Strengthening America's Strategic National Stockpile Act of 2020
This bill makes changes to the administration and management of the Strategic National Stockpile.
Among these changes, the bill authorizes through September 30, 2023, the Department of Health and Human Services (HHS) to transfer supplies from the stockpile to any federal departments or agencies under certain conditions. HHS must also ensure the contents of the stockpile remain in working order and may enter into maintenance service contracts to carry out this requirement.
Furthermore, as part of its management of the stockpile, HHS must establish and maintain domestic reserves of certain supplies, including by entering into cooperative agreements or partnerships to access facilities and equipment to produce these supplies. The authority for such agreements and partnerships terminates on September 30, 2023.
Additionally, the bill temporarily authorizes HHS to award grants to states for maintaining stockpiles of certain equipment and supplies for use during public health emergencies.
HHS must also develop transparent processes for the use and distribution of supplies from the stockpile that address, for example, the prioritization of requests. Additionally, during the COVID-19 (i.e., coronavirus disease 2019) emergency, the Office of the Assistant Secretary for Preparedness and Response must report monthly on requests for supplies from states, tribes, and other jurisdictions. These reports must include the rationale for any partially fulfilled or denied requests.
Lastly, the Government Accountability Office must study the feasibility of establishing user fees to offset costs for procuring single-source materials for, and distributing such materials from, the stockpile.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7574 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7574
To amend the Public Health Service Act with respect to the Strategic
National Stockpile, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 13, 2020
Ms. Slotkin (for herself, Mrs. Brooks of Indiana, Ms. Eshoo, Mr. Carter
of Georgia, Mrs. Dingell, Mrs. Walorski, Ms. DeGette, Mr. McKinley, Mr.
Butterfield, Mr. Van Drew, Mr. Soto, Mr. Upton, Mr. Malinowski, Mr.
Hudson, Ms. Schrier, Mr. Gianforte, Mr. Cisneros, Mr. Neguse, and Mr.
Burgess) introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Public Health Service Act with respect to the Strategic
National Stockpile, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Strengthening
America's Strategic National Stockpile Act of 2020''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Reimbursable transfers.
Sec. 3. Equipment maintenance.
Sec. 4. Supply chain flexibility manufacturing pilot.
Sec. 5. GAO study on the feasibility and benefits of a user fee
agreement.
Sec. 6. Grants for State strategic stockpiles.
Sec. 7. Action reporting.
Sec. 8. Improved, transparent processes.
Sec. 9. Authorization of appropriations.
SEC. 2. REIMBURSABLE TRANSFERS.
Section 319F-2(a) of the Public Health Service Act (42 U.S.C. 247d-
6b(a)) is amended by adding at the end the following:
``(6) Transfers and reimbursements.--
``(A) In general.--Without regard to chapter 5 of
title 40, United States Code, the Secretary may
transfer to any Federal department or agency, on a
reimbursable basis, any drugs, vaccines and other
biological products, medical devices, and other
supplies in the stockpile if--
``(i) the transferred supplies are less
than six months from expiry;
``(ii) the stockpile is able to replenish
the supplies, as appropriate; and
``(iii) the Secretary decides the transfer
is in the best interest of the United States
Government.
``(B) Use of reimbursement.--Reimbursement derived
from the transfer of supplies pursuant to subparagraph
(A) may be used by the Secretary, without further
appropriation and without fiscal year limitation, to
carry out this section.
``(C) Report.--Not later than September 30, 2022,
the Secretary shall submit to the Committee on Energy
and Commerce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of
the Senate a report on each transfer made under this
paragraph and the amount received by the Secretary in
exchange for that transfer.
``(D) Sunset.--The authority to make transfers
under this paragraph shall cease to be effective on
September 30, 2023.''.
SEC. 3. EQUIPMENT MAINTENANCE.
Section 319F-2 of the Public Health Service Act (42 U.S.C. 247d-6b)
is amended--
(1) in subsection (a)(3)--
(A) in subparagraph (I), by striking ``; and'' and
inserting a semicolon; and
(B) by inserting the following new subparagraph at
the end:
``(K) ensure contents of the stockpile remain in
good working order and, as appropriate, conduct
maintenance services on contents of the stockpile;
and''; and
(2) in subsection (c)(7)(B), by adding at the end the
following new clause:
``(ix) Equipment maintenance service.--In
carrying out this section, the Secretary may
enter into contracts for the procurement of
equipment maintenance services.''.
SEC. 4. SUPPLY CHAIN FLEXIBILITY MANUFACTURING PILOT.
