I
106TH CONGRESS
2D SESSION
H. R. 3812
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 HOUSE OF REPRESENTATIVES
MARCH 1, 2000
Ms. PELOSI (for herself, Mr. LANTOS, Mr. INSLEE, Mr. HINCHEY, Mr. JEF-
FERSON, Mr. JACKSON of Illinois, Ms. WOOLSEY, Mr. MATSUI, Mrs.
MORELLA, and Mr. ROMERO-BARCELO´) introduced the following bill;
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on International Relations, and Commerce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To create incentives for private sector research related to
developing vaccines against widespread diseases and en-
sure that such vaccines are affordable and widely distrib-
uted.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Vaccines for the New
Millennium Act of 2000’’.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Vaccines are among the most cost-effective
weapons in the arsenal of modern medicine to stop
the spread of contagious diseases and strengthen an
individual’s immune system to resist a wide range of
infectious diseases, and vaccines offer a relatively in-
expensive means of lowering a society’s overall cost
of medical care.
(2) Every year, up to 3,000,000 children’s lives
are saved as the result of early childhood immuniza-
tions. But almost 3,000,000 more lives worldwide
are lost from diseases that could be prevented with
existing vaccines.
(3) Today, 1 in 4 children do not receive the 6
basic vaccinations: polio, diptheria, whooping cough,
tetanus, measles, and tuberculosis. The proportion of
children immunized against these 6 diseases has de-
clined in recent years, from approximately 80 per-
cent in 1990 to 74 percent in 1998.
(4) Safe, effective, and universal immunization
is a means to end the tragedy of avoidable childhood
deaths, and a means to improve the overall health,
productivity, and security of society.
(5) As well as the challenges of increasing ac-
cess to existing vaccines, there are additional chal-
lenges for research and development of new vaccines.
Over 5,000,000 people die annually from HIV, tu-
berculosis, and malaria. Vaccines against these in-
fectious diseases are urgently needed.
(6) The spread of HIV is a human tragedy that
is reversing previous gains in life expectancy and ex-
acerbating poverty in developing countries. Over
33,000,000 people are infected with HIV, and the
disease will kill more than 2,500,000 people this
year. More than 11,000,000 children worldwide have
been orphaned by AIDS and 16,000 people become
newly infected every day.
(7) While an estimated $2,000,000,000 is spent
annually on research for AIDS treatment, much of
it by the private sector, the total global research and
development for preventive HIV vaccines is substan-
tially less, perhaps as little as $300,000,000, and of
the amount spent on lifesaving vaccine research,
only a fraction is financed by private sector drug
manufacturers.
(8) Between 7,000,000 and 8,000,000 individ-
uals develop active tuberculosis every year and
2,000,000 to 3,000,000 individuals die from tuber-
culosis each year, with tuberculosis accounting for
more than 1⁄4 of all preventable adult deaths in de-
veloping countries. An individual is newly infected
with tuberculosis every second, and someone dies of
tuberculosis every 10 seconds.
(9) Each year, 300,000,000 to 500,000,000 in-
dividuals become ill with malaria, and approximately
1,000,000 individuals die from the disease, exacting
an enormous toll in lives, medical costs, and lost
productivity. The majority of those who die from
malaria are children under the age of 5. One person
dies from malaria every 30 seconds.
(10) While additional public funds for basic re-
search are critical in the effort to find vaccines for
HIV, malaria, and tuberculosis, equally important is
a concerted effort by private sector drug manufac-
turers to find vaccines for these 3 major infectious
diseases.
(11) Additional, targeted public subsidies for
private sector lifesaving vaccine research and devel-
opment are justified on the basis that achieving ef-
fective and affordable vaccines for HIV, malaria,
and tuberculosis will yield public benefits beyond
those benefits captured by the manufacturer.
SEC. 3. UNIVERSAL EARLY CHILDHOOD IMMUNIZATIONS.
Section 104(c)(3) of the Foreign Assistance Act of
1961 (22 U.S.C. 2151b(c)(3)) is amended in the fourth
sentence by striking ‘‘the protection of’’ and all that fol-
lows through ‘‘1991’’ and inserting ‘‘the universal protec-
tion of all children from immunizable diseases by Decem-
ber 31, 2009’’.
