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B-164288

Section 406 of the bill authorizes the Secretary of Health, Education, and Welfare to insure mortgages executed by a mortgagor approved by the Secretary. The Department of Housing and Urban Development has responsibility under authority contained in the National Housing Act, for administering a range of mortgage insurance programs. The committee may wish to consider this in deciding whether to assign responsibility for a new mortgage insurance program to the Department of Health, Education, and Welfare.

Sincerely yours,

Deputy Comptroller General

of the United States

The Honorable Harrison A. Williams, Jr., Chairman
Committee on Labor and Public Welfare

United States Senate

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This is in response to your request of March 24, 1972 for the views of this Office on H. R. 8395, the "Rehabilitation Act of 1972."

In testimony before your Committee on May 15, 1972, Kr. Stephen Kurzman, Assistant Secretary for Legislation, Department of Health, Education, and Welfare, indicated certain objections to the bill and favored instead the cnactment of S. 3368, the Administration's "Vocational Rehabilitation Amendments of 1972." While noting that 1.2. 8395 and S. 3368 have similar objectives, Mr. Kurzman indicated in particular the Department's opposition to provisions of H. R. 8395 that would:

authorize special project grants for the
provision of services to individuals with
end-stage renal disease, services which are
basically medical rather than vocational,

- reorient the VR program toward objectives
which are not employment related by
authorizing a separate formula grant
program for services to the severely
handicapped, individuals who are already
eligible and are being served under the
existing VR programs, and

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continue the cumbersome and obsolescent method
of calculating State allotments on the basis
of the authorization rather than actual
appropriations, the procedure prevalent in

Federal programs.

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We concur in the views expressed by HEW and, accordingly, urge enactment of S. 3368 rather than H.R. 8395. ment of S. 3368 would be in accord with the program of the President.

Sincerely,

Wilfred H. Rommel

Assistant Director for
Legislative Reference

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This is in reply to your request for this Department's views on H.R. 8395, "The Rehabilitation Act of 1972," as passed by the House.

The bill would amend the Vocational Rehabilitation Act to extend and revise the authorization of grants to States for vocational rehabilitation services to those with severe disabilities, and for other purposes.

Section 403(c) of Title IV would authorize the Secretary of Health, Education, and Welfare to conduct research, studies, investigations, demonstrations, with respect to architectural, transportation, and other barriers to rehabilitation of the handicapped.

Section 413(a) of Title IV of the bill would establish a National Commission ou Transportation and Housing consisting of the Secretary of Health, Education, and Welfare (or his designee) who shall be Chairman, and not more than fifteen members appointed by the Secretary of Health, Education, and Welfare without regard to civil service laws. In addition, the Secretaries of Housing and Urban Development, Transportation, and Treasury would be members of the Commission.

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With respect to transportation, the Commission would (1) determine to what extent transportation barriers impede mobility of the handicapped and aged handicapped, (2) consider how travel expenses in connection with transportarion to and from work for the handicapped can be met or subsidized (when Transit rystems or need special equipment), (3) deternhư chat is being done to elitante birriers and prevent incorporation in ne of esanded transit systems, and (4) prepare plans and proposals for such further action as necessary to achieve the goals of adequate transportation and housing for the handicapped, including proposals for bringing together in cooperative effort, agencies, organizations, and groups already working towards such goals.

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Inasmuch as H.R. 8395 concerns programs administered by the Department of Health, Education, and Welfare, the Department of Transportation defers to that Department as to the merits of the bill as a whole. However, the Department of Transportation does not believe it would be desirable to appoint a National Commission to deal with transportation for the elderly within the Department of Health, Education, and Welfare. The Department of Transportation has broad responsibility for transportation planning and supports a variety of research and demonstration projects which are designed to meet the specific transportation needs of older Americans. believe that the continued close working relationship between the two Departments (rather than the appointment of a National Commission) is the preferred approach to seeking solutions to the particular transportation problems and needs of the elderly.

The Office of Management and Budget advises that from the standpoint of the Administration's program there is no objection to the submission of this report to your Committee.

We

Sincerely,

ah Lodi

John W. Barnum
General Counsel

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