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Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Rules and Regulations
U.S. Small Business Administration SBA 30 size standardsbased on the number of employees or annual receipts, depending on the industry determine what constitutes a small
entity under the RFA. The SBA has established these size standards for business activities corresponding to each NAICS code. The SBA size standards for each of the NAICS codes
that best correspond to NTPs are listed below: Firms below this SBA size standard based on annual receipts for these codes are small firmsand thus small entities under the RFA.

SBA SIZE STANDARDS
Size standards $ million in annual receipts
NAICS codes
Description
622210
621420

Psychiatric and Substance Abuse Hospitals
Outpatient Mental Health and Substance Abuse Centers

41.5
16.5

Size standards number of employees

Source: SBA, August 19, 2019. Accessed 9/8/20120.

DEA used SUSB data to estimate the number of small firms for each of these NAICS codes. In 2012, the last year for which the SUSB has published the necessary receipts data,31 180 of 411
43.78% firms within code 622210 fell below the SBA size standard and thus were small firms.32 4,369 of 4,987 87.61
percent firms within code 621420 fell below the standard. DEA assumes that these percentages of small firms for each code have remained constant in recent
years. DEA then applied these percentages to the updated totals found in the 2017 SUSB Annual Datasets by Establishment Industry, resulting in approximately 173 firms 43.78 percent of the total 396 within code 622210 and 5,714 firms 87.61 percent of the total 6,523 within code 621420 classified as small firms. Combining these values indicates that, for these codes, 5,887 of 6,919 firms, or 85.1 percent, are small firms. Thus, since these are the NAICS

codes that most closely correspond to NTP entities, DEA estimates that 85.1
percent of NTP entities are small firms.
As described above, DEA has concluded that there are roughly 1,026 total NTP
entities in the United States.
Accordingly, DEA estimates that 873
85.1 percent of the total 1,026 NTP
entities are small entities. The analysis is summarized in the table below.

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SUMMARY OF REGISTRATION, ESTABLISHMENT, ENTITY, AND SMALL ENTITY
Business activity
Number of registrations/
establishments
Entity to establishment ratio
Number of entities
Percent small entities
Narcotic Treatment Program
Percent Small Entity

1,832

0.56

1,026

85.1

Number of small entities 873
85.1%

In consultation with the SBAs Office of Advocacy, DEA has adopted the SBA
standard that the amount of small entities affected by a final rule is substantial if 30% or more of the relevant group of small entities will be affected by the rule. As described in the Summary of Costs and Benefits section, this final rule is an enabling rule and a deregulatory action resulting in a total cost savings of at least $3,509,759 over a five-year period. The final rule allows NTP registrants another option for expanding the reach of their services, if they so choose, without requiring that current or future NTP registrants change their business practices or incur any costs. DEA estimates that only an additional eleven entities will choose to operate a mobile NTP as a coincident
activity in response to the final rule.
Because the final rule is an enabling rule and thus does not affect entities that do not change their behavior in response to it, only these 11 NTP
entities and the 8 NTPs currently operating units under ad hoc agreements are affected by the rule.
Therefore, DEA estimates that 1.85
percent 19 of 1,026 of total NTP
entities in the United States are affected by this final rule. DEA estimates that 11
NTPs not already operating a mobile NTP or 1.07 percent of all NTPs will choose to operate a mobile NTP. DEA
has no reason to conclude that the percentage of small NTP entities that begin operating mobile components in response to the rule will differ from the percentage of total NTPs 11 of 1,026, or
1.07 percent, especially since most NTP
entities are small. Thus, DEA estimates that 1.07 percent 9 of the 873 33 of small NTP entities will choose to begin operating a mobile NTP as a coincident activity in response to the rule.

30 The SBA is an independent agency of the Federal Government to aid, counsel, assist, and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of the nation. https www.sba.gov/about-sba last accessed: 9/8/2020.

31 SUSB receipts data are available only for Economic Census years years ending in 2 and 7.
Thus, DEA used SUSB data from 2012, the most recent available annual receipt data.
32 SUSB data gives the number of firms for each NAICS code within a series of ranges of annual receipts. Thus, to determine the number of firms falling below the SBA size standard, DEA added
together the number of firms in each range falling completely below the SBA standard. Because the SBA size standard for code 622210 falls within the middle of a range, DEAs calculations may slightly underestimate the number of small firms for this code.
33 0.0107 873 = 9.3411. Rounding down to the nearest whole number yields 9.

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Estimating Impact on Small Entities The nine affected small entities are estimated to realize the same cost savings as other affected entities, as calculated above: Between $319,069 at a 7 percent discount rate and $359,369
at a 3 percent discount rate per entity over a five-year period. DEA generally considers impacts that are greater than 3% of yearly revenue to be a significant economic impact on an entity, and recognizes that this amount of cost savings rises above that threshold for those small entities.

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