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September 23, 2005

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In this Issue


Crawford Resigns as FDA Commissioner


Senate Ag Appropriations Wrap-Up




FDA Provisions Added to Senate Agriculture Appropriations


GAO Study of Advisory Committee Waivers Requested


Medicare Prescription Drug Coverage Moves Forward; Medicaid Changes Hang in Balance


Committee Launches Inquiry into Use of NIH Grants


Hearing Scheduled on Direct-to-Consumer Drug Advertising


FDA Feed Rule Changes Coming Very Soon


Ag Losses from Katrina, Drought Could Top $2 Billion; Disaster Package to Carry Farm Money, Rita a Big Unknown


USDA Sets Conservation Planning Sign-Up Pilot


New Bills

 

Crawford Resigns as FDA Commissioner

Dr. Lester Crawford, Commissioner of the Food & Drug Administration (FDA), resigned today in the following email sent to all FDA staff.

To: FDA All-Hands
From: Commissioner of Food and Drugs
Date: September 23, 2005
Re: Resignation

I have today resigned my position as Commissioner of the Food and Drug Administration (FDA). After three and a half years as Deputy Commissioner, Acting Commissioner and, finally, as Commissioner, it is time at the age of 67, to step aside. I am doing so with deep gratitude to the President and both Secretaries of Health and Human Services for whom I have been privileged to serve.

I also must thank the extraordinary people of FDA for the honor of having served with them a fourth time over a 30 year period. They have made public service a joy and a pleasure as we worked together to accomplish great things for public health. Certainly, the Critical Path Initiative, the Drug Safety Program, the three user fee acts passed since 2002, and the various good manufacturing practice reforms will continue to make a difference in the lives of all Americans.

Most importantly, I have to thank my family for their constant support. I also appreciate the encouragement of so many Americans from all walks of life throughout my FDA career.

/s/
Lester M. Crawford, DVM, PhD

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Senate Ag Appropriations Wrap-Up

The Senate this week completed work on the FY2006 appropriations bill, approving nearly $101 billion in spending for USDA and the Food & Drug Administration. The bill was completed faster than expected when Sen. Robert Bennett (R-UT), chair of the Senate ag appropriations subcommittee convinced several senators to withhold controversial amendments that might slow down that portion of the bill aimed at aiding victims of Hurricane Katrina.

At the same time, both chambers are finalizing details on a continuing resolution that will take the government through November 18, guaranteeing a target Thanksgiving adjournment. But with continuing debate over two Supreme Court nominees, unfinished appropriations bills and the emergency supplemental spending bill to take care of drought, Katrina and now Hurricane Rita, some speculate there will be post-Thanksgiving session. The following are highlights of Senate floor action on ag appropriations.

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Senate Takes First Shot at Japanese by Banning Beef Imports

A USDA proposed rulemaking aimed at allowing Japanese boneless beef to enter the U.S. was blocked when the Senate adopted an amendment to the FY2006 appropriations bill suspending all funding to complete the rulemaking until the Japanese ease their ban on U.S. beef imports. The amendment, offered by Sen. Ben Nelson (D-NE), was adopted 72-26. No similar provision, however, is in the House spending bill, so conference action will be needed. The amendment withholds the USDA funding “unless the president certifies to Congress that Japan has granted open access to Japanese markets” for U.S. beef.

The measure was the long-threatened action by Congress, frustrated with Japanese maneuvers that continue to delay the October, 2004, agreement to resume trade in beef from animals under 20 months old.

However, last week a Japanese professor who heads a research group under Japan’s Food Safety Commission released a draft report questioning the safety of U.S. beef because of “inadequate” feed regulations.

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Industry Heads Off Move to Legislative BSE Feed Rule

A prospective amendment to the FY2006 ag appropriations bill aimed at legislating FDA’s BSE feed rule was thwarted through a well-coordinated industry opposition campaign. Sen. Maria Cantwell (D-WA) contemplated an amendment that would have banned poultry litter, plate waste, and all blood and blood products from feed, while requiring feed mills handling restricted materials to dedicate facilities, equipment and production lines, as well as packaging of feeds containing restricted material. Over 10 groups with significant interest in the BSE issue, including the American Feed Industry Assn., American Meat Institute, National Meat Assn., National Grain & Feed Assn. and American Farm Bureau Federation signed a letter to the full Senate opposing Cantwell’s intent. Cantwell did not offer the amendment.

