[Senate Hearing 111-489]
[From the U.S. Government Publishing Office]
S. Hrg. 111-489
NOMINATIONS TO THE
DEPARTMENT OF COMMERCE AND
THE CONSUMER PRODUCT SAFETY COMMISSION
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
__________
AUGUST 5, 2009
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
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53-265 WASHINGTON : 2009
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ONE HUNDRED ELEVENTH CONGRESS
FIRST SESSION
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas,
JOHN F. KERRY, Massachusetts Ranking
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California JOHN ENSIGN, Nevada
BILL NELSON, Florida JIM DeMINT, South Carolina
MARIA CANTWELL, Washington JOHN THUNE, South Dakota
FRANK R. LAUTENBERG, New Jersey ROGER F. WICKER, Mississippi
MARK PRYOR, Arkansas JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri DAVID VITTER, Louisiana
AMY KLOBUCHAR, Minnesota SAM BROWNBACK, Kansas
TOM UDALL, New Mexico MEL MARTINEZ, Florida
MARK WARNER, Virginia MIKE JOHANNS, Nebraska
MARK BEGICH, Alaska
Ellen L. Doneski, Staff Director
James Reid, Deputy Staff Director
Bruce H. Andrews, General Counsel
Christine D. Kurth, Republican Staff Director and General Counsel
Brian M. Hendricks, Republican Chief Counsel
C O N T E N T S
----------
Page
Hearing held on August 5, 2009................................... 1
Statement of Senator Pryor....................................... 1
Statement of Senator Hutchison................................... 3
Prepared statement........................................... 3
Statement of Senator Begich...................................... 19
Statement of Senator Thune....................................... 22
Statement of Senator Wicker...................................... 56
Statement of Senator Klobuchar................................... 58
Witnesses
Hon. Mitch McConnell, U.S. Senator from Kentucky................. 4
Dennis F. Hightower, Deputy Secretary-Designate, U.S. Department
of Commerce.................................................... 6
Prepared statement........................................... 8
Biographical information..................................... 10
Robert S. Adler, Commissioner-Designate, U.S. Consumer Product
Safety Commission.............................................. 24
Prepared statement........................................... 26
Biographical information..................................... 28
Hon. Anne M. Northup, Commissioner-Designate, U.S. Consumer
Product Safety Commission...................................... 41
Prepared statement........................................... 43
Biographical information..................................... 45
Appendix
Response to written questions submitted to Dennis F. Hightower
by:
Hon. Frank R. Lautenberg..................................... 63
Hon. Tom Udall............................................... 63
Hon. Kay Bailey Hutchison.................................... 66
Response to written questions submitted to Robert Adler by:
Hon. John D. Rockefeller IV.................................. 67
Hon. Tom Udall............................................... 67
Hon. David Vitter............................................ 69
Response to written questions submitted to Hon. Anne M. Northup
by:
Hon. John D. Rockefeller IV.................................. 69
Hon. Tom Udall............................................... 70
Hon. David Vitter............................................ 71
NOMINATIONS TO THE
DEPARTMENT OF COMMERCE AND THE
CONSUMER PRODUCT SAFETY COMMISSION
----------
WEDNESDAY, AUGUST 5, 2009
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 10 a.m. in room
SR-253, Russell Senate Office Building, Hon. Mark L. Pryor,
presiding.
OPENING STATEMENT OF HON. MARK L. PRYOR,
U.S. SENATOR FROM ARKANSAS
Senator Pryor. I would like to like to call our hearing to
order, and I want to welcome everyone to the Commerce Committee
here today and thank everyone for attending. We are going to
have a few Senators coming and going. This is a nominations
hearing.
The President has nominated Mr. Dennis F. Hightower to be
Deputy Secretary of the Department of Commerce. Mr. Hightower
possesses extensive business management experience after
working for more than 30 years in global marketing,
international management, and strategic planning as the recent
CEO of Europe Online Networks and a former senior executive of
the Walt Disney Company. Mr. Hightower is well qualified to
serve at the Department of Commerce.
In academia and the military, Mr. Hightower also has
excelled. He is a former professor of management at Harvard
Business School and has spoken as a guest lecturer around the
world. He has served on innumerable industry boards of
directors. His dedication to the defense of our country cannot
be overstated. I look forward to hearing his testimony, and I
welcome him to this hearing.
The President has also nominated Mr. Robert Adler and Ms.
Anne Northup to be Commissioners on the Consumer Product Safety
Commission. I want to welcome you both to the Commerce
Committee. I look forward to hearing your testimony.
And I also want to thank Chairman Rockefeller for asking me
to chair this hearing this morning.
The CPSC is a critically important agency over which this
Committee has jurisdiction. I think we all take the agency's
mission very seriously of preventing injuries, saving lives,
and protecting children, in particular. I am confident that the
two nominees before us recognize the vital role this agency
plays in protecting the public from public safety risks. If
confirmed, I expect that both these nominees, these
Commissioners, to execute the CPSC's responsibilities with the
diligence that the American consumer deserves.
Mr. Adler comes to us with much experience and vast
knowledge of the law, product safety, consumer protection, and
the Commission itself. He is a former Attorney Advisor to two
Commissioners at the CPSC, a former Counsel on the House Energy
and Commerce Committee, and a Professor of Legal Studies at the
University of North Carolina. At Chapel Hill, Mr. Adler is the
Luther H. Hodges, Jr. Scholar in Law and Ethics. He also has
served as an Associate Dean of the MBA program and has won many
awards for excellence in teaching. We recognize his expertise
and knowledge, and we welcome his commitment to protecting
consumers.
Ms. Northup has much experience working with Congress and
advocating for children. She represented Kentucky's 3rd
Congressional District in the U.S. House of Representatives for
10 years. She was instrumental in promoting child literacy and
education reform. As a Member of the House, Ms. Northup also
actively promoted adoption legislation. She serves as a member
of the Congressional Coalition on Adoption.
Before her tenure on Capitol Hill, Ms. Northup served in
the Kentucky House of Representatives for 10 years.
We welcome her knowledge of child protection and advocacy.
We know that she will take very seriously the Commission's
responsibility to protect consumers, if confirmed.
For years, the CPSC was a neglected and broken agency,
significantly understaffed, underfunded, and lacking the
authorities to carry out its safety mission. Unsafe and
defective products swarm the marketplace. In 2007 and 2008,
millions of children's toys and other products were recalled
because they were dangerous. The Commission could not
effectively police the marketplace and protect consumers from
harm.
In response to this unacceptable situation, the Congress
acted last year and passed a landmark overhaul of consumer
product safety law. This Committee took a lead role in that,
and I appreciate all my colleagues for their contributions to
making that a very good bill which passed by overwhelming
majorities in both houses. I think the new law will protect
thousands of lives and prevent millions of injuries.
Where there have been some issues with the implementation
of the new law, I believe that the Commission has the
enforcement discretion and the leadership to overcome these
challenges and work through them. We do not want to punish
businesses who comply with the law, but we want to protect
consumers and children from dangerous and defective products.
I am confident that if we confirm Mr. Adler and Ms.
Northup, they will work very hard to resolve any implementation
issues through a common sense approach. I am also confident
that they will do this while promoting the primary mission of
the agency, and that is to protect consumers and keep them
safe.
With that, I would like to turn to our Ranking Member,
Senator Hutchison.
STATEMENT OF HON. KAY BAILEY HUTCHISON,
U.S. SENATOR FROM TEXAS
Senator Hutchison. Well, thank you, Mr. Chairman. I will
not give my opening statement in full, but I would like for it
to be included in the record.
I think you have covered the nominees very well. I think it
is very important that we move expeditiously on all the
nominees, but especially for the Consumer Product Safety
Commission where we have passed a law that should have the full
Commission strength in order to implement the law. I, for one,
believe that we need to look at the status of the law since we
passed it because there have been concerns raised and a
question of whether there is enough flexibility for the
Commission to deal with the sometimes unintended consequences
of the law.
I think it is important that we have the full Commission to
look at it, and I would agree that a common sense approach is
what is needed right now in order to have the best results. And
I think the bipartisanship that we showed in passing that law
was to try to ensure that our consumers are protected.
So with that, I will submit my comments for the record and
just say that I have met with the nominees for the Consumer
Product Safety Commission. I think both of them are very well
qualified, and I look forward to having, I hope, a very
expeditious markup this afternoon in Committee and then be able
to get them confirmed so they can take their seats at the
Commission next week.
Thank you, Mr. Chairman.
[The prepared statement of Senator Hutchison follows:]
Prepared Statement of Hon. Kay Bailey Hutchison, U.S. Senator from
Texas
Thank you, Mr. Chairman, for holding this hearing. And thank you to
the nominees for being here today. I hope that we will be able to get
them through this Committee and on to the full Senate for confirmation
before we recess for August.
I first want to welcome Mr. Hightower, who has been nominated to be
Deputy Secretary of the Department of Commerce. The Commerce Department
has a very broad and diverse jurisdiction; it encompasses NOAA,
international trade, and our domestic telecommunications network, among
other matters.
The functions of the Commerce Department are important to Texas. We
rely on NOAA to provide coastal and underwater mapping and marine
debris removal to keep our ports open and functioning. NOAA's weather
prediction and coastal storm recovery programs are also vital to
minimizing loss of life when hurricanes hit.
Broadband, which plays an essential role in job creation and our
economic recovery, is also a key area of activity for the Commerce
Department. The NTIA is currently working to administer more than $4
billion in broadband grants. I hope that as NTIA proceeds with its
broadband policy, it will maintain a commitment to unserved areas as
its highest priority.
I look forward to hearing from Mr. Hightower and hearing his views
on these and the many other important programs administered by the
Department of Commerce.
I would also like to welcome our two nominees to the Consumer
Product Safety Commission, Mr. Adler and Congresswoman Northup. I am
very pleased that the CPSC will be restored to a full quorum later this
month. It is a small agency with a daunting task and it needs all of
its Commissioners to properly carry out its charge.
Although having a full quorum is important for the CPSC to continue
its implementation of last year's CPSIA, I would like to reiterate what
I said during the hearing for the agency's current Chair Inez
Tenenbaum.
I believe this Committee should hold a hearing to examine
implementation of that law. There has been a difference of opinion
about the intent of some of the language; what authority and how much
flexibility is granted to the Commission by the law, and who has the
responsibility to fix what is broken. An opportunity for all parties to
openly discuss the issue would be tremendously helpful.
Especially now, as many businesses are suffering during these tough
economic times, we should see what can be done to lessen that burden,
especially on small businesses and home crafters.
Besides implementation of the CPSIA, there are a number of other
challenges facing the Commission, and even with the extra resources
provided by Congress, it is a balancing act to keep up with the
requirements of last year's law while still remaining alert to possible
hazards that may make their way into the stream of commerce.
Everyone can agree that we want to protect consumers, and
especially children, from harmful products. I look forward to hearing
from both nominees today and hearing their ideas on how best to advance
the Commission.
Senator Pryor. Thank you.
And it is our honor to have the Senate's Republican Leader
this morning. Senator McConnell, we welcome you and we look
forward to your statement.
STATEMENT OF HON. MITCH McCONNELL,
U.S. SENATOR FROM KENTUCKY
Senator McConnell. Thank you, Chairman Pryor, Senator
Hutchison, Members of the Committee.
It is my honor to be here today to present someone to you
who you are already familiar with and probably does not need a
lengthy introduction, and that is Anne Northup of Louisville,
Kentucky. Anne is a longtime friend of mine. She also is
accompanied by her husband Woody who is a successful
businessman in Louisville. We have known each other for longer
than either of us would particularly care to admit. Throughout
that time, I have been a great admirer of all she has
accomplished in both her professional and her personal life.
She sits before you today as the President's nominee to be
a Commissioner of the Consumer Product Safety Commission, which
has a lifesaving mission to protect Americans from hazardous
products. I want to thank the President for his confidence in
Anne in selecting her for this position. I fully appreciate his
desire to see the mission of the CPSC fulfilled and his
understanding that good people on both sides of the aisle want
to make that happen and have a lot to contribute.
Anne is very much one of those people. Anne's gift is that
she can easily see where and why a problem exists and what the
best solution is. She has proven she has that ability over a
very long public career. If her track record does not convince
you that she is a great fit for this job, then take it from me.
She is smart, thorough, persistent, insightful, and an
extremely hard worker. Every American will have reason to be
thankful that she is once again dedicating herself to public
service. We in Kentucky are certainly glad of it.
As the Chairman indicated, Anne represented the 3rd
District of Kentucky in Congress for 10 years from 1997 to
2006. The 3rd District includes virtually all of the City of
Louisville, which happens to be my hometown, and so I was one
of Anne's constituents. She was recognized as a leader by her
peers in the House from her very first term. House leadership
trusted her with important legislative appointments dealing
with issues as varied as free trade, education, and drug abuse.
And we in Louisville were grateful time and time again for her
efforts on our behalf and her grace and civility on the public
stage.
Anne also, as the Chairman indicated, served in the
Kentucky House of Representatives for 10 years and served her
community for many years before that as an active citizen and
community volunteer.
But I do not think she would disagree when I say what is
the most important to her and what she has had the most success
at in a very successful life is her wonderful family. Anne and
Woody have been married for 40 years and have six children.
Woody is a small business owner. As I indicated, he is with her
today. I am sure he is proud of everything that he and Anne
have built together over this time period. Anne puts her family
at the center of her life. She comes from a very large family
herself. She is the second of 11 children, and she is the
mother of a large family. I would suspect dealing with so many
kids prepared her to deal with a lot of Members of Congress.
[Laughter.]
Senator McConnell. But as a mom, Anne knows how important
it is to have confidence in the safety of consumer products.
She knows that we must look out for consumers, especially kids.
She will bring that perspective to this job, and I know she
will take the responsibilities of the CPSC very seriously. She
understands that the health and safety of a lot of Americans,
especially children, depends on it.
As a Commissioner of the CPSC, Anne also will not forget
that she is there not to create more red tape but to serve
ordinary Americans. She understands all too well the
frustrations many of us have in dealing with government
bureaucracies. And as a former Member of Congress, Anne
understands that regulatory agencies must respect the
legislation Congress passes. Agencies like the CPSC have an
important role to play, but they must never confuse their role
with Congress' role which is to make the law.
No matter which way you look at it, Mr. Chairman, the
President has made a wonderful choice for this nomination, and
the American people are going to gain the services of a fighter
and a thinker on the CPSC as a result. Most of all, they will
gain the common sense touch of a concerned mother and a proud
American.
I could not recommend her more strongly to this Committee
and look forward to her confirmation.
I thank each of you for the opportunity to be here today
and to speak on Anne's behalf. Thank you so much, Mr. Chairman.
Senator Pryor. Thank you, Senator McConnell. Thank you for
being here. We are going to do this in two panels today, and I
want to thank you for your time and your willingness to be here
today.
Also, I want to point out that Senator McConnell set a good
example by staying within his 5 minutes.
[Laughter.]
Senator Pryor. So we are hoping that our other panelists
will follow that lead.
What we would like to do now is call up the first panel,
which is Dennis Hightower. Mr. Hightower, if you could come
forward and take your seat, we will let you make your opening
statement. We are asking that you keep that to 5 minutes, and
then we will ask some questions. Mr. Hightower?
STATEMENT OF DENNIS F. HIGHTOWER, DEPUTY SECRETARY-DESIGNATE,
U.S. DEPARTMENT OF COMMERCE
Mr. Hightower. Thank you very much.
Chairman Pryor, Ranking Member Hutchison, and other
honorable Members of the Committee, I come here today with an
enormous sense of humility and a deep sense of honor as the
President's nominee to be the Deputy Secretary of Commerce.
I want to thank President Obama for nominating me,
Secretary Locke for his enthusiastic support of my nomination,
and the Members of the Committee and your staffs who were
gracious enough to meet with me during the past week.
At this time, I would like to introduce the Members of the
Committee to my son, Dennis F. Hightower, Jr.; my fiancee, Dori
Bye, and her parents, Mr. and Mrs. Melvin Bye; my cousins,
other relatives, close friends and business colleagues, many of
whom have traveled great distances to support me today. My
brother, unfortunately, was not able to be here but he is
certainly here in spirit.
My family has long taken pride in our service to America.
My uncle, James Daniel Fowler, was the second African American
in the 20th century to graduate from the United States Military
Academy. His daughter is here today. He was one of three
members of my family who had the honor to attend West Point.
The other three are graduates of the United States Naval
Academy, including the only African American four-star admiral,
Paul Reason, who is also here with us today.
My own career began with 8 years as a regular Army officer
in the United States Army, decorated for service in the Vietnam
War.
I believe that serving as the Department of Commerce's
Deputy Secretary would be a fitting bookend to my 40-year
career in the private and public sectors. I am proud of the
work I have done, but also conscious of the extraordinary role
that my forbearers played in making this day possible.
My family's commitment to excellence and education can be
traced back to my maternal grandfather and his oldest sister
and my paternal grand aunt attending Atlanta University and
Morris Brown College and Spelman College in Atlanta, Georgia
prior to the start of World War I.
My mother received her elementary, secondary, and college
education here in Washington, D.C. and went on to teach for 40
years, starting in a one-room schoolhouse in Huntley, Virginia,
then as the founder and principal of the Army's GED program at
Fort Belvoir for returning World War II veterans, followed by
teaching adult and elementary education during her final 27
years in the then-segregated D.C. school system.
I, along with several of my friends seated here today, are
products of that system. We became the first full 3-year class
to graduate from high school following the historic Brown v.
Board of Education decision, and we know that without the
nurturing, caring, and demand for excellence by the many great
African American teachers of our day, I would not be sitting
here before you. Their indelible lessons to prepare, perform,
and persevere guided me during my matriculation at Howard
University and Harvard Business School, throughout my military
and business career, and finally, leading to this hearing
today.
During my public and private sector careers, I have lived
and worked in Asia, Latin America, and Europe. My work has
taken me to 87 countries at last count, many with multiple
visits. I have run multi-billion consumer products and
technology-based companies with activities spanning more than
50 countries. I have negotiated business deals at the highest
levels with representatives of governments and companies in
Eastern and Western Europe, the former Soviet Union, the Middle
East, post-apartheid South Africa, and throughout Asia and
Latin America.
This experience deeply informed my teaching at Harvard
Business School and my service on the boards of some of
America's leading corporations and startup technology
companies.
In short, I think I have developed the necessary skills to
help make the Department of Commerce effective in its
interactions with American companies, both large and small.
The Department of Commerce, with thousands of dedicated
employees working on everything from climate change to patents
to international trade, has one of the broadest mandates of any
Federal agency. But I believe one issue in particular demands
our foremost attention. We must reestablish the primacy of the
United States as the leader in innovation, creativity, and
excellence across the global economic spectrum.
There are projections that place the United States in
fourth place over the next 20 years in terms of consumerism,
manufacturing capacity, and the growth of an entrepreneurial
base that keeps pace with new global delivery systems and
developments. This forecasted outcome, to my way of thinking,
is unacceptable.
Countries such as Brazil, Russia, India, and China, often
referred to as the BRIC countries, are now employing aggressive
industrial policies reminiscent of Japan's strategic commitment
to the electronics industry in the 1960s. Today, we find
ourselves competing not only with companies of great capacity,
but countries intent on establishing dominance in the growth
areas of the 21st century.
During recent business travels in India, I was floored by
the country's commitment to reinvesting in technology and its
implications for the United States. In Bangalore, you find that
the technological inroads are often being created and sustained
by young people under the age of 27.
If we expect to lead, we must put our best minds on the
toughest problems, reforming the way America uses health care,
consumes energy, and educates our children. These reforms,
which are being pursued relentlessly by the Administration, are
absolutely necessary to create long-term and sustainable
economic growth and jobs. I believe that the Department of
Commerce is uniquely positioned to lead and support the
American companies that create those jobs.
I will make sure that I stay within the 5 minutes, Senator,
so I am going to skip a few things which perhaps will come out
in the questioning.
But I think despite the challenges facing America's
economy, we can be confident, thanks to the Administration's
aggressive response and the resiliency of our workers and
business, that this too shall pass.
Earlier in my career as a McKinsey strategy consultant, the
best companies I worked with always looked upon economic
uncertainty as an opportunity to reset, to right-size, to
retool, to innovate, and to reinvest. I think that this is the
opportunity that we have right now. And I think we must act
with a renewed sense of urgency because our global competitors
are neither standing still nor shy about taking action to exert
their global economic ambitions. America must demonstrate not
only a willingness to take action, but we must put in place the
appropriate metrics to help us know when we have achieved the
intended results.
As I look at the challenges facing America and the
Department of Commerce, I am reminded of a saying that defined
the mission of one of the elite fighting forces I was a member
of, and that is: ``Rangers lead the way.'' Today, the
Department of Commerce must lead the way to improved economic
growth, enhanced job creation, and a future that is brighter
than our past.
In conclusion, Mr. Chairman and Members of the Committee,
if confirmed as Deputy Secretary of Commerce, it is my intent
to work with you in a collaborative manner to develop practical
and timely solutions to our Nation's economic challenges and,
in the process, help rebuild and reinvigorate our position in
the world.
I thank you for your consideration of my nomination and the
opportunity to address this Committee, and I look forward to
any questions you might have. Thank you.
[The prepared statement and biographical information of Mr.
Hightower follows:]
Prepared Statement of Dennis F. Hightower,
Deputy Secretary-Designate, U.S. Department of Commerce
Chairman Rockefeller, Ranking Member Hutchison, and honorable
Members of this Committee, I come here today with an enormous sense of
humility and a deep sense of honor, as the President's nominee to be
Deputy Secretary of Commerce.
I want to thank President Obama for nominating me; Secretary Locke
for his enthusiastic support of my nomination; and the Members of this
Committee and your staffs who were gracious enough to meet with me over
the past week.
At this time, I would like to introduce the members of the
Committee to my son, Dennis F. Hightower, Jr.; my fiancee, attorney
Dori Bye and her parents, Mr. and Mrs. Melvin Bye; and other relatives,
close friends and business colleagues--several of whom traveled great
distances to support me here today. My brother, Marvin, was not able to
be here today, but he is here in spirit.
My family has long taken pride in our service to America. My uncle,
James Daniel Fowler, Jr., was the second African American in the 20th
Century to graduate from the United States Military Academy. He was one
of three members of my family who had the honor to attend West Point.
Two other family members are graduates of the United States Naval
Academy, including the only African American four-star admiral--my
cousin, Paul Reason--who is here today.
My own career began with 8 years as a regular army officer that
included decorated service in the Vietnam War.
Serving as the Department of Commerce's Deputy Secretary would be a
fitting bookend to my 40-year career in the private and public sectors.
I am proud of the work I have done, but also conscious of the
extraordinary role my forebears played in making this day possible.
My family's commitment to excellence and education can be traced
back to my maternal grandfather and his older sister attending Atlanta
University and Morris Brown College, in Atlanta, Georgia, before the
start of World War I.
My mother received her elementary, secondary and college education
here in Washington, D.C. and went on to teach for 40 years. Her career
began in a one-room school house in Huntley, Virginia. She later served
as a founder and principal of the U.S. Army's GED programs at Fort
Belvoir, Virginia for returning World War II veterans; before
concluding her career with 27 years teaching adult night school and
elementary school in the then segregated Washington, D.C. school
system.
I, along with several of my friends seated here today, are products
of that school system.
We became the first full three-year class to graduate from high
school following the historic Brown v. Board of Education decision.
Without the nurturing, caring and demand for excellence from the many
great African American teachers of our day, I would not be sitting here
before you.
Their indelible lesson to ``prepare, perform and persevere'' guided
me during my matriculation at Howard University and Harvard Business
School, throughout my military and business career--and finally to this
hearing today.
I believe the work I have done over the last 40 years has equipped
me to meet the various demands the Commerce Department requires of all
its leaders.
During my public and private sector careers, I have lived and
worked in Asia, Latin America and Europe. My work has taken me to 87
countries at last count--many with multiple visits. I have run multi-
billion dollar consumer products and technology-based companies with
activities spanning more than 50 countries. I have negotiated business
deals at the highest levels with government representatives and
corporate leaders in Europe, the former Soviet Union, the Middle East,
post-apartheid South Africa and throughout Asia and Latin America.
This experience deeply informed my teaching at Harvard Business
School and my service on the board of directors of some of America's
leading corporations and start-up technology companies.
In short, I think I have developed the necessary skills to help
make the Department of Commerce effective in its interactions with
American companies large and small.
The Department of Commerce--with thousands of dedicated employees
working on everything from climate change, to patents, to international
trade--has one of the broadest mandates of any Federal agency.
But I believe one issue in particular demands our foremost
attention.
We must re-establish the primacy of the United States as the world
leader in innovation, creativity and excellence across the global
economic spectrum.
There are projections that place the United States in fourth place
over the next 15-20 years in terms of consumerism, manufacturing
capacity, and the growth of an entrepreneurial base that keeps pace
with new global developments and delivery systems. This forecasted
outcome, to my way of thinking, is unacceptable.
Countries such as Brazil, Russia, India and China--often referred
to as the ``BRIC'' countries--are now employing aggressive industrial
policies reminiscent of Japan's strategic commitment to the electronics
industry in the 1960s.
Today, we find ourselves competing not only with companies of great
capacity, but countries intent on establishing dominance in the growth
areas of the 21st Century.
