[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9102 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9102
To amend title VIII of the Defense Production Act of 1950 to alter the
definitions of ``prohibited technology'' and ``notifiable technology'',
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 2, 2026
Mr. Moolenaar (for himself and Mrs. Dingell) introduced the following
bill; which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend title VIII of the Defense Production Act of 1950 to alter the
definitions of ``prohibited technology'' and ``notifiable technology'',
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 at the ``Biotech Investment National Security
Act of 2026'' or the ``BINSA Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) China has pursued a deliberate, state-directed strategy
to dominate global biotechnology, including pharmaceutical
development, biologics manufacturing, and clinical research and
development capabilities.
(2) United States capital flowing to Chinese biotechnology
companies through licensing agreements, joint ventures, and
equity investments is accelerating China's acquisition of
pharmaceutical intellectual property and clinical development
capabilities in a manner that creates strategic dependency
risks for the United States.
(3) Cross-border out-licensing transactions between United
States and European pharmaceutical companies and Chinese
biotechnology firms totaled approximately $136,000,000,000 in
2025, representing a rapid and accelerating transfer of
pharmaceutical innovation capacity to entities subject to the
direction and control of the People's Republic of China.
(4) Biotechnology, including pharmaceutical development and
biologics manufacturing, has civil-military dual-use
applications and presents strategic dependency risks for the
United States comparable to those presented by semiconductors,
artificial intelligence, and other technologies already covered
under title VIII of the Defense Production Act of 1950.
(5) The BIOSECURE Act, enacted as part of the National
Defense Authorization Act for Fiscal Year 2026, recognized that
biotechnology is both a national security asset and a strategic
vulnerability, and that the People's Republic of China seeks to
dominate biotechnology as an industry of the future.
(6) Consistent application of outbound investment screening
to biotechnology is necessary to prevent United States capital
and intellectual property from accelerating China's dominance
of the pharmaceutical innovation supply chain in a manner that
will create long-term strategic dependency risks analogous to
those the United States now faces in rare earth elements and
semiconductors.
SEC. 3. AMENDMENTS.
Section 809 of the Defense Production Act of 1950 (50 U.S.C. 4589)
is amended--
(1) in paragraph (10)(A), by adding at the end the
following:
``(vi) Biotechnology, meaning the research,
development, manufacturing, or
commercialization of--
``(I) pharmaceutical products
(which has the meaning given the term
`drug' in section 201(g)(1) of the
Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321(g)(1)));
``(II) biological products (as such
term is defined in section 351(i) of
the Public Health Service Act (42
U.S.C. 262(i))); and
``(III) therapeutic compounds,
including drug discovery platforms,
clinical research and development
capabilities, biologics manufacturing,
and intellectual property and know-how
relating to therapeutic compounds,'';
(2) in paragraph (7)(A), by adding at the end the
following:
``(vi) Biotechnology, meaning the research,
development, manufacturing, or
commercialization of--
``(I) pharmaceutical products
(which has the meaning given the term
`drug' in section 201(g)(1) of the
Federal Food, Drug, and Cosmetic Act
(21 U.S.C. 321(g)(1)));
``(II) biological products (as such
term is defined in section 351(i) of
the Public Health Service Act (42
U.S.C. 262(i))); and
``(III) therapeutic compounds,
including drug discovery platforms,
clinical research and development
capabilities, biologics manufacturing,
and intellectual property and know-how
relating to therapeutic compounds,'';
and
(3) in paragraph (4)(A), by adding at the end the
following:
``(ix) licensing a prohibited technology
from a covered foreign person.''.
SEC. 4. RULEMAKING.
(a) In General.--The Secretary of the Treasury shall, not later
than 1 year after the date of the enactment of this Act, issue a rule
to further define the parameters of the area of ``biotechnology'' as it
is used in paragraphs (7)(A) and (10)(A) of the Defense Production Act
of 1950, as amended by this Act.
(b) Requirements.--When defining the parameters of the area of
``biotechnology'' pursuant to subsection (a), the Secretary of the
Treasury shall--
(1) consult with the Secretary of Health and Human
Services, the Secretary of Defense, and the Director of
National Intelligence;
(2) give particular consideration to transactions involving
the licensing of intellectual property, drug discovery
platforms, clinical research and development capabilities, and
biologics manufacturing know-how to covered foreign persons (as
such term is defined in section 809 of the Defense Production
Act of 1950);
(3) give particular consideration to licensing
transactions, joint ventures, and equity investments involving
drug discovery platforms, clinical development capabilities,
and biologics manufacturing as priority categories for both the
prohibited and notifiable technology tiers within the
biotechnology sector;
(4) consider the degree to which a transaction would
transfer pharmaceutical innovation capacity, clinical
development capabilities, or manufacturing know-how to entities
subject to the direction or control of the People's Republic of
China;
(5) define the biotechnology sector to include the
research, development, manufacturing, and commercialization of
pharmaceutical products, biological products, and therapeutic
compounds, including drug discovery platforms, clinical
research and development capabilities, biologics manufacturing,
and related intellectual property and know-how transfers; and
(6) not define the biotechnology sector in a manner that
includes or could be construed to include agricultural
biotechnology, industrial fermentation unrelated to
pharmaceutical or therapeutic production, or basic academic
research with no direct pharmaceutical or therapeutic
application.
SEC. 5. REPORT REQUIRED.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Defense shall submit a report
to the appropriate congressional committees assessing whether flows of
United States capital into China's biotechnology sector, including
through licensing transactions with Chinese biotechnology firms,
negatively affect United States national security and military
readiness.
(b) Form.--The report described in subsection (a) shall be
submitted in unclassified form but may include a classified annex.
(c) Appropriate Congressional Committees Defined.--The term
``appropriate congressional committees'' means--
(1) the Committee on Armed Services of the House of
Representatives;
(2) the Committee on Financial Services of the House of
Representatives;
(3) the Permanent Select Committee on Intelligence of the
House of Representatives;
(4) the Select Committee on the Strategic Competition
between the United States and the Chinese Communist Party of
the House of Representatives;
(5) the Committee on Armed Services of the Senate;
(6) the Committee on Banking, Housing, and Urban Affairs of
the Senate; and
(7) the Select Committee on Intelligence of the Senate.
<all>