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ments.

I was unable to attend your Atlanta Hearing regarding administrative rule-making this past week, as I had already made previous commit

However, I do wish to commend you in this very worthwhile endeavor and would ask that any information that was prepared or handed out at the meeting be forwarded to me.

was

I do support your efforts, along with those of Elliott Levitas, in attempting to make executive agencies more responsive to the electorate.

My very best wishes.

Sincerely yours,

Apple Higheden

Clyde Hightowe

CH:lt encl:

PS: I'm attaching an article relevant to impact of federal regulations.

C.H.

cc: Honorable elliott H. Levitas

506 Cannon House Office Bldg.
Washington, D. C. 20515

(From the Wall Street Journal, Feb. 18, 1976)

IDEAS FOR SALE: MORE FIRM8 BUY, SELL, THE FRUITS OF RESEARCH, TO AND FROM

OUTSIDERS; SOME OLD BARRIERS EASING; BUT PROUD SCIENTIST KILLS ACCORD ON NEW PRODUCT

ONE BIG WORRY:NONPAYERS

(By Liz Roman Gallese, Staff Reporter of The Wall Street Journal) Waltham, Mass.-Eight years ago Whittaker Corp.'s Space Sciences division was a hot little research outfit, dreaming up ideas for aerospace and defense products. But since then, getting federal contracts has become more expensive and time-consuming. The division's revenues from government work slipped to about $425,000 in 1975 from $600,000 in 1968. * * * because rising costs have cut into their own research and development budgets. The National Science Foundation says that since 1969 the number of scientists and engineers doing research in 8,000 U.S. companies has declined 8%, and the amount of money spent is down 1.7% in constant dollars. Moreover, many researchers today spend more time substantiating advertising claims and coping with federal regulatory requirements than they do working on new products, company executives say.

COMPETITIVE STRUGGLE

In addition, companies need an ever-increasing array of new products just to keep pace in a marketplace that is increasingly cluttered and competitive. As many as 40% of new consumer products fail, and those that do well have shorter and shorter shelf lives, recent studies show.

"The new-product rat race is analogous to the arms race_companies have to run harder just to stay in the same spot,” says Patrick McGuire, project director at the Conference Board, a nonprofit New York organization devoted to business research. "If they put 50 raw ideas in at the top and get one good one out at the bottom, they're doing all right. But they aren't putting in enough at the top,”

he says.

Selling or licensing patents or products isn't new, of course. Companies seeking a foothold in a new business or geographic area or lacking the resources to get a raw idea off the ground themselves have long been handing products and processes over to others. But such licensing usually was done in a haphazard manner.

A decade ago, however, at least two aerospace research concerns, TRW Inc.'s Systems Group and Avco Corp., tried to get into the business in a big way. But they were ahead of their time. Few buyers were interested; their own wellfinanced research staffs often were turning out more ideas than the companies could use. After four years, in 1973, TRW dismantled its full-time idea-selling operation * * *

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I have just learned of the hearings you held in Atlanta on February 12 to gather information concerning the impact of federal regulations on local services. As District Health Director for the Southeast Health District, I am extremely concerned about HEW's new regulations for Title XX services.

We provide family planning services for approximately 6,000 women in this 16 county District. The intent of Congress with Title XX was to make these services more available to low income citizens. HEW's regulations will do just the opposite in many cases.

The most onerous regulation is the requirement for a "verified" income which is required every 6 months! Family Planning patient's income will have to be verified each visit as they receive services only one or two times per year. The verification of the income takes (at minimum) 30 to 40 extra minutes per patient. This addition of 30 minutes work would double the time required to hold the clinics with

additional services offered to the patient.

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The irony is that we are mandated to offer the service, even if they are not "eligible" under Title XX; so we go through the whole process and serve them regardless. The cost in staff time, paper work, and client's time is enormous. Another regulation defines "family" for income eligibility purposes that teenagers and college students would have to get a "verified income" from their parents. We are Federally required to offer our services to these clients without parental consent. The verification of the parents income would, in effect, be a requirement for parental consent.

SO

We are scheduled to implement Title XX's regulations on April 1. This will definitely cause us to have to decrease the number of clients we can serve because of the paper work; yet, without Title XX funds we would lose Title X. Together Titles X and XX make up about 60% of our budget. So in this "Catch 22" situation, the public loses either way.

Your investigation into this matter would be greatly appreciated. We would be glad to supply you with any additional information you might wish.

Sincerely,

John Tuddy Holloway mo

John Teddy Holloway, M.D.
District Health Director

JTH:mg1

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4018 LAWRENCEVILLE HWY • TUCKER, GEORGIA 30084 • (404) 939-6842

March 10, 1976 SUSCOMMITTEE ON

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HAR 1–1976

Senator Sam Nunn
275 Peachtree Street, N.E.
Atlanta, GA

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CVERSIG:7 PROCEDURES

Dear Sena tor:

I very much appreciate your letter of February 9, 1976 with reference to the Subcommittee on Oversight Procedures holding their public hearing in Atlanta on February 12, 1976. Unfortunately, your office did not get the letter mailed and I did not receive it until February 16--looks like there was an oversight someplace in your own office. As a small businessman; yet, one who has worked in big business for many years as well; it is obvious that the size of the Federal Government is completely out of hand. The overall figure on growth of the Federal Governmental Body well illustrates this point, and probably 50 percent of the governmental personnel could be elliminated without seriously interfering with the operation of our federal establishment. Obviously, this can not be done quickly or easily; but, I do not see anyone trying to take any action to accomplish it. Too many do gooders are in the government operations particularly as they relate to product safety and consumer products. About the only concrete accomplishment this group has made is added to the fires of inflation through their own bureaucratic organization and driving up the cost of consumer products in which they become involved. There has to be a simpler and better way to accomplish the same ends.

Cordially yours,

ru George A. Warren, Jr.

Pori Sauren!

GAW :pw

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