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Animal Rights Amendments Accepted

Three amendments promoted by the Humane Society of the United States (HSUS), the nation’s largest animal rights group, were accepted during floor debate on the FY2006 ag appropriations bill. A pair of amendments was offered by Sen. Daniel Akaka (D-HI), one to ban all downed animals – not just cattle and/or dairy -- from the food chain, and a second to withhold USDA funding from research facilities, including land grant universities, who purchase research animals from USDA-licensed Class B animal dealers. Akaka’s amendments received neither debate nor a recorded vote, but were accepted on a voice vote.

A third amendment, language from Sens. John Ensign (R-NV) and Robert Byrd (D-WV), mirrors House ag appropriations language, and would withhold funding from USDA to inspect horses destined for slaughter. But while HSUS and other animal rights groups celebrated “the death knell” for horse slaughter in the U.S., it appears the single U.S. company operating horse slaughter facilities likely will see no change in operations as USDA rules allow the company to pay the cost of inspection.

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FDA Provisions Added to Senate Agriculture Appropriations

In completing FY2006 agriculture appropriations the Senate avoided several significant FDA-related amendments.

The highly charged issue of legalizing prescription drug importation was dodged because an amendment, filed by Sens. David Vitter (R-LA) and Tom Coburn (R-OK), to prohibit FDA from using funds to prevent importation was not offered. Reportedly, a significant number of senators had indicated if an amendment related to Rx importation were offered, they would support the addition of provisions that would require a secretarial certification of safety and cost-effectiveness.

This issue now must be resolved in a House-Senate conference, as the House-passed bill includes the prohibition: “None of the funds appropriated or otherwise made available by this Act for the Food and Drug Administration may be used under section 801 of the Federal Food, Drug, and Cosmetic Act to prevent an individual not in the business of importing a prescription drug within the meaning of section 801(g) of such Act, wholesalers, or pharmacists from importing a prescription drug which complies with sections 501, 502, and 505.” The conferees will have the option of dropping the House provision altogether or modifying it, depending on what can be agreed to.

House and Senate discussions to resolve differences between the two bills are expected to begin immediately, with the hope of final passage by the end of the fiscal year.

FDA-related amendments adopted by the Senate include:

• Sen. Richard Durbin (D-IL) and others, to prohibit FDA from using its funds to grant waivers of financial conflict of interest requirements for voting members of advisory committees unless the rationales for waivers and nature of the conflict of interest are disclosed on FDA’s website at least 15 days before panel meeting.

• Sen. Robert Bennett (R-UT), to prohibit FDA from using its funds to review, clear, or approve a contact lens unless the manufacturer certifies that “it makes any contact lens it produces, markets, distributes, or sells available in a commercially reasonable and non-discriminatory manner directly to and generally within all alternative channels of distribution.” This includes mail order companies, Internet retailers, pharmacies, buying clubs, department stores, and mass merchandise outlets.

• Sen. Christopher Dodd (D-CT), to require FDA to issue, in one year, a final monograph for OTC sunscreen products, including UVA and UVB labeling, that would pre-empt any state labeling requirements.

• Dodd, expressing the sense of the Congress that FDA should issue this final monograph.

FDA-related amendments filed, but not offered and thus not considered by the Senate and not part of the final bill included:

• Sen. Patty Murray (D-WA), to transfer $15 million from the Office of the FDA Commissioner to the Office of Over-the-Counter Drug Evaluation.

• Murray, to transfer $10 million from the Commissioner’s Office to the CDER Office of Drug Safety, for post-market surveillance activities.

• Murray, to reduce funding of the Commissioner’s Office by $5 million.

• Murray, prohibiting the expenditure of funds for a rulemaking related to switching the Plan B contraceptive product to OTC status (not including the 60-day public comment period that began August 26, 2005).

• Sen. Russ Feingold (D-WI), to require a report by FDA on the prevalence of unsafe pesticide residues in ginseng and ginseng-containing products, including a comparison between foreign and domestic ginseng.

• Sen. Hillary Clinton (D-NY) and others, to withhold $10 million from the Office of the Commissioner as of January 16, 2006, until the agency either has approved or disapproved OTC sale of Plan B.

