[Congressional Record Volume 169, Number 128 (Tuesday, July 25, 2023)]
[Senate]
[Pages S3533-S3534]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1021. Mr. HAGERTY submitted an amendment intended to be proposed 
by him to the bill S. 2226, to authorize appropriations for fiscal year 
2024 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place in title VIII, insert the 
     following:

     SEC. __. PROHIBITION ON CONTRACTING WITH CERTAIN 
                   BIOTECHNOLOGY PROVIDERS.

       (a) In General.--The head of an executive agency may not--
       (1) procure or obtain or extend or renew a contract to 
     procure or obtain any covered biotechnology equipment or 
     service; or
       (2) enter into a contract or extend or renew a contract 
     with any entity that--
       (A) uses covered biotechnology equipment or services 
     acquired after the date of the enactment of this Act; or
       (B) enters into any contract the performance of which such 
     entity knows or has reason to believe will require the direct 
     use of covered biotechnology equipment or services.
       (b) Prohibition on Loan and Grant Funds.--The head of an 
     executive agency may not obligate or expend loan or grant 
     funds to--
       (1) procure or obtain or extend or renew a contract to 
     procure or obtain any covered biotechnology equipment or 
     service; or
       (2) enter into a contract or extend or renew a contract 
     with an entity described in subsection (a)(2).
       (c) Effective Date.--The prohibitions under subsections (a) 
     and (b) shall take effect 180 days after the date of the 
     enactment of this Act.
       (d) Waiver Authorities.--
       (1) Specific biotechnology exception.--
       (A) Waiver.--The head of an executive agency may waive the 
     prohibition under subsections (a) and (b) on a case-by-case 
     basis--
       (i) with the approval of the Director of the Office of 
     Management and Budget, in consultation with the Federal 
     Acquisition Security Council and the Secretary of Defense; 
     and

[[Page S3534]]

       (ii) if such head submits a notification and justification 
     to the appropriate congressional committees not later than 30 
     days after granting such waiver.
       (B) Duration.--
       (i) In general.--Except as provided in clause (ii), a 
     waiver granted under subparagraph (A) shall last for a period 
     of not more than 180 days.
       (ii) Extension.--The Director of the Office of Management 
     and Budget, in consultation with the Federal Acquisition 
     Security Council and the Secretary of Defense, may extend a 
     waiver granted under subparagraph (A) one time, for a period 
     up to 180 days after the date on which the waiver would 
     otherwise expire, if such an extension is in the national 
     security interests of the United States and the Director 
     submits to the appropriate congressional committees a 
     notification of such waiver.
       (2) Overseas health care services.--The head of an 
     executive agency may waive the prohibitions under subsections 
     (a) and (b) with respect to a contract, subcontract, or 
     transaction for the acquisition or provision of health care 
     services overseas on a case-by-case basis--
       (A) if the head of such executive agency determines that 
     the waiver is--
       (i) necessary to support the mission or activities of the 
     employees of such executive agency described in subsection 
     (e)(2)(A); and
       (ii) in the interest of the United States;
       (B) with the approval of the Director of the Office of 
     Management and Budget, in consultation with the Federal 
     Security Acquisition Council and the Secretary of Defense; 
     and
       (C) if such head submits a notification and justification 
     to the appropriate congressional committees not later than 30 
     days after granting such waiver.
       (e) Exceptions.--The prohibitions under subsections (a) and 
     (b) shall not apply to--
       (1) any activity subject to the reporting requirements 
     under title V of the National Security Act of 1947 (50 U.S.C. 
     3091 et seq.) or any authorized intelligence activities of 
     the United States;
       (2) the acquisition or provision of health care services 
     overseas for--
       (A) employees of the United States, including members of 
     the uniformed services (as defined in section 101(a) of title 
     10, United States Code), whose official duty stations are 
     located overseas; or
       (B) employees of contractors or subcontractors of the 
     United States--
       (i) who are performing under a contract that directly 
     supports the missions or activities of individuals described 
     in subparagraph (A); and
       (ii) whose primary duty stations are located overseas; or
       (3) the acquisition, use, or distribution of genetic 
     sequencing data, however complied, that is commercially 
     available.
       (f) Evaluation of Certain Biotechnology Entities.--Not 
     later than 90 days after the date of the enactment of this 
     Act, the Secretary of Defense shall determine whether Wuxi 
     AppTec, AxBio, and any subsidiary, affiliate, or successor of 
     such entities, or any other entity headquartered in or 
     organized under the laws of the People's Republic of China, 
     are a biotechnology company of concern.
       (g) Regulations.--
       (1) Guidance.--Not later than 180 days after the date of 
     the enactment of this Act, the Director of the Office of 
     Management and Budget, in coordination with the Federal 
     Acquisition Security Council, the Federal Acquisition 
     Regulatory Council, the Secretary of Defense, and other heads 
     of Executive agencies as determined appropriate by the 
     Director of the Office of Management and Budget, shall 
     establish guidance, as necessary, to implement the 
     requirements of this section.
       (2) Federal acquisition regulation.--Not later than 270 
     days after the date of the enactment of this Act, the Federal 
     Acquisition Regulatory Council shall revise the Federal 
     Acquisition Regulation as necessary to implement the 
     requirements of this section.
       (h) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Armed Services, the Committee on 
     Foreign Relations, and the Committee on Homeland Security and 
     Governmental Affairs of the Senate; and
       (B) the Committee on Armed Services, the Committee on 
     Foreign Affairs, and the Committee on Oversight and 
     Accountability of the House of Representatives.
       (2) Biotechnology company of concern.--The term 
     ``biotechnology company of concern'' means--
       (A) the BGI Group, MGI Group, or Complete Genomics, or any 
     subsidiary, parent, affiliate, or successor of such entities; 
     and
       (B) any other entity that the Secretary of Defense deems to 
     pose a national security risk to the United States.
       (3) Biotechnology equipment or service.--The term 
     ``biotechnology equipment or service'' means--
       (A) any instrument, apparatus, machine, or device, 
     including components and accessories thereof, that is 
     designed for use in the research, development, production, or 
     analysis of biological materials as well as any software, 
     firmware, or other digital components that are specifically 
     designed for use in, and necessary for the operation of, such 
     an instrument, apparatus, machine, or device;
       (B) any service for the research, development, production, 
     analysis, detection, or provision of information related to 
     biological materials, including--
       (i) advising, consulting, or support services provided by a 
     biotechnology company of concern with respect to the use or 
     implementation of a instrument, apparatus, machine, or device 
     described in subparagraph (A); and
       (ii) disease detection, genealogical information, and 
     related services; and
       (C) any other service, instrument, apparatus, machine, 
     component, accessory, device, software, or firmware that the 
     Federal Acquisition Security Council, in coordination with 
     the Secretary of Defense and such other heads of Executive 
     agencies (as determined by the Federal Acquisition Security 
     Council), determines appropriate.
       (4) Covered biotechnology equipment or service.--The term 
     ``covered biotechnology equipment or service'' means a 
     biotechnology equipment or service produced or provided by a 
     biotechnology company of concern.
       (5) Executive agency.--The term ``Executive agency'' has 
     the meaning given such term in section 105 of title 5, United 
     States Code.
       (6) Overseas.--The term ``overseas'' means any area outside 
     of the United States, the Commonwealth of Puerto Rico, or a 
     territory or possession of the United States.
                                 ______