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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Blackwell, Morton: Files
Folder Title: Regulatory Reform
Box: 23
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
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ROGER W. JEPSEN
IOWA
Nenegulation
United States Senate
WASHINGTON, D.C. 20510
Regulation
(202) 224-3254
February 24, 1982
Dear Editor:
In December, Senator Roger W. Jepsen (R-Iowa) joined leading
figures from government and the media in a national conference
in New York to examine the role of media in the public policy
process.
Along with compliments for the Washington media ("For the most
part, the reporters I deal with are a pretty devoted group of
people trying to give their readers/viewers a slice of life in
the Capitol."), Senator Jepsen had some criticism.
He said many journalists have ignored the greatest consumer
fraud story in our history -- "government costs more and,
simultaneously, accomplishes less than it ever has before."
He outlined why he believes calls for regulatory reform go
unnoticed and unreported by the media based in Washington.
The speech offers constructive and timely criticism of the
media in a readable and illuminating form.
Please feel free to use all or part of it on your editorial
or op-ed page.
Sincerely,
JHJ June U.S. IOWA James Press Senator Lafferty Secretary Roger
Jepsen
JCL:jts
309 PERRY STREET, SUITE 103
1090 7TH AVENUE
213 EAST 5TH STREET
731 FEDERAL BUILDING
FEDERAL BUILDING, ROOM 234
101 BADGEROW BUILDING
DAVENPORT, IOWA 52801
MARION, IOWA 52302
WATERLOO, IOWA 50703
DES MOINES, IOWA 50309
COUNCIL BLUFFS, IOWA 51501
4TH AND JACKSON
(319) 322-3750
(319) 377-7666
(319) 232-1515
(515) 284-4574
.
(712) 325-5505
SIOUX CITY, IOWA 51101
(712) 233-3205
VITAL
SPEECHES
OF THE DAY
VOL. XLVIII, No. 9
TWICE A MONTH
FEBRUARY 15, 1982
$1.25 per copy
$18.00 A YEAR
State of the Union
Ronald Reagan
1982
President of the United States-Page 258
Regulation - The Effect of Media
Roger W. Jepsen
Coverage
U.S. Senator from Iowa-Page 263
HOW MUCH REGULATION IS NECESSARY
The World Bank's Role in Asian
A. W. Clausen
Development
President, The World Bank-Page 264
THE PRIVATE SECTOR IS BLOOMING
Warning Signals for Energy
John F. Bookout, Jr.
Watchers
President and Chief Executive Officer, Shell Oil Company-Page 268
WE CANNOT BECOME COMPLACENT
Public Relations and Business Schools
Kerryn King
COMMUNICATIONS
Senior Vice President, Texaco Inc. and Past President, Public Relations Society of America-Page 271
Values in Private Higher Education
John A. Howard
A VERSION OF THE GOOD LIFE
President, The Rockford Institute-Page 274
Can We Afford to Say "Good Morning"?
Josephine Fasciona
MIXING PEOPLE AND COMPUTERS IN THE WORKPLACE
Vice President, The Pacific Telephone and Telegraph Company-Page 277
The Future of Computer Data Security
Joseph F. Coates
NEWS, GOOD NEWS AND BETTER NEWS
President of J. F. Coates, Inc.-Page 280
A World Turned Upside Down
David L. McKenna
THE CHRISTIAN COLLEGE
President Seattle Pacific University-Page 284
A New Look at Gold
Harry M. Conger
A MONETARY AND FISCAL DISCIPLINE
President and Chief Executive Officer, Homestake Mining Company-Page 286
IMPARTIAL
CONSTRUCTIVE
AUTHENTIC
THE BEST THOUGHT OF THE BEST MINDS ON CURRENT NATIONAL QUESTIONS
ROGER W. JEPSEN
263
Regulation — The Effect of Media Coverage
HOW MUCH REGULATION IS NECESSARY
By ROGER W. JEPSEN, U.S. Senator from Iowa
Delivered to the National Media Conference in New York, New York, December 9, 1981
G
OOD MORNING, ladies and gentlemen. I have been
reminds me of that Mark Twain reflection on his father. "When
asked to give you an overview of what I believe to be the
I was 18," Twain said, "I was appalled by how little my father
very important role the media plays in the formulation of
knew or understood, but by the time I reached the age of 21, I
public policy in Washington.
was amazed at how much the old man had learned in just three
Now, I can see it in your eyes. You fear that you are in for
years."
your typical "Conservative Senator Lambastes Liberal Media"
The media suffers from that same sort of bewilderment. It
tirade. Well, let there be no doubt - I am both conservative and
consistently trails the public's acceptance of new ideas and
the Senior Senator from Iowa, but I'll spare you that particular
changing attitudes.
tirade.
Look at the current crop of media economic analysts. As vice
And let me add that my views on the media aren't totally
chairman of the Joint Economic Committee, I spend a great deal
caustic. For the most part, the reporters I deal with are a pretty
of time reading and talking with economics journalists. With
devoted group of people trying to give their readers/viewers a
one or two exceptions, they are Keynesians. They do not under-
slice of life in the capitol.
stand supply-side theories therefore they do not accept the pos-
I'll be frank with you - sometimes life in the capitol is
sibility they might work. The Administration's "glass of milk"
difficult to slice into 60 or 90 second slices, or a cute column for
is portrayed, most often, as half-empty rather than half-full.
the Sunday paper back home.
Is the media being manipulated by some sinister force? No. I
But still they try.
think we are getting a glimpse of the media's biggest blindspot.
Many of these same hard-working and sincere reporters have
That blindspot is the one that has crippled the media and yielded
a fault to varying degrees and I think that fault has more to do
it as a sort of helpless complainer in the face of America's most
with the way things happen in Washington rather than journal-
serious problem - a federal government which has been on a
ism.
skyrocketing course in terms of cost and a crash course to new
Let's start with how Washington works.
depths in terms of effectiveness.
In 1975, columnist Jimmy Breslin wrote an important book
Let me restate that very simply - government costs more
entitled, How the Good Guys Finally Won. Of course, Mr.
and, simultaneously, accomplishes less than it ever has before.
Breslin and I disagree about the names of the "good guys." His
It is the failure of the media to recognize the basic injustice of
good guys have strange and unfamiliar names like O'Neill,
that fact which has undermined the public's confidence in print
Kennedy, and Rodino. My good guys are better-known names
and electronic news.
- Reagan, Bush, and Goldwater.
Why has the Washington-based media regularly missed its
But let's put that difference aside for the sake of this discus-
deadline on this important story?
sion and get to Breslin's description of power in Washington.
I suspect it has something to do with the "beat" system used
Building on the traditional definition offered by Thomas
by most news-gathering organizations. Like running a gauntlet,
Hobbes in the 1600's that "the reputation of power is power,"
the new man or woman in town starts with hearings at regula-
Breslin states, "power is an illusion."
tory agencies and works up from there to ultimately get a plum
"The ability to create the illusion of power," Breslin wrote,
assignment like the White House or Congress.