SEC. 4. VOLUNTARY CONTRIBUTION TO GLOBAL ALLIANCE
FOR VACCINES AND IMMUNIZATIONS AND
INTERNATIONAL AIDS VACCINE INITIATIVE.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
302 of the Foreign Assistance Act of 1961 (22 U.S.C.
2222) is amended by adding at the end the following:
‘‘(j) In addition to amounts otherwise available under
this section, there are authorized to be appropriated to
the President for fiscal year 2001 an amount not in excess
of $50,000,000 and for fiscal year 2002 an amount not
in excess of $100,000,000 to be available only for United
States contributions to the Global Alliance for Vaccines
and Immunizations.
‘‘(k) In addition to amounts otherwise available under
this section, there are authorized to be appropriated to
the President for fiscal year 2001 $10,000,000 and for
fiscal year 2002 $20,000,000 to be available only for
United States contributions to the International AIDS
Vaccine Initiative.’’.
(b) REPORT.—The President shall include in the July
1 report submitted to Congress under section 305(b)(1)
of the Foreign Assistance Act of 1961 (22 U.S.C.
2226(b)(1)) for fiscal years 2001 and 2002 a report on
the effectiveness of the Global Alliance for Vaccines and
Immunizations in meeting the goals of—
(1) improving access to sustainable immuniza-
tion services;
(2) expanding the use of all existing, safe, and
cost-effective vaccines where they address a public
health problem;
(3) accelerating the development and introduc-
tion of new vaccines and technologies;
(4) accelerating research and development ef-
forts for vaccines needed primarily in developing
countries; and
(5) making immunization coverage a center-
piece in international development efforts.
SEC. 5. CREDIT FOR MEDICAL RESEARCH RELATED TO DE-
VELOPING VACCINES AGAINST WIDESPREAD
DISEASES.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits) is amended by
adding at the end the following new section:
‘‘SEC. 45D. CREDIT FOR MEDICAL RESEARCH RELATED TO
DEVELOPING 
VACCINES 
AGAINST 
WIDE-
SPREAD DISEASES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the vaccine research credit determined under this section
for the taxable year is an amount equal to 30 percent of
the qualified vaccine research expenses for the taxable
year.
‘‘(b) QUALIFIED VACCINE RESEARCH EXPENSES.—
For purposes of this section—
‘‘(1) 
QUALIFIED
VACCINE
RESEARCH
EX-
PENSES.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the term ‘qualified
vaccine research expenses’ means the amounts
which are paid or incurred by the taxpayer dur-
ing the taxable year which would be described
in subsection (b) of section 41 if such sub-
section were applied with the modifications set
forth in subparagraph (B).
‘‘(B) MODIFICATIONS.—For purposes of
subparagraph (A), subsection (b) of section 41
shall be applied—
‘‘(i) by substituting ‘vaccine research’
for ‘qualified research’ each place it ap-
pears in paragraphs (2) and (3) of such
subsection, and
‘‘(ii) by substituting ‘75 percent’ for
‘65 percent’ in paragraph (3)(A) of such
subsection.
‘‘(C) EXCLUSION FOR AMOUNTS FUNDED
BY GRANTS, ETC.—The term ‘qualified vaccine
research expenses’ shall not include any amount
to the extent such amount is funded by any
grant, contract, or otherwise by another person
(or any governmental entity).
‘‘(2) VACCINE RESEARCH.—The term ‘vaccine
research’ means research to develop vaccines and
microbicides for—
‘‘(A) malaria,
‘‘(B) tuberculosis,
‘‘(C) HIV, or
‘‘(D) any infectious disease (of a single eti-
ology) which, according to the World Health
Organization, causes over 1,000,000 human
deaths annually.
‘‘(c) COORDINATION WITH CREDIT FOR INCREASING
RESEARCH EXPENDITURES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any qualified vaccine research expenses
for a taxable year to which an election under this
section applies shall not be taken into account for
purposes of determining the credit allowable under
section 41 for such taxable year.
