Bill Summary
The Pandemic Response and Interstate Cost Equity Act, also known as the PRICE Act, is a bill that aims to address the issue of inflated prices for medical equipment during emergencies. It authorizes the Federal Emergency Management Agency (FEMA) to become the sole owner and distributor of certain medical equipment in the event of a covered emergency, where the market price is more than 15% higher than the fair market price. This Act also establishes a Joint Congressional Committee on Defense Production to oversee the programs authorized by the Act. The Administrator of FEMA, in consultation with other federal agencies, will assess the available medical equipment and create contracts with manufacturers to produce the needed equipment. The Administrator will then distribute the equipment to states and individuals based on need, and any remaining supplies will be added to the Strategic National Stockpile. The Act also requires the Administrator to submit biweekly reports to Congress on the progress and distribution of the medical equipment. The Act is funded through the Defense Production Act Fund and includes definitions for key terms such as "covered emergency" and "medical equipment."
Possible Impacts
1. This legislation could affect individuals by giving the Federal Emergency Management Agency (FEMA) the authority to become the sole owner and distributor of certain medical equipment during a covered emergency. This could potentially limit access to medical equipment for individuals who need it, as FEMA would be in control of all distribution.
2. The establishment of a Joint Congressional Committee on Defense Production could affect people by providing oversight and recommendations for the programs authorized by this Act. This could potentially result in better allocation of resources and more effective response to public health emergencies, but it could also lead to delays or bureaucracy in decision-making.
3. The requirement for the Administrator to submit biweekly reports to Congress could affect people by increasing transparency and accountability in the use of funds and distribution of medical equipment. This could potentially improve public trust and confidence in the government's handling of emergencies.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3858 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3858
To authorize the Administrator of the Federal Emergency Management
Agency to become the sole owner and distributer of certain medical
equipment in the event of a covered emergency; to establish a Joint
Congressional Committee on Defense Production; and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 1, 2020
Ms. Warren introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To authorize the Administrator of the Federal Emergency Management
Agency to become the sole owner and distributer of certain medical
equipment in the event of a covered emergency; to establish a Joint
Congressional Committee on Defense Production; 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 ``Pandemic Response and Interstate
Cost Equity Act'' or the ``PRICE Act''.
SEC. 2. ADMINISTRATOR AS OWNER AND DISTRIBUTER OF CERTAIN MEDICAL
EQUIPMENT.
(a) In General.--In the event of a covered emergency, the
Administrator shall become the sole owner and distributer of medical
equipment obtained by the Federal government pursuant to this Act for
which the prevailing market price exceeds the fair market price by more
than 15 percent and is required to address the covered emergency.
(b) Assessment of Medical Equipment.--To carry out subsection (a),
the Secretary of Health and Human Services, in consultation with the
Administrator and other Federal agencies or departments as considered
necessary, shall conduct an assessment of available medical equipment,
including--
(1) identifying the medical equipment required to address
the covered emergency for which the prevailing market price
exceeds the fair market price by more than 15 percent;
(2) assessing the amount of such medical equipment
available to respond to the covered emergency, including the
amount of such medical equipment available in the Strategic
National Stockpile; and
(3) determining the amount of such medical equipment still
needed to respond to the covered emergency.
(c) Contract To Produce Medical Equipment.--Following the
assessment under subsection (b), the Administrator, in consultation
with the Secretary of Health and Human Services and the Secretary of
Defense, shall--
(1) create and execute an indefinite delivery-indefinite
quantity contract with all persons capable of producing such
medical equipment to--
(A) respond to the covered emergency; and
(B) following the covered emergency, replenish the
Strategic National Stockpile to a level acceptable to
respond to a future public health emergency or other
covered emergency;
(2) require that all contracts created and executed under
this section supersede any existing contracts such persons have
already created or executed; and
(3) establish a price for such medical equipment to be
resold to the States or other persons.
(d) Sale or Distribution of Certain Medical Equipment.--The
Administrator shall sell or otherwise distribute medical equipment to
the States or to persons that request such medical equipment, giving
consideration to--
(1) requests for medical equipment under subsections (e)
and (f);
(2) the continuity of operations of the Federal government;
and
(3) consultation with public health officials, as may be
necessary.