"to use mirrors and blue smoke, is one found in unusual peo-
The simple fact that the careers of so many Washington
ple. They reach their objectives through overstatement or un-
journalists are tied to stints at EPA or the Department of Labor
derstatement, through silent agreements and, always, the use of
tells me something. It tells me that anyone who says "maybe
language at the most opportune moments."
we don't need that agency" is in for some rough sledding.
I think that bit of imagery about power and politics - the
Because those who are taking notes or holding a microphone
science of wielding power - is right on target.
while such "radical" things are being suggested probably owe
Success or failure in Washington is now based largely on two
their advancement to a time when they did the "definitive
elements.
story" on EPA the Department of Energy.
First, the illusion of power. The ability to make others be-
Simply put - political leaders who question the need for
lieve that you are a key player whose consent is an absolute
such agencies and programs are, at the same time, bringing into
necessity. As the level of regard for a politician's power drops,
question the significance of some of these journalists' accom-
the level of danger to his career rises.
plishments.
Second, and this is part of the first, the access to the media. A
There is a predictable response. With a few exceptions, jour-
congressman or Senator who regularly appears on television or
nalists are either bewildered by such talk or adamant in their
op-ed pages of major newspapers has demonstrated the ability
defense of the various bureaucracies. How could Americans
to tilt the mirror his way. Few are going to get on the wrong side
possibly continue to labor without a massive Department of
of someone with that skill without some second thoughts.
Labor? Imagine all the evils which will befall our environment
Is the media a sort of pristine monument of objectivity rou-
without the Environmental Protection Agency at full strength
tinely abused by those on both sides of every issue? No!
there to guard it?
The role being played by the media at this very moment
Of course, each of these agencies performs some important
264
VITAL SPEECHES OF THE DAY
duties, vital to the public interest. The choice is not between the
care five times better? Is the U.S. five times more secure? Are
extremes of a sea of regulations at one end of the spectrum and
our schools five times better? Are our streets five times safer?"
no regulations whatsoever at the other. The choice involves two
Those are the questions to ask.
questions: How much regulation is necessary and when does the
Is the American consumer getting his money's worth out of
cost of regulation exceed the benefit?
government?
Last November, the citizens of this country answered those
My hope is that the American media will use some of its
questions by electing a president who said over regulation was
"healthy skepticism" when covering government. I would also
plaguing all those who work in America. Mr. Reagan said
hope that reporters will accept less readily the doomsday pre-
excessive taxation has created and expanded a new class in this
dictions of those who wish to keep the bureaucracies bulging.
country - the working poor. Those statements got people out
For example, last week in Washington, the Associated Press
of their seats and cheering in every state of the union.
moved a story which charged that product safety here in the
But there is a telling observation to be made about that
United States would suffer tremendously if the Reagan budget
election and those two important questions. Again, with few
cuts in the Consumer Product Safety Commission are approved
exceptions, the consumer media in Washington was still
by Congress. I'll offer you one guess who said that. That's right
searching for the questions while farmers and factory workers
- one of the commissioners of the Consumer Product Safety
across this land knew the questions, as well as, the answers long
Commission.
ago.
Now, if that isn't a Washington version of the old editor's
How has the media gotten "scooped" so blatantly by the
saw about "dog bites man," I don't know what is. But, as I said
public?
earlier, I guess the advantage here is that the agency official is
I pose that question though I think I've already answered it.
doing the biting.
But let me offer a perspective here. I think the media has an
But let me close on an optimistic note because, like the
important role to play if we can somehow extricate journalists
President, I am an optimist.
from the Washington breeding process. Parenthetically, I
For the past decade, too large a portion of the American
should add, those of us who are not journalists could benefit
media and the public have adopted a scowl on their face when
from recalling some of the things I am about to outline.
the future of this nation was being discussed. Pessimism about
Economists see this world as a collection of goods and serv-
government, cynicism about the nature of the American spirit
ices. I think that for too long we've separated our government
have served to fog over the many incidents of true heroism
from that fray.
which occur every day in homes and on main streets throughout
Government provides certain services. Is it providing us the
this country.
best service at the most reasonable price?
Whether you agree with it or not, a new course has been set
Some of the most interesting stories done on the local news
for government. There are tax cuts in place where before there
programs in Washington are consumer stories. I'm sure you've
was only talk of tax increases.
seen them. Mrs. Smith had her car repaired at Mr. Jones'
And the real strength in America - her people and the
garage. Mr. Jones' mechanics did a poor repair job so a reporter
energy embodied in their principals and ideas - is becoming
and camera crew from Channel 7 goes to the garage and con-
more apparent.
fronts the guilty repair shop owner. The story usually ends with
Let me leave you with this thought from George Gilder's
a repentant Mr. Jones and a satisfied Mrs. Smith.
Wealth and Poverty: "The ultimate strength and crucial weak-
Today, I say to all of you - the excesses of the federal
ness of both capitalism and democracy are their reliance on
government amount to the greatest consumer fraud story in the
individual creativity and courage, leadership and morality, in-
history of American journalism. President Reagan's budget
tuition and faith. But there is no alternative, except mediocrity
cuts will eliminate much of the murky, gray area of government
and stagnation. Reason and calculation, for all their appeal, can
operations. But we need to remember the questions posed very
never suffice in a world where events are shaped by millions of
well in a recent W. R. Grace & Co. public service announce-
men acting unknowably, in fathomless interplay and complex-
ment. "In 20 years, federal spending has increased five times to
ity, in the darkness of time."
440 billion dollars per year," the TV spot says. "Is hospital
Thank you.
Reprinted with permission
aleregulation
LEI
July 14, 1982
Mr. Morton Blackwell
Special Assistant to the President
The White House
Washington, D.C. 20500
Dear Morton:
It was good seeing you at the Kingston Group last Friday, as it always
is. I believe you missed receiving my memo about the deregulation of the
professions and I am enclosing one for your information.
Also enclosed is a copy of a Human Events article on this subject,
as well as a John Chamberlain column which mentions the fight too.
Best regards,
fee Lee Edwards,
President
LE:ae
file
Lee Edwards and Associates, Inc.
Suite 400
1705 DeSales Street, N.W.
Washington, D.C. 20036
Telephone: (202)296-4411
Public Relations/Advertising
Memorandum
July 9, 1982
TO:
Kingston Group
FROM: Lee Edwards
RE:
S. 2499: Deregulating the Professions
S. 2499, reported by the Senate Commerce Committee on May 28, 1982,
makes a number of substantive changes in the Federal Trade Commission Act, in par-
ticular limiting the FTC's jurisdiction over state-regulated professions such as
lawyers, physicians, dentists, engineers, accountants, pharmacists and surveyors.
Senators James McClure and Robert Kasten wrote much of the legislative language
and are pressing for its passage.
