II

106TH CONGRESS

2D SESSION S. 2132

To create incentives for private sector research related to developing vaccines

against widespread diseases and ensure that such vaccines are affordable

and widely distributed.

IN THE SENATE OF THE UNITED STATES

MARCH 1, 2000

Mr. KERRY (for himself, Mr. FRIST, and Mrs. MURRAY) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To create incentives for private sector research related to

developing vaccines against widespread diseases and ensure that such vaccines are affordable and widely distributed.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Vaccines for the New

5 Millennium Act of 2000’’.

6 SEC. 2. FINDINGS.

7 Congress finds the following:
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1 (1) Vaccines are among the most cost-effective

2 weapons in the arsenal of modern medicine to stop

3 the spread of contagious diseases and strengthen an

4 individual’s immune system to resist a wide range of

5 infectious diseases, and vaccines offer a relatively in6 expensive means of lowering a society’s overall cost

7 of medical care.

8 (2) Every year, up to 3,000,000 children’s lives

9 are saved as the result of early childhood immuniza10 tions. But almost 3,000,000 more lives worldwide

11 are lost from diseases that could be prevented with

12 existing vaccines.

13 (3) Today, 1 in 4 children do not receive the 6

14 basic vaccinations: polio, diptheria, whooping cough,

15 tetanus, measles, and tuberculosis. The proportion of

16 children immunized against these 6 diseases has de17 clined in recent years, from approximately 80 per18 cent in 1990 to 74 percent in 1998.

19 (4) Safe, effective, and universal immunization

20 is a means to end the tragedy of avoidable childhood

21 deaths, and a means to improve the overall health,

22 productivity, and security of society.

23 (5) As well as the challenges of increasing ac24 cess to existing vaccines, there are additional chal25 lenges for research and development of new vaccines.
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1 Over 5,000,000 people die annually from HIV, tu2 berculosis, and malaria. Vaccines against these in3 fectious diseases are urgently needed.

4 (6) The spread of HIV is a human tragedy that

5 is reversing previous gains in life expectancy and ex6 acerbating poverty in developing countries. Over

7 33,000,000 people are infected with HIV, and the

8 disease will kill more than 2,500,000 people this

9 year. More than 11,000,000 children worldwide have

10 been orphaned by AIDS and 16,000 people become

11 newly infected every day.

12 (7) While an estimated $2,000,000,000 is spent

13 annually on research for AIDS treatment, much of

14 it by the private sector, the total global research and

15 development for preventive HIV vaccines is substan16 tially less, perhaps as little as $300,000,000, and of

17 the amount spent on lifesaving vaccine research,

18 only a fraction is financed by private sector drug

19 manufacturers.

20 (8) Between 7,000,000 and 8,000,000 individ21 uals develop active tuberculosis every year and

22 2,000,000 to 3,000,000 individuals die from tuber23 culosis each year, with tuberculosis accounting for

more than 1 24 ⁄4 of all preventable adult deaths in de25 veloping countries. An individual is newly infected
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1 with tuberculosis every second, and someone dies of

2 tuberculosis every 10 seconds.

3 (9) Each year, 300,000,000 to 500,000,000 in4 dividuals become ill with malaria, and approximately

5 1,000,000 individuals die from the disease, exacting

6 an enormous toll in lives, medical costs, and lost

7 productivity. The majority of those who die from

8 malaria are children under the age of 5. One person

9 dies from malaria every 30 seconds.

10 (10) While additional public funds for basic re11 search are critical in the effort to find vaccines for

12 HIV, malaria, and tuberculosis, equally important is

13 a concerted effort by private sector drug manufac14 turers to find vaccines for these 3 major infectious

15 diseases.

16 (11) Additional, targeted public subsidies for

17 private sector lifesaving vaccine research and devel18 opment are justified on the basis that achieving ef19 fective and affordable vaccines for HIV, malaria,

20 and tuberculosis will yield public benefits beyond

21 those benefits captured by the manufacturer.