‘‘(2) EXPENSES
INCLUDED
IN
DETERMINING
BASE PERIOD RESEARCH EXPENSES.—Any qualified
vaccine research expenses for any taxable year which
are qualified research expenses (within the meaning
of section 41(b)) shall be taken into account in de-
termining base period research expenses for pur-
poses of applying section 41 to subsequent taxable
years.
‘‘(d) SPECIAL RULES.—
‘‘(1) LIMITATIONS ON FOREIGN TESTING.—No
credit shall be allowed under this section with re-
spect to any vaccine research (other than human
clinical testing) conducted outside the United States.
‘‘(2) CERTAIN
RULES
MADE
APPLICABLE.—
Rules similar to the rules of paragraphs (1) and (2)
of section 41(f) shall apply for purposes of this sec-
tion.
‘‘(3) ELECTION.—This section (other than sub-
section (e)) shall apply to any taxpayer for any tax-
able year only if such taxpayer elects to have this
section apply for such taxable year.
‘‘(e) SHAREHOLDER EQUITY INVESTMENT CREDIT
IN LIEU OF RESEARCH CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 38,
the vaccine research credit determined under this
section for the taxable year shall include an amount
equal to 20 percent of the amount paid by the tax-
payer to acquire qualified research stock in a cor-
poration if—
‘‘(A) the amount received by the corpora-
tion for such stock is used within 18 months
after the amount is received to pay qualified
vaccine research expenses of the corporation for
which a credit would (but for subparagraph (B)
and subsection (d)(3)) be determined under this
section, and
‘‘(B) the corporation waives its right to the
credit determined under this section for the
qualified vaccine research expenses which are
paid with such amount.
‘‘(2) QUALIFIED RESEARCH STOCK.—For pur-
poses of paragraph (1), the term ‘qualified research
stock’ means any stock in a C corporation—
‘‘(A) which is originally issued after the
date of the enactment of the Lifesaving Vaccine
Technology Act of 1999,
‘‘(B) which is acquired by the taxpayer at
its original issue (directly or through an under-
writer) in exchange for money or other property
(not including stock), and
‘‘(C) as of the date of issuance, such cor-
poration meets the gross assets tests of sub-
paragraphs (A) and (B) of section 1202(d)(1).’’
(b) INCLUSION IN GENERAL BUSINESS CREDIT.—
(1) IN GENERAL.—Section 38(b) of such Code
is amended by striking ‘‘plus’’ at the end of para-
graph (11), by striking the period at the end of
paragraph (12) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph:
‘‘(13) the vaccine research credit determined
under section 45D.’’.
(2) TRANSITION RULE.—Section 39(d) of such
Code is amended by adding at the end the following
new paragraph:
‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT
BEFORE
ENACTMENT.—No portion of the unused
business credit for any taxable year which is attrib-
utable to the vaccine research credit determined
under section 45D may be carried back to a taxable
year ending before the date of the enactment of sec-
tion 45D.’’.
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of
such Code is amended by adding at the end the following
new subsection:
‘‘(d) CREDIT FOR QUALIFIED VACCINE RESEARCH
EXPENSES.—
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed for that portion of the qualified vaccine re-
search expenses (as defined in section 45D(b)) oth-
erwise allowable as a deduction for the taxable year
which is equal to the amount of the credit deter-
mined for such taxable year under section 45D(a).
‘‘(2) CERTAIN RULES TO APPLY.—Rules similar
to the rules of paragraphs (2), (3), and (4) of sub-
section (c) shall apply for purposes of this sub-
section.’’.
(d) DEDUCTION FOR UNUSED PORTION OF CRED-
IT.—Section 196(c) of such Code (defining qualified busi-
ness credits) is amended by striking ‘‘and’’ at the end of
paragraph (7), by striking the period at the end of para-
graph (8) and inserting ‘‘, and’’, and by adding at the
end the following new paragraph:
‘‘(9) the vaccine research credit determined
under section 45D(a) (other than such credit deter-
mined under the rules of section 280C(d)(2)).’’.