Briefly, S. 2499 will:
1. Protect the authority of the States by preventing the FTC from
attempting to preempt state regulatory law.
2. Preserve the traditional self-regulatory activities of the profes-
sionals from FTC jurisdiction.
3. Restrict the present unlimited authority of the FTC to proceed against
what the Commission considers to be "unfair" competition and "unfair" acts.
4. As the Committee Report states: "Regulation of professionals by the
Commission is unnecessary and inappropriate in light of other extensive State and
Federal regulatory and oversight authority
The Commission's consumer protec-
tion enforcement authority duplicates the States' well-developed. traditional
licensure and regulatory schemes for professionals."
HR 3722, which has over 200 co-sponsors, places a moratorium on any
activity by the FTC against state-regu sted professions until Congress (1) grants
to the FTC specific authority over these professions and (2) allows the FTC to
preempt state laws regulating the professions.
Senate action on S. 2499 is expected in late July or August. The
following Senators are undecided and/or undeclared: John East (R-NC), Orrin
Hatch (R-UT), Gordon Humphrey (R-NIH), Roger Jepsen (R-IA), Paul Laxalt (R-NV),
Richard Lugar (R-IN), Don Nickles (R-OK), Dan Quayle (R-IN), Strom Thurmond
(R-SC) and Malcom Wallop (R-WY).
I believe the principles involved in S. 2499 are important, basically
conservative and worthy of your active support.
Lee Edwards and Associates, Inc.
Suite 400 1705 DeSales Street, N.W. Washington, D.C. 20036
Telephone. (202)296-4411
Public Relations/Advertising
Earnt 6/1</12
FTC Chief
Under Fire
James C. Miller III, President Reagan's deregu-
lation-minded chairman of the Federal Trade
Commission (FTC), continues to be one of the
Administration's top advocates of reducing the
size and scope of the federal government. Ironi-
cally, Miller, who wants to limit his agency's regu-
The heart of the conservative argument is ex-
latory role, finds himself being criticized by some
pressed by Sen. James A. McClure (R.-Idaho) in a
conservatives who say he is not going far enough.
letter to President Reagan. "The FTC has con-
The issues involved are twofold: what should be
sistently been rebuffed by Congress whenever they
regulated and who should regulate it. Only this
sought jurisdiction over non-profit associations,"
he notes. McClure adds, "The whole spirit of your
time, the subject of the dereg debate is not a
Administration has been that, in keeping with the
government-regulated industry or product; in-
10th Amendment, those powers not specifically
stead, it is the FTC itself. The objective is to reduce
delegated by the Congress shall be reserved for the
the agency's power and to remove any incentive for
states."
the agency to take an activist role in regulating pro-
fessions that conservatives believe should be left to
Miller says exclusion of those professional
the private sector.
associations from FTC authority is not in the
Both sides of the Hill are currently reviewing
public interest. According to Miller, studies
proposals to deregulate the FTC, and Miller agrees
show some restrictions of professional associ-
with many of the proposals introduced, including
ations on business aspects increase prices,
the elimination of intervenor funding, where tax-
restrict choices, reduce the availability of pro-
payer dollars defray expenses of attorneys and
fessional goods and services, and do not in-
FTC-approved participants at FTC rule-making
crease quality.
proceedings.
The second area of contention deals with what is
But two key differences remain. Notes a forth
referred to as unfair acts and practices Miller and
the congressional proposals call for a statutory de-
coming edition of Consumers' Research magazine:
finition of unfair acts and practices based on un-
"On the surface, the proposals would accomplish
avoidable consumer injury. With a statutory defi-
much of what Miller assertedly wants: a cut in the
nition, the FTC would be restricted from inter-
FTC's power. However, Miller is opposed to two
preting what is and what isn't "unfair."
elements of the proposal: the excluding of state-
Again, an exclusion is the center of attention.
Congressional proposals seek to exclude ad-
vertising from the proposed statutory definition.
Miller opposes the exclusion of advertising from
his agency's authority.
Even with Miller's opposition to two provisions,
the congressional proposals would significantly
reduce the FTC's power. In the words of
Sen. McClure, they would ease [the] federal regu-
latory burden; preserve the balance between state
and federal government; and encourage profes-
sional self-reguiation. And the proposals to
deregulate the FTC are well in line with President
Reagan's call for a New Federalism by reducing
the authority of a non-elected federal commission
and giving it back to the states.
MILLER
regulated voluntary professional associations,
such as pharmaceutical, Regal and advertising
groups [from the FTC's purview], and the re-
stricting of FTC authority pertaining to 'unfair'
competition and acts."
The Wa. imaton Times
PAGE 8A WEDNESDAY, JULY 14, 1982
JOHN CHAMBERLAIN
Deregulating the regulators
A
re we getting somewhere when
Federal Time Commission, is another
When David Stockman, the budget
it comes to the Reagan admin-
regulatory agency head who favors
director, seemingly took the FTC side
istration's promise to dereg-
reducing the scope of the government.
in the fight over retaining power to
ulate the regulators? Certainly a
He is willing to forego so-called inter-
regulate the professions, McClure hit
better atmosphere prevails in Wash-
venor funding, where the taxpayer is
the roof. He has taken his complaints
ington among the regulators them-
called upon to cover the expenses of
to the White House.
selves. The attitude expressed by
Mark Fowler, chairman of the Federal
The struggle to deregulate the reg-
Communications Commission, is a
ulators proceeds in spite of a general
case in point.
"The struggle to
incomprehension of the role the reg-
Writing in the spring issue of the
deregulate the regulators
ulatory agencies play in the national
Lincoln Review, an excellent quar-
life. We have some 30 federal agencies
terly edited by J.A. Parker. Fowler
proceeds in spite of a
with approximately 200,000 employ-
lists some of the changes that are
ees who spend $8 billion a year in an
coming in the way we transmit and
general incomprehension
effort to keep us healthy, safe and
honest.
receive information. It won't be long
before we have superior phone service
of the role the regulatory
in cars. Home computers, video discs
agencies play in the
But when the Bendix Corp.
and video cassettes, says Fowler, mark
financed a Gallup poll for the League
only the beginning of a technological
national life. We have
of Women Voters on the functions of
revolution.
some 30 federal agencies
the regulators, it found an appalling
state of ignorance of the whole sub-
The spread of cable TV and the
with approximately
ject.
practice of bouncing electronic pro-
grams off satellites means that the
200,000 employees who
More than half a representative
limited number of wavelengths avail-
able to broadcasters is no longer an
spend $8 billion a year
polling sample of American adults,
when asked to distinguish between a
important consideration. Yet the for-
est of regulations governing the
in an effort to keep us
regulation and a law, either could not
name any difference or said that no
broadcasting industry remain. Fowler
healthv. safe and honest."
differences existed. One-half of the
would junk them in favor of a purely
sample interviewed could not name
market approach. Let the customer
even one federal regulation that
decide what he wants to see and hear
affected themselves or their families.
and what methods of delivery he pro-
lawyers and Federal Trade
Only one in five could specify what
poses to select.