During recent business travels in India, I was floored by that
country's commitment to reinvesting in technology and the implications
for the United States. I spent time in Bangalore visiting a veritable
who's who of global technology giants. I was struck not only by the
technological inroads being made in newly designed, avant-garde
factories and laboratories, but also by the fact that this
technological revolution was often being led by young men and women
under the age of 27. By and large, these young people were not educated
in the United States like many of their fathers--at MIT, Cal Tech, or
Rennselaer, for example--but at the Indian Institutes for Technology.
If America expects to lead, we must put our best minds on the
toughest problems--reforming the way America uses healthcare, consumes
energy and educates our children. These reforms, which are being
pursued relentlessly by the Administration, are absolutely necessary to
create long-term and sustainable economic growth and jobs.
I believe that the Department of Commerce is uniquely positioned to
lead and support the American companies that create those jobs.
As its name implies, the Department of Commerce plays a crucial
role in implementing the Administration's bold economic agenda. America
depends on the Department for:
The expeditious granting of patents and intellectual
property protection for our established and fledgling
companies;
Bringing broadband and emerging telecommunications
applications to underserved and unserved communities throughout
America;
Understanding the effects of climate change on our air,
oceans and fisheries and promoting green technologies that
could mitigate our climate challenges;
Identifying where the country's human capital resides
through the accurate conduct of census surveys, particularly
the 2010 census;
Ensuring American companies compete on a level playing field
around the globe; and
Ensuring emerging American companies have the resources they
need to become the global leaders of tomorrow.
These are but a few of the ways the Department of Commerce is an
indispensable ally for America's businesses.
Despite the challenges facing America's economy, we can be
confident, thanks to the Administration's aggressive response and the
resiliency of our workers and business, that ``this too shall pass.''
Earlier in my career as a McKinsey strategy consultant, the best
companies I worked with looked at economic uncertainty as an
opportunity to re-set, to right-size, to re-tool, to innovate, and to
re-invest in our economy.
That is the opportunity we have right now.
America must now act with a renewed sense of urgency. Our global
competitors are neither standing still nor shy about taking action to
exert their global economic ambitions. America must demonstrate not
only a willingness to take action, but we must put in place the
appropriate metrics to help us know when we have achieved the intended
results.
As I look at the challenges facing America and the Department of
Commerce, I am reminded of a saying that defined the mission of one of
the elite fighting forces I was a member of, and that is: ``Rangers
lead the way!''
Today, the Department of Commerce will lead the way to improved
economic growth, enhanced job creation and a brighter future than our
past.
Mr. Chairman and Members of the Committee, if confirmed as Deputy
Secretary of Commerce, it is my intent to work with you in a
collaborative manner to develop practical and timely solutions to our
Nation's economic challenges; and in the process, help rebuild and
reinvigorate our position in the world.
I thank you for your consideration of my nomination, and the
opportunity to address this Committee. I look forward to any questions
you might have.
______
a. biographical information
1. Name (Include any former names or nicknames used):
Dennis Fowler Hightower.
2. Position to which nominated: Deputy Secretary of Commerce.
3. Date of Nomination: July 24, 2009.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
5. Date and Place of Birth: 28 October 1941; Washington, D.C.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Children: Son--Dennis Fowler Hightower, Jr., age 43; Daughter--
Dawn Denise Hightower, age 41.
7. List all college and graduate degrees. Provide year and school
attended.
Harvard University Graduate School of Business, MBA--1974.
Howard University, BS--1962.
8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.
I have had management responsibilities in all of my jobs.
1962-70--U.S. Army, Regular Army Officer.
Resigned in June 1970 with the rank of Major. Served in
Airborne Infantry (Platoon Leader, Company Commander
Air Operations Officer) and strategic and operational
intelligence positions in the U.S. and abroad
(counterintelligence, field operations intelligence,
Defense Intelligence Agency, Army General staff--
intelligence); Army Ranger and Senior Parachutist;
Decorated Vietnam Veteran (Intelligence Command and
staff in combat unit).
1970-1972--Xerox Corporation, Manager of Organizational
Planning--Research and Engineering Group.
1974-1978--McKinsey and Company, Inc., Management Consultant--
Senior Associate and Engagement Manager.
Strategy consultant to companies in the auto, consumer
goods, industrial goods, and technology sectors.
1978-1981--General Electric Company, Manager of Operational
Planning.
Lighting Components division, Asian and Latin American
sourcing, Acquisitions and New Business development.
Vice President and General Manager.
GE Lighting Business in Monterrey, Mexico (vertically
integrated supplier of complete range of lighting
products to Mexico, Venezuela, Brazil, and the U.S.
Auto Industry).
1981-1984--Mattel, Inc., Vice President, Corporate Planning.
Global Business Development, Acquisitions and
Divestitures.
1984-1987--Russell Reynolds Associates, Inc., Managing Director
and Los Angeles Office Manager.
Recruited senior executive talent for global companies.
1987-1996--The Walt Disney Company.
President of Walt Disney Television & Communications
(1995-1996); senior executive responsible for
profitable managing mufti-billion dollar global
enterprises in over 50 countries.
President of Consumer Products, Europe/Middle East and
Africa (1992-1995).
Executive Vice President of Consumer Products, Europe/
Middle East (1990-1992).
Senior Vice President of Consumer Products, Europe
(1989-1990).
Vice President of Consumer Products, Europe (1987-
1989).
1996-2000--Harvard Business School, Professor of Management.
First year MBA program with a focus on leadership,
managing change, building emerging markets, and global
general management from the perspective of the general
manager; helped develop course curriculum and taught in
senior executive programs in South Africa and the
Middle East to train future leaders in those regions.
2000-2001--Europe Online Networks, S.A., Chief Executive
Officer.
A privately-held broadband interactive entertainment
company based in Luxembourg.
1996-Present--Board of Directors of leading publicly-held and
privately-held companies and trustee of non-profit and
educational institutions.
(Also paid in recent years for speeches through Big Speak
Bureau and National Association of Corporate Directors).
9. Attach a copy of your resume. A copy is attached.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last 5 years.
2007-Present--Member of the Defense Business Board.
Consists of advisors to the Secretary of Defense and
the Chairman of the Joint Chiefs on the application of
best practices in business to the defense community.
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last 5 years.
Accenture, Ltd.--Independent Director.
Brown Capital Management Company--Independent Director,
Investment Management Advisor.
Casey Family Programs--Trustee.
Domino's Pizza, Inc.--Independent Director.
Lightfleet Corp.--Independent Director.
Bert King Foundation--Board Member.
Camp Atwater Advisory Council--Co-Chair.
Gillette Company--Independent Director.
Northwest Airlines--Independent Director.
TJX Companies--Independent Director.
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.
1960-Present--Kappa Alpha Psi Fraternity (Life Membership)--
African American fraternal organization.
1987-2005 The Jonathan Club, Los Angeles, CA.
1987-2007 Le Cercle Foch, Paris, France.
1993-2005--The French Heritage Society Board.
1995-2005--The California Club, Los Angeles, CA.
1996-1998--National Association of Guardsmen, Los Angeles
Chapter--social organization for African American men.
1996-2003--Howard University Board of Trustees.
1997-2005--Andrew Young Center for International Affairs,
Morehouse College, Chair.
1997-2009--Ron Brown Scholar Program Selection Committee,
Founding Member.
1997-Present--Bert King Foundation Founding Board Member.
1999-2001--The Corcoran Gallery of Art Board.
2004-Present--Sigma Pi Phi Fraternity, Epsilon Boule, Member--
African American fraternal organization.
13. Have you ever been a candidate for and/or held a public office
(elected, non-elected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt: No.
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period.
2008--Hillary Clinton--$1,000.
2008--Barack Obama--$1,000.
No political office held on any level and no services rendered
to a state or national political party or election committee.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
1960-1966--Kappa Delta Pi--National Education Honor Society;
Scabbard & Blade--National Military Honor Society; Pi Sigma
Alpha--National Political Science Honor Society.
1962-70--U.S. Army Officer (2Lt To Major): Awarded 2 Bronze
Stars, Purple Heart, 3 Air Medals, Joint Service Commendation
Medal, 5 Army Commendation Medals (1 For Valor), Vietnamese
Honor Medal First Class, Vietnamese Cross Of Gallantry,
Meritorious Unit Citation, Vietnamese Civic Action Medal,
Combat Infantryman Badge, Expert Infantryman Badge, Army Ranger
Tab, Senior Parachutist Badge, Expert Weapons Designation
(Rifle, Bayonet Grenade).
1972-74: COGME Fellowship to Study at Harvard Business School.
1974: Charter Member, National Military Intelligence
Association.
1976: Outstanding Young Men of America.
1984: Howard University Los Angeles Alumni Chapter, Outstanding
Alumni Award for Achievement In Business.
1985: Proclamation by Mayor of Washington, DC ``Dennis F.
Hightower Day--1 April 1985.''
Presidential Citation, National Association of Equal
Opportunity in Higher Education.
1986: Howard University Alumni Award for Distinguished
Postgraduate Achievement in Business and Administrative
Service.
1988: Black Enterprise Magazine--``Top 25 Hottest Black
Managers in Corporate America.''
1989 and 1995: Howard University School of Business Awards--
Chair Of Visiting Committee and 25th Anniversary Award.
1992: Harvard Business School Alumni Achievement Award.
Edges Group ``Breaking the Corporate Ceiling'' Award.
1993: Black Enterprise Magazine: ``40 Most Powerful Black
Executives.''
1993, 2006, 2008: Who's Who in the World; Leading Business
Professionals; Executives and Professionals.
1995: Harvard Business School African American Alumni
Association Alumni of the Year--International Achievement.
Cover of Black Enterprise Magazine: ``A Whole New World at
Disney.''
1996: Howard University--Honorary Doctor of Humane Letters.
Charles R. Drew Medical School, Los Angeles, CA Lifetime
Achievement Award.
U.S. Department of Commerce Pioneer Award (Minority Business
Development Agency).
1997: Morehouse College ``Candle in Business'' Award.
Howard University Athletic Association Buffalo Soldier Award:
``Athlete to Business Leader.''
2002: U.S. Military Academy Bicentennial Recognition Tray;
Friend of West Point.
2003: The Tuxedo Ball Award for Corporate Leadership.
2004: U.S. Military Academy Preparatory School Recognition
Plaque.
Founding Sponsor--U.S. Army National Museum.
2005: Institute for the Advancement of Minority And Multi-
Cultural Medicine--``Eagle Fly Free'' Cancer Survivor Award.
2006: ``Camp Atwater 85'' Anniversary--``Dr. William N. Deberry
Legacy Award.''
2008: ``Harvard Business School African American Alumni
Association--``Bert King Award for Service.''
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
From 1965 to 1970, I wrote articles for classified intelligence
community publications (none of these were in the public domain).
I do not believe I have given speeches on topics directly related
to the position for which I am nominated, i.e. On programs for which
the Department is responsible. More generally, over the years, I have
given numerous speeches at management conferences and academic lectures
on global leadership, building emerging markets, and infusing
innovation and creativity into global business operations. For example,
recent speeches I have record of are: 11.28.2006--Leading the 21st
Century: The DNA of a Leader--given to Northern Trust; 3.28.2007--
Leading the 21st Century: The DNA of a Leader--given to Northern Trust;
10.24.2008--Meeting the Challenge: Leading in a Tough Economy--given to
Tyco Safety Products.
17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each
testimony.
I have never testified before Congress.
18. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position?
I am a seasoned business executive with extensive global leadership
experience. I have successfully negotiated business ventures,
acquisitions and divestitures, and strategic alliances with leaders in
industry and with senior members of foreign governments in some 87
countries for more than 30 years.
I have lived in Asia twice, Latin America, and Europe twice. I have
developed successful new businesses in every country in western Europe
and eastern Europe (before the demise of Communism); the Russian and
Georgian republics of the former Soviet Union; the Middle East; post-
Apartheid South Africa; and Brazil, Mexico, Hong Kong, Japan,
Singapore, Taiwan, and Thailand.
I believe this global leadership experience allows me to bring a
unique perspective to the role of Deputy Secretary. I have the personal
attributes and qualities to lead in a fast-changing global economic
setting; to develop and execute aggressive strategies; to lead
successful implementation; and to develop the next generation of career
leaders who provide the on-going continuity as Administrations come and
go.
It would be a distinct privilege at this moment in history to add
value to the economic agenda of the President. Everything I have done
over the past 47 years has prepared me for this role. I consider it an
honor to serve. I began my adult life in service to my country as a
military officer, and I can think of no better way to culminate my
life's work than to serve once more in a senior capacity that would
assist our Nation in regaining and sustaining its global leadership.
19. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
Proper management and accounting controls are critical. I believe
my principal roles will be to elevate the operating capabilities of the
various agencies of the department to deliver increased efficiency,
motivate the talented human resources within the department to operate
within a spirit of total transparency, and ensure that operating
performance meets or exceeds agreed upon measurable outcomes.
I have led and profitably grown multi-billion dollar global
consumer products and technology-based businesses with operations in
over 50 countries. Activities have encompassed strategic planning and
execution, creating innovative products and services, marketing and
promotion, manufacturing, trademark licensing, vertical integration,
high-technology, publishing--and perhaps, most importantly, motivating
people to reach beyond their grasps.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
1. Motivating agency heads and staff to think boldly, and to
plan and execute programs aggressively in the new global
economic environment in which we find ourselves.
2. Building credibility with the global business community. We
must reestablish the primacy of the United States as the global
leader in terms of innovation, creativity and excellence across
the broad economic spectrum.
3. Ensuring that the Department of commerce serves its purpose
as a vital component toward the restoration of the economy. The
Department should set the pace for global change in the
commercial arena.
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
Presently, I receive compensation as follows:
Boards
Accenture: an annual cash retainer and annual restricted stock
units that vest 1 year following the annual grant.
Brown Capital Management Company: annual cash retainer paid
semi-annually.
Casey Family Programs: annual trustee fee paid monthly in cash.
Domino's Pizza, Inc.: annual cash retainer, committee and
meeting fees and annual nonqualified stock options that vest 1
year after the award.
Speaking Engagements
From time to time, I speak at business management conferences
and lecture at business schools in the United States and
Europe--for a fee or honorarium.
Retirement plan
I receive a key man pension and a defined benefit plan pension
from the Walt Disney Company. The benefits under this pension
are shared equally with my former spouse pursuant to a divorce
decree dated 19 July 2007.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain: No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
In connection with the nomination process, I have consulted with
the Department of Commerce's designated agency ethics official to
identify potential conflicts of interest. Any potential conflicts of
interest will be resolved in accordance with the terms of an ethics
agreement that I have entered into with the Department's designated
agency ethics official and that has been provided to this Committee.
This agreement has been reviewed by the Office of Government Ethics. I
am not aware of any other potential conflicts of interest.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
Any potential conflicts of interest will be resolved in accordance
with the terms of an ethics agreement that I have entered into with the
Department's designated agency ethics official and that has been
provided to this Committee. I am not aware of any other potential
conflicts of interest.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
Administration and execution of law or public policy.
I have not personally engaged in any such activity. Casey Family
Programs, of which I am a board member, provides expert testimony and
white papers to Congress on children and foster care. Additionally, I
serve on boards of corporations that engage in lobbying and legislative
outreach, but board members do not directly engage in such activities.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I have consulted with
the Department of Commerce's designated agency ethics official to
identify potential conflicts of interest. This agreement has been
reviewed by the Office of Government Ethics. Any potential conflicts of
interest will be resolved in accordance with the terms of an ethics
agreement that I have entered into with the Department's designated
agency ethics official and that has been provided to this Committee.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain: No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
I was sued in 2002 because of a delinquent personal loan. The loan
was paid in full soon thereafter and the case was dismissed with
prejudice. Cardinal Holdings Ltd. v. Hightower, Case No. 1:02cv1866
(D.D.C.)
In September 2006, my wife at the time filed for divorce and a
settlement decree was signed hi July 2007.
In addition, in my capacity as an independent director of Northwest
Airlines, Panamsat Corporation, and the Gillette Company, I have been
listed as a defendant in cases but have not participated in them in any
way. Based on a public records search of cases, these include: Cress v.
Wilson, 06 Civ. 2717 (S.D.N.Y.); Hastings v. Wilson, Civ. No. 05-2566
(D. Minn.); Karpuik v. Wilson (D. Minn.); Peter Schoenfeld Asset Mgmt.
LLC v. Shaw, No. 20087NC (Del. Ct. of Chancery ); Berkowvits v. Kilts,
et al., No. 1087-N (Del. Ct. of Chancery); Kohn v. Kilts, et al., No.
1092-N (Del. Ct. of Chancery ); and Freedman v. Kilts, et al., No.
1130-N (Del. Ct. of Chancery ).
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain: No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain: No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by Congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
______
resume of dennis f. hightower
Dennis F. Hightower is a seasoned business executive with extensive
global general management experience. His distinguished career spans
the private and public sectors, including more than 30 years of
experience in global marketing, strategic planning, operations and
international general management.
Most recently, Mr. Hightower was Chief Executive Officer of Europe
Online Networks S.A., a privately held broadband interactive
entertainment company based in Luxembourg. From 1987 to 1996, Mr.
Hightower was a Senior Executive of The Walt Disney Company, where he
led multi-billion dollar enterprises as President of Walt Disney
Television & Telecommunications and President of Consumer Products,
Europe/Middle East and Africa.
Hightower has made a continuing commitment to training future
business leaders as a former Professor of Management at Harvard
Business School, where he focused on leadership, building emerging
markets and global general management. He has also been a guest
lecturer at business schools throughout the world including IMD in
Switzerland, INSEAD in France and the London Business School; and at
the U.S. Military Academy (Bicentennial) and the USMA Preparatory
School.
Hightower most recently served on the Boards of Directors of
Accenture, Domino's Pizza, Lightfleet (a start-up high technology
company), and privately-held Brown Capital Management. He has formerly
served as a board member of The Gillette Company, Northwest Airlines,
PanAmSat Corporation, Phillip-Van Heusen Corporation, The TJX
Companies, Inc., and as a member of the Price Waterhouse Chairman's
Advisory Council.
Previously, Mr. Hightower has demonstrated a willingness to serve
his country as a decorated Vietnam veteran and as a member of the
Defense Business Board. Hightower was a Regular Army officer for 8
years, rising to the rank of Major by age 27. While on active duty he
was awarded numerous decorations for meritorious achievement and valor.
Mr. Hightower holds an M.B.A. degree from the Harvard Business
School and a B.S. degree and honorary doctorate from Howard University.
He received the Alumni Achievement Award in Business from Howard
University in 1986, the Alumni Achievement Award from Harvard Business
School in 1992, and the U.S. Department of Commerce Pioneer Award in
1996.
Senator Pryor. Thank you, Mr. Hightower. Thank you for your
statement.
I know that Secretary Locke shares your concern about our
innovation, our creativity, our excellence. I would probably
add to that our technology commitment. I know in the Senate we
have tried to focus on things like science parks, innovation
prizes, nanotechnology research, the technology innovation
program.
What are your plans to try to get more innovation, more
creativity, more excellence out there around the country?
Mr. Hightower. I think part of the answer to that, Senator,
is, one, having a deeper understanding than I do today of what
actually goes on specifically within the Department. Again,
assuming I am confirmed, then that would be one of the first
tasks, to begin to thoroughly understand the mission and what
commonality, what threads run through the operations of the
Department of Commerce to ultimately get to the mission of
serving the American business and the economic platform better.
As my experience would suggest, it does all start with
leadership because, at the end of the day, what we are talking
about is how do you get people motivated and inspired to do
their best. So to the extent to which we have the best people
in place to run those agencies, that we can come up with a
unified mission, one that everyone can rally around, I think
that is the starting point to begin to attempt to both
understand, put together the correct agenda, and most
importantly, execute that agenda with the metrics that tell us
whether we have achieved those noble objectives.
Senator Pryor. Earlier this year, the Congress set up the
Broadband Technology Opportunities Program, also called BTOP.
The idea there is to get broadband in places where it is not
currently today. I think that a very important piece of this
puzzle for innovation and investing in the future economy and
the changing economy of this country is to try to make
broadband more available to more people and more communities.
Do you have any comment on that?
Mr. Hightower. Yes, in fact, I do. My comments are twofold.
One, I have run such a company in Luxembourg, a satellite
company that delivered 2-3 megabit streams into personal
computers with television quality, all interactive. I served
for 7 years on the board of Pan Am Sat Corporation, who at the
time had the largest number of birds in the air, about 23
satellites. And I understand the issues around repointing and
repositioning to be able to provide coverage.
And I will certainly get into this more deeply, if
confirmed, and that is, it becomes more of an issue of how one
allocates, because we look at the terrestrial platforms that
many of these satellites bounce off of. It is to me a question
of: how do we equitably allocate so that rural communities have
the same access and opportunity as the more developed urban
centers? So I certainly appreciate the importance and the
urgency, and I have had some direct experience in trying to do
that.
Senator Pryor. Senator Hutchison?
Senator Hutchison. Thank you, Mr. Chairman.
I would like to ask you, just as I asked Secretary Locke,
when he came before the Committee, about opening access for
American businesses in foreign countries to help our jobs and
markets. What would be your approach to that issue and how
could we do even more than we are doing now to open markets for
the United States' businesses?
Mr. Hightower. I think, Senator Hutchison, again I would
refer to and rely on experience having done that over the last
25 years, particularly in Eastern Europe and the Soviet Union,
the Middle East, and Europe and also Asia.
First and foremost is the notion of enforcing the
agreements that are in effect. We have a number of trade
agreements where one could question the diligence by which we
ensure that our companies who make that investment, who are
trying to create opportunities for the global market are not
always supported because of the relative lack of enforcement.
So I think enforcement becomes a very key issue in order to set
the framework, the proper framework, in order to do that.
Second, I think that we have got to look at some sort of
partnership with small companies and large companies. The large
companies became large because of a certain set of economic
conditions which may not exist today that existed perhaps 30 or
40 years ago. So my experience has been that the extent to
which we can provide strategic alliances where we have the
larger companies providing certain capacity capability to
recognize the skills and talents of the smaller companies, the
``lift as you climb'' approach, then we have the ability to
close what I call the aspiration gap. There are companies of
small size who have capacity and capability but who often do
not have the opportunity to leverage that. Larger companies who
are globally-based have that capacity and ability.
So I think, to the extent that we can provide some sort of
linkage on the ground to allow this issue of what is my
aspiration as a small company versus what is my current
capability and how do we close that gap--I think to the extent
that we can provide those kinds of strategic alliances and
linkages as the larger companies begin to continue their
expansion around the world, that again provides the next
generation of economic opportunity for those companies here in
the U.S.
Senator Hutchison. I think that is a very good point, and I
hope you do pursue that with the Secretary.
Let me ask you if there are particular parts of the world
that you think are important for us to have better trade
relationships and investment opportunities with that you would
suggest to the Secretary that the Commerce Department focus on.
Mr. Hightower. My recent experience suggests that it all
focuses on Asia. If I believe most of the projections that I
have read and have been a part of providing data for, in the
next 25 years, over 60 percent of all consumer spending is
going to occur between China and India. So to the extent that
we understand that China, with roughly 25 to 26 percent of our
current debt, has to be more of a spender as opposed to an
investor, I think this will go a long way. So I think the
emphasis and the effort directed in that regard will have
handsome payoff to the extent that we have a focused strategy.
India likewise, because of their commitment to technology
and excellence. Because as I have been in India and you look at
what is happening there in Bangalore, as I mentioned, these
young people are not coming to the United States anymore to
study as their fathers might have done at MIT, Cal Tech,
Rennselaer, and some of the other premier science and
engineering schools. They are being educated by the Indian
institutes of technology. So they are reinvesting in their own
people in those countries.
When you look at the sale of Jaguar and Range Rover to
Tata, Tata now will become one of the largest automotive
manufacturers in the world. So we are obliged to deal not only
with Tata, we are obliged to deal with India because of the
resources that the Indian economy is putting behind because
they want a certain level of economic excellence and economic
primacy as well. So unless we begin to understand how those two
countries function, how they think about global economic
development, we are going to have an issue that is not going to
have the outcome that we want.
So I would say one of my early priorities certainly upon
confirmation would be to look at, one, the trade issues and,
two, how do we then use the leverage of the classic innovation
and some of the new technology that we have and can bring to
bear to change the dynamic that currently exists with those
countries in particular.
Senator Hutchison. Mr. Chairman, I know my time is up, and
the nominee's answers are very good. I would just make one
point and that is I hope you will also look at Central and
South America as a way to use trade and investment
opportunities to help shore up democracies and stability in our
own hemisphere.
Mr. Hightower. If I could just add to that, I think Brazil
represents certainly that challenge. I remember when I was
running businesses in Brazil back in 1979, 1980, and 1981 based
in Mexico, the old cruzeiro was adding three zeroes every
month. We were in 3,000 percent inflation, and I was managing
businesses for Jack Welch at GE and Jack did not care whether
the three zeroes were being added. He wanted the results.
So those countries now have attained a level of stability
and economic prowess that we cannot ignore, and I agree with
you certainly that these are the kinds of issues that we are
going to have to face in Latin America.
Senator Hutchison. Thank you very much.
Senator Pryor. Thank you.
