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APPENDIX A M-83 -4 EXECL1TIVE OFFICE OF THE: PRESIDENT OFFICE OF MANAC;EMENS AND BUDS WAS~INGt~, D.C. ~ 01~ 2 6 1082 NOTANDUM TO CADS OF EXI:CUTIV=~ DE:PART=NTS AND AGI:NCIES P ROM: David A . Stoc3cman4~C SUBJECT: OMI3 Circular No. A-ll9' Federal Participation in the Development and Use of Voluntary Standards which ana us ing Also attached Attached, for your implementa~cion, is a revision to OMB Circular No. A-119 which provides guidance to agencies in working with, and using the products of, private sector standards organizations. The effect of this revision is to eliminate the costly, unnecessary, and burdensome aspects of the Circular, while continuing to encourage agency partici- pation in the de`7elop~nent of private sector standards. the products The effect of for your information and use is a letter, dated June 22, 1982, from the Department of Justice, which provides guidance in ache implementation of the Circular -- particularly as it relates to working with private sector groups to develop needed standards. At tachmen ts 29

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EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGE WASHINGTON, O.C. ~ 0CT 2 ~ 1882 CIRCIJI~AR NO. A-119 R3WI SE:D Trans~r.ittal Memorandum No. TO '1-~ E~:=S OF -=XECtJTIVE: DEPAR1~S AND ESTABLI STUNTS SUBJECT: Federal Participation in the Development and Use of Voluntary Standards ~ ~ Purpose . hi s Circular establishes policy to be followed by executive agencies in wor} OCR for page 29
bureau, office, agency' Gave~ment-owned or controlled co~ra~on ar ether establi~t af Else Federal - Government, including reTry co~sa~ion Or Carat It drew =ot I3CiU~ He legislative or I brunches af ~ Fevers Government. b. St;us~ means a prescribed set of rules., co~i~ons, or re~e=ts concerned w~= He definition of terms, class2fica~ors af cants; de=neat~= Qua procedures; spec~fica=~n of one Its p.~or3~ce' design, or operation, mea~es~ent at qualms ~ City su describing materzaiis, products. systems, service. car practices' or description of fit and measurement of ~zc. c. Flu* st=-darde are es~c01~h" generally by pr2~;`te sector Cues ~4 are ava$101e for use by ~y person or org=~zati.as`, private car go~e~-eal. He te~ suclucles what are company referred to a- Pigsty ~:andards- an well as nconse~s stanzas., ~:t does not Occlude pr=fess~Q~ a~2dards of persona Chuck, It bred cues of etch as, private shards of Irene firms, or Cards mandate t:sy [aw, SuC~ aS muse CO=taz~ IU the 0~: - S0tas ]?~macopeia ~d Else Nat FoD:lary, ae referent in 21 O.S.C 351 d. G~a~ent standards include i All ~c~1 agency standards , and specif~ca=~ns as well as Eed~l ~ Mild tar F Chards mnd spec==ca~tio~. e. ~Jaluntarv stanza - a }hues are prince sear domestic or ~- mul~=or~ off z8~ns sU0 as norefit o~zations, try ~sQciatiQr2s, pr=es~c,=;4 ~ te~caL societies, institutes, or group-, Act r~agn~zs~ toast la}'orator~e -- that plan, devel, es-,abi~^, Or Coordinate try 5ta~ar~s. f. St~d~-cievelouzn~ Froths are co~=ees, boards, or ~- ~y other pr~pal '=bdi~aions af vol,:~tary sta"dards b~ies' es-~s}:ect by such Keyes for the purpose of developing~ reds, ar reviewing standards, ~ Waco are both }:' y the procedures car =~se brief. g. Acloutio~s means the spasm at ~ latest: Edison of a voluntary standard in Bale, ~ part, ar }fly reference for procurement proses ah he inclusion A he latest edition of a Voluntary 5~0 I" wholes ~ part' or by reference in regulation t a) . h. Se~ret;.rv mess he Siecretasy I Commerce Secretary s designee. Ala. A-~9 31 or that

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6. Policy. It is the policy of the Federal Government in its procurement and regulatory activities to: a. Rely on voluntary standards, both domestic and international, whenever feasible and consistent wi h law and regulation pursuant to law; b. Participate in voluntary standards bodies when such participation is in the public interest and is compatible with agencies' missions, authorities, priorities, and budget resources; and c. Coordinate agency participation in voluntary standards bodies so that (1) -~he most effective use is made of agency resources and representatives; and (2) the views expressed by such representatives are in the public interest arc, as a minimum, do not conflict with the interests and established views of the agencies. 7. Policy Guidelines. In implementing the policy established by this Circular, agencies should recognize the positive contribution of standards development and related activities. When properly conducted, standards development can increase productivity and efficiency in industry, expand opportunities for international trade, conserve resources, and improve health and safety. I t also must be recognized, however, that these activities, if improperly conducted, can suppress free and fair competition, impede innovation and technical progress, exclude safer and less expensive products, or otherwise adversely affect trade, commerce, health, or safety. Full account shall be taken of Eve impact on the economy, applicable Federal laws, policies, and national objectives, including, for example, laws and regulations relating to antitrust, national security, small business, product safety, environment, technological development, and conflicts of interest. It should also be noted, however, that the provisions of this Circular are intended for internal management purposes only and are not intended to (1) create relay in =he administrative process, (2) provide new grounds for judicial review, or (3) create legal rights enforceable against agencies or their officers. The following policy -delves are provided to assist and govern implementation of the policy enunciated in paragraph 5. a. Reliance on voluntary Standards. (1) Voluntary standards that will serve agencies' purposes and are consistent with applicable laws and regulations (No. A-119) 32

