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Small Business FDA User Fee Adjustment Act of 2021
12/31/2022, 5:07 AM
Summary of Bill HR 4405
The bill aims to provide relief to small businesses by reducing the fees they are required to pay for FDA services, such as the review of new drug applications or the inspection of manufacturing facilities. This is intended to help small businesses, which may not have the same financial resources as larger companies, to bring their products to market more easily and affordably.
In addition to reducing fees for small businesses, the bill also includes provisions to ensure that the FDA continues to have the necessary resources to carry out its regulatory responsibilities. This includes increasing fees for larger companies to offset the reduction in fees for small businesses. Overall, the Small Business FDA User Fee Adjustment Act of 2021 aims to strike a balance between supporting small businesses and ensuring that the FDA can effectively regulate the products it oversees. It is currently being debated in Congress and may undergo further revisions before potentially being signed into law.
Congressional Summary of HR 4405
Small Business FDA User Fee Adjustment Act of 2021
This bill reduces and waives certain fees related to marketing certain over-the-counter (OTC) drugs for businesses with fewer than 500 employees, including employees of affiliates.
Starting in FY2022, the Food and Drug Administration (FDA) must waive the fee for the first OTC monograph order request from such a business. (Generally, an OTC monograph order request is a request for the FDA to evaluate whether a nonprescription drug meets certain standards.)
The fee for each subsequent OTC monograph order request for such a business shall be 25% of the amount otherwise owed.
For such a business, the FDA must also reduce the annual OTC monograph drug facility fee to 25% of the amount otherwise owed. (Generally, such a facility is engaged in the manufacturing or processing of an OTC monograph drug.)
