(A) in paragraph (1), by inserting ‘‘in the 
case of an award by the Director of the Center,’’ 
before ‘‘the applicant’’; and 
(B) in paragraph (2), by inserting ‘‘of the 
Center or the Director of the National Institute 
of Allergy and Infectious Diseases’’ after ‘‘Direc-
tor’’; and 
(6) in subsection (i)—
(A) by striking ‘‘APPROPRIATIONS.—For the 
purpose of carrying out this section,’’ and insert-
ing the following: ‘‘APPROPRIATIONS.—
‘‘(1) CENTER.—For the purpose of carrying out 
this section with respect to the Center,’’; and 
(B) by adding at the end the following: 
‘‘(2) NATIONAL INSTITUTE OF ALLERGY AND IN-
FECTIOUS DISEASES.—For the purpose of carrying 
out this section with respect to the National Institute 
of Allergy and Infectious Diseases, there are author-
ized to be appropriated such sums as may be nec-
essary for fiscal year 2003.’’. 
SEC. 3. BIOMEDICAL COUNTERMEASURES PROCUREMENT. 
(a) IN GENERAL.—Part B of title III of the Public 
Health Service Act, as amended by section 2 of this Act, 
is amended by inserting after section 319F–1 the following 
section:
‘‘SEC. 319F–2. STRATEGIC NATIONAL STOCKPILE. 
‘‘(a) STRATEGIC NATIONAL STOCKPILE.—
‘‘(1) IN GENERAL.—The Secretary of Homeland 
Security (referred to in this section as the ‘Homeland 
Security Secretary’), in coordination with the Sec-
retary and the Secretary of Veterans Affairs, shall 
maintain a stockpile or stockpiles of drugs, vaccines 
and other biological products, medical devices, and 
other supplies in such numbers, types, and amounts 
as are determined by the Secretary to be appropriate 
and practicable, taking into account other available 
sources, to provide for the emergency health security 
of the United States, including the emergency health 
security of children and other vulnerable populations, 
in the event of a bioterrorist attack or other public 
health emergency. 
‘‘(2) PROCEDURES.—The Secretary, in man-
aging the stockpile under paragraph (1), shall—
‘‘(A) consult with the working group under 
section 319F(a); 
‘‘(B) ensure that adequate procedures are 
followed with respect to such stockpile for inven-
tory management and accounting, and for the 
physical security of the stockpile;
‘‘(C) in consultation with Federal, State, 
and local officials, take into consideration the 
timing and location of special events; 
‘‘(D) review and revise, as appropriate, the 
contents of the stockpile on a regular basis to en-
sure that emerging threats, advanced tech-
nologies, and new countermeasures are ade-
quately considered; 
‘‘(E) devise plans for the effective and time-
ly supply-chain management of the stockpile, in 
consultation with appropriate Federal, State 
and local agencies, and the public and private 
health care infrastructure; and 
‘‘(F) ensure the adequate physical security 
of the stockpile. 
‘‘(b) SMALLPOX VACCINE DEVELOPMENT.—
‘‘(1) IN GENERAL.—The Secretary shall award 
contracts, enter into cooperative agreements, or carry 
out such other activities as may reasonably be re-
quired in order to ensure that the stockpile under sub-
section (a) includes an amount of vaccine against 
smallpox as determined by such Secretary to be suffi-
cient to meet the health security needs of the United 
States.
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 
section shall be construed to limit the private dis-
tribution, purchase, or sale of vaccines from sources 
other than the stockpile described in subsection (a). 
‘‘(c) ADDITIONAL AUTHORITY REGARDING PROCURE-
MENT
OF
CERTAIN
BIOMEDICAL
COUNTERMEASURES; 
AVAILABILITY OF SPECIAL RESERVE FUND.—
‘‘(1) IN GENERAL.—
‘‘(A) USE OF FUND.—A security counter-
measure may, in accordance with this subsection, 
be procured with amounts in the special reserve 
fund under paragraph (10). 
‘‘(B) SECURITY
COUNTERMEASURE.—For 
purposes of this subsection, the term ‘security 
countermeasure’ means a priority counter-
measure (as defined in section 319F(h))—
‘‘(i) that affects national security; 
‘‘(ii) that is determined under para-
graph (2)(B)(ii) to be a necessary counter-
measure; and 
‘‘(iii)(I) that is approved or cleared 
under chapter V of the Federal Food, Drug, 
and Cosmetic Act, or licensed under section 
351 of this Act, for use as a countermeasure 
to a chemical, biological, radiological, or
nuclear agent identified as a material 
threat under paragraph (2)(A)(ii); or 
‘‘(II) for which the Secretary deter-
mines that sufficient and satisfactory clin-
ical experience or research data (including 
data, if available, from pre-clinical and 
clinical trials) support a reasonable conclu-
sion that the countermeasure will qualify 
for approval or licensing after the date of a 
determination under paragraph (5).
‘‘(2) DETERMINATION OF MATERIAL THREATS.—
‘‘(A) MATERIAL
THREAT.—The Homeland 
Security Secretary, in consultation with the 
heads of other agencies as appropriate, shall on 
an ongoing basis—
‘‘(i) assess current and emerging 
threats of chemical, biological, radiological, 
and nuclear agents; and 
‘‘(ii) determine which of such agents 
present a material threat against the 
United States population. 
‘‘(B) PUBLIC HEALTH IMPACT; NECESSARY 
COUNTERMEASURES.—The Secretary shall on an 
ongoing basis—