Commission-approved participants at
arm of government makes the reg-
FTC rule-making proceedings. But
ulations. And two-thirds of the sample
Fowler wants to get rid of the fair-
Miller objects to a proposed relin-
admitted they had little under-
ness doctrine. It is a patent
quishment of FTC power to regulate
standing of how to go about influenc-
infringement of the First Amend-
the professions.
ing a decision made by an agency or
ment. With a plethora of channels
There will be a fight this month in
department of the executive branch of
available to listeners in the future,
Congress, with Sen. James McClure
the government.
practically every side of an issue will
of Idaho leading a battle to lift the
be heard anyway.
heavy hand of federal regulation from
With ignorance and apathy prevail-
lawyers, physicians dentists and
ing, the progress the Reagan govern-
James C. Miller III chairman of the
CPAs. It is McClure's contention that
ment is making in cutting back on
the public is adequately served
expensive regulation is a minor mir-
John Chamberlain, author and syn-
through professional self-regulation.
acle. Millions of our dollars are
dicated columnist lives and writes in
in accordance with state laws and the
involved, and we ought to be more
Connecticut.
federal antitrust acts.
aware of what is going on.
WASHINGTON INQUIRER
July 16, 1982-Page 7
Overdue Restraints for Runaway FTC
Donald Lambro
These are dark days over at the Feder-
regulations, ending one of the agency's
However, Budget Director David
al Trade Commission, the 68-year-old
most aggressive actions against what is
Stockman made it clear in a letter to Sen.
regulatory agency that, despite its exag-
essentially an industry of small busi-
Robert Kasten of Wisconsin last March
gerated rhetoric, has done little to help
nesses
that "the administration would not sup-
the beleaguered consumer.
If this weren't damaging enough,
port proposals" to remove the pro-
Over the years,
Congress approved a compromise
fessions. from the FTC's antitrust ju-
the agency has
budget resolution that slashed the FTC's
risdiction.
brought
funding for the coming fiscal year to
Sen. Ted Stevens of Alaska, who
multimillion-dollar
$46.2 million - a massive $22.6 million
offered the controversial amendment to
cases against the
cut in its budget. This went far beyond
exempt professional groups, disagrees.
automobile in-
the administration's proposed $61 mil-
Regulation of state-licensed pro-
dustry, the cold-
lion spending level for fiscal 1983.
fessional groups is the responsibility of
breakfast-cereal
Meanwhile, the FTC is still reeling
the states, not Washington, he said.
market, used-car
from the reauthorization bill, approved
Moreover, there is nothing in the FTC
dealers, health spas,
by the Senate Commerce Committee last
laws to support such agency intrusion.
funeral homes, mouthwash and aspirin
May, which would sharply curtail the
"The FTC
has consistently been
makers, and childrens' television ads.
agency's regulatory powers. This bill
rebuffed by Congress whenever they
These and other actions not only failed to
represents a major blow to the panel's
sought jurisdiction over non-profit asso-
chairman, Bob Packwood of Oregon,
ciations," Sen. James McClure of Idaho
reduce consumer costs, but in some
who was on the losing end of a lopsided
wrote President Reagan in April.
ases have added to consumer bills by
11-3 vote to send the bill to the Senate. It
McClure also made it clear that he was
burdening businesses with huge addi-
also represents a major rebuff to the en-
"very annoyed" with Stockman's stated
tional regulatory costs.
tire Ralph Nader-spawned consumer
opposition to the Stevens provisions.
Yet, contrary to the impression that
movement, which sparked a wave of
Since the committee went ahead and
the Reagan administration has been'
businèss regulations during the 1970s.
approved the Stevens amendment any-
slashing the FTC to the bone, it is, in
The bill, which is expected to pass the
way, the administration has been rather
fact, Congress that has been this agen-
Senate this summer, would curb the
quiet on the issue and probably will sup-
cy's worst enemy. Indeed, Congress
agency's regulatory. authority over
port the bill in the end.
appears to be going far beyond anything
advertising claims and professional
There can be no doubt that Congress is
the administration dared to imagine
organizations representing such groups
trying to rein in a runaway agency. FTC
when it cautiously charted its deregula-
as doctors, lawyers and dentists.
Commissioner Patricia Bailey admitted
tory attack early last year.
Most members of Congress now be-
before a House hearing in March that the
Two recent congressional actions
lieve that the federal government should
agency was "not given that authority"
against what is really the very heart and
not be involved in regulating advertise-
over the professions, "but it (the law)
soul of the government's regulatory
ments for mouthwash, aspirin, denture
didn't say we can't do it, either, so we're
apparatus illustrate the quiet revolution
adhesives and other products that pose
going ahead."
that is occurring.
no harm to the consumer. The claims of
Congress appears ready to tell the
such ads should be left to consumers to
FTC, "No you are not," and to curb its
The Senate, by an overwhelming vote
judge, not to a tribunal of administrative
authority in a number of other areas as
of 69-27, has vetoed the FTC's used-car
law judges applying some paternalistic
well. This is why many are now asking,
view of the world.
as did Stockman in early 1981: Why do
we need an FTC to begin with?
© 1982 United Feature Syndicate
THE WHITE HOUSE
AUG 18 1981
WASHINGTON
August 14, 1981
MEMORANDUM FOR RED CAVANEY
FROM:
LOU GERIG leg
Enclosed are two mailings we sent out this
week. The veterans mailing went to over
125 publications for veterans, while the
Vice President's mailing went to the
editors of editorial pages (circulation of
50,000 or more).
E43 and
our Diam Prom
purpor
too bod also F did geterdix
Twe
not menter of that with v. NC 6. Dian to
for and
desne,
THE WHITE HOUSE
WASHINGTON
August 13, 1981
file Regulators
veform
Dear Editor:
Enclosed you will find some material on the Vice
President's recent news conference on regulatory
reform.
In his coments he noted that the Presidential Task
Force on Regulatory Relief was continuing its efforts
to cut back the burden of the American people
If you have any questions, please feel free to contact
our office.
Sincerely,
Lou Ging
Lou Gerig, Director
Office of Media Liaison
Enclosures
THE WHITE HOUSE
Office of Media Liaison
For Immediate Release
August 12, 1981
REMARKS OF VICE PRESIDENT GEORGE BUSH
AT THE PRESIDENTIAL TASK FORCE ON REGULATORY RELIEF BRIEFING
WASHINGTON, D.C., AUGUST 12, 1981
Today, I am announcing a number of additional steps the Presidential Task Force
on Regulatory Relief is taking in its ongoing effort to lighten the regulatory
burden borne by Americans across the country.