(a) In General.--Section 319F-2(a)(3) of the Public Health Service
Act (42 U.S.C. 247d-6b(a)(3)), as amended by section 3, is further
amended by adding at the end the following new subparagraph:
``(L) enhance medical supply chain elasticity and
establish and maintain domestic reserves of critical
medical supplies (including personal protective
equipment, ancillary medical supplies, and other
applicable supplies required for the administration of
drugs, vaccines and other biological products, and
other medical devices (including diagnostic tests))
by--
``(i) increasing emergency stock of
critical medical supplies;
``(ii) geographically diversifying
production of such medical supplies;
``(iii) purchasing, leasing, or entering
into joint ventures with respect to facilities
and equipment for the production of such
medical supplies; and
``(iv) working with distributors of such
medical supplies to manage the domestic
reserves established under this subparagraph by
refreshing and replenishing stock of such
medical supplies.''.
(b) Reporting; Sunset.--Section 319F-2(a) of the Public Health
Service Act (42 U.S.C. 247d-6b(a)), as amended by section 2, is further
amended by adding at the end the following:
``(7) Reporting.--Not later than September 30, 2022, the
Secretary shall submit to the Committee on Energy and Commerce
of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate a report on the
details of each purchase, lease, or joint venture entered into
under paragraph (3)(L), including the amount expended by the
Secretary on each such purchase, lease, or joint venture.
``(8) Sunset.--The authority to make purchases, leases, or
joint ventures pursuant to paragraph (3)(L) shall cease to be
effective on September 30, 2023.''.
(c) Funding.--Section 319F-2(f) of the Public Health Service Act
(42 U.S.C. 247d-6b(f)) is amended by adding at the end the following:
``(3) Supply chain elasticity.--
``(A) In general.--For the purpose of carrying out
subsection (a)(3)(L), there is authorized to be
appropriated $500,000,000 for each of fiscal years 2020
through 2023, to remain available until expended.
``(B) Relation to other amounts.--The amount
authorized to be appropriated by subparagraph (A) for
the purpose of carrying out subsection (a)(3)(L) is in
addition to any other amounts available for such
purpose.''.
SEC. 5. GAO STUDY ON THE FEASIBILITY AND BENEFITS OF A USER FEE
AGREEMENT.
(a) In General.--The Comptroller General of the United States shall
conduct a study to investigate the feasibility of establishing user
fees to offset certain Federal costs attributable to the procurement of
single-source materials for the Strategic National Stockpile under
section 319F-2 of the Public Health Service Act (42 U.S.C. 247d-6b) and
distributions of such materials from the Stockpile. In conducting this
study, the Comptroller General shall consider, to the extent
information is available--
(1) whether entities receiving such distributions generate
profits from those distributions;
(2) any Federal costs attributable to such distributions;
(3) whether such user fees would provide the Secretary with
funding to potentially offset procurement costs of such
materials for the Strategic National Stockpile; and
(4) any other issues the Comptroller General identifies as
relevant.
(b) Report.--Not later than February 1, 2023, the Comptroller
General of the United States shall submit to the Congress a report on
the findings and conclusions of the study under subsection (a).
SEC. 6. GRANTS FOR STATE STRATEGIC STOCKPILES.
Title III of the Public Health Service Act is amended by inserting
after section 319F-4 of such Act (42 U.S.C. 247d-6e) the following new
section:
``SEC. 319F-5. GRANTS FOR STATE STRATEGIC STOCKPILES.
``(a) In General.--The Secretary may establish a pilot program
consisting of awarding grants to States to expand or maintain a
strategic stockpile of commercially available drugs, medical equipment,
personal protective equipment, and other products deemed by the State
to be essential in the event of a public health emergency.
``(b) Allowable Use of Funds.--
``(1) Uses.--A State receiving a grant under this section
may use the grant funds to--
``(A) acquire commercially available products
listed pursuant to paragraph (2) for inclusion in the
State's strategic stockpile;
``(B) store, maintain, and distribute products in
such stockpile; and
``(C) conduct planning in connection with such
activities.
``(2) List.--The Secretary shall develop and publish a list
of the products that are eligible, as described in subsection
(a), for inclusion in a State's strategic stockpile using funds
received under this section.
``(3) Consultation.--In developing the list under paragraph
(2) and otherwise determining the allowable uses of grant funds
under this section, the Secretary shall consult with States and
relevant stakeholders, including public health organizations.
``(c) Funding Requirement.--The Secretary may not obligate or
expend any funds to award grants or fund any previously awarded grants
under this section for a fiscal year unless the total amount made
available to carry out section 319F-2 for such fiscal year is equal to
or greater than the total amount of funds made available to carry out
section 319F-2 for fiscal year 2020.
``(d) Matching Funds.--
``(1) In general.--With respect to the costs of expanding
and maintaining a strategic stockpile through a grant under
this section, as a condition on receipt of the grant, a State
shall make available (directly) non-Federal contributions in
cash toward such costs in an amount that is equal to not less
than the amount of Federal funds provided through the grant.
``(2) Waiver.--The Secretary may waive the requirement of
paragraph (1) with respect to a State for the first two years
of the State receiving a grant under this section if the
Secretary determines that such waiver is needed for the State
to establish a strategic stockpile described in subsection (a).