Senator Begich?
STATEMENT OF HON. MARK BEGICH,
U.S. SENATOR FROM ALASKA
Senator Begich. Thank you very much, Mr. Hightower, for
your willingness to serve and also congratulations for you and
your fiancee.
Mr. Hightower. Thank you.
Senator Begich. Also, to the other nominees, I will not be
able to stay, but I look forward to having you all three
confirmed. I think you bring incredible experience and ideas to
the Commerce Department and the CPSC.
But just to be parochial for a moment, as a Senator from
Alaska, I like to remind, as I did Secretary Locke, how the
Commerce Department--half your budget is NOAA. Half of NOAA is
Alaska.
[Laughter.]
Senator Begich. Not that I want to be parochial.
Mr. Hightower. I understand, sir.
[Laughter.]
Senator Begich. I want to make sure, as I tell folks, that
the Commerce Secretary and Deputy Secretary are really going to
be fishermen.
So I appreciate all your international trade conversation
because I think that is important, but for Alaska's perspective
and actually for the country, when you look at the fishing
industry, which has about 58,000 people employed, we provide 62
percent of all the natural-caught fish in the country, which is
international in its business. If you go to McDonald's and get
a fish sandwich, probably 95 percent of that product is coming
from Alaska. But because of the international trade issues, we
also have strong interests in the markets specific of the
Pacific Rim because of fishing.
So can you give me just a little comment--and I am going to
go back to some of your others with regard to technology,
especially in rural communities--but first on the fishing
industry or what knowledge--and you can acknowledge if you do
not have as much. That is fine. I am going to then also invite
you to Alaska, as I do to every Commerce person. Fishing is
good now too.
[Laughter.]
Senator Begich. But let me ask you, can you give me some
thoughts on how you see that industry and maybe your role as
the Deputy Secretary in regard to the fishing industry not only
from a national perspective, but international?
Mr. Hightower. I think, one, it is fair to say that I have
not been briefed on that issue. I can say that as a scuba diver
of 30 years, that I do appreciate fish because that is one of
the reasons why you dive, to see the wonderful fish.
But I do understand the importance of the issue, and I
think as the Secretary and I begin to define how we will work
together and the priorities, it is very clear, having spoken
with Secretary Locke, that fishing, fisheries and fishery
management are very high on the agenda and the extent to which
I will have a direct role with NOAA and some of the related
agencies, you can be assured that we will be collaborative and
work with you on those issues because we do understand the
importance of them.
Senator Begich. Excellent. I would be interested in,
depending on how that role defines, if you are engaged in the
fishing industry, we would love to, I am sure--I know
Washington State--if Maria was here--Senator Cantwell and
Senator Snowe were here, we would probably want to get you
around to the different industries because they are very unique
and they are very American. They produce jobs here and there is
huge opportunity for value added.
Let me expand a little bit on your telecommunications in
rural Alaska. As I like to describe here, we consider it
extreme rural, because some areas you literally cannot drive
to. So telecommunications, rural communications is critical for
not only life safety but also for commerce. Can you expand a
little bit? I heard you say a little bit about how to get to or
how to expand into rural communities. Can you give me a little
more meat on that? I would love to hear some.
Mr. Hightower. Yes. I think part of the issue--I, again,
experienced this firsthand as a board member of PanAmSat where
if the issue had to do with defense and some of the other
esoteric bands that were bounced off of those satellites, there
was never an issue of repointing. When it came to other issues,
they sort of fell by the wayside. I think having experienced
the frustration of other users or other potential users not
being able to have the repointing to allow the kind of coverage
that you just described, I think that gives me a sensitivity, a
level of understanding which I think I should be able to bring
to bear in terms of how we then set priorities of what birds
are in the air, whether it is Intelsat or some of the other
providers now. And I think that is a collaborative effort
because we understand the importance of defense and how those
programs oftentimes take priority because I also sit on the
Defense Business Board, so I do have an understanding of how
that works and why it is necessary. But there are also other
factors, as you described, that are equally as important, and
we have got to figure out what a practical solution to those
expanded opportunities are.
Senator Begich. Excellent. Again, for the same reason, I
think we have some unique opportunities up there because of
military as well as Commerce----
Mr. Hightower. Exactly.
Senator Begich.--the combination of the two and the rural
aspect and how we use it for telemedicine and a variety of
other life safety kind of issues. So we will look forward to
that.
I will end on this last question, because my time has
expired. In trade agreements, if you could name just the top
three things that you think are important in trade agreements
from our perspective, what would those be? And I will end there
and let you just----
Mr. Hightower. Top three in terms of content or top three
in terms of how we approach dealing with----
Senator Begich. How we approach dealing.
Mr. Hightower. I think we have got to approach the core
elements of trade agreements on what is best for America. We
have got to start from a certain premise that says: these are
the areas that are peculiarly and uniquely important to us and
we have got to then be willing to stand up and have the courage
of conviction to fight for what we want. In the absence of
that, we will find what has already happened in some of the
Asian countries where the government has taken a role, a more
aggressive role and has redirected resources to create an
unfair playing field, one where company margins, if you look at
the balance sheet, are unrealistically low. Investment
incentives are unrealistically high. And we are trying to do it
``the right way,'' and in so doing, we often become a second
class citizen in that process because we are playing with one
arm tied behind our backs.
So I think to me, fundamentally, we have got to understand
why we are there, what leverage we bring to bear, use some of
the leverage financially, and other relationships. It requires
partnerships also. Sometimes we have to call on our other
partners who have supported us in other areas, other countries
around the world to say, look, this is really how we have to
deal with an emerging issue that is an unfair setting and
correct that.
Senator Begich. Very good. Thank you very much. Thank you
for your time and I wish you the best.
Mr. Hightower. Thank you, sir. Thank you very much.
Senator Pryor. Senator Thune?
STATEMENT OF HON. JOHN THUNE,
U.S. SENATOR FROM SOUTH DAKOTA
Senator Thune. Thank you, Mr. Chairman.
Mr. Hightower, congratulations. Welcome to the Committee.
Mr. Hightower. Thank you very much.
Senator Thune. I also want to welcome the nominees this
morning for the CPSC and particularly recognize a classmate of
mine from the House of Representatives, Anne Northrup, and her
husband, Woody. I can say, having served for a number of years
with her in the House, there is not anybody who cares more
about the people that she represents or works harder on behalf
of the people that she represented when she was a Member of the
House of Representatives. Not only does she bring great talent
to this position, but also great passion and a powerful work
ethic that I think are going to reflect extremely well on the
CPSC and on the Administration. So, a great selection by the
President. And I want to welcome Anne and wish you well.
Mr. Hightower, Senator Begich has talked about the extreme
rural in Alaska. I guess South Dakota would be near extreme.
[Laughter.]
Senator Thune. We are probably not real extreme. But I am
interested in some of the same issues that he mentioned. One in
particular is the Broadband Technology Opportunity Program. My
understanding is the first round of awards is not going to come
until October, perhaps even later. I would just pose the
question that given the primary thrust of the stimulus was job
creation, can anything be done to speed up the timing of some
of those awards?
Mr. Hightower. Again, Senator, until confirmation does
occur, it certainly is not appropriate for me to dig deeply in
that, but I do have, obviously, a point of view about that,
which would suggest that the sooner we can do it, the better.
And the way in which we define sort of the allocation metric is
going to be an important determinant to ensure that the funds
do get out to rural communities as expeditiously as possible
within the context of the policy that I understand is in the
process of being developed.
So if I were confirmed to be in that role as the Deputy
Secretary, it is clear that that will be one of the top
priorities because that is a clear issue that I know the
Secretary has already made a commitment to, and as sort of the
chief operating officer, if you will, of the Department,
clearly that is going to be on my list.
Senator Thune. Well, I look forward to working with you on
that. As I said, part of this is timing and getting as much
accelerated as we can to get the optimum value of the job
creation potential that exists with that program.
What do you see--sort of looking in the crystal ball--as
perhaps the greatest long-term threat to our economy right now,
as you project out into the future?
Mr. Hightower. I think the threat posed has two elements to
it, at least. The external threat, I believe, is the one that I
began to describe earlier and that is countries beginning to
see themselves as on par with us in terms of innovation and
creativity and creating that entrepreneurial base that drives
future development and the willingness of countries to change
and re-allocate their resources much as Japan, Inc. did in the
electronics industry in the 1960s.
The second threat I believe is an internal one of malaise.
To the extent that jobs do not get created, to the extent that
companies do not recover, then we find ourselves being sort of
hit by a double whammy. And there is a morale issue that says
how do you then reconstitute and recreate that manufacturing
base. How do you deal with outsourcing versus development from
within? So I think the extent to which we can get our arms and
our minds around the severity of not doing the right thing to
get these jobs created, that is perhaps a greater threat than
even the external.
Senator Thune. Let me just ask one question with regard to
an issue that I think is on everybody's mind these days, and
that is the fiscal situation that we find ourselves in as a
nation, trillion dollar deficits projected out as far as the
eye can see.
The Department of Commerce has 37,000 employees and a $13
billion budget. I guess I am interested in what your thoughts
are in terms of, as you take over the day-to-day management of
that, improving the operations of the management of the
Department in a way that would save tax dollars and hopefully
get the Department operating in a way that is less costly and
maybe help us tackle, at least to some extent, the deficit
issue that is, I think, really going to plague us in the future
if we do not get our arms around it.
Mr. Hightower. I think it would fall into what I would
consider sort of a classic taking over a new business approach
where my role, I think, would be to go in and understand sort
of the race--you know, what is going on right now and
understanding not only the mission, you know, the things that
are the key objectives that are currently underway and what the
outcomes are going to be and the cost of those outcomes, and
then performing a fairly sophisticated, what we would call an
overhead value analysis to say are the things that we have set
about doing the right things and are we putting the right sorts
of resources behind.
I would say it would be more of a surgical approach where
there are elements of those 11 agencies who may need more
resources, but the tradeoff will be who would then take less
resources, understanding that the pie is fairly fixed, that
there is a finite amount that we are going to be working with.
This is an approach I have taken in every business that I have
run over the last 25 years. I think I understand how to do
that, and the key will be making sure I understand where we are
now in order to know what is the correct, right-sizing because
is what we are really talking about. And that always has an
economic fallout, which is we are being more efficient, more
productive using the taxpayers' dollars in a much more
efficient manner.
Senator Thune. Well, I can say I think we look forward to
working with you on that subject as well.
Mr. Hightower. Likewise.
Senator Thune. Mr. Chairman, we have, as you know, many
important issues in this Committee, such as FAA
reauthorization, a new multiyear highway bill, issues dealing
with broadband stimulus funding, as I mentioned earlier, and
CPSC. There are many important issues to work with you on. So
we look forward to that.
Mr. Hightower. I am looking forward as well, upon
confirmation.
Senator Thune. Thank you for your willingness to serve.
I see my time has expired. Thank you, Mr. Chairman.
Senator Pryor. Thank you, Senator Thune.
I want to thank you, Mr. Hightower, for being here today.
Senator Hutchison and I do not have any other questions, but we
want to thank you for being here today and thank you for your
participation and all your preparation.
Mr. Hightower. Thank you very much.
Senator Hutchison. Thank you very much. You did a very nice
job.
Mr. Hightower. Thank you. Mike Montelongo sends his regard
as well.
Senator Hutchison. Oh, good. Thank you very much.
Mr. Hightower. An old friend.
Senator Hutchison. Yes. He is very good as well. Thank you.
Mr. Hightower. Thank you very much, Senator. Thank you,
sir.
Senator Pryor. Thank you.
We are going to bring up our second panel now, which is
Robert Adler and Anne Northup. If you all could swap out the
seats there. What I would like to do is recognize Mr. Adler
first for his 5-minute opening and then recognize Ms. Northup
for hers. So as soon as we get situated, we will be underway.
Again, welcome, both of you, to the Committee. Mr. Adler,
if you could go ahead and start.
STATEMENT OF ROBERT S. ADLER, COMMISSIONER-DESIGNATE, U.S.
CONSUMER PRODUCT SAFETY COMMISSION
Mr. Adler. Thank you very much, Senator Pryor. Good
morning, Senator Pryor, Ranking Member Hutchison, and members
of the Senate Commerce, Science, and Transportation Committee.
I am extremely honored to have been nominated by President
Obama to serve as a Commissioner at the U.S. Consumer Product
Safety Commission, an agency that I have been involved with,
one way or another, for the past 36 years. If confirmed, I look
forward to working with newly appointed Chairman Inez Tenenbaum
and the other CPSC Commissioners and I hope soon-to-be
Commissioner, Anne Northup, to promote product safety for
American consumers in a vigorous and responsible fashion.
At this point, I would like to introduce my wife, Terrie
Gale, and my son, Paul Adler. Terrie has just stepped down
after 17 years as the Attorney for the police department in
Chapel Hill, North Carolina, and if you were wondering who
dealt with the 50,000 screaming fans after we won the NCAA
championship, you are looking at her. This January, Terrie and
I will celebrate 35 years of marriage, and I want to thank her
for her love, support, and friendship over these years.
My son, Paul, is a third-year graduate student on his way
to a Ph.D. in modern American history at Georgetown University.
What amazes me about my son is that as a result of his studies,
he now knows more about the 1960s and the 1970s than I do, and
I lived through them.
Mr. Chairman and Members of the Committee, as I reflect on
my life and career, I like to think of it as one dedicated to
public service, which I hope to continue at the CPSC. Going
back some 40 years, I was one of those early eager volunteers
in the War on Poverty. In that case, I went to work in a legal
services program in Pittsburgh where I specialized in consumer
law reform litigation, which sparked a lifelong commitment on
my part to promoting and protecting consumer rights.
Following this job, I served as a Deputy Attorney General
for the Pennsylvania Justice Department, heading a regional
office of consumer protection. At the Bureau of Consumer
Protection, among other things, I fought to stop pyramid sales
schemes, bad collection practices, odometer rollbacks, and a
whole variety of business fraud.
While I was in Pittsburgh, I helped organize a local
consumer group headed by a professor of electrical engineering
at Carnegie-Mellon University named David Pittle. And David is
actually in the audience somewhere. One day out of the blue,
David informed me that he was soon to be appointed as one of
the five original Commissioners at the newly established
Consumer Product Safety Commission. To my delight, he invited
me to join him as his attorney-adviser, which began my 36-year
association with the CPSC, which is an agency whose mission I
strongly cherish and support.
I actually worked on Commissioner Pittle's staff for 9
years, and each year that passes confirms for me that he
represents the very best of what a CPSC Commissioner should be.
With a Ph.D. in electrical engineering and a solid foundation
in science, he never fell for rhetorical or simplistic
solutions. He always insisted on sound facts supported by
technical excellence when he made decisions. Never once in the
years I worked for him do I recall him casting a product safety
vote in a political or partisan manner. Should I be confirmed,
I hope to operate with the same dedicated, pragmatic, data-
driven, fact-based approach that he did.
Shortly after this, I joined the Subcommittee on Health and
the Environment of the House Energy and Commerce Committee
which was then chaired by Congressman Henry Waxman, and one of
my major assignments was oversight of the Consumer Product
Safety Commission. I am sure everyone here knows Congressman
Waxman's many outstanding accomplishments as a legislator, but
on a personal note, I want to say he is one of the finest, most
decent, and gracious bosses I have ever had.
After my years on the Health Subcommittee, I received and
accepted an offer to join the faculty at the University of
North Carolina at Chapel Hill as one of four law professors in
the business school. After years of late nights spent
researching, writing, and publishing, I did receive tenure and
today I am a full professor with the title of Luther Hodges,
Jr. Scholar in Law and Ethics.
Mr. Chairman, as I contemplate a return to the CPSC, I am
well aware that the product safety challenges are not
necessarily the same as when I left. To pick just one example,
I note that imported products now present far more serious
problems than in years past. In fact, as I understand it,
roughly 85 percent of current CPSC recalls involve imported
products.
Nor is the CPSC the same agency that I left. It has gone
through some very turbulent times over the years and, to my way
of thinking, regrettably has emerged as a far smaller agency,
though with the same very large mandate. For example, I note
that even with the infusion of the new funding in Consumer
Product Safety Improvement Act, the agency's authorized staff
level remains more than 40 percent below that of 30 years ago.
I would like to make one last brief comment about the
recently enacted CPSIA. I believe that passage of this act
stands as a monumental achievement in promoting product safety,
and I want to commend the Congress for enacting it. But I can
see the challenge of meeting the 40-plus deadlines in the act,
and I know that has been, and continues to be, an immense and
daunting challenge. I have little doubt that every staff member
at the agency will work tirelessly to implement the many
remaining requirements, and if I am confirmed, I hope to be
part of that massive effort.
I certainly look forward to working with all of you and
your staffs, if I am confirmed. From my perspective, the
critical element is to maintain a clear, transparent line of
communication between the agency and the Congress so that both
sides are confident that American consumers' best interest is
being served.
I thank you so much for considering my nomination to be a
CPSC Commissioner, and if confirmed, I pledge my strongest
commitment to carrying out my responsibilities in this job. I
look forward to your questions.
[The prepared statement and biographical information of Mr.
Adler follows:]
Prepared Statement of Robert S. Adler, Commissioner-Designate,
U.S. Consumer Product Safety Commission
Good morning, Mr. Chairman, Ranking Member Hutchison, and members
of the Senate Commerce, Science, and Transportation Committee.
I am extremely honored to have been nominated by President Obama to
serve as a Commissioner at the U.S. Consumer Product Safety Commission
(CPSC), an agency that I have been involved with in one way or another
for the past 36 years. If confirmed, I look forward to working with
newly-appointed Chairman Inez Tenenbaum and the other CPSC
Commissioners to promote product safety for American consumers in a
vigorous and responsible fashion.
I would like to introduce my wife, Terrie Gale, and my son, Paul
Adler. Terrie has just stepped down after 17 years as the attorney for
the police department in Chapel Hill, North Carolina. This January,
Terrie and I will celebrate 35 years of marriage, and I thank her for
her love, support and friendship over these years.
My son, Paul, is a third year graduate student on his way to a
Ph.D. in Modern American History at Georgetown University. What amazes
me about Paul is that, as a result of his studies, he knows more about
the 1960s and 1970s than I do--and I lived through them.
Mr. Chairman and members of the Committee, as I reflect on my life
and career, I like to think of it as one dedicated to public service--
which I hope to continue at the CPSC. As a young lawyer some 40 years
ago, I eagerly enlisted in the War on Poverty in a program run by the
Federal Office of Economic Opportunity as a Reginald Heber Smith
Community Lawyer, or ``Reggie'' as we were called. In this capacity, I
worked at a legal services program in Pittsburgh for several years
specializing in consumer law reform litigation--which sparked a
lifelong commitment to promoting and protecting consumer rights.
Following this job, I served as a Deputy Attorney General for the
Pennsylvania Justice Department heading a regional office of consumer
protection. At the Bureau of Consumer Protection, among other things, I
fought to stop pyramid sales schemes, bad collection practices,
odometer rollbacks, and other varieties of business fraud. Dealing with
the victims of these abuses only heightened my commitment to
safeguarding consumers in the marketplace.
During my years in Pittsburgh, I helped organize a local consumer
group headed by a Professor of Electrical Engineering at Carnegie-
Mellon University, David Pittle. One day out of the blue, David
informed me that he was soon to be appointed as one of the five
original Commissioners at the newly-established Consumer Product Safety
Commission. To my delight, he invited me to join him as his attorney-
adviser. Thus, began my 36-year association with the Consumer Product
Safety Commission, an agency whose mission I strongly cherish and
support.
I worked on Commissioner Pittle's staff for 9 years, and each year
that passes confirms for me that David represents the very best of what
a CPSC Commissioner should be. Given his deep commitment to the
consumer movement, David always fought to protect and promote consumer
rights, but he relied on more than sympathy and good intentions. With a
Ph.D. in electrical engineering and a solid foundation in science,
David never fell for rhetorical or simplistic solutions. He always
insisted on sound facts supported by technical excellence when he made
decisions. Never once in the years I worked for him do I recall him
casting a product safety vote in a partisan manner. Should I be
confirmed, I hope to operate with the same dedicated, pragmatic, fact-
based approach that he did.
After David's departure, I briefly worked for Sam Zagoria, a
wonderful and witty CPSC Commissioner who left the agency when Ben
Bradlee, the editor of the Washington Post, asked him to join the paper
as its Ombudsman. This ended my years working at the CPSC, but did not
end my involvement with the agency. Shortly after this, I joined the
Subcommittee on Health and the Environment of the House Energy and
Commerce Committee chaired by Congressman Henry Waxman, where one of my
major assignments was oversight of the CPSC. I'm sure everyone here
knows Congressman Waxman's many outstanding accomplishments as a
legislator, but on a personal note I want to say that he is one of the
finest, most decent and gracious bosses I've ever had.
After several years on the Health Subcommittee, I accepted an offer
to join the faculty at the University of North Carolina at Chapel Hill
as one of four law professors in the business school. After several
years of late nights spent researching, writing and publishing, I
received tenure, and I am today a full professor with the title of
Luther Hodges, Jr., Scholar in Law and Ethics.
In my 20-plus years at Kenan-Flagler, as the business school is now
known, I have served as Associate Dean heading its undergraduate
program and later its MBA program. I have taught a variety of
commercial law courses, the school's mandatory business ethics course,
and, most recently, a course in negotiation. In addition, for several
years, I taught a course in business-government relations.
One of the delights of being a professor for me has been the
opportunity to reflect on my time at the CPSC and on the Hill working
on product safety issues. I have written a number of articles on these
topics, and I think my understanding of the issues has grown as a
result of my academic research. My commitment to and support for the
CPSC as a necessary part of protecting consumers in the market has
certainly deepened over the years.
As I contemplate a return to the CPSC, I am well aware that the
product safety challenges are not necessarily the same as when I left.
To pick just one example, I note that imported products now present far
more serious problems than in years past. In fact, as I understand it,
roughly 85 percent of current CPSC recalls involve imported products.
Nor is the CPSC the same agency that I left. It's gone through some
turbulent times and regrettably has emerged as a far smaller agency--
though with the same large mandate. In 1981, for example, the CPSC had
a staff of roughly 900 FTE's. And while I am extremely encouraged by
the recent hiring of a number of talented new agency staff, I note that
even with the infusion of new funding in the Consumer Product Safety
Improvement Act (CPSIA), the agency's authorized staff level remains
more than 40 percent below that of thirty years ago.
I would like to make one brief comment about the recently-enacted
CPSIA. I believe that passage of this Act stands as a monumental
achievement in promoting product safety, and I can see that the
challenge of meeting the 40-plus deadlines in the Act has been and
continues to be immense and daunting. That said, I know that the CPSC
staff has already met numerous deadlines through their hard work, and I
have little doubt that every staff member at the agency will work
tirelessly to implement the many remaining requirements. If I am
confirmed, I hope to be part of that massive effort.
I also look forward to working with all of you and your staffs if I
am confirmed. From my perspective, the critical element is to maintain
a clear, transparent line of communication between the agency and the
Congress so that both sides are confident that American consumers' best
interest is being served.
I thank you for considering my nomination to be a CPSC
Commissioner, and, if confirmed, I pledge my strongest commitment to
carrying out my responsibilities in this job. I am now delighted to
answer your questions.
______
a. biographical information
1. Name (Include any former names or nicknames used):
Robert Sanford Adler.
Nickname: Bob.
2. Position to which nominated: Commissioner, U.S. Consumer Product
Safety Commission.
3. Date of Nomination: June 9, 2009.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
Office: Room 4412 McColl Building, CB# 3490, McColl Building,
Kenan-Flagler Business School, University of North Carolina--
Chapel Hill, Chapel Hill, NC 27599-3490.
5. Date and Place of Birth: September 27, 1944; Reno, Nevada
(Washoe County).
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Spouse: Terrie Jean Gale, Police Attorney, Chapel Hill Police
Department, Chapel Hill, North Carolina; children: Paul Kogan
Adler (son), Age 27, Graduate student in History, Georgetown
University.
7. List all college and graduate degrees. Provide year and school
attended.
J.D., 1969, University of Michigan Law School.
A.B., 1966, University of Pennsylvania.
8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.
2003-present--Luther Hodges, Jr. Scholar in Law & Ethics
(effective 2006), Professor of Legal Studies, Kenan-Flagler
Business School.
2002-2003--Associate Dean, MBA Program, Kenan-Flagler Business
School.
1995-2002--Professor of Legal Studies, Kenan-Flagler Business
School.
1994-1998--Associate Dean, Undergraduate (BSBA) Program, Kenan-
Flagler Business School, University of North Carolina.
1987-1995--Associate Professor of Legal Studies, Kenan-Flagler
Business School, University of North Carolina (received tenure,
1990).
1985-1987--Counsel to the Subcommittee on Health and the
Environment, Committee on Energy and Commerce, U.S. House of
Representatives, Washington, D.C.
1984-1985--Of Counsel, Schmeltzer, Aptaker and Sheppard,
Washington, D.C.
1983-1985--Adjunct Professor, Washington College of Law,
American University, Washington, D.C.
1982-1984--Attorney-advisor to Commissioner Sam Zagoria, U.S.
Consumer Product Safety Commission, Washington, D.C.
