What This Bill Does
This bill expands the President's powers under the Defense Production Act of 1950 to obtain medical equipment and supplies during public health emergencies. It adds new requirements for the government to notify state and local governments when their medical supply orders are delayed and creates reporting rules so Congress can oversee how these emergency powers are used.
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Who It Affects
- The President of the United States
- Federal Emergency Management Agency (FEMA)
- State, local, and Tribal governments
- Secretary of Health and Human Services
- Secretary of Homeland Security
- Secretary of Defense
- Private companies that manufacture or distribute medical supplies
- Congress
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Key Provisions
- During a public health emergency, the President can order medical equipment and supplies that are scarce and critical, and the government can spend money to buy, make, or distribute these materials (Sec. 712(a))
- When the President uses emergency powers to get medical supplies for the federal government, the President must try to notify state, local, or Tribal governments within 24 hours if their orders will be delayed, and must work to deliver their supplies as quickly as possible (Sec. 712(b))
- The President must appoint an "Outreach Representative" with experience in medical supply production or distribution to be the single point of contact between the government and private companies interested in making medical supplies during a public health emergency (Sec. 712(c)(1))
- The President must report to Congress every 90 days and then every 120 days after that, explaining what emergency powers were used, how much money was spent, what supplies were purchased, which companies got contracts, and whether any shipments were delayed (Sec. 712(e))
- For fiscal years 2023 and 2024, a report on Defense Production Act activities must include the percentage of contracts awarded to small business concerns (Sec. 3)
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What Changes
The Defense Production Act of 1950 will now include public health emergency preparedness and response activities as a reason the President can use emergency production powers. A new section 712 is added to that law, creating specific rules for how the President must handle medical supplies during public health emergencies. Regulations for federal procurement and property management must be updated within 30 days to reflect these new requirements.
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Important Definitions
- **Public health emergency**: A public health emergency declared under section 319 of the Public Health Service Act
- **Relevant stakeholder**: Private sector companies, nonprofits, school system representatives, and organizations representing workers including health workers, manufacturers, teachers, public employees, and service sector workers
- **State**: Any of the 50 states, the District of Columbia, Puerto Rico, and any U.S. territory or possession
- **Scarce and critical materials**: Medical equipment or supplies that the Secretary of Health and Human Services or Secretary of Homeland Security determines are scarce and critical
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Effective Date
Not specified in bill text
IB
Union Calendar No. 436
118TH CONGRESS
2D SESSION
H. R. 1166
[Report No. 118–524]
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.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 2023
Mr. VARGAS introduced the following bill; which was referred to the
Committee on Financial Services
MAY 23, 2024
Additional sponsor: Mr. HILL
MAY 23, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on February 24, 2023]
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•HR 1166 RH
A BILL
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.
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•HR 1166 RH
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Public Health Emer-
4
gency Medical Supplies Enhancement Act of 2023’’.
5
SEC. 2. PUBLIC HEALTH EMERGENCIES.
6
(a) FUTURE PREPAREDNESS
FOR HEALTH EMER-
7
GENCIES.—Section 702(14) of the Defense Production Act
8
of 1950 is amended by striking ‘‘and critical infrastructure
9
protection and restoration’’ and inserting ‘‘, critical infra-
10
structure protection and restoration, and public health
11
emergency preparedness and response activities’’.
12
(b) PUBLIC HEALTH EMERGENCY.—The Defense Pro-
13
duction Act of 1950 (50 U.S.C. 4501 et seq.) is amended
14
by inserting after section 711 the following:
15
‘‘SEC. 712. PUBLIC HEALTH EMERGENCIES.
16
‘‘(a) SCARCE AND CRITICAL MATERIALS.—During a
17
public health emergency, any medical equipment or sup-
18
plies determined by the Secretary of Health and Human
19
Services or the Secretary of Homeland Security to be scarce
20
and critical materials essential to the national defense for
21
purposes of section 101 may be deemed by the President
22
to be a scarce and critical material essential to the national
23
defense for purposes of section 101 and otherwise meet the
24
requirements of section 101(b), and funds available to im-
25
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•HR 1166 RH
plement this Act may be used for the purchase, production
1
(including the construction, repair, and retrofitting of gov-
2
ernment-owned facilities as necessary), or distribution of
3
such medical equipment or supplies.
