IB 
Union Calendar No. 418 
116TH CONGRESS 
2D SESSION 
H. R. 7574 
[Report No. 116–518] 
To amend the Public Health Service Act with respect to the Strategic 
National Stockpile, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 13, 2020 
Ms. SLOTKIN (for herself, Mrs. BROOKS of Indiana, Ms. ESHOO, Mr. CARTER 
of Georgia, Mrs. DINGELL, Mrs. WALORSKI, Ms. DEGETTE, Mr. MCKIN-
LEY, Mr. BUTTERFIELD, Mr. VAN DREW, Mr. SOTO, Mr. UPTON, Mr. 
MALINOWSKI, Mr. HUDSON, Ms. SCHRIER, Mr. GIANFORTE, Mr. 
CISNEROS, Mr. NEGUSE, and Mr. BURGESS) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
SEPTEMBER 18, 2020 
Additional sponsors: Mr. LUJA´N and Mr. FITZPATRICK 
SEPTEMBER 18, 2020 
Reported with an amendment; committed to the Committee of the Whole 
House on the State of the Union and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 13, 2020] 
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A BILL 
To amend the Public Health Service Act with respect to 
the Strategic National Stockpile, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Strengthening America’s Strategic National Stockpile Act 
of 2020’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Reimbursable transfers. 
Sec. 3. Equipment maintenance. 
Sec. 4. Supply chain flexibility manufacturing pilot. 
Sec. 5. GAO study on the feasibility and benefits of a user fee agreement. 
Sec. 6. Grants for State strategic stockpiles. 
Sec. 7. Action reporting. 
Sec. 8. Improved, transparent processes. 
Sec. 9. Authorization of appropriations. 
SEC. 2. REIMBURSABLE TRANSFERS. 
Section 319F–2(a) of the Public Health Service Act 
(42 U.S.C. 247d–6b(a)) is amended by adding at the end 
the following: 
‘‘(6) TRANSFERS AND REIMBURSEMENTS.— 
‘‘(A) IN
GENERAL.—Without regard to 
chapter 5 of title 40, United States Code, the 
Secretary may transfer to any Federal depart-
ment or agency, on a reimbursable basis, any 
drugs, vaccines and other biological products, 
medical devices, and other supplies in the stock-
pile if— 
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‘‘(i) the transferred supplies are less 
than one year from expiry; 
‘‘(ii) the stockpile is able to replenish 
the supplies, as appropriate; and 
‘‘(iii) the Secretary decides the transfer 
is in the best interest of the United States 
Government. 
‘‘(B) USE
OF
REIMBURSEMENT.—Reim-
bursement derived from the transfer of supplies 
pursuant to subparagraph (A) may be used by 
the Secretary, without further appropriation and 
without fiscal year limitation, to carry out this 
section. 
‘‘(C) RULE OF CONSTRUCTION.—This para-
graph shall not be construed to preclude transfers 
of products in the stockpile under other authori-
ties. 
‘‘(D) REPORT.—Not later than September 
30, 2022, the Secretary shall submit to the Com-
mittee on Energy and Commerce of the House of 
Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate a 
report on each transfer made under this para-
graph and the amount received by the Secretary 
in exchange for that transfer. 
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‘‘(E) SUNSET.—The authority to make 
transfers under this paragraph shall cease to be 
effective on September 30, 2023.’’. 
SEC. 3. EQUIPMENT MAINTENANCE. 
Section 319F–2 of the Public Health Service Act (42 
U.S.C. 247d–6b) is amended— 
(1) in subsection (a)(3)— 
(A) in subparagraph (I), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (J), by striking the 
period at the end and inserting a semicolon; and 
(C) by inserting the following new subpara-
graph at the end: 
‘‘(K) ensure contents of the stockpile remain 
in good working order and, as appropriate, con-
duct maintenance services on contents of the 
stockpile; and’’; and 
(2) in subsection (c)(7)(B), by adding at the end 
the following new clause: 
‘‘(ix) EQUIPMENT MAINTENANCE SERV-
ICE.—In carrying out this section, the Sec-
retary may enter into contracts for the pro-
curement of equipment maintenance serv-
ices.’’. 
