[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3812 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3812

To create incentives for private sector research related to developing 
vaccines against widespread diseases and ensure that such vaccines are 
                   affordable and widely distributed.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 1, 2000

   Ms. Pelosi (for herself, Mr. Lantos, Mr. Inslee, Mr. Hinchey, Mr. 
   Jefferson, Mr. Jackson of Illinois, Ms. Woolsey, Mr. Matsui, Mrs. 
 Morella, and Mr. Romero-Barcelo) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to the 
Committees on International Relations, and Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To create incentives for private sector research related to developing 
vaccines against widespread diseases and ensure that such vaccines are 
                   affordable and widely distributed.

    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 ``Vaccines for the New Millennium Act 
of 2000''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Vaccines are among the most cost-effective weapons in 
        the arsenal of modern medicine to stop the spread of contagious 
        diseases and strengthen an individual's immune system to resist 
        a wide range of infectious diseases, and vaccines offer a 
        relatively inexpensive means of lowering a society's overall 
        cost of medical care.
            (2) Every year, up to 3,000,000 children's lives are saved 
        as the result of early childhood immunizations. But almost 
        3,000,000 more lives worldwide are lost from diseases that 
        could be prevented with existing vaccines.
            (3) Today, 1 in 4 children do not receive the 6 basic 
        vaccinations: polio, diptheria, whooping cough, tetanus, 
        measles, and tuberculosis. The proportion of children immunized 
        against these 6 diseases has declined in recent years, from 
        approximately 80 percent in 1990 to 74 percent in 1998.
            (4) Safe, effective, and universal immunization is a means 
        to end the tragedy of avoidable childhood deaths, and a means 
        to improve the overall health, productivity, and security of 
        society.
            (5) As well as the challenges of increasing access to 
        existing vaccines, there are additional challenges for research 
        and development of new vaccines. Over 5,000,000 people die 
        annually from HIV, tuberculosis, and malaria. Vaccines against 
        these infectious diseases are urgently needed.
            (6) The spread of HIV is a human tragedy that is reversing 
        previous gains in life expectancy and exacerbating poverty in 
        developing countries. Over 33,000,000 people are infected with 
        HIV, and the disease will kill more than 2,500,000 people this 
        year. More than 11,000,000 children worldwide have been 
        orphaned by AIDS and 16,000 people become newly infected every 
        day.
            (7) While an estimated $2,000,000,000 is spent annually on 
        research for AIDS treatment, much of it by the private sector, 
        the total global research and development for preventive HIV 
        vaccines is substantially less, perhaps as little as 
        $300,000,000, and of the amount spent on lifesaving vaccine 
        research, only a fraction is financed by private sector drug 
        manufacturers.
            (8) Between 7,000,000 and 8,000,000 individuals develop 
        active tuberculosis every year and 2,000,000 to 3,000,000 
        individuals die from tuberculosis each year, with tuberculosis 
        accounting for more than \1/4\ of all preventable adult deaths 
        in developing countries. An individual is newly infected with 
        tuberculosis every second, and someone dies of tuberculosis 
        every 10 seconds.
            (9) Each year, 300,000,000 to 500,000,000 individuals 
        become ill with malaria, and approximately 1,000,000 
        individuals die from the disease, exacting an enormous toll in 
        lives, medical costs, and lost productivity. The majority of 
        those who die from malaria are children under the age of 5. One 
        person dies from malaria every 30 seconds.
            (10) While additional public funds for basic research are 
        critical in the effort to find vaccines for HIV, malaria, and 
        tuberculosis, equally important is a concerted effort by 
        private sector drug manufacturers to find vaccines for these 3 
        major infectious diseases.
            (11) Additional, targeted public subsidies for private 
        sector lifesaving vaccine research and development are 
        justified on the basis that achieving effective and affordable 
        vaccines for HIV, malaria, and tuberculosis will yield public 
benefits beyond those benefits captured by the manufacturer.

SEC. 3. UNIVERSAL EARLY CHILDHOOD IMMUNIZATIONS.

