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July 15, 2005

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In this Issue


Senate Committee Completes Labor-H Bill


Lautenberg Introduces Toxic Substances Bill


NIH Submits Report on Conflicts of Interest


Davis, Waxman, Dingell Introduce Supplement Legislation


Bioshield Hearings in House


FDA Announces Meeting on Gluten Labeling



Appeals Court Overturns Canadian Cattle Ban; USDA Moves to Open Border Immediately


Japan Reportedly Nervous Over US Testing System Missing Texas Cow


Bovine TB Found in Minnesota


House Passes Four OSHA Bills


White House Pushing for Late July CAFTA Vote


House Names Energy Conferees; MTBE, RFS Among Hurdles


Highway Conference Set to Wrap Up Next Week


New Bills

 

Senate Committee Completes Labor-H Bill

The full Senate Appropriations Committee reported the FY2006 Labor, HHS, Education, & Related Agencies Appropriations bill to the Senate. The committee recommends a spending package of $145.693 billion, a slight increase over FY2005 funding level of $143.463 billion and the President’s request of $141.919 billion.

Issues raised in the committee report include:

National Institutes of Health – The Senate bill includes $29.415 billion, an increase of $1.050 billion over the FY2005 appropriation and $905 million over the President’s budget request.

Centers for Disease Control & Prevention Buildings and Facilities – The Senate bill includes $195 million over the budget request, for a total of $225 million.

Health Information Technology – The bill provides $95.2 million, an increase of $21 million over the FY2005 level.

Geriatric Education Centers & Training - The Committee provided $29.5 million for the Geriatrics Education Centers & Training programs. The FY2005 comparable level was $31.5 and the administration did not request any funds for this program in FY2006.

Embryo Adoption – The bill provides $2 million for an embryo adoption awareness campaign, an increase of $1 million over the FY2005 level.

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Lautenberg Introduces Toxic Substances Bill

On July 13, Sen. Frank Lautenberg (D-NJ) introduced with six other senators, S. 1391, the Child, Worker & Consumer-Safe Chemicals Act of 2005 (the Kid Safe Chemicals Act). The bill would amend the Toxic Substances Control Act (TSCA) to modify procedural requirements and make other changes that, in the view of the sponsors, will enhance the ability of the Environmental Protection Agency (EPA) to regulate the contents of consumer products with regard to the inclusion of toxic chemicals.

The bill is in partial response to a recent report by GAO that EPA is not doing a good job in controlling the risks of chemicals not already on the market, assessing the risks of substances in existing products, or informing the public of information provided by manufacturers under TSCA. GAO recommended Congress revise EPA’s authorities and that EPA improve its management of its chemical program.

In statements on the Senate floor, Lautenberg and Sen. Jaim Jeffords (I-VT) emphasized the importance of ensuring household products are safe, especially for children. They noted that many chemicals identified years ago as being toxic have never been removed from common consumer products.

The bill, according to its sponsors, would apply standards similar to those already in place under the Food Quality Protection Act (FQPA), including requiring manufacturers to test all products and provide data to EPA, authorizing public disclosure of hazard and exposure information, and requiring EPA to prioritize and evaluate the safety of 300 chemicals in the next five years. The bill would require all chemicals in commerce meet the new safety standards by the year 2020. TSCA currently does not apply to chemicals in products regulated by other agencies like FDA, and this bill would not change that.

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NIH Submits Report on Conflicts of Interest

This week, the House Energy & Commerce Committee released a report NIH submitted July 8 on the agency’s investigation into whether its officials and scientists violated conflict of interest requirements, particularly in regard to work they had done for or on behalf of pharmaceutical companies.

NIH’s report indicates that of 81 scientists previously identified by the committee’s Oversight & Investigations subcommittee as potentially having violated ethics rules, 44 were found to have broken one or more rules. These scientists failed to disclose work they were doing, failed to take leave for private work, or failed to seek prior approval for outside activities. Of the 44, according to NIH, 36 may be subject to disciplinary action and nine have been referred for investigation to the HHS Office of the Inspector General.

In the course of the oversight subcommittee’s investigation, violations identified included scientists receiving large payments from pharmaceutical companies and failing to receive proper clearance for their work. The ommittee chair and ranking Democrat, Reps. Joe Barton (R-TX) and John Dingell (D-MI), wrote in March to NIH Director Elias Zerhouni, M.D. to ask for an investigation and a report. They determined this week releasing the report was in the public interest.

