26 
is not required for an inspector to carry out his duties under thia 
act, 
1% (e). Conflict of intercut 
This subsection prohibits the Secretary from designating an indi- 
vidual to conduct an inspection of a project involving a recombinant 
DNA activity in which that person is engaged or has a financial 
interest. 
This provision is specifically applicable to members of a biohazards 
committee who may be engaged in a recombinant DNA activity. How- 
ever, it does not prohibit such an individual from inspecting the labora- 
tories pr work of colleagues whose laboratories may be located at the 
same institution or company. It is designed only to avoid any conflict 
of interest in inspections authorized by and conducted under the pro- 
visions of this Act. 
The term “financial interest” as used in this subsection means a 
situation where an individual may stand to profit financially from the 
success of a recombinant I>NA activity, either because he has in- 
vested in a company conducting such an activity or because his em- 
ployment or salary is dependent on the profits or financial gain from 
or funding of such an activity. Thus, a company stockholder could 
not be authorized to inspect that company’s recombinant DNA ac- 
tivities, and a person being paid from a grant to support & recombinant 
DNA project could not be authorized to inspect anything relevant 
to that project. An employee of a company conducting recombinant 
DNA activities could act as an inspector only with respect to projects 
not supported by the company. If questions of doubt arise as to whether 
or 1 not there is a conflict of interest, it is expected that inspections 
will be assigned to individuals for whom no such conflict could exist. 
In the case of university faculty members or Government employees, 
the simple fact, that an individual receives a salary from that univer- 
sity or Government agency which also pays the salaries of others 
conducting recombinant DNA activities, is not to be interpreted as a 
“financial interest” in a recombinant DNA activity, since, presumably, 
his salary would not depend upon the success of any recombinant DNA 
activity (other than his own, should he. happen to be engaged in re- 
combinant DNA work) . 
SECTION 106. EFFECT ON STATE AND ; LOCAp REQUIREMENTS 
106 {a) Federal preemption of State dnd local requirements 
It is the intent of the committee that the recombinant DNA Act 
shoudl provide ai, uniform comprehensive set of safety , regulations 
readily adaptable |to all local situations where recombinant DJNA. ac- 
tivities are, being conducted. Additional, more stringent or duplicate 
State or local regulations are, therefore, considered to bq unnecessary. 
Subsection 106(a) states that any State or local requirements are, in 
effect, preempted by the Recombinant DNA Act. 
;• However, the committee recognizes that it may be impossible to ac- 
curately; anticipate or take into account in advance the nature of every 
situation which could arise involving recombinant DNA. Highly 
unusual situations or those affected by some unique local condition, 
would undoubtedly first come to the attention of tho^e locally involved 
with the activity. 
[Appendix B — 156] 