(e) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the fol-
lowing new item:
‘‘Sec. 45D. Credit for medical research related to developing vac-
cines against widespread diseases.’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
(g) DISTRIBUTION OF VACCINES DEVELOPED USING
CREDIT.—It is the sense of the Congress that if credit
is allowed under section 45D of the Internal Revenue Code
of 1986 to any corporation or shareholder of a corporation
by reason of vaccine research expenses incurred by the
corporation in the development of a vaccine, such corpora-
tion should certify to the Secretary of the Treasury that,
within 1 year after that vaccine is first licensed, such cor-
poration will establish a good faith plan utilizing tech-
nology transfer, differential pricing, in-country produc-
tion, or other mechanisms to maximize international ac-
cess to high quality and affordable vaccines. The preceding
sentence shall not be construed to waive rights to set
prices, patent ownership, or confidentiality of privileged
information.
(h) STUDY.—The Institute of Medicine shall conduct
a study of the effectiveness of the credit under section 45D
of the Internal Revenue Code of 1986 in stimulating vac-
cine research. Not later than the date which is 5 years
after the date of the enactment of this Act, the Institute
of Medicine shall submit to the Congress the results of
such study together with any recommendations it may
have to improve the effectiveness of such credit in stimu-
lating vaccine research.
SEC. 6. CREDIT FOR CERTAIN SALES OF LIFESAVING VAC-
CINES.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business related credits), as amended by
section 5(a), is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 45E. CREDIT FOR CERTAIN SALES OF LIFESAVING
VACCINES.
‘‘(a) IN GENERAL.—For purposes of section 38, the
lifesaving vaccine sale credit determined under this section
with respect to a taxpayer for the taxable year is an
amount equal to the amount of qualified vaccine sales for
the taxable year.
‘‘(b) QUALIFIED VACCINE SALES.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘qualified vaccine
sales’ means the aggregate amount paid to the tax-
payer for a qualified sale.
‘‘(2) QUALIFIED SALE.—
‘‘(A) IN
GENERAL.—The term ‘qualified
sale’ means a sale of a qualified vaccine—
‘‘(i) to a nonprofit organization, gov-
ernmental unit, or government of any for-
eign government, and
‘‘(ii) for distribution in a developing
country.
‘‘(B) DEVELOPING
COUNTRY.—For pur-
poses of this paragraph, the term ‘developing
country’ means a country which the Inter-
national Bank for Reconstruction and Develop-
ment (commonly referred to as the ‘World
Bank’) determines to be a country with a lower
middle income or less.
‘‘(3) QUALIFIED VACCINE.—The term ‘qualified
vaccine’ means a vaccine (as defined in section
4132(a)(2)) which is—
‘‘(A) approved by the Food and Drug Ad-
ministration as a new drug after the date of the
enactment of this paragraph, and
‘‘(B) used for—
‘‘(i) malaria,
‘‘(ii) tuberculosis,
‘‘(iii) HIV, or
‘‘(iv) any infectious disease (of a sin-
gle etiology) that is determined by the Sec-
retary of Health and Human Services
(after consultation with the Director of the
Center for Disease Control and Prevention
and the United States Agency for Inter-
national Development) to cause the deaths
of over 1,000,000 people worldwide each
year.
‘‘(c) LIMIT ON AMOUNT OF CREDIT.—The maximum
amount of the credit allowable under subsection (a) with
respect to a sale shall not exceed the portion of the limita-
tion amount allocated under subsection (d) with respect
to such sale.
‘‘(d) NATIONAL LIMITATION ON AMOUNT OF CRED-
ITS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (3), there is a lifesaving vaccine sale credit for
each calendar year equal to—
‘‘(A) $100,000,000 for each of years 2002
through 2006,
‘‘(B) $125,000,000 for each of years 2007
through 2010, and
‘‘(C) zero after 2011.
‘‘(2) ALLOCATION OF LIMITATION.—
‘‘(A) IN GENERAL.—The limitation amount
under paragraph (1) shall be allocated on a
competitive basis for any calendar year by the
Secretary (in consultation with the Adminis-
trator of the United States Agency for Inter-
national Development) among organizations
with an approved application.
