II 

109TH CONGRESS 

1ST SESSION S. 375 

To amend the Public Health Service Act to provide for an influenza vaccine 

awareness campaign, ensure a sufficient influenza vaccine supply, and 

prepare for an influenza pandemic or epidemic, to amend the Internal 

Revenue Code of 1986 to encourage vaccine production capacity, and 

for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2005 

Mr. BAYH (for himself, Mr. CRAIG, and Ms. LANDRIEU) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Public Health Service Act to provide for 

an influenza vaccine awareness campaign, ensure a sufficient influenza vaccine supply, and prepare for an influenza pandemic or epidemic, to amend the Internal Revenue Code of 1986 to encourage vaccine production capacity, and for other purposes. 

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 ‘‘Flu Protection Act 

5 of 2005’’. 
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1 TITLE I—FLU VACCINE 

2 AWARENESS CAMPAIGN 

3 SEC. 101. AWARENESS CAMPAIGN AND EDUCATION AND 

4 OUTREACH EFFORTS. 

5 Part P of title III of the Public Health Service Act 

6 (42 U.S.C. 280g et seq.) is amended by adding at the end 

7 the following: 

8 ‘‘SEC. 399O. AWARENESS CAMPAIGN AND EDUCATION AND 

9 OUTREACH EFFORTS. 

10 ‘‘(a) CAMPAIGN.—The Secretary, acting through the 

11 Director of the Centers for Disease Control and Preven12 tion (in this section referred to as the ‘Director’), shall 

13 conduct a public awareness campaign and education and 

14 outreach efforts each year during the time period pre15 ceding the influenza season on each of the following: 

16 ‘‘(1) The importance of receiving the influenza 

17 vaccine. 

18 ‘‘(2) Which populations the Director rec19 ommends to receive the influenza vaccine to prevent 

20 health complications associated with influenza, in21 cluding health care workers and household contacts. 

22 ‘‘(3) Professional medical education of physi23 cians, nurses, pharmacists, and other health care 

24 providers and such providers’ associated organiza25 tions. 
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1 ‘‘(4) Information that emphasizes the safety 

2 and benefit of recommended vaccines for the public 

3 good. 

4 ‘‘(b) OUTREACH TO MEDICARE RECIPIENTS.— 

5 ‘‘(1) IN GENERAL.—The Administrator of the 

6 Centers for Medicare & Medicaid Services shall, at 

7 the earliest possible time in the influenza vaccine 

8 planning and production process, reach out to pro9 viders of medicare services, including managed care 

10 providers, nursing homes, hospitals, and physician 

11 offices to urge early and full preordering of the in12 fluenza vaccine so that production levels can accom13 modate the needs for the influenza vaccine. 

14 ‘‘(2) RATES OF IMMUNIZATION AMONG MEDI15 CARE RECIPIENTS.—The Director shall work with 

16 the Administrator of the Centers for Medicare & 

17 Medicaid Services to publish the rates of influenza 

18 immunization among individuals receiving assistance 

19 under the medicare program under title XVIII of the 

20 Social Security Act (42 U.S.C. 1395 et seq.). 

21 ‘‘(c) STATE AND PUBLIC HEALTH ADULT IMMUNIZA22 TION ACTIVITIES.—The Director shall support the devel23 opment of State adult immunization programs that place 

24 emphasis on improving influenza vaccine delivery to high- 
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1 risk populations and the general population, including the 

2 exploration of improving access to the influenza vaccine. 

3 ‘‘(d) EFFICACY OF VACCINE.—The Director shall 

4 work with appropriate agencies in conducting a study to 

5 assess the efficacy of the influenza vaccine. 

6 ‘‘(e) EXISTING MODES OF COMMUNICATION.—In car7 rying out the public awareness campaign and education 

8 and outreach efforts under subsections (a) and (b), the 

9 Director may use existing websites or structures for com10 munication. 

11 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to carry out this section 

13 $10,000,000 for each of fiscal years 2005 through 2009.’’. 

14 TITLE II—ENCOURAGING VAC15 CINE PRODUCTION CAPACITY 

16 SEC. 201. INCENTIVES FOR THE CONSTRUCTION OF VAC17 CINE MANUFACTURING FACILITIES. 

18 (a) VACCINE MANUFACTURING FACILITIES INVEST19 MENT TAX CREDIT.— 

20 (1) ALLOWANCE OF CREDIT.—Section 46 of the 

21 Internal Revenue Code of 1986 (relating to amount 

22 of investment credit) is amended by striking ‘‘and’’ 

23 at the end of paragraph (1), by striking the period 

24 at the end of paragraph (2) and inserting ‘‘, and’’, 
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1 and by adding at the end the following new para2 graph: 

3 ‘‘(3) the vaccine manufacturing facilities invest4 ment credit.’’. 