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should be acoptec! anc used by Federal agencies in ~he ~.terests of great er economy ar^d eff ciency, unless they are specifica' ly prohib~ ~ ed by ~ aw f -om do ing so . ~ 2 ~ Voluntary standards should be given preference ove_ non-manciatory Goverrunent standards un~ ess use of such vo luntary standarcis would act~ersely af~ect performance or cost, recluce competi ~i on, o r ha~re other s i gni fi c ant di sadvantages . Ager~c ~ e s responsible for developing Government standards should revi ew their existi;~g standarcis at least every five years and cance: =hose for which an ade~uate and appropriat. ~roluntary standard can be substituted. ~ 3 ~ In adopting and using ~ro inutary star^da-ds, preference shou, ~ be ~,en to those baseci on performance cr ter' a when such criteri a may reasonably be useci in lieu of des ~ gn, material, or construction criteria. ~ 4) Voluntary standards adopted by Federal agencies should be referenced, along with their aetes of issuance anci sources of a~railability, in appropriate publications, regulatory o rders, and re ~ atec! in-house documents . Such adopt) on should t eke i nto ac c our~t the requ i r ement s o f c op yr i ght and o the r s ~mi i ar restrictic~ns. ~ 5 ~ Asencies shouici r~ot be inhibited, if vit-hin tt.2i' statu ~o ry aut:~ho ri ti e s, f rom de,Je l oping ~ and u s ing G<~ve rnmen~ standards in the e~rent that vo luntary stanciards bodies cannot or clo not de~relop a ne^ded, acceptable standard in a timely fashior-. Nor should the policy contained in t"his Circular be construed to commit any agency to the use o~ a voluntary standard which, a-ter due consideration, is, in its opinion, inadequate, does not ;neet statutory criteri a, or i s otherwi se inappropri ate . b. Partici~ation in \?oluntarY St~nciards Bodies. Participation by knowledgeable agency employees ~- ~he stand~rds activities of voluntary standards DO~'. es and standards-aeveloping groups should be actively e~.couragec and promoted by ager~cy ofCicials when consistent wi-~h -~he provisions of paragraph 6~. (2 ~ Agency e~nployees w~o, at Government expense, part~ ci?ate in s~anda-ds activi~ies of voluntary standards bod~ es and s~andards-cieveloping groups should do so as specifica~ly au-hor~ zeci agency rerresentatives. (No. A-119 ) 33

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~ 3 ~ Agency parti c i pati on in vo l untary stand ard s both e s and standards-de''eloping groups does not, of itself, conno ~ ~ agency agreement wi tic, or endorsement of, deci si one reached by such bodies and groups or of s standards approved and published by vo luntary standards bodi e s . ~ 4) Participation by agency representatives should be aimed at contributing to the development 0 f vo luntary stanciaras that will eliminate the necessity for development or maintenance of separate Government standards. ~ 5 ~ Agency representatives serving as members of standards -deve ~ aping groups should parti cipate acts ire ~ y and on a basis of equality winch priorate sector representat~ ves. In doing so, agency representatives should not seek to dominate such group s . Active parti cipati on i s intended to inc lude 'ul ~ irt~o'vement in discussions and technical ciebates, registering o' opinions and, if selected, serving as chairpersons or in other official capacities . Agency representatives may vote, in accordance wi th the procedures of the vo luntary standards body, at each stage of standards development, unless specifically prohibi ted from cloing so by law or their agencies . ~ 6 ~ The number of individual agency participants in a giver. vo luntary standards active ty should be kept to he minimum required for effective presentation of the various program, technical, or other concerns of Federal agencies. ~ 7 ~ Lee providing of Agency support to a voluntary standarcis activity shouic! be limited to that which is clearly i;: furtheranc e 0 f an agency ' s mi s si on and" re spons ibi li ty . Norma ~ i y, the total amount of Fec~eral support should be no greater t-han that of se' private sector participants ire that activity except when it is in the direct and predominant interest of tile Government to Deere fop a stanciard or Levi si on thereto and its development appears unliXe' y in the absence of such support. T~.e form of agency support, s~j ect to legal and budgetary authority, may zinc dude: (a) Direct financial support; e. g., grants, sus gaining memberships, anc! contracts; (b) Administrative support; e. g., trade: costs, hosting of meetings, and secretary al functions; (No. A-~19 34

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(c) Technical support; e.g., cooperative testing for standards evaluation arid participation of agency persorme' in the activi ties of standards-developing groups; and (~) Joint planning with voluntary stewards bodies to facilitate a coordinates! effort in identifying and developing needed standards. ~ E3 ~ Participation by agency representatives in the policymaking process of voluntary standards bodies, in accordance with the procedures of Chose bodies, is encouraged -- particularly in matters such as es tarnishing priorities, developing procedures for preparing, reviewing, a2:c1 approving standards, and creating standards-de~reloping groups. In order to maintain Ache private, nongovernmental nature of such bodies, nowe~rer, agency representatives should refrain from decisionma3 OCR for page 29
con. ained herein ~ by al ~ aff ected considered; and That mechanism shall provide for participation agenc i e s and ensure hat =ei ~ Hi ewe are (3) Report to the Office of Management and Budget concerning implementation of this Circular. b. Lee heads of agencies concerned winch standards will: (1) Implement the policy in paragraph 6 of this Circular in accordance with the policy guidelines i2: paragraph 7 we t-hin 120 days of issuance; , ( 2 ) Estab ~ i sh procedure s to erasure that agency representatives participa~cing in voluntary standards bodies and standards-developing groups wi 11, to the extent pa ssible, ascertain the views of the agency on matters of paramount interest and will, as a minimum, express views that are not inc onsi stent o r in cony li at wi ~ e stab li shed agency hi ews; (3) Endeavor, when two or more agencies participate in a given vo lurltary standards body or standards-de~reloping. group, to coordinate their views on matters of paramount importance so as to present, whenever feasible, a single, unified position. ~ 4) Cooperate with the Secretary in carrying out his responsibilities under Tunis Circular; and (5) Consult with the Secretary, as necessary, in Ate development and issuance of, internal agency procedures and guidance implementing this Ci ran l ar ~ and submi ~ J in response to the request of the Secretary, summary reports on the status of agency interaction with voluntary standards bodies. 