22 SEC. 3. UNIVERSAL EARLY CHILDHOOD IMMUNIZATIONS.

23 Section 104(c)(3) of the Foreign Assistance Act of

24 1961 (22 U.S.C. 2151b(c)(3)) is amended in the fourth

25 sentence by striking ‘‘the protection of’’ and all that fol-
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1 lows through ‘‘1991’’ and inserting ‘‘the universal protec2 tion of all children from immunizable diseases by Decem3 ber 31, 2009’’.

4 SEC. 4. VOLUNTARY CONTRIBUTION TO GLOBAL ALLIANCE

5 FOR VACCINES AND IMMUNIZATIONS AND

6 INTERNATIONAL AIDS VACCINE INITIATIVE.

7 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

8 302 of the Foreign Assistance Act of 1961 (22 U.S.C.

9 2222) is amended by adding at the end the following:

10 ‘‘(j) In addition to amounts otherwise available under

11 this section, there are authorized to be appropriated to

12 the President for fiscal year 2001 an amount not in excess

13 of $50,000,000 and for fiscal year 2002 an amount not

14 in excess of $100,000,000 to be available only for United

15 States contributions to the Global Alliance for Vaccines

16 and Immunizations.

17 ‘‘(k) In addition to amounts otherwise available under

18 this section, there are authorized to be appropriated to

19 the President for fiscal year 2001 $10,000,000 and for

20 fiscal year 2002 $20,000,000 to be available only for

21 United States contributions to the International AIDS

22 Vaccine Initiative.’’.

23 (b) REPORT.—The President shall include in the July

24 1 report submitted to Congress under section 305(b)(1)

25 of the Foreign Assistance Act of 1961 (22 U.S.C.
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1 2226(b)(1)) for fiscal years 2001 and 2002 a report on

2 the effectiveness of the Global Alliance for Vaccines and

3 Immunizations in meeting the goals of—

4 (1) improving access to sustainable immuniza5 tion services;

6 (2) expanding the use of all existing, safe, and

7 cost-effective vaccines where they address a public

8 health problem;

9 (3) accelerating the development and introduc10 tion of new vaccines and technologies;

11 (4) accelerating research and development ef12 forts for vaccines needed primarily in developing

13 countries; and

14 (5) making immunization coverage a center15 piece in international development efforts.

16 SEC. 5. CREDIT FOR MEDICAL RESEARCH RELATED TO DE17 VELOPING VACCINES AGAINST WIDESPREAD

18 DISEASES.

19 (a) IN GENERAL.—Subpart D of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of

21 1986 (relating to business related credits) is amended by

22 adding at the end the following new section:
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1 ‘‘SEC. 45D. CREDIT FOR MEDICAL RESEARCH RELATED TO

2 DEVELOPING VACCINES AGAINST WIDE3 SPREAD DISEASES.

4 ‘‘(a) GENERAL RULE.—For purposes of section 38,

5 the vaccine research credit determined under this section

6 for the taxable year is an amount equal to 50 percent of

7 the excess (if any) of—

8 ‘‘(1) the qualified vaccine research expenses for

9 the taxable year, over

10 ‘‘(2) the base amount.

11 ‘‘(b) QUALIFIED VACCINE RESEARCH EXPENSES.—

12 For purposes of this section—

13 ‘‘(1) QUALIFIED VACCINE RESEARCH EX14 PENSES.—

15 ‘‘(A) IN GENERAL.—Except as otherwise

16 provided in this paragraph, the term ‘qualified

17 vaccine research expenses’ means the amounts

18 which are paid or incurred by the taxpayer dur19 ing the taxable year which would be described

20 in subsection (b) of section 41 if such sub21 section were applied with the modifications set

22 forth in subparagraph (B).