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SEC. 4. SUPPLY CHAIN FLEXIBILITY MANUFACTURING 
PILOT. 
(a) IN GENERAL.—Section 319F–2(a)(3) of the Public 
Health Service Act (42 U.S.C. 247d–6b(a)(3)), as amended 
by section 3, is further amended by adding at the end the 
following new subparagraph: 
‘‘(L) enhance medical supply chain elas-
ticity and establish and maintain domestic re-
serves of critical medical supplies (including per-
sonal protective equipment, ancillary medical 
supplies, and other applicable supplies required 
for the administration of drugs, vaccines and 
other biological products, and other medical de-
vices (including diagnostic tests)) by— 
‘‘(i) increasing emergency stock of crit-
ical medical supplies; 
‘‘(ii) geographically diversifying do-
mestic production of such medical supplies, 
as appropriate; 
‘‘(iii) entering into cooperative agree-
ments or partnerships with respect to man-
ufacturing lines, facilities, and equipment 
for the domestic production of such medical 
supplies; and 
‘‘(iv) managing, either directly or 
through cooperative agreements with manu-
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facturers and distributors, domestic reserves 
established under this subparagraph by re-
freshing and replenishing stock of such med-
ical supplies.’’. 
(b) REPORTING; SUNSET.—Section 319F–2(a) of the 
Public Health Service Act (42 U.S.C. 247d–6b(a)), as 
amended by section 2, is further amended by adding at the 
end the following: 
‘‘(7) REPORTING.—Not later than September 30, 
2022, the Secretary shall submit to the Committee on 
Energy and Commerce of the House of Representa-
tives and the Committee on Health, Education, Labor 
and Pensions of the Senate a report on the details of 
each cooperative agreement or partnership entered 
into under paragraph (3)(L), including the amount 
expended by the Secretary on each such cooperative 
agreement or partnership. 
‘‘(8) SUNSET.—The authority to enter into coop-
erative agreements or partnerships pursuant to para-
graph (3)(L) shall cease to be effective on September 
30, 2023.’’. 
(c) FUNDING.—Section 319F–2(f) of the Public Health 
Service Act (42 U.S.C. 247d–6b(f)) is amended by adding 
at the end the following: 
‘‘(3) SUPPLY CHAIN ELASTICITY.— 
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‘‘(A) IN GENERAL.—For the purpose of car-
rying out subsection (a)(3)(L), there is author-
ized to be appropriated $500,000,000 for each of 
fiscal years 2020 through 2023, to remain avail-
able until expended. 
‘‘(B) RELATION TO OTHER AMOUNTS.—The 
amount authorized to be appropriated by sub-
paragraph (A) for the purpose of carrying out 
subsection (a)(3)(L) is in addition to any other 
amounts available for such purpose.’’. 
SEC. 5. GAO STUDY ON THE FEASIBILITY AND BENEFITS OF 
A USER FEE AGREEMENT. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study to investigate the feasi-
bility of establishing user fees to offset certain Federal costs 
attributable to the procurement of single-source materials 
for the Strategic National Stockpile under section 319F– 
2 of the Public Health Service Act (42 U.S.C. 247d–6b) and 
distributions of such materials from the Stockpile. In con-
ducting this study, the Comptroller General shall consider, 
to the extent information is available— 
(1) whether entities receiving such distributions 
generate profits from those distributions; 
(2) any Federal costs attributable to such dis-
tributions; 
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(3) whether such user fees would provide the Sec-
retary with funding to potentially offset procurement 
costs of such materials for the Strategic National 
Stockpile; and 
(4) any other issues the Comptroller General 
identifies as relevant. 
(b) REPORT.—Not later than February 1, 2023, the 
Comptroller General of the United States shall submit to 
the Congress a report on the findings and conclusions of 
the study under subsection (a). 
SEC. 6. GRANTS FOR STATE STRATEGIC STOCKPILES. 
