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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flu Protection Act of 2005''.

                TITLE I--FLU VACCINE AWARENESS CAMPAIGN

SEC. 101. AWARENESS CAMPAIGN AND EDUCATION AND OUTREACH EFFORTS.

    Part P of title III of the Public Health Service Act (42 U.S.C. 
280g et seq.) is amended by adding at the end the following:

``SEC. 399O. AWARENESS CAMPAIGN AND EDUCATION AND OUTREACH EFFORTS.

    ``(a) Campaign.--The Secretary, acting through the Director of the 
Centers for Disease Control and Prevention (in this section referred to 
as the `Director'), shall conduct a public awareness campaign and 
education and outreach efforts each year during the time period 
preceding the influenza season on each of the following:
            ``(1) The importance of receiving the influenza vaccine.
            ``(2) Which populations the Director recommends to receive 
        the influenza vaccine to prevent health complications 
        associated with influenza, including health care workers and 
        household contacts.
            ``(3) Professional medical education of physicians, nurses, 
        pharmacists, and other health care providers and such 
        providers' associated organizations.
            ``(4) Information that emphasizes the safety 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 providers of medicare services, including managed 
        care providers, nursing homes, hospitals, and physician offices 
        to urge early and full preordering of the influenza vaccine so 
        that production levels can accommodate the needs for the 
        influenza vaccine.
            ``(2) Rates of immunization among medicare 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 Immunization Activities.--The 
Director shall support the development 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 carrying out the public 
awareness campaign and education and outreach efforts under subsections 
(a) and (b), the Director may use existing websites or structures for 
communication.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2005 through 2009.''.

           TITLE II--ENCOURAGING VACCINE PRODUCTION CAPACITY

SEC. 201. INCENTIVES FOR THE CONSTRUCTION OF VACCINE MANUFACTURING 
              FACILITIES.

    (a) Vaccine Manufacturing Facilities Investment 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 (1), by 
        striking the period at the end of paragraph (2) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(3) the vaccine manufacturing facilities investment 
        credit.''.
            (2) Amount of credit.--Subpart E of part IV of subchapter A 
        of chapter 1 of such Code (relating to rules for computing 
        investment credit) is amended by inserting after section 48 the 
        following new section:

``SEC. 48A. VACCINE MANUFACTURING FACILITIES CREDIT.

    ``(a) In General.--For purposes of section 46, the vaccine 
manufacturing facilities investment credit for any taxable year is an 
amount equal to 20 percent of the qualified investment for such taxable 
year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of each 
        vaccine manufacturing facilities property placed in service by 
        the taxpayer during such taxable year.
            ``(2) Vaccine manufacturing facilities property.--For 
        purposes of this section, the term `vaccine manufacturing 
        facilities property' means real and tangible personal 
        property--
                    ``(A)(i) the original use of which commences 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 promulgated by the Food and Drug 
                Administration, the Occupational Safety and Health 
                Administration, or the Environmental Protection Agency 
                and which are applicable to such property.
    ``(c) Certain Progress Expenditure Rules Made Applicable.--Rules 
similar to rules of subsections (c)(4) and (d) of section 46 (as in 
effect on the day before the date of the enactment of the Revenue 
Reconciliation Act of 1990) shall apply for purposes of this 
subsection.
    ``(d) Termination.--This subsection shall not apply to any property 
placed in service after December 31, 2009.''.
    (b) Technical Amendments.--
            (1) Clause (iii) of section 49(a)(1)(C) of such Code is 
        amended to read as follows:
                            ``(iii) the basis of any vaccine 
                        manufacturing facilities property.''.
            (2) Subparagraph (E) of section 50(a)(2) of such Code is 
        amended by inserting ``or 48A(c)'' before the period.
            (3) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48 the following:

``48A. Vaccine manufacturing facilities credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2004, 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 enactment of 
the Revenue Reconciliation Act of 1990).

           TITLE III--ENSURING SUFFICIENT FLU VACCINE SUPPLY

SEC. 301. VACCINE SUPPLY.

