[Congressional Record Volume 164, Number 140 (Wednesday, August 22, 2018)]
[Senate]
[Pages S5852-S5853]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3963. Mr. SANDERS submitted an amendment intended to be proposed 
to amendment SA 3695 proposed by Mr. Shelby to the bill H.R. 6157, 
making appropriations for the Department of Defense for the fiscal year 
ending September 30, 2019, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place in title II of division B, insert 
     the following:

     SEC. __. REASONABLE PRICE AGREEMENT.

       (a) In General.--If any Federal agency or any non-profit 
     entity using funds appropriated in this Act undertakes 
     Federally funded health care research and development and is 
     to convey or provide a patent for a drug, biologic, or other 
     health care technology developed through such research, such 
     agency or entity shall not make such conveyance or provide 
     such patent until the entity (including a non-profit entity) 
     that will receive such patent first agrees to a reasonable 
     pricing agreement with the Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary'') 
     or the Secretary makes a determination that the public 
     interest is served by a waiver of the reasonable pricing 
     agreement provided in accordance with subsection (c).
       (b) Prohibition of Discrimination.--
       (1) In general.--For purposes of subsection (a), any 
     reasonable pricing formula that is utilized shall not result 
     in discriminatory pricing for the drug, biologic, or other 
     health care technology involved regardless of the number of 
     bidders involved. In carrying out this subparagraph, the 
     Secretary shall ensure that the Federal Government, with 
     respect to the drug, biologic, or other health care 
     technology involved, is charged an amount that is not more 
     than the lowest amount charged to countries in the 
     Organization for Economic Co-Operation and Development for 
     the same drug, biologic, or technology, that have the largest 
     gross domestic product with a per capita income that is not 
     less than half the per capita income of the United States.
       (2) Discriminatory pricing.--For the purposes of paragraph 
     (1), a cost based reasonable pricing formula that is utilized 
     shall be considered to result in discriminatory pricing if 
     the contract for sale of the drug, biologic, or other health 
     care technology places a limit on supply, or employs any 
     other measure, that has the effect of--
       (A) providing access to such drug, biologic, or technology 
     on terms or conditions that are less favorable than the terms 
     or conditions provided to a foreign purchaser (other than a 
     charitable or humanitarian organization) of the drug, 
     biologic, or technology; or
       (B) restricting access to the drug, biologic, or technology 
     under this section.
       (c) Waiver.--No waiver shall take effect under subsection 
     (a) before the public is

[[Page S5853]]

     given notice of the proposed waiver and provided a reasonable 
     opportunity to comment on the proposed waiver. A decision to 
     grant a waiver shall set out the Secretary's finding that 
     such a waiver is in the public interest.
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