AUTHORITY: §§ 201.1 to 201.7 issued under sec. 5, 46 Stat. 587; 5 U. S. C. 282c.

SOURCE: §§ 201.1 to 201.7 contained in Narcotic Regulations 4, 4 F. R. 2761.

§ 201.1 Appeals-(a) From decision of Commissioner. The appeal to the Secretary of the Treasury (referred to in this part as the Secretary) from an order, rule, or decision of the Commissioner of Narcotics (referred to in this part as the Commissioner) may be initiated by the aggrieved party in the following manner only:

(1) He shall file with the Secretary, within 15 days from the date of the order, rule, or decision, a notice in writing of his intention to appeal. At the time of the filing of such notice he shall serve a copy thereof upon the Commissioner.

(2) He shall file with the Secretary, within 30 days from the date of such order, rule, or decision, a written petition in the form of a brief as provided in § 201.3.

(b) From failure of Commissioner to rule upon or decide matter. The appeal to the Secretary from the failure of the Commissioner to rule upon or decide any matter presented to him by proper application may be initiated by the aggrieved party in the following manner only:

(1) He shall file with the Secretary, after the lapse of a reasonable time from the date of the presentation of such matter, a notice in writing of his intention to appeal. At the time of the filing

of such notice he shall serve a copy thereof upon the Commissioner.

(2) He shall file with the Secretary, within 30 days from the date of the filing of such notice, a written petition in the form of a brief as provided in § 201.3.

Pend

§ 201.2 Suspension of orders. ing the presentation of the appeal to the Secretary and his decision thereon, the Secretary may, upon application and for cause shown, suspend the operation of any order, rule, or decision after his receipt of a timely notice of the intention to appeal.

§ 201.3 Briefs—(a) Brief of appellant. The brief filled with the Secretary shall be printed or typewritten and shall set forth clearly the complaint and shall contain numbered statements of the facts and arguments upon which the appellant relies in support thereof. At the time of filing his brief the appellant shall serve a copy thereof upon the Commissioner.

(b) Brief of the Commissioner. The Commissioner shall, within 20 days from the date of the filing of the brief of the appellant, file with the Secretary a brief for his side of the case. The brief of the Commissioner shall be so drawn as fully and completely to advise the appellant and the Secretary of the nature of the defense. There shall be included therein, in addition to the arguments of the Commissioner, a specific admission or denial of each material allegation of fact contained in the brief of the appellant, and clear and concise numbered statements of the facts upon which the Commissioner relies in his defense. the time of filing his brief the Commissioner shall serve a copy thereof upon the appellant.

At

(c) Reply. The appellant may file with the Secretary, within 10 days from the date of the filing, of the brief of the Commissioner, a reply brief, a copy of which shall be served upon the Commissioner.

(d) Further pleadings. The Secretary, upon motion of either party in which good cause is shown, or upon his own motion, may order a further and better statement of the nature of the claim or defense, or of any matter stated in any of the briefs. Such a motion filed by a party shall point out the defects complained of and the details desired. If the order of the Secretary is not

obeyed within 10 days or within such other time as the Secretary may fix, the Secretary may make such order in view thereof as shall be equitable and just. A copy of any further statement of the nature of the claim or defense filed pursuant to this section shall be served upon the appellant or Commissioner as the case may be.

§201.4 Hearing-(a) Before Secretary. The Secretary will notify the appellant and Commissioner of the time and place where he will conduct the hearing to afford interested parties, their representatives, and witnesses an opportunity to present evidence and argument on the controverted issues. The notification thus served will also advise the parties of the manner in which the hearing before the Secretary shall be conducted.

(b) Before Examining Board. If, however, the Secretary deems it essential to a judicious determination of the controverted issues, he may appoint an Examining Board (referred to in this part as the Board), which will consist of one or more persons in the employ of the Treasury Department who have not previously considered the subject matter of the appeal, to conduct a hearing to afford interested parties, their representatives, and their witnesses an opportunity to appear and present evidence and arguments. Each member of the Board, within 2 days after his appointment, shall file with the Secretary a statement made under oath that he has not previously considered the subject matter of the appeal. Thereafter the Secretary will notify the respective parties of the appointment of the member or members to the Board.

