessible only to an absolute minimum number of 
specifically authorized employees. When it is necessary for employee 
maintenance personnel, nonemployee maintenance personnel, business 
guests, or visitors to be present in or pass through controlled 
substances storage areas, the registrant shall provide for adequate

[[Page 38]]

observation of the area by an employee specifically authorized in 
writing.

[36 FR 18730, Sept. 21, 1971, as amended at 37 FR 15919, Aug. 8, 1972. 
Redesignated at 38 FR 26609, Sept. 24, l973]

    Editorial Note: For Federal Register citations affecting 
Sec. 1301.72, see the List of CFR Sections Affected, which appears in 
the Finding Aids section of the printed volume and on GPO Access.



Sec. 1301.73  Physical security controls for non-practitioners; 
compounders for narcotic treatment programs; manufacturing and 
compounding areas.

    All manufacturing activities (including processing, packaging and 
labeling) involving controlled substances listed in any schedule and all 
activities of compounders shall be conducted in accordance with the 
following:
    (a) All in-process substances shall be returned to the controlled 
substances storage area at the termination of the process. If the 
process is not terminated at the end of a workday (except where a 
continuous process or other normal manufacturing operation should not be 
interrupted), the processing area or tanks, vessels, bins or bulk 
containers containing such substances shall be securely locked, with 
adequate security for the area or building. If such security requires an 
alarm, such alarm, upon unauthorized entry, shall transmit a signal 
directly to a central station protection company, or local or state 
police agency which has a legal duty to respond, or a 24-hour control 
station operated by the registrant.
    (b) Manufacturing activities with controlled substances shall be 
conducted in an area or areas of clearly defined limited access which is 
under surveillance by an employee or employees designated in writing as 
responsible for the area. ``Limited access'' may be provided, in the 
absence of physical dividers such as walls or partitions, by traffic 
control lines or restricted space designation. The employee designated 
as responsible for the area may be engaged in the particular 
manufacturing operation being conducted: Provided, That he is able to 
provide continuous surveillance of the area in order that unauthorized 
persons may not enter or leave the area without his knowledge.
    (c) During the production of controlled substances, the 
manufacturing areas shall be accessible to only those employees required 
for efficient operation. When it is necessary for employee maintenance 
personnel, nonemployee maintenance personnel, business guests, or 
visitors to be present in or pass through manufacturing areas during 
production of controlled substances, the registrant shall provide for 
adequate observation of the area by an employee specifically authorized 
in writing.

[36 FR 18731, Sept. 21, 1971. Redesignated at 38 FR 26609, Sept. 24, 
l973 and amended at 39 FR 37984, Oct. 25, 1974]



Sec. 1301.74  Other security controls for non-practitioners; narcotic 
treatment programs and compounders for narcotic treatment programs.

    (a) Before distributing a controlled substance to any person who the 
registrant does not know to be registered to possess the controlled 
substance, the registrant shall make a good faith inquiry either with 
the Administration or with the appropriate State controlled substances 
registration agency, if any, to determine that the person is registered 
to possess the controlled substance.
    (b) The registrant shall design and operate a system to disclose to 
the registrant suspicious orders of controlled substances. The 
registrant shall inform the Field Division Office of the Administration 
in his area of suspicious orders when discovered by the registrant. 
Suspicious orders include orders of unusual size, orders deviating 
substantially from a normal pattern, and orders of unusual frequency.
    (c) The registrant shall notify the Field Division Office of the 
Administration in his area of any theft or significant loss of any 
controlled substances upon discovery of such theft or loss. The supplier 
shall be responsible for reporting in-transit losses of controlled 
substances by the common or contract carrier selected pursuant to 
Sec. 1301.74(e), upon discovery of such theft or loss. The registrant 
shall also complete DEA Form 106 regarding such theft or loss. Thefts 
must be reported whether or not the controlled substances are 
subsequently recovered

[[Page 39]]

