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sion. Most of this safety activity has been in the area of toys where work has been or is being carried out on the following:

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2. Have any FDA requests for the use of Bureau test facilities or personnel been turned down and, if so, what reasons were given?

A brief description of the procedure concerning FDA requests to NBS would, it is felt, prove more meaningful in responding to this question as it cannot be answered in a simple yes or no fashion. Generally, preliminary discussions between FDA and NBS are held to determine the most suitable projects to carry out within the limitations of funds provided by FDA, namely, $323,000 in FY 1972 and $132,000 in FY 1971. Only those which through mutual agreement would provide the most urgently required information and which best fit the talents of the available NBS staff are selected. Therefore, at any given time, other projects must be held in abeyance until funds become available. The situation has also occurred where NBS staffing was not available (otherwise engaged) for a specific project, but a knowledgeable NBS scientist has assumed the responsibility of overseeing on behalf of FDA, the project subsequently assigned to a private laboratory.

3. Is it reasonable and logical to earmark possibly as much as a third of NBS's effort for health and safety?

A large portion, at least a third, of NBS effort already supports or relates directly to health and safety. A much larger portion underpins the measurement system essential to assure health and safety.

NBS has four major objectives:

To Provide Physical Measurement Services Needed to Develop and Utilize Science and Technology

To Provide Scientific and Technological Services for Industry and Government

To Provide the Technical Basis for Equity in Trade

To Provide Technical Services Which Promote Public Safety.

NBS services are usually based on "meaningful" measurements, i.e., the ability to measure what is wanted to the accuracy needed. The understanding and measurement know-how required usually has a wide range of applicability including health and safety. For example, NBS skill in analytical chemistry and in developing Standard Reference Materials for the industrial and academic communities is presently being used in a collaborative program with the health services community to provide the Nation's clinical laboratories the means for self calibration in areas of critical importance.

Similar relationships and opportunities for multiple use of NBS competences exist in other health and safety problem areas. These opportunities are being exploited in varying degrees depending on NBS's capability to manage within its relatively small budget and the spending pattern of other agencies. For example, we have programs essential to informed and enforceable pollution abatement and to the avoidance of failures in materials and structures either during normal use or when exposed to natural disasters.

NBS is engaged in generic measurements for consumer product safety in areas such as safety of kitchen range surfaces, safety test methods for artificial turf, snow blowers, vacuum cleaners, strength studies of children, and riot helmets and protective equipment for police officers. NBS has major efforts in fire research, including flammable fabrics and building safety. Voluntary standards are being developed for carbonated beverage bottles and playground equipment.

In addition, there are a number of activities within NBS dealing with radiological safety, hearing aids, analysis of trace chemicals, chemical kinetics, and standard reference materials (SRM), all of which have application in the measurement of certain factors vital to product or food safety and health benefit. All of these activities are either performed with NBS funding or by funding from agencies other than FDA. A small sampling of the titles and benefit areas is given below:

Clinical chemical standards: Health.

Laboratory automation: Health.

Cholesterol, SRM: Health.

Smoke standards, SRM: Health.

Tomato leaves, SRM: Health.

Tomato leaves, SRM: Food.

Orchard leaves, SRM: Food.
Analysis of tuna fish: Food.

X-ray exposure standards: Health.

Hearing aids: Health.

Bilirubin, SRM: Health.

As an indication of NBS commitment to programs related directly to health and safety, our plans call for doubling in fiscal year 1973, the funds obligated for these programs during this fiscal year. Moreover, it is our intention to increase our research efforts in this important area in the years ahead.

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1 From the President's original 1973 budget request; excludes pay increase changes.

2 Includes funds for pending legislation.

* Additional personnel requirements of the administration's legislative proposal will be provided for as necessary.

CONSUMER SAFETY ACT OF 1972

WEDNESDAY, MAY 3, 1972

U.S. SENATE,

SUBCOMMITTEE ON EXECUTIVE REORGANIZATION

AND GOVERNMENT RESEARCH,

COMMITTEE ON GOVERNMENT OPERATIONS,

Washington, D.C.

The subcommittee met, pursuant to recess, at 9:45 a.m., in room 3302, New Senate Office Building, Senator Charles H. Percy presiding. Present: Senator Percy.

Also present: Mark Greenwold, assistant general counsel; Gerry Simons, special counsel; Stuart Statler, minority counsel; and Pamela Gell, chief clerk.

HEARINGS RESUMED

Senator PERCY. The hearings will come to order.

Senator Ribicoff, regretfully, will not be able to be with us this morning.

We resume hearings on S. 3419 today in an attempt to gain further insight into the fundamental questions before us; namely, whether consumer safety regulation should be accorded independent agency status or be elevated within the Department of Health, Education, and Welfare to provide the visibility, independence, and access to the Secretary that this priority function requires.