‘‘(B) APPROVED APPLICATION.—For pur-
poses of subparagraph (A), the term ‘approved
application’ means an application which is ap-
proved by the Administrator of the United
States Agency for International Development
with respect to a qualified sale made during the
calendar year. Such application shall be made
at such time and in such form and manner as
the Administrator shall prescribe by regulation
and shall include a detailed and cost-effective
plan for distribution of the vaccine.
‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If
the limitation amount under paragraph (1) for any
calendar year exceeds the aggregate amount allo-
cated under paragraph (2), such limitation for the
following calendar year shall be increased by the
amount of such excess. The limitation amount shall
remain available until expended.
‘‘(e) SPECIAL RULES.—For purposes of this section,
rules similar to the rules of section 41(f)(2) shall apply.’’.
(b) INCLUSION IN GENERAL BUSINESS CREDIT.—
(1) IN GENERAL.—Section 38(b) of the Internal
Revenue Code of 1986 (relating to current year
business credit), as amended by section 5(b)(1), is
amended by striking ‘‘plus’’ at the end of paragraph
(12), by striking the period at the end of paragraph
(13) and inserting ‘‘, plus’’, and by adding at the
end the following new paragraph:
‘‘(14) the lifesaving vaccine sale credit deter-
mined under section 45E.’’.
(2) TRANSITION RULE.—Section 39(d) of such
Code (relating to transitional rules), as amended by
section 5(b)(2), is amended by adding at the end the
following new paragraph:
‘‘(10) NO CARRYBACK OF SECTION 45E CREDIT
BEFORE
ENACTMENT.—No portion of the unused
business credit for any taxable year which is attrib-
utable to the lifesaving vaccine sale credit deter-
mined under section 45E may be carried back to a
taxable year ending before the date of the enactment
of section 45E.’’.
(c) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by sec-
tion 5(e), is amended by adding at the end the following
new item:
‘‘Sec. 45E. Credit for certain sales of lifesaving vaccines.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales of vaccines in taxable years
beginning after December 31, 2000.
SEC. 7. LIFESAVING VACCINE PURCHASE FUND.
(a) PURPOSE.—It is the purpose of this section to—
(1) create incentives for private sector research
into vaccines for HIV, malaria, tuberculosis, and
other major infectious diseases; and
(2) ensure that vaccines for major infectious
diseases are affordable and widely distributed.
(b) DEFINITIONS.—In this section:
(1) DEVELOPING COUNTRY.—The term ‘‘devel-
oping country’’ means a country which the Inter-
national Bank for Reconstruction and Development
(commonly referred to as the ‘World Bank’) deter-
mines to be a country with a lower middle income
or less.
(2) ELIGIBLE
VACCINE.—The term ‘‘eligible
vaccine’’ has the meaning given the term ‘‘qualified
vaccine’’ in section 45E(b)(3) of the Internal Rev-
enue Code of 1986.
(c) ESTABLISHMENT OF TRUST FUND.—There is es-
tablished in the Treasury of the United States a trust fund
to be known as the ‘‘Lifesaving Vaccine Purchase Fund’’
(in this section referred to as the ‘‘Fund’’) consisting of
amounts appropriated under subsection (f).
(d) INVESTMENT OF FUND.—Amounts in the Fund
shall be invested in accordance with section 9702 of title
31, United States Code, and any interest on, and proceeds
from any such investment shall be credited to and become
part of the Fund.
(e) USE OF FUND.—
(1) IN GENERAL.—The Secretary of the Treas-
ury (in this section referred to as the ‘‘Secretary’’)
is authorized to expend amounts in the Fund for
purchases of eligible vaccines. Such vaccines shall be
distributed to developing countries.
(2) LIMITATION.—The Secretary shall not
make expenditures from the Fund in excess of
$100,000,000 for any fiscal year.