(e) State Request for Medical Equipment.--To request an allocation
of medical equipment, a State shall submit to the Administrator a
request for medical equipment, including--
(1) the number of impacted individuals in each State,
disaggregated by condition and the severity of such condition--
(A) on the date the request is submitted to the
Administrator;
(B) as projected at 14 days from the date the
request is submitted to the Administrator; and
(C) as projected at 60 days from the date the
request is submitted to the Administrator;
(2) existing health system medical equipment;
(3) medical equipment possessed by the State;
(4) an estimate of the quantity of medical equipment
required to diagnose and treat the condition for which the
covered emergency is in effect; and
(5) any additional information as determined necessary by
the Administrator.
(f) Other Requests for Medical Equipment.--The Administrator shall
establish a process under which a person may request medical equipment
to respond to the covered emergency.
(g) Post-Emergency Distribution of Medical Equipment.--Upon the
termination of the covered emergency, the Administrator shall
distribute any medical supplies not sold or otherwise distributed to
the States or any person to the Strategic National Stockpile.
SEC. 3. REPORTS TO THE CONGRESS.
(a) Biweekly Report.--
(1) In general.--Not less than 14 days after the date a
covered emergency is in effect, and not less than every 14 days
thereafter until the date that is 30 days after the date on
which the covered emergency is terminated, the Administrator
shall submit to the Congress a report on the activities carried
out under this Act.
(2) Content.--The report required under paragraph (1) shall
include--
(A) information on the number of impacted
individuals, disaggregated by State, condition, and
severity of such condition--
(i) on the date the report is submitted to
the Congress;
(ii) as projected at 14 days from the date
the report is submitted to the Congress; and
(iii) as projected at 60 days from the date
the report is submitted to the Congress;
(B) the amount of medical equipment still needed to
diagnose and treat the condition for which the covered
emergency is in effect, disaggregated by State;
(C) requests submitted by the States or by persons
under section 2;
(D) information on the contracts created and
executed under section 2;
(E) the amount of medical equipment resold or
distributed by the Federal Government, including the
allocation and projected allocation of government and
existing health system medical equipment, disaggregated
by State--
(i) on the date the report is submitted to
the Congress;
(ii) as projected at 14 days from the date
the report is submitted to the Congress; and
(iii) as projected at 60 days from the date
the report is submitted to the Congress; and
(F) other Federal contracts for medical equipment
entered into outside of section 2.
(b) Final Report.--
(1) In general.--Not later than 60 days after the
termination of the covered emergency, the Administrator shall
submit to the Congress a report on the activities carried out
under this Act.
(2) Content.--The report required under paragraph (1) shall
include--
(A) the content from the biweekly reports submitted
to the Congress under subsection (a);
(B) the current status of the Strategic National
Stockpile, including the inventory of medical equipment
and the projected quantity of medical equipment
required to mitigate a future public health emergency
or other covered emergency; and
(C) an assessment of actions that Federal, State,
and local governments should take to build resiliency
to prevent, detect, treat, and mitigate a public health
emergency or other covered emergency.
SEC. 4. FUNDING.
Amounts available in the Defense Production Act Fund under section
304 of the Defense Production Act of 1950 (50 U.S.C. 4534) may be made
available for purchases made under this section.
SEC. 5. ESTABLISHMENT OF JOINT CONGRESSIONAL COMMITTEE.
(a) Establishment and Membership.--
(1) In general.--There is established a Joint Committee on
Defense Production (referred to in this section as the
``Committee''), to be composed of--
(A) five members of the Committee on Financial
Services of the House of Representatives, with three
members from the majority party and two from the
minority party, to be appointed by the chairman of the
Committee on Financial Services; and
(B) five members of the Committee on Banking,
Housing, and Urban Affairs of the Senate, with three
members from the majority party and two from the
minority party, to be appointed by the chairman of the
Committee on Banking, Housing, and Urban Affairs.
(2) Chairman and vice chairman.--The Committee shall elect
a chairman and a vice chairman from among its members, one of
whom shall be a member of the House of Representatives and the
other a member of the Senate.
(3) Vacancy.--A vacancy in the membership of the Committee
shall be filled in the same manner as the original selection.
