Tax-Free Alcohol and Controlled Substances
UND aims to provide comprehensive information and support for researchers working with tax-free alcohol or controlled substances to ensure compliance with federal regulations and promote safe and effective research practices.
Tax-Free Alcohol
Tax-free Alcohol (TFA) refers to ethanol/ethyl alcohol that is 190 proof or higher. It is regulated by the Alcohol and Tobacco Tax and Trade Bureau (TTB) and UND requires authorized users to complete a Use of Tax-Free Alcohol Agreement and submit to the Office of Safety.
Authorized users include any:
- Scientific university or college of learning
- Educational institution exempt from income tax under section 501(a) of the Internal Revenue Code
- Laboratory for use exclusively in scientific research.
Departments and laboratories that purchase TFA under the University industrial alcohol
user permit must meet requirements to maintain this permit. Authorized purchasers
are subject to an audit at any time by officials of the TTB.
NOTE: Researchers and other users are urged to substitute reagent grade alcohol where
possible to minimize the amount of recordkeeping and liability.
Prohibited Use of TFA
- Tax-Free alcohol may not be used for beverage purposes, or in any food product, or in any preparation used in preparing a beverage or a food product.
- Tax-Free alcohol may not be sold.
- Tax-Free alcohol may not be used in the manufacture of any product which will be sold or in any product resulting from the use of tax-free alcohol which will be sold.
- Tax-Free alcohol may not be removed from the premises authorized under the permit.
Storage
The regulations require the secure storage of tax-free alcohol while unattended or removing an amount from the inventory for use. Secure storage includes:
- Cabinet under a fume hood
- Lockable flammable storage cabinet
- Locked lab where tax-free ethanol is stored
Labeling
All reagents and dilutions made from tax-free ethanol should be appropriately and accurately labeled to ensure they are not transported off the premises.
Records & Inventory
The regulations require that all persons who obtain tax-free ethanol must maintain an inventory of the tax-free ethanol they have in storage and records of its use, sufficient to identify any lost, stolen or destroyed ethanol. All records must identify tax-free alcohol by proof, date of receipt/usage, and quantity involved. Records shall be kept current at all times. Report any discrepancies in the inventory to the Office of Safety.
- Records of receipt: Consist of the invoice, bill or bill of lading, or another document used for the intended purpose. Records of receipt shall record the proof, date of transaction, and quantity of tax-free alcohol actually received.
- Records of usage: Identify the tax-free alcohol by quantity, proof, and purpose of removal.
- A physical inventory of tax-free alcohol in a labs possession must be taken semi-annually and for periods ending June 30 and December 31 of each year. These inventories may be recorded separately or as an entry in the record of usage with any necessary adjustments (losses or gains).
Penalties
Use of tax-free alcohol in any manner prohibited including selling, removing from authorized premises will be required to pay the tax on the alcohol.
DEA Controlled Substances
Due to potential for abuse of some drugs, researchers using items identified by the
US Department of Justice, Drug Enforcement Administration (DEA) as controlled substances
must adhere to extensive licensing, registration, storage, security, use, and disposal
regulations. Controlled substances may only be used for duly authorized, legitimate
medical or scientific research purposes, to the extent permitted by a registrant's
license and
registration, and in conformity with federal statutes and regulations. All DEA registrants must notify the Office of Safety upon receipt or renewal of their
registration. Registration requirements are based upon the schedule of the substance
required for the research purpose.
Storage and Security
Controlled substances possessed, kept, or otherwise stored in a manner or location
not in compliance with state or federal law are subject to seizure and forfeiture.
Failure to comply with applicable requirements may also result in a suspension of
purchasing privileges and a ban on the use of controlled substances in future experiments
conducted at UND.
In order to guard against theft or diversion, all controlled substances, regardless of schedule, must be kept under double lock, and accessible only to authorized personnel. The number of authorized staff must be kept to the minimum essential for efficient operation, and the stocks of controlled substances to the smallest quantity needed. All controlled substances must be kept locked in their storage location except for the actual time required for authorized staff to remove, legitimately work with, and replace them.
Recordkeeping
PIs must maintain complete and accurate inventory records for all controlled substances.
UND Controlled Substances Manual