In late March, I wrote to a large number of groups and individuals representing
business, labor, consumer, local governmental and other interests asking their
help in identifying burdensome, unnecessary, or counterproductive federal regu-
lations. The response has been overwhelming--to date we have received more than
2,500 individual suggestions and comments.
We are carefully reviewing each and every submission and will continue to do so
until each has been analyzed and acted upon. Today we are announcing that as an
initial result of the review, which has covered 1,800 of the submissions, we
have targeted 30 existing regulations for in-depth agency reconsideration.
We are distributing a list of these regulations with a brief description of the
subject matter involved. These 30 regulations are in addition to the 27 identified
for review which I announced on March 25, and the 34 announced in early April
as part of the auto relief package. These previously announced initiatives are
underway. Many of the proposals in fact have been completed and more final actions
will be announced over the next few months.
We also have identified nine specific areas where we believe that reporting and
paperwork burdens can be reduced. The responsible agencies, in coordination with
OMB, will be reviewing these and other paperwork requirements in order to cut
down the avalanche of paperwork generated by the Federal Government.
I want to emphasize that our actions today are part of a continuing effort.
These are not by a long shot the last regulations to be targeted for review.
They represent only the beginning of the process--a process we will vigorously
pursue in the months and years ahead.
It is, though, a very strong beginning. Our actions announced today, in
addition to the previous actions we have taken, address a substantial portion
of the submissions--approximately 15% of the 1,800 suggestions we have reviewed
to date. In addition, 24% of the suggestions have already been addressed by
previous Task Force decisions. Thirty-two percent address either legislative
changes, such as the Clean Air Act revisions we are asking Congress to make,
or regulations still in the proposal stage where immediate regulatory relief
is not necessary.
(more)
- 2 -
This leaves a balance of only 29% of the submitted suggestions and, by and large,
they involve items of lower priority for which the Task Force intends to seek
effective remedial action during the next few months.
Of particular concern to us are the regulatory burdens. imposed on small businesses.
The problems they have in complying with the multitude of complex and overlapping
regulations are often a major factor in determining whether they can stay in
business and compete effectively.
This critical sector of the economy deserves special attention. We have made
a great effort to address the concerns of small businesses, and we have taken
action on seven of the ten regulations most mentioned by small businesses in
response to my March letter.
Much more needs to be done, however. The Task Force, in conjunction with the
Department of Commerce and the Small Business Administration, is therefore
launching a major effort over the next two months to identify additional problems
affecting small businesses and to act on those where regulatory relief can be
of assistance.
We will be working not only with the remaining 29% of the formal comments
received, but also with a vast amount of unsolicited mail received by my office
and OMB. These small business complaints are not as sophisticated as big
business submissions prepared by Washington offices and law firms. These
complaints also involve a large number of relatively minor regulations as compared
with the fewer major items which we have already identified. They will there-
fore take some time to assess. But we hope to finish a major part of this
effort this fall.
Regulatory relief is an integral part of President Reagan's overall economic
recovery program designed to put America back to work, increase our productive
capacity and reduce inflationary pressures created by federal red tape.
We greatly appreciate the help we have received from the public in identifying
the areas they believe to be most in need of regulatory relief. We are convinced
that this cooperative effort between the Federal Government and the public will
lead to meaningful improvement in the well-being of our economy and our country.
#####
August 12, 1981
EXISTING PAPERWORK REQUIREMENTS TO BE REVIEWED
DEPARTMENT OF AGRICULTURE
1. Food Stamp Household
USDA requires State and local
Certification
governments to collect and
verify information on household
Source of Comment (s) :
income, assets, and automobile
State and Local
ownership on Food Stamp
Governments,
application forms. These data
Business
are verified by contacting
employers and rental agents.
Annual Burden Hours:
These data are used to
29 million
determine which households are
eligible for Food Stamps and to
detect and prevent fraud and
abuse. Collection, verifi-
cation, use, and maintenance of
these records is exceptionally
burdensome to applicants and
State and local governments.
USDA will analyze the system to
identify and eliminate
collection of information whose
value for predicting fraud and
abuse is less than the cost of
obtaining and processing the
data.
2. National School Lunch
States, local governments, and
Program
school districts are required
to prepare and maintain records
Source of Comment (s) :
on all breakfasts, lunches,
State and Local
snacks, and suppers served to
Governments,
children benefiting from the
Business
School Lunch Program. For
example, the school cook has to
Annual Burden Hours:
estimate for each meal how much
46 million
flour and yeast are used in
bread for children's break-
fasts, faculty lunches, and
snacks. The cost of a single
batch of bread must be distri-
buted among classes of meals,
so that the appropriate Federal
reimbursement can be calcu-
lated. The information is also
used to ensure that meals
2
requirements. These record-
keeping and monthly reporting
requirements impose a great
burden on the school systems.
USDA will review alternatives
to this detailed audit trail
such as quality control methods
and selected site audits.
CONSUMER PRODUCT SAFETY COMMISSION
3. Standard for the
To support the guarantee that a
Flammability of Clothing
fabric meets Federal flam-
Textiles
mability requirements, CPSC
requires textile manufacturers
Source of Comment (s) :
to keep records for three years
Consumer
detailing the results of
flammability tests. In
Annual Burden Hours:
addition, information re-
Not Available
garding the flammability of
imported cloth or garments is
required. The need for such
extensive recordkeeping
requirements does not appear to
be justified in terms of the
injuries prevented by the
program. In addition, these
textile flammability standards
and associated paperwork
requirements cost small
businesses and consumers
millions of dollars per year.
FEDERAL ENERGY REGULATORY COMMISSION
4.
Retail Electric Cost of
Section 133 of the Public
Service Report Under
Utility Regulatory Policies Act
PURPA
requires the Federal Energy
Regulatory Commission to
Source of Comment (s) :
collect information from
Business
electric utilities concerning
their determination of the
Annual Burden Hours:
costs associated with
626,500
providing electric service.
The statute requires this
reporting of costs to be broken
down into the costs of serving
each electric consumer class,
consumption patterns with these
classes, and kilowatt demand
loads for each class charged
different rates. These
3
statutory requirements are
implemented through 21 pages of
printed regulations, and nine
pages of optional formats. The
review should examine ways to
minimize this reporting burden
given the potential utility and
need for the information.
FEDERAL TRADE COMMISSION
5.
Premerger Notification
The report requires companies
Rules and Report
that are merging to notify the
FTC and the Department of
Source of Comment (s) :
Justice of that intent and to
Business
provide extensive company data
concerning the proposed merger.
Annual Burden Hours:
The report is required by
50,450
statute, but the 112 pages of
printed regulations and forms
require a vast amount of
information concerning voting
securities, revenues, share-
holdings and corporate
structure. The FTC is in the
process of making extensive
revisions in response to
industry complaints about the
length of the form and dupli-
cation with data collected by
the Securities and Exchange
Commission. The review will
seek to narrow the scope of
information required, so that
practical utility and need are
balanced against unnecessary
burden.