Title III of the Public Health Service Act is amended 
by inserting after section 319F–4 of such Act (42 U.S.C. 
247d–6e) the following new section: 
‘‘SEC. 319F–5. GRANTS FOR STATE STRATEGIC STOCKPILES. 
‘‘(a) IN GENERAL.—The Secretary may establish a 
pilot program consisting of awarding grants to States to 
expand or maintain a strategic stockpile of commercially 
available drugs, medical equipment, personal protective 
equipment, and other products deemed by the State to be 
essential in the event of a public health emergency. 
‘‘(b) ALLOWABLE USE OF FUNDS.— 
‘‘(1) USES.—A State receiving a grant under 
this section may use the grant funds to— 
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‘‘(A) acquire commercially available prod-
ucts listed pursuant to paragraph (2) for inclu-
sion in the State’s strategic stockpile; 
‘‘(B) store, maintain, and distribute prod-
ucts in such stockpile; and 
‘‘(C) conduct planning in connection with 
such activities. 
‘‘(2) LIST.—The Secretary shall develop and 
publish a list of the products that are eligible, as de-
scribed in subsection (a), for inclusion in a State’s 
strategic stockpile using funds received under this sec-
tion. 
‘‘(3) CONSULTATION.—In developing the list 
under paragraph (2) and otherwise determining the 
allowable uses of grant funds under this section, the 
Secretary shall consult with States and relevant 
stakeholders, including public health organizations. 
‘‘(c) FUNDING REQUIREMENT.—The Secretary may 
not obligate or expend any funds to award grants or fund 
any previously awarded grants under this section for a fis-
cal year unless the total amount made available to carry 
out section 319F–2 for such fiscal year is equal to or greater 
than the total amount of funds made available to carry out 
section 319F–2 for fiscal year 2020. 
‘‘(d) MATCHING FUNDS.— 
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‘‘(1) IN GENERAL.—With respect to the costs of 
expanding and maintaining a strategic stockpile 
through a grant under this section, as a condition on 
receipt of the grant, a State shall make available (di-
rectly) non-Federal contributions in cash toward such 
costs in an amount that is equal to not less than the 
amount of Federal funds provided through the grant. 
‘‘(2) WAIVER.—The Secretary may waive the re-
quirement of paragraph (1) with respect to a State 
for the first two years of the State receiving a grant 
under this section if the Secretary determines that 
such waiver is needed for the State to establish a stra-
tegic stockpile described in subsection (a). 
‘‘(e) TECHNICAL ASSISTANCE.—The Secretary shall 
provide technical assistance to States in establishing, ex-
panding, and maintaining a stockpile described in sub-
section (a). 
‘‘(f) DEFINITION.—In this section, the term ‘drug’ has 
the meaning given to that term in section 201 of the Federal 
Food, Drug, and Cosmetic Act. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this section, there is authorized to be appropriated 
$3,500,000,000 for each of fiscal years 2020 through 2023, 
to remain available until expended. 
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‘‘(h) SUNSET.—The authority vested by this section 
terminates at the end of fiscal year 2023.’’. 
SEC. 7. ACTION REPORTING. 
(a) IN GENERAL.—The Assistant Secretary for Pre-
paredness and Response (in this section referred to as the 
‘‘Assistant Secretary’’), in coordination with the Adminis-
trator of the Federal Emergency Management Agency, 
shall— 
(1) not later than 30 days after the date of en-
actment of this Act, issue a report to the Committee 
on Energy and Commerce of the House of Representa-
tives and the Committee on Health, Education, 
Labor, and Pensions of the Senate regarding all 
State, local, Tribal, and territorial requests for sup-
plies from the Strategic National Stockpile related to 
COVID–19; and 
(2) not less than every 30 days thereafter through 
the end of the emergency period (as such term is de-
fined in section 1135(g)(1)(B) of the Social Security 
Act (42 U.S.C. 1320b–5(g)(1)(B))), submit to such 
committees an updated version of such report. 