and/or the responsible parties are identified and action taken against 
them.
    (d) The registrant shall not distribute any controlled substance 
listed in Schedules II through V as a complimentary sample to any 
potential or current customer (1) without the prior written request of 
the customer, (2) to be used only for satisfying the legitimate medical 
needs of patients of the customer, and (3) only in reasonable 
quantities. Such request must contain the name, address, and 
registration number of the customer and the name and quantity of the 
specific controlled substance desired. The request shall be preserved by 
the registrant with other records of distribution of controlled 
substances. In addition, the requirements of part 1305 of the chapter 
shall be complied with for any distribution of a controlled substance 
listed in Schedule II. For purposes of this paragraph, the term 
``customer'' includes a person to whom a complimentary sample of a 
substance is given in order to encourage the prescribing or recommending 
of the substance by the person.
    (e) When shipping controlled substances, a registrant is responsible 
for selecting common or contract carriers which provide adequate 
security to guard against in-transit losses. When storing controlled 
substances in a public warehouse, a registrant is responsible for 
selecting a warehouseman which will provide adequate security to guard 
against storage losses; wherever possible, the registrant shall store 
controlled substances in a public warehouse which complies with the 
requirements set forth in Sec. 1301.72. In addition, the registrant 
shall employ precautions (e.g., assuring that shipping containers do not 
indicate that contents are controlled substances) to guard against 
storage or in-transit losses.
    (f) When distributing controlled substances through agents (e.g., 
detailmen), a registrant is responsible for providing and requiring 
adequate security to guard against theft and diversion while the 
substances are being stored or handled by the agent or agents.
    (g) Before the initial distribution of carfentanil etorphine 
hydrochloride and/or diprenorphine to any person, the registrant must 
verify that the person is authorized to handle the substances(s) by 
contacting the Drug Enforcement Administration.
    (h) The acceptance of delivery of narcotic substances by a narcotic 
treatment program shall be made only by a licensed practitioner employed 
at the facility or other authorized individuals designated in writing. 
At the time of delivery, the licensed practitioner or other authorized 
individual designated in writing (excluding persons currently or 
previously dependent on narcotic drugs), shall sign for the narcotics 
and place his specific title (if any) on any invoice. Copies of these 
signed invoices shall be kept by the distributor.
    (i) Narcotics dispensed or administered at a narcotic treatment 
program will be dispensed or administered directly to the patient by 
either (1) the licensed practitioner, (2) a registered nurse under the 
direction of the licensed practitioner, (3) a licensed practical nurse 
under the direction of the licensed practitioner, or (4) a pharmacist 
under the direction of the licensed practitioner.
    (j) Persons enrolled in a narcotic treatment program will be 
required to wait in an area physically separated from the narcotic 
storage and dispensing area. This requirement will be enforced by the 
program physician and employees.
    (k) All narcotic treatment programs must comply with standards 
established by the Secretary of Health and Human Services (after 
consultation with the Administration) respecting the quantities of 
narcotic drugs which may be provided to persons enrolled in a narcotic 
treatment program for unsupervised use.
    (l) DEA may exercise discretion regarding the degree of security 
required in narcotic treatment programs based on such factors as the 
location of a program, the number of patients enrolled in a program and 
the number of physicians, staff members and security guards. Similarly, 
such factors will be taken into consideration when evaluating existing 
security or requiring

[[Page 40]]

new security at a narcotic treatment program.

[36 FR 7778, Apr. 24, 1971; 36 FR 13386, July 21, 1971, as amended at 36 
FR 18731, Sept. 21, 1971. Redesignated at 38 FR 26609, Sept. 24, l973]

    Editorial Note: For Federal Register citations affecting 
Sec. 1301.74, see the List of CFR Sections Affected, which appears in 
the Finding Aids section of the printed volume and on GPO Access.



Sec. 1301.75  Physical security controls for practitioners.

    (a) Controlled substances listed in Schedule I shall be stored in a 
securely locked, substantially constructed cabinet.
    (b) Controlled substances listed in Schedules II, III, IV, and V 
shall be stored in a securely locked, substantially constructed cabinet. 
However, pharmacies and institutional practitioners may disperse such 
substances throughout the stock of noncontrolled substances in such a 
manner as to obstruct the theft or diversion of the controlled 
substances.
    (c) This section shall also apply to nonpractitioners authorized to 
conduct research or chemical analysis under another registration.
    (d) Carfentanil etorphine hydrochloride and diprenorphine shall be 
stored in a safe or steel cabinet equivalent to a U.S. Government Class 
V security container.

[39 FR 3674, Jan. 29, 1974, as amended at 39 FR 17838, May 21, 1974; 54 
FR 33674, Aug. 16, 1989; 62 FR 13957, Mar. 24, 1997]



Sec. 1301.76  Other security controls for practitioners.

    (a) The registrant shall not employ, as an agent or employee who has 
access to controlled substances, any person who has been convicted of a 
felony offense relating to controlled substances or who, at any time, 
had an application for registration with the DEA denied, had a DEA 
registration revoked or has surrendered a DEA registration for cause. 
For purposes of this subsection, the term ``for cause'' means a 
surrender in lieu of, or as a consequence of, any federal or state 
administrative, civil or criminal action resulting from an investigation 
of the individual's handling of controlled substances.
    (b) The registrant shall notify the Field Division Office of the 
Administration in his area of the theft or significant loss of any 
controlled substances upon discovery of such loss or theft. The 
registrant shall also complete DEA (or BND) Form 106 regarding such loss 
or theft.
    (c) Whenever the registrant distributes a controlled substance 
(without being registered as a distributor, as permitted in 
Sec. 1301.13(e)(1) and/or Secs. 1307.11-1307.12) he/she shall comply 
with the requirements imposed on nonpractitioners in Sec. 1301.74 (a), 
(b), and (e).

[36 FR 7778, Apr. 24, 1971, as amended at 36 FR 18731, Sept. 21, 1971; 
37 FR 15919, Aug. 8, 1972. Redesignated at 38 FR 26609, Sept. 24, l973; 
47 FR 41735, Sept. 22, 1982; 56 FR 36728, Aug. 1, 1991; 62 FR 13957, 
Mar. 24, 1997]



Sec. 1301.77  Security controls for freight forwarding facilities.

