COVID-19 Emergency Medical Supplies Enhancement Act of 2021
Bill: H.R.3125 | Sponsor: Rep. Vargas, Juan (D-CA)
Policy area: Government Operations and Politics

Summary:
COVID-19 Emergency Medical Supplies Enhancement Act of 2021
This bill expands certain authorities under the Defense Production Act of 1950 (DPA) and authorizes the President and federal agencies to take specific actions to support the production of critical medical supplies during the COVID-19 (i.e., coronavirus disease 2019) emergency, including with respect to private-sector coordination, needs assessments, and overall strategies.
The bill makes loans under the DPA subject to certain notification requirements.
A report required under the DPA for FY2022 and FY2023 shall include the percentage of contracts awarded to small businesses.


To enhance authorities under the Defense Production Act of 1950 to 
 respond to the COVID-19 emergency, to provide additional oversight of 
               such authorities, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``COVID-19 Emergency Medical Supplies 
Enhancement Act of 2021''.

SEC. 2. DETERMINATION ON EMERGENCY SUPPLIES AND OTHER PUBLIC HEALTH 
              EMERGENCIES.

    (a) COVID-19 Pandemic Response.--For the purposes of section 101 of 
the Defense Production Act of 1950 (50 U.S.C. 4511), the following 
materials may be deemed by the President, during the COVID-19 emergency 
period, to be scarce and critical materials essential to the national 
defense and otherwise meet the requirements of section 101(b) of such 
Act, and funds available to implement such Act may be used for the 
purchase, production (including the construction, repair, and 
retrofitting of government-owned facilities as necessary), or 
distribution of such materials:
            (1) In vitro diagnostic products (as defined in section 
        809.3(a) of title 21, Code of Federal Regulations) for the 
        detection of SARS-CoV-2 or the diagnosis of the virus that 
        causes COVID-19, and the reagents and other materials necessary 
        for producing, conducting, or administering such products, and 
        the machinery, equipment, laboratory capacity, or other 
        technology necessary to produce such products.
            (2) Face masks and personal protective equipment, including 
        non-surgical isolation gowns, face shields, nitrile gloves, N-
        95 filtering facepiece respirators, and any other masks or 
        equipment (including durable medical equipment) determined by 
        the Secretary of Health and Human Services to be needed to 
        respond to the COVID-19 pandemic, and the materials, machinery, 
        additional manufacturing lines or facilities, or other 
        technology necessary to produce such equipment.
            (3) Drugs and devices (as those terms are defined in the 
        Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.)) 
        and biological products (as that term is defined by section 351 
        of the Public Health Service Act (42 U.S.C. 262)) that are 
        approved, cleared, licensed, or authorized under either of such 
        Acts for use in treating or preventing COVID-19 and symptoms 
        related to COVID-19, and any materials, manufacturing 
        machinery, additional manufacturing or fill-finish lines or 
        facilities, technology, or equipment (including durable medical 
        equipment) necessary to produce or use such drugs, biological 
        products, or devices (including syringes, vials, or other 
        supplies or equipment related to delivery, distribution, or 
        administration).
            (4) Any other medical equipment or supplies determined by 
        the Secretary of Health and Human Services or the Secretary of 
        Homeland Security to be scarce and critical materials essential 
        to the national defense for purposes of section 101 of the 
        Defense Production Act of 1950 (50 U.S.C. 4511).
    (b) Future Preparedness for Health Emergencies.--Section 702(14) of 
the Defense Production Act of 1950 is amended by striking ``and 
critical infrastructure protection and restoration'' and inserting ``, 
critical infrastructure protection and restoration, and public health 
emergency preparedness and response activities''.

SEC. 3. EXERCISE OF TITLE I AUTHORITIES IN RELATION TO CONTRACTS BY 
              STATE, LOCAL, OR TRIBAL GOVERNMENTS.

