I 
108TH CONGRESS 
2D SESSION 
H. R. 3758
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 HOUSE OF REPRESENTATIVES 
FEBRUARY 3, 2004
Mr. EMANUEL (for himself, Mr. SHIMKUS, Ms. DEGETTE, and Mr. ENGEL) 
introduced the following bill; which was referred to the Committee on En-
ergy and Commerce, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Public Health Service Act to provide for 
an influenza vaccine awareness campaign, ensure a suffi-
cient influenza vaccine supply, and prepare for an influ-
enza pandemic or epidemic, to amend the Internal Rev-
enue Code of 1986 to encourage vaccine production ca-
pacity, and for other purposes.
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 ‘‘Flu Protection Act 
of 2004’’. 
TITLE I—FLU VACCINE 
AWARENESS CAMPAIGN 
SEC. 101. AWARENESS CAMPAIGN AND EDUCATION AND 
OUTREACH EFFORTS. 
Title XXI of the Public Health Service Act (42 
U.S.C. 300aa–1 et seq.) is amended by adding at the end 
the following: 
‘‘Subtitle 3—Influenza Vaccine 
‘‘AWARENESS CAMPAIGN AND EDUCATION AND OUTREACH 
EFFORTS 
‘‘SEC. 2141. (a) CAMPAIGN.—The Secretary, acting 
through the Director of the Centers for Disease Control 
and Prevention (in this subtitle referred to as the ‘Direc-
tor’), shall conduct a public awareness campaign and edu-
cation and outreach efforts each year during the time pe-
riod preceding the influenza season on each of the fol-
lowing: 
‘‘(1) The importance of receiving the influenza 
vaccine. 
‘‘(2) Which populations the Director rec-
ommends to receive the influenza vaccine to prevent 
health complications associated with influenza, in-
cluding health care workers and household contacts.
‘‘(3) Professional medical education of physi-
cians, nurses, pharmacists, and other health care 
providers and such providers’ associated organiza-
tions. 
‘‘(4) Information that emphasizes the safety, ef-
ficacy, and benefit of recommended vaccines for the 
public good. 
‘‘(b) OUTREACH TO MEDICARE RECIPIENTS.—
‘‘(1) IN GENERAL.—The Administrator of the 
Centers for Medicare & Medicaid Services shall, at 
the earliest possible time in the influenza vaccine 
planning and production process, reach out to pro-
viders of medicare services, including managed care 
providers, nursing homes, hospitals, and physician 
offices to urge early and full preordering of the in-
fluenza vaccine so that production levels can accom-
modate the needs for the influenza vaccine. 
‘‘(2) RATES OF IMMUNIZATION AMONG MEDI-
CARE RECIPIENTS.—The Director shall work with 
the Administrator of the Centers for Medicare & 
Medicaid Services to publish the rates of influenza 
immunization among individuals receiving assistance 
under the medicare program under title XVIII of the 
Social Security Act (42 U.S.C. 1395 et seq.).
‘‘(c) STATE AND PUBLIC HEALTH ADULT IMMUNIZA-
TION ACTIVITIES.—The Director shall support the devel-
opment of State adult immunization programs that place 
emphasis on improving influenza vaccine delivery to high-
risk populations and the general population, including the 
exploration of improving access to the influenza vaccine. 
‘‘(d) EFFICACY
OF VACCINE.—The Director shall 
work with appropriate agencies in conducting a study to 
assess the efficacy of the influenza vaccine. 
‘‘(e) EXISTING MODES OF COMMUNICATION.—In car-
rying out the public awareness campaign and education 
and outreach efforts under subsections (a) and (b), the 
Director may use existing websites or structures for com-
munication. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$10,000,000 for each of fiscal years 2004 through 2008.’’. 
TITLE 
II—ENCOURAGING 
VAC-
CINE PRODUCTION CAPACITY 
SEC. 201. INCENTIVES FOR THE CONSTRUCTION OF VAC-
CINE MANUFACTURING FACILITIES. 
(a) VACCINE MANUFACTURING FACILITIES INVEST-
MENT TAX CREDIT.—
(1) ALLOWANCE OF CREDIT.—Section 46 of the 
Internal Revenue Code of 1986 (relating to amount
of investment credit) is amended by striking ‘‘and’’ 
at the end of paragraph (2), by striking the period 
at the end of paragraph (3) and inserting ‘‘, and’’, 
and by adding at the end the following new para-
graph: 
‘‘(4) the vaccine manufacturing facilities invest-
ment credit.’’. 
(2) AMOUNT OF CREDIT.—Section 48 of such 
Code is amended by adding at the end the following 
new subsection: 
‘‘(c) VACCINE MANUFACTURING FACILITIES INVEST-
MENT CREDIT.—
‘‘(1) IN GENERAL.—For purposes of section 46, 
the vaccine manufacturing facilities investment cred-
it for any taxable year is an amount equal to 20 per-
cent of the qualified investment for such taxable 
year. 
‘‘(2) QUALIFIED
INVESTMENT.—For purposes 
of paragraph (1), the qualified investment for any 
taxable year is the basis of each vaccine manufac-
turing facilities property placed in service by the tax-
payer during such taxable year. 
‘‘(3) VACCINE
MANUFACTURING
FACILITIES 
PROPERTY.—For purposes of this subsection, the
term ‘vaccine manufacturing facilities property’ 
means real and tangible personal property—
‘‘(A)(i) the original use of which com-
mences with the taxpayer, or 
‘‘(ii) which is acquired through purchase 
(as defined by section 179(d)(2)), 
‘‘(B) which is depreciable under section 
167, 
‘‘(C) which is used for the manufacture, 
distribution, or research and development of 
vaccines, and 
‘‘(D) which is in compliance with any 
standards and regulations which are promul-
gated by the Food and Drug Administration, 
the Occupational Safety and Health Adminis-
tration, or the Environmental Protection Agen-
cy and which are applicable to such property. 
