Federal Register - June 28, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Rules and Regulations registrations, DEA needs to develop a relationship, or ratio, between the total number of NTP registrations and the number of entities possessing those registrations.
To do so, DEA first determined the North American Industry Classification System NAICS 28 classification codes that most closely represent the affected business activitynamely, NTP activity.
33881
The business activity and its corresponding representative NAICS
codes are listed in the table below.
BUSINESS ACTIVITY AND REPRESENTATIVE NAICS CODES
Business activity
NAICS codes
Narcotic Treatment Program
622210Psychiatric and Substance Abuse Hospitals.
621420Outpatient Mental Health and Substance Abuse Centers.
code. For the purposes of this analysis, the term firm as defined in the SUSB
is used interchangeably with entity as defined in the RFA. From this, DEA
calculated a firm-to-establishment ratioi.e., the average number of organizations for each establishment engaged in these activities. DEA
DEA then gathered economic data for those codes using the U.S. Census Bureau, Statistics of U.S. Businesses SUSB. Specifically, DEA used the SUSB data to determine the number of firms and the number of establishments in the United States that correspond to each relevant NAICS
calculated this ratio to be 0.56, as listed in the table below. In other words, each organization engaged in activities covered by these NAICS codes operated, on average, slightly fewer than two establishments.
FIRM-TO-ESTABLISHMENT RATIO BY NAICS CODE
NAICS code
Firm to establishment ratio
Number of establishments
Number of firms
Total Narcotic Treatment Program
6,919
12,449
0.56
622210Psychiatric and Substance Abuse Hospitals
621420Outpatient Mental Health and Substance Abuse Centers
396
6,523
623
11,826
.64
.55
Source: SUSB.29 Accessed 9/8/2020.
822e1, the number of NTP
establishments should be roughly equivalent to the number of DEA
registrations for NTPs. Thus, DEA
applied the calculated firm-toestablishment ratio of 0.56 to the 1,832
Because an entity generally must obtain a separate registration at each principal place of business or professional practice where it manufactures, distributes, or dispenses a controlled substance, see 21 U.S.C.
NTP registrations in DEAs database to estimate the number of NTP entities, resulting in an estimate of 1,026 NTP
entities in the United States. The table below summarizes this calculation.
NUMBER OF ENTITIES BY BUSINESS ACTIVITY
khammond on DSKJM1Z7X2PROD with RULES
Business activity
NAICS code
Number of registrations/
establishment
Entity to establishment ratio
Number of entities
Narcotic Treatment Program
622210
621420
1,832
0.56
1,026
Grand Total
1,832
1,026
Thus, based on these calculations, DEA estimates that 1,026 entities could currently operate a mobile NTP, including the eight NTP entities that currently operate mobile NTP
components. Of these, DEA estimates that at least an additional eleven entities will choose to operate a mobile NTP as a coincident activity in response to the
final rule, matching the previous total of nineteen mobile NTPs that were in operation over the previous five years.
Because the final rule is an enabling rule and thus does not affect entities that choose not to change their behavior in response to it, only NTP entities that choose to establish mobile NTP units will be affected by the rule. Therefore,
DEA estimates that 1.07 percent 11 of 1,026 of total NTP entities in the United States will be affected by this final rule.
To estimate the number of NTP
entities that are small entities for RFA
purposes, DEA used a process similar to that used to estimate the total number of NTP entities. As described above,
28 The North American Industry Classification System NAICS is the standard used by the Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. https
www.census.gov/eos/www/naics/ last accessed:
September 1, 2020.
29 Data for NAICS codes related to NTPs are based on the 2017 SUSB Annual Datasets by Establishment Industry, last revised on July 16, 2020. SUSB annual or static data includes: Number
of firms, number of establishments, employment, and annual payroll for most U.S. business establishments. The data are tabulated by geographic area, industry, and employment size of the enterprise. The industry classification is based on 2012 NAICS codes.
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