23 ‘‘(B) MODIFICATIONS.—For purposes of

24 subparagraph (A), subsection (b) of section 41

25 shall be applied—
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1 ‘‘(i) by substituting ‘vaccine research’

2 for ‘qualified research’ each place it ap3 pears in paragraphs (2) and (3) of such

4 subsection, and

5 ‘‘(ii) by substituting ‘75 percent’ for

6 ‘65 percent’ in paragraph (3)(A) of such

7 subsection.

8 ‘‘(C) EXCLUSION FOR AMOUNTS FUNDED

9 BY GRANTS, ETC.—The term ‘qualified vaccine

10 research expenses’ shall not include any amount

11 to the extent such amount is funded by any

12 grant, contract, or otherwise by another person

13 (or any governmental entity).

14 ‘‘(2) VACCINE RESEARCH.—

15 ‘‘(A) IN GENERAL.—The term ‘vaccine re16 search’ means research to develop vaccines and

17 microbicides for—

18 ‘‘(i) malaria,

19 ‘‘(ii) tuberculosis,

20 ‘‘(iii) HIV, or

21 ‘‘(iv) any infectious disease (of a sin22 gle etiology) that is determined by the Sec23 retary of Health and Human Services

24 (after consultation with the Director of the

25 Center for Disease Control and Prevention
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1 and the Administrator of the United States

2 Agency for International Development) to

3 cause the deaths of over 1,000,000 people

4 worldwide each year.

5 ‘‘(B) MICROBICIDE.—The term

6 ‘microbicide’ means a substance used topically

7 for prevention from infection by an identified

8 pathogen.

9 ‘‘(C) VACCINE.—The term ‘vaccine’ means

10 a product using all or portions of the disease11 causing organism or nucleic acid sequences for

12 prevention from infection by an identified

13 pathogen.

14 ‘‘(c) BASE AMOUNT.—For purposes of this section,

15 the term ‘base amount’ means the amount which would

16 be determined for the taxable year under section 41(c)

17 (without regard to paragraph (4) thereof) if such sub18 section were applied by substituting ‘qualified vaccine re19 search expenses’ for ‘qualified research expenses’ each

20 place it appears.

21 ‘‘(d) COORDINATION WITH CREDIT FOR INCREASING

22 RESEARCH EXPENDITURES.—Any qualified vaccine re23 search expenses for a taxable year to which an election

24 under this section applies shall not be taken into account
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1 for purposes of determining the credit allowable under sec2 tion 41 for such taxable year.

3 ‘‘(e) SPECIAL RULES.—

4 ‘‘(1) CERTAIN RULES MADE APPLICABLE.—

5 Rules similar to the rules of paragraphs (1) and (2)

6 of section 41(f) shall apply for purposes of this sec7 tion.

8 ‘‘(2) ELECTION.—This section (other than sub9 section (f)) shall apply to any taxpayer for any tax10 able year only if such taxpayer elects to have this

11 section apply for such taxable year.

12 ‘‘(f) SHAREHOLDER EQUITY INVESTMENT CREDIT IN

13 LIEU OF RESEARCH CREDIT.—

14 ‘‘(1) IN GENERAL.—For purposes of section 38,

15 the vaccine research credit determined under this

16 section for the taxable year shall include an amount

17 equal to 25 percent of the amount paid by the tax18 payer to acquire qualified research stock in a cor19 poration if—

20 ‘‘(A) the amount received by the corpora21 tion for such stock is used within 18 months

22 after the amount is received to pay qualified

23 vaccine research expenses of the corporation for

24 which a credit would (but for subparagraph (B)
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1 and subsection (d)(3)) be determined under this

2 section, and

3 ‘‘(B) the corporation waives its right to the

4 credit determined under this section for the

5 qualified vaccine research expenses which are

6 paid with such amount.