    (a) In General.--In exercising authorities under title I of the 
Defense Production Act of 1950 (50 U.S.C. 4511 et seq.) during the 
COVID-19 emergency period, the President (and any officer or employee 
of the United States to which authorities under such title I have been 
delegated)--
            (1) may exercise the prioritization or allocation authority 
        provided in such title I to exclude any materials described in 
        section 2 ordered by a State, local, or Tribal government that 
        are scheduled to be delivered within 15 days of the time at 
        which--
                    (A) the purchase order or contract by the Federal 
                Government for such materials is made; or
                    (B) the materials are otherwise allocated by the 
                Federal Government under the authorities contained in 
                such Act; and
            (2) shall, within 24 hours of any exercise of the 
        prioritization or allocation authority provided in such title 
        I--
                    (A) to the extent practicable notify any State, 
                local, or Tribal government if the President determines 
                that the exercise of such authorities would delay the 
                receipt of such materials ordered by such government; 
                and
                    (B) take such steps as may be necessary, and as 
                authorized by law, to ensure that such materials 
                ordered by such government are delivered in the 
                shortest possible period, consistent with the purposes 
                of the Defense Production Act of 1950.
    (b) Update to Federal Regulations.--
            (1) DPAS.--Not later than 30 days after the date of 
        enactment of this Act, the Defense Property Accountability 
        System regulations (15 C.F.R. part 700) shall be revised to 
        reflect the requirements of subsection (a).
            (2) FAR.--Not later than 30 days after the revisions 
        required by paragraph (1) are made, the Federal Acquisition 
        Regulation shall be revised to reflect the requirements of 
        subsection (a), consistent with the revisions made pursuant to 
        paragraph (1).

SEC. 4. ENGAGEMENT WITH THE PRIVATE SECTOR.

    (a) Outreach Representative.--Consistent with the authorities in 
title VII of the Defense Production Act of 1950 (50 U.S.C. 4551 et 
seq.), the Administrator of the Federal Emergency Management Agency, in 
consultation with the Secretary of Health and Human Services, may 
designate or appoint, pursuant to section 703 of such Act (50 U.S.C. 
4553), an individual to be known as the ``Outreach Representative'' for 
the COVID-19 emergency period. Such individual shall--
            (1) be appointed from among individuals with substantial 
        experience in the production or distribution of medical 
        supplies or equipment; and
            (2) act as the Government-wide single point of contact 
        during the COVID-19 emergency for outreach to manufacturing 
        companies and their suppliers who may be interested in 
        producing medical supplies or equipment, including the 
        materials described under section 2.
    (b) Encouraging Partnerships.--During the COVID-19 emergency 
period, the Outreach Representative shall seek to develop partnerships 
between companies, in coordination with any overall coordinator 
appointed by the President to oversee the response to the COVID-19 
emergency, including through the exercise of the authorities delegated 
by the President under section 708 of the Defense Production Act of 
1950 (50 U.S.C. 4558).

SEC. 5. ENHANCEMENT OF SUPPLY CHAIN PRODUCTION.

    In exercising authority under title III of the Defense Production 
Act of 1950 (50 U.S.C. 4531 et seq.) with respect to materials 
described in section 2, the President shall seek to ensure that support 
is provided to companies that comprise the supply chains for reagents, 
components, raw materials, and other materials and items necessary to 
produce or use the materials described in section 2 to the extent 
necessary for the national defense during the COVID-19 emergency 
period.

SEC. 6. ENHANCED REPORTING DURING COVID-19 EMERGENCY.