NUCLEAR REGULATORY COMMISSION
6.
Domestic Licensing of
The regulations for licensing
Nuclear Production and
commercial nuclear powerplants
Utilization Facilities
set forth the content of plant
construction permits and
Source of Comment (s) :
operating licenses. NRC esti-
Business
mates that the reporting,
recordkeeping, and application
Annual Burden Hours:
requirements in the regulations
8.4 million
cost industry $232 million
annually. The review will
analyze statutory mandates and
court decisions to determine
how to make these requirements
4
DEPARTMENT OF TRANSPORTATION
7.
Local Transportation Grant
Before giving a grant, the
Forms
Urban Mass Transportation
Administration requires local
Source of Comment (s) :
transportation systems to fill
Business,
out numerous application forms.
State and Local
These include a general
Governments
application form, a budget
information form which has no
Annual Burden Hours:
relevance for requests for
Not Available
operating grants, a second
budget form, a maintenance of
effort schedule, and a
description of the transit
system, as well as a variety of
forms regarding the applicant's
compliance with such
requirements as EEO,
Schoolbus/Charter bus
regulations, implementing
regulations of Title VI, and
others. If a single transit
system wishes to apply for both
operating and capital grants,
it must fill out application
materials for each request,
even though much of the
information is duplicated.
UMTA will examine the
information required of grant
applicants to reduce
duplication and decrease the
burden of paperwork on grant
applicants.
8.
Cultural Resources
Recipients of Federal Highway
Administration construction
Source of Comment (s) :
grants are required to weigh
State and Local
the effects of the project on
Governments
cultural resources and to
protect historic sites.
Annual Burden Hours:
Even if a highway project
Not Available
affects only one quarter of an
acre of parkland (regardless of
the extent to which the land is
used) a detailed evaluation
must be completed and approved
by the Secretary of Trans-
portation. Furthermore, when
5
historic sites are involved, a
separate analysis is required
for evaluation by the Advisory
Council on Historic
Preservation. These
requirements increase the costs
of highway construction as well
as impose a significant
paperwork burden on FHWA grant
recipients. FHWA will review
these rules to reduce both
costs and paperwork burden.
9. Guide to Reporting Highway
This FHWA guide compiles data
Statistics
collected from States on motor
fuel usage, motor vehicle
Source of Comment (s) :
registration and drivers'
State and Local
licenses, revenues and fees
Governments
from gas taxes and licensing,
and how highway funds received
Annual Burden Hours:
from Federal, State and local
66,000
sources are spent. This
information is collected on
over a dozen different forms
and duplicate data which is
collected by States. These
forms will be reviewed by FHWA,
both as to their specific
requirements and whether such
information should even be
collected by the Federal
government.
August 12, 1981
EXISTING REGULATIONS TO BE REVIEWED
DEPARTMENT OF AGRICULTURE
1. Regulations and Policy
These regulations and policy
Statements Under the
statements interpret
Packers and Stockyards
the provisions of the Act
Act
and establish requirements
regarding fair practices and
Source of Comment (s) :
competition in the marketing of
Business
livestock, meat, and poultry.
The regulations specify, in
detail, requirements governing
operations, management, and
financial transactions. A
principal issue to be reviewed
is the extent to which market
entry and operating efficiencies
are impeded by regulatory
requirements such as (i) bonding
for dealers, (ii) custodial
accounts, (iii) review of
auction market facilities; and
(iv) financial statements.
DEPARTMENT OF THE ARMY (CORPS OF ENGINEERS)
2. Section 404 Permit
This program involves the
Program
issuance of permits for the dis-
charge of dredged and fill
Source of Comment (s) :
materials into U.S. waters.
Agriculture,
Current problems include the
Business,
time required to obtain a
State and Local
permit, overlapping interagency
Governments
responsibilities, and a lack of
specificity in program
objectives. For example, the
processing of controversial
permit applications averages
271 days.
2
3. Water Conservation
A 1978 Presidential memorandum
Memorandum
requires municipal and industrial
users of water from Federal projects
Source of Comment (s)
to submit water conservation plans
Non-Profit Organizations
to the Federal government. Such
plans detail specific measures and
timetables to minimize water
consumption. The Federal agency
responsible for the water project
must review and approve these plans,
at least once every five years.
Under this regulation, communities
needing water from nearby Federal
reservoirs may not obtain it until
the Federal government has approved
their plans even though the
communities pay for all the water
they use.
DEPARTMENT OF COMMERCE
4. Maritime Administration
U.S. flag operators subsidized by
Subsidy Program
the Federal government must comply
with numerous requirements of the
Source of Comment (s) :
Maritime Administration. For
Business
example, these requirements
prescribe trade routes and
schedules. They also involve
complex and lengthy reporting.
DEPARTMENT OF EDUCATION
5. Title IX-Athletics
These interpretations provide
Policy Interpretations
guidance to institutions on how to
operate athletic programs that
Source of Comments (s)
receive Federal financial assistance
Education
so that these programs do not
Institutions,
discriminate on the basis of sex.
State and Local
Concern has been raised about
Goverments
recordkeeping, overall coverage, and
requirements for comparable
expenditures for both sexes. Under
these provisions, colleges and
universities must use the same pay
scale for male and female coaches,
expend equal amounts for publicity
of male and female athletic events,
and expend equal amounts on
equipment and supplies for males and
females.
3
6. Sec. 504 of the
This regulation provides guidance to
Rehabilitation Act -
institutions on how to administer
Nondiscrimination on
programs that receive Federal financial
the Basis of Handicap
assistance without discriminating on
the basis of handicap. For example, a
Source of Comment (s):
school district with a two-story build-
Educational
ing may have to install an elevator
Institutions,
because one of its students is confined
State and Local
to a wheelchair. Similarly, a school
Governments
district has had to spend $20,000
annually to provide an interpreter for
one deaf student. Also, concern has
been raised about compliance costs and
diversion of resources from special
education instruction because of
administrative and recordkeeping
costs.
ENVIRONMENTAL PROTECTION AGENCY
7. Lead Phasedown
In order to reduce lead emissions from
automobiles, the maximum amount of lead
Source of Comment(s):
that can be added to gasoline (on the
Business,
average) has recently been lowered from
Agriculture
0.8 grams per gallon to 0.5 grams per
gallon. This "phasedown" imposes a
substantial energy penalty because of
the increased amount of crude oil
required to produce low-lead or
unleaded gasoline. The phasedown will
also impose onerous capital
requirements on small refiners. The
gradual decline in the number of
vehicles that use leaded gasoline has
reduced lead emissions by nearly the
amount originally sought by the
phasedown program, and further
reductions will occur as more older
vehicles are replaced. This may offer
adequate protection for most of the
country, where lead concentrations in
the air are already below the level
judged safe by EPA. EPA will examine
the feasibility of providing quick
relief for small refiners and will open
a rulemaking to consider relaxing or
rescinding the entire lead phasedown
rule.