7 ‘‘(2) QUALIFIED RESEARCH STOCK.—For pur8 poses of paragraph (1), the term ‘qualified research

9 stock’ means any stock in a C corporation—

10 ‘‘(A) which is originally issued after the

11 date of the enactment of the Vaccine for the

12 New Millennium Act of 2000,

13 ‘‘(B) which is acquired by the taxpayer at

14 its original issue (directly or through an under15 writer) in exchange for money or other property

16 (not including stock), and

17 ‘‘(C) as of the date of issuance, such cor18 poration meets the gross assets tests of sub19 paragraphs (A) and (B) of section

20 1202(d)(1).’’.

21 (b) INCLUSION IN GENERAL BUSINESS CREDIT.—

22 (1) IN GENERAL.—Section 38(b) of the Internal

23 Revenue Code of 1986 (relating to current year

24 business credit) is amended by striking ‘‘plus’’ at the

25 end of paragraph (11), by striking the period at the
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1 end of paragraph (12) and inserting ‘‘, plus’’, and

2 by adding at the end the following new paragraph:

3 ‘‘(13) the vaccine research credit determined

4 under section 45D.’’.

5 (2) TRANSITION RULE.—Section 39(d) of such

6 Code (relating to transitional rules) is amended by

7 adding at the end the following new paragraph:

8 ‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT

9 BEFORE ENACTMENT.—No portion of the unused

10 business credit for any taxable year which is attrib11 utable to the vaccine research credit determined

12 under section 45D may be carried back to a taxable

13 year ending before the date of the enactment of sec14 tion 45D.’’.

15 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of

16 the Internal Revenue Code of 1986 (relating to certain

17 expenses for which credits are allowable) is amended by

18 adding at the end the following new subsection:

19 ‘‘(d) CREDIT FOR QUALIFIED VACCINE RESEARCH

20 EXPENSES.—

21 ‘‘(1) IN GENERAL.—No deduction shall be al22 lowed for that portion of the qualified vaccine re23 search expenses (as defined in section 45D(b)) oth24 erwise allowable as a deduction for the taxable year
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1 which is equal to the amount of the credit deter2 mined for such taxable year under section 45D(a).

3 ‘‘(2) CERTAIN RULES TO APPLY.—Rules similar

4 to the rules of paragraphs (2), (3), and (4) of sub5 section (c) shall apply for purposes of this sub6 section.’’.

7 (d) DEDUCTION FOR UNUSED PORTION OF CRED8 IT.—Section 196(c) of the Internal Revenue Code of 1986

9 (defining qualified business credits) is amended by strik10 ing ‘‘and’’ at the end of paragraph (7), by striking the

11 period at the end of paragraph (8) and inserting ‘‘, and’’,

12 and by adding at the end the following new paragraph:

13 ‘‘(9) the vaccine research credit determined

14 under section 45D(a) (other than such credit deter15 mined under the rules of section 280C(d)(2)).’’.

16 (e) CLERICAL AMENDMENT.—The table of sections

17 for subpart D of part IV of subchapter A of chapter 1

18 of the Internal Revenue Code of 1986 is amended by add19 ing at the end the following new item:

‘‘Sec. 45D. Credit for medical research related to developing vaccines against widespread diseases.’’.

20 (f) EFFECTIVE DATE.—The amendments made by

21 this section shall apply to taxable years ending after the

22 date of the enactment of this Act.

23 (g) DISTRIBUTION OF VACCINES DEVELOPED USING

24 CREDIT.—It is the sense of Congress that if a tax credit
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1 is allowed under section 45D of the Internal Revenue Code

2 of 1986 to any corporation or shareholder of a corporation

3 by reason of vaccine research expenses incurred by the

4 corporation in the development of a vaccine, such corpora5 tion should certify to the Secretary of the Treasury that,

6 within 1 year after that vaccine is first licensed, such cor7 poration will establish a good faith plan to maximize inter8 national access to high quality and affordable vaccines.

9 (h) STUDY.—The Secretary of the Treasury, in con10 sultation with the Institute of Medicine, shall conduct a

11 study of the effectiveness of the credit under section 45D

12 of the Internal Revenue Code of 1986 in stimulating vac13 cine research. Not later than the date which is 4 years

14 after the date of the enactment of this Act, the Secretary

15 shall submit to the Congress the results of such study to16 gether with any recommendations the Secretary may have

17 to improve the effectiveness of such credit in stimulating

18 vaccine research.