5 (2) AMOUNT OF CREDIT.—Subpart E of part 

6 IV of subchapter A of chapter 1 of such Code (relat7 ing to rules for computing investment credit) is 

8 amended by inserting after section 48 the following 

9 new section: 

10 ‘‘SEC. 48A. VACCINE MANUFACTURING FACILITIES CREDIT. 

11 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

12 vaccine manufacturing facilities investment credit for any 

13 taxable year is an amount equal to 20 percent of the quali14 fied investment for such taxable year. 

15 ‘‘(b) QUALIFIED INVESTMENT.— 

16 ‘‘(1) IN GENERAL.—For purposes of subsection 

17 (a), the qualified investment for any taxable year is 

18 the basis of each vaccine manufacturing facilities 

19 property placed in service by the taxpayer during 

20 such taxable year. 

21 ‘‘(2) VACCINE MANUFACTURING FACILITIES

22 PROPERTY.—For purposes of this section, the term 

23 ‘vaccine manufacturing facilities property’ means 

24 real and tangible personal property— 
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1 ‘‘(A)(i) the original use of which com2 mences with the taxpayer, or 

3 ‘‘(ii) which is acquired through purchase 

4 (as defined by section 179(d)(2)), 

5 ‘‘(B) which is depreciable under section 

6 167, 

7 ‘‘(C) which is used for the manufacture, 

8 distribution, or research and development of 

9 vaccines, and 

10 ‘‘(D) which is in compliance with any 

11 standards and regulations which are promul12 gated by the Food and Drug Administration, 

13 the Occupational Safety and Health Adminis14 tration, or the Environmental Protection Agen15 cy and which are applicable to such property. 

16 ‘‘(c) CERTAIN PROGRESS EXPENDITURE RULES

17 MADE APPLICABLE.—Rules similar to rules of subsections 

18 (c)(4) and (d) of section 46 (as in effect on the day before 

19 the date of the enactment of the Revenue Reconciliation 

20 Act of 1990) shall apply for purposes of this subsection. 

21 ‘‘(d) TERMINATION.—This subsection shall not apply 

22 to any property placed in service after December 31, 

23 2009.’’. 

24 (b) TECHNICAL AMENDMENTS.— 
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1 (1) Clause (iii) of section 49(a)(1)(C) of such 

2 Code is amended to read as follows: 

3 ‘‘(iii) the basis of any vaccine manu4 facturing facilities property.’’. 

5 (2) Subparagraph (E) of section 50(a)(2) of 

6 such Code is amended by inserting ‘‘or 48A(c)’’ be7 fore the period. 

8 (3) The table of sections for subpart E of part 

9 IV of subchapter A of chapter 1 of such Code is 

10 amended by inserting after the item relating to sec11 tion 48 the following: 

‘‘Sec. 48A. Vaccine manufacturing facilities credit.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to property placed in service after 

14 December 31, 2004, under rules similar to the rules of 

15 section 48(m) of the Internal Revenue Code of 1986 (as 

16 in effect on the day before the date of enactment of the 

17 Revenue Reconciliation Act of 1990). 

18 TITLE III—ENSURING SUFFI19 CIENT FLU VACCINE SUPPLY 

20 SEC. 301. VACCINE SUPPLY. 

21 Title XXI of the Public Health Service Act (42 

22 U.S.C. 300aa–1 et seq.) is amended by adding at the end 

23 the following: 
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1 ‘‘Subtitle 3—Influenza Vaccine 

2 ‘‘VACCINE SUPPLY

3 ‘‘SEC. 2141. (a) REQUESTS FOR MORE DOSES.— 

4 ‘‘(1) IN GENERAL.—Not later than March 15 of 

5 each year, the Secretary shall enter into contracts 

6 with manufacturers to produce such additional doses 

7 of the influenza vaccine as determined necessary by 

8 the Secretary. 

