H. R. 1166
IN THE HOUSE OF REPRESENTATIVES
February 24, 2023
Mr. Vargas introduced the following bill; which was referred to the Committee on Financial Services
To enhance authorities under the Defense Production Act of 1950 to respond to the public health emergencies, to provide additional oversight of such authorities, and for other purposes.
This Act may be cited as the
Public Health Emergency Medical Supplies Enhancement Act of 2023.
Public health emergencies
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.
Public health emergency
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended by inserting after section 711 the following:
Public health emergencies
Scarce and critical materials
During a public health emergency, any 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 may be deemed by the President to be a scarce and critical material essential to the national defense for purposes of section 101 and otherwise meet the requirements of section 101(b), and funds available to implement this Act may be used for the purchase, production (including the construction, repair, and retrofitting of government-owned facilities as necessary), or distribution of such medical equipment or supplies.
Exercise of title I authorities in relation to contracts by State, local, or Tribal governments
In exercising authorities under title I during a public health emergency, the President (and any officer or employee of the United States to which authorities under such title I have been delegated)—
may exercise the prioritization or allocation authority provided in such title I to exclude any materials or supplies described in subsection (a) ordered by a State, local, or Tribal government that are scheduled to be delivered within 15 days of the time at which—
the purchase order or contract by the Federal Government for such materials or supplies is made; or
the materials or supplies are otherwise allocated by the Federal Government under the authorities contained in this Act; and
shall, within 24 hours of any exercise of the prioritization or allocation authority provided in such title I—
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 or supplies ordered by such government; and
take such steps as may be necessary, and as authorized by law, to ensure that such materials or supplies ordered by such government are delivered in the shortest possible period, consistent with the purposes of this Act.
Engagement with the private sector
Consistent with the authorities in this title VII, 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, an individual to be known as the
Outreach Representative for any public health emergency. Such individual shall—
be appointed from among individuals with substantial experience in the production or distribution of medical supplies or equipment; and
act as the governmentwide single point of contact during the public health emergency for outreach to manufacturing companies and their suppliers who may be interested in producing medical supplies or equipment, including the materials described under subsection (a).
During a public health emergency, 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 public health emergency, including through the exercise of the authorities delegated by the President under section 708.
Enhancement of supply chain production
In exercising authority under title III during a public health emergency with respect to materials described in subsection (a), 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 subsection (a), if applicable, to the extent necessary for the national defense during the public health emergency.
Enhanced reporting during a public health emergency
Not later than 90 days after the use of authorities under this Act with respect to a public health emergency, and every 120 days thereafter until the termination of such public health emergency, 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 with respect to the public health emergency.
Each report required under paragraph (1) shall include the following:
With respect to each exercise of such authority—
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));
the cost of such exercise of authority; and
the amount of goods that were purchased or allocated;
an identification of the entity awarded a contract or purchase order or that was the subject of the exercise of authority; and
an identification of any entity that had shipments delayed by the exercise of any authority under this Act.
A description of any consultations conducted with relevant stakeholders on the needs addressed by the exercise of the authorities described in paragraph (1).
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 each report.
In this section:
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.
The term relevant stakeholder means—
representative private sector entities;
representatives of the nonprofit sector;
representatives of primary and secondary school systems; and
representatives of organizations representing workers, including health workers, manufacturers, teachers, other public sector employees, and service sector workers.
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.
Update to Federal regulations
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 section 712(b) of the Defense Production Act of 1950.
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 section 712(b) of the Defense Production Act of 1950, consistent with the revisions made pursuant to paragraph (1).
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)) with respect to fiscal years 2023 and 2024 shall include the percentage of contracts awarded using funds to carry out the Defense Production Act of 1950 for each of the fiscal years 2023 and 2024, respectively, to small business concerns (as defined under section 702 of such Act).