In commenting on the report, Barton commended Zerhouni for taking the matter seriously and conducting a fair investigation. Zerhouni’s revision of NIH’s conflict of interest rules was applauded by Dingell, but has been controversial among NIH employees.

Barton also noted Congress needs to proceed this year to reauthorize NIH programs. In particular, he said the NIH Director needs greater authority and flexibility to adjust funding and move funds among NIH components to ensure funding of the best and most promising research. Committee staff are working on what Barton hopes can be a bipartisan NIH reauthorization bill. The first hearing on a draft proposal is scheduled for next week and Barton has expressed hope a bill can be moved through the committee quickly.

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Davis, Waxman, Dingell Introduce Supplement Legislation

On June 30, Reps. Susan Davis (D-CA), Henry Waxman (D-CA), and John Dingell (D-MI) introduced the Dietary Supplement Access & Awareness Act, which would amend the Food, Drug & Cosmetic (FDC) Act to increase dietary supplement regulatory provisions. Like legislation they introduced in the last Congress, the bill would exempt from its requirements supplements that are vitamins or minerals, or that do not contain botanicals or amino acids.

The legislation would require dietary supplement manufacturers (already required to register with HHS/FDA) to report twice a year a list of each dietary supplement manufactured or processed for the U.S. market, the labeling of those products, a list of ingredients in each, and a list of any products discontinued. Supplement manufacturers also would be required to report serious adverse events within 15 days of receiving a notification of such an event, to investigate such events, and to report additional information. The definition of serious adverse experience is consistent with existing FDA rules.

FDA would be authorized to order a manufacturer to conduct postmarket surveillance “if there is a reasonable possibility that a use or expected use of the supplement may have serious adverse health consequences” and to order a manufacturer to demonstrate within 180 days that a product is not adulterated, if there are “reasonable grounds” to believe it is.

Regulations would be required to establish criteria for evaluating if a supplement may pose a risk to children and to require manufacturers to maintain records of serious adverse event reports. Failure to comply with the new requirements would be specifically prohibited under the FDC Act.

The bill would authorize the secretary to make a determination of “unreasonable risk” if it is determined the risks of a product outweigh its benefits, based on “any science-based evidence,” regardless of whether it is shown the product actually caused a particular harm. This language appears to be responsive to the court’s decision in the ephedra case that FDA had exceeded its authority by looking at the risk-benefit relationship for ephedra products.

The bill authorizes funds requiring FDA to carry out a program to educate health care professionals about the importance of reporting adverse events and consumers about the need to advise their health care providers about supplement use.

The bill has been referred to the House Energy & Commerce subcommittee on health.

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BioShield Hearings in House

This week the House Homeland Security subcommittee on Emergency Preparedness, Science, & Technology held a hearing on “Project BioShield: Linking Bioterrorism Threats and Countermeasure Procurement to Enhance Terrorism Preparedness.” Also this week, the House Government Reform Committee held a hearing on “One Year Later: Evaluating the Effectiveness of Project BioShield.”

A number of industry panelists criticized DHS and HHS for muddling the BioShield process, with members of both committees appearing frustrated with the DHS and HHS witnesses for not using BioShield more effectively. Rep. Bill Pascrell (D-NJ) noted when Congress set up BioShield it did not include specifics for how to conduct Material Threat Assessments (MTA) because they were viewed as preliminary and quick. However, it has become very complex and CDC now has at least 33 agents on its list that have not been reviewed. A call for more transparency was made from members and industry witnesses.

Rep. Michael McCaul (R-TX) asked the panel what could be done to bring big pharmaceutical companies to the table. Witness responded that barriers include previous markets and indemnification. Pascrell said pharmaceutical companies are hesitant to become involved in BioShield because of the potential for liability. They also fear losing intellectual property rights should Congress request mass production.

In addition to industry and academic witnesses, appearing before both committees were Stewart Simonson, assistant secretary for Public Health Emergency Preparedness at HHS and Dr. John Vitko, Director of Biological Countermeasures Portfolio, Science, & Technology Directorate at DHS. Dr. Anthony Fauci, Director of the National Institute of Allergy and Infectious Disease at NIH appeared before the Government Reform Committee.

According to Simonson, the R&D pipeline has few, if any, candidates for BioShield products which is why HHS is currently using advanced development products. He also said the department is actively monitoring the medical countermeasure pipeline - both within and outside the government - by evaluating government research and development portfolios and engaging industry through the publication of Requests for Information (RFIs).