1973-1982--Attorney-advisor to Commissioner R. David Piffle,
U.S. Consumer Product Safety Commission, Washington, D.C.
1971-1973--Deputy Attorney General, Director, Southwestern
Regional Office, Pennsylvania Bureau of Consumer Protection,
Pennsylvania Justice Department, Pittsburgh, PA.
1969-1971--Director, Consumer Division, Neighborhood Legal
Services Association, Pittsburgh, PA.
I have highlighted above the jobs in which I have had management/
supervisory responsibility (as opposed to strictly academic or
professional responsibility). Most of the jobs I have held since 1973
have related in some fashion, either by employment or my scholarship,
to consumer issues, and specifically to consumer product safety issues.
9. Attach a copy of your resume. A copy is attached.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last 5 years.
Member, Obama Transition Team and co-author of Report on U.S.
Consumer Product Safety Commission, 2008-2009.
Member, North Carolina Chief Justice's Commission on
Professional Responsibility, 2007-2008.
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last 5 years.
------------------------------------------------------------------------
Name/Location Position/Nature of Affiliation Dates
------------------------------------------------------------------------
Bylinski Consulting Provide negotiation and ethics From at least
Chapel Hill, NC training to Navy Advanced Mgt. 2001 to
Program at Navy Logistics Base present; 2-3
in Athens, GA times a year
on average
------------------------------------------------------------------------
Institute for Defense Provide negotiation training to From 2004 to
and Business, Chapel military officials who run present; once
Hill, NC depots and manufacture arsenal a year
(also, I taught one
negotiation course in MBA
Program run by IDB)
------------------------------------------------------------------------
Eastman Chemical Provide two-day negotiation 2003 to
Company training sessions present; 2-3
Kingsport, TN times a year
------------------------------------------------------------------------
C.B. Fleet, Inc. Provided a one-day negotiation January 2008
Lynchburg, VA program at company (one-time
headquarters event)
------------------------------------------------------------------------
Sherman Associates Provided a one-day negotiation January 2007
Minneapolis, MN program at company (one-time
headquarters event)
------------------------------------------------------------------------
N.C. State University Provided half-day negotiation Once in 2008
and Food Systems program to incoming deans of and once in
Leadership Institute, Schools of Agriculture 2005
Raleigh, NC
------------------------------------------------------------------------
Hutchison Law Group Provided one-day negotiation July 2007 (One-
Raleigh, NC training course to law firm time event)
------------------------------------------------------------------------
Wells Fargo Bank Provided two-day negotiation From at least
Des Moines, IA training programs for bank 2001 to 2007
officials
------------------------------------------------------------------------
Duke Corporate Provided evening program on September 2005
Education, Thomas ethics to VNU Corporation for (One-time
Center, Durham, NC Duke Ed Center event)
------------------------------------------------------------------------
McDonald's Corporation, Provided ethics training for From at least
Oak Brook, IL senior company officials 2000 to 2005
------------------------------------------------------------------------
Program on Public Life, Provided a lecture on ethics to Once in 2007 &
Center for the Study Conference of Southern once in 2008
of the American South, Legislators
University of North
Carolina, Chapel Hill,
NC
------------------------------------------------------------------------
Public Health Provided negotiation training 2003-2005 (no
Leadership Institute, program to public health work done
Gillings School of officials since 2005)
Public Health,
University of North
Carolina, Chapel Hill,
NC
------------------------------------------------------------------------
CMR Institute, Roanoke, Reviewed a textbook on ethics Once in 2004
VA in medical device field and once in
2007
------------------------------------------------------------------------
American College of Teach a half-day program on 2005 to
Obstetricians & negotiation skills present; once
Gynecologists a year
Leadership Institute,
NC Institute for
Public Health,
Carrboro, NC
------------------------------------------------------------------------
Consumers Union Member, Board of Directors. CU 1989 to 2009
Yonkers, NY is the publisher of Consumer (resigned, 5/
Reports. 2009)
------------------------------------------------------------------------
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.
Member, Board of Directors of Consumers Union, publisher of
Consumer Reports magazine, 1989-05/2009. No membership
restrictions.
Member, North Carolina Bar, 1989-present. No membership
restrictions.
Member, District of Columbia Bar (inactive), 1976-present. No
membership restrictions.
Member, Pennsylvania Bar (inactive), 1969-present. No
membership restrictions.
Member, Academy of Legal Studies in Business, 1987-present. No
membership restrictions.
Member and occasional Chair of various university committees
and academic organizations affiliated with University of North
Carolina-Chapel Hill. No membership restrictions.
Member, Chapel Hill Kehillah Synagogue, 2003. Membership
limited to Jewish faith or spouse (or partner) of Jewish member
of congregation.
Member, Judea Reform Synagogue, 1989-2003. Membership limited
to Jewish faith.
13. Have you ever been a candidate for and/or held a public office
(elected, non-elected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt: No.
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period.
Barack Obama, 2008--$825.00
John Edwards, 2007-2008--$595.00
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
Faculty Appreciation Award for Distinguished MBA Teaching
(2005-2009).
Recipient of Dean's Teaching Bonus (2005-2006) (2006-2007).
Gerald Barrett Faculty Award (excellence in teaching and
service in the UNC Kenan-Flagler MBA Program) 2004.
Best Article Award, CPR Institute for Dispute Resolution, for
article in Harvard Negotiation Law Review [``When David Meets
Goliath: Dealing With Power Differentials in Negotiations, 5
Harv. Neg. L. Rev. (Summer 2000) pp. 1-112 (co-authored with
Elliot Silverstein)].
President, The University of North Carolina at Chapel Hill,
Academy of Distinguished Teaching Scholars, 2003-2007
(association of faculty who have won university-wide teaching
awards).
Order of the Grail-Valkyries, 1999 (UNC Student and Faculty
Honorary Society).
Order of the Golden Fleece, 1997 (UNC Student and Faculty
Honorary Society).
Tanner Award for Excellence in Undergraduate Teaching
(university-wide teaching award), 1996.
O'Herron Scholar, (excellence in teaching and research) 1996.
Elected to Board of Directors, Consumers Union, publishers of
Consumer Reports (1989-2009) (resigned 5/2009).
McColl Award for Teaching, Research and Service Excellence,
1994. (UNC Business school award).
UNC Business School Undergraduate Program Distinguished
Teaching Award, 1990.
Federal Executive Board, Outstanding Achievement, 1973.
Reginald Heber Smith Fellow, 1969-1971.
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
(a) Refereed Articles:
``Mastering the Art of Negotiating With Liars,'' Sloan
Management Review, Vol. 48, No. 4 (Summer 2007) pp. 69-74.
``Flawed Thinking: Addressing Decision Biases in Negotiation,''
Ohio State Journal on Dispute Resolution, Vol. 20, No. 3 (2005)
pp. 683-774.
``When David Meets Goliath: Dealing With Power Differentials in
Negotiations,'' Harvard Negotiation Law Review, (co-authored
with Elliot Silverstein) Vol. 5 (Summer 2000) pp. 1-112.
``Here's Smoking At You, Kid: Has Tobacco Product Placement in
the Movies Really Stopped?'' University of Montana Law Review,
Vol. 60 (2) (Summer 1999) pp. 243-284.
``Emotions in Negotiation: How to Handle Fear and Anger,'' (co-
authored with Ben Rosen and Elliot Silverstein) The Negotiation
Journal Vol. 14 (2) (April 1998) pp. 161-179.
``The Preemption Pentad: Federal Preemption of Products
Liability Claims After Medtronic v. Lohr,'' (co-authored with
Rob Leflar) University of Tennessee Law Review Vol. 64 (Spring
1997) pp. 691-748.
``Encouraging Employers To Abandon Their ``No Comment''
Policies Regarding Job References: A Reform Proposal,'' (co-
authored with Ellen Peirce) Washington & Lee Law Review, Vol.
50, No. 4 (1996) pp. 1381-1469.
``Addressing Product Misuse at the Consumer Product Safety
Commission: Redesigning People Versus Redesigning Products,''
University of Virginia Journal of Law & Politics Vol. XI, No. 1
(Winter 1995) pp. 79-127, reprinted in Charles H. Koch, Jr.,
Fundamentals of Administrative Practice and Procedure (3rd ed.)
``Preemption and Medical Devices: The Courts Run Amok,'' (co-
authored with Richard Mann) University of Missouri Law Review
Vol. 59 (Fall 1994) pp. 895-945.
``Good Faith: A New Look At An Old Doctrine,'' (co-authored
with Richard A. Mann) Akron Law Review Vol. 28 (Summer 1994)
pp. 31-52.
``The Last Best Argument for Eliminating Reliance From Express
Warranties: `Real World' Consumers Don't Read Warranties,'' U.
of So. Carolina Law Review, Vol. 45 (Spring 1994) pp. 429-475.
``Avoiding Misuse of New Information Technologies,'' (co-
authored with Paul Bloom and George Milne) Journal of
Marketing, Vol. 58 (January 1994) pp. 98-110.
``The Legal, Ethical and Social Implications of the `Reasonable
Woman' Standard in Sexual Harassment Cases,'' (co-authored with
Ellen Peirce) Fordham Law Review, Vol. 361, No. 4 (March 1993)
pp. 773-827, reprinted in Ethics in the Workplace, E.
Ottensmeyer and G. McCarthy (1996) pp. 211-235.
``Contemporary Ethical Issues in Labor-Management Relations,''
Journal of Business Ethics (co-authored with William Bigoness),
Vol. 11 (1992) pp. 351-360.
``Cooperative Learning Groups in Undergraduate and Graduate
Contexts: Different Strokes for Different Folks,'' Journal of
Legal Studies Education (co-authored with Ed Neal), Vol. 9, No.
3, (Fall 1991) pp. 427-435.
``Stalking the Rogue Physician: An Analysis of the Health Care
Quality Improvement Act,'' American Business Law Journal, Vol.
28, No. 4, (1991) pp. 683-741.
``Shaping Up Federal Agencies: A Basic Training Program for
Regulators,'' The University of Virginia Journal of Law &
Politics, Vol. VI, No. 2 (co-authored with Stephen Klitzman &
Richard Mann) (1990) pp. 343-371.
``From `Model Agency' to Basket Case: Can the Consumer Product
Safety Commission Be Redeemed?'' Administrative Law Review,
Vol. 41, (1989) pp. 61-129.
``The 1976 Medical Device Amendments: A Step in the Right
Direction Needs Another Step in the Right Direction,'' Food
Drug Cosmetic Law Journal, Vol. 43, No. 3. pages 511-532
(1988). Revised and updated as ``Legislation Needed to Improve
the Medical Devices Law'' in The Medical Device Industry:
Science, Technology, and Regulation in a Competitive
Environment, pp. 531-549 (1990).
``Product Recalls: A Remedy in Need of Repair,'' Case Western
Law Review, Vol. 34, No. 4 (co-authored with Teresa M.
Schwartz) (1983-84) pp. 401-464.
``Cajolery or Command: Are Education Campaigns an Adequate
Substitute for Regulation?'' Yale Journal on Regulation, Vol.
1, No. 2 (1984) (co-authored with R. David Pittle) pp. 159-193.
``Commentary on Product Liability: An Interaction of Law and
Technology,'' Duquesne Law Review, Vol. 12 (1974) (co-authored
with R. David Pittle) pp. 487-495.
(b) Chapters in Books:
``Product Safety: The Consumer Product Safety Commission,'' in
Changing America: Blueprints for the New Administration (co-
authored with R. David Pittle) pp. 540-553 (1993).
``A Framework for Identifying the Legal and Political Risks of
Using New Information Technologies to Support Marketing
Programs,'' (co-authored with Paul N. Bloom & George Milne),
Monograph for Marketing Science Institute, Report No. 92-102,
February 1992, reprinted as ``Identifying the Legal and Ethical
Risks and Costs of Using New Information Technologies To
Support Marketing Programs,'' in The Marketing Information
Revolution, Harvard Business School Press, 1994, pp. 289-305
(1994).
``Psycholegal Aspects of Organizational Behavior: Assessing and
Controlling Risk'' in Handbook of Psychology and Law, eds.
Dorothy K. Kagehiro & William S. Laufer, pp. 523-541 (co-
authored with Alan J. Tomkins & Bart Victor)(1992).
``Product Safety: the Consumer Product Safety Commission'' in
America's Transition: Blueprints for the 1990s, (co-authored
with R. David Piffle) 268-86 (1989).
(c) Professional Publications:
``Thrust and Parry: The Art of Tough Negotiating,'' (co-
authored with Ben Rosen and Elliot Silverstein) Training &
Development, Vol. 50, No. 3 (March 1996) 42-48.
``New Leadership at the Consumer Product Safety Commission:
Will It Make A Difference?'' TRIAL, Vol. 30, No. 11 (November
1994) 63-67.
``The CPSC at 20 Is Still Immature,'' TRIAL, Vol. 28, No. 11
(November 1992) pp. 30-34.
``New CPSC Act: A Disappointment,'' TRIAL, Vol. 27, No. 11
(November, 1991) pp. 18-25.
``Manufacturers Blind CPSC to Product Hazards,'' TRIAL, Vol.
26, No. 10 (October, 1990) pp. 20-24.
``Toy Safety: No Kidding Around,'' TRIAL, Vol. 25, No. 11,
pages 44-47 (1989).
``Of Ketchup, Ozone, and Airline Delays: A Regulatory Legacy,''
Legal Times (April 11, 1988) pp. 18-20; reprinted as
``Rethinking Reagan's Deregulation Drive,'' Miami Legal Review
(May 2, 1988) pp. 9-10; and reprinted as ``Reagan's
Deregulation Efforts Have Done More Harm Than Good,'' Manhattan
Lawyer, (April 19-25, 1988) pp. 30-31.
``Will CPSC Halt U.S. Export of Hazardous Items? Legal Times
(April 16, 1984) pp. 113. ``Does CPSC's Past Bode Ill for
Future of Regulatory Negotiations?'' Legal Times (June 20,
1983)(co-authored with R. David Pittle) pp.10-11.
(d) Book Reviews:
``Innovation, Safety, and Costs: A Delicate Balance,'' Review
of Managing the Medical Arms Race: Innovation and Public Policy
in the Medical Device Industry, (University of California
Press) in Health Affairs, Vol. 12, No. 3 (Fall 1993) pp. 271-
273.
Review of The Product Liability Handbook: Prevention, Risk,
Consequence and Forensics of Product Failure, ed. Sam Brown
(Van Nostrand Reinhold 1991), Products Liability Law Journal,
Volume 3, No. 3 (May 1992) pp. 212-218.
Review of R. Mayer, The Consumer Movement: Guardians of the
Marketplace (Twayne 1989) and D. Vogel, Fluctuating Fortunes:
The Political Power of Business (Basic Books 1989), Journal of
Consumer Policy, Volume 14 (1991) pp. 243-248.
(e) Other Publications:
``Time to Strengthen Consumer Protection,'' Christian Science
Monitor (May 8, 1989)(coauthored with R. David Pittle) p. 18.
Lawsuits Without Lawyers, monograph on lawsuits in small claims
courts (1973) (coauthored with Carol Knutson, Larry Slesinger,
and David Worstell) pp. 1-49.
(f) Speeches and Presentations:
``Consumer Product Safety Commission: Reflections from the
Obama Transition Team'' to Conference of International Consumer
Product Health and Safety Officials (ICPHSO), Orlando, Florida
(February 25, 2009).
``One Million ATV Injuries Later. . . . Will the End of the
Consent Decree Bring More Consumer Litigation? The Government
Perspective'' Nationwide Teleconference by Telephone, December
2 and December 4, 1998.
``A Strategic Plan for ICPHSO,'' at conference of International
Consumer Product Health and Safety Officials, Orlando, Florida
(February 26-27, 1998).
``The Future of Product Safety and Product Liability,'' at
conference of International Consumer Product Health and Safety
Officials, Key West, Florida (February 28, 1997).
``Product Safety versus Product Liability,'' at conference of
International Consumer of Consumer Product Health and Safety
Officials (February 29, 1996).
``Remarks on CPSC Long-Range Plan,'' testimony before Chairman
and Commissioners of the U.S. Consumer Product Safety
Commission, Washington, D.C. (June 18, 1992).
``Regulation, Deregulation, and Reregulation,'' presented at
American Business Law Association Conference (August 17, 1990),
Toronto, Canada (jointly presented with Richard A. Mann).
``The Role of Federal Safety Standards in Product Liability
Litigation, presented at Conference on ``Avoiding Product
Liability Suits,'' Union College (July 12, 1990).
``Needed: A College for Regulators,'' presented at Southeastern
Regional Business Law Association Conference (Fall, 1988).
``Federal Deregulation and State Reregulation,'' presented to
the American Bar Association Committees on Consumer Product
Regulation and State Administrative Law of the Administrative
Law Section and the Section of Urban, State and Local
Government Law (August 11, 1987).
17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each
testimony: None.
18. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position?
I wish to serve as a Commissioner because of my long professional
and personal commitment to consumer issues and to the CPSC
specifically. I can think of few more critical causes than reducing
consumer-related injuries, illness, and death. I believe that my
background demonstrates an ongoing commitment to consumer product
safety issues and to consumer protection generally. After law school, I
worked as the Chief of the Consumer Division of a legal services
program in Allegheny County, PA. Thereafter, I served as a Deputy
Attorney General in charge of a regional office of the Bureau of
Consumer Protection for the PA Justice Department.
Subsequent to this consumer protection experience, I have spent the
better part of the past 36 years involved in the CPSC in one form or
another. I served as an attorney-adviser to two CPSC Commissioners (R.
David Pittle, from 1973-1982 and Sam Zagoria from 1982-1984). I
subsequently served as Counsel to the Subcommittee on Health and the
Environment of the House Energy and Commerce Committee doing oversight
of the CPSC. After that, I became a professor at the University of
North Carolina where I have written numerous articles on consumer
product safety issues. And from October 2008-January 2009, I served as
a member of the Obama Transition Team on which I coauthored the
Transition Team Report on the Consumer Product Safety Commission.
19. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
Under the governing act of the agency, the Consumer Product Safety
Act, the Chair has the primary responsibility for managing the agency.
Commissioners, however, share equally in setting agency policies and
have a broad right to monitor the implementation of those policies.
Given this shared responsibility, I commit myself to monitoring the
management and accounting activities of the CPSC in a conscientious
manner to the extent that the governing statute of the agency gives me
the authority and responsibility to do so.
My management experience began when Iran a regional office of the
Pennsylvania Justice Department in Pittsburgh where I had a staff of
roughly 7 investigators and administrative personnel. At the Kenan-
Flagler Business School, as an Associate Dean for the BSBA Program, I
ran the undergraduate business program which included 4 professional
staff and roughly 600 undergraduate students. Later, as Associate Dean
of the MBA Program, I ran the school's MBA Program, which included
roughly 10 professional staff and 600-plus MBA students.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
I believe that the first big challenge facing the CPSC is
implementing the multitude of new requirements contained in the
recently-enacted Consumer Product Safety Improvement Act. This will be
particularly challenging in light of the limited staff resources
available to the agency.
A second challenge is to make the CPSC, a very small agency, as
effective as it can be in protecting consumers. Being small is not
always a disadvantage if the agency can demonstrate a truly nimble and
thoughtful approach to product safety. I would work to use the digital
revolution to expand the agency's outreach and effectiveness both with
consumers and industry.
A third challenge is restoring morale within the agency among the
dedicated CPSC staff. Recent government-wide surveys reveal that CPSC
staff love the mission of the agency, but do not feel that it is a good
place to work. Strong steps should be taken to reinvigorate the staff.
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
Retirement Accounts: Virtually all of my retirement accounts are in
broad based mutual funds with no individual company holdings. The only
other large holding I have is a money market account in U.S.
Treasuries.
Ongoing Business Dealings: My ongoing relationships with clients
and customers have mainly been through the Kenan-Flagler Business
School's Executive Development Center which provides executive and
leadership programs to businesses and trade associations. I plan to
terminate all work with the Executive Development Center if I am
confirmed.
My other relationships outside of the Executive Development Center
lie in providing negotiation and ethics training sessions to several
groups, mainly the U.S. Navy, various public health groups, and Eastman
Chemical Company, a manufacturer of plastic products for industrial
use. I plan to terminate all educational training sessions with these
groups if I am confirmed.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain: No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the CPSC's designated agency ethics
official to identify potential conflicts of interest. Any potential
conflicts of interest will be resolved in accordance with the terms of
an ethics agreement that I have entered into with the Commission's
designated agency ethics official and that has been provided to this
Committee. I am not aware of any other potential conflicts of interest.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the CPSC's designated agency ethics
official to identify potential conflicts of interest. Any potential
conflicts of interest will be resolved in accordance with the terms of
an ethics agreement that I have entered into with the Commission's
designated agency ethics official and that has been provided to this
Committee. I am not aware of any other potential conflicts of interest.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
Administration and execution of law or public policy.
I have done no advocacy on issues of public policy beyond my
regular research and teaching activities as a professor with the
following two exceptions: (1) I served on the Obama Transition Team
from October 2008-January 2009, co-authoring the report on the Consumer
Product Safety Commission, and (2) in Fall 1999, I joined with several
professors of law across the country in filing an Amicus Curiae brief
in the case of Geier v. American Honda Motor Co., 1999 WL 966514, in
support of the Petitioners. Our brief argued that the state common law
claim of the petitioners should not be preempted by a regulation issued
by the National Highway Traffic Safety Administration.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
In connection with the nomination process, I have consulted with
the Office of Government Ethics and the CPSC's designated agency ethics
official to identify potential conflicts of interest. Any potential
conflicts of interest will be resolved in accordance with the terms of
an ethics agreement that I have entered into with the Commission's
designated agency ethics official and that has been provided to this
Committee.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
When I served as a Deputy Attorney General in the Bureau of
Consumer Protection in the Pennsylvania Justice Department, I
investigated an individual for fraud in 1972 or 1973. At one point, he
wrote a letter to the Bar Association that accused me of trying to
intimidate him during a negotiation for a consent decree (which he
never signed). As I recall, I disputed this complaint, pointing out
that the individual's attorney sat through the entire negotiation and
disagreed with his client's characterization of events. The Bar
Association dismissed the charge against me. Whether this was
considered a formal complaint, I cannot recall. When I last checked
with the Bar Association many years ago, I was told that they have no
record of any complaint listed against me. I cannot recall the name of
the complainant.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
Yes. I filed a lawsuit in 1973 or 1974 in Allegheny County, PA (or
in the district court for the western district of Pa.) as the plaintiff
in a case under the Fair Credit Reporting Act against a company that
had illegally run a credit check on me while I was investigating them
for possible consumer fraud violations. We settled the case before
trial, with the company paying me roughly $3,000. Despite my best
efforts, I cannot find my records of the case. I recently spoke to the
attorney who handled my case. He has changed law firms several times
over the years, and he cannot recall any of the details of the case
either.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain: No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain: No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by Congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
______
resume of robert sanford adler
Education
J.D., University of Michigan Law School, 1969.
A.B., University of Pennsylvania, 1966, cum laude.
Honors, Awards, Special Recognition
Faculty Appreciation Award for Distinguished MBA Teaching,
(2005-2006) (2006-2007) (2008-2009).
Recipient of Dean's Teaching Bonus, (2005-2006) (2006-2007).
Gerald Barrett Faculty Award (excellence in teaching and
service in the Kenan-Flagler MBA Program), 2004.
Best Article Award, CPR Institute for Dispute Resolution, for
article in Harvard Negotiation Law Review, 2001.
President, The University of North Carolina at Chapel Hill
Academy of Distinguished Teaching Scholars, 2003-2007.
Order of the Grail-Valkyries, 1999.
Order of the Golden Fleece, 1997.
Tanner Award for Excellence in Undergraduate Teaching
(university-wide teaching award), 1996.
O'Herron Scholar, (excellence in teaching and research) 1996.
Elected to Board of Directors, Consumers Union, publishers of
Consumer Reports (6th term; first elected, 1989).
McColl Award for Teaching, Research and Service Excellence,
1994.
Undergraduate Program Distinguished Teaching Award, 1990.
Federal Executive Board, Outstanding Achievement, 1973.
Reginald Heber Smith Fellow.
Employment
2003-present, Professor of Legal Studies, Kenan-Flagler
Business School.
2002-2003, Associate Dean, MBA Program, Kenan-Flagler Business
School.
1995-2002, Professor of Legal Studies, Kenan-Flagler Business
School.
1994-1998, Associate Dean, Undergraduate (BSBA) Program, Kenan-
Flagler Business School, University of North Carolina, Chapel
Hill, North Carolina.
1987-1995, Associate Professor of Legal Studies, Kenan-Flagler
Business School, University of North Carolina, Chapel Hill,
North Carolina (received tenure, 1990).
1985-1987, Counsel to the Subcommittee on Health and the
Environment Committee on Energy and Commerce, U.S. House of
Representatives, Washington, D.C.
1984-1985, Of Counsel, Schmeltzer, Aptaker and Sheppard,
Washington, D.C.
1983-1985, Adjunct Professor, Washington College of Law,
American University, Washington, D.C.
1982-1984, Attorney-advisor to Commissioner Sam Zagoria, U.S.
Consumer Product Safety Commission, Washington, D.C.
1973-1982, Attorney-advisor to Commissioner R. David Pittle,
U.S. Consumer Product Safety Commission, Washington, D.C.