    Section 104(c)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2151b(c)(3)) is amended in the fourth sentence by striking ``the 
protection of'' and all that follows through ``1991'' and inserting 
``the universal protection of all children from immunizable diseases by 
December 31, 2009''.

SEC. 4. VOLUNTARY CONTRIBUTION TO GLOBAL ALLIANCE FOR VACCINES AND 
              IMMUNIZATIONS AND INTERNATIONAL AIDS VACCINE INITIATIVE.

    (a) Authorization of Appropriations.--Section 302 of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2222) is amended by adding at the end 
the following:
    ``(j) In addition to amounts otherwise available under this 
section, there are authorized to be appropriated to the President for 
fiscal year 2001 an amount not in excess of $50,000,000 and for fiscal 
year 2002 an amount not in excess of $100,000,000 to be available only 
for United States contributions to the Global Alliance for Vaccines and 
Immunizations.
    ``(k) In addition to amounts otherwise available under this 
section, there are authorized to be appropriated to the President for 
fiscal year 2001 $10,000,000 and for fiscal year 2002 $20,000,000 to be 
available only for United States contributions to the International 
AIDS Vaccine Initiative.''.
    (b) Report.--The President shall include in the July 1 report 
submitted to Congress under section 305(b)(1) of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2226(b)(1)) for fiscal years 2001 and 2002 a 
report on the effectiveness of the Global Alliance for Vaccines and 
Immunizations in meeting the goals of--
            (1) improving access to sustainable immunization services;
            (2) expanding the use of all existing, safe, and cost-
        effective vaccines where they address a public health problem;
            (3) accelerating the development and introduction of new 
        vaccines and technologies;
            (4) accelerating research and development efforts for 
        vaccines needed primarily in developing countries; and
            (5) making immunization coverage a centerpiece in 
        international development efforts.

SEC. 5. CREDIT FOR MEDICAL RESEARCH RELATED TO DEVELOPING VACCINES 
              AGAINST WIDESPREAD DISEASES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45D. CREDIT FOR MEDICAL RESEARCH RELATED TO DEVELOPING VACCINES 
              AGAINST WIDESPREAD DISEASES.