9. Reporting Retirements. Three years from -~he date . of issuance of this Circular, and each bird year thereafter, the Secretary wi ll submit to the Office of Management and Budget a bri ef, summary report on the status of agency interact) on wi th voluntary standards bodies . As a minimum, the report wi ll include Ache following information: a. Lee nature and extent of agency participation in the development and utilization of voluntary standards; and b. An evaluation of he effectiveness of the policy promulgated in =0 s Circular and recomsnendati ons for change . (No. A-9 36

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100 Po l: cut Review. The policy contained in this Ctra:~= ball be reviewed for effectiveness by =e Office of Management and Budget - -~e years fro. be date of i.88U~C.o' il. Inauiries. For if cos~cen~sts t~4 s Circular, contact =e Off~ca oaf! Management and Budget, Office of Federal Procurement Policy, telephone 2~27395-720?. W/'~ Director (No. A-119 ) 37

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~- V.S. Ocparsment of Justice Antitn~st Div~on Of Ale of ran ~ ester ~ pro G - I W - narrow O. C. 20530 JON 2 ~ 1982 Mr. Donald E. Sowle Administrator for Federal . . .. . Pr ocu: emen. Pol i cy Of f i ce of Management and Budget Washington, D . C . 20 50 3 Dear Mr . Sow1 e: . am writing to express the views of the Department of Justice on competition policy issues raised by the Revised OMB Circular No. A-ll9, Pederal participation in the Development and Use of i: Voluntary Standards. published 'or comment in the Pederal Register on Apr il 2O, 1982 ( 47 Fed. Reg. 16, 919 J . In our comments on previous drafts of the Ci Ocular, dated December 26, 1916 and June is, 1978, we have supported a policy of federal adoption of privately developed standards when appropriate. Through part icipation in, and support for, private standards making activities, agencies may benefit greatly from private expertise and will avoid the wasteful dupl iced ion of cost and effort involved in developing their own in-house standards. The Department of ~ ustice is not opposed to the policy annour~ced in Revised OMB Circular A-~}9, which would eliminate the rigid due process. precondi~ ion to federal participation in private standards activities. Such a precondition is overly restrictive, since as a practice' spatter federal agencies will often be required to adopt the standards developed regardless of federal participation in their development . Thus, in our view, the better solution is to participate in standards setting bodies and work within them to assure that appropr late procedu. es are adopted ~ The Department bel ieves that federal participants should encourage the adoption of procedur es to foster access to standard setting ac"i vi t i es and t r ansPa rencY i n such activities. Such procedures facilitate the development of standards acceptable to the entire affected industry as well as to consumers. In particular, notice and opportunity for comment help assure that standards will be based on adequate information as to their utility and consequences. Moreover, it is especially important that performance criteria be given a prominent, perhaps predominate, place in any standards activity. Federal agency representatives, therefore, should advocate, as strongly as possible, procedures designed to assure that ~ broad range of information ~ s solicited, an- that performance criteria are central element. of the resulting so andards . In addition to the practical advantages of open standards proceedings, such. safeguards would mit~qa~e the Substantial anticompetitive potential inherent in private standards groups.. The importance of assuring adeciu~-e consideration of com.?et:-ion in the work of private standards bodies was noted recently by the Supreme Court in American Societv of Mechanical cncineers' Inc. v. ~dy~rolevel Coro. Eve case involved a product standard - whic.h had been ado~ted i.n 46 states and ail but one of the Canadian provinces . We Court observed that organ.2at ions creating such standards could be arise with opportunities for anticompeti-:ve activity. ~ Federal agencies ought to stro.~ls'y encourage these private groups to ensure considered ion of ail relevant viewpoints and interests inc. uding those of consumers, and potential or existing indust.v participants. 38

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This country's international obligations and policy, as expressed in -he Standards Code negotiated during the Tokyo Round of the Multilateral Trade Negotiations, see the Agreement on Technical Barriers to Trade, codified at 19 U.S.C.A. 2S31 et sec. ( 1980 ), provide anoebe- important reason for federal agency participants to encourage the adoption of open procedures for priorate standards groups. Shis Code, approved by Congress as well as by our leading trading partners, seeks to prevent the creation of product standards which discriminate against import competition. St requires central governmental bodies to provide notice end opportunity to comment in the it own standards maksog activities, and encourages qo~rernments to take reasonable measures to ensure that non-governmetal bodies provide similar protection. Sphere the federal government is in f act involved in the private group, the obligations of the Standards Code would appear even stronger . Open procedures, specif locally adequate notice and opportunity to cogent, would further the ob jectives of the Standards Code, and would substantially reduce the possibility that discriminatory, anticompetitive standards will be developed. The Circular would encourage use of voluntary standards f or regulatory and other