``(e) Technical Assistance.--The Secretary shall provide technical
assistance to States in establishing, expanding, and maintaining a
stockpile described in subsection (a).
``(f) Definition.--In this section, the term `drug' has the meaning
given to that term in section 201 of the Federal Food, Drug, and
Cosmetic Act.
``(g) Authorization of Appropriations.--To carry out this section,
there is authorized to be appropriated $3,500,000,000 for each of
fiscal years 2020 through 2023, to remain available until expended.
``(h) Sunset.--The authority vested by this section terminates at
the end of fiscal year 2023.''.
SEC. 7. ACTION REPORTING.
(a) In General.--The Assistant Secretary for Preparedness and
Response (in this section referred to as the ``Assistant Secretary''),
in coordination with the Administrator of the Federal Emergency
Management Agency, shall--
(1) not later than 30 days after the date of enactment of
this Act, issue a report to the Committee on Energy and
Commerce of the House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the Senate regarding
all State, local, Tribal, and territorial requests for supplies
from the Strategic National Stockpile related to COVID-19; and
(2) not less than every 30 days thereafter through the end
of the emergency period (as such term is defined in section
1135(g)(1)(B) of the Social Security Act (42 U.S.C. 1320b-
5(g)(1)(B))), submit to such committees an updated version of
such report.
(b) Reporting Period.--
(1) Initial report.--The initial report under subsection
(a) shall address all requests described in such subsection
made during the period--
(A) beginning on January 31, 2020; and
(B) ending on the date that is 30 days before the
date of submission of the report.
(2) Updates.--Each update to the report under subsection
(a) shall address all requests described in such subsection
made during the period--
(A) beginning at the end of the previous reporting
period under this section; and
(B) ending on the date that is 30 days before the
date of submission of the updated report.
(c) Contents of Report.--The report under subsection (a) (and
updates thereto) shall include--
(1) the details of each request described in such
subsection, including--
(A) the specific medical countermeasures, devices,
personal protective equipment, and other materials
requested; and
(B) the amount of such materials requested; and
(2) the outcomes of each request described in subsection
(a), including--
(A) whether the request was wholly fulfilled,
partially fulfilled, or denied;
(B) if the request was wholly or partially
fulfilled, the fulfillment amount; and
(C) if the request was partially fulfilled or
denied, a rationale for such outcome.
SEC. 8. IMPROVED, TRANSPARENT PROCESSES.
(a) In General.--Not later than January 1, 2021, the Secretary of
Health and Human Services, in collaboration with the Assistant
Secretary for Preparedness and Response and the Director of the Centers
for Disease Control and Prevention, shall develop and implement
improved, transparent processes for the use and distribution of drugs,
vaccines and other biological products, medical devices, and other
supplies (including personal protective equipment, ancillary medical
supplies, and other applicable supplies required for the administration
of drugs, vaccines and other biological products, medical devices, and
diagnostic tests) in the Strategic National Stockpile under section
319F-2 of the Public Health Service Act (42 U.S.C. 247d-6b) (in this
section referred to as the ``Stockpile'').
(b) Processes.--The processes developed under subsection (a) shall
include--
(1) the form and manner in which States, localities,
Tribes, and territories are required to submit requests for
supplies from the Stockpile;
(2) the criteria used by the Secretary of Health and Human
Services in responding to such requests, including the reasons
for fulfilling or denying such requests;
(3) what circumstances result in prioritization of
distribution of supplies from the Stockpile to States,
localities, Tribes, or territories;
(4) clear plans for future, urgent communication between
the Secretary and States, localities, Tribes, and territories
regarding the outcome of such requests; and
(5) any differences in the processes developed under
subsection (a) for geographically related emergencies, such as
weather events, and national emergencies, such as pandemics.
(c) Classification.--The processes developed under subsection (a)
shall be unclassified to the greatest extent possible consistent with
national security. The Secretary of Health and Human Services may
classify portions of such processes as necessary to protect national
security.
(d) Report to Congress.--Not later than January 1, 2021, the
Secretary of Health and Human Services shall--
(1) submit a report to the Committee on Energy and Commerce
of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate regarding the
improved, transparent processes developed under this section;
(2) include in such report recommendations for
opportunities for communication (by telebriefing, phone calls,
or in-person meetings) between the Secretary and States,
localities, Tribes, and territories regarding such improved,
transparent processes; and
(3) submit such report in unclassified form to the greatest
extent possible, except that the Secretary may include a
classified appendix if necessary to protect national security.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
Section 319F-2(f)(1) of the Public Health Service Act (42 U.S.C.
247d-6b(f)(1)) is amended by striking ``$610,000,000 for each of fiscal
years 2019 through 2023'' and inserting ``$705,000,000 for each of
fiscal years 2020 through 2023''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 116-518.
Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 116-518.
Placed on the Union Calendar, Calendar No. 418.
Mrs. Dingell moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H4618-4620)
DEBATE - The House proceeded with forty minutes of debate on H.R. 7574.
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4618-4620)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.