    ``(a) General Rule.--For purposes of section 38, the vaccine 
research credit determined under this section for the taxable year is 
an amount equal to 30 percent of the qualified vaccine research 
expenses for the taxable year.
    ``(b) Qualified Vaccine Research Expenses.--For purposes of this 
section--
            ``(1) Qualified vaccine research expenses.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the term `qualified vaccine research 
                expenses' means the amounts which are paid or incurred 
                by the taxpayer during the taxable year which would be 
                described in subsection (b) of section 41 if such 
                subsection were applied with the modifications set 
                forth in subparagraph (B).
                    ``(B) Modifications.--For purposes of subparagraph 
                (A), subsection (b) of section 41 shall be applied--
                            ``(i) by substituting `vaccine research' 
                        for `qualified research' each place it appears 
                        in paragraphs (2) and (3) of such subsection, 
                        and
                            ``(ii) by substituting `75 percent' for `65 
                        percent' in paragraph (3)(A) of such 
                        subsection.
                    ``(C) Exclusion for amounts funded by grants, 
                etc.--The term `qualified vaccine research expenses' 
                shall not include any amount to the extent such amount 
                is funded by any grant, contract, or otherwise by 
                another person (or any governmental entity).
            ``(2) Vaccine research.--The term `vaccine research' means 
        research to develop vaccines and microbicides for--
                    ``(A) malaria,
                    ``(B) tuberculosis,
                    ``(C) HIV, or
                    ``(D) any infectious disease (of a single etiology) 
                which, according to the World Health Organization, 
                causes over 1,000,000 human deaths annually.
    ``(c) Coordination With Credit for Increasing Research 
Expenditures.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        qualified vaccine research expenses for a taxable year to which 
        an election under this section applies shall not be taken into 
        account for purposes of determining the credit allowable under 
        section 41 for such taxable year.
            ``(2) Expenses included in determining base period research 
        expenses.--Any qualified vaccine research expenses for any 
        taxable year which are qualified research expenses (within the 
        meaning of section 41(b)) shall be taken into account in 
        determining base period research expenses for purposes of 
        applying section 41 to subsequent taxable years.
    ``(d) Special Rules.--
            ``(1) Limitations on foreign testing.--No credit shall be 
        allowed under this section with respect to any vaccine research 
        (other than human clinical testing) conducted outside the 
        United States.
            ``(2) Certain rules made applicable.--Rules similar to the 
        rules of paragraphs (1) and (2) of section 41(f) shall apply 
        for purposes of this section.
            ``(3) Election.--This section (other than subsection (e)) 
        shall apply to any taxpayer for any taxable year only if such 
        taxpayer elects to have this section apply for such taxable 
        year.
    ``(e) Shareholder Equity Investment Credit in Lieu of Research 
Credit.--
            ``(1) In general.--For purposes of section 38, the vaccine 
        research credit determined under this section for the taxable 
        year shall include an amount equal to 20 percent of the amount 
        paid by the taxpayer to acquire qualified research stock in a 
        corporation if--
                    ``(A) the amount received by the corporation for 
                such stock is used within 18 months after the amount is 
                received to pay qualified vaccine research expenses of 
                the corporation for which a credit would (but for 
                subparagraph (B) and subsection (d)(3)) be determined 
                under this section, and
                    ``(B) the corporation waives its right to the 
                credit determined under this section for the qualified 
