H.R. 9102

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9102 Introduced in House (IH)]

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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.
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