What This Bill Does
This bill changes the Defense Production Act of 1950 to allow the government to ensure there is enough supply of medical materials (like drugs, devices, and vaccines) that are important for national defense. The bill requires the President to create a plan to secure and protect the supply chains (the networks that get products to people) for these medical materials.
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Who It Affects
Companies organized under U.S. law that produce medical materials, drugs, devices, vaccines, or parts needed for medical supply chains.
The President and these departments: Health and Human Services, Commerce, Homeland Security, and Defense.
Congress members on certain financial and banking committees.
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Key Provisions
- The President must create a detailed strategy within 180 days to ensure medical materials essential to national defense are available, which includes a plan to address supply chain weaknesses and diversify where materials come from (Sec. 2(c)).
- The President must submit yearly progress reports to Congress until September 30, 2027, about how the strategy is being carried out, with the option to update the strategy as needed (Sec. 2(c)).
- The President can give payments to eligible companies to increase the security of supply chains if the President certifies (formally confirms) to Congress at least 30 days ahead that the payment is critical for national defense (Sec. 3).
- The President must write regulations within 90 days defining what "supply chain" and "supply chain activities" mean for purposes of this law (Sec. 3).
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What Changes
The government gets new authority to use the Defense Production Act to protect medical material supply chains. Companies can now receive government payments to improve supply chain security if national defense requires it. The President must develop and report on a strategy to reduce risks that foreign governments could control important parts of America's medical supply chains.
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Important Definitions
The bill defines "medical materials" to include drugs, devices, and biological products (products made from living organisms) used to diagnose, cure, lessen, treat, or prevent disease that are essential to national defense.
"Supply chain" and "supply chain activities" are to be defined by the President through regulations. Not specified in bill text how these terms will be defined specifically.
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Effective Date
Not specified in bill text
IB
Union Calendar No. 435
118TH CONGRESS
2D SESSION
H. R. 555
[Report No. 118–523]
To amend the Defense Production Act of 1950 to ensure the supply of
certain medical materials essential to national defense, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 2023
Mr. HILL (for himself and Mr. VARGAS) introduced the following bill; which
was referred to the Committee on Financial Services
MAY 23, 2024
Additional sponsors: Mr. LAWLER and Mr. CARSON
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 January 26, 2023]
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•HR 555 RH
A BILL
To amend the Defense Production Act of 1950 to ensure
the supply of certain medical materials essential to na-
tional defense, and for other purposes.
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•HR 555 RH
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Securing America’s Vac-
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cines for Emergencies Act of 2023’’ or the ‘‘SAVE Act of
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2023’’.
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SEC. 2. SECURING ESSENTIAL MEDICAL MATERIALS.
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(a) STATEMENT OF POLICY.—Section 2(b) of the De-
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fense Production Act of 1950 (50 U.S.C. 4502) is amend-
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ed—
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(1) by redesignating paragraphs (3) through (8)
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as paragraphs (4) through (9), respectively; and
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(2) by inserting after paragraph (2) the fol-
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lowing:
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‘‘(3) authorities under this Act should be used
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when appropriate to ensure the availability of med-
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ical materials essential to national defense, including
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through measures designed to secure the drug supply
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chain, and taking into consideration the importance
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of United States competitiveness, scientific leadership
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and cooperation, and innovative capacity;’’.
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(b) STRENGTHENING DOMESTIC CAPABILITY.—Section
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107 of the Defense Production Act of 1950 (50 U.S.C. 4517)
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is amended—
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•HR 555 RH
(1) in subsection (a), by inserting ‘‘(including
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medical materials)’’ after ‘‘materials’’; and
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(2) in subsection (b)(1), by inserting ‘‘(including
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medical materials such as drugs (as defined under the
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Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301
5
et seq.)), devices, and biological products (as that
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term is defined in section 351 of the Public Health
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Service Act (42 U.S.C. 262)) to diagnose, cure, miti-
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gate, treat, or prevent disease that are essential to na-
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tional defense)’’ after ‘‘essential materials’’.
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(c) STRATEGY ON SECURING SUPPLY CHAINS FOR
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MEDICAL MATERIALS.—Title I of the Defense Production
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Act of 1950 (50 U.S.C. 4511 et seq.) is amended by adding
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at the end the following:
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‘‘SEC. 109. STRATEGY ON SECURING SUPPLY CHAINS FOR
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MEDICAL MATERIALS.
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‘‘(a) IN GENERAL.—Not later than 180 days after the
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date of the enactment of this section, the President, in con-
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sultation with the Secretary of Health and Human Serv-
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ices, the Secretary of Commerce, the Secretary of Homeland
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Security, and the Secretary of Defense, shall transmit a
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strategy to the appropriate Members of Congress that in-
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cludes the following:
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‘‘(1) A detailed plan to use the authorities under
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this title and title III, or any other provision of law,
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•HR 555 RH
to ensure the supply of medical materials (including
1
drugs (as defined under the Federal Food, Drug, and
2
Cosmetic Act (21 U.S.C. 301 et seq.)), devices, and bi-
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ological products (as that term is defined in section
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351 of the Public Health Service Act (42 U.S.C. 262))
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to diagnose, cure, mitigate, treat, or prevent disease)
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essential to national defense, to the extent necessary
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for the purposes of this Act.