                vaccine research expenses which are paid with such 
                amount.
            ``(2) Qualified research stock.--For purposes of paragraph 
        (1), the term `qualified research stock' means any stock in a C 
        corporation--
                    ``(A) which is originally issued after the date of 
                the enactment of the Lifesaving Vaccine Technology Act 
                of 1999,
                    ``(B) which is acquired by the taxpayer at its 
                original issue (directly or through an underwriter) in 
                exchange for money or other property (not including 
                stock), and
                    ``(C) as of the date of issuance, such corporation 
                meets the gross assets tests of subparagraphs (A) and 
                (B) of section 1202(d)(1).''
    (b) Inclusion in General Business Credit.--
            (1) In general.--Section 38(b) of such Code is amended by 
        striking ``plus'' at the end of paragraph (11), by striking the 
        period at the end of paragraph (12) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(13) the vaccine research credit determined under section 
        45D.''.
            (2) Transition rule.--Section 39(d) of such Code is amended 
        by adding at the end the following new paragraph:
            ``(9) No carryback of section 45d credit before 
        enactment.--No portion of the unused business credit for any 
        taxable year which is attributable to the vaccine research 
        credit determined under section 45D may be carried back to a 
        taxable year ending before the date of the enactment of section 
        45D.''.
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end the following new subsection:
    ``(d) Credit for Qualified Vaccine Research Expenses.--
            ``(1) In general.--No deduction shall be allowed for that 
        portion of the qualified vaccine research expenses (as defined 
        in section 45D(b)) otherwise allowable as a deduction for the 
        taxable year which is equal to the amount of the credit 
        determined for such taxable year under section 45D(a).
            ``(2) Certain rules to apply.--Rules similar to the rules 
        of paragraphs (2), (3), and (4) of subsection (c) shall apply 
        for purposes of this subsection.''.
    (d) Deduction for Unused Portion of Credit.--Section 196(c) of such 
Code (defining qualified business credits) is amended by striking 
``and'' at the end of paragraph (7), by striking the period at the end 
of paragraph (8) and inserting ``, and'', and by adding at the end the 
following new paragraph:
            ``(9) the vaccine research credit determined under section 
        45D(a) (other than such credit determined under the rules of 
        section 280C(d)(2)).''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 45D. Credit for medical research 
                                        related to developing vaccines 
                                        against widespread diseases.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.
    (g) Distribution of Vaccines Developed Using Credit.--It is the 
sense of the Congress that if credit is allowed under section 45D of 
the Internal Revenue Code of 1986 to any corporation or shareholder of 
a corporation by reason of vaccine research expenses incurred by the 
corporation in the development of a vaccine, such corporation should 
certify to the Secretary of the Treasury that, within 1 year after that 
vaccine is first licensed, such corporation will establish a good faith 
plan utilizing technology transfer, differential pricing, in-country 
production, or other mechanisms to maximize international access to 
high quality and affordable vaccines. The preceding sentence shall not 
be construed to waive rights to set prices, patent ownership, or 
confidentiality of privileged information.
    (h) Study.--The Institute of Medicine shall conduct a study of the 
effectiveness of the credit under section 45D of the Internal Revenue 
Code of 1986 in stimulating vaccine research. Not later than the date 
which is 5 years after the date of the enactment of this Act, the 
Institute of Medicine shall submit to the Congress the results of such 
study together with any recommendations it may have to improve the 
effectiveness of such credit in stimulating vaccine research.