4
‘‘(b) EXERCISE OF TITLE I AUTHORITIES IN RELA-
5
TION TO CONTRACTS BY STATE, LOCAL, OR TRIBAL GOV-
6
ERNMENTS.—In exercising authorities under title I during
7
a public health emergency, the President (and any officer
8
or employee of the United States to which authorities under
9
such title I have been delegated)—
10
‘‘(1) may exercise the prioritization or allocation
11
authority provided in such title I to exclude any ma-
12
terials or supplies described in subsection (a) ordered
13
by a State, local, or Tribal government that are
14
scheduled to be delivered within 15 days of the time
15
at which—
16
‘‘(A) the purchase order or contract by the
17
Federal Government for such materials or sup-
18
plies is made; or
19
‘‘(B) the materials or supplies are otherwise
20
allocated by the Federal Government under the
21
authorities contained in this Act; and
22
‘‘(2) shall, within 24 hours of any exercise of the
23
prioritization or allocation authority provided in
24
such title I—
25
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•HR 1166 RH
‘‘(A) to the extent practicable notify any
1
State, local, or Tribal government if the Presi-
2
dent determines that the exercise of such authori-
3
ties would delay the receipt of such materials or
4
supplies ordered by such government; and
5
‘‘(B) take such steps as may be necessary,
6
and as authorized by law, to ensure that such
7
materials or supplies ordered by such govern-
8
ment are delivered in the shortest possible period,
9
consistent with the purposes of this Act.
10
‘‘(c) ENGAGEMENT WITH THE PRIVATE SECTOR.—
11
‘‘(1) OUTREACH
REPRESENTATIVE.—Consistent
12
with the authorities in this title VII, the Adminis-
13
trator of the Federal Emergency Management Agency,
14
in consultation with the Secretary of Health and
15
Human Services, may designate or appoint, pursuant
16
to section 703, an individual to be known as the ‘Out-
17
reach Representative’ for any public health emer-
18
gency. Such individual shall—
19
‘‘(A) be appointed from among individuals
20
with substantial experience in the production or
21
distribution of medical supplies or equipment;
22
and
23
‘‘(B) act as the Government-wide single
24
point of contact during the public health emer-
25
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•HR 1166 RH
gency for outreach to manufacturing companies
1
and their suppliers who may be interested in
2
producing medical supplies or equipment, in-
3
cluding the materials described under subsection
4
(a).
5
‘‘(2) ENCOURAGING PARTNERSHIPS.—During a
6
public health emergency, the Outreach Representative
7
shall seek to develop partnerships between companies,
8
in coordination with any overall coordinator ap-
9
pointed by the President to oversee the response to the
10
public health emergency, including through the exer-
11
cise of the authorities delegated by the President
12
under section 708.
13
‘‘(d) ENHANCEMENT
OF SUPPLY CHAIN PRODUC-
14
TION.—In exercising authority under title III during a
15
public health emergency with respect to materials described
16
in subsection (a), the President shall seek to ensure that
17
support is provided to companies that comprise the supply
18
chains for reagents, components, raw materials, and other
19
materials and items necessary to produce or use the mate-
20
rials described in subsection (a), if applicable, to the extent
21
necessary for the national defense during the public health
22
emergency.
23
‘‘(e) ENHANCED
REPORTING
DURING
A
PUBLIC
24
HEALTH EMERGENCY.—
25
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•HR 1166 RH
‘‘(1) IN GENERAL.—Not later than 90 days after
1
the use of authorities under this Act with respect to
2
a public health emergency, and every 120 days there-
3
after until the termination of such public health emer-
4
gency, the President, in consultation with the Admin-
5
istrator of the Federal Emergency Management Agen-
6
cy, the Secretary of Defense, and the Secretary of
7
Health and Human Services, shall submit to the ap-
8
propriate congressional committees a report on the ex-
9
ercise of authorities under titles I, III, and VII with
10
respect to the public health emergency.