1971-1973, Deputy Attorney General, Director, Southwestern
Regional Office, Pennsylvania Bureau of Consumer Protection,
Pennsylvania Justice Department, Pittsburgh, PA.
1969-1971, Director, Consumer Division, Neighborhood Legal
Services Association, Pittsburgh, PA.
Publications
(a) Refereed Articles:
``Mastering the Art of Negotiating With Liars,'' Sloan
Management Review, Vol. 48, No. 4 (Summer 2007) pp. 69-74.
``Flawed Thinking. Addressing Decision Biases in Negotiation,''
Ohio State Journal on Dispute Resolution, Vol. 20, No. 3 (2005)
pp. 683-774.
``When David Meets Goliath: Dealing With Power Differentials in
Negotiations,'' Harvard Negotiation Law Review, (co-authored
with Elliot Silverstein) Vol. 5 (Summer 2000) pp. 1-112.
``Here's Smoking At You, Kid: Has Tobacco Product Placement in
the Movies Really Stopped?'' University of Montana Law Review,
Vol. 60 (2) (Summer 1999) pp. 243-284.
``Emotions in Negotiation: How to Handle Fear and Anger,'' (co-
authored with Ben Rosen and Elliot Silverstein) The Negotiation
Journal Vol. 14 (2) (April 1998) pp. 161-179.
``The Preemption Pentad: Federal Preemption of Products
Liability Claims After Medtronic v. Lohr,'' (co-authored with
Rob Leflar) University of Tennessee Law Review Vol. 64 (Spring
1997) pp. 691-748.
``Encouraging Employers To Abandon Their ``No Comment''
Policies Regarding Job References: A Reform Proposal,'' (co-
authored with Ellen Peirce) Washington & Lee Law Review, Vol.
50, No. 4 (1996) pp. 1381-1469.
``Addressing Product Misuse at the Consumer Product Safety
Commission: Redesigning People Versus Redesigning Products,''
University of Virginia Journal of Law & Politics Vol. XI, No. 1
(Winter 1995) pp. 79-127, reprinted in Charles H. Koch, Jr.,
Fundamentals of Administrative Practice and Procedure (3rd
ed.).
``Preemption and Medical Devices: The Courts Run Amok,'' (co-
authored with Richard Mann) University of Missouri Law Review
Vol. 59 (Fall 1994) pp. 895-945.
``Good Faith: A New Look At An Old Doctrine,'' (co-authored
with Richard A. Mann) Akron Law Review Vol. 28 (Summer 1994)
pp. 31-52.
``The Last Best Argument for Eliminating Reliance From Express
Warranties: `Real World' Consumers Don't Read Warranties,'' U.
of So. Carolina Law Review, Vol. 45 (Spring 1994) pp. 429-475.
``Avoiding Misuse of New Information Technologies,'' (co-
authored with Paul Bloom and George Milne) Journal of
Marketing, Vol. 58 (January 1994) pp. 98-110.
``The Legal, Ethical and Social Implications of the `Reasonable
Woman' Standard in Sexual Harassment Cases,'' (co-authored with
Ellen Peirce) Fordham Law Review, Vol. 361, No. 4 (March 1993)
pp. 773-827, reprinted in Ethics in the Workplace, E.
Ottensmeyer and G. McCarthy (1996) pp. 211-235.
``Contemporary Ethical Issues in Labor-Management Relations,''
Journal of Business Ethics (co-authored with William Bigoness),
Vol. 11 (1992) pp. 351-360.
``Cooperative Learning Groups in Undergraduate and Graduate
Contexts: Different Strokes for Different Folks,'' Journal of
Legal Studies Education (co-authored with Ed Neal), Vol. 9, No.
3, (Fall 1991) pp. 427-435.
``Stalking the Rogue Physician: An Analysis of the Health Care
Quality Improvement Act,'' American Business Law Journal, Vol.
28, No. 4, (1991) pp. 683-741.
``Shaping Up Federal Agencies: A Basic Training Program for
Regulators,'' The University of Virginia Journal of Law &
Politics, Vol. VI, No. 2 (co-authored with Stephen Klitzman &
Richard Mann) (1990) pp. 343-371.
``From `Model Agency' to Basket Case: Can the Consumer Product
Safety Commission Be Redeemed?'' Administrative Law Review,
Vol. 41, (1989) pp. 61-129.
``The 1976 Medical Device Amendments: A Step in the Right
Direction Needs Another Step in the Right Direction,'' Food
Drug Cosmetic Law Journal, Vol. 43, No. 3. pages 511-532
(1988). Revised and updated as ``Legislation Needed to Improve
the Medical Devices Law'' in The Medical Device Industry:
Science, Technology, and Regulation in a Competitive
Environment, pp. 531-549 (1990).
``Product Recalls: A Remedy in Need of Repair,'' Case Western
Law Review, Vol. 34, No. 4 (co-authored with Teresa M.
Schwartz) (1983-84) pp. 401-464.
``Cajolery or Command: Are Education Campaigns an Adequate
Substitute for Regulation?'' Yale Journal on Regulation, Vol.
1, No. 2 (1984) (co-authored with R. David Pittle) pp. 159-193.
``Commentary on Product Liability: An Interaction of Law and
Technology,'' Duquesne Law Review, Vol. 12 (1974) (co-authored
with R. David Piffle) pp. 487-495.
(b) Chapters in Books:
``Product Safety: The Consumer Product Safety Commission,'' in
Changing America: Blueprints for the New Administration (co-
authored with R. David Pittle) pp. 540-553 (1993).
``A Framework for Identifying the Legal and Political Risks of
Using New Information Technologies to Support Marketing
Programs,'' (co-authored with Paul N. Bloom & George Milne),
Monograph for Marketing Science Institute, Report No. 92-102,
February 1992, reprinted as ``Identifying the Legal and Ethical
Risks and Costs of Using New Information Technologies To
Support Marketing Programs,'' in The Marketing Information
Revolution, Harvard Business School Press, 1994, pp. 289-305
(1994).
``Psycholegal Aspects of Organizational Behavior: Assessing and
Controlling Risk'' in Handbook of Psychology and Law, eds.
Dorothy K. Kagehiro & William S. Laufer, pp. 523-541 (co-
authored with Alan J. Tomkins & Bart Victor) (1992).
``Product Safety: the Consumer Product Safety Commission'' in
America's Transition: Blueprints for the 1990s, (co-authored
with R. David Pittle) 268-86 (1989).
(c) Professional Publications:
``Thrust and Parry: The Art of Tough Negotiating,'' (co-
authored with Ben Rosen and Elliot Silverstein) Training &
Development, Vol. 50, No. 3 (March 1996) 42-48.
``New Leadership at the Consumer Product Safety Commission:
Will It Make A Difference?'' TRIAL, Vol. 30, No. 11 (November
1994) 63-67.
``The CPSC at 20 Is Still Immature,'' TRIAL, Vol. 28, No. 11
(November 1992) pp. 30-34.
``New CPSC Act: A Disappointment,'' TRIAL, Vol. 27, No. 11
(November, 1991) pp. 18-25.
``Manufacturers Blind CPSC to Product Hazards,'' TRIAL, Vol.
26, No. 10 (October, 1990) pp. 20-24.
``Toy Safety: No Kidding Around,'' TRIAL, Vol. 25, No. 11,
pages 44-47 (1989).
``Of Ketchup, Ozone, and Airline Delays: A Regulatory Legacy,''
Legal Times (April 11, 1988) pp. 18-20; reprinted as
``Rethinking Reagan's Deregulation Drive,'' Miami Legal Review
(May 2, 1988) pp. 9-10; and reprinted as ``Reagan's
Deregulation Efforts Have Done More Harm Than Good,'' Manhattan
Lawyer, (April 19-25, 1988) pp. 30-31.
``Will CPSC Halt U.S. Export of Hazardous Items? Legal Times
(April 16, 1984) pp. 11-13.
``Does CPSC's Past Bode Ill for Future of Regulatory
Negotiations?'' Legal Times (June 20, 1983) (co-authored with
R. David Pittle) pp.10-11.
(d) Book Reviews:
``Innovation, Safety, and Costs: A Delicate Balance,'' Review
of Managing the Medical Arms Race: Innovation and Public Policy
in the Medical Device Industry, (University of California
Press) in Health Affairs, Vol. 12, No. 3 (Fall 1993) pp. 271-
273.
Review of The Product Liability Handbook: Prevention, Risk,
Consequence and Forensics of Product Failure, ed. Sam Brown
(Van Nostrand Reinhold 1991), Products Liability Law Journal,
Volume 3, No. 3 (May 1992) pp. 212-218.
Review of R. Mayer, The Consumer Movement: Guardians of the
Marketplace (Twayne 1989) and D. Vogel, Fluctuating Fortunes:
The Political Power of Business (Basic Books 1989), Journal of
Consumer Policy, Volume 14 (1991) pp. 243-248.
(e) Other Publications:
``Time to Strengthen Consumer Protection,'' Christian Science
Monitor (May 8, 1989) (coauthored with R. David Pittle) p. 18.
Lawsuits Without Lawyers, monograph on lawsuits in small claims
courts (1973) (coauthored with Carol Knutson, Larry Slesinger,
and David Worstell) pp. 1-49.
Presentations
``Consumer Product Safety Commission: Reflections from the
Obama Transition Team'' to conference of International Consumer
Product Health and Safety Officials, Orlando, Florida (February
25, 2009).
``The Ethics of Wal-Mart,'' to UNC Humanities Program (June 15,
2006).
``A Critical Look at `The Corporation,' by Joel Bakan,'' to
Parr Center for Ethics (April 26, 2006).
``Negotiation Issues and Gender,'' to CWIB (February 22, 2006).
``Ethical Issues of States Offering Tax and Other Incentives to
Attract Business,'' to North Carolina Institute for
Constitutional Law (December 8, 2005).
``Negotiation in the U.S. and Internationally,'' to Humphrey
Fellows (November 16, 2006).
``Enron and Ethics,'' to Kenan-Flagler faculty, staff and
students (February 20, 2002).
``Business Ethics for Lawyers, at Annual Legal Learning
Festival sponsored by UNC Law School, Friday Center (February
9, 2002).
``Pedagogical Skills in Business Ethics,'' to ITESM Faculty,
Monterrey, Mexico (October 27, 2000).
``Negotiation Skills,'' to North Carolina Association of Black
Lawyers, Wilmington, NC (June 23, 2000).
``Ethics and Leadership,'' to UNC-CH Graduate Student
Leadership Course (March 28, 2000).
``Ethics and Leadership,'' to North Carolina Leadership Forum
(February 3, 2000).
``Business Ethics for Lawyers,'' at Annual Learning Festival
sponsored by UNC Law School, Friday Center (February 12, 1999).
``One Million ATV Injuries Later . . . Will the End of the
Consent Decree Bring More Consumer Litigation? The Government
Perspective'' Nationwide Teleconference by Telephone, December
2 and December 4, 1998.
``A Strategic Plan for ICPHSO,'' at conference of International
Consumer Product Health and Safety Officials, Orlando, Florida
(February 26-27, 1998).
``The Future of Product Safety and Product Liability,'' at
conference of International Consumer Product Health and Safety
Officials, Key West, Florida (February 28, 1997).
``Product Safety Versus Product Liability,'' at conference of
International Consumer of Consumer Product Health and Safety
Officials (February 29, 1996).
``Business Ethics,'' at Festifall Conference by UNC Law School
(February 2, 1996).
``Medical Devices and Preemption: The Courts Run Amok,'' at
Academy of Legal Studies in Business, Dallas Texas (August 12,
1994) (co-authored with Richard Mann).
``Good Faith: Let's Be Objective About It,'' presented at
Academy of Legal Studies in Business, Boulder, CO. (August 23,
1993) (jointly presented with Richard Mann).
``Forum on the `Litigation Explosion,' '' presented at joint
session of Wake Forest Law School and Business School, Winston-
Salem, NC (September 16, 1992).
``The Legal, Ethical and Social Implications of `The Reasonable
Woman' Standard in Sexual Harassment Cases,'' presented at
Academy of Legal Studies in Business, Charleston, S.C. (August
21, 1992) (jointly presented with Ellen Peirce).
``Remarks on CPSC Long-Range Plan,'' testimony before Chairman
and Commissioners of the U.S. Consumer Product Safety
Commission, Washington, D.C. (June 18, 1992).
``Regulation, Deregulation, and Reregulation,'' presented at
American Business Law Association Conference (August 17, 1990),
Toronto, Canada (jointly presented with Richard A. Mann).
``The Role of Federal Safety Standards in Product Liability
Litigation, presented at Conference on ``Avoiding Product
Liability Suits,'' Union College (July 12, 1990).
``Stalking the Rogue Physician: An Analysis of the Health Care
Quality Improvement Act of 1986 and its Implementation,''
presented at American Business Law Association Conference
(Summer, 1989).
``Challenges in Teaching Business Ethics to First Year MBA
candidates,'' presented at American Business Law Association
Conference (Summer, 1989).
``Needed: A College for Regulators,'' presented at Southeastern
Regional Business Law Association Conference (Fall, 1988).
``Federal Deregulation and State Reregulation,'' presented to
the American Bar Association Committees on Consumer Product
Regulation and State Administrative Law of the Administrative
Law Section and the Section of Urban, State and Local
Government Law (August 11, 1987).
``Medical Malpractice: Current Developments,'' presented to the
Graduate School of Business Administration, Boston University
(November, 1987).
``Congressional Perspectives on Pending Medical Device
Legislation,'' presented to the National Electrical
Manufacturers Association (September 19, 1987).
Editor or Reviewer
Elected to Editorial Board, Food and Drug Law Journal, 1999.
Staff Editor, American Business Law Journal, 1990-1993.
Reviewer, American Business Law Journal, 1989-90.
Teaching
Undergraduate: Introduction to Business Law, BA 140; Commercial
Paper and Sales, BA 141.
MBA: Negotiation, BA 253; Ethical Aspects of Management, BA
293; Business-Government Relations, BA 299; Strategy Course, BA
295.
Management Education: Taught numerous Executive Education
courses with evaluations that generally range above 4.70 out of
5.0; Co-developed and ran Leadership Program for Water
Industry.
Course Development
Developed Negotiation Course, 1995.
Coordinator, MBA Business Ethics Course, 1991-2000.
Helped design and develop Business Ethics course for MBA and
Executive MBA Programs, 1988-90.
Designed and taught Business-Government Relations MBA course,
1990-2004.
Developed regulatory materials for Strategy Course, 1994.
Professional Activities
Member of North Carolina Bar, 1989-present.
Member of Washington, D.C. Bar, 1976-present (inactive).
Member of Pennsylvania Bar, 1969-present (inactive).
Academy of Legal Studies in Business, 1987-present.
Member, Business Ethics Section of ALSB, 1989-present.
University and Business School Service
President, Academy of Distinguished Teaching Scholars, 2003-
present.
Chair, Committee on Student Conduct, 2006-present.
Chair, Faculty Advisory Committee, 2007-present.
Member, Board of Advisors, Parr Ethics Center, 2006-present.
Member, Chancellor's Committee on Reaccreditation for SACS,
2004-2006.
Chair, KFBS Faculty Advisory Committee (FAC), 2006.
Member, Faculty Advisory Committee, 2004.
Member, Promotion and Tenure Committee, 2004-present.
Member, MAC Advisory Committee, 2002-2005.
Chair, Committee to Review Gene Nichols for Reappointment as
Dean, UNC Law School, 2003.
Chair, Committee on Student Conduct, 2000-2001.
Member, Committee to Review Risa Palm for reappointment as
Dean, College of Arts and Science, 2001.
Member, Facilities Use Review Group, 2000.
Member, Executive Committee of Faculty Council, 1999.
Member, UNC Task force on Student Evaluation of Teaching, 1999.
Associate Dean, Undergraduate Program, 1994-1998.
Chair, Kenan-Flagler Committee on Diversity, 1993, 1994, 1995
and 1997.
Chair, UNC Committee on Student Conduct, 1993-94.
Member, Dean Search Committee, 1997.
Member, Tanner Teaching Awards, Committee, 1997.
Member, Chancellor's Task Force on Intellectual Climate at UNC,
1996-1997.
Member, Kenan-Flagler Distance Learning Committee, 1996.
Member, Kenan-Flagler Reorganization Task Force, 1994.
Member and Chair of numerous UNC University Hearings Boards,
1987-present.
Member, Board of Directors of Student Legal Services, 1990-
2008.
Coordinator, Diversity Sessions, Orientation Week for Incoming
MBA Students, 1989-1993.
National and Community Service
Member, Board of Directors, Consumers Union, 1989-present.
Member, Chief Justice's Commission on Professionalism, 2007-
2008.
Board of Directors, International Consumer Product Health and
Safety Organization, 1997.
Evaluator, BBA Program, University of Iowa, 1995.
Member, Committee of the Institute of Medicine, National
Academy of Science to Study FDA Advisory Committees, 1991-93.
Member, Committee of the Institute of Medicine, National
Academy of Science to Study the Operations of the Nuclear
Regulatory Commission, 1994-1995.
Chair, Committee to Review the Operations of the North Carolina
Wildlife Federation, 1992-93.
Personal
Born September 27, 1944
Married, one child
Address
[Not available to the public].
Kenan-Flagler Business School
University of North Carolina
CB# 3490, Carroll Hall
Chapel Hill, NC 27599-3490
Senator Pryor. Ms. Northup?
STATEMENT OF HON. ANNE M. NORTHUP, COMMISSIONER-DESIGNATE, U.S.
CONSUMER PRODUCT SAFETY COMMISSION
Ms. Northup. Good morning, Mr. Chairman, Ranking Member
Hutchison, and members of the Senate Commerce, Science, and
Transportation Committee. I deeply appreciate the opportunity
to appear before you today, especially this week with all the
important matters competing for your attention.
I am so honored to have been nominated by President Barack
Obama to serve as a Commissioner of the United States Consumer
Product Safety Commission. I thank the President for the
opportunity to serve. If confirmed by the Senate, I will do my
best to see that the Consumer Product Safety Commission
effectively and efficiently protects the well-being of our
children and families and enforces the laws for which it has
responsibility.
I want to introduce to you my husband, Woody Northup, who
is with me today. He and I have been married for 40 years. We
met on our first day of college, he as a student at Notre Dame
and I as a freshman at St. Mary's College, which is across the
street.
Our lives have been a special adventure. We were blessed
with six wonderful children, two of whom are adopted. Woody
started his own business with only seven employees, moving into
a building with a dirt floor. We had some very lean years. Two
of our children are cancer survivors, and one very sadly died
suddenly of a heart attack 3 years ago. I want to thank my
loving husband for being my dearest friend and best adviser
throughout my life and my career. I am not sure that this is
what he pictured when we were married in 1969.
I grew up in Louisville, Kentucky, the second of 11
children, 10 girls and 1 boy. You can see why we all thought it
was a woman's world. My parents were happy, hard-working,
organized, and made raising 11 children look easy. We were all
encouraged to study hard, participate in athletics, volunteer
at an early age, and live a meaningful life. We took different
paths. I was the only one even remotely involved in politics.
One of my sisters, Mary T. Meagher Plant, is being inducted
into the Olympic Hall of Fame next week in Chicago as a three-
time Olympian and a 20-year World Record holder in swimming.
If I am confirmed as a Commissioner, I want to assure the
Committee that I will independently and faithfully protect the
American families from unsafe products, enforce the laws that
the Commission must enforce, ensure transparency to all
concerned and do my part to build a collaborative environment
with those at the Commission.
First, I would like to address my record of independence.
The Commission is comprised of two Commissioners from each
party and a Chair from the party of the President. However, I
am sure that you expect the Commissioners to rise above their
party designations and act as a team to protect the American
people. I believe that I have a record of independence and
wanted to share a few examples.
In the Kentucky State Legislature, I introduced the first
law that limited the age when children could buy tobacco
products. When I was elected in 1987 to the legislature, in
Kentucky, if you could walk, you could legally enter a store
and buy a pack of cigarettes at any age. Republicans and
Democrats alike in our legislature supported the tobacco
industry because of our tobacco farmers. I quietly hammered
away at the health issues and held my ground and influenced
both the legislature and the Executive Branch to begin
addressing these health issues. When I was first elected to
Congress, Louisville was still the home of the world
headquarters of Brown and Williamson and had a Philip Morris
plant that employed 4,000 employees. But that did not stop me.
Throughout my career in Congress, I chose not to accept
contributions from the tobacco companies because I believed
that their products were inherently unsafe.
In Congress, I felt that banks should not also be our real
estate agents, believing that it could lead to unwise loans to
families, jeopardizing their financial well-being in order to
realize short-term gains in commissions. Although the banking
community had been one of my most supportive industries, from
that time forward the industry supported my opponents. I, by
the way, was the author of the amendment that stopped that from
going forward.
The pharmaceutical companies had been one of my largest
contributors until I became concerned about the discrepancy
between the price American families paid for prescriptions and
the price paid in other developed countries for exactly the
same medicine. Thus, I supported allowing American families and
industry the right to purchase drugs in the international
marketplace. My independence cost me the support of that
industry also.
My life's record of public service has been one of tackling
tough and complicated issues, looking for solutions that are
innovative and fair to all concerned. If I am confirmed, I will
be joining the Commission at a very exciting and challenging
time. I look forward to being a part of the solution and making
a positive contribution to those challenges.
Let me, since I know my time is running out, in closing say
that I would like to return to the beginning of my testimony. I
served in the Kentucky Legislature for 9 years and then in
Congress for 10 years, and in all those years, I felt that my
degree in economics and my professional work was only half of
what I brought to each challenge. The other part was being the
mother of six children.
When our children were young, they only received toys twice
a year, on their birthdays and on Christmas, and even that was
a tremendous financial challenge. I worried about what my
children needed and how I was going to pay for it. It never
occurred to me that I should also worry about the safety of
that toy. I had never heard of the Consumer Product Safety
Commission, but I had faith in the American system of
protection.
Families need to have faith in the system again. They have
to be able to count on us. If I am confirmed, I will do
everything possible to think of the families I am responsible
for and to protect them as my own.
Thank you and I look forward to answering your questions.
[The prepared statement and biographical information of Ms.
Northup follows:]
Prepared Statement of Hon. Anne M. Northup, Commissioner-Designate,
U.S. Consumer Product Safety Commission
Good afternoon, Mr. Chairman, Ranking Member Hutchison, and members
of the Senate Commerce, Science, and Transportation Committee. I deeply
appreciate the opportunity to appear before you today, especially this
week with all of the important matters competing for your attention.
I am honored to have been nominated by President Barack Obama to
serve as a Commissioner of the United States Consumer Product Safety
Commission. I thank the President for the opportunity to serve. If
confirmed by the Senate, I will do my best to see that the Consumer
Product Safety Commission effectively and efficiently protects the well
being of our children and families and enforces the laws for which it
has responsibility.
I want to introduce to you my husband, Woody. He and I have been
married for forty years. We met on our first day of college, he as a
student at Notre Dame and I as a freshman at St. Mary's College which
is across the street.
Our lives have been a special adventure: we were blessed with six
wonderful children, two of them adopted; Woody started his own business
with only 7 employees, moving into a building with a dirt floor. We had
some very lean years. Two of our children are cancer survivors, and one
very sadly died suddenly of a heart attack 3 years ago. I want to thank
my loving husband for being my dearest friend and best adviser
throughout my life and my career. I am not sure this is what he
pictured when we were married in 1969.
I grew up in Louisville, Kentucky, the second of eleven children,
ten girls and one boy. You can see why we all thought it was a
``women's world''. My parents were happy, hard working, organized, and
made raising eleven children look easy and fun. We were all encouraged
to study hard, participate in athletics, volunteer at an early age and
live a meaningful life. We took different paths; I was the only one
even remotely involved in politics. One of my sisters, Mary T. Meagher,
is being inducted into the Olympic Hall of Fame next week in Chicago as
a three-time Olympian and a twenty-year World Record holder in
swimming.
If I am confirmed as a Commissioner, I want to assure the Committee
that I will serve independently and faithfully to protect American
families from unsafe products, enforce the laws that the Commission
must enforce, ensure transparency to all concerned and do my part to
build a collaborative environment with those at the Commission.
First, I would like to address my record of independence. The
Commission is comprised of two Commissioners from each party and the
Chair from the party of the President. However, I am sure you expect
Commissioners to rise above their party designation and act as a team
to protect the American people. I believe that I have a record of
independence and wanted to share a few examples:
In the Kentucky State Legislature, I introduced the first
law that limited the age when children could buy tobacco
products. When I was elected in 1987, in Kentucky, if you could
walk, you could legally enter a store and buy a pack of
cigarettes at any age. Republicans and Democrats alike in our
Legislature supported the tobacco industry because of our
tobacco farmers. I quietly hammered away at the health issues
and held my ground and influenced both the legislature and the
Executive Branch to begin addressing these health issues. When
I was first elected to Congress, Louisville was still home to
the world headquarters of Brown and Williamson and had a Philip
Morris plant that employed 4000 employees. Throughout my career
in Congress, I chose not to accept contributions from the
tobacco companies because I believe that their products are
inherently unsafe.