    (a) Report on Exercising Authorities Under the Defense Production 
Act of 1950.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President, in consultation with 
        the Administrator of the Federal Emergency Management Agency, 
        the Secretary of Defense, and the Secretary of Health and Human 
        Services, shall submit to the appropriate congressional 
        committees a report on the exercise of authorities under titles 
        I, III, and VII of the Defense Production Act of 1950 (50 
        U.S.C. 4501 et seq.) prior to the date of such report for the 
        purposes of the COVID-19 response.
            (2) Contents.--The report required under subsection (a) and 
        the update required under paragraph (3) shall include the 
        following:
                    (A) In general.--With respect to each exercise of 
                such authority--
                            (i) an explanation of the purpose of the 
                        applicable contract, purchase order, or other 
                        exercise of authority (including an allocation 
                        of materials, services, and facilities under 
                        section 101(a)(2) of the Defense Production Act 
                        of 1950 (50 U.S.C. 4511(a)(2));
                            (ii) the cost of such exercise of 
                        authority; and
                            (iii) if applicable--
                                    (I) the amount of goods that were 
                                purchased or allocated;
                                    (II) an identification of the 
                                entity awarded a contract or purchase 
                                order or that was the subject of the 
                                exercise of authority; and
                                    (III) an identification of any 
                                entity that had shipments delayed by 
                                the exercise of any authority under the 
                                Defense Production Act of 1950 (50 
                                U.S.C. 4501 et seq.).
                    (B) Consultations.--A description of any 
                consultations conducted with relevant stakeholders on 
                the needs addressed by the exercise of the authorities 
                described in paragraph (1).
            (3) Update.--The President shall provide an additional 
        briefing to the appropriate congressional committees on the 
        matters described under paragraph (2) no later than four months 
        after the submission of the report.
    (b) Exercise of Loan Authorities.--
            (1) In general.--Any loan made pursuant to section 302 or 
        303 of the Defense Production Act of 1950, carried out by the 
        United States International Development Finance Corporation 
        pursuant to the authorities delegated by Executive Order No. 
        13922, shall be subject to the notification requirements 
        contained in section 1446 of the BUILD Act of 2018 (22 U.S.C. 
        9656).
            (2) Appropriate congressional committees.--For purposes of 
        the notifications required by paragraph (1) the term 
        ``appropriate congressional committees'', as used section 1446 
        of the BUILD Act of 2018, shall be deemed to include the 
        Committee on Financial Services of the House of Representatives 
        and the Committee on Banking, Housing and Urban Development of 
        the Senate.
    (c) Sunset.--The requirements of this section shall terminate on 
the later of--
            (1) December 31, 2021; or
            (2) the end of the COVID-19 emergency period.

SEC. 7. REPORT ON ACTIVITIES INVOLVING SMALL BUSINESS.

    The report required by section 304(f)(3) of the Defense Production 
Act of 1950 (50 U.S.C. 4534(f)(3)) for fiscal years 2022 and 2023 shall 
include the percentage of contracts awarded using funds to carry out 
the Defense Production Act of 1950 for each of the fiscal years 2022 
and 2023, respectively, to small business concerns (as defined under 
section 702 of such Act).

SEC. 8. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committees 
        on Appropriations, Armed Services, Energy and Commerce, 
        Financial Services, and Homeland Security of the House of 
        Representatives and the Committees on Appropriations, Armed 
        Services, Banking, Housing, and Urban Affairs, Health, 
        Education, Labor, and Pensions, Homeland Security and 
        Governmental Affairs, and Veterans' Affairs of the Senate.
            (2) COVID-19 emergency period.--The term ``COVID-19 
        emergency period'' means the period beginning on the date of 
        enactment of this Act and ending on the earlier of--
                    (A) the end of the incident period for the 
                emergency declared on March 13, 2020, by the President 
                under section 501 of the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 4121 et 
                seq.) relating to the Coronavirus Disease 2019 (COVID-
                19) pandemic; or
                    (B) September 30, 2025.
            (3) Relevant stakeholder.--The term ``relevant 
        stakeholder'' means--
                    (A) representative private sector entities;
                    (B) representatives of the nonprofit sector;
                    (C) representatives of primary and secondary school 
                systems; and
                    (D) representatives of organizations representing 
                workers, including health workers, manufacturers, 
                teachers, other public sector employees, and service 
                sector workers.
            (4) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and any territory or possession of the United States.

            Passed the House of Representatives May 18, 2021.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.