Medical Supply Chain Emergency Act of 2020

To require the President to use authorities under the Defense Production Act of 1950 to require emergency production of medical equipment to address the COVID-19 outbreak. 1. Short title This Act may be cited as the Medical Supply Chain Emergency Act of 2020 2. Emergency production of medical equipment to address COVID-19 outbreak (a) In general Immediately upon the enactment of this Act, the President shall— (1) determine under section 101(b) of the Defense Production Act of 1950 ( 50 U.S.C. 4511(b) (A) medical equipment described in paragraph (3)(A) is scarce and a critical material essential to the national defense; and (B) the requirements of the national defense for such equipment cannot be met without exercising the authorities provided by the Defense Production Act of 1950 ( 50 U.S.C. 4501 (2) identify private sector capacity to produce such equipment; and (3) exercise the authorities provided by the Defense Production Act of 1950 to the extent necessary— (A) to require emergency production of— (i) not less than— (I) 500,000,000 N95 respirators; (II) 200,000 medical ventilators; (III) 20,000,000 face shields; (IV) 500,000,000 pairs of medical exam gloves; and (V) 20,000,000 surgical gowns; and (ii) such other medical equipment as the President determines to be necessary to address the coronavirus disease 2019 (commonly known as COVID-19 (B) to establish a fair and reasonable price for the sale of medical equipment produced pursuant to subparagraph (A). (b) Coordination The President shall coordinate and direct the allocation of medical equipment produced under subsection (a) based on requests from the Governors of the States and the needs of the States, as determined based on— (1) the number of cases of COVID-19 in a State; and (2) the proportion of the population in a State with a higher risk of developing a serious illness from COVID-19. (c) Funding Amounts available in the Defense Production Act Fund under section 304 of the Defense Production Act of 1950 ( 50 U.S.C. 4534 (d) Termination (1) In general This section, and authorities carried out pursuant to this section, shall terminate on the date on which the national emergency declared under the National Emergencies Act ( 50 U.S.C. 1601 (2) Disposition of unused medical equipment Any medical equipment produced pursuant to subsection (a) using amounts from the Defense Production Act Fund and unused as of the date described in paragraph (1) shall be deposited in the Strategic National Stockpile.

Summary: Medical Supply Chain Emergency Act of 2020 This bill directs the President to use existing authorities under the Defense Production Act of 1950 with respect to the production of ventilators, N-95 respirator masks, and specified personal protective equipment to address COVID-19 (i.e., coronavirus disease 2019). (That act confers upon the President a broad set of authorities to influence domestic industry in order to provide essential materials and goods needed for the national defense.) The President must (1) make a determination that such items are essential for the national defense, (2) identify private-sector capacity to produce these items, and (3) exercise authorities under the act to require emergency production of them at a reasonable price. In addition, the President shall coordinate the allocation of these items based on requests from governors and the needs of the states as determined by the number of COVID-19 cases and the proportion of the population at higher risk of the disease in a given state. The bill makes specified funds available for these efforts. Equipment produced under these authorities but unused at the termination of the COVID-19 emergency declared on March 13, 2020, shall be deposited into the Strategic National Stockpile.