Pandemic Production Act

To authorize the Secretary of Health and Human Services to create, maintain, protect, expand, or restore domestic industrial base capabilities essential for pandemic preparedness, and for other purposes. 1. Short title This Act may be cited as the Pandemic Production Act 2. Expansion of productive capacity and supply related to pandemic preparedness (a) Secretarial Authorization for Pandemic Preparedness (1) In general To create, maintain, protect, expand, or restore domestic industrial base capabilities essential for pandemic preparedness, the Secretary shall make provision— (A) for purchases of or commitments to purchase essential medical technology, including vaccines, and related materials, including personal protective equipment; (B) for the encouragement of production of essential medical technology and related materials; (C) for the development and maintenance of production capabilities; and (D) for the increased use of emerging technologies in biological, chemical, and radiological security program applications and the rapid transition of emerging technologies— (i) from Government-sponsored research and development to commercial applications; and (ii) from commercial research and development to pandemic preparedness applications. (2) Secretarial determinations Except as provided in paragraph (4), the Secretary may not execute a contract under this subsection unless the Secretary determines, with appropriate explanatory material and in writing to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, that— (A) the essential medical technology or related materials is essential to the pandemic response strategy of the United States; (B) without Secretarial action under this section, the United States industry cannot reasonably be expected to provide consistently the capability for the needed essential medical technology or related materials in a timely manner; and (C) purchases, purchase commitments, or other action pursuant to this section are the most cost effective, expedient, and practical alternative method for meeting the need. (3) Notification to Congress of shortfall (A) In general Except as provided in paragraph (4), the Secretary shall provide written notice to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives of a domestic industrial base shortfall prior to taking action under this subsection to remedy the shortfall. The notice shall include the determinations made by the Secretary under paragraph (2). (B) Aggregate amounts If the taking of any action under this subsection to correct a domestic industrial base shortfall would cause the aggregate outstanding amount of all such actions for such shortfall to exceed $5,000,000 within a five year period, the action or actions may be taken only after the 30-day period following the date on which the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives have been notified in writing of the proposed action. (4) Waiver authorized The Secretary may waive the requirements of paragraphs (1) through (3) during a period of national emergency declared by an Act of Congress or the President. (b) Secretarial findings (1) In general The Secretary may take the actions described in paragraph (2), if the Secretary finds— (A) under generally fair and equitable ceiling prices, for any raw or nonprocessed material, there will result a decrease in supplies from high-cost sources of such material, and that the continuation of such supplies is necessary to carry out the objectives of this section; or (B) an increase in cost of transportation is temporary in character and threatens to impair maximum production or supply in any area at stable prices of any materials. (2) Subsidy payments authorized Upon a finding under paragraph (1), the Secretary may make provision for subsidy payments on any such domestically produced material in such amounts and in such manner (including purchases of such material and its resale at a loss), and on such terms and conditions, as the Secretary determines to be necessary to ensure that supplies from such high-cost sources are continued, or that maximum production or supply in such area at stable prices of such materials is maintained, as the case may be. (c) Incidental Authority The procurement power granted to the Secretary by this section shall include the power to transport and store and have processed and refined any materials procured under this section. (d) Installation of equipment in industrial facilities If the Secretary determines that such action will aid the pandemic response strategy of the United States, the Secretary is authorized— (1) to procure and install additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the Federal Government; (2) to procure and install equipment owned by the Federal Government in plants, factories, and other industrial facilities owned by private persons; (3) to provide for the modification or expansion of privately owned facilities, including the modification or improvement of production processes; and (4) to sell or otherwise transfer equipment owned by the Federal Government and installed under this subsection to the owners of such plants, factories, or other industrial facilities. (e) Excess essential medical technology, including vaccines, and related materials, including personal protective equipment Notwithstanding any other provision of law to the contrary, essential medical technology, including vaccines, and related materials, including personal protective equipment acquired pursuant to this section which, in the judgment of the Secretary, are excess to the needs of programs under this section, shall be transferred to the Strategic National Stockpile, when the Secretary deems such action to be in the public interest. (f) Substitutes When, in the judgement of the Secretary, it will aid pandemic preparedness, the Secretary may make provision for the development of substitutes for strategic and critical materials, critical components, critical technology items, and other industrial resources. (g) Pandemic Production Act Fund (1) Establishment of Fund There is established in the Treasury of the United States a separate fund to be known as the Pandemic Production Act Fund Fund (2) Moneys in Fund There shall be credited to the Fund— (A) all moneys appropriated for the Fund, as authorized by subsection (i); and (B) all moneys received by the Fund on transactions entered into pursuant to this section. (3) Use of Fund The Fund shall be available to carry out the provisions and purposes of this section subject to the limitations set forth in this section and in appropriations Acts. (4) Duration of Fund Moneys in the Fund shall remain available until expended. (5) Fund manager The Secretary shall designate a Fund manager. The duties of the Fund manager shall include— (A) determining the liability of the Fund in accordance with paragraph (6); (B) ensuring the visibility and accountability of transactions engaged in through the Fund; and (C) reporting to the Congress regarding activities of the Fund— (i) quarterly, with respect to the previous quarter; or (ii) weekly, during a period of national emergency declared by an Act of Congress or the President, with respect to the previous week. (6) Liabilities against Fund When any agreement entered into pursuant to this section imposes any contingent liability upon the United States, such liability shall be considered an obligation against the Fund. (h) Delegation of authority The Secretary may only delegate authority under this section to the Assistant Secretary for Preparedness and Response and such Assistant Secretary may not further delegate such authority. (i) Authorization of Appropriations There is authorized to be appropriated such sums as may be necessary for fiscal year 2020 and each fiscal year thereafter for the carrying out of the provisions and purposes of this section. (j) Definitions For purposes of this section, the following definitions shall apply: (1) Critical component The term critical component (2) Critical technology The term critical technology (3) Critical technology item The term critical technology item (4) Domestic industrial base The term domestic industrial base (5) Domestic source The term domestic source (A) that performs in the United States substantially all of the research and development, engineering, manufacturing, and production activities required of such business concern under a contract with the United States relating to a critical component or a critical technology item; and (B) that procures from business concerns described in subparagraph (A) substantially all of any components and assemblies required under a contract with the United States relating to a critical component or critical technology item. (6) Facilities The term facilities (7) Industrial resources The term industrial resources (8) Materials The term materials (A) any raw materials (including minerals, metals, and advanced processed materials), commodities, articles, components (including critical components), products, and items of supply; and (B) any technical information or services ancillary to the use of any such materials, commodities, articles, components, products, or items. (9) Pandemic Response Strategy of the United States The Secretary shall defined the term pandemic response strategy of the United States (10) Person The term person (11) Secretary The term Secretary (12) Services The term services (A) the development, production, processing, distribution, delivery, or use of an industrial resource or a critical technology item; (B) the construction of facilities; or (C) the movement of individuals and property by all modes of civil transportation.

Summary: Pandemic Production Act This bill authorizes the Department of Health and Human Services (HHS) to take actions to develop and maintain the capabilities of domestic industries to produce materials necessary for the pandemic response strategy of the United States. It also establishes the Pandemic Production Act Fund to support these efforts. Among other activities, HHS may purchase, or commit to purchase, essential medical technologies and related materials and install equipment in, or otherwise modify, government-owned or privately owned industrial facilities to support domestic production capacity. Before using these authorities, HHS generally must make specific determinations and findings related to the necessity of the action but may waive these requirements during a declared national emergency.