27 
The costs of this bill fall within budget function 550. 
6. Basis for estimate: Enactment of H.R. 1119*2 would extend the 
National Institutes of Health regulatory and experimental guidelines 
for recombinant DXA research to all public and private recombinant 
DXA activities. Currently, only those activities funded by the NIH 
are covered. The bill also authorizes the creation of a commission for 
the study of research and technology involving genetic manipulation. 
The assumptions made in estimating the authorization levels of H.R. 
11192 were : 
Approximately 200 newly covered laboratories will require 50 
new regulatory inspectors ( authorized for two years) at an aver- 
age wage of $20,700 plus 70 percent for employee benefits, travel 
costs, and administrative expenses (all infiated in outyears by 
CBO ? s federal wage deflator) ; and 
Creation of the study commission for the full 32 months author- 
ized will require 10 members from outside the NIH at the stipu- 
lated GS-18 wage rate ; since there is no precedent for estimating 
periodic increases in salary at this level, no assumption for future 
salary adjustments were made ; an additional 60 percent for travel 
and administrative costs was added and inflated in outyears by 
CBO’s federal wage deflator. 
It is assumed that the estimated authorization levels will be fully 
appropriated at the beginning of each fiscal year. The costs are esti- 
mated on the basis of a current year spendout rate of .92 and a prior 
year balance spendout rate of .08. 
While HR. 11192 also provides for the imposition of penalties on 
laboratories with violations, HEW estimates that few, if any, penalties 
will be assessed. 
7. Estimate comparison : None. 
8. Previous CBO estimate: On March 23, 1978 CBO prepared a cost 
estimate on H.R. 11192 for the House Committee on Interstate and 
Foreign Co mm erce. The difference between the two estimates is that 
the earlier version of the bill did not specifically terminate the inspec- 
tion program after two years and thus had inspection costs bevond 
1981. 
9. Estimate prepared by : John Nelson. 
10. Estimate approved "by : 
C. G. Nuckols 
(For James L. Blum, 
Assistant Director for Budget Analysis) . 
COST AND BUDGET DATA 
The following is the appropriate cost-of-iegislation data, taken 
directly from Part 1 of this report : 
Although the proposed legislation contains no line-item 
authorization of appropriations, the Department of Health, 
Education, and Welfare estimates that the following costs 
will be incurred by the Department in carrying out the func- 
tions assigned to it by H.R. 11192. 
[Appendix B — 215] 