Only a portion of the $5.6 billion Congress allocated for Project Bioshield to HHS has been spent. Yet Fauci said the issue is not just whether the government has the money to buy products, but whether they are FDA licensable.

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FDA Announces Meeting on Gluten Labeling

FDA has announced a public meeting on August 19, to discuss the development of a paradigm for voluntary labeling of food products as “gluten-free.” The meeting is part of FDA’s implementation of requirements in the Food Allergen Labeling & Consumer Protection Act of 2004, which required the agency to issue a proposed rule in two years to define and allow use of the term “gluten-free.”

In describing the discussion points for the upcoming meeting, FDA notes accurately defining “gluten-free” will help individuals who have celiac disease to make better informed food choices. FDA asks for participation at the meeting of food industry representatives, particularly to discuss the mechanisms and costs associated with manufacturing gluten-free food products and any research on consumer purchasing practices, to help determine how the public is likely to respond to new labeling. Other matters, such as the tolerance levels for gluten and the medical implications of celiac disease, are being discussed by FDA’s Food Advisory Committee this week.

FDA proposes, in the Federal Register, a number of questions it asks meeting participants to consider, including how gluten-free foods are produced, the technical difficulties in avoiding cross-contamination, analytical methods to determine the presence or absence of gluten and what consumers believe “gluten-free” means.

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Appeals Court Overturns Canadian Cattle Ban; USDA Moves to Open Border Immediately

The temporary federal court injunction banning U.S. imports of live Canadian cattle less than 30 months of age was overturned July 14 in a unanimous decision by the 9th U.S. Circuit Court of Appeals. USDA said it will implement its minimal risk rule on imports immediately.

The decision was a blow to the Ranchers-Cattlemen Legal Action Fund (R-CALF) which won the temporary ban through a federal district court in Montana March 2004, alleging live cattle imports from Canada would endanger human health and the U.S. cattle herd. The appeals court ruling, expected to be formally released today, will also effectively bar the Montana federal judge from imposing another injunction.

The three-judge appeals court panel suggested during the 40-minute hearing that federal Judge Richard F. Cebull, who issued the original injunction, should have given USDA’s decision on designating certain countries as BSE minimal risk nations more weight in his ruling. Judge A. Wallace Tashima said federal law “invests the secretary of agriculture with a certain amount of discretion,” with his colleague Judge Connie Callahan saying USDA is “entitled to some deference. It’s their (sic) whole job to keep up with the science to make those decisions.”

The Justice Department argued the USDA department rulemaking to allow live cattle imports from Canada was based upon “good science,” and would not result in BSE introduction to the U.S.

Secretary of Agriculture Mike Johanns said in a prepared statement, “Because the ruling is effective immediately we are immediately taking steps to resume the importation of cattle less than 30 months of age from Canada.”

USDA said APHIS, upon hearing of the appeals court decision, immediately contacted the Canadian Food Inspection Agency to prepare to certify cattle for shipment. U.S. meat processors said they could resume imports immediately given much preliminary work is already complete.

R-CALF said the court decision places U.S. beef at risk. The American Meat Institute said the R-CALF-inspired border closure cost more than 8,000 U.S. meat processing jobs, and contributed to driving ground beef prices from $1.85 per pound before the border closed to $2.55 per pound today.

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Japan Reportedly Nervous Over US Testing System Missing Texas Cow

Media reports out of Tokyo this week indicate the Japanese government’s food safety regulators are questioning U.S. beef safety after a Ministry of Agriculture study showed U.S. cattle testing methods would have missed nine out of the 20 cases of BSE confirmed in Japan. Scientists asked for more details on the second case of BSE found in the U.S. – and this nation’s first native-born case – out of concern BSE animals may have reached market because they appeared healthy. Officials further acknowledged their request for additional information will likely delay any decision to reopen beef trade with the U.S.

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Bovine TB Found in Minnesota

A northern Minnesota cattle herd tested positive for bovine tuberculosis, the first discovery in Minnesota since 1971, after USDA slaughter inspectors identified a suspect animal and subsequent testing confirmed the disease. This week USDA officially declared the herd infected and began the process of destroying up to 900 animals. USDA paid the owner for the cattle. Federal officials will begin tracing any animals which left the farm over the last seven years, but Minnesota will not lose its TB-free status unless another infected animal is found and that animal is not related to the current investigation, officials said.