‘‘(4) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to rules of sub-
sections (c)(4) and (d) of section 46 (as in effect on 
the day before the date of the enactment of the Rev-
enue Reconciliation Act of 1990) shall apply for pur-
poses of this subsection.
‘‘(5) TERMINATION.—This subsection shall not 
apply to any property placed in service after Decem-
ber 31, 2008.’’. 
(b) TECHNICAL AMENDMENTS.—
(1) Subparagraph (C) of section 49(a)(1) of 
such Code is amended by striking ‘‘and’’ at the end 
of clause (ii), by striking the period at the end of 
clause (iii) and inserting ‘‘, and’’, and by adding at 
the end the following new clause: 
‘‘(iv) the basis of any vaccine manu-
facturing facilities property.’’. 
(2) Subparagraph (E) of section 50(a)(2) of 
such Code is amended by inserting ‘‘or 48(c)(4)’’ be-
fore the period. 
(3)(A) The section heading for section 48 of 
such Code is amended to read as follows: 
‘‘SEC. 48. OTHER CREDITS.’’. 
(B) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 48 
and inserting the following:
‘‘Sec. 48. Other credits.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2003, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
TITLE 
III—ENSURING 
SUFFI-
CIENT FLU VACCINE SUPPLY 
SEC. 301. VACCINE SUPPLY. 
Subtitle 3 of title XXI of the Public Health Service 
Act, as added by section 101, is amended by adding at 
the end the following: 
‘‘VACCINE SUPPLY 
‘‘SEC. 2142. (a) REQUESTS FOR MORE DOSES.—
‘‘(1) IN GENERAL.—Not later than March 15 of 
each year, the Director shall enter into a contract 
with one or more manufacturers to produce such ad-
ditional doses of the influenza vaccine as determined 
necessary by the Director. 
‘‘(2) CONTENT OF CONTRACT.—A contract for 
additional doses shall provide that the manufacturer 
will be compensated by the Director at an equitable 
rate negotiated by the Director and the manufac-
turer for any doses that—
‘‘(A) were not sold by the manufacturer 
through routine market mechanisms at the end 
of the influenza season for that year; and 
‘‘(B) were requested by the Director to be 
produced by such manufacturer.
‘‘(3) 
WHEN
SUCH
VACCINE
PURCHASES 
SHOULD TAKE PLACE.—The Director may purchase 
from a manufacturer the doses for which it has con-
tracted at any time after which it is determined by 
the Director, in consultation with the manufacturer, 
that the doses will likely not be absorbed by the pri-
vate market. 
‘‘(b) CONTINGENCY PLAN.—The Director shall en-
courage States to develop a contingency plan, in coordina-
tion with the Department of Health and Human Services, 
for maximizing influenza immunization for high-risk popu-
lations in the event of a delay or shortage of the influenza 
vaccine. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
such sums as may be necessary.’’. 
TITLE IV—PREPARING FOR A 
PANDEMIC OR EPIDEMIC 
SEC. 401. PREPARATION FOR INFLUENZA PANDEMIC OR 
EPIDEMIC. 
Subtitle 3 of title XXI of the Public Health Service 
Act, as added by section 101 and amended by section 301, 
is further amended by adding at the end the following: 
‘‘PREPARATION FOR INFLUENZA PANDEMIC OR EPIDEMIC 
‘‘SEC. 2143. (a) ESTABLISHMENT OF A PROTOCOL.—
The Secretary, acting through the Director, shall establish
a protocol to attempt to prevent, prepare for, and respond 
to an influenza pandemic or epidemic. Such protocol shall 
be updated as determined appropriate by the Director. 
‘‘(b) CONTENTS OF PROTOCOL.—The protocol estab-
lished under subsection (a) shall—
‘‘(1) address methods to coordinate dissemina-
tion of the influenza vaccine to key populations in 
the event of an influenza pandemic or epidemic; 
‘‘(2) address expansion of influenza vaccine 
manufacturing capacity (including making advance 
arrangements for ensuring the availability of raw 
materials) to respond to the needs of the United 
States during an influenza pandemic or epidemic; 
‘‘(3) improve upon the current influenza vac-
cines and production and dissemination methods; 
‘‘(4) address alternative ways to manufacture or 
produce the influenza vaccine; 
‘‘(5) address how many doses of the influenza 
vaccine should be produced on an annual basis and 
which strains of influenza should be covered by such 
vaccine in a particular year; 
‘‘(6) address public awareness and education, 
and professional education on the need to receive an 
influenza vaccine;
‘‘(7) address alternative methods to prevent the 
spread of, and complications associated with, influ-
enza, including antiviral medications; 
‘‘(8) address a tracking method for publicly and 
privately sold doses of the influenza vaccine to en-
able the Director to determine, after consultation 
with manufacturers of the influenza vaccine, how 
much supply is in circulation in the case of an influ-
enza pandemic or epidemic; and 
‘‘(9) address other issues determined by the Di-
rector to be appropriate. 
‘‘(c) COORDINATION; PREPARATION; PREVENTION.—
In establishing the protocol under subsection (a), the Di-
rector shall—
‘‘(1) coordinate with health care providers, 
manufacturers, research institutions, health care or-
ganizations, and other expert stakeholders; 
‘‘(2)(A) conduct international and national sur-
veillance; 
‘‘(B) build State surveillance capacity; 
‘‘(C) collect influenza vaccine safety and effi-
cacy data; and 
‘‘(D) engage in epidemiological studies and re-
search on novel influenza viruses;