[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3125 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 3125
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 11, 2021
Mr. Vargas (for himself and Mr. Hill) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
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.
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