The hearing before the Board will be conducted in the following manner:

(1) The Board shall determine the time and place of the hearing, giving due regard to any request filed by either party within 5 days from the date of his notification of the appointment of the member or members to the Board.

(2) A reporter shall be appointed by the Board and shall be present at all sessions of the Board at which a reporter may be necessary. With the exception of oral arguments on questions of law, he shall record, verbatim, the proceedings before the Board and the testimony, if any, taken before it. He may set down the proceedings and testimony, in the first instance, in shorthand.

(3) Witnesses shall be sworn or affirmed by a member of the Board.

(4) Evidence submitted at the hearing may include testimony of witnesses, real evidence, affidavits, depositions, and documents and records or duly authenticated copies thereof.

(5) Either party may object to the introduction of any evidence, and the Board shall rule on such objection, but may, in its discretion, relax the ordinary rules of evidence. If the ruling of the Board is adverse to the objecting party, an exception may be taken thereto. Any exception taken by either party to the ruling of the Board shall be noted in the record at the time it is taken and shall briefly specify the grounds upon which it is made.

(6) Depositions may be arranged by either party with the consent of the Board and shall be taken in the manner prescribed by it. Due regard shall be given by the Board to the convenience of the parties and the testimony to be elicited.

(7) The Board, for cause shown, may, in its discretion, permit other interested parties to intervene and present additional evidence and argument. However, any written argument shall be received and considered only upon a proper showing that a copy thereof has been served upon the Commissioner and the appellant.

(8) Other questions of procedure shall be determined by the Board.

§ 201.5 Findings of law and facts-(a) Proposed findings of law and facts by opposing parties. Before the closing of proof in any appeal referred to a Board, the parties shall have 15 days within which to file with the Board proposed findings of law and facts and arguments in support thereof. At the time of such filing, the respective parties shall serve a copy thereof upon the opposite party. Such proposed findings and arguments shall, upon the filing of the Board's report with the Secretary, be filed with the original record in the case for consideration of the Secretary in connection with any exception by either party and may be referred to by either party in support of any exception to the findings of the Board.

either party and shall notify the parties of the time and place thereof.

(c) Findings of law and facts by Board. The Board shall prepare and file with the Secretary its findings of law and facts, recommendations, and a summary of all evidence and argument presented at the hearing. At the same time the Board shall serve a copy thereof upon the respective parties. The Board shall also file with the Secretary the original record, including all evidence presented at the hearing.

(d) Exceptions. Each party shall have 10 days from the date of the filing of the Board's findings of law and facts, recommendations, and summary of evidence and argument to file with the Secretary exceptions thereto.

§ 201.6 Decision of Secretary. The Secretary will consider all matters presented to or filed with him pursuant to the foregoing provisions, and on the basis thereof he will affirm, reverse, or modify the action of the Commissioner, or direct such action to be taken as the Secretary shall deem equitable and just.

§ 201.7 Time-(a) Extension or restriction of time. The Secretary may, in his discretion, for cause shown, extend the foregoing time limits in any case. If the Secretary considers that the public interest so requires, he may, in his discretion, further restrict the time limits upon giving reasonable notice to such parties as he considers to be interested.

(b) Computation of time. Whenever the regulations in this part prescribe a time for the performance of any act, Sundays and legal holidays shall count just as any other days, except that when the time prescribed for the performance of an act expires on a Sunday or a legal holiday, such time shall extend to and include the next succeeding day that is not a Sunday or legal holiday.

SUBPART B-COOPERATION WITH STATES AUTHORITY: §§ 201.8 to 201.11 issued under sec. 8, 46 Stat. 587; 21 U. S. C. 198. SOURCE: §§ 201.8 to 201.11 contained in Bureau of Narcotics Regulations 4, 3 F. R. 1231.