    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

                            ``vaccine supply

    ``Sec. 2141. (a) Requests for More Doses.--
            ``(1) In general.--Not later than March 15 of each year, 
        the Secretary shall enter into contracts with manufacturers to 
        produce such additional doses of the influenza vaccine as 
        determined necessary by the Secretary.
            ``(2) Content of contract.--A contract for additional doses 
        shall provide that the manufacturer will be compensated by the 
        Secretary at an equitable rate negotiated by the Secretary and 
        the manufacturer 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 Secretary to be 
                produced by such manufacturer.
            ``(3) When such vaccine purchases should take place.--The 
        Secretary may purchase from the manufacturer the doses for 
        which it has contracted at any time after which it is 
        determined by the Secretary, in consultation with the 
        manufacturer, that the doses will likely not be absorbed by the 
        private market.
    ``(b) Contingency Plan.--The Secretary shall encourage States to 
develop a contingency plan, in coordination with the Department of 
Health and Human Services, for maximizing influenza immunization for 
high-risk populations 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 301, is amended by adding at the end the following:

            ``preparation for influenza pandemic or epidemic

    ``Sec. 2142. (a) Establishment of a Protocol.--The Secretary, 
acting through the Director of the National Vaccine Program (referred 
to in this section as the `Director of the Program'), shall continue 
progress on the pandemic preparedness plan and, in consultation with 
the Director of the Centers for Disease Control and Prevention, 
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 of the Program.
    ``(b) Contents of Protocol.--The protocol established under 
subsection (a) shall--
            ``(1) improve upon the current influenza vaccines and 
        production and dissemination methods; and
            ``(2) address--
                    ``(A) methods to coordinate dissemination of the 
                influenza vaccine to key populations in the event of an 
                influenza pandemic or epidemic;
                    ``(B) 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;
                    ``(C) alternative ways to manufacture or produce 
                the influenza vaccine;
                    ``(D) alternative methods to prevent the spread of, 
                and complications associated with, influenza, including 
                antiviral medications;
                    ``(E) vaccine manufacturing capacity, production, 
                and dissemination to improve preparedness for immediate 
                pandemic threats, which may include avian influenza;
                    ``(F) a tracking method for publicly and privately 
                sold doses of the influenza vaccine to enable the 
                Director of the Program to determine, after 
                consultation with manufacturers of the influenza 
                vaccine, how much supply is in circulation in the case 
                of an influenza pandemic or epidemic; and
                    ``(G) other issues determined by the Director of 
                the Program to be appropriate.
    ``(c) Coordination; Preparation; Prevention.--In establishing the 
protocol under subsection (a), the Director of the Program shall--
            ``(1) coordinate with health care providers, manufacturers, 
        research institutions, health care organizations, and other 
        expert stakeholders;
            ``(2) continue building international and national 
        surveillance capacity;
            ``(3) continue to engage in epidemiological studies and 
        research on novel influenza viruses; and
            ``(4) assist States with preparedness activities for a 
        rapid State and local response to an influenza pandemic, 
        including exploring methods of making the influenza vaccine 
        more accessible to the general population.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $150,000,000 for each of fiscal 
years 2005 through 2009.''.

Summary: Flu Protection Act of 2005 - Amends the Public Health Act to require the Secretary of Health and Human Services, acting through the Director of the Centers for Disease Control and Prevention (CDC), to conduct, annually, a public influenza awareness campaign and education and outreach efforts preceding the flu season.

Requires the Administrator of the Centers for Medicare & Medicaid Services to urge early and full preordering of the influenza vaccine by Medicare providers.

Requires the Director to: (1) work with the Administrator to publish influenza immunization rates among Medicare recipients; (2) support the development of State adult immunization programs that emphasize improving influenza vaccine delivery to high-risk populations and the general population; and (3) work with appropriate agencies to assess the efficacy of the influenza vaccine.

Amends the Internal Revenue Code to establish a vaccine manufacturing facilities investment tax credit (20 percent of qualifying property per year) for property placed in service by December 31, 2009.

Requires the Secretary to: (1) enter into contracts with manufacturers to produce additional necessary doses of the influenza vaccine; and (2) encourage States to develop a contingency plan for maximizing influenza immunization for high-risk populations in the event of a delay or shortage of the vaccine.

Requires the Secretary, acting through the Director of the National Vaccine Program, to establish a protocol to prevent, prepare for, and respond to an influenza pandemic or epidemic.