purposes. Although we applaud thus expansion of the scope of the Circular, we believe that broadened federal use of pr ivately developed standards should be accompanied with broad federal awareness of the practical and competitive advantages of industry-wide access to private standards bodies. Such access is an asset to federal participation in private standards activities, but it is also of great importance when federal agencies, without participation in the process, merely adopt standards for procurement or egul story use . As we indicated in our previous comments, private activity is not, by virtue of governmental participation or approval, shielded from the ant~t:ust laws. Federal agency participation in ~ standards body, however, may imply federal approval of the process and of the resulting standard, and perhaps lead p: ivate participants to become lax in their own anti~crust scrutiny. To dispel any false impressions, federal agency representatives should inform private participants that federal participation does not remove antitrust concerns, as well as advocate that appropriate procedures be employed in the standards proceedings. Sincerely yours, Ronald G. Carr Acting Assistant Attorney Gener ~1 Antitrust Division 39

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4!~96 Feteral Rstcr / Cot. 47. tYo. 211 / Bonnily. November 1. 1962 / tYc~tic~ OFFICE OF IdANAGE1dENT ADO RU== issuance of Clrcular Mc, A-110 "federal Pa~kipation in me Development and Use of Vodunta~ Standards. agency: Office of!.tanagement and Budget. McCoy: Final Issuance of 0.~1B Circular .N'a. A-119. Federal Participation in the Development and Use of Voluntary' Star.dards. . . Queasy: This ORB Circular provides policy and administrative guidance to Federal agencies on using voluntary standards for procurement and regulatory purposes. on participating with private sector organizations to develop such standards. and coordinating Executive Branch participation in the development of voluntary standards. Implementation of this Circular is expected to result in reduced costs to the Go~res~nment in developing and maintaining standards for produces systems and Se - !C8S. EF7E~YE Dam This Circular. which supersedes ORB Circular No. A-119 dated January 1~.1980. is effective upon publication. FOR ~ 1 David F. Balcer. Office of Federal Procurement Policy. Office of Management and Budget. Washington, DC 20503 (2021395~72137. U'~~Tan, '~fo~anoa: On April 21. S982. tl~e Office of Management and Budget published a draft Circular. ~ub~cet as above. for a ~day period of public and agency comment. Comments were rewired from more than 120 individuals and organizations. including Federal agencies. business fiend. industry associations, professional groups and private citizens. There follows a summary of the ma for comments grouped by subject and a response to each including a brief description of changes made as a result of the comments. Many other changes of a less significant character were made to increase clarity. simplicity. precision and reducibility. and to reduce the burdens of compliance as much as possible. .~. Procedural Critena Impased on Standards Developed Com.'nent: Several commenters objected to ORB s deletion of specific procedural criteria which the previous version of the Circular imposed on `.,oluntar, standards bodies as a precondition to Federal participation. They argued that such criter~a- intended to increase public participation and openness would help to minimize the potential for anti-tnsst activities. Other commenters suggested the t while such procedures should not be mandatorily imposed. OMB should instinct agencies to encourage private standards developers to follow such procedure. Response: With regard to tise inciusson of procedural criteria and their mandatory smpositian on standard teveIopers. we have concluded that imposition of the mandatory procedures contained in the previous edition of the Circular is inappropriate. burdensome and costly and that the question of imposing such mtena is peripheral to the fundamental aims of the Circular. We do agree that. as with any human endeavor, the voluntary standards development process is vulnerable to abuse. Consequently. we have cautioned Federal agencies to beware of such potential (Pare. 7). We have also provided guidance to agencies in the form of a letter from the Department of Justice da ted June 22~1982. which discusses suggested agency approaches to the question of public participation in private sector standards development. 40 S- ~~ - A~ Comment: Some commented suggested that the Circular should be limited to procurement applications. and that Federal agendas should not be require to use voluntary standards for regulatory purposes. ~me commentere suggested. in addition. that the Circadian should not apply to ' 'dependent regulatory agencies'. Response: We believe the benefits to be derived from the procurement use of standards are equally valid for regulatory application~particulariy the benefits of assunng private sector input into Federal regulatory activities while reducing the potential for duplicating existing. adequate voluntary standards with Govemment standards. With regard to the second concur:. the Circular does not "require Federal agencies to use voluntary standards for regulatory purposes. It establishes a policy preferenes in that regard but leaves to the agencies. themselves. the decision as to whether to adopt a given voluntary standard for ~ specific Federal regulatory purpose. (The legal requirements associated with such adoption. Such as those of the Admini~trat',re Procedures Act. will. of course. continue to apply.) We believe such an approach is entire!, appropriate with respect to independent reguia tom agencies as win the rest of the Exe~t',re Branch. C Role of the I~partment of ~e~ Comment: Several commented objected to the xqu~rements that the Department of Commerce maintain listings of (1) voluntary and Govemment standards. (21 voluntary standards bodies. and (31 those standards organizations with which Federal agencies interaction the Mounds that this would result in extensive and c~ostI, reporting -acquirements. Other commenters suggested that the agency re?crting requirements contained in He Grcular were, themselves. o berm burdensome. Response: We agree. The requirements to maintain various listings have been eliminated. Ate pro~,isians dealing with reports on agency implementation of the Circular have been revised to require that reports be summary. as opposed to detailed. in nature. D. Voluntary l~isputc Resolution Seance Comment: Some cornmenters objected to our deletion of the requirement that the Department of Commerce establish a progr". .- "bake available a '~oluntar~r dispute resolution sewtce to handle precedtlral complaints brought by