    (a) All Schedule II-V controlled substances that will be temporarily 
stored at the freight forwarding facility must be either:
    (1) stored in a segregated area under constant observation by 
designated responsible individual(s); or
    (2) stored in a secured area that meets the requirements of Section 
1301.72(b) of this Part. For purposes of this requirement, a facility 
that may be locked down (i.e., secured against physical entry in a 
manner consistent with requirements of Section 1301.72(b)(3)(ii) of this 
part) and has a monitored alarm system or is subject to continuous 
monitoring by security personnel will be deemed to meet the requirements 
of Section 1301.72(b)(3) of this Part.
    (b) Access to controlled substances must be kept to an absolute 
minimum number of specifically authorized individuals. Non-authorized 
individuals may not be present in or pass through controlled substances 
storage areas without adequate observation provided by an individual 
authorized in writing by the registrant.
    (c) Controlled substances being transferred through a freight 
forwarding facility must be packed in sealed, unmarked shipping 
containers.

[65 FR 44678, July 19, 2000; 65 FR 45829, July 25, 2000]

[[Page 41]]

                 Employee Screening--Non- Practitioners



Sec. 1301.90  Employee screening procedures.

    It is the position of DEA that the obtaining of certain information 
by non-practitioners is vital to fairly assess the likelihood of an 
employee committing a drug security breach. The need to know this 
information is a matter of business necessity, essential to overall 
controlled substances security. In this regard, it is believed that 
conviction of crimes and unauthorized use of controlled substances are 
activities that are proper subjects for inquiry. It is, therefore, 
assumed that the following questions will become a part of an employer's 
comprehensive employee screening program:

    Question. Within the past five years, have you been convicted of a 
felony, or within the past two years, of any misdemeanor or are you 
presently formally charged with committing a criminal offense? (Do not 
include any traffic violations, juvenile offenses or military 
convictions, except by general court-martial.) If the answer is yes, 
furnish details of conviction, offense, location, date and sentence.

    Question. In the past three years, have you ever knowingly used any 
narcotics, amphetamines or barbiturates, other than those prescribed to 
you by a physician? If the answer is yes, furnish details.

    Advice. An authorization, in writing, that allows inquiries to be 
made of courts and law enforcement agencies for possible pending charges 
or convictions must be executed by a person who is allowed to work in an 
area where access to controlled substances clearly exists. A person must 
be advised that any false information or omission of information will 
jeopardize his or her position with respect to employment. The 
application for employment should inform a person that information 
furnished or recovered as a result of any inquiry will not necessarily 
preclude employment, but will be considered as part of an overall 
evaluation of the person's qualifications. The maintaining of fair 
employment practices, the protection of the person's right of privacy, 
and the assurance that the results of such inquiries will be treated by 
the employer in confidence will be explained to the employee.

[40 FR 17143, Apr. 17, 1975]



Sec. 1301.91  Employee responsibility to report drug diversion.

    Reports of drug diversion by fellow employees is not only a 
necessary part of an overall employee security program but also serves 
the public interest at large. It is, therefore, the position of DEA that 
an employee who has knowledge of drug diversion from his employer by a 
fellow employee has an obligation to report such information to a 
responsible security official of the employer. The employer shall treat 
such information as confidential and shall take all reasonable steps to 
protect the confidentiality of the information and the identity of the 
employee furnishing information. A failure to report information of drug 
diversion will be considered in determining the feasibility of 
continuing to allow an employee to work in a drug security area. The 
employer shall inform all employees concerning this policy.

[40 FR 17143, Apr. 17, 1975]



Sec. 1301.92  Illicit activities by employees.

    It is the position of DEA that employees who possess, sell, use or 
divert controlled substances will subject themselves not only to State 
or Federal prosecution for any illicit activity, but shall also 
immediately become the subject of independent action regarding their 
continued employment. The employer will assess the seriousness of the 
employee's violation, the position of responsibility held by the 
employee, past record of employment, etc., in determining whether to 
suspend, transfer, terminate or take other action against the employee.

[40 FR 17143, Apr. 17, 1975]



Sec. 1301.93  Sources of information for employee checks.

    DEA recommends that inquiries concerning employees' criminal records 
be made as follows:

    Local inquiries. Inquiries should be made by name, date and place of 
birth, and other identifying information, to local courts and law 
enforcement agencies for records of pending charges and convictions. 
Local practice may require such inquiries to be made in person, rather 
than by mail, and a copy of an

[[Page 42]]

authorization from the employee may be required by certain law 
enforcement agencies.
    DEA inquiries. Inquiries supplying identifying information should 
also be furnished to DEA Field Division Offices along with written 
consent from the concerned individual for a check of DEA files for 
records of convictions. The Regional check will result in a national 
check being made by the Field Division Office.

[40 FR 17143, Apr. 17, 1975, as amended at 47 FR 41735, Sept. 22, 1982]