§ 201.8 State or municipal prosecutions. The Commissioner may furnish to State or municipal prosecuting officers a report or statement of such information, obtained from time to time by the Bureau of Narcotics concerning a viola

tion or suspected violation of narcotic laws, as the Commissioner may deem cognizable by the said prosecuting officers for further investigation or prosecution in their respective jurisdictions.

§ 201.9 Attendance of officers. The Commissioner may direct the attendance of any officer, agent, or employee of the Bureau of Narcotics who may be in possession of pertinent information, to testify as a witness in any inquiry or proceeding instituted by authority of law by or before a grand jury, municipal magistrate, or State court, where the direct object of such inquiry or proceeding is to determine whether there has been, in a particular case, a violation of the State law or municipal ordinance relating to narcotic drugs. The Commissioner may also direct any such officer, agent, or employee to produce for examination at said inquiry or proceeding such record of the Bureau of Narcotics or copy of any part thereof as the Commissioner may deem pertinent to the particular case. The officer, agent, or employee so producing any permanent record of said Bureau for examination shall not relinquish custody or control thereof but, immediately upon conclusion of the inquiry or proceeding, shall promptly return the record to its appropriate official repository.

§ 201.10 Hearings before licensing boards or other State agencies having power to suspend or revoke licenses. The Commissioner may furnish to State licensing boards or other State agencies authorized by law to revoke or suspend licenses to practice a profession, or engage in a trade, in the course of which narcotic drugs are possessed, controlled, or dispensed; or to any State board, officer, or agency authorized by law to grant, suspend, or revoke any license or permit when, in the exercise of said authority, the narcotic drug addiction of the applicant, licentiate, or permittee, or his conviction of a violation of any law relating to narcotic drugs, may have a material bearing upon the granting, withholding, suspension, or revocation of said license or permit; such information in the possession of the Bureau of Narcotics as the Commissioner may deem appropriate to the enforcement of any State law or regulation or municipal ordinance relating to the granting, withholding, suspension, or revocation of State licenses or permits: Provided, That no information shall be furnished with

respect to any case in which an offer in compromise has been accepted under authority of section 3761-Internal Revenue Code (26 U. S. C. 3761), unless such case involves the reported narcotic drug addiction of a person who is registered or qualified for registration under the Harrison Narcotic Law (38 Stat. 785; 26 U. S. C. 2550-2565, 3220-3228), or unless the information is requested in a particular case by such State licensing board or State agency or duly qualified representative thereof, for use in the enforcement of any State law or regulation or municipal ordinance relating to the granting, withholding, suspension, or revocation of State licenses. The Commissioner may also direct the attendance, as a witness, in hearings held by such boards or agencies, of any officer, agent, or employee of the Bureau of Narcotics, and the production of records or copies thereof, subject to the same limitations, so far as applicable, as provided in 201.9 with respect to an inquiry or proceeding instituted by or before a grand jury, municipal magistrate, or State court.

§ 201.11 General. Nothing contained in this subpart shall be construed to authorize the Commissioner to furnish information, or to direct the attendance of any officer, agent, or employee to testify, relative to the possession of or traffic in narcotic drugs in any case where the litigants are private parties or where the object of the prospective inquiry, proceeding, or hearing is other than that indicated in §§ 201.8-201.10.

The Commissioner shall exercise sound discretion in executing the authority granted in this subpart to the end that no investigation being conducted at any time under his direct or indirect supervision shall be prejudiced by the premature disclosure of facts developed by the investigation. The Commissioner shall solicit the cooperation of appropriate State and municipal officers in arranging to execute the authority granted in this subpart in any given case, so that there shall be a minimum of interference with or interruption to the investigative duties of any officer or agent of the Bureau of Narcotics or with the duty of such officer or agent to present properly and promptly to Federal prosecuting attorneys, grand juries, and courts such cases as the Commissioner may direct.