19 SEC. 6. CREDIT FOR CERTAIN SALES OF LIFESAVING VAC20 CINES.

21 (a) IN GENERAL.—Subpart D of part IV of sub22 chapter A of chapter 1 of the Internal Revenue Code of

23 1986 (relating to business related credits), as amended by

24 section 5(a), is amended by adding at the end the fol25 lowing new section:
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1 ‘‘SEC. 45E. CREDIT FOR CERTAIN SALES OF LIFESAVING

2 VACCINES.

3 ‘‘(a) IN GENERAL.—For purposes of section 38, the

4 lifesaving vaccine sale credit determined under this section

5 with respect to a taxpayer for the taxable year is an

6 amount equal to the amount of qualified vaccine sales for

7 the taxable year.

8 ‘‘(b) QUALIFIED VACCINE SALES.—For purposes of

9 this section—

10 ‘‘(1) IN GENERAL.—The term ‘qualified vaccine

11 sales’ means the aggregate amount paid to the tax12 payer for a qualified sale.

13 ‘‘(2) QUALIFIED SALE.—

14 ‘‘(A) IN GENERAL.—The term ‘qualified

15 sale’ means a sale of a qualified vaccine—

16 ‘‘(i) to a nonprofit organization, gov17 ernmental unit, or government of any for18 eign government, and

19 ‘‘(ii) for distribution in a developing

20 country.

21 ‘‘(B) DEVELOPING COUNTRY.—For pur22 poses of this paragraph, the term ‘developing

23 country’ means a country which the Inter24 national Bank for Reconstruction and Develop25 ment (commonly referred to as the ‘World
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1 Bank’) determines to be a country with a lower

2 middle income or less.

3 ‘‘(3) QUALIFIED VACCINE.—The term ‘qualified

4 vaccine’ means a vaccine (as defined in section

5 4132(a)(2)) which is—

6 ‘‘(A) approved by the Food and Drug Ad7 ministration as a new drug after the date of the

8 enactment of this paragraph, and

9 ‘‘(B) used for—

10 ‘‘(i) malaria,

11 ‘‘(ii) tuberculosis,

12 ‘‘(iii) HIV, or

13 ‘‘(iv) any infectious disease (of a sin14 gle etiology) that is determined by the Sec15 retary of Health and Human Services

16 (after consultation with the Director of the

17 Center for Disease Control and Prevention

18 and the United States Agency for Inter19 national Development) to cause the deaths

20 of over 1,000,000 people worldwide each

21 year.

22 ‘‘(c) LIMIT ON AMOUNT OF CREDIT.—The maximum

23 amount of the credit allowable under subsection (a) with

24 respect to a sale shall not exceed the portion of the limita-
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1 tion amount allocated under subsection (d) with respect

2 to such sale.

3 ‘‘(d) NATIONAL LIMITATION ON AMOUNT OF CRED4 ITS.—

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (3), there is a lifesaving vaccine sale credit for

7 each calendar year equal to—

8 ‘‘(A) $100,000,000 for each of years 2002

9 through 2006,

10 ‘‘(B) $125,000,000 for each of years 2007

11 through 2010, and

12 ‘‘(C) zero after 2011.

13 ‘‘(2) ALLOCATION OF LIMITATION.—

14 ‘‘(A) IN GENERAL.—The limitation amount

15 under paragraph (1) shall be allocated on a

16 competitive basis for any calendar year by the

17 Secretary (in consultation with the Adminis18 trator of the United States Agency for Inter19 national Development) among organizations

20 with an approved application.