In Congress, I felt that banks should not also be our real
estate agents, believing that it could lead to unwise loans to
families, jeopardizing their financial well being in order to
realize short-term gains in commissions. Although the banking
community had been one of my most supportive industries, from
that time forward, the industry supported my opponents.
The pharmaceutical companies had been one of my largest
contributors until I became concerned about the discrepancy
between the price American families paid for prescriptions and
the price paid in other developed countries for the same
medicine. Thus, I supported allowing American families and
industry the right to purchase drugs in the international
marketplace. My independence cost me the support of that
industry.
My life's record of public service has been one of tackling tough
and complicated issues, looking for solutions that are innovative and
fair to all concerned. If I am confirmed, I will be joining the
Commission at a very exciting and challenging time. I look forward to
being a part of the solution and making a positive contribution toward
meeting those challenges.
The position for which the President has nominated me was created
in the 2008 Consumer Product Safety Improvement Act. This legislation
created new, sweeping responsibilities for the Consumer Product Safety
Commission. Its implementation will require new rules, new standards,
new testing laboratories, new ways to certify imports and new
enforcement actions.
If I am confirmed, I will be joining the Commission under the
guidance of the new Chairwoman, Inez Tenenbaum. I want to thank
Chairman Tenenbaum for graciously reaching out to me and congratulating
me on my nomination, all the way from Singapore where she is attending
product safety meetings. I would do all in my power to be a valuable
team member. She is already setting in motion a collaborative effort to
address the current challenges and I would hope to support her efforts
and contribute to meeting these challenges.
Chairman Tenenbaum testified that one of her highest priorities
would be to work closely with the Committee, keeping it informed of
progress to meet statutory deadlines. I understand how important that
is. As a former Member of Congress, I remember how completely
frustrating it was to need an answer from an Agency and not be able to
get it. I understand, Mr. Chairman and Ranking Member Hutchison, that
you begin to hear from your colleagues if agencies do not respond, fail
to meet deadlines or have constituents that feel that their issues and
views are not even heard. If I am confirmed, I will bring that
firsthand knowledge and respect for this Committee's perspective to my
service.
Previously, as a member of the Kentucky State Legislature, I had an
opportunity to address the challenges of implementing major reforms. In
1990, the Kentucky Legislature passed a sweeping reform of their
education system, the Kentucky Education Reform Act (KERA). It
completely revamped funding, the curriculum, teacher training,
governance, applied new innovative statewide student testing, and a
rewards and sanctions system to hold schools and school districts
accountable. For many years it was help up as a national standard.
But, as this Committee well knows, new sweeping laws are tough to
implement. The Governor and the legislative leadership appointed three
legislative members to a new public-private partnership, the
Partnership for Education Reform, to facilitate the implementation of
the new law. As an appointee of the Speaker of the House (who was not a
Republican), I had an opportunity to work on the day-to-day issues to
meet the deadlines, address the criticisms (people affected by change
often resist change but sometimes unforeseen problems arisethe key is
to know the difference), stretch the funding to meet the mandates,
develop training, measure progress with respect to time and
effectiveness, communicate with the public and answer questions from my
fellow members of the Legislature who wondered what was taking so long.
I believe the Consumer Product Safety Improvement Act is meeting
the same challenges. It needs leaders who are determined to implement
it fairly, as it was intended to be applied, address the problems,
listen to those it affects, find creative, affordable and timely
solutions and ensure that this law does exactly what the Congress
intended: provide better protection for American families. If I am
confirmed I will use my talents and experience to live up to your
expectations for the Consumer Product Safety Commission.
Today, more than two-thirds of all consumer products are imported.
That is an enormous difference from 1973 when the CPSC was created and
began protecting American families and children. The Consumer Product
Safety Improvement Act provides new resources and authority to ensure
that imported products meet American safety standards. Currently two-
thirds of all product recalls are imports, so there is good reason for
the Commission to efficiently and effectively address the question of
imports.
If I am confirmed, I will look for innovative ways to meet this
enormous challenge of imports, making every dollar we spend a good
investment for safety. Today, emerging technologies create new and
different opportunities to test, check, track and protect the American
public. If the Commission builds on cooperative efforts with other
countries, expanding the use of independent third party laboratories
for testing and better technology to track what comes in through our
ports, we can do more with the resources you have given the Commission.
In closing, I would like to return to the beginning of my
testimony. I have served in the Kentucky Legislature for 9 years and
then in Congress for 10 years and in all those years I felt that my
degree in Economics and my professional work was only half of what I
brought to each challenge. The other part was being the mother of six
children. When our children were young, they only received toys twice a
year: on their birthdays and Christmas and even that was a financial
challenge. I worried about what my children needed and how I was going
to pay for it. It never occurred to me that I should also worry about
the safety of the toy. I had never heard of the Consumer Product Safety
Commission, but I had faith in the American system of protection.
Families need to have faith in the system again. They have to be
able to count on us. If I am confirmed, I will do everything possible
to think of the families I am responsible to protect as my own.
Thank you and I look forward to answering any questions that you
may have.
______
a. biographical information
1. Name (Include any former names or nicknames used):
Anne Clifford Meagher (maiden name).
Anne Meagher Northup (married name) 1969-present.
2. Position to which nominated: Commissioner, Consumer Product
Safety Commission.
3. Date of Nomination: August 3, 2009.
4. Address (List current place of residence and office addresses):
Residence: Information not released to the public.
5. Date and Place of Birth: January 22, 1948; Louisville, KY.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage).
Spouse: Robert Wood Northup, CEO, Radio Sound, Inc.; children:
Robert David Northup, 37 years old; Katherine McCrystal Northup
Smith, 35 years old; Joshua James Northup, deceased; Kevin Wood
Northup, 32 years old; Erin Murnane Northup, 30 years old; Mark
Meagher Northup, 27 years old.
7. List all college and graduate degrees. Provide year and school
attended.
St. Mary's College, BA Economics and Business, 1970.
8. List all post-undergraduate employment, and highlight all
management-level jobs held and any non-managerial jobs that relate to
the position for which you are nominated.
High School Mathematics Teacher, 1969-1971.
Ford Motor Company DSO Dept., 1972-1974.
State Representative; District 32, 1987-1996.
Member of Congress; Kentucky-3, 1997-2006.
9. Attach a copy of your resume. A copy is attached.
10. List any advisory, consultative, honorary, or other part-time
service or positions with Federal, State, or local governments, other
than those listed above, within the last 5 years.
CARES Commission, Department of Veterans Hospital, Local
Advisory Panel.
Louisville Arena Task Force.
Ohio River Bridges, Design Selection Committee.
Member, U.S. Helsinki Commission.
House Reading Caucus, Founder and Co-Chair.
Congressional Coalition on Adoption, Board Member.
11. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational, or other institution within the last 5 years: None.
12. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age, or handicap.
Member, Women's Club of Louisville (all women's organization)
1993-present.
Forum Club, Naples, Florida; 2003-present. Served on the
Program Committee 2008-2009.
Member, Queen's Daughters (Catholic women's organization that
benefits Catholic Charities and infant adoption programs--all
women membership) 1990-present.
Member, Metropolitan Republican Women's Club--(all women
members) 1992-present.
The United States Association of Former Members of Congress--
2007-present.
Member, Holy Spirit Catholic Church--1986-present.
Member, Capitol Hill Preservation Society (2008-present).
13. Have you ever been a candidate for and/or held a public office
(elected, non-elected, or appointed)? If so, indicate whether any
campaign has any outstanding debt, the amount, and whether you are
personally liable for that debt.
State Representative, 1987-1996 (no debts).
Member of Congress 1997-2006 (no debts).
Primary Campaign for Governor 2007 (Closed the campaign
committee with an unpaid loan of $681,000 to me personally
which just became a personal loss.)
Candidate for Congress 2008--no debt.
14. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Also list all offices you
have held with, and services rendered to, a state or national political
party or election committee during the same period.
Anne Northup:
Contributed to:
Northup for Congress: $4,600--2008.
McConnell for Senate: $4,600--2008.
Northup for Congress: $2,000--1996.
Northup for Congress: $2,000--1998.
Northup for Congress: $2,000--2000.
Northup for Congress: $2,000--2002.
Northup for Congress: $4,000--2004.
Northup for Congress: $4,200--2006.
Fletcher for Governor: $1,000--2003.
Northup-Hoover 2007: $1,000--2007.
Northup-Hoover 2007 (loan): $500,000--2007.
Northup-Hoover 2007 (loan): $100,000--2007.
Northup-Hoover 2007(loan): $100,000--2007.
Candidate Debt Assumption: $681,958.14, Repayment of
loan: $18,041--2008.
R. Wood Northup
Contributed to:
Northup for Congress: $2,000--1996.
Northup for Congress: $2,000--1998.
Northup for Congress: $2,000--2000.
Northup for Congress: $2,000--2002.
Northup for Congress: $4,000--2004.
Northup for Congress: $4,200--2006.
Northup for Congress: $4,600--2008.
Bush for President: $1,000--1999.
Republican Party of Kentucky: $1,500--2000.
Alice Forgy Kerr for Congress: $2,000--2003.
Geoff Davis for Congress: $1,000--2003.
Lazio Inc. $1,000--2000.
Bush-Cheney '04 (Primary) $2,000.
Republican Party of Kentucky: $500--2001.
Republican Party of Kentucky: $500--2002.
Schmidt for Congress Committee: $250.
Republican Party of KY: $500--2004.
Bob Franks for U.S. Senate: $1,000--2000.
McConnell Senate Committee $2,000--2002.
McConnell Senate Committee $4,600--2008.
Louisville and Jefferson County Republican Party:
$5,000--2002.
Rebecca Jackson for County Judge Executive: $500--1998.
Northup-Hoover: $1,000--2007.
Ernie Fletcher for Governor: $1,000--2003.
Shellie Knopf for Circuit Court Clerk: $1,000--2007.
David Osborne for State Representative: $1,000--2008.
Downard for Mayor: $1,000--2006.
John May for Property Valuation Administrator: $1,000--
2006.
Bob DeWeese for State Representative: $500--2008.
15. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals, and any other special recognition
for outstanding service or achievements.
Honorary Degree St. Mary's College, Notre Dame, Indiana; Degree
of Doctor of Laws, Honoris Causa.
I am attaching a link to a column written about that address:
http://www.patrickkillough.com/education/belles.html
Community Service Recognition Award Louisville Defender
Newspaper (African American Weekly newspaper in Louisville).
Adam Smith Award--BIPAC.
Legislator of the Year NOISE (National Organization to Insure a
Sound-controlled Environment).
Silver Anchor Award--Friends of the Waterfront.
Congressional Partnership Award--National Association of
Development Organizations.
John Thompson Foundation Outstanding Achievement Award.
Citizen of the Year Award--Optimist Club of Louisville.
Literacy Leadership Award--Kentucky Reading Association.
Legislative Achievement in Economic Development--Southern
Economic Development Council.
Defender of Religious Freedom--Zeta Beta Tau Fraternity.
Rolapp Award--American Horse Council.
Community Healthcare Champion Award--National Association of
Community Health Centers, Inc.
First Gethsemane Baptist Church Leading Ladies Award.
Public Policy Advocate of the Year--National Association of
Women Business Owners.
Advocate for the Education of Blind and Visually Impaired
Students--American Printing House for the Blind.
Legislator of the Year--The Environmental Industry Association.
Outstanding Freshman Member of Congress--National Industries
for the Blind.
16. Please list each book, article, column, or publication you have
authored, individually or with others. Also list any speeches that you
have given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
During my 9 years in the State Legislature and 10 years in the U.S.
Congress, I wrote many columns for newspapers and newsletters and spoke
to many groups about relevant legislation and issues important at that
moment. However, I have not written anything that would relate to the
issues before the Consumer Product Safety Commission.
17. Please identify each instance in which you have testified
orally or in writing before Congress in a governmental or non-
governmental capacity and specify the date and subject matter of each
testimony.
March 6, 1997, House Transportation and Infrastructure
Committee, The Kentucky and Indiana Bridge Project.
November 19,1992, House Ways and Means Committee, Tobacco
Control and in favor of tobacco excise taxes.
March 28, 2001, House Committee on Education and the Workforce,
No Child Left Behind.
18. Given the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated, what in your background or employment experience do you
believe affirmatively qualifies you for appointment to the position for
which you have been nominated, and why do you wish to serve in that
position.
My experience as a former Member of Congress gives me a unique
perspective for the CPSC. I understand the expectations of Members of
Congress that the letter and the spirit of legislation must be
administered efficiently and effectively. The constituents of elected
officials expect to get the answers they need and a fair and
responsible application of the current law. While it is important that
the private sector not wait interminable lengths of time for
bureaucratic answers, it is also important that the laws on the books
be interpreted fairly and completely.
When there are problems with either the meaning of the legislation
or the application of the law, Members of Congress need to be apprised
of what these problems may be and given a chance to respond and
clarify. I believe I can help build a stronger relationship between the
Congress and the Consumer Product Safety Commission as opposed to the
``separate orbit'' type of relationship that sometimes exists between
agencies and the Congress.
19. What do you believe are your responsibilities, if confirmed, to
ensure that the department/agency has proper management and accounting
controls, and what experience do you have in managing a large
organization?
I believe proper management and financial controls are important. I
will do my part and help the Chairwoman of the Consumer Product Safety
Commission to ensure all proper controls are in place.
As Committee Members know so well, serving in Congress requires
multitasking, compliance with strict financial, ethical and campaign
laws and timelines.
I am proud of my record as an effective Member of Congress,
recognized by my peers and my constituents as a leader who listened,
understood, tackled and resolved challenges in Washington and for my
district. This was done simultaneously with overseeing a challenging
campaign every 2 years (three plus million dollars each) as one of the
most targeted Members of Congress in each election cycle. By committing
myself to personal hard work, organizing, delegating, prioritizing,
team building and setting a high standard, I was able to manage these
responsibilities efficiently and effectively.
I believe I can bring the same level of leadership, management,
team building and hard work to the CPSC.
20. What do you believe to be the top three challenges facing the
department/agency, and why?
The Consumer Product Safety Commission (CPSC) has enormous
responsibilities to protect American families including oversight of
15,000 products. The priorities will be set by Chairwoman Tenenbaum but
these are the top three challenges as I see them:
1. The Consumer Product Safety Improvement Act gives the CPSC
new responsibilities. Implementing these improvements
effectively and efficiently will be an enormous challenge that
the CPSC must meet.
2. Imports make up two thirds of consumer products today. The
CPSC must develop better and more efficient ways to ensure
these products meet our safety standards. The challenges of the
CPSIA, imports and the increasing speed with which new products
emerge in the marketplace financially and technically strain
the resources of the CPSC. That means it is especially
important to look for technically feasible ways to meets the
Commission's responsibilities more efficiently.
3. Several of the CPSC's current investigations are
particularly important today and need prioritizing, none more
prominent than the issue of Chinese Drywall. The widespread use
of this product, the severity of the health consequences, and
the fact that the remedy is cost prohibitive for most families
make this burning issue a priority' for the Commission.
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. Please include information related to retirement
accounts.
The only retirement account I have is my Federal TSP account.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation, or practice with any business,
association or other organization during your appointment? If so,
please explain: No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
During the nomination process, I have consulted the Office of
Government Ethics and the Consumer Product Safety Commission's
designated agency ethics official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Commission's designated ethics official and that
agreement has been provided to this Committee. I am not aware of any
other potential conflicts of interest.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated.
During the nomination process, I have consulted the Office of
Government Ethics and the Consumer Product Safety Commission's
designated agency ethics official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Commission's designated ethics official and that
agreement has been provided to this Committee. I am not aware of any
other potential conflicts of interest.
5. Describe any activity during the past 10 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
Administration and execution of law or public policy.
I served as a Member of Congress: 1996-2006.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
During the nomination process, I have consulted the Office of
Government Ethics and the Consumer Product Safety Commission's
designated agency ethics official to identify potential conflicts of
interest. Any potential conflicts of interest will be resolved in
accordance with the terms of an ethics agreement that I have entered
into with the Commission's designated ethics official and that
agreement has been provided to this Committee. I am not aware of any
other potential conflicts of interest.
Should I be confirmed, I would continue to consult the ethics
official at the CPSC on any matters of concern and take their
recommendations to avoid any conflict of interest.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain: No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority of any Federal,
State, county, or municipal entity, other than for a minor traffic
offense? If so, please explain: No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
I served on a non-profit Board that was sued by the ACLU.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain: No.
5. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion, or
any other basis? If so, please explain: No.
6. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by Congressional committees?
Yes. As a former Member of Congress, I understand the importance of
the Executive Branch complying with statutory deadlines.
2. Will you ensure that your department/agency does whatever it can
to protect Congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures?
Yes. I believe that honest and transparent public service, and
leadership that reflects that priority, are important. Congress
deserves to be well informed. I would do everything possible to insure
that the business of the CPSC is open and available to Congress.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so?
Yes. Again, as a former Member of Congress, I understand how
important responding to requests from Congress is, and how difficult
the business of committees becomes, when there are delays in making
information or testimony, available.
______
resume of anne meagher northup
Anne Meagher Northup served the Third Congressional District of
Kentucky, representing the Louisville district in the U.S. House of
Representatives as a Republican from 1997-2006. Before her tenure in
Congress, Northup served in the Kentucky House of Representatives for 9
years, from 1987-1996.
Soon after taking office in 1997, Northup was appointed to the
House Appropriations Committee, the Committee that considers all
Federal spending bills. She sat on the Labor, Health and Human
Services, and Education; Transportation, Treasury, HUD and Independent
Agencies; and Military Quality of Life and Veterans Affairs
Subcommittees.
Throughout her tenure in Congress, Northup was recognized for her
straightforward, honest style in taking on tough issues. She is a pro-
trade, pro-economic expansion Republican focused on issues that create
a better environment for competition, growth, and worldwide commerce.
She is a proponent of permanent tax relief for all American taxpayers,
expanding affordable health insurance, cutting red-tape and making sure
government programs are measured based on results.
Congresswoman Northup is the recipient of numerous legislative
awards. In 2003, she received the prestigious ``Adam Smith Award,''
which is presented annually to one Federal elected official who
exhibits an exemplary commitment to economic freedom.
Congresswoman Northup has been an aggressive advocate for education
reform. In March 1998, she founded the House Reading Caucus, a
bipartisan caucus that raises awareness about the growing number of
children who are failing to learn to read. She introduced legislation
commissioning the National Reading Panel, the findings of which were
incorporated into the ``Reading First Initiative'' of the 2001 No Child
Left Behind education law.
Additionally, Congresswoman Northup was a member of the
Congressional Coalition on Adoption and was an instrumental proponent
of legislation promoting adoption. As co-chair of the coalition in
2002, Northup traveled to China to work on eliminating the growing
bureaucratic obstacles between the United States and China that were
threatening to reduce the number of Chinese orphans available to
American families for adoption. In 2003, Northup introduced legislation
that resulted in extended paperwork deadlines for families adopting
children from China who were impacted by delays due to the SARS
epidemic. Northup and her husband are the parents of two adopted
children.
In February 2005, Northup was elected by a committee of her
Republican House colleagues to chair the GOP's Retirement Security
Public Affairs Team. As Chairman of the group, Northup was front and
center in the effort to strengthen Social Security for younger
generations of American workers.
Congresswoman Northup has been highlighted by the national press
for her pragmatic approach to public policy and her ability to
effectively communicate the priorities of Congress. She has appeared on
such shows as Meet the Press, Fox News Sunday, CBS Evening News with
Dan Rather, Larry King Live, CNN & Co., The News Hour with Jim Lehrer
and Hardball with Chris Matthews and Lou Dobbs.
Congresswoman Northup graduated from Saint Mary's College in 1970
with a Bachelor of Arts degree in Economics and Business. She has
served for years on community boards, is a recipient of numerous civic
awards, and is an active community volunteer. She is a member of Holy
Spirit Catholic Church, and has been married to ``Woody'' Northup, a
small business owner, for over 37 years. Together, the Northups have
six children.
Legislative Appointments
Member, U.S. Helsinki Commission
Member, Speaker's Prescription Drug Action Team
Member, Free Trade Working Group
Member, World Trade Organization Congressional Advisory Group
Chairwoman, Speaker's Task Force on Education
Member, Speaker's Drug Free Task Force
Congressional Caucus/Task Force/advisory Board Memberships
House Reading Caucus, Founder and Co-Chair
Congressional Coalition on Adoption
Education Caucus
Republican Israel Caucus
Missing and Exploited Children Caucus
African Trade and Investment Caucus
Medical Malpractice Crisis Task Force
Awards
Community Service Recognition Award--Louisville Defender
Newspaper
Adam Smith Award--BIPAC
Legislator of the Year--NOISE (National Organization to Insure
a Sound-controlled Environment)
Silver Anchor Award--Friends of the Waterfront
Hero of the Taxpayer--Americans for Tax Reform
Super Friend of Seniors--60 Plus Association
Guardian of Seniors' Rights Award
Congressional Partnership Award--National Association of
Development Organizations
John Thompson Foundation Outstanding Achievement Award
Citizen of the Year Award--Optimist Club of Louisville
Literacy Leadership Award--Kentucky Reading Association
Legislative Achievement in Economic Development--Southern
Economic Development Council
Small Business Advocate--Small Business Survival Committee
Defender of Religious Freedom--Zeta Beta Tau Fraternity
Rolapp Award--American Horse Council
Housing Hero Award--National Association of Home Builders
Retail Champion--National Retail Federation
Bulldog Award--Watchdogs of the Treasury
Friend of the Farm Bureau--American Farm Bureau Federation
Jefferson Award--Citizens for a Sound Economy
Senior Legislative Achievement Award--The Seniors Coalition
Guardian of Small Business Award--National Federation of
Independent Business
Spirit of Enterprise Award--U.S. Chamber of Commerce
Community Healthcare Champion Award--National Association of
Community Health Centers, Inc.
First Gethsemane Baptist Church Leading Ladies Award
Legislator of the Year--Association of Equipment Distributors
Congressional Award--Susan B. Anthony
Public Policy Advocate of the Year--National Association of
Women Business Owners
Legislator of the Year--National Beer Wholesalers Association
Advocate for the Education of Blind and Visually Impaired
Students--American Printing House for the Blind
Legislator of the Year--The Environmental Industry Association
Outstanding Freshman Member of Congress--National Industries
for the Blind
Senator Pryor. Thank you.
Ms. Northup, let me start with you, if I can pick up on
your last point about being a mother and having children and
buying various products. In your view, how can the CPSC improve
their outreach, their information dissemination to people like
that who were in your shoes a few years ago? How could they
improve the ability to get the word out when there is a
dangerous product out there?
Ms. Northup. Well, Senator, if I am approved and confirmed,
I would really look forward to working with the Chairman, who
has talked about the database and the importance of expanding
both the information in the database and making it far more
available and transparent to those purchasing any consumer
product. I think that is enormously important, and I think that
that needs to be a priority. I know that the Committee has
appropriated an additional sum, a considerable--it is about a
78 percent increase in appropriation last year. And much of
this problem could be addressed with that money.
Senator Pryor. Thank you.
Mr. Adler, do you have any thoughts on how the Commission
can get the word out?
Mr. Adler. Actually, I think Ms. Northup hit that right on
the head. One of the terrific features of the Consumer Product
Safety Improvement Act, from my perspective, is the
establishment of this consumer product safety data base. I
think that is using the resources of information technology to
substitute for large numbers of staff at the agency. One of the
thoughts I have always had is if we do not have a large staff,
we have got to use large brains. And it does seem to me these
new information technologies really give us a chance to contact
the public in very targeted ways when the hazard is something
that applies specifically to particular consumers.
I also know that Chairman Inez Tenenbaum has made this a
priority of hers, and it is my understanding that she is doing
her best to hire some really outstanding officials within the
agency to promote education and information.
Senator Pryor. I think that is right. One of the things
that I would encourage you all to think through as you go on to
the Commission is I think that information technology is great.
I mean, it really is amazing, and I think like you said, it is
really a multiplier of resources that can get more information
out.
But we still have people in this country who are poor or
elderly or rural that just do not have that technology access
for one reason or another. So I would encourage you to think
about using technology in new ways, and I think that is great,
but also thinking about maybe more traditional and other ways
to reach out to folks.
The other question I had is I know that in the CPSIA, we
threw a lot of responsibility at the Commission all at once,
and I recognize that, and the Committee does, and the House and
Senate do as well. When you go on the Commission, hopefully in
the next few days, how will you work on prioritizing all the
various things that you have to do because if you look at it
all at one time, it is almost overwhelming? But how should you
go about prioritizing that? Mr. Adler?
Mr. Adler. That is a wonderful question. I think the first
priority has to be paying attention to Congress, which is the
enactment of the Consumer Product Safety Improvement Act and
making sure that the agency has organized itself to manage the
implementation of the act. That would be priority number one
for me.
Another major priority I would feel is that we have got to
do something to restore the morale at the agency. It has
dipped, as they would say in North Carolina, ``lower than a
snake's belly.'' I think if you do not have a motivated work
force, you do not have an efficient agency.
In terms of other priorities, these are important things
for the agency, and one of the things the agency has to do--and
I think it has got to be done on a collegial basis--is for the
Commissioners to sit down and look at the projects that the
agency has pending and go through and make sure that those that
have the highest rate of injury, the most severe injury, are
the ones that are addressed first. This is a general annual
exercise that the agency does, and I look forward to doing
that.