9 ‘‘(2) CONTENT OF CONTRACT.—A contract for 

10 additional doses shall provide that the manufacturer 

11 will be compensated by the Secretary at an equitable 

12 rate negotiated by the Secretary and the manufac13 turer for any doses that— 

14 ‘‘(A) were not sold by the manufacturer 

15 through routine market mechanisms at the end 

16 of the influenza season for that year; and 

17 ‘‘(B) were requested by the Secretary to be 

18 produced by such manufacturer. 

19 ‘‘(3) WHEN SUCH VACCINE PURCHASES

20 SHOULD TAKE PLACE.—The Secretary may purchase 

21 from the manufacturer the doses for which it has 

22 contracted at any time after which it is determined 

23 by the Secretary, in consultation with the manufac24 turer, that the doses will likely not be absorbed by 

25 the private market. 
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1 ‘‘(b) CONTINGENCY PLAN.—The Secretary shall en2 courage States to develop a contingency plan, in coordina3 tion with the Department of Health and Human Services, 

4 for maximizing influenza immunization for high-risk popu5 lations in the event of a delay or shortage of the influenza 

6 vaccine. 

7 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to carry out this section 

9 such sums as may be necessary.’’. 

10 TITLE IV—PREPARING FOR A 

11 PANDEMIC OR EPIDEMIC 

12 SEC. 401. PREPARATION FOR INFLUENZA PANDEMIC OR 

13 EPIDEMIC. 

14 Subtitle 3 of title XXI of the Public Health Service 

15 Act, as added by section 301, is amended by adding at 

16 the end the following: 

17 ‘‘PREPARATION FOR INFLUENZA PANDEMIC OR EPIDEMIC

18 ‘‘SEC. 2142. (a) ESTABLISHMENT OF A PROTOCOL.— 

19 The Secretary, acting through the Director of the Na20 tional Vaccine Program (referred to in this section as the 

21 ‘Director of the Program’), shall continue progress on the 

22 pandemic preparedness plan and, in consultation with the 

23 Director of the Centers for Disease Control and Preven24 tion, establish a protocol to attempt to prevent, prepare 

25 for, and respond to an influenza pandemic or epidemic. 
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1 Such protocol shall be updated as determined appropriate 

2 by the Director of the Program. 

3 ‘‘(b) CONTENTS OF PROTOCOL.—The protocol estab4 lished under subsection (a) shall— 

5 ‘‘(1) improve upon the current influenza vac6 cines and production and dissemination methods; 

7 and 

8 ‘‘(2) address— 

9 ‘‘(A) methods to coordinate dissemination 

10 of the influenza vaccine to key populations in 

11 the event of an influenza pandemic or epidemic; 

12 ‘‘(B) expansion of influenza vaccine manu13 facturing capacity (including making advance 

14 arrangements for ensuring the availability of 

15 raw materials) to respond to the needs of the 

16 United States during an influenza pandemic or 

17 epidemic; 

18 ‘‘(C) alternative ways to manufacture or 

19 produce the influenza vaccine; 

20 ‘‘(D) alternative methods to prevent the 

21 spread of, and complications associated with, 

22 influenza, including antiviral medications; 

23 ‘‘(E) vaccine manufacturing capacity, pro24 duction, and dissemination to improve pre-
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1 paredness for immediate pandemic threats, 

2 which may include avian influenza; 

3 ‘‘(F) a tracking method for publicly and 

4 privately sold doses of the influenza vaccine to 

5 enable the Director of the Program to deter6 mine, after consultation with manufacturers of 

7 the influenza vaccine, how much supply is in 

8 circulation in the case of an influenza pandemic 

9 or epidemic; and 

10 ‘‘(G) other issues determined by the Direc11 tor of the Program to be appropriate. 

12 ‘‘(c) COORDINATION; PREPARATION; PREVENTION.— 

13 In establishing the protocol under subsection (a), the Di14 rector of the Program shall— 

15 ‘‘(1) coordinate with health care providers, 

16 manufacturers, research institutions, health care or17 ganizations, and other expert stakeholders; 

18 ‘‘(2) continue building international and na19 tional surveillance capacity; 

20 ‘‘(3) continue to engage in epidemiological stud21 ies and research on novel influenza viruses; and 

22 ‘‘(4) assist States with preparedness activities 

23 for a rapid State and local response to an influenza 

24 pandemic, including exploring methods of making 
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1 the influenza vaccine more accessible to the general 

2 population. 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $150,000,000 for each of fiscal years 2005 through 

6 2009.’’. 

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