4
8. Premanufacture
The Toxic Substances Control Act
Notification Exemption
requires the manufacturers of new
Policies
chemicals to submit extensive
information to EPA on the chemical
Source of Comment(s)
physical properties and uses, its
Business,
health and environmental effects and
Professional Society
the manufacturer's production plans.
The notification requirements
implemented under the Act hold the
potential for obstructing the
introduction of new chemicals. EPA
will consider waiving or relaxing
requirements for chemicals that do not
pose an unreasonable risk to health or
the environment.
9. Pesticides Registration
Pesticide manufacturers must test
Program
and register products prior to sale.
The data requirements are extensive and
Source of Comment (s)
costly. EPA registers 25-30 new
Business,
pesticides each year and processes
State and Local
20,000-25,000 supplemental registra-
Governments,
tions for new uses of existing
Agriculture,
products. The registration process
Educational
appears to delay unnecessarily the
Institutions
distribution of new pesticide products
and to inhibit new uses of existing
products without providing commensurate
health and environmental benefits.
10. Consolidated Permit
The original intent of EPA's
Program
consolidated permit program was to
systemize and streamline permit
Source of Comment (s) :
procedures--for example, "one stop"
Business
permitting for new facilities across
State and Local
several program areas. However, actual
Governments,
implementation of the regulations has
Professional Society
resulted in greatly increased
complexity, including often unnecessary
procedural requirements and information
burdens.
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
11. Sexual Harassment
These are guidelines issued under Title
Guidelines
IX of the Civil Rights Act of 1964
regarding employers' responsibility for
Source of Comment (s) :
sexual harassment experienced by their
Business,
employees. Concern has been raised
Educational
that the guidelines are vague and fail
Institutions
to provide guidance on what constitutes
5
prohibited behavior. For example, the
guidelines include terms such as
"unwelcome sexual advances" and "verbal
sexual conduct" which rely greatly on
individual perception.
12. Uniform Guidelines
These guidelines issued under Title IX
on Employee Selection
provide a uniform set of principles for
Procedures
all employers to use in hiring to
assure that employers are not
Source of Comment
discriminating on the basis of race,
Business,
color, religion, sex, or national
State and Local
origin. The guidelines prohibit the
Governments,
use of a selection process (including
Educational
testing) that disproportionately
Institutions
excludes members of a race, sex, or
ethnic group. Employers have expressed
concern about the recordkeeping
requirements associated with the
guidelines. An "adverse impact" exists
if the selection rate for the least
successful group of applicants is less
than 80 percent of that of the most
successful group. Employers must
maintain data on the race, sex, and
ethnic origin of each applicant SO that
the progress of each group can be
tracked through the selection process.
FEDERAL EMERGENCY MANAGEMENT AGENCY
13. The National Flood
This program provides Federal flood
Insurance Program
insurance to property owners in flood
plain areas, provided that communities
Source of Comment (s)
join the Flood Insurance Program. If
State and Local
designated flood-prone communities do
Governments
not join the program, individuals are
not eligible for Federal assistance
programs such as grants, FHA/VA
mortgage guarantees, and disaster
assistance. FEMA's detailed and
cumbersome flood plain management
standards tend to be incorporated into
local building codes which are then
applied to all local construction and
thus add to the cost of building,
whether in a flood plain or not.
6
GENERAL SERVICES ADMINISTRATION
14. E.O. 12072
This Executive Order requires that
Federal facilities in urban areas
Source of Comment (s)
be located in central cities when-
Congressional
ever possible. Current regula-
Inquiries,
tions require relocations even
State and Local
when the cost to the taxpayer is
Governments
as much as 15 percent higher. For
example, in Fort Smith, Arkansas,
two Social Security field offices
were recently relocated and their
rental costs increased by 92
percent.- from $52,000 to
$100,000 a year.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
15. Health Planning
Health planning regulations, in-
tended to control rising hospital
Source of Comment (s) :
costs, have themselves been costly
Business
and appear to have restrained
competition within the health care
industry. Extensive justification
is required for expansions of
facilities and service, or changes
in or acquisition of new equipment.
For example, justifying the purchase of
equipment costing $150,000 may cost as
much as $75,000. HHS will review these
regulations and explore ways of making
them more cost-effective, pending
legislative action to terminate the
program.
16. WIN Program
The Work Incentive Program (WIN)
is designed to assist and
Source of Comment (s)
encourage individuals receiving
State an Local
State support from Aid to Families
Governments
with Dependent Children (AFDC) to
achieve self-support through
employment and on-the-job
training. However, because of a
maze of guidelines, rules, special
treatment exclusions and
limitations, the program has had
limited success. For example, in
7
some States, the truly
economically disadvantaged are not
included in WIN while the incomes
of other categories of families
are considerably elevated. The
review will address the
overlapping requirements of the
program's co-sponsors, the
Departments of Health and Human
Services and Labor, and how to
reduce the burdens on the state
agencies that administer the
program.
17. Patient Package Inserts
The patient package insert (PPI)
regulation would require that each
Source of Comment (s) :
time a drug prescription is filled
Business
a printed document describing
appropriate uses, side effects,
and related information must be
provided. Important questions
have been raised about the utility
of PPIs since the decision to use
a prescription drug is nearly
always made before purchase.
Costs to drug manufacturers, drug
wholesalers, and pharmacists,
including thousands of small
businesses, could be substantial
and thus lead to increased prices
for prescription drugs. For
example, FDA estimates that the
regulation would involve over 120
million pieces of paper. Thus,
questions concerning the benefits
and costs of PPIs merit further
review prior to implementation.
8
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
18. Community Development
These rules establish eligibility,
Block Grant Programs
application, administrative
requirements, and performance
Source of Comment :
standards for small cities that
State and Local
compete for Federal financial
Governments
assistance, and for larger
"entitlement" cities that receive
financial assistance on the basis
of statutory formulae. These
requirements may unnecessarily
diminish local flexibility and
impose excessive administrative
and compliance costs. For
example, one community was denied
funding for projects to promote
the safety and welfare of its
neighborhoods; instead, the
funding had to go to water and
sewer projects.
19. Environmental Policies
These rules establish procedures
and Requirements
for protecting environmental
quality under the National
Source of Comment (s) :
Environmental Policy Act and
State and Local
related authorities, such as the
Governments,
Historic Preservation Act. These
Business
requirements may cause excessive
delay in publicly and privately
funded construction and
development projects, reduce local
discretion, and add to
administrative costs borne by
localities, business, the public,
and the Federal government. For
example, a housing development or
local government project involving
no significant environmental
impact can be delayed several
months, or even years, and Federal
funds withheld pending completion
of environmental studies and other
review procedures.