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F#~1 3ister ~ Vo1. 47, Eta 211 1 Mday. November 1.1962 / Notices 49497 detected pestles against Thy ebntsr~ - ice. T - e cs~ent~ ~~stm1 mat But ~ ~nism Id Antic an imperUal r - arm of resolving Intern dispute - Bout costly .h, litigation. Response Whic we tom co pociff= ~ ~e ~ut~tuntive mom of su~ ~ Fund arc ~ " - led ~t He "q~t to - publish such ~ Ice cot ~ appropnate dot for . Act. C~. Aim. M=] Ad. ~ I. candid" At su~ ~ ~" as t! ~t}on of the m0~sm ~ dewy penpEcr~ ~ ~e policy Bum dent etch ~ the C~lar. however. - ~ arc "it" to Federal pertia - doe development "d we of ohms ~- e F~ ~i~ Comment Many mmment~ suggested Mat Me promaiom of Tic C~er dot r - Id "encic' to coordinate Weir news "d exam ~ Arc Federe] position ~ pnvete For standards development accedes we" "nectary "d unwor~ble~nd mat establishment of ~ m - anism to achieve these popover would be Idly "d lead to lengthy delays in ~e standards development process. Response: We continue to believe that agencies should cndesvor to coordinate their~n~ve Ed present Isle Federal positions in matte" of perunount f~pOnance. We ag"e, boweves, Eat the uiremcst to do so in all sud: fs~stan~x' is urge "d cord had to b~esu=atic delay'. Consequently. we have el~at" the requirement that Feder~ posido" must ~ dc~elopet in all instances, as well ~e those prounion wt~ic}s word have Lund the Sentry of Coin to appoint ~ ' ~~d ' agency when agsrements as to the manure of He Govenment'. position ~ on Even issue. We candle to capped ~nq representatives to m~:e ~ nssonable effort to present ~ Angle Federal] position relles~sre of the publle latent ~ Otter OF "ramo~t latent is dose standards Into whesem hao or mo" "es~c:= pate. coca Act Deputy Ins D~or,hor 0~ ~ ~ At OPTIC. of "Q~'~! Mu - t Boa ~ :~ _= ~ Cede of ~~ D Permian Ed ^g~ br Ma ~11~ ~~n1 Alit - Dc_t~ of V~ ~- ~d - Em ~_~ he ~i" tome Bohr ~ ~119 - - ~D" ~ Ann h wfUL up ~ ~ y~uc~ of: peyote ~t Cam ~ to c~e ~ may. s364~ A. a~ bard sepec2 Cow. ~ ~~ to - ~ ponddal ~ ~ d~iopl~t ~ . Ate ~ - _. To knead f ~ imp It. - ~' ~ hat - . - ~ ~s peg ~ the ~ias~tsd" of the ~ly as 't bath to Ding - ~ prize - ~ Ape ~ - Cloy and t~ ~ ~0~ w" At Mice loaf_' ABLE Amp, ~~-~ To ~ ~~ HISxca~dw D_ ~1~ - D~Q~' ~ U" Vow _J - t. Auk ~ Bar Snuff pony Amok ~ "~e ~ - ~ - - 'h - Any Ida Bins it No "tablleLce policy to ~ folto_by ~~~~ pseudo ~ adopts IS vo~"ry r~ndard~ ~ R - citric his Car ~de, ORB C~l8, I ~119. Its 1~ 17. - 111 wbi~ ~ Am. a Tic - and mar Gad I involve produce or arm duet At me~ reliable And Any Rich Ida ante ~ a~p~ble for the It's purp<7~. are a~raiteble private "l - 0 - ~ ~~. GEscort pondFort ~ ? ted activist` - of t - # Store Bill " ~~ ~ ~ffff ~ Oblige a_ - ' ~ s - Al adoption of - ~~" Undo _r - ~61e ~ ~pp~p~t., ~ - tee ~e mat ~ ~. G@V6~' ~ - 61~ in ~ Am. bp~don of such ~rde alharden the alley of rely Moo the privets ~ So apply Is ~ [or pods "d Icy ~ ~ - ~ 0~ Cb~ Ho. ~7 `^ppli~`li~. ~ ~ polio It'd 4~ p~=peum ~ sol - Try acid - tin u~e "d ~ff~L but ~ to alumnus ~~d a pedant to trades "d Later - ~1 d~set5 - Mesas. D finite ~ wed 1~ this CLAIM - Nancy Rifler rife to ~ - - entry-] mesm say ~~e Jeper~a~t. h~dependent ammo ark ~~ O~=, ~D", IVY - tom or~oll" corporation or otb - > - Element of the F~enl Unrent audio regulatory Ion or - Act. 1' sot Ids He Misled" ~ Modal Fax G:waose~t. 41 b. Whew ~~s ~ paid sct of Item ~ "qmr~ent' c~cer~d W=iti" of tan; classification of a_: ~~of Heeds: ecificat~ d ~A. =~tenals. Afro. Dwight. ~ ~nti=5: eeD~~ of Guilty Ed Unity ire Emus I. produce. Stems. pow: ~ Titian of fit Aunt of Be. ~ Kohl .~ ~tablished - cay ~ preen Sector bodies and are mingle for ~ ~ ~ "sson or Ionized - . pHvete or so~remmental. the clu~ But ~ Only road to Pastry In as ~11 as Now ED bet does not is de Paris s~ - of Paul amduct. dtstional codes of cliticstrite Horde of ink Idol ~ or standards ~~t~ ~ bow. such n those contained in tot United S~t" P~copcis and ube Het~ F~uLuy. ~ Cam - d ~ 21 U5c USE. ~ Aberrant 'berm Rude Aims "entry nadirs and ~fi~d~ ~ we31~ F - Sol and Military s_ "d Edifications. ~ MaJuna2ry s~Wick ~ private mar Iffy ~ mudti~tione1 "paizeffon~ as nonprofit p~doDa Bluing "bastions. Offal ~ tedmical ~:ietscs. - Stay or Bum "d rosined test hbo~ton~t pan. develop. cssabli~h. or Isle voluntary landaus. LS=ndard ~e~relopin~ groups a~ admitted - ad. ~ try oar pane pall ~i~si~ of ~luntsty s~n~rd. bodies. "tsb - - l ~ sum ~~s for ~e prose of c1~ aim. or re~ne~n' Standards. ad which ~ bout by ~ aqua of Aim. ~ Adoption ~ - u tile "e of the latest - don of a - angry '~rJ in whole. in pert. or ~ ref~ for p~cmcnt purposes "d the imp - Jon of the latest option of ~ Busboy standard in whole. in prL or by ref~cr sol re~ulation(~). A. doe ens ~e S~tsry of Cat or tat Se~tary'r designee. a mica. It ~ ~ poll" of the Federal Grant ~ Its procumbent end Storer acUnti" to: ~ Fly on volunt~r,~ storm both Otis "d mt~tionel, whenever Edible ~ Existent with law and Oblation p~rsusat to law: ~ DIG - te ~ volts Mondays hem "teen such p~cipation i. in the Relic ~temt "d is cow - table with Acmes' Onions sutured - . pnontice. and t mourn "d c C~di - be Agency perdapation In Artery standers Dies ~ test (1J he Noel ~ec21we we is mode of agency tenure ~ repre~ntetives: and ~21 the earsed ~ such representeti~c~ are ~ the public interest "~ as ~ mining. do sot afflict with the A and cstshl~~hed s of ~ 4 - dew 7. Policy Cwdcli~. ~ Inciting the pi "taUlat~td ~ this Circular, a8encic' should rise~ He Pities contribution, of Ids d~elop=ent and r - Ad cti~tics.