• Clinton and others, to withhold $10 million from the Office of the Commissioner until FDA has complied with congressional requirements that condoms be labeled to indicate they are not effective in preventing human papilloma virus infection. (A similar amendment was filed by Sen. Tom Coburn (R-OK).)

• Sen. Sam Brownback (R-KS), to prohibit the use of FDA funds for activities related to clinical trials where the protocol requires a placebo or no-treatment control, in studying products for serious or life-threatening conditions, if approved alternative therapies available.

• Brownback, to withhold funds until the Commissioner testifies regarding when FDA will respond to the Citizen Petition requesting a stay of approval of Mifeprex (RU-46).

• Sen. Lisa Murkowski (R-AK), to allow interstate shipment and sale of bottled water, without regard to whether the water meets specific registration or licensing requirements for states which it is shipped.

• Sen. James Inhofe (R-OK), to prohibit use of FDA funds to allow importation of drugs from countries that are communist, socialist, have socialized healthcare, or support terrorism.

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GAO Study of Advisory Committee Waivers Requested

In connection with an amendment adopted to the agriculture appropriations bill related to waivers granted by FDA to advisory panel members who may have a conflict of interest (see previous article), Sens. Mike Enzi (R-WY), Ted Kennedy (D-MA), and Dick Durbin (D-IL) jointly requested the Government Accountability Office (GAO) conduct a study of such waivers.

Stating they are “concerned about the process that supports FDA’s decisions to waive conflicts of interest rules for scientists with financial ties to the manufacturers of the products under consideration, or their competitors,” the senators asked GAO to examine this process.

In discussing the request, the senators echoed the words of Durbin when he offered his amendment on the appropriations bill, regarding the need for consumers to be certain that decisions made by advisors to FDA are based on good science and not influenced by potential financial gains. The senators specifically referred to recent advisory committees that considered the risks and benefits of the COX-2 inhibitors and silicone breast implants. In both of these cases, allegations were made and concerns raised about advisory committee members having financial ties to the companies that manufacture these products.

Representatives of FDA and the regulated industries have expressed concern about congressional attempts to preclude conflict of interest waivers. They have argued for FDA’s need to access, for its advisory panels, targeted and often scarce expertise related to matters before the agency. Often, most or all of those with this expertise also have provided that expertise, in some capacity, to the regulated companies. Under some congressional proposals, all of those people essentially would have been prevented permanently from advising FDA.

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Medicare Prescription Drug Coverage Moves Forward; Medicaid Changes Hang in Balance

Despite rumblings on Capitol Hill about spending associated with the recent hurricanes, combined with calls to delay implementation of the new Medicare Part D prescription drug benefit, the benefit is moving forward.

In a press conference Friday morning, Centers for Medicare & Medicaid Services (CMS) Administrator Mark McClellan announced approval of private plans to provide prescription drug coverage. He also released names of plans available in various parts of the country, stating multiple plans will be available in every state and at least one plan will be available with a monthly premium less than $20. Detailed information about the plans, including descriptions of the drug formularies, will be available at the beginning of October.

Meanwhile, Reps. Jeff Flake (R-AZ), Jeb Hensarling (R-TX) and Mike Pence (R-IN) have introduced legislation (H.R.3870) to delay for two years implementation of the new benefit for all but the lowest income beneficiaries. Similar suggestions have been made by groups of fiscal conservatives. The White House reportedly has been approached to get behind the effort, which it has declined to do. The rationale for delaying the new benefit is the belief that the cost, coupled with the unanticipated emergency spending for hurricane relief efforts, is excessive spending for which there are no offsets. Members concerned about this continue to urge congressional leadership and the White House to propose viable spending cuts in other programs, but proposals for such cuts have not been forthcoming.

In addition, contentious discussions continue regarding earlier-proposed reductions in spending for the Medicaid program. Both House and Senate budget resolutions call for Medicaid savings on the order of $10 billion. Faced with enormous need for health services by uninsured, low-income, and displaced individuals in areas affected by Hurricane Katrina (Hurricane Rita’s impact potentially will exacerbate this), many in Congress seem no longer to have the stomach for Medicaid cuts. On the contrary, legislation has been introduced to increase federal assistance to affected states to help with their Medicaid costs and CMS has provided waivers to allow states to assist displaced persons through their Medicaid programs.