(b) REPORTING PERIOD.— 
(1) INITIAL REPORT.—The initial report under 
subsection (a) shall address all requests described in 
such subsection made during the period— 
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(A) beginning on January 31, 2020; and 
(B) ending on the date that is 30 days be-
fore the date of submission of the report. 
(2) UPDATES.—Each update to the report under 
subsection (a) shall address all requests described in 
such subsection made during the period— 
(A) beginning at the end of the previous re-
porting period under this section; and 
(B) ending on the date that is 30 days be-
fore the date of submission of the updated report. 
(c) CONTENTS OF REPORT.—The report under sub-
section (a) (and updates thereto) shall include— 
(1) the details of each request described in such 
subsection, including— 
(A) the specific medical countermeasures, 
devices, personal protective equipment, and other 
materials requested; and 
(B) the amount of such materials requested; 
and 
(2) the outcomes of each request described in sub-
section (a), including— 
(A) whether the request was wholly fulfilled, 
partially fulfilled, or denied; 
(B) if the request was wholly or partially 
fulfilled, the fulfillment amount; and 
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(C) if the request was partially fulfilled or 
denied, a rationale for such outcome. 
SEC. 8. IMPROVED, TRANSPARENT PROCESSES. 
(a) IN GENERAL.—Not later than January 1, 2021, 
the Secretary of Health and Human Services, in collabora-
tion with the Assistant Secretary for Preparedness and Re-
sponse and the Director of the Centers for Disease Control 
and Prevention, shall develop and implement improved, 
transparent processes for the use and distribution of drugs, 
vaccines and other biological products, medical devices, and 
other supplies (including personal protective equipment, 
ancillary medical supplies, and other applicable supplies 
required for the administration of drugs, vaccines and other 
biological products, medical devices, and diagnostic tests) 
in the Strategic National Stockpile under section 319F–2 
of the Public Health Service Act (42 U.S.C. 247d–6b) (in 
this section referred to as the ‘‘Stockpile’’). 
(b) PROCESSES.—The processes developed under sub-
section (a) shall include— 
(1) the form and manner in which States, local-
ities, Tribes, and territories are required to submit re-
quests for supplies from the Stockpile; 
(2) the criteria used by the Secretary of Health 
and Human Services in responding to such requests, 
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including the reasons for fulfilling or denying such 
requests; 
(3) what circumstances result in prioritization of 
distribution of supplies from the Stockpile to States, 
localities, Tribes, or territories; 
(4) clear plans for future, urgent communication 
between the Secretary and States, localities, Tribes, 
and territories regarding the outcome of such requests; 
and 
(5) any differences in the processes developed 
under subsection (a) for geographically related emer-
gencies, such as weather events, and national emer-
gencies, such as pandemics. 
(c) CLASSIFICATION.—The processes developed under 
subsection (a) shall be unclassified to the greatest extent pos-
sible consistent with national security. The Secretary of 
Health and Human Services may classify portions of such 
processes as necessary to protect national security. 
(d) REPORT TO CONGRESS.—Not later than January 
1, 2021, the Secretary of Health and Human Services 
shall— 
(1) submit a report to the Committee on Energy 
and Commerce of the House of Representatives and 
the Committee on Health, Education, Labor, and 
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Pensions of the Senate regarding the improved, trans-
parent processes developed under this section; 
(2) include in such report recommendations for 
opportunities for communication (by telebriefing, 
phone calls, or in-person meetings) between the Sec-
retary and States, localities, Tribes, and territories 
regarding such improved, transparent processes; and 
(3) submit such report in unclassified form to 
the greatest extent possible, except that the Secretary 
may include a classified appendix if necessary to pro-
tect national security. 
SEC. 9. AUTHORIZATION OF APPROPRIATIONS. 
Section 319F–2(f)(1) of the Public Health Service Act 
(42 U.S.C. 247d-6b(f)(1)) is amended by striking 
‘‘$610,000,000 for each of fiscal years 2019 through 2023’’ 
and inserting ‘‘$705,000,000 for each of fiscal years 2020 
through 2023’’. 
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