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4~ Feds=! Rapt - r ~ Vol. 47. No. 2~1 / Monday. November 1. t~2 / b1oti~ , . Len p~peri, conauctr~i. ,'andBn`s ~eveiopmcnt con incxcse proaucssvity and esfiuency in industry. expand apportun~ties for ~ n ten's tionel trade. con - ~e resounds. and improve health and safety. It also must be tcc~zed, however. that these BCOYitlC~ t improperly cs~nducs~ can supped free and fair cornpetit~on. imp - e innovation and t~nica1 ps`~ exclude cafes and As =naive pleura or otherwise adver~iy effect ~de. commerce. hesith ~ "pity. F account fossil ~ taicn of the usspect on the economy. appiicat~le F - erel Ia - a. policica and national o~je~iY~ including for example. laws and regulattone r~istsng to antitrust. nations) Runty. Sail busyness product safety. environment. t~nolo~cal development. and conflicts of interact. it 'hould also be noted howeYer. toes the prov'ssom of his Consular are Intended for internal management prepares only and are :so' intended to (2) Bate daisy in the 6mir.~.tire process (21 p=Yioe new Pumas for jackal review. or t33 Q8tC legal right enforceable against agencies or their os~er~ The following policy guideline err provid" to assist and govem i~.Dle~nentation of the policy cnuncsat~ in pa.-agrapn a. Defiance on Voluntary S`ondo~~. (I ~ Voiun~ary standards that will Genre acenmes' purposes and are consistent with applicable laws and relations should be adopted and Id by Fedemi agene~es in tine ~nte=sts of greater economy and ef~cicncy. union they are spec:ficaily prohibited by law mom doing sa. (2) Vciuntary standards should be given preference over non-mandatory Gas ern~nent Tandy uncles use of such voluntary standards would adYc"ei,Y awes perfonnaner or =~t~~e co=~titiO~ or Zinc Aver ~ign~':=nt disadvantaged A,~nci" responsible for deveiop~ng en~ent standards should Anew their exacts standa~ at least every five years Ad ca~s=1 dose for which an adequate and appropriate voluntary standard con be =estitute~ (37 In adopting and using Yoiunter,' stacdard`; presence should be Even to those boxy on performance cntena when such csstena may ~~*onably be used in lieu of design. matenaL or construction cr:tena. (at Volunt;., standards adopted by F - coal agencies should be referenced ailing with Their datce of i=~sancc and sources of ava`}aoiiity. in appracnate publications Baton Been. and Fiats 2n-40u" dca:m~cnt~ Sums adoption snould take alto a~t Ose requirements of cop~stg.~t and at~scr similar ~tnctsOns. (Gil Agecacs should not be innib''ed. it within their ssan~tory authonnes. from developing and using Gavernmer,' standards u2 the client that voluntary standards bodies cannot or do nes develop a nced~ acceptaolc staRdard in a timeiv .rashian. .`Sor should the poling contained in this Gn:uiar be concord to commit any agent so the we of a voluntary standard which. after due c::ru~derat~on. i.. in use opinion. inadequate. does not meet St8IUtO~ Arena. or ~s ether - " mapprognate. b. Par.~'c~potion in Foundry Scandals Bodies. (it) Pan,=canon by =~wiedgeacie agency employ - s ~n ~e standard. acn~nt:rs of voluntary '=~sr~ ~i" a~ . devetop~ng Bum Amid be setlveiy enco~ - end p~" ~ Fancy o~ic~ls when c3~sutent win Is Lions of pan~pi, ah. t"} ~ Deploy Who, 81 ~Y8~=t aspen - . Anticipate ~ standard activities Of Yalus~ta~ '~ - sew Mice and 'tandem daveiap~ Dupe should ~ ~ as ~p~sfically au~ a,8 me xp=senlstlvea (31 Nancy pa~apat:on use Yci=~ary stander ~i" and ~t~r~ - retaping Sups does "ot. of itchy. connote Honey a~emcat with or endor - Bent of. der:isions ream - t by wash ~die' Ad g=ups or of tan~rds approved and published by voi~tary Storm bodice. (41 Participation by agency representatives ~ttould ~ si= - i at contnbut~ng to thc dcvaIapment of Yaluntary standards that will eliminate the necmuty far development or maintenance of Operate G~vemment Stanton (S] AS - q representatives "r~nng as members of 'tandard~developu,' groups Amid participate actively and on a basis of cquslity win private sector representatives. En doing x,. agency representatives should co' leek to dominate such groups. Active panicipaticn is intended to include ~11 in~roivement in discussions and technical dchases. reg~-nng of ap~n:ons and. if seleesed. herring as chairpersons or in over offal capacities. Agency repre~cntat~ves may vote. in accordance with Ike procedures of rise voluntary standards body at each Stage of standards d~Yelopmerst. Curs. ~pemficaily prohibited from doing so by i~w or their agencies. is; He number of indi..d=! ager.~3 panictpants in a Even voluntary standard. activity should be kept to talc m~ni::2u;n required for eftec~i~re presentation of the va3icus program. technical. or other conch of Federal agencies. (7] The providing of Ag=ey support to a voluntary Than acdvity should be limited to that which is cIseriy in .f'=tserance al an Anne ~ mission asked r=P0n5itiiitS- [Yarmally, the tots] Count of Pcdesal support singed be no greater the that of ail private seescr pa~mpants in Bat anti - `y except when it is in the dire asp] pr~omin~t intent of Tic Pent to develop a standard or renown thereto and its deYeiopmm~t appean unlikely in the absent of BUG} BUD - = ~8 for al ~en=- Nippon. subject to legal alla budgetary authority. may LnClU~= (aj First financial support: c. grants entraining 3~besship~ and cs~ntrac2= (b) Administrative support; A... =` al coast. noting of meetings. and sepia' functto=: {c) Tec-hnical support: ..g~ ccocerasi~c testing for stand evai~ation and ,.nic;?