S.Amdt. 1022

SA 1022. 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 Department of Defense 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;
(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; or
(C) provides funding for research to any entity that uses
covered biotechnology equipment or services acquired after
the date of enactment of this Act.
(b) Prohibition on Loan and Grant Funds.--The Department of
Defense 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 Secretary of Defense; and
(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 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 Secretary of
Defense submits to the appropriate congressional committees a
notification of such waiver.
(2) Overseas health care services.--The Secretary of
Defense 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 if the Secretary--
(A) determines that the waiver is--
(i) necessary to support the mission or activities of the
employees of Department of Defense described in subsection
(e)(2)(A); and
(ii) in the interest of the United States; and
(B) 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;

[[Page S3535]]

(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 Secretary of Defense 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
Secretary of Defense shall revise all defense acquisition
guidance and systems 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 of the Senate; and
(B) the Committee on Armed Services 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) 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.
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