Senator Pryor. Did you have any comment on that?
Ms. Northup. No. I think, first of all, I will say that I
was not able to include it in my remarks, but the Chairman did
reach out to me as soon as I was proposed by the President. She
has a remarkable record and tackled enormous challenges in
South Carolina. I think that she will probably be setting some
of the agenda, and should I join as one of the Commissioners, I
would look forward to being a part of that team and help assume
some of that responsibility.
The law is very holistic. It includes, first of all, making
sure that products do not get on the market that are unsafe.
Second, it requires reporting immediately if they are unsafe so
that the public can be informed, and then it has this component
of trying to have a much better outreach to be able to inform
consumers when they need to be informed.
So I realize that you need all of those things to go
forward, and I would do everything I could to assume as much
responsibility as I could to see that happen.
Senator Pryor. Thank you.
Senator Hutchison?
Senator Hutchison. Thank you, Mr. Chairman.
I have met with both of you and appreciate having the
meetings because I would bow to Chairman Pryor as really the
leader in the bill that was passed, and there are some very
good parts to it. I know that Chairman Tenenbaum is working to
start implementing those.
I would like to ask both of you, starting with Mr. Adler,
if you will commit to us to follow up in areas where you think
we need to look at corrections or add flexibility to the
Commission to be able to fulfill the spirit and intent of the
law, which I think all of us agree is correct. Mr. Adler?
Mr. Adler. Absolutely, Senator. I know there are some
provisions that concern you and that concern other Members of
the Senate. They raised them when we went to do our courtesy
visits. These are issues honestly that I have thought about a
lot. I have studied them. I have tried to do as much reading as
I can. I have certainly talked to the staff who were involved
in drafting these provisions.
One of the things, if I am confirmed, that I hope the
Commission does is to sit down, address some of these
particularly important issues, talk to the staff, go over them
at great length, first make sure that if there are any
challenges that can be dealt with administratively, that we do
that, and if there are changes that need to be made, then I
think that we ought to approach the Senate and the House and in
a very open, transparent fashion, work together to try to come
up with measured and appropriate responses to these challenges.
Senator Hutchison. Thank you.
Ms. Northup?
Ms. Northup. Well, I think much of the same, however, I
would like to incorporate in mine.
But let me also say that in every meeting I have had, the
sense that there needs to be flexibility and the sense that
there needs to be sound science was echoed on both sides of the
aisle by Senators that were all on this Committee.
So I would look forward, should I be confirmed, to the
Commissioners looking at the law and using the law to the
greatest extent as possible to see that the flexibility is
applied, as we vote on the rules. And if there are obstacles,
if we see that there is a common sense problem that the
flexibility is not there, then I think that--I mean, Chairman
Tenenbaum talked about these same issues when she came before
the Committee, that there would be a common approach that she
would present that back to this Committee.
But I think that what we do not know--what I do not know,
until I get the technical expertise that is available at the
Committee, is whether the flexibility that is written in there,
the accessibility clause, the absorbability clause, the
exception for electronics is far-reaching enough or not. It
would be premature for me to say whether or not I think that is
in the law as it is.
Senator Hutchison. The CPSC has used stays of enforcement
to provide more time for businesses to comply with the law and
also to provide exemptions that were maybe not originally
envisioned. One example of the stay is for youth ATVs and other
motorized vehicles with certain parts containing lead. These
products need the lead to run safely--it is a part of their
structure. So that has been used. However, the stays are for
specific products not categories and are generally temporary
and not binding on State Attorneys General who are now
authorized to sue.
So my question is, how would you approach an issue like
that, and do you think the stays are sufficient to address
concerns like the competing issues of stability for safety
versus this lead content that was really mostly geared toward
what children might eat and ingest? So let me just ask how you
would approach that, both of you.
Ms. Northup. Well, the current stay is till 2011. So there
is some time to look at whether there is the flexibility and
where the Commission is going to go. Should I be confirmed, I
am eager to see what exactly the status of that and what the
staff and the professional staff can tell us.
I will say that the law does say that if any Attorney
General--it does not preclude Attorneys General from taking
action. I realize that, but it does require I think at least a
30-day notice that was included in the conference bill that
passed, which would give the Commission some time then to
really accelerate their actions on that and perhaps come back
to the Committee. So there would have to be notifications from
the Attorney General that would give a chance for the CPSC to
decide whether or not they want to go even further or what they
want to do.
Mr. Adler. That is a very tough question, Senator. I will
try not to speak too long about it. But I am not a big fan of
stays. If I had been at the Commission, I suspect I would have
voted for the stay, but it is a fairly imperfect instrument, it
seems to me, for the reason you mentioned, also for the reason
that nobody is going to say to Wal-Mart that you are stayed
from dealing with your suppliers and Wal-Mart could simply
insist that its suppliers buy back a bunch of violative
product.
My other problem with the stay is that it is almost too
permissive and at times it is too stringent. I think it is too
stringent on a company that in good faith is trying to live up
to the law because, even if the stay says we are not going to
require you to test and to certify, if I were a virtuous
company, how would I know whether I was in compliance unless I
tested it? And so the actual practical effect might not be as
large as we might have hoped.
It might also be too permissive from my perspective because
I could imagine a less than virtuous company saying we do not
have to test. Great. Let us just ship all these goods and hope
we do not get caught, in which case they might not just be
shipping goods that have maybe 700 parts-per-million of lead,
but they might have 10,000 parts-per-million of lead, and that
gets into the marketplace.
So I find that to be an imperfect instrument. It may have
been the best option that the Commission had at that point, but
what I would hope, if I am confirmed, is to get to the agency,
sit down with the lawyers in the agency, the compliance staff,
and fellow Commissioners and see if there is not some
alternative approach. And it might well be that instead of a
stay, we might be coming to the Congress for some additional
modest amount of discretion.
Senator Hutchison. Well, I think that this particular youth
ATV issue is one where perhaps there is going to need to be
some new flexibility because I think that there could be
problems on both sides. Either you do not have the ability to
stay, in which case it just cannot work, or on the other hand,
an Attorney General might sue even though the Consumer Product
Safety Commission has not come to a conclusion and has not been
able to do all of its work. So that is the issue that will hit
your desk, and I hope that you will be able to debate and come
up with a conclusion that is common sense and also fair and
protects a business that is trying to do the right thing, which
is a safe vehicle, and give it the capability to do that.
So thank you very much.
Senator Pryor. Senator Wicker?
STATEMENT OF HON. ROGER F. WICKER,
U.S. SENATOR FROM MISSISSIPPI
Senator Wicker. Thank you, Mr. Chairman. Let me just
associate myself with the sentiments of Senator Hutchison with
regard to the last line of questioning.
Also, our guests today should know that on the Commerce
Committee there is a great deal of interest in the Commerce
Department and in the CPSC among Members of the Committee. We
are going in a number of different directions as we try to wind
up our work for the August recess, and so I hope our guests
please understand that there is a great deal of interest in
this subject matter today.
I wanted to stick around in particular to endorse the
candidacy of Anne Northup, but I support both of these
nominees. I am glad we are moving closer to a five-member CPSC,
and I feel good about the candidacy of both individuals.
Let me just say with regard to Anne Northup, I came to the
House of Representatives in January 1995. She came in January
1997. We were both fortunate enough in our freshman terms to be
put on the Appropriations Committee, and literally for all the
time Anne was in the Congress, we sat shoulder to shoulder in a
very crowded Subcommittee room on Labor, HHS, and Education. So
I know her well.
I commend to this Committee, Anne Northup, based on her
keen intellect, based on her work ethic, and as she listed the
issues today, it was like going down memory lane, with so many
of the instances when I learned that, indeed, Anne Northup is
fearless. Indeed, she calls it as she sees it, whether you like
it or not. Whether you agree with it, I think most people come
away with the sense that it is based on sound reasoning, hard
work, and intellect.
On the issue of tobacco, banks versus realtors, taking on
the pharmaceutical industry based on the cost of prescription
drugs to Americans, ergonomics, it was an impressive education
for this boy from Mississippi to have the benefit of Anne
Northup's expertise and intellect. So I say that in support of
her candidacy.
And I think perhaps she and Mr. Adler will not always
agree, but I think that they will always appreciate each
other's genuineness.
I am so glad that both witnesses today stressed basing
decisions on sound science. I think Mr. Adler said data-driven
and not rhetorical or simplistic solutions. I just would hope
that both of the nominees will remember that when they deal
with tough issues. There are so many issues where it sounds
good at first blush.
I have had to go round and round with regulators, for
example, on the issue of furniture flammability. I for one
think we can prevent fire deaths in the United States without
subjecting our consumers to harsh and toxic chemicals, without
subjecting our environment to substances that would harm the
environment and in the name of preventing one danger, cause
other greater dangers. So I am glad to hear both nominees agree
to that and stress that.
One question. We have a real problem in Mississippi and in
a number of other states among homeowners on the issue of
Chinese drywall. So I hope you will base your decisions on
sound science. At the same time, I hope there is a way you can
hurry and we can get the sound science quickly----
[Laughter.]
Senator Wicker.--and go beyond putting something on the
website. We need answers on this issue. It is out there. So I
would just hope that any information available could be gotten
to consumers, beyond website posting, quickly. So I guess I am
just echoing what Senator Pryor has said about getting the
message out.
If you would like to comment about Chinese drywall, I would
be happy to hear that.
Ms. Northup. Well, I just say that, first of all, it is an
enormous problem. There is some of the problem in Kentucky, not
at the level that it is in Mississippi or Florida and some of
the other states. It is enormous for a number of reasons. It is
not just widespread. You can throw a pacifier out. You cannot
throw your home out. The cost of fixing this problem would
overwhelm the average family.
Let me just say I think that is I what I bring to this
Committee today in asking for your approval, is that I know how
completely frustrating it is to be a Member of Congress and
have an agency that you are waiting on to deal with an issue
that is so pressing to your constituents and to have this
feeling that it is some black hole. You know, you call and it
is like, well, we will back to you with the time schedule. And
months can go by.
I do believe that in 20 years, we will have completely
figured out what the problem is with Chinese drywall, but if
you are a family with a second-grader going off sick to school
every day, you cannot wait until science--you need science to
give you a time table, a reasonable approach to how you are
going to deal with this, maybe come back to the Congress and
tell them sort of the extent of the dangers, what the chemicals
are, the physical dangers so that you are in a better position
to take reasonable action. But I completely agree. This is a
terrible problem.
Mr. Adler. Just a brief comment. I did speak to Chairman
Tenenbaum the day after she was confirmed, and she one of her
very highest priorities was Chinese drywall. I know she has
been pushing the CPSC staff very, very hard. She has been
working diligently with the EPA and with State health
departments. We really very much appreciate--or the agency very
much appreciates the additional resources that the Congress has
supplied to do this work.
I share the same sense of urgency, and I hope, if I am
confirmed, to join Ms. Tenenbaum in pushing and pushing as hard
as we can to see if there is some regulatory options that might
be addressed to help these homeowners.
Senator Wicker. Thank you very much.
Senator Pryor. Thank you.
Senator Klobuchar?
STATEMENT OF HON. AMY KLOBUCHAR,
U.S. SENATOR FROM MINNESOTA
Senator Klobuchar. Thank you very much, Mr. Chairman.
Thank you very much as well for being willing to serve, to
both of you, and congratulations on your nominations. I care a
lot about this agency, and I think some of it came from my work
as a prosecutor for 8 years. As you know from the work you are
about to do and work you have done in your life, sometimes
these people like the ones Senator Wicker was referring to with
the drywall problem and you, Ms. Northup, so articulately
answered in terms of your own passion for this--they have no
one else except an agency that sometimes can seem like a big
bureaucracy, but it is what they have. And we had so many cases
where it would be victims of crimes, someone that just happened
to be at the wrong place at the wrong time, and the only person
they had to help them was maybe one prosecutor who stood
between them and their faith in the system that things could
get done.
And that is why I have such a passion for this consumer
work and have gotten involved in it from the beginning,
including the Consumer Product Safety Act that we talked about,
I know, today. That came out of a case for me in Minnesota
where a little 4-year-old boy swallowed a charm that his mom
got with a pair of tennis shoes. She did not ask for that
charm. It came free. He was playing with it. He swallowed it
and he died. And he died not from choking on it. He did not die
because it blocked his airways. He died over a period of time
as the days went on, as the lead in that charm went into his
bloodstream. And when that charm was tested, it was 99 percent
lead. And that is why I got so interested in this consumer
product issue.
And then we met the parents of kids that had eaten some of
those spongy toys and ended up going into a coma because they
actually accidentally had the date rape drug in them. And
talking to that mom about how here she is and does not know
what is wrong with her little baby and goes to the hospital.
They do not know what is wrong. The kid comes out about it in a
day, and she for weeks tried to figure it out on the Internet
not knowing if he would suffer from permanent damage. These are
real families. So I really appreciate your willingness to serve
this agency.
I guess my first question--I see Commissioner Nord out
there--is that we are going from two Commissioners now to a bit
more. So there is a lot of change in the agency. And I just
would ask both of you what your approach will be in terms of
helping to run an agency that has had a lot of work and
undergone a lot of change. Mr. Adler?
Mr. Adler. Thank you very much, Senator. I just wanted to
add one word to what you were saying about the risks to
children. That has always been a major concern and priority at
the Consumer Product Safety Commission and I think properly so.
Kids are not decision-makers. Kids are involuntary risk-takers.
Kids are the most valuable, precious asset that we have, and we
simply cannot do enough to try to protect kids, especially when
it comes to hazards of product safety.
I very much look forward, if I am confirmed, to going to
work at the agency. It will be interesting to see how the
agency with five Commissioners operates. It has always seem to
be that the agency has functioned best when it has functioned
in a nonpartisan, problem-solving way. In my experience at the
agency, you get shifting coalitions among Commissioners. When a
particular issue comes up, different Commissioners look at it
differently, but I have never seen and I hope never to see any
element of partisanship injected into the decisionmaking with
respect to product safety, and I certainly hope to be part of
that.
There are so many issues that face the agency right now. I
could probably talk your ear off for the next hour about the
things I would like to work on, but as I say, one of the most
important things I think the agency must do, in part to get
back the confidence and trust of the Congress toward the
agency, is to demonstrate that we are capable of implementing
and meeting the deadlines in the Consumer Product Safety
Improvement Act.
Senator Klobuchar. Thank you.
Ms. Northup?
Ms. Northup. Well, I think again should I join the
Commission, there would be five members, and I think that there
is always a benefit to bringing new eyes to problems. I also
think that you will have really robust debates and
conversations. I have always felt like public policy is best
when you put every idea and every perspective on the table and
have the balance that brings the insights. None of us alone can
come up with the best answers and to see what approaches can be
taken.
I said earlier it is a holistic bill, the Improvement Act.
It starts with keeping unsafe products off the market. Then it
requires new reporting responsibilities and decisions. There is
not the lag that there used to be. And then the remedies are
there, including much more outreach to families.
I agree. I do not think that we should see this as two
against three. Usually my experience in Congress was that there
were sort of forming and reforming of thinking and how people
aligned themselves. But good balance and good thought to look
for reasonable solutions and depend on sound science and to
remind ourselves that you have the ATV people that have all
these products that are built and they are off the market and
all the people that are left in limbo because the Consumer
Product Safety Commission cannot finalize or cannot make a
rule. We have got to deal with that and put all of those
thoughts and deal with them quickly.
Senator Klobuchar. Thank you, Ms. Northup, and I am glad
you brought that up. I know that some of my colleagues asked
about ATVs, and when you said that there is inventory on the
shelves, maybe you knew that the people that make those ATVs
are in Minnesota.
[Laughter.]
Ms. Northup. I did not.
Senator Klobuchar [presiding]. That was a really smart
move. Polaris and Arctic Cat are the two major domestic
manufacturers, and they also make snowmobiles. This has been a
major issue in our State. We have one staff member that I think
he is going to start selling ATVs he learned so much about it.
Clearly, many of us here did not envision that the law would be
interpreted in that way.
And I would just share the thoughts of my colleagues that
we hope that this will get resolved. The stay is somewhat
helpful. At least they can put, arguably, some of the inventory
that they have showed me--I was just up there 3 weeks ago. I
was up in Thief River Falls--you are welcome to visit--at the
factory and saw some of the changes they have made. But I
really think that we need to look into this because just as
electronics had gotten an exemption here, the same kind of
arguments can be made. And maybe we can do it practically with
implementation or maybe there will be need for some additional
legislation.
Along those lines, I also hope you will work with the
Handmade Toy Alliance, which is a group of smaller toy
manufacturers who have concerns as well. And again, the
original group is based in Minnesota. So I have been dealing a
lot with these implementation issues and have an appreciation
for what you will be working on.
And I really thank you for your commitment to balance
because there was a huge need for this legislation. We all know
that. There were all these products coming in and there was not
really the updated tools. I think the Wall Street Journal
called it the most sweeping consumer legislation in 16 years.
But at the same time, there needs to be balance.
And I am now chairing this hearing. So now you have really
got to watch out, but I turn it over to my colleague, Senator
Hutchison.
Senator Hutchison. I have already asked my questions. So
Madam Chairman, I am finished.
Senator Klobuchar. OK. Very good.
Well, I just wanted to thank both of you. I will give you
some in writing so we do not have to go on here with some of
the issues with the Virginia Graeme Pool Safety Act, something
very important. Again, we had a tragedy in our State, and the
family and I worked on this very hard. It was a bill that had
been kicking around for years, and we were able to get it done.
Commissioner Nord and I just did an event to educate people
about the fact that this law is out there, and we have actually
done some great things in our State because of this tragedy. I
know there are some implementation issues, but it was
incredibly important to get that bill passed to get that done.
So I am really excited that we are going to have this full
rostrum of Commissioners and am looking forward to working with
both of you.
With that, would you like to say anything else?
Ms. Northup. No. Just thank you so much for your time, and
we are looking forward to the action of the Committee. I hope I
will have an opportunity to work with you if I am confirmed.
Senator Klobuchar. Very good.
Mr. Adler. I just wanted to thank you and your staff and
the terrific staff on the Senate Commerce Committee on both
sides for taking the time to meet with us and the courtesy that
you have shown to us. And we look forward to working with you
when we get the agency, if we get to the agency.
Senator Klobuchar. Well, OK, very good. I like how you have
that respect for Congress. That is very important.
[Laughter.]
Senator Klobuchar. But I think things are looking good.
With that, the hearing is adjourned.
[Whereupon, at 11:36 a.m., the hearing was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. Frank R. Lautenberg to
Dennis F. Hightower
Question 1. The Consumer Price Index (CPI) measures changes in
consumer expenditures over time to gauge inflation. However, it does
not account for geographic differences in the costs of goods, services,
and other basic needs. As you know, the cost of living in some areas of
the country is significantly higher than in other areas. Do you agree
that there are important differences in consumer expenditures across
distinct geographic areas and that differences in the cost of living
are not fully accounted for in the CPI?
Answer. I am certainly aware that different areas of the country
are more expensive to live and to do business in than others, and there
is little question that this is an important consideration. As to the
specifics of the Consumer Price Index, that is a product of the Bureau
of Labor Statistics at the Department of Labor, and thus I defer to the
Department of Labor on the strengths and weaknesses of that measure.
Question 2. What benefits might the Federal Government obtain from
having an official government statistic, published regularly, that
measures geographic variation in consumer expenditures and cost of
living?
Answer. Generally, I am in favor of official statistics that can
both lead to better policy decisions, as well as help American
businesses best understand their customers and the economic
environment. That said, there is a great deal for me to learn still
about what the Department currently produces and what specific value
would come from new measures. This is an area I look forward to
exploring, should I be confirmed.
Question 3. The Bureau of Economic Analysis has published research
that analyzes variations in consumer expenditures and the cost of
living across geographic areas and has created a statistic called the
Regional Price Parity. Similar statistics have been created in other
countries. Are you familiar with this research and the Regional Price
Parity? How could such a statistic be utilized by your agency and
Congress?
Answer. I am not yet familiar with the Regional Price Parity
research at BEA, nor how the Department's statistics compare with those
of other countries. As a manager, however, I believe in making
decisions based on good data, and so to the extent the Department can
better serve the government, the Congress and American business with
more precise statistics, that is something I would support.
______
Response to Written Questions Submitted by Hon. Tom Udall to
Dennis F. Hightower
Question 1. Mr. Hightower, as an international business executive
and head of an online media firm, you know the importance of broadband
and have seen firsthand what other countries are doing to promote their
Internet infrastructure.
Yet in the last 10 years, the U.S. has gone from being a world
leader in Internet penetration to being 15th or worse, depending upon
what statistics you read. This year, the American Recovery and
Reinvestment Act provided over seven billion dollars to the Department
of Commerce and Department of Agriculture to help bring broadband to
rural America.
The stimulus funds available for broadband also come at a time when
the Nation could potentially take significant ``leap frog'' steps to
overcoming the digital divide. Federal funding alone, however, will not
be enough. In addition to the Broadband Technology Opportunities
Program (BTOP), what policies should the Department of Commerce promote
to bridge the digital divide in America? How can the Department of
Commerce leverage the stimulus package's investment in broadband to
help promote new business opportunities for entrepreneurs living in
areas that will soon have affordable broadband?
Answer. To connect every American with broadband Internet service,
we must increase broadband availability and broadband subscribership.
The BTOP program is soliciting grant applications in support of both of
these critical areas. In addition, if confirmed, I will work with the
staff at the National Telecommunications and Information Administration
to learn as much as we can from the BTOP Program. Those lessons learned
would be shared with other agencies within the Department of Commerce.
I believe we should also promote those lessons learned with the private
sector, and entrepreneurs who are making innovative technologies more
readily accessible to the marketplace. If confirmed, I would explore
options to close the digital divide. In general, there should be a
strong focus on developing appropriate policies that can best achieve
the goal of extending affordable broadband to all Americans and
creating an environment that rewards innovation, investment, and
competition.
Stimulus monies can bring broadband infrastructure to rural and
urban areas. With this capability, the economy can benefit from faster
information flow, improved productivity, and sharpened competitiveness.
The effects are multiplied: farmers can receive quicker online weather
reports, manage their shipments and receive orders more quickly.
Critical institutions such as schools, libraries, and recreation
centers that receive broadband can serve as anchor institutions for
their surrounding communities-including small entrepreneurs.
Affordability coupled with availability can only make the effects even
more robust.
Question 2. The Commerce Department houses a diverse collection of
agencies and divisions. It does everything from supporting scientific
research and the commercialization of new technologies to expanding
American exports and promoting minority-owned businesses. How do you
plan to help Secretary Locke harness these important Commerce
Department initiatives into a coherent strategic vision to promote
innovation and create jobs across the country?
Answer. Secretary Locke and I share a vision of the Department of
Commerce not as a collection of 12 agencies and bureaus and more than
50,000 employees but as one Department, singularly equipped to help
American businesses grow and to create jobs.
When this Committee and the Congress enacted the America COMPETES
act, you began with the premise that innovation through basic
scientific research--and the ideas it produces--is the bedrock of
competitiveness. The Department also houses its own idea factories,
whether it is exploring the frontiers of nanotechnology at the National
Institute of Standards and Technology (NIST), exploring the ocean at
the National Oceanographic and Atmospheric Administration or designing
spectrum policy at the National Telecommunications and Information
Administration (NTIA). The Department also helps Americans protect the
ideas they generate at the Patent and Trademark Office (PTO).
But even the best ideas are only catalysts. Businesses need to
commercialize those ideas into real products they can sell. If
confirmed, I will make sure the Department stands ready to assist them
through NIST's Manufacturing Extension Partnership helping small- and
medium-sized manufacturers work smarter, through the Economic
Development Administration helping communities attract businesses and
through the Minority Business Development Administration helping
minority-owned firms thrive.
Once a business sends a product to market, it needs a level playing
field on which to compete. The Department helps promote competitiveness
through its International Trade Administration, promoting exports and
ensuring fair competition, and through the Bureau of Industry and
Security, ensuring an effective export control and promoting continued
U.S. strategic technology leadership.
Finally, after innovation, commercialization, and competition,
comes measurement. A business needs to see how it stacks up,
economically or environmentally. The Department, too, has measurement
as a pillar of its operations whether it's the Economics and Statistics
Administration providing economic analyses and the Census or the NOAA
keeping an eye on our environmental sustainability.
Secretary Locke and I view the Department, not just as a collection
of agencies, but as a Department organized around the pillars of
developing and maintaining a successful business--innovation,
commercialization, competition and measurement. If confirmed, my
challenge will be to help the Secretary and the Department's employees
deliver those key services as effectively as possible.
Question 3. The U.S. has had huge trade deficits for years. In
today's economic climate, American companies face many hurdles to
selling their products overseas. Unfair trade practices and complex
technical regulations in foreign countries can also make exporting a
real challenge, especially for small businesses. How will the Commerce
Department help companies in New Mexico reach their full potential for
exporting their products?
Answer. The Department of Commerce's International Trade
Administration (ITA) plays an important role in creating and sustaining
high-paying jobs through export assistance, especially for small- and
medium-sized businesses, and market access and advocacy support to
ensure fair trade. ITA's efforts are focused on increasing the number
of American exporters and increasing the number of export markets for
American firms.