(3) REGULATIONS.—The Secretary shall pro-
mulgate such regulations as are necessary to carry
out the provisions of this subsection, including regu-
lations regarding—
(A) the procedures for purchasing eligible
vaccines, including pricing rules which take into
account the seller’s research and development
and manufacturing costs and the desirability of
the vaccine purchased, a funding formula estab-
lishing a minimum price per dose, and min-
imum technical requirements and a market test
requirement for the eligible vaccine; and
(B) the distribution of eligible vaccines to
developing countries under agreements between
the United States Agency for International De-
velopment and international organizations or
recipient developing countries that provide
for—
(i) consideration of the prevalence of
the disease treated by the eligible vaccine
in the recipient developing country;
(ii) consideration of the ability of the
recipient country to effectively and safely
deliver the vaccines; and
(iii) a required matching payment by
the recipient developing country based on
the per capita income of the country, in an
amount not in excess of 25 percent of the
purchase price paid for such vaccine.
(4) CONSULTATION.—The Secretary shall pro-
mulgate regulations under paragraph (3) after ex-
tensive consultation with—
(A) the International Bank for Reconstruc-
tion and Development (commonly referred to as
the ‘‘World Bank’’);
(B) the World Health Organization;
(C) the Secretary of Health and Human
Services; and
(D) the Lifesaving Vaccine Advisory Com-
mission.
(f) APPROPRIATIONS.—
(1) IN GENERAL.—Subject to paragraph (2),
there are appropriated out of any funds in the
Treasury not otherwise appropriated such sums as
may be necessary to carry out the purposes of the
Fund for each of 10 fiscal years beginning with the
first fiscal year in which the Secretary makes an ex-
penditure from the Fund.
(2) LIMITATION.—The amount appropriated for
any fiscal year under paragraph (1) may not exceed
$100,000,000.
(3) TRANSFER TO FUND.—The Secretary shall
transfer the amount appropriated under paragraph
(1) for a fiscal year to the Fund.
(4) 
AVAILABILITY.—Amounts 
appropriated
under this section shall remain available until ex-
pended.
SEC. 8. MULTILATERAL LIFESAVING VACCINE PURCHASE
FUND.
(a) NEGOTIATIONS.—The President should enter into
negotiations with officials of foreign governments and
other interested parties for the establishment of an inter-
national vaccine purchase fund that would—
(1) accept contributions from governments of
developed countries;
(2) use such contributions to purchase and dis-
tribute in developing countries vaccines for—
(A) malaria,
(B) tuberculosis,
(C) HIV, and
(D) any infectious disease (of a single eti-
ology) which causes the deaths of over
1,000,000 people worldwide each year; and
(3) be a significant market incentive for private
sector vaccine research.
(b) REPORT.—Not later than 1 year after the date
of enactment of this Act, and annually thereafter, the
President shall report to Congress on—
(1) the status of negotiations under subsection
(a); and
(2) if such fund is established, any rec-
ommendations for further action, including rec-
ommendations regarding the Lifesaving Vaccine
Purchase Fund established under section 7 of this
Act.
SEC. 9. LIFESAVING VACCINE ADVISORY COMMISSION TO
OVERSEE AND EVALUATE PUBLIC PRIVATE
VACCINE PARTNERSHIPS.
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the ‘‘Lifesaving Vaccine Advisory
Commission’’ (referred to in this section as the ‘‘Commis-
sion’’).
(b) MEMBERSHIP.—
(1) NUMBER AND APPOINTMENT.—
(A) IN GENERAL.—The Commission shall
be composed of 12 members, appointed by the
President, as follows:
(i) 6 individuals with experience and
expertise in the pharmaceutical or bio-
technology industry.
(ii) 6 individuals with experience and
expertise in the medical, public health, or
academic community.
The individuals appointed under this subpara-
graph shall not be officers or employees of the
Federal Government, except to the extent that
they are considered to be such officers or em-
ployees by virtue of their membership on the
Commission.
(B) QUALIFICATIONS.—The members of
the Commission appointed under subparagraph
(A) should, as a group, achieve a balanced
membership representing the Nation as a whole
and balancing the concerns of the public health
community with the concerns of the bio-
technology and pharmaceutical industry.
(2) TIME OF APPOINTMENT.—Each member of
the Commission shall be appointed not later than 90
days after the date of enactment of this Act.
(3) TERMS.—Each member of the Commission
shall be appointed for the life of the Commission.
(4) VACANCIES.—Any vacancy in the Commis-
sion shall be filled in the same manner in which the
original appointment was made.