H.R.3698, the Temporary Medicaid Disaster Relief Act of 2005, would allow states to use Medicaid to provide health services to Katrina victims for one year, increase federal matching funds to 100% and continue drug coverage under Medicaid for individuals eligible for both Medicaid and Medicare whose drug coverage otherwise would be transferred to Medicare Part D as of Jan. 1, 2006). The bill also provides for additional changes designed to ease hurricane survivors’ access to Medicaid and to allow states to provide it to their own citizens or to those displaced to their state.

Senate Finance Committee Chair Chuck Grassley (R-IA) has introduced S.1716 with 11 bipartisan cosponsors, including the committee’s ranking Democrat, Sen. Max Baucus (D-MT). This bill also increases federal matching funds for providing Medicaid to Katrina survivors, as well as require states to provide health care under Medicaid for eligible survivors and make a number of other changes related to Medicaid and other programs, limited to five to 10 months and to certain affected areas and individuals. As currently drafted, the legislation is focused on Louisiana, Mississippi, and Alabama and on Hurricane Katrina.

Whether other Medicaid changes, including longer term reforms recommended by the Administration and National Governors Association, will occur in this congressional session is unclear, as is the broader question of whether Congress will complete it Budget Reconciliation process.

 

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Committee Launches Inquiry into Use of NIH Grants

On September 22, House Energy & Commerce Committee Chair Joe Barton (R-TX) announced the committee, with its oversight and investigations subcommittee chaired by Rep. Ed Whitfield (R-KY), has asked the HHS Inspector General (IG) to look into the possible misuse of National Institutes of Health (NOH) funds by grant recipients. The committee’s statement refers to recent settlements between the Justice Department and Harvard University, Johns Hopkins University, and the Mayo Clinic, associated with claims that the institutions misused grant funds. The letters to the IG indicate a concern that the problem may continue and be broader than just a few institutions.

Two matters are raised specifically in the requests to the IG: use of grant funds to pay “unreasonable” compensation to graduate students and grantees’ reporting to NIH a number of research activities that exceeds what they actually perform.

One letter refers to a 1994 IG report on compensation practices at three institutions, including the University of California, which concluded “unreasonable compensation” was charged to federal grants. The committee letter suggests this problem may persist, at least at the University of California, Davis. Specifically, the letter states the committee’s view the current rate of $75-$89 per hour in salary and tuition allowance allow graduate students to earn $150,000 per year or more. This amount, the letter says, appears substantially higher than what is paid to postdoctoral researchers for the same work, and could be a significant misuse of federal grant funds. The committee asks the IG “to determine if federal taxpayer dollars have been used by state universities to compensate graduate research assistants for tuition remission rather than for their actual work on programs funded by the NIH” and to examine whether this is an illegal and/or inappropriate use of federal funds.

In its second request, the committee asks the IG to look at the numbers of projects or activities described by applicants for clinical research center grants and to determine whether the activities actually performed under the grant are fewer than these projections. In addition, the letter suggest, the IG “may also want to consider designing this audit to capture other kinds of discrepancies, such as false statements, improper accounting, improper charges to NIH grants, and even fraudulent double-billing of the Medicaid program for in-patient fees charges incurred in connection with protocols performed under these clinical research center grants.”

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Hearing Scheduled on Direct-to-Consumer Drug Advertising

The Senate Special Committee on Aging has scheduled a hearing for Thursday, September 29, on “The Impact of Direct-to-Consumer Drug Advertising on Seniors' Health and Health Care Costs.” A witness list has not yet been provided.

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FDA Feed Rule Changes Coming Very Soon

Ambiguous statements by then-FDA Commissioner Lester Crawford about the timing and content of the FDA feed rule fueled significant media attention – and interpretation – this week. After the dust settled, however, Crawford had revealed less than imagined by most reporters.

Crawford, speaking to a Consumer Federation of America’s food safety meeting, gave brief remarks on FDA post-Katrina efforts, as well as on other pending issues at FDA. In talking about the timing of a proposed rule to modify FDA’s ruminant feed rule, Crawford said publication is “imminent.” When pushed to reveal details of the proposal, Crawford declined.

These remarks, combined with last month’s Crawford speech to food technologists in Baltimore, provide the following information: The proposed rule will publish very soon – perhaps as early as next week -- as it’s known the proposal is undergoing final Office of Management & Budget review at this writing. It will very likely concentrate on removal of certain limited specified risk materials from feed, e.g. brains and spinal cords from older animals. Other areas upon which it may touch will be the future of blood/blood products, plate waste and poultry litter feeding and treatment of deads and nonambulatory livestock.