21 ‘‘(B) APPROVED APPLICATION.—For pur22 poses of subparagraph (A), the term ‘approved

23 application’ means an application which is ap24 proved by the Administrator of the United

25 States Agency for International Development
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1 with respect to a qualified sale made during the

2 calendar year. Such application shall be made

3 at such time and in such form and manner as

4 the Administrator shall prescribe by regulation

5 and shall include a detailed and cost-effective

6 plan for distribution of the vaccine.

7 ‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If

8 the limitation amount under paragraph (1) for any

9 calendar year exceeds the aggregate amount allo10 cated under paragraph (2), such limitation for the

11 following calendar year shall be increased by the

12 amount of such excess. The limitation amount shall

13 remain available until expended.

14 ‘‘(e) SPECIAL RULES.—For purposes of this section,

15 rules similar to the rules of section 41(f)(2) shall apply.’’.

16 (b) INCLUSION IN GENERAL BUSINESS CREDIT.—

17 (1) IN GENERAL.—Section 38(b) of the Internal

18 Revenue Code of 1986 (relating to current year

19 business credit), as amended by section 5(b)(1), is

20 amended by striking ‘‘plus’’ at the end of paragraph

21 (12), by striking the period at the end of paragraph

22 (13) and inserting ‘‘, plus’’, and by adding at the

23 end the following new paragraph:

24 ‘‘(14) the lifesaving vaccine sale credit deter25 mined under section 45E.’’.
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1 (2) TRANSITION RULE.—Section 39(d) of such

2 Code (relating to transitional rules), as amended by

3 section 5(b)(2), is amended by adding at the end the

4 following new paragraph:

5 ‘‘(10) NO CARRYBACK OF SECTION 45E CREDIT

6 BEFORE ENACTMENT.—No portion of the unused

7 business credit for any taxable year which is attrib8 utable to the lifesaving vaccine sale credit deter9 mined under section 45E may be carried back to a

10 taxable year ending before the date of the enactment

11 of section 45E.’’.

12 (c) CLERICAL AMENDMENT.—The table of sections

13 for subpart D of part IV of subchapter A of chapter 1

14 of the Internal Revenue Code of 1986, as amended by sec15 tion 5(e), is amended by adding at the end the following

16 new item:

‘‘Sec. 45E. Credit for certain sales of lifesaving vaccines.’’.

17 (d) EFFECTIVE DATE.—The amendments made by

18 this section shall apply to sales of vaccines in taxable years

19 beginning after December 31, 2000.

20 SEC. 7. LIFESAVING VACCINE PURCHASE FUND.

21 (a) PURPOSE.—It is the purpose of this section to—

22 (1) create incentives for private sector research

23 into vaccines for HIV, malaria, tuberculosis, and

24 other major infectious diseases; and
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1 (2) ensure that vaccines for major infectious

2 diseases are affordable and widely distributed.

3 (b) DEFINITIONS.—In this section:

4 (1) DEVELOPING COUNTRY.—The term ‘‘devel5 oping country’’ means a country which the Inter6 national Bank for Reconstruction and Development

7 (commonly referred to as the ‘‘World Bank’’) deter8 mines to be a country with a lower middle income

9 or less.

10 (2) ELIGIBLE VACCINE.—The term ‘‘eligible

11 vaccine’’ has the meaning given the term ‘‘qualified

12 vaccine’’ in section 45E(b)(3) of the Internal Rev13 enue Code of 1986.

14 (c) ESTABLISHMENT OF TRUST FUND.—There is es15 tablished in the Treasury of the United States a trust fund

16 to be known as the ‘‘Lifesaving Vaccine Purchase Fund’’

17 (in this section referred to as the ‘‘Fund’’) consisting of

18 amounts appropriated under subsection (f).

19 (d) INVESTMENT OF FUND.—Amounts in the Fund

20 shall be invested in accordance with section 9702 of title

21 31, United States Code, and any interest on, and proceeds

22 from any such investment shall be credited to and become

23 part of the Fund.