(b) Powers.--The Committee, or any duly authorized subcommittee
thereof, is authorized to hold such hearings, to sit and act at such
times and such places, to require by subpoena (to be issued under the
signature of the chairman or vice chairman of the Committee) or
otherwise the attendance of such witnesses and the production of such
books, papers, and documents, to administer such oaths, to take such
testimony, to procure such printing and binding, and to make such
expenditures as it considers advisable.
(c) Duties.--The Committee shall be responsible for the continuous
study of the programs authorized by this Act, and to review the
progress achieved in the execution and administration of such programs.
Upon request, the Committee shall aid the standing committees of the
Congress having legislative jurisdiction over any part of the programs
authorized by this Act; and it shall make a report to the House of
Representatives and the Senate, from time to time, concerning the
results of its studies, together with such recommendations as it may
consider desirable.
(d) Information From Federal Agencies and Departments.--Any
department, official, or agency administering any of such programs
shall, at the request of the Committee, consult with the Committee,
from time to time, with respect to their activities under this Act.
(e) Expenses.--The expenses of the Committee, which shall not
exceed $750,000 in any fiscal year, shall be paid one-half from the
contingent fund of the House of Representatives and one-half from the
contingent fund of the Senate upon vouchers signed by the chairman or
vice chairman.
SEC. 6. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Federal Emergency Management Agency.
(2) Covered emergency.--The term ``covered emergency''
means a national emergency in which the President has declared
a national emergency and determined that--
(A) a disease or disorder presents an emergency
that affects the United States; or
(B) a public health emergency exists, including a
significant outbreak of an infectious disease or a
bioterrorist attack.
(3) Existing health system medical equipment.--The term
``existing health system medical equipment'' means medical
equipment owned by a hospital.
(4) Fair market price.--The term ``fair market price''
means the average market price of medical equipment from the
preceding calendar year.
(5) Hospital.--The term ``hospital'' has the meaning given
the term under section 1861(e) of the Social Security Act (42
U.S.C. 1395x(e)).
(6) Impacted individuals.--The term ``impacted
individuals'' means an individual--
(A) diagnosed with a condition for which the public
health emergency has been issued;
(B) that is experiencing symptoms consistent with
the condition for which the covered emergency has been
issued and is seeking a medical diagnosis;
(C) that has been identified as having been exposed
to a bioterrorist attack; or
(D) otherwise meets criteria determined by the
Administrator during the covered emergency period.
(7) Indefinite delivery-indefinite quantity contract.--The
term ``indefinite delivery-indefinite quantity contract'' means
a contract to provide for an indefinite quantity of materials
or services for a fixed time.
(8) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
(9) Medical equipment.--The term ``medical equipment''
means--
(A) N95 respirators;
(B) medical ventilators;
(C) face shields;
(D) medical exam gloves;
(E) surgical gowns;
(F) diagnostic tests; and
(G) such other medical equipment as the
Administrator determines to be necessary.
(10) National emergency.--The term ``national emergency''
means a national emergency declared by the President under the
National Emergencies Act (50 U.S.C. 1601 et seq.).
(11) Operations of the federal government.--The term
``operations of the Federal government'' means--
(A) the activities and operations of any Federal
department or agency that is substantially concerned
with the operations or activities required to respond
to a public health emergency; and
(B) the activities and operations of the armed
forces.
(12) Person.--The term ``person'' has the meaning given
such term in section 702 of the Defense Production Act of 1950
(50 U.S.C. 4552).
(13) Prevailing market price.--The term ``prevailing market
price'' means the average market price of medical equipment
during the prior 30 days, as determined by the Secretary of
Health and Human Services.
(14) Public health emergency.--The term ``public health
emergency'' means a public health emergency declared under
section 319 of the Public Health Service Act (42 U.S.C. 247d).
(15) State.--The term ``State'' means each of the 50 States
and the District of Columbia, each of the territories, and
Indian tribes.
(16) Strategic national stockpile.--The term ``Strategic
National Stockpile'' means the stockpile established under
section 319F-2 of the Public Health Service Act (42 U.S.C.
247d-6b).
(17) Territory.--The term ``territory'' means the United
States Virgin Islands, Puerto Rico, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands.
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