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‘‘(2) An analysis of vulnerabilities to existing
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supply chains for such medical materials, and rec-
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ommendations to address the vulnerabilities.
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‘‘(3) Measures to be undertaken by the President
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to diversify such supply chains, as appropriate and
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as required for national defense.
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‘‘(4) A discussion of—
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‘‘(A) any significant effects resulting from
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the plan and measures described in this sub-
17
section on the production, cost, or distribution of
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biological products or any other devices or drugs;
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‘‘(B) a timeline to ensure that essential
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components of the supply chain for medical ma-
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terials are not under the exclusive control of a
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foreign government in a manner that the Presi-
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dent determines could threaten the national de-
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fense of the United States; and
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•HR 555 RH
‘‘(C) efforts to mitigate any risks resulting
1
from the plan and measures described in this
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subsection to United States competitiveness, sci-
3
entific leadership, and innovative capacity, in-
4
cluding efforts to cooperate and proactively en-
5
gage with United States allies.
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‘‘(b) PROGRESS REPORT.—Following submission of
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the strategy under subsection (a), the President shall submit
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to the appropriate Members of Congress an annual progress
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report until September 30, 2027, evaluating the implemen-
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tation of the strategy, and may include updates to the strat-
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egy as appropriate. The strategy and progress reports shall
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be submitted in unclassified form but may contain a classi-
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fied annex.
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‘‘(c) APPROPRIATE MEMBERS OF CONGRESS.—In this
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section, the term ‘appropriate Members of Congress’ means
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the Speaker, majority leader, and minority leader of the
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House of Representatives, the majority leader and minority
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leader of the Senate, the Chairman and Ranking Member
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of the Committee on Financial Services of the House of Rep-
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resentatives, and the Chairman and Ranking Member of the
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Committee on Banking, Housing, and Urban Affairs of the
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Senate.’’.
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•HR 555 RH
SEC. 3. INVESTMENT IN SUPPLY CHAIN SECURITY.
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(a) IN GENERAL.—Section 303 of the Defense Produc-
2
tion Act of 1950 (50 U.S.C. 4533) is amended by adding
3
at the end the following:
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‘‘(h) INVESTMENT IN SUPPLY CHAIN SECURITY.—
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‘‘(1) IN GENERAL.—In addition to other authori-
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ties in this title, the President may make available to
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an eligible entity described in paragraph (2) pay-
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ments to increase the security of supply chains and
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supply chain activities, if the President certifies to
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Congress not less than 30 days before making such a
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payment that the payment is critical to meet national
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defense requirements of the United States.
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‘‘(2) ELIGIBLE ENTITY.—An eligible entity de-
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scribed in this paragraph is an entity that—
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‘‘(A) is organized under the laws of the
16
United States or any jurisdiction within the
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United States; and
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‘‘(B) produces—
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‘‘(i) one or more critical components;
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‘‘(ii) critical technology; or
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‘‘(iii) one or more products or raw ma-
22
terials for the security of supply chains or
23
supply chain activities.
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‘‘(3) DEFINITIONS.—In this subsection, the terms
25
‘supply chain’ and ‘supply chain activities’ have the
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•HR 555 RH
meanings given those terms by the President by regu-
1
lation.’’.
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(b) REGULATIONS.—
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(1) IN GENERAL.—Not later than 90 days after
4
the date of the enactment of this Act, the President
5
shall prescribe regulations setting forth definitions for
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the terms ‘‘supply chain’’ and ‘‘supply chain activi-
7
ties’’ for the purposes of section 303(h) of the Defense
8
Production Act of 1950 (50 U.S.C. 4533(h)), as added
9
by subsection (a).
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(2) SCOPE OF DEFINITIONS.—The definitions re-
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quired by paragraph (1)—
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(A) shall encompass—
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(i) the organizations, people, activities,
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information, and resources involved in the
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delivery and operation of a product or serv-
16
ice used by the Government; or
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(ii) critical infrastructure as defined
18
in Presidential Policy Directive 21 (Feb-
19
ruary 12, 2013; relating to critical infra-
20
structure security and resilience); and
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(B) may include variations as determined
22
necessary and appropriate by the President for
23
purposes of national defense.
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Union Calendar No. 435
118TH CONGRESS
2D SESSION
H. R. 555
[Report No. 118–523]
A BILL
To amend the Defense Production Act of 1950 to
ensure the supply of certain medical materials es-
sential to national defense, and for other pur-
poses.
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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