~:~on of agency parsonne1 in He activities of ~tandards~eveioping groups and (d] JOLTS planning with voluntary standards bodies to facilitate ~ coordinated eHort In ident~f~nng 2nd developing needed Wanda. (83 Participat{on by awes: :~ps~sentatives in the polic=.aking process of Yolunsa~y t~nda.~s ~d;~= in a~o~=s" way the 42 ply at t2~ -. as c~~eDU~~8~ pall ~ sty ~ as Elena pronto - ~~ Ids for pi nil ~ a~ .~ a~ t=#~~ tan~iop~n' 8~- nongove~ :=t~ of ~ ~i~ however. at rent - ~2 - d Ail. from ~iatsn~ki" ic~oiv~' In the m~ day- EMU pat Ot llt trim a. "i~ ~ ~ - 0~ a~ employed Tint of Gaff "~ - and ac~in~trat~ve polity. (at Big Cinder ~ At proncedone canceling the ia2~ opcra~g ply that may be appli=dic to Yol~"ry Tan bodies ~usc of the xia~ionan~ps to a - Are Unix dais Cis=~r. ,\gene.i" shoddy ho - ~es. carrf~ly A: - ides what laws or off by apply ~ papillar instance ~~ e of Ewe =la~an~hipe. For ex~mpic toe retauanships may invoice Tic Fedeni Antior Clatter Act. as amended (S 1J'5.C App. It or a pro~nsion of an aurora statute far ~ ply agency. Agencies are Bet able to detcrminc what laws and Alicia uld gcvcm partner rclatiosunips a~ to Anna the cxten2 tO whim competition may bc askance and cost~e~ective~s i~maxd. Quinine relating to anti-~t "npiications of ~~h tcIationanips should be al - :D the Atton2~r G~nc=L R~spons`diiit~cs. a. The Sell win: tat) Cite And foster executive orb impiemcnt~tion of ~e policy ~ para~pl of this Career. ~;:d ~y provide a~n~strative gu~d~# tO assut agenac~ in unpicment:ng Graph fib. (S} of this Circle., (21 ~lub an ssm=~en~r c~tatrv. mechanism to adding the &~=t;try and agency beam us implc~c~ting the policy contained Chin. But moaners snail p=`nde for partimpebon by ~ affected agencm and cn~ that Weir knows are considers: and . t3} Re fort to the t=# of h{anagement AL Budget con~x~ ~picmcntanon of this Ceil. b. Be neat of age~c.es c:~ocesmed wish Wanda win: 11) ~m;'2sr:ent Me policy id paragraph ~ of this Circular in 2~rdan# with He colicky g~sdeiines in pars graph, wow 1= days of ;seuanca: (2) Establish p:ocedurm to Adds that arenas xpres-otatives postdating in voluntary standards bodied and standards developing groups w6L to the extent possible ascertain the views of Me agony on Otto of paramount interims and Agile as a rnin~m~ express theses Hat are Dot Lneor.sistent or in Conklin with es:aolisoed agents News: (31 ndesYor when To or more avenues par1t~c:pate in a given voluntary Lands body o" ~tan~d~d~Yeloping glum. to coordinate their views on 3:atters of paramount importance so as to prmenL whenever feasible. ~ single unified position (4) Cooperate with tile Scrotal ~ carrying out his =spansib~l~6es under Isis Circular: and

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F - en' Register ~ Vol. 47. No. 2~: / Monday. Ncven~ I. :~382 J .~Joti~ 4~ - IS1 (:onsult w~th the Secrete - . as neceses~. In the deve{opmcnt and '.su;`nce of. ~ntemal agency precede and guidance impletnentsn' this Civet. . - up. In respon" lo thc ~4ucst of It's S~te~y, gummier Arts an the status of ''en`;y interaction with voluntary ~tanderds ~es. 9. Reposing R.qwremen" ~ yeen from the dbte of issuance of this Circular. and each thin year themeftrt. ~e S~t~ mU submit t: the Office of Fragment and Budget ~ brief unwary repon ~ ~e status of agency u~tomes~on with volunts~ tan~rds Dim ~ ~ miff ~ ram Bill indude the tollomn' u..fonz - lion. a. ~e natwe and content of awns pen~apetion :n the development "d utIii~n~ of Al - Item Tandy and b. An evaluation of the effec~tivenese of the policy promulgated in this Circular and mcom~t~ons of chew. IQ Policy Re~r'ew. Ant policy contend is' tb~s t:ircu1~r Shall be reviewed for Electives - s by ~e Office of!^ns'ement and At them years from the date of itch. 11. l~quin~. For ~ntor...atian concerning Flu Ci~r. contact the Office of Management and Budget. Office of Pcdeml P=cu~ment Polic,. telephone 202J3~. David A. Stockman. D`~ctcr. Dot of lusuce Ant trust Oil soon Office of the Ass~s~nt Attorney Cenc.=l Tune as. 19= Mr. Donald E Sowie. Ad.rssnis~tor.for F=feroJ ~%c:~rement Away Office of h(anagement and Budget Washington. O.C 20503 Dest Fir. Sowie I am writing to express the views of the Department of lust~cc on competition policy issues rat - by the Cycled 0 - Circler .~. A-t19. Federal Paniapation In the l~evelopment and Use of Valw~tary Standards published for comment ~ the Federal R - tar on April 2. 1982 (47 Fed Reg. 16 ~9~. In on commend on previous draft. of the Circular. dated Dceember ~ 1978 and tune 13. 19?