9
20. Mobile Home Construction
These rules set mobile home
and Safety Standards
construction and safety standards
that preempt state standards. HUD
Source of Comment (s) :
sets procedures for approving the
Non-profit Organization
design of mobile homes, and for
conducting inspections of the
plants where they are
manufactured. HUD also sets
requirements for state agencies
and private bodies to qualify as
primary inspection agencies.
These standards may impose
unnecessary costs on builders and
owners of mobile homes. For
example, a manufacturer wishing to
use solar energy as a means of
reducing construction and energy
costs to purchasers, is hindered
by the lengthy process required to
amend HUD standards.
21. Utilities Allowances
Under current rules, many tenants
in public housing projects have no
Source of Comment (s) :
incentive to economize on utility
State and Local
use. Excessive utility use
Governments
increases costs to both the
federal government and local
public housing authorities (PHAs).
As a result, PHAs may be forced to
reduce other tenant services in order
to cover costs. In effect, this system
penalizes conservation-minded tenants
and wastes energy.
22. Lease and Grievance
These rules establish compliance
Procedures
procedures that must be incorporated in
leases by local public housing
Source of Comment (s) :
authorites (PHAs) assisted by HUD. Not
State and Local
only do they often duplicate and
Governments
sometimes exceed State and local
ordinances, they tend to make it
difficult for PHAs to protect the
health and safety of tenants. For
example, PHAs claim that disruptive
tenants that violate their leases,
vandalize housing and prey upon other
tenants can avoid for months effective
remedial actions by the PHA. Reforming
these requirements could benefit
tenants, PHAS, and deserving families
seeking public housing.
10
DEPARTMENT OF THE INTERIOR
23. Fish and Wildlife
The Act requires consideration of
Coordination Act
wildlife resources in federally
funded or approved projects
Source of Comment (s)
affecting wetlands, streams, and
State and Local
other waterbodies. Typical projects
Governments,
include construction of channels, dams,
Business
and marinas, mineral exploration on the
Outer Continental Shelf, and even
highway projects resulting in changing
the flow of a stream. Current
procedures are extremely complex and
burdensome on Federal agencies and
permit applicants. They appear to
duplicate many rules promulgated under
the National Environmental Policy Act
of 1969.
24. Endangered Species Act
The Act requires that Federal
agencies consult with the Secre-
Source of Comment (s)
tary of Interior (or Commerce if
State and Local
appropriate) to ensure that their
Governments,
activities are not likely to jeo-
Business
pardize threatened or endangered
species. Current rules are out-
dated and may impose excessive
burdens on Federal agencies and
permit applicants. For example,
whenever an endangered species may
be found in a project area, bio-
logical assessments must be con-
ducted even though this may dupli-
cate analysis in the Environmental
Impact Statement. In addition,
regulations implementing inter-
agency coordination requirements
do not reflect 1978 and 1979
amendments designed to improve the
process.
DEPARTMENT OF LABOR
25. OSHA Commercial
This set of regulations establish-
Diving Standards
es safety standards for the com-
mercial diving industry. These
Source of Comment (s) :
rules govern all aspects of diving -
Business
from equipment use to medical
fitness, to operating procedures, to
recordkeeping. Such detailed
11
requirements do not appear to provide
sufficient flexibility for small
diving operations. OSHA review of
these rules will consider alternative
approaches and measures to reduce
unnecessary costs, particularly on
small firms.
OFFICE OF MANAGEMENT AND BUDGET
26. OMB Circular No. A-119,
This Circular establishes a
"Federal Participation
Federal policy of relying on
in the Development and
voluntary standards wherever
Use of Voluntary
possible and encourages Federal
Standards"
agencies to participate in the
development of such standards.
Source of Comment (s) :
For example, the Federal Government
Business
uses industry standards (e.g.,
electrical outlet sizes) to simplify
acquisition, encourage competition
and restrain the costs of the goods
and services it acquires. However,
under this Circular, voluntary
standards-setting organizations which
desire Federal participation must
certify to the Secretary of Commerce
that they adhere to detailed
procedures specified in the
Circular; the Secretary is then
required to maintain a list of such
organizations. Because of the cost
of meeting these Federal
requirements, many small industry
standards-setting groups may find it
difficult, if not impossible, to
participate.
27. OMB Circular No. A-95,
Under this Circular, Federal agencies
"Evaluation, Review
are required to utilize clearinghouses
and Coordination of
established by State and local
Federal and Federally
governments to ensure that Federal
Assisted Programs and
projects are properly coordinated with
Projects"
all affected parties. The process by
which applicants for federal grants
Source of Comment (s) :
submit their applications for
State and Local
clearinghouse review appears to have
Governments
turned away from the original purpose
of avoiding duplication to undue
emphasis on bureaucratic review.
12
OFFICE OF PERSONNEL MANAGEMENT
28. Federal Standards for
States are currently required to adopt
A Merit System of
a complex set of Federally mandated
Personnel Administration
merit hiring practices to be eligible
for a host of Federal programs.
Source of Comment
Programs requiring State merit hiring
State and Local
range from Food Stamps to Health
Governments
Insurance for the Aged. The existing
rules appear to be overly complex and
burdensome on state and local govern-
ments, and restrain their flexibility
to develop hiring practices more suited
to their specific situations.
DEPARTMENT OF TRANSPORTATION
29. Marine Vessel
Coast Guard standards for new
Construction Standards
vessel construction appear to be
more restrictive than most foreign
Source of Comment (s) :
construction standards. This variance
Business
puts U.S. shipyards at a competitive
disadvantage with foreign shipyards and
substantially limits the investment
potential for construction of new
commercial ships in this country. For
instance, the double hull construction
required to prevent oil pollution may
not be the most cost-effective approach
since it adds between seven and 15
percent to the total construction cost
and introduces the danger of explosion
of oil seepage between the hulls.
30. Geometric Design
Current FHWA regulations
Criteria for Highways
promulgate standards and
guidelines for new construction of
Source of Comment (s) :
federal-aid highways. These
State and Local
rules apply to such matters as
Governments,
highway geometry, location of
Consumer
signs, bridge design, and location
of traffic barriers. The review
will address the complexity of
these rules, as well as the
appropriate responsibilities of
state and local governments.
THE WHITE HOUSE
Office of Media Liaison
For Immediate Release
August 13, 1981
VETERANS VISIT WHITE HOUSE
For many members of the Blinded Veterans Association, a highlight of their
participation in the 36th National Convention of the Association was an
informal open house at the White House. On August 12, about 250 veterans
and members of their families enjoyed a tour arranged by Carol McCain,
Director of the White House Visitors Office.
In proclaiming August 13, 1981, as National Blinded Veterans Recognition Day,
President Ronald Reagan gave special recognition to thousands of veterans who
have suffered the catastrophic disability of blindness.
"Despite the extreme severity of this disability," the President noted, "these
veterans have succeeded in leading useful and productive lives, in part through
Federal programs for their readjustment but, more significantly, by drawing upon
a special brand of heroism."
Photograph enclosed.