11
‘‘(2) CONTENTS.—Each report required under
12
paragraph (1) shall include the following:
13
‘‘(A) IN GENERAL.—With respect to each ex-
14
ercise of such authority—
15
‘‘(i) an explanation of the purpose of
16
the applicable contract, purchase order, or
17
other exercise of authority (including an al-
18
location of materials, services, and facilities
19
under section 101(a)(2));
20
‘‘(ii) the cost of such exercise of author-
21
ity; and
22
‘‘(iii) if applicable—
23
‘‘(I) the amount of goods that
24
were purchased or allocated;
25
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•HR 1166 RH
‘‘(II) an identification of the enti-
1
ty awarded a contract or purchase
2
order or that was the subject of the ex-
3
ercise of authority; and
4
‘‘(III) an identification of any en-
5
tity that had shipments delayed by the
6
exercise of any authority under this
7
Act.
8
‘‘(B) CONSULTATIONS.—A description of
9
any consultations conducted with relevant stake-
10
holders on the needs addressed by the exercise of
11
the authorities described in paragraph (1).
12
‘‘(3) UPDATE.—The President shall provide an
13
additional briefing to the appropriate congressional
14
committees on the matters described under paragraph
15
(2) no later than four months after the submission of
16
each report.
17
‘‘(f) DEFINITIONS.—In this section:
18
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
19
TEES.—The term ‘appropriate congressional commit-
20
tees’ means the Committees on Appropriations, Armed
21
Services, Energy and Commerce, Financial Services,
22
and Homeland Security of the House of Representa-
23
tives and the Committees on Appropriations, Armed
24
Services, Banking, Housing, and Urban Affairs,
25
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•HR 1166 RH
Health, Education, Labor, and Pensions, Homeland
1
Security and Governmental Affairs, and Veterans’ Af-
2
fairs of the Senate.
3
‘‘(2) PUBLIC
HEALTH
EMERGENCY.—The term
4
‘public health emergency’ means a public health emer-
5
gency determined pursuant to section 319 of the Pub-
6
lic Health Service Act (42 U.S.C. 247d).
7
‘‘(3) RELEVANT STAKEHOLDER.—The term ‘rel-
8
evant stakeholder’ means—
9
‘‘(A) representative private sector entities;
10
‘‘(B) representatives of the nonprofit sector;
11
‘‘(C) representatives of primary and sec-
12
ondary school systems; and
13
‘‘(D) representatives of organizations rep-
14
resenting workers, including health workers,
15
manufacturers, teachers, other public sector em-
16
ployees, and service sector workers.
17
‘‘(4) STATE.—The term ‘State’ means each of the
18
several States, the District of Columbia, the Common-
19
wealth of Puerto Rico, and any territory or possession
20
of the United States.’’.
21
(c) UPDATE TO FEDERAL REGULATIONS.—
22
(1) DPAS.—Not later than 30 days after the
23
date of enactment of this Act, the Defense Property
24
Accountability System regulations (15 C.F.R. part
25
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•HR 1166 RH
700) shall be revised to reflect the requirements of sec-
1
tion 712(b) of the Defense Production Act of 1950.
2
(2) FAR.—Not later than 30 days after the revi-
3
sions required by paragraph (1) are made, the Fed-
4
eral Acquisition Regulation shall be revised to reflect
5
the requirements of section 712(b) of the Defense Pro-
6
duction Act of 1950, consistent with the revisions
7
made pursuant to paragraph (1).
8
SEC. 3. REPORT ON ACTIVITIES INVOLVING SMALL BUSI-
9
NESS.
10
The report required by section 304(f)(3) of the Defense
11
Production Act of 1950 (50 U.S.C. 4534(f)(3)) with respect
12
to fiscal years 2023 and 2024 shall include the percentage
13
of contracts awarded using funds to carry out the Defense
14
Production Act of 1950 for each of the fiscal years 2023
15
and 2024, respectively, to small business concerns (as de-
16
fined under section 702 of such Act).
17
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Union Calendar No. 436
118TH CONGRESS
2D SESSION
H. R. 1166
[Report No. 118–524]
A BILL
To enhance authorities under the Defense Produc-
tion Act of 1950 to respond to the public health
emergencies, to provide additional oversight of
such authorities, and for other purposes.
MAY 23, 2024
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
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