ITA's U.S. & Foreign Commercial Service (US&FCS) has a global
network of trade professionals in 109 U.S. locations, including Santa
Fe, New Mexico, and in U.S. Embassies and Consulates in 77 countries.
US&FCS staff will continue to work with U.S. companies, providing
counseling and advocacy, market research, trade events, and
identification of potential international buyers or partners. Commerce
staff guides companies through every step of the export process, from
shipping and logistics, to understanding foreign regulations, to
finding solutions when they encounter trade barriers overseas. If
confirmed, I look forward to working with Congress and the
Administration to ensure these critical programs are providing maximum
benefit to U.S. companies including those in New Mexico.
Question 4. New Mexico is a beautiful place with terrific tourist
destinations like historic Santa Fe, the Taos Pueblo world heritage
site, and natural wonders like White Sands National Monument. Yet
international tourism is suffering due to current world economic
conditions. How will the Office of Travel and Tourism Industries (OTTI)
at Commerce promote tourism in this current economic climate?
Answer. The Department's efforts are focused on opening up new key
markets for international visitors to the United States, such as
visitors from China and countries in South America, and working closely
with industry representatives in support of bringing such visitors to
the United States. For example, the Department has a cooperative
agreement with the U.S. Travel Association for a ``one-stop shop''
travel and tourism industry website aimed at international visitors in
the top 5 markets. Through the Tourism Policy Council, the Department
communicates industry concerns to all Federal agencies whose policies
affect the travel and tourism industry. The Secretary has stated that
he will communicate the importance and value of travel, including
corporate travel, to the U.S. economy.
Question 4a. How can the Commerce Department help businesses such
as those in New Mexico that rely on tourism?
Answer. The Department is working to ensure that all of the United
States remains attractive to international visitors. The Department is
continuing its work with other agencies to facilitate travel to the
United States, while taking into account the demands of national
security.
In addition, Commerce is actively engaged with the Western States
Tourism Policy Council to address rural community needs for travel and
tourism. If confirmed, I look forward to working with you and other
interested members to ensure Commerce's tourism programs bring maximum
benefit to the U.S. tourism industry.
Question 5. The New Mexico Manufacturing Extension Partnership
(MEP) in Albuquerque provides helpful assistance to small companies
throughout my state. How can the Commerce Department, through NIST and
other agencies, do more to support small businesses and the
manufacturing sector?
Answer. In addition to the work that the New Mexico MEP is doing in
your state to support the manufacturing sector, the Department of
Commerce is looking at a single point of contact for businesses to
access the Department's programs and services for businesses and
entrepreneurs. In June, the Secretary announced his goal to unveil by
the end of the summer a ``One-Stop Shop'' in the Detroit area, making
more accessible the services offered by Commerce's Patent and Trademark
Office, Minority Business Development Administration, Economic
Development Administration, National Institute of Standards and
Technology, and International Trade Administration, among others. The
Department is going to pilot this idea in Detroit with a goal toward
implementing this approach nationwide--bringing a new way of delivering
services to the businesses and entrepreneurs in New Mexico. This
program will play a critical role in bringing the Federal Government to
``Main Street'' in an effective, business-friendly way--making the
Federal Government a true partner in helping to revitalize communities.
It is my understanding that Commerce has been very focused on the
manufacturing sector and its challenges in this economy, from getting
key input and advice from the Manufacturing Council to helping
manufacturers diversify into new and growing technologies.
Question 6. How can the Department of Commerce better promote
entrepreneurship in minority communities through the Minority Business
Development Agency (MBDA) and other initiatives?
Answer. MBDA's mission is to foster the establishment and growth of
minority-owned businesses of all sizes. Through its nationwide network
of 48 minority business centers, MBDA is promoting entrepreneurship
with minority communities and Native Americans through business
advisory services and training programs. If confirmed, I will work with
Secretary Locke and the new MBDA Director, David Hinson, to examine new
and innovative ways to promote business growth and entrepreneurship in
minority communities and tribal lands. I will welcome any input you and
your colleagues may have and look forward to launching new initiatives
toward this end if I am confirmed.
Question 6a. How can the Commerce Department promote
entrepreneurship and business opportunities on tribal lands?
Answer. It is my understanding that one of MBDA's key cooperative
grant programs is the Native American Business Enterprise Center
(NABEC). These centers are operated by tribal entities, non-profit
organizations and tribal colleges/universities. Through these centers,
MBDA works with Native American entrepreneurs who wish to grow their
businesses in size, scale and capacity. These firms are then better
positioned to create jobs, impact local economies and expand into
national and global markets. Last program year, MBDA assisted more than
470 Native American clients with more than $93 million in contracts and
$54 million in financial transactions.
If confirmed, I look forward to exploring other ways to promote
entrepreneurship and business opportunities on tribal lands.
Question 7. The Native American Business Enterprise Centers play an
important role in promoting entrepreneurship in tribal areas. The local
NABEC office in my home state, in partnership with the American Indian
Chamber of Commerce of New Mexico, works to promote both a favorable
business climate and business growth in Indian Country through services
such as business planning, bookkeeping, and government procurement
assistance.
My office has recently learned of challenges these centers face due
to local grant matching requirements. I hope that you will promote a
flexible approach to local grant requirements for Commerce Department
programs that helps maximize their potential while still ensuring
accountability and transparency. Would you support a flexible approach
for grant requirements for programs such as NABEC by allowing, for
example, ``sweat equity'' and volunteer efforts to be considered as in-
kind contributions?
Answer. The NABEC grant opportunity requires a non-Federal match of
at least 10 percent. The other two MBDA grant programs require a 20
percent match. MBDA is sensitive to the needs of the Native American
community and for that reason requires a lower non-Federal cost share.
MBDA already supports a flexible approach for the non-Federal match
allowing four means, or any combination thereof, to satisfy the cost
sharing requirements. The four means include: (1) client fees; (2)
grantee cash contributions; (3) grantee in-kind contributions; and (4)
third-party contributions.
An example of a grantee in-kind contribution would be if the ABC
Chamber applied for one of MBDA's grants and offered their accountant's
services for the project for 10 hours per week. The value of the pro-
rated salary per year attributable to project activities may be listed
as an in-kind contribution. Other examples include the value of
computers, office space and volunteer work attributable to the project.
______
Response to Written Question Submitted by Hon. Kay Bailey Hutchison to
Dennis F. Hightower
Question. This Committee and its members have long enjoyed a close
and productive working relationship with agencies under our
jurisdiction. We often rely on the technical and legal expertise of
agency staff when we are developing or reviewing proposed legislation.
Can all members of the Committee, and their staff on their behalf,
count on this cooperative relationship continuing with the Department
of Commerce?
Answer. Yes. I fully recognize the importance of working closely
with all Members of the Committee and I will ensure the Department
continues that tradition if I am confirmed.
______
Response to Written Questions Submitted by Hon. John D. Rockefeller IV
to Robert S. Adler
Question 1. The Commerce Committee considers protecting consumers
one of its highest priorities. As Commissioner, what will you do to
make sure that the CPSC protects the public from unsafe consumer
products?
Answer. The mission of the Consumer Product Safety Commission is to
protect consumers from unreasonable risks associated with consumer
products. I will consider this mandate to control my every action and
every vote at the agency if I am confirmed.
Question 2. The CPSC is an independent Federal agency. Are you
comfortable speaking out against the Administration's budget and
policies if you think those decisions are not in the best interest of
protecting consumers?
Answer. Yes. Independent agencies are independent for a purpose.
They are supposed to address issues according to their mandates, not
according to political concerns or considerations. That said, if
confirmed, I would look forward to maintaining a dialogue with the
Administration and with Congress on critical issues that they consider
important.
Question 3. The CPSC is in the midst of implementing the Consumer
Product Safety Improvement Act of 2008 (CPSIA). There are a number of
rulemakings under consideration and new requirements that have
significantly expanded the authority of the Commission. Will you commit
to working through implementation of this law in a commonsense manner
that recognizes the flexibility of the act?
Answer. Yes. I consider myself to be a non-ideological pragmatic
problem solver. I believe that regulation works best when it comports
with common sense, so I will wholeheartedly embrace such an approach if
I am confirmed.
______
Response to Written Questions Submitted by Hon. Tom Udall to
Robert S. Adler
Question 1. As you know, almost all of the children's toys sold in
the United States are made in foreign countries such as China. The
infamous ``summer of recalls'' reminded us of the importance of
ensuring the safety of all these imported products.
I would appreciate hearing both nominees' views on ensuring product
safety in an era of global supply chains. What proactive measure should
the CPSC take to prevent unsafe, foreign-made products from being sold
in the United States?
Answer. First, given the CPSC's limited resources, it can never
adequately police imports solely by itself. It must use its partnership
with the U.S. Customs and Border Patrol to maintain a meaningful
presence in the import marketplace. The CPSC should nurture this
relationship which has been strengthened recently and alert Customs
when it obtains information about new, emerging hazards. Second, the
CPSC should continue to work with foreign governments wherever possible
to educate them about our product safety laws and requirements. I
commend Chairman Tenenbaum on her current trip to Asia to meet with
fellow regulators and key stakeholders. If we maintain good relations
with these governments and the regulatory bodies they establish, we can
use their enforcement resources to amplify our safety message.
Question 1a. How should CPSC work with manufacturers, U.S. Customs
and Border Patrol, and foreign governments to protect American children
and consumers from unsafe imported products?
Answer. I would hope that the CPSC would seek to use strong, open
relationships with all of these parties to try to promote safety in the
development, manufacturing and marketing of consumer products before
they are made, rather than seek recalls after a problem manifests
itself. Incorporating product safety into a product's design is always
superior to addressing problems once an injury or death has occurred.
One of the most effective things the CPSC can do is to educate all
parties about the nature of consumer product risks and to alert them to
spread this message throughout their organizations.
Question 1b. Since passage of the landmark CPSIA legislation, does
the CPSC now have the resources and authority it needs to protect our
children from harmful and tainted products imported from foreign
countries?
Answer. In all honesty, I don't know. I am certain that the added
resources and authority are extremely helpful, though the agency does
remain a smaller entity than it was thirty years ago. Since I am not at
the CPSC, it is difficult to say whether any more resources or
authority is needed.
Question 2. Product recalls are one of the main tools CPSC uses to
protect consumers. The CPSC website does provide helpful information
about recent recalls. However, as a consumer, it is not always easy to
know if you have a product at home that has been recalled for safety
reasons. Moreover, not all Americans have access to the Internet. What
are your thoughts for improving the effectiveness and response rate for
product recalls?
Answer. The new consumer safety database established in the CPSIA
should provide considerable help if it is implemented in a user-
friendly manner with easy accessibility and clear paths to follow to
obtain information. If I am confirmed, I will make implementing such a
database a priority of mine. Clearly not everyone has a computer or
Internet access, but if it is developed carefully, informal information
networks often help carry the message even when it is not received
directly. I believe this is the foundation of CPSC's Neighborhood
Safety Network. Beyond the Internet, the agency should always use every
available means at its disposal, including newspaper stories, TV,
radio, and posters where appropriate, to carry its safety message.
Question 2a. In addition to using existing tools such as the new
consumer safety data base, what more can CPSC do to ensure that harmful
products are promptly removed from store shelves and American
households?
Answer. In my opinion, the agency should rely on every
communication and persuasion tool--emerging or traditional--it has
available to transmit safety messages. Effective communication
typically requires numerous messages sent through different channels to
gain proper attention and to reinforce the importance of the safety
messages.
Question 3. Given that CPSC has fewer than 500 employees and the
agency is charged with ensuring the safety of over 15,000 types of
consumer products, I would like to know your thoughts on how CPSC can
leverage its resources. For example, how will you work with state
attorneys general to help ensure compliance with consumer product
safety rules?
Answer. In my past experience at the CPSC, there was always a
strong inter-governmental relationship between the CPSC and the state
attorneys general. I hope that such a relationship can be revived. As a
former Deputy Attorney General in the Pennsylvania Attorney General's
office, I participated in publicizing and enforcing CPSC recalls to
great effect. One approach that I might recommend if I am confirmed is
for the CPSC to host some regional conferences of state AG's to raise
awareness about product safety issues and to obtain the expertise of
the AG's on these issues.
Question 4. Congress gave CPSC the authority interpret the Consumer
Product Safety Improvement Act (CPSIA) to interpret the law's
requirements in a common sense way to allow the agency to exempt
certain from lead content rules. I do not believe motorcycles, for
example, should fall under the same lead ban that applies to children's
toys. As CPSC commissioner, will you support a flexible, common sense
approach to interpreting the law that ensures a high level of consumer
safety?
Answer. Yes. You have my commitment that, if I am confirmed, I will
approach all issues that come before me in a common sense fashion.
Question 4a. Will you address the issue raised by constituents in
my state of motorcycles inappropriately falling under the same lead ban
as children's toys?
Answer. Yes. If confirmed, I look forward to looking at this and
other issues related to the lead content rules. I will approach these
issues in a completely commonsensical way.
Question 5. CPSC and other regulatory agencies rely on consensus
standards developed by accredited standards development organizations.
The U.S. Code of Federal Regulations currently includes 6,000
references to such standards, including many in critical areas
involving health and safety.
Although CPSC technical experts participate in standards
development activities relevant to consumer safety, CPSC has often been
more reluctant than other agencies to reference existing voluntary
safety standards as mandatory requirements.
Last year, Congress directed CPSC to reference several such
standards, which are updated more regularly than consumer rules, in
order to ensure a higher level of children's safety. Congress also
instructed CPSC to reference updated versions of these standards
shortly after they are revised. How will you encourage CPSC staff to
continue to participate in standards development organizations that are
relevant to protecting consumer safety?
Answer. I fully support having CPSC staff participate in standards
development by voluntary groups. I believe it promotes a full
understanding among the parties of critical issues and often produces
effective safety improvements at lower costs than mandatory
regulations. I was disappointed recently to see that the agency
apparently felt compelled to withdraw from some ongoing voluntary
standards development work because of higher priority demands of
implementing the CPSIA. If confirmed, I hope to talk to the staff to
see whether such a step was necessary and to push for continuing
development in such work.
Question 5a. Would you consider referencing the resulting standards
in consumer safety rules when they are consistent with the Commission's
regulatory objectives?
Answer. Yes.
Question 5b. How will you ensure that CPSC rules stay current with
emerging consumer safety threats?
Answer. Periodic review by CPSC of safety rules, whether they be
mandatory or consensus standards, is necessary to stay current with
emerging consumer threats. Also, when rules are thoughtfully developed
in performance terms, they set useful safety parameters but leave
compliance to manufacturers, thus permitting new technologies without
the constant necessity of revising agency rules.
______
Response to Written Question Submitted by Hon. David Vitter to
Robert S. Adler
Question. I thank both nominees for meeting with me prior to their
consideration by the Committee. Also, I want to thank them for the good
discussions we had on three important topics: the need to find a quick
and fair resolution to the growing problem of tainted drywall from
China, to work at the CPSC and with other Federal agencies to address
the overall problem of products imported from China that are unsafe,
and to ensure that the process leading to final regulations regarding
phthalates will be based on sound science.
On the last topic, I also want to ask that the nominees, if they
are confirmed, carefully review the proposed Statement of Policy on the
testing procedures for products subject to the interim ban on high-
molecular-weight phthalates. This policy under consideration would
require testing of components that are inaccessible by children. This
testing standard is different than what the Consumer Products Safety
Improvement Act included for components with certain levels of lead
that are inaccessible. I hope that the commission will carefully weigh
the benefits and costs of the extra testing requirements, while
continuing to ensure both safety of children and fairness to
manufacturers with sound science as the backing for testing during the
interim period and after the final regulations.
Answer. If confirmed, I would be happy to review the Statement of
Policy at issue and to consult with the other Commissioners and CPSC
staff about it.
______
Response to Written Questions Submitted by Hon. John D. Rockefeller IV
to Hon. Anne M. Northup
Question 1. The Commerce Committee considers protecting consumers
one of its highest priorities. As Commissioner, what will you do to
make sure that the CPSC protects the public from unsafe consumer
products?
Answer. If I am confirmed, I will work to assure that the mission
of the agency to protect consumers from unreasonable risk of injury
from consumer products is carried out aggressively and appropriately. I
am especially committed to working on behalf of our most vulnerable
consumers--children and the elderly.
Question 2. The CPSC is an independent Federal agency. Are you
comfortable speaking out against the Administration's budget and
policies if you think those decisions are not in the best interest of
protecting consumers?
Answer. The CPSIA requires that the CPSC submit its proposed budget
to Congress when it submits it to OMB. Therefore, the Congress will
have the benefit of the agency's views independent from those of OMB.
If I am confirmed, I will continue the same independence that was my
hallmark as a Member of Congress for 10 years. I will continue to
exercise independent judgment as a member of the CPSC.
Question 3. The CPSC is in the midst of implementing the Consumer
Product Safety Improvement Act of 2008 (CPSIA). There are a number of
rulemakings under consideration and new requirements that have
significantly expanded the authority of the Commission. Will you commit
to working through implementation of this law in a commonsense manner
that recognizes the flexibility of the act?
Answer. Yes. As a Member of Congress, I have consistently sought
common sense solutions to problems. I intend to continue that approach
if confirmed as a Commissioner for the CPSC.
______
Response to Written Questions Submitted by Hon. Tom Udall to
Hon. Anne M. Northup
Question 1. As you know, almost all of the children's toys sold in
the United States are made in foreign countries such as China. The
infamous ``summer of recalls'' reminded us of the importance of
ensuring the safety of all these imported products.
I would appreciate hearing both panelists' views on ensuring
product safety in an era of global supply chains. What proactive
measure should the CPSC take to prevent unsafe, foreign-made products
from being sold in the United States? How should CPSC work with
manufacturers, U.S. Customs and Border Patrol, and foreign governments
to protect American children and consumers from unsafe imported
products? Since passage of the landmark CPSIA legislation, does the
CPSC now have the resources and authority it needs to protect our
children from harmful and tainted products imported from foreign
countries?
Answer. Since all current expertise at the CPSC is not currently
available to me, it is premature for me to make specific
recommendations about what actions the CPSC should take concerning
foreign-made products being sold in the United States. However, I
believe that consumers wouldbenefit greatly from increased coordination
among manufacturers, U.S. Customs and Border Patrol (CBP), foreign
governments and the CPSC. Should I be confirmed, I would work to expand
the CPSC's port surveillance system, and ensure open communication with
foreign governments and manufacturers about the U.S. consumer product
safety laws, specifically CPSIA. I am aware of efforts to strengthen
the working efficiencies between CPSC and the CBP and would support
those efforts. I would work to ensure that the dollars appropriated to
CPSC would be used to accomplish the maximum protection for our
children. By taking advantage of the fast changing technologies that
are currently more widely available for tracking inventories, I would
hope that more could be accomplished at a lower cost.
Question 2. Product recalls are one of the main tools CPSC uses to
protect consumers. The CPSC website does provide helpful information
about recent recalls. However, as a consumer, it is not always easy to
know if you have a product at home that has been recalled for safety
reasons. Moreover, not all Americans have access to the Internet. What
are your thoughts for improving the effectiveness and response rate for
product recalls? In addition to using existing tools such as the new
consumer safety data base, what more can CPSC do to ensure that harmful
products are promptly removed from store shelves and American
households?
Answer. Should I be confirmed, I look forward to working to improve
the process for disseminating information about product recalls. As a
mother of six children, I know how important it is for parents, and for
all consumers, to have accurate information about the safety of the
products they use. I intend to closely review information the agency
already has that explains how the recalls are executed and how their
effectiveness is determined. Using that as a benchmark, I will want to
explore how the new consumer safety database can enhance access to
recall information as well as engage the public more in its
availability. We must also recognize that not all consumers have access
to the Internet, so I will work to ensure that those consumers have
better access to recall information as well. The goal of keeping
recalled products from harming consumers is of critical importance to
me.
Question 3. Given that CPSC has fewer than 500 employees and the
agency is charged with ensuring the safety of over 15,000 types of
consumer products, I would like to know your thoughts on how CPSC can
leverage its resources. For example, how will you work with state
attorneys general to help ensure compliance with consumer product
safety rules?
Answer. I want the agency to foster beneficial partnerships with
state attorneys general, as well as relevant state agencies, to achieve
our common goal of consumer protection. That will expand the impact and
effectiveness of the work at the CPSC. This is especially important in
light of the authority for state attorneys general to bring civil
action for appropriate injunctive relief under the provisions of the
CPSIA. A cooperative approach between Federal and state authorities
would result in the optimal use of resources to protect American
consumers. Should I be confirmed, I look forward to discussions with
Chairman Tenenbaum and the other Commissioners how best to work with
state attorneys general on enforcement.
Question 4. Congress gave CPSC the authority interpret the Consumer
Product Safety Improvement Act (CPSIA) to interpret the law's
requirements in a common sense way to allow the agency to exempt
certain from lead content rules. I do not believe motorcycles, for
example, should fall under the same lead ban that applies to children's
toys. As CPSC commissioner, will you support a flexible, common sense
approach to interpreting the law that ensures a high level of consumer
safety? Will you address the issue raised by constituents in my state
of motorcycles inappropriately falling under the same lead ban as
children's toys?
Answer. If confirmed, I am committed to regulating in a common
sense manner that maximizes protection to consumers and minimizes
burdens on those regulated to the extent that the law allows such
flexibility. In addition, I will request a briefing to determine the
status of the motorcycle issue, to determine what avenues of relief are
available, and work with you to determine how the issue can best be
addressed.
Question 5. CPSC and other regulatory agencies rely on consensus
standards developed by accredited standards development organizations.
The U.S. Code of Federal Regulations currently includes 6,000
references to such standards, including many in critical areas
involving health and safety.
Although CPSC technical experts participate in standards
development activities relevant to consumer safety, CPSC has often been
more reluctant than other agencies to reference existing voluntary
safety standards as mandatory requirements.
Last year, Congress directed CPSC to reference several such
standards, which are updated more regularly than consumer rules, in
order to ensure a higher level of children's safety. Congress also
instructed CPSC to reference updated versions of these standards
shortly after they are revised. How will you encourage CPSC staff to
continue to participate in standards development organizations that are
relevant to protecting consumer safety? Would you consider referencing
the resulting standards in consumer safety rules when they are
consistent with the Commission's regulatory objectives? How will you
ensure that CPSC rules stay current with emerging consumer safety
threats?
Answer. I understand that an important part of the CPSC staff work
is to participate in and support the development of voluntary consensus
standards. I believe that such standards are an essential element in
ensuring the safety of consumer products. While I understand that the
ongoing staff work on consensus standards has been diminished to focus
resources on the implementation of the CPSIA, with additional resources
now coming to the agency, this important work can resume. I will work
to support active participation by CPSC staff in consensus standards
work as the agency develops its ongoing work plans and budget for the
upcoming years.
I understand that the Consumer Product Safety Improvement Act
recognizes the role that consensus standards play in ensuring the
safety of consumer products by prohibiting mandatory rulemaking when a
voluntary consensus standard adequately addresses the risk of injury.
However, it is also my understanding that the CPSIA gives the agency
some additional flexibility to determine that products which do not
meet voluntary standards will be determined to be hazardous. This is an
important clarification and could be especially important in an import
context.
Identifying emerging product hazards is probably one of the most
difficult problems facing the Commission. While I am not yet an expert
on the resources the agency currently has to identify new product
hazards, this is an area where I believe adequate resources must be
devoted. In particular, the recently acquired new agency laboratory
facility will be helpful in carrying out this role. In addition, I
believe that the agency should leverage its resources by reaching out
to other Federal agencies and resources at the state and local level to
make sure that it is informed of research and data that touch on its
safety mission.
______
Response to Written Question Submitted by Hon. David Vitter to
Hon. Anne M. Northup
Question. I thank both nominees for meeting with me prior to their
consideration by the Committee. Also, I want to thank them for the good
discussions we had on three important topics: the need to find a quick
and fair resolution to the growing problem of tainted drywall from
China, to work at the CPSC and with other Federal agencies to address
the overall problem of products imported from China that are unsafe,
and to ensure that the process leading to final regulations regarding
phthalates will be based on sound science.
On the last topic, I also want to ask that the nominees, if they
are confirmed, carefully review the proposed Statement of Policy on the
testing procedures for products subject to the interim ban on high-
molecular-weight phthalates. This policy under consideration would
require testing of components that are inaccessible by children. This
testing standard is different than what the Consumer Products Safety
Improvement Act included for components with certain levels of lead
that are inaccessible. I hope that the commission will carefully weigh
the benefits and costs of the extra testing requirements, while
continuing to ensure both safety of children and fairness to
manufacturers with sound science as the backing for testing during the
interim period and after the final regulations.
Answer. I believe that the decisions of the Commission must always
be based on sound science. If confirmed as a Commissioner, I would
always take this approach, to the extent allowed by law.
With respect to phthalates specifically, I understand that there
are a number of unanswered questions, not only with respect to
phthalates, but also with respect to substitutes for which there is
little information about health effects. I understand that the CPSC is
assembling a Chronic Hazard Advisory Panel that is required to complete
its investigation within 180 days and that the Commission will then
make a final determination. If I am confirmed, I will work to ensure
that the Panel is impartial in its makeup and completes its work on
schedule.