As to how closely the FDA proposal will resemble the Canadian proposed rule on ruminant feeding is a matter of much conjecture. However, it’s likely that in the spirit of “harmonization” and based on evolving science and animal testing, both nations will modify their original public statements and attempt to arrive at rules which allow North America to be viewed as a single market with near identical regulatory processes.

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Ag Losses from Katrina, Drought Could Top $2 Billion; Disaster Package to Carry Farm Money, Rita a Big Unknown

USDA said this week farm losses directly attributable to Hurricane Katrina will likely top $900 million. Adding losses expected from the prolonged drought across the Midwest, this figure could surpass $2 billion, with drought losses estimated at $1.3 billion. Hurricane damage included limited cotton, sugarcane and dairy product losses in Louisiana, Alabama and Mississippi.

About 10,000 cattle and several million chickens were killed in the storm, USDA said. Short-term livestock losses were estimated to be about $30 million, with dairy farmers losing about $3 million worth of milk.

Sen. Dick Durbin (D-IL) issued a press release this week saying Sen. Thad Cochran (R-MS), chair of the Senate Appropriations Committee, has agreed to include drought assistance in the upcoming congressional relief legislation. Durbin said USDA numbers show corn and soybean losses in Illinois alone are more than $792 million. Durbin led a bipartisan group of midwestern senators who tried to add $2.7 billion to the agricultural appropriations bill to provide drought aid. Cochran’s assurance resulted in withdrawal of the Durbin amendment.

Both houses of Congress are expected to begin putting together emergency funding bills as soon as better estimates of actual damage are in hand by government accountants. Hurricane Rita’s impact on the amount of federal spending is unknown. A huge debate is raging now over how to pay for the unprecedented amounts of money being discussed, running as high as $300 billion, say some. A growing centrist movement in both chambers is demanding that offsets – cuts to existing programs – be used to help cover the cost.

Meanwhile, Sen. Charles Grassley (R-IA), chair of the Senate Finance Committee, suggested this week that an across-the-board freeze in federal spending for at least one fiscal year be used to offset the costs, adding he would oppose any move to raise taxes to pay for disaster relief and cleanup.

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USDA Sets Conservation Planning Sign-Up Pilot

Nine states will participate in a conservation planning pilot sign up program, designed to emphasize for farmers the need to be better prepared to apply for conservation programs and to comply with state, local and federal environmental regs.

Announced by USDA Deputy Secretary Chuck Conner at the Oklahoma City Farm Bill Forum, the states in which the pilot will run are California, Colorado, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas and Wyoming. Details of the program can be found at www.nrcs.usda.gov/programs/cta.

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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.1735
Sen. Maria Cantwell (D-WA) introduced a bill to improve the Federal Trade Commission’s ability to regulate “price-gouging” during energy emergencies.

S.1752
Sen. Saxby Chambliss (R-GA) offered legislation to reauthorize the U.S. Grain Standards Act.

H.R.3846, H.R.3847 & H.R.3848
Rep. Mark Green (R-WI) introduced three bills to extend the Milk Income Loss Contract Program.

H.R.3849
Legislation proposed by Rep. Frank Lucas (R-OK) would implement pesticide-related obligations of the U.S. under the international conventions or protocols known as the PIC Convention, the POPs Convention, and the LRTAP POPs Protocol.

H.R.3857
A bill offered by Rep. Bob Goodlatte (R-VA) would “simplify” the process for admitting temporary alien agricultural workers under the Immigration and Nationality Act.

H.R.3861
Rep. Fortney “Pete” Stark (D-CA) introduced a bill to provide extended and additional protection to Medicare beneficiaries who enroll for the Medicare prescription drug benefit during 2006.

H.R.3870
Rep. Jeff Flake (R-AZ) offered legislation to delay for two years implementation of the Medicare prescription drug benefit for individuals who are not lowest-income subsidy eligible individuals.

H.R.3874
A bill introduced by Rep. Jeff Fortenberry (R-NE) provides for tax exempt qualified small issue bonds to finance agricultural processing property.

H.R.3889
Rep. Mark Souder (R-IN) proposed legislation to regulate further and punish illicit conduct relating to methamphetamine.

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