(5) COMPENSATION.—
(A) PROHIBITION OF PAY.—Except as pro-
vided in subparagraph (B), members of the
Commission shall serve without pay.
(B) TRAVEL EXPENSES.—Each member of
the Commission may receive travel expenses, in-
cluding per diem in lieu of subsistence, in ac-
cordance with sections 5702 and 5703 of title
5, United States Code.
(6) QUORUM.—7 members of the Commission
shall constitute a quorum.
(7) CHAIRPERSON.—The Commission shall se-
lect one of the individuals appointed under para-
graph (1) as the chairperson of the Commission.
(8) MEETINGS.—The Commission shall meet at
the call of its chairperson or a majority of its mem-
bers.
(c) DUTIES.—The Commission shall—
(1) review the progress of national and inter-
national efforts to develop vaccines for—
(A) malaria;
(B) tuberculosis;
(C) HIV; and
(D) any infectious disease (of a single eti-
ology) that is determined by the Secretary of
Health and Human Services (after consultation
with the Director of the Center for Disease
Control and Prevention and the Administrator
of the United States Agency for International
Development) to cause the deaths of over
1,000,000 people worldwide each year;
(2) examine the merits of innovative financing
mechanisms, such as tax incentives, purchase funds,
patent exchanges, conditional research and develop-
ment grants based on market pricing agreements,
and other proposals that combine public subsidies
with private sector research and development efforts,
and
(3) develop consensus among industry and pub-
lic health advocates on policy recommendations for
ways the Federal Government can further advance
public private partnerships, both nationally and
internationally, in vaccine research and development,
with a goal of finding effective and affordable vac-
cines for the major infectious diseases of the world.
(d) STAFF AND SUPPORT SERVICES.—
(1) STAFF.—
(A) IN GENERAL.—The chairperson of the
Commission may, without regard to civil service
laws and regulations and after consultation
with the Commission, appoint an executive di-
rector of the Commission and such other addi-
tional personnel as may be necessary to enable
the Commission to perform its duties.
(B) COMPENSATION.—The chairperson of
the Commission may fix the compensation of
the executive director and other personnel with-
out regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United
States Code, relating to classification of posi-
tions and General Schedule pay rates, except
that the rate of pay for the executive director
and other personnel may not exceed the rate
payable for level V of the Executive Schedule
under section 5316 of such title.
(2) STAFF OF FEDERAL AGENCIES.—Upon re-
quest by the chairperson of the Commission, the
head of any Federal department or agency may de-
tail, on a nonreimbursable basis, any of the per-
sonnel of the department or agency to the Commis-
sion to assist the Commission to carry out its duties
under this Act.
(3) ADMINISTRATIVE SUPPORT SERVICES.—The
Administrator of General Services shall provide to
the Commission, on a reimbursable basis, any ad-
ministrative support services that are necessary to
enable the Commission to carry out this Act.
(e) POWERS OF COMMISSION.—
(1) HEARINGS.—The Commission may hold
such hearings, sit and act at such times and places,
take such testimony, and receive such evidence as
the Commission considers advisable to carry out the
purposes of this section.
(2) INFORMATION FROM FEDERAL AGENCIES.—
The Commission may secure directly from any Fed-
eral department or agency such information as the
Commission considers necessary to carry out the
provisions of this section. Upon request of the chair-
person of the Commission, the head of such depart-
ment or agency shall furnish such information to the
Commission.
(3) MAILS.—The Commission may use the
United States mails in the same manner and under
the same conditions as any other Federal agency.
(f) FINAL REPORT.—Not later than 18 months after
the date of enactment of this Act, the Commission shall
submit to the President and Congress a final report. The
final report shall contain—
(1) a summary of the activities of the Commis-
sion;
(2) a final accounting of funds received and ex-
pended by the Commission; and
(3) any findings and recommendations of the
Commission which are supported by at least 9 mem-
bers.
SEC. 10. SENSE OF CONGRESS.
It is the sense of Congress that flexible or differential
pricing for vaccines, providing lowered prices for the poor-
est countries, is one of several valid strategies to accelerate
the introduction of vaccines in developing countries.
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