SEC. 6. CREDIT FOR CERTAIN SALES OF LIFESAVING VACCINES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits), as amended by section 5(a), is amended by adding at the end 
the following new section:

``SEC. 45E. CREDIT FOR CERTAIN SALES OF LIFESAVING VACCINES.

    ``(a) In General.--For purposes of section 38, the lifesaving 
vaccine sale credit determined under this section with respect to a 
taxpayer for the taxable year is an amount equal to the amount of 
qualified vaccine sales for the taxable year.
    ``(b) Qualified Vaccine Sales.--For purposes of this section--
            ``(1) In general.--The term `qualified vaccine sales' means 
        the aggregate amount paid to the taxpayer for a qualified sale.
            ``(2) Qualified sale.--
                    ``(A) In general.--The term `qualified sale' means 
                a sale of a qualified vaccine--
                            ``(i) to a nonprofit organization, 
                        governmental unit, or government of any foreign 
                        government, and
                            ``(ii) for distribution in a developing 
                        country.
                    ``(B) Developing country.--For purposes of this 
                paragraph, the term `developing country' means a 
                country which the International Bank for Reconstruction 
                and Development (commonly referred to as the `World 
                Bank') determines to be a country with a lower middle 
                income or less.
            ``(3) Qualified vaccine.--The term `qualified vaccine' 
        means a vaccine (as defined in section 4132(a)(2)) which is--
                    ``(A) approved by the Food and Drug Administration 
                as a new drug after the date of the enactment of this 
                paragraph, and
                    ``(B) used for--
                            ``(i) malaria,
                            ``(ii) tuberculosis,
                            ``(iii) HIV, or
                            ``(iv) any infectious disease (of a single 
                        etiology) that is determined by the Secretary 
                        of Health and Human Services (after 
                        consultation with the Director of the Center 
                        for Disease Control and Prevention and the 
                        United States Agency for International 
                        Development) to cause the deaths of over 
                        1,000,000 people worldwide each year.
    ``(c) Limit on Amount of Credit.--The maximum amount of the credit 
allowable under subsection (a) with respect to a sale shall not exceed 
the portion of the limitation amount allocated under subsection (d) 
with respect to such sale.
    ``(d) National Limitation on Amount of Credits.--
            ``(1) In general.--Except as provided in paragraph (3), 
        there is a lifesaving vaccine sale credit for each calendar 
        year equal to--
                    ``(A) $100,000,000 for each of years 2002 through 
                2006,
                    ``(B) $125,000,000 for each of years 2007 through 
                2010, and
                    ``(C) zero after 2011.
            ``(2) Allocation of limitation.--
                    ``(A) In general.--The limitation amount under 
                paragraph (1) shall be allocated on a competitive basis 
                for any calendar year by the Secretary (in consultation 
                with the Administrator of the United States Agency for 
                International Development) among organizations with an 
                approved application.
                    ``(B) Approved application.--For purposes of 
                subparagraph (A), the term `approved application' means 
                an application which is approved by the Administrator 
                of the United States Agency for International 
                Development with respect to a qualified sale made 
                during the calendar year. Such application shall be 
                made at such time and in such form and manner as the 
                Administrator shall prescribe by regulation and shall 
                include a detailed and cost-effective plan for 
                distribution of the vaccine.
            ``(3) Carryover of unused limitation.--If the limitation 
        amount under paragraph (1) for any calendar year exceeds the 
        aggregate amount allocated under paragraph (2), such limitation 
        for the following calendar year shall be increased by the 
        amount of such excess. The limitation amount shall remain 
        available until expended.
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules of section 41(f)(2) shall apply.''.
    (b) Inclusion in General Business Credit.--
            (1) In general.--Section 38(b) of the Internal Revenue Code 
        of 1986 (relating to current year business credit), as amended 
        by section 5(b)(1), is amended by striking ``plus'' at the end 
        of paragraph (12), by striking the period at the end of 
        paragraph (13) and inserting ``, plus'', and by adding at the 
        end the following new paragraph:
            ``(14) the lifesaving vaccine sale credit determined under 
        section 45E.''.
            (2) Transition rule.--Section 39(d) of such Code (relating 
        to transitional rules), as amended by section 5(b)(2), is 
        amended by adding at the end the following new paragraph:
            ``(10) No carryback of section 45e credit before 
        enactment.--No portion of the unused business credit for any 
        taxable year which is attributable to the lifesaving vaccine 
        sale credit determined under section 45E may be carried back to 
        a taxable year ending before the date of the enactment of 
        section 45E.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by section 5(e), is amended by adding at the end the 
following new item:

                              ``Sec. 45E. Credit for certain sales of 
                                        lifesaving vaccines.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to sales of vaccines in taxable years beginning after December 
31, 2000.

SEC. 7. LIFESAVING VACCINE PURCHASE FUND.

    (a) Purpose.--It is the purpose of this section to--
            (1) create incentives for private sector research into 
        vaccines for HIV, malaria, tuberculosis, and other major 
        infectious diseases; and
            (2) ensure that vaccines for major infectious diseases are 
        affordable and widely distributed.
    (b) Definitions.--In this section:
            (1) Developing country.--The term ``developing country'' 
        means a country which the International Bank for Reconstruction 
        and Development (commonly referred to as the `World Bank') 
        determines to be a country with a lower middle income or less.
            (2) Eligible vaccine.--The term ``eligible vaccine'' has 
        the meaning given the term ``qualified vaccine'' in section 
        45E(b)(3) of the Internal Revenue Code of 1986.
    (c) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the 
``Lifesaving Vaccine Purchase Fund'' (in this section referred to as 
the ``Fund'') consisting of amounts appropriated under subsection (f).
    (d) Investment of Fund.--Amounts in the Fund shall be invested in 
accordance with section 9702 of title 31, United States Code, and any 
interest on, and proceeds from any such investment shall be credited to 
and become part of the Fund.
    (e) Use of Fund.--
            (1) In general.--The Secretary of the Treasury (in this 
        section referred to as the ``Secretary'') is authorized to 
        expend amounts in the Fund for purchases of eligible vaccines. 
        Such vaccines shall be distributed to developing countries.
            (2) Limitation.--The Secretary shall not make expenditures 
        from the Fund in excess of $100,000,000 for any fiscal year.
            (3) Regulations.--The Secretary shall promulgate such 
        regulations as are necessary to carry out the provisions of 
        this subsection, including regulations regarding--
                    (A) the procedures for purchasing eligible 
                vaccines, including pricing rules which take into 
                account the seller's research and development and 
                manufacturing costs and the desirability of the vaccine 
                purchased, a funding formula establishing a minimum 
                price per dose, and minimum technical requirements and 
                a market test requirement for the eligible vaccine; and
                    (B) the distribution of eligible vaccines to 
                developing countries under agreements between the 
                United States Agency for International Development and 
                international organizations or recipient developing 
                countries that provide for--
                            (i) consideration of the prevalence of the 
                        disease treated by the eligible vaccine in the 
                        recipient developing country;
                            (ii) consideration of the ability of the 
                        recipient country to effectively and safely 
                        deliver the vaccines; and
                            (iii) a required matching payment by the 
                        recipient developing country based on the per 
                        capita income of the country, in an amount not 
                        in excess of 25 percent of the purchase price 
                        paid for such vaccine.
            (4) Consultation.--The Secretary shall promulgate 
        regulations under paragraph (3) after extensive consultation 
        with--
                    (A) the International Bank for Reconstruction and 
                Development (commonly referred to as the ``World 
                Bank'');
                    (B) the World Health Organization;
                    (C) the Secretary of Health and Human Services; and
                    (D) the Lifesaving Vaccine Advisory Commission.
    (f) Appropriations.--
            (1) In general.--Subject to paragraph (2), there are 
        appropriated out of any funds in the Treasury not otherwise 
        appropriated such sums as may be necessary to carry out the 
        purposes of the Fund for each of 10 fiscal years beginning with 
        the first fiscal year in which the Secretary makes an 
        expenditure from the Fund.
            (2) Limitation.--The amount appropriated for any fiscal 
        year under paragraph (1) may not exceed $100,000,000.
            (3) Transfer to fund.--The Secretary shall transfer the 
        amount appropriated under paragraph (1) for a fiscal year to 
        the Fund.
            (4) Availability.--Amounts appropriated under this section 
        shall remain available until expended.

