The ADVERSARIES Act requires the Under Secretary of the Bureau of Industry and Security to conduct a review within 90 days of enactment regarding how U.S.-based affiliates of foreign entities on the Entity List or Military End User List might be acquiring controlled items that their parent companies are restricted from accessing. The review must also assess national security risks posed by foreign adversary exploitation of vulnerabilities in information and communications technology, including whether specific sectors pose undue risk to export control effectiveness. Following the review, officials must submit a report to relevant congressional committees detailing their findings, any planned actions to address identified threats within the next year, and recommendations for changes to U.S. law.
The BIS STRENGTH Act allows the Under Secretary of Commerce for Industry and Security to hire up to 25 outside experts for the Bureau of Industry and Security, bypassing standard civil service hiring rules to fill critical skill gaps. These temporary appointments are limited to a maximum of five years per employee, with total annual compensation capped at the Vice President's salary level. The bill requires the Under Secretary to submit annual reports to congressional committees detailing the expertise gaps identified, the qualifications of hired individuals, and their impact on export control missions. This special hiring authority expires five years after the act is enacted, though existing employees may finish out their appointed terms.
This bill extends from 5 to 10 years the statute of limitations for civil and criminal violations of U.S. export control laws. The bill also specifies that the commencement of an action, suit, or proceeding includes the issuance of a charging letter. (A charging letter is a formal notification by the Department of Commerce's Bureau of Industry and Security that a company or individual is under investigation for an apparent violation of export administration laws or regulations.)
The Biotech Investment National Security Act (BINSA) amends the Defense Production Act to subject biotechnology transactions to federal outbound investment screening, specifically targeting investments and licensing agreements involving Chinese entities. The bill defines the covered biotechnology sector to include pharmaceuticals, biological products, and therapeutic compounds, while explicitly excluding agricultural biotechnology, industrial fermentation unrelated to therapeutics, and basic academic research. It requires the Secretary of the Treasury to issue regulations within one year that prioritize scrutiny of intellectual property licensing, joint ventures, and equity investments that transfer innovation capacity or manufacturing know-how to China. Additionally, the legislation mandates that the Secretary of Defense submit a report to Congress within 60 days assessing whether U.S. capital flows into Chinese biotechnology negatively impact national security.
The Insider Trading Prohibition Act creates a new federal criminal statute that makes it illegal to buy or sell securities while knowingly in possession of material, nonpublic information that was obtained wrongfully. The bill defines wrongful conduct to include actions such as theft, breach of fiduciary duty, or unauthorized access to data, and explicitly covers situations where an individual consciously avoids knowing the details of how the information was acquired. It also prohibits sharing this type of sensitive information if the sender knows it will be used for trading. While the law allows for certain exemptions, including transactions made under pre-existing Rule 10b5-1 plans, it ensures that these new penalties apply in addition to existing legal remedies.