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House Passes Four OSHA Bills

The full House this week approved four bills aimed at reducing small business burdens resulting from OSHA compliance requirements. Major Democrats immediately attacked the bills for jeopardizing workers.

Despite impassioned floor statements that passing the bills would undermine OSHA’s authority to protect workers, the GOP-controlled House nonetheless made good on its commitment to curb what proponents describe as “overzealous” rulemaking. The House passed similar bills in the last session which were blocked in the Senate.

Bill champions said the bills merely give small business more options in OSHA compliance. One bill provides exemptions from the 15-day deadline for challenging OSHA citations, based on small business limits on getting expert assistance to file appropriate paperwork. The second bill reduces the Occupation Safety & Health Commission from five to three members. The third bill addresses a 1991 Supreme Court decision by restoring a small business’ right to appeal cases to an independent court. The fourth bill requires OSHA to pay court and attorney fees if a business can show charges brought by OSHA to be frivolous.

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White House Pushing for Late July CAFTA Vote

Hoping to capitalize on its win in the Senate, the White House is rallying CAFTA supporters and pushing House leadership for a late July vote. Meanwhile, opponents of the Central American trade pact are trying to politicize the vote by letting supporters know that a “yes” vote on CAFTA means they’ll face a 2006 election issue.

The vote, according to House leadership, would likely be one of the last cast before Congress recesses for August. The fate of the 2006 election political strategy, first put forward by Democrat leadership, hinges on several undecided House Democrats who are not in line with general party opposition over insufficient labor protections. Some Republicans who would likely vote against CAFTA have been riled over the Democratic election strategy and may vote for the trade pact out of party loyalty.

At issue are labor, sugar and textile issues that put members from these states in a precarious political position. GOP and Democrat members from these states are getting serious pressure from both sides of the CAFTA issue. Right now, five Democrats are publicly supporting CAFTA, with estimates of how many will vote “yes” ranging from 10 to 20 members.

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House Names Energy Conferees; MTBE, RFS Among Hurdles

Under White House and Congressional leadership pressure to finish conference committee action on the comprehensive energy package before the August recess, the House named its conferees this week. This action set up a race to finish the conference, pass the bill through both chambers and get it to the President’s desk in three weeks.

House and Senate conferees held their first meeting late in the week, but no substantive issues were discussed, “just a willingness to work in a bipartisan fashion and meet the President’s goal of a bill before the August recess,” said one staffer.

Major hurdles in the conference include liability protections for makers of MTBE, a gasoline additive, included in the House bill but not in the Senate version. A Democrat move this week in the House to instruct conferees to reject the MTBE language failed. Rep. Joe Barton (R-TX), chair of the House Energy & Commerce Committee, has a compromise on MTBE he’ll present to the Senate conferees soon, he reported this week.

Other sticking points include the level of alternative fuels diesel refiners must blend in their diesel and gasoline under the Renewable Fuels Standard (RFS). The House bill mandates five billion gallons by 2012; the Senate bill calls for eight billion gallons. The House bill would allow oil and gas exploration in the Arctic National Wildlife Refuge, language the Senate rejected twice in last session’s energy effort and not included in this version of the bill. The Senate bill mandates electric utilities to generate 10% of their electricity from renewable sources by 2020, a provision opposed by House leadership.

Another hurdle to overcome is the cost of tax incentives. The Senate approved $18 billion over 10 years, with $4 billion in identified offsets. The House approved $8 billion in tax breaks, and the White House wants both chambers to hold the line at less than $7 billion.

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Highway Conference Set to Wrap Up Next Week

House and Senate highway program reauthorization conferees hope to wrap up work by the end of next week as staff meets through the weekend to meet a July 18 deadline for presenting a conference report to members for a July 19 signoff. The vote on the highway package could come as early as the afternoon of July 19.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

S.1373
Sen. Sam Brownback (R-KS) introduced a bill that would prohibit human chimeras.

H.CON.RES.204
Rep. Robert Andrews (D-NJ) offered a resolution on obesity in the United States.

H.R.3250
A bill proposed by Rep. Bart Gordon (D-TN) would authorize appropriation for the National Aeronautics & Space Administration.

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Inside Track is produced as a service to clients of Policy Directions, Inc., a Washington, DC-based government relations/strategic government communications firm founded in 1995, specializing in customized advocacy on health care; food; biomedical research; biotechnology, human drug, and medical device regulation; federal nutrition policy and programs; and environmental policies and programs. For more information about PDI, please e-mail info@poldir.com.

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