SEC. 8. MULTILATERAL LIFESAVING VACCINE PURCHASE FUND.

    (a) Negotiations.--The President should enter into negotiations 
with officials of foreign governments and other interested parties for 
the establishment of an international vaccine purchase fund that 
would--
            (1) accept contributions from governments of developed 
        countries;
            (2) use such contributions to purchase and distribute in 
        developing countries vaccines for--
                    (A) malaria,
                    (B) tuberculosis,
                    (C) HIV, and
                    (D) any infectious disease (of a single etiology) 
                which causes the deaths of over 1,000,000 people 
                worldwide each year; and
            (3) be a significant market incentive for private sector 
        vaccine research.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter, the President shall report to 
Congress on--
            (1) the status of negotiations under subsection (a); and
            (2) if such fund is established, any recommendations for 
        further action, including recommendations regarding the 
        Lifesaving Vaccine Purchase Fund established under section 7 of 
        this Act.

SEC. 9. LIFESAVING VACCINE ADVISORY COMMISSION TO OVERSEE AND EVALUATE 
              PUBLIC PRIVATE VACCINE PARTNERSHIPS.

    (a) Establishment.--There is established a commission to be known 
as the ``Lifesaving Vaccine Advisory Commission'' (referred to in this 
section as the ``Commission'').
    (b) Membership.--
            (1) Number and appointment.--
                    (A) In general.--The Commission shall be composed 
                of 12 members, appointed by the President, as follows:
                            (i) 6 individuals with experience and 
                        expertise in the pharmaceutical or 
                        biotechnology industry.
                            (ii) 6 individuals with experience and 
                        expertise in the medical, public health, or 
                        academic community.
                The individuals appointed under this subparagraph shall 
                not be officers or employees of the Federal Government, 
                except to the extent that they are considered to be 
                such officers or employees by virtue of their 
                membership on the Commission.
                    (B) Qualifications.--The members of the Commission 
                appointed under subparagraph (A) should, as a group, 
                achieve a balanced membership representing the Nation 
                as a whole and balancing the concerns of the public 
                health community with the concerns of the biotechnology 
                and pharmaceutical industry.
            (2) Time of appointment.--Each member of the Commission 
        shall be appointed not later than 90 days after the date of 
        enactment of this Act.
            (3) Terms.--Each member of the Commission shall be 
        appointed for the life of the Commission.
            (4) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner in which the original appointment was 
        made.
            (5) Compensation.--
                    (A) Prohibition of pay.--Except as provided in 
                subparagraph (B), members of the Commission shall serve 
                without pay.
                    (B) Travel expenses.--Each member of the Commission 
                may receive travel expenses, including per diem in lieu 
                of subsistence, in accordance with sections 5702 and 
                5703 of title 5, United States Code.
            (6) Quorum.--7 members of the Commission shall constitute a 
        quorum.
            (7) Chairperson.--The Commission shall select one of the 
        individuals appointed under paragraph (1) as the chairperson of 
        the Commission.
            (8) Meetings.--The Commission shall meet at the call of its 
        chairperson or a majority of its members.
    (c) Duties.--The Commission shall--
            (1) review the progress of national and international 
        efforts to develop vaccines for--
                    (A) malaria;
                    (B) tuberculosis;
                    (C) HIV; and
                    (D) any infectious disease (of a single etiology) 
                that is determined by the Secretary of Health and Human 
                Services (after consultation with the Director of the 
                Center for Disease Control and Prevention and the 
                Administrator of the United States Agency for 
                International Development) to cause the deaths of over 
                1,000,000 people worldwide each year;
            (2) examine the merits of innovative financing mechanisms, 
        such as tax incentives, purchase funds, patent exchanges, 
        conditional research and development grants based on market 
        pricing agreements, and other proposals that combine public 
        subsidies with private sector research and development efforts, 
        and
            (3) develop consensus among industry and public health 
        advocates on policy recommendations for ways the Federal 
        Government can further advance public private partnerships, 
        both nationally and internationally, in vaccine research and 
        development, with a goal of finding effective and affordable 
        vaccines for the major infectious diseases of the world.
    (d) Staff and Support Services.--
            (1) Staff.--
                    (A) In general.--The chairperson of the Commission 
                may, without regard to civil service laws and 
                regulations and after consultation with the Commission, 
                appoint an executive director of the Commission and 
                such other additional personnel as may be necessary to 
                enable the Commission to perform its duties.
                    (B) Compensation.--The chairperson of the 
                Commission may fix the compensation of the executive 
                director and other personnel without regard to the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of title 5, United States Code, relating to 
                classification of positions and General Schedule pay 
                rates, except that the rate of pay for the executive 
                director and other personnel may not exceed the 
rate payable for level V of the Executive Schedule under section 5316 
of such title.
            (2) Staff of federal agencies.--Upon request by the 
        chairperson of the Commission, the head of any Federal 
        department or agency may detail, on a nonreimbursable basis, 
        any of the personnel of the department or agency to the 
        Commission to assist the Commission to carry out its duties 
        under this Act.
            (3) Administrative support services.--The Administrator of 
        General Services shall provide to the Commission, on a 
        reimbursable basis, any administrative support services that 
        are necessary to enable the Commission to carry out this Act.
    (e) Powers of Commission.--
            (1) Hearings.--The Commission may hold such hearings, sit 
        and act at such times and places, take such testimony, and 
        receive such evidence as the Commission considers advisable to 
        carry out the purposes of this section.
            (2) Information from federal agencies.--The Commission may 
        secure directly from any Federal department or agency such 
        information as the Commission considers necessary to carry out 
        the provisions of this section. Upon request of the chairperson 
        of the Commission, the head of such department or agency shall 
        furnish such information to the Commission.
            (3) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as any other 
        Federal agency.
    (f) Final Report.--Not later than 18 months after the date of 
enactment of this Act, the Commission shall submit to the President and 
Congress a final report. The final report shall contain--
            (1) a summary of the activities of the Commission;
            (2) a final accounting of funds received and expended by 
        the Commission; and
            (3) any findings and recommendations of the Commission 
        which are supported by at least 9 members.

SEC. 10. SENSE OF CONGRESS.

    It is the sense of Congress that flexible or differential pricing 
for vaccines, providing lowered prices for the poorest countries, is 
one of several valid strategies to accelerate the introduction of 
vaccines in developing countries.
                                 <all>