24 (e) USE OF FUND.—
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1 (1) IN GENERAL.—The Secretary of Treasury

2 (in this section referred to as the ‘‘Secretary’’) is au3 thorized to expend amounts in the Fund for pur4 chases of eligible vaccines. Such vaccines shall be

5 distributed to developing countries.

6 (2) LIMITATION.—The Secretary shall not

7 make expenditures from the Fund in excess of

8 $100,000,000 for any fiscal year.

9 (3) REGULATIONS.—The Secretary shall pro10 mulgate such regulations as are necessary to carry

11 out the provisions of this subsection, including regu12 lations regarding—

13 (A) the procedures for purchasing eligible

14 vaccines, including pricing rules which take into

15 account the seller’s research and development

16 and manufacturing costs and the desirability of

17 the vaccine purchased, a funding formula estab18 lishing a minimum price per dose, and min19 imum technical requirements and a market test

20 requirement for the eligible vaccine; and

21 (B) the distribution of eligible vaccines to

22 developing countries under agreements between

23 the United States Agency for International De24 velopment and international organizations or
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1 recipient developing countries that provide

2 for—

3 (i) consideration of the prevalence of

4 the disease treated by the eligible vaccine

5 in the recipient developing country;

6 (ii) consideration of the ability of the

7 recipient country to effectively and safely

8 deliver the vaccines; and

9 (iii) a required matching payment by

10 the recipient developing country based on

11 the per capita income of the country, in an

12 amount not in excess of 25 percent of the

13 purchase price paid for such vaccine.

14 (4) CONSULTATION.—The Secretary shall pro15 mulgate regulations under paragraph (3) after ex16 tensive consultation with—

17 (A) the International Bank for Reconstruc18 tion and Development (commonly referred to as

19 the ‘‘World Bank’’);

20 (B) the World Health Organization; and

21 (C) the Secretary of Health and Human

22 Services.

23 (f) APPROPRIATIONS.—

24 (1) IN GENERAL.—Subject to paragraph (2),

25 there are appropriated out of any funds in the
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1 Treasury not otherwise appropriated such sums as

2 may be necessary to carry out the purposes of the

3 Fund for each of 10 fiscal years beginning with the

4 first fiscal year in which the Secretary makes an ex5 penditure from the Fund.

6 (2) LIMITATION.—The amount appropriated for

7 any fiscal year under paragraph (1) may not exceed

8 $100,000,000.

9 (3) TRANSFER TO FUND.—The Secretary shall

10 transfer the amount appropriated under paragraph

11 (1) for a fiscal year to the Fund.

12 (4) AVAILABILITY.—Amounts appropriated

13 under this section shall remain available until ex14 pended.

15 SEC. 8. MULTILATERAL LIFESAVING VACCINE PURCHASE

16 FUND.

17 (a) NEGOTIATIONS.—The President should enter into

18 negotiations with officials of foreign governments and

19 other interested parties for the establishment of an inter20 national vaccine purchase fund that would—

21 (1) accept contributions from governments of

22 developed countries;

23 (2) use such contributions to purchase and dis24 tribute in developing countries vaccines for—

25 (A) malaria,
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1 (B) tuberculosis,

2 (C) HIV, and

3 (D) any infectious disease (of a single eti4 ology) which causes the deaths of over

5 1,000,000 people worldwide each year; and

6 (3) be a significant market incentive for private

7 sector vaccine research.

8 (b) REPORT.—Not later than 1 year after the date

9 of enactment of this Act, and annually thereafter, the

10 President shall report to Congress on—

11 (1) the status of negotiations under subsection

12 (a); and

13 (2) if such fund is established, any rec14 ommendations for further action, including rec15 ommendations regarding the Lifesaving Vaccine

16 Purchase Fund established under section 7 of this

17 Act.

18 SEC. 9. SENSE OF CONGRESS.

19 It is the sense of Congress that flexible or differential

20 pricing for vaccines, providing lowered prices for the poor21 est countries, is one of several valid strategies to accelerate

22 the introduction of vaccines in developing countries.

Æ