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Washington Highlights: May 6, 2005

House Subcommittees Begin Appropriations Mark-ups

The House Appropriations subcommittees on Interior and Homeland Security approved their respective FY 2006 spending bills May 4, signaling the beginning of what promises to be another long appropriations cycle. The appropriations subcommittees must operate under the $843 billion overall discretionary spending ceiling established in the FY 2006 budget resolution (H.Con.Res. 95) that Congress approved April 28 [see Washington Highlights, April 29]. Within this total, both the White House and Congress assume increases for defense, homeland security and international programs, and a cut in overall domestic discretionary spending. This funding is divided among the 10 appropriations subcommittees into what are known as 302(b) allocations. The full House Appropriations Committee is scheduled to give formal approval to its subcommittee allocations May 10 when it meets to consider the Interior and Homeland Security bills. Chairman Jerry Lewis (R-Calif.) released his tentative proposal for the allocations on May 5.

The Labor-HHS-Education subcommittee is tentatively scheduled to mark up its FY 2006 bill June 9, with full committee consideration of the bill taking place the week of June 13. VA funding has been moved to the Military Quality of Life and Veterans Affairs Subcommittee, which is tentatively scheduled to mark up its bill May 12, with full committee action the following week. The Science-State-Justice-Commerce Subcommittee, which now has jurisdiction over the National Science Foundation, reportedly will mark up its bill May 24, with full committee action the week of June 6. All of these schedules are subject to change.

Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

House Committee Passes Legislation Removing Physician Group Limits on Patients Receiving Substance Abuse Treatment

The House Energy and Commerce Committee May 4 passed by voice vote AAMC-endorsed legislation (H.R. 869) removing the current statutory limit on the number of substance abuse patients that may be treated by physician group practices. H.R. 869 was introduced by Rep. Mark Souder (R-Ind.) on Feb. 16. The House Energy and Commerce Health Subcommittee passed the bill on April 27 [see Washington Highlights, April 29].

The 106th Congress passed into law the Drug Addiction Treatment Act (DATA) 2000 to expand treatment options for patients addicted to opiates. A limit of 30 patients per treating physician was included in the legislation to address concerns about potential abuse or diversion of the treatment medications. In addition to the limit per physician, DATA also contained language that imposed a 30- patient cap on group practices as well as

amending the Controlled Substances Act. H.R. 869 clarifies that group practices would not be limited to 30 patients, while still limiting each provider within the group to 30 patients seeking treatment for their drug addictions.

Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Government Relations
ldavisboyle@aamc.org
(202) 828-0526

Federal Court Hears Arguments on EST Patents

The Court of Appeals for the Federal Circuit (CAFC), which oversees patents, May 3 heard arguments from Monsanto Corporation that its patent application on certain Expressed Sequence Tags (ESTs) should not have been rejected by the U.S. Patent and Trademark Office (PTO) for not being useful. The PTO found that the ESTs claimed in the application failed to meet a standard for "credible, substantial, and specific" utility implemented in 2001. The PTO's own Appeals Board later upheld the rejection, and Monsanto thus appealed to the CAFC.

The case, In re Fisher, is a test case for the new utility standard, which the PTO implemented at the urging of the National Institutes of Health, the National Academies, and other research organizations, including the AAMC. Biomedical researchers had sought to stave off a "land rush" of intellectual property claims to bits and pieces of human or other genes, which could entangle later
genomic research and technology. More recently, however, the Fisher case has also come to be seen as
a judicial referendum on the patentability of "research tools" or technologies that are primarily used to advance other research.

Attorney Seth Waxman, representing Monsanto, argued to the three-judge panel that the PTO had erred in supposing that the utility of ESTs depends on knowledge of the characteristics or function of the gene sequences to which the ESTs correspond. He offered examples of other uses for biochemical tags not requiring a knowledge or interest in the corresponding gene sequence. Attorney Stephen Walsh, representing the PTO, defended the heightened standard, arguing that Monsanto's application asserted no specific, "real world" utility for the claimed ESTs. Chief Judge Paul Michel, Judge Randall Rader, and Judge William Curtis Bryson questioned both attorneys at length, particularly the PTO's Walsh, often about hypothetical applications of the standard and the corresponding utility criteria for chemical inventions. Judge Rader specifically asked if the PTO had not "set the bar too high," suggesting that valuable sequence information might go undisclosed and would be retained as trade secrets. Mr. Walsh insisted that DNA fragments require further research and discovery to be useful, comparing EST patent applications to "raffle tickets."

Mr. Waxman, in his rebuttal, noted that Monsanto's claims are intended for agricultural research. He dismissed implications for human medicine, in part because publication of the human genome would render human EST sequences obvious and not patentable. His argument notwithstanding, the AAMC joined Eli Lilly Corporation and others in an amicus brief defending the PTO standard, specifically with respect to circumstances of biomedical research and medicine. The CAFC's decision is expected later this year.

Information:
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488

Perlin Confirmed as VA Under Secretary for Health

The Senate April 28 formally approved the nomination of Jonathan Perlin, M.D., Ph.D., as Under Secretary for Health at the Department of Veterans Affairs. Dr. Perlin has served as Acting Under Secretary for Health since April 2004.