& we have supported a policy of federal adoption of privately developed standards when appropmate. Enough participation in. and support for. private standards malting activities. agencies may benefit greatly from pirate expertise and will avoid the wasteful duplication of cost and effort unsolved in developing their own in-house standards. Tic Department of Justice is not opposed to the policy announced in Remend ORB Cire~lar A-~19. which would eliminate the rigid due process precondition to federal panic~pation In private ssanda~ activities. Such a precondition is overly restnctive. since as a practical matter fecem! agencies Ail often be required to adopt the standards developed rrgardiess of federal participation in their dcYelopmenL Auk in our view. the better solution is to pcmcspate in standards setting bodies and work within them to assure that appropnate pn~durm a" adopted. One t~pertment bell - - that focal per~~cspense should encoded the adoption of p~u~ to foster ache" to ."nderd "Stan' activity a" tr;.nspe~c~r ~ such act Such precedes f~it~te Me development of 'tenderde ac~ptshle to the enstre affcet" industry as Cecil as to co~ In p~tI~ar. ",t~cc and opportunity for comment help Inure shot Tandy will ~ bawd on adequate infon~tion ~ '. then utility a~ con~q~nca~ Threader. it is - ~;.r important that p~fonnuu:e Intend be UYcn ~ protninent. peeps p - ..,n~inant. place in any ~tanda~ac2~v.ty. F - ~1 agency repr~ntativ - . therefore. should advocate. as strongly as possible. procedure deigned to ase~ that ~ broad range of info~'on is foliated. and that performance casens are central element. Of the resulting standards. In "diction to the practical adventag" of open stsederds proceedings. such "forwards would mitigate the ~~st;'ntial anticompetitive potential inherent in p~,iY8t~ standards Cups. We importance of assuring adequate conside"ticn of compe!tision in the work of pnvate notanda Idles was noted r~ntl~r by the Supseme Court in American Society o{Mech~nical Engineers. Inn v. Hydroleve~ Coop. The case involved ;~ pmduct etant~rd which had been adopted in states and all best one of He C~nad'an provinces. She Count oose~ed that organizations c"ating suck standards could be -oft with oppon='sies tor anticompetitive activity Federal agencies aught to strongly encourage those private oups.to ensure consideration of all relevant viewpoints a" interests Including those of consumers. and potential or emoting Inductor panic2oants. This country ~ international obligations and policy. as expressed in tise Standards Code negotiated during the Tokyo Round of ttsc hSult~lateml Trade Negotiations. see the Agreement on Technical Same" to Trade. codified at 19 U.S.CA. 2531 et seq. lt9~1. provide another important Reagan for federal agency participants to encourage the adoption of open procedures for private standards groups. This Code. approved by Congrces as well as by our leading triadic parmem. seeks to prevent the cation of product standards which discriminate against import competition. It r~u~s central governmental bodies to prav;te notice and opportunity to comment in their own standards Maytag activities. and encourages ~ov~nfnents to talcs reasonable measures to ensure that non~oven~mcnta1 bodies provide similar protection. Where the federal go~re~nment is in fact involved in the private group. the obligations of the Standards Cddc would appear even stronger. Open procedures, speesficallv adequate notice and opportunity to comment. would further the objectives of the Standards Code. and would s~sbstansia}ly reduce the possibility that disenm~natory. anticompetit',re standards wit! be de`~Iop~ The Circular would encourage use of voluntary Standards for regulatory and other purposes. Although we applaud this expansion of the Mope of the Circular. we belicYe that broadened federal ux of privately, developed stands should be 43 arm- - panted with Ad t - All s - Knees of the pnc'~l and c~pesst'vc advance - o! industry - ~ - ~ to pave" '"adorn bodies. Such occur ~ an Marc so teder;~i peticipet~on ~ private '=~;tde activities. let It I. ~l" f - at - ~an" when f~nl A. without p~iapatioc. in the ~~, add Wards far p'_' ~ ~t~ we. As we nLcsted ~ our previous con Pyrite 8~lYlt' i. - t ~ Vat - of Lemma p~t~apat~on ar ;Ipp~ral. ~h~cided from the actitn~t laws. F~rel agency p;~nicipation in ~ mends may. however. ~, imply federal' apply of the process and of the multi s"~r~ "d perhaps lead private pemapents to Come tas 's their own antitrust scrutiny. To Vital any film impr - alone f~] Band rep=ntat~ves should u~fo~ pn~st- penic~pacts that .'~cral par~iapetion does Dot remove ant`~t concans. as well as advocate that appro - ate pr~durm be employed in Be stands procaine. Sincerely yours. Ronald C;. Carr. Acting Assistant Attorney Gcner~l. Ar~titn~st O`vision. 11;' ~ ~~'fiL" to-D~ ms ~' _ Cot 31_~ sectJameso EM C - MOON 1 - L - . t27~: 12~1 0~1y Tas Few ll~# hi Inn; Flh9 of ~ A_ October 19. 19eZ Notice is hereby given that Daily Tax Free Income Fund. Ince 100 Pam Avenue. New Yorlc. N.Y. ICON (the "Applicant' I. stunt Eden He Investment Company Act of ~0 ("Act'] as an open ent. diversified. management in~rest=ant company. filed an application on August 6. ~~ and an amendment thereto on October 18. 198Z requesting an order of the Commissiam pursuant to Section qc3 of the Act. exempting Applicant and any additional separate portfolios that may be established by Applicant in the futile=, from the pronouns of Section 2a of the Act and Rules 2a ~ and ~-1 uncles the Act to the extent necessary to permit Applicant to value its assets using the amortized cost method of valuation. All interested persons are refeed to the application on file with the Commission for a statement of the representations contained therein, which am summarized below. Applicant states that it was organized as ~ corporation under the laws o' Maryland on luly 2~ ~~ and Eat it registered under the Act on luly ~ 1 - Z Although it will have initially only one investment portfolio the Baard of

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