We have discussed the safety issues at length; from an economic standpoint, I might add at this time that the Food and Drug Administration, as presently organized, is responsible for regulatory decisions which affect 38 cents of every consumer dollar.

In 1971, consumers spent $104 billion for food products regulated by FDA; $10 billion for drugs regulated by FDA; $8 billion for cosmetic products regulated by FDA, and some $145 billion for other household products subject to FDA jurisdiction.

The dollar amounts alone involving such regulation would seem to also provide a strong argument for greater attention to be accorded to this safety function.

We welcome our first witness today, Mr. Frank C. Carlucci of OMB. Mr. Carlucci, go right ahead with your statement.

TESTIMONY OF FRANK C. CARLUCCI, ASSOCIATE DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, ACCOMPANIED BY CHARLES F. BINGMAN

Mr. CARLUCCI. Thank you, Mr. Chairman. It is a pleasure to appear before this committee.

The Congress and the administration have reached a general understanding of the need for regulation on product safety standards. What is at issue is the question of where the organizational responsibility should be for the administration of this new authority along with the equally important issue of where FDA and DBS should be located.

Secretary Richardson has dealt with the reasons why these activities belong to HEW. I would like to add the views of this administration on the broad concerns for governmental organization which are at issue here.

I know that the Senate Government Operations Committee is fully aware of the significance of the President's departmental reorganization program, since the bills which would create these four new purpose-oriented departments are now actively under consideration by this committee.

S. 1432

One of these proposals calls for the creation of a Department of Human Resources which will bring together all programs directed at the well-being of individuals and families. Within DHR would be created the Health Administration which would bring together not only the present health-oriented activities of HEW but activities now in other departments such as meat and poultry inspection, and flammable fabrics concerns. Thus, for the first time, we will create a complete health program capability under single leadership, capable of pursuing an integrated strategy for meeting the health problems of our citizens.

S. 3419

S. 3419 asks us to accept that status, as an "independent agency" is necessary for the administration of product safety functions, and that such independence will guarantee more effective pursuit of these functions than the same authorities carried out within the framework of HEW. There is, however, no compelling evidence to support this view. The history of Federal regulatory agencies contains many examples where such "independence" has not produced greater visability, public interest, or freedom from pressure.

It is more realistic to recognize that regulatory and compliance functions can be made to work well within executive branch agencies when properly organized and supported.

LEADERSHIP AND SUPPORT

The crucial needs are quality of leadership, the degree of executive and congressional backing and support, and the commitment of appropriate resources to the task. These crucial needs are being met for FDA. The fiscal year 1973 budget for FDA, including funds budgeted

for administration proposed legislation, is $192 million, which, if approved, would represent an approximate 145 percent increase over fiscal year 1970-far greater than increases experienced by any of the independent regulatories. The independent status of an agency also presumes that it reports to the President, and thus would have regular direct access to him.

Our experience shows that the Secretary of HEW, as a member of the President's Cabinet, would have far better opportunities to consult with the President and bring important issues to his attention than would the head of an independent agency.

Unfortunately, while S. 3419 offers us the problematic virtues of independent agency status, its proposed transfer of FDA and DBS from HEW would do real harm to the consumer oriented programs of that Department. FDA is now, and must continue to be, a vital resource in the spectrum of health programs of HEW. Instead of transferring FDA, it should be our goal to strengthen consumer health and safety protections as an integral part of our total health service to the country. Instead of severing the FDA relationships with the other people oriented programs of HEW, we should be building stronger relationships with such programs as health service, economic assistance, special programs of education, child care, and help for the aged. These goals are consistent with the intent of the Department of Human Resources, and would be pursued under the more stronger departmental leadership role and the more effective overall structures and management systems proposed for that department.

S. 3419, on the other hand, would, by pulling FDA and DBS out of their natural relationships in HEW, create more of the fragmentation and lack of cohesion which already plagues the Federal Establishment. We are already far beyond the point where we can accept the continued fragmentation, duplication, overlap, and confusion which the piecemeal approach to structuring Government inevitably produces.

S. 3419 poses one further issue on which it is important to comment. Section 112 calls for the submission by the Administrator of the agency of an annual report to the Congress and the President which would contain budget data and legislative recommendations. The language specifically states that the report would be submitted "without review by the Office of Management and Budget." While this provision deals essentially with disclosure of information, I am concerned that it reflects a misconception of the relationship between the Office of Management and Budget and the President, and the significance of that relationship to the Congress in its own oversight of the Federal budget.

ROLE OF OMB

The OMB works on behalf of the President to monitor the budget requests of all Federal departments and agencies and the programs which they administer.

The President expects the Office of Management and Budget to coordinate the requests and to forward them to him with our advice and recommendations of other Executive Office and executive branch agencies that carry on related activities. We have to determine the specific

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