,,ii #aafth ,,congress #b;d ,session ,s4 #dacj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #a1 #bjbj,mr4 ,cotton 7for himself1 ,mr4 ,schumer1 ,mr4 ,reed1 ,mr4 ,risch1 ,ms4 ,collins1 ,mr4 ,king1 ,mr4 ,hawley1 ,mr4 ,jones1 ,mrs4 ,gillibrand1 ,mr4 ,rubio1 and ,ms4 ,hassan7 introduced the following bill2 which was read twice and referred to the ,committee on ,commerce1 ,science1 and ,transportation ,a ,,bill ,to require the ,secretary of ,commerce to award grants to ,states for the construction of microelectronics manufacturing and advanced research and development facilities1 to authorize the ,secretary of ,defense and the ,director of ,national ,intelligence to fund the construction of microelectronics manufacturing facilities for national security needs1 and to authorize additional amounts for microelectronics research and development1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,american ,foundries ,act of #bjbj4 #b4 ,grants for construction of microelectronics manufacturing and research and development facilities1 and workforce development 7a7 ,grants for ,states with demonstrated interest in constructing microelectronics manufacturing and advanced research and development facilities 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,commerce1 in consultation with the ,secretary of ,defense1 shall commence carrying out a program on the award of grants to ,states described in paragraph 7#b7 to assist in financing the construction1 expansion1 or modernization 7including acquisition of equipment and intellectual property7 of microelectronics fabrication1 assembly1 test1 advanced packaging1 or advanced research and development facilities4 7#b7 ,states described ,a ,state described in this paragraph is a ,state that demonstrates to the ,secretary of ,commerce the following3 7,a7 ,documented interest from a microelectronics company1 that has a demonstrated ability to build and operate microelectronics fabrication1 assembly1 test1 advanced packaging1 or advanced research and development facilities1 in constructing1 expanding1 or modernizing a commercial microelectronics fabrication1 assembly1 test1 advanced packaging1 or advanced research and develop facility1 or documented interest from a public-private consortium that has a demonstrated ability to build and operate an advanced research and development facility in the ,state4 7,b7 ,documented interest from a private entity to provide funding to support the construction1 expansion1 or modernization of the facility that is the subject of the interest documented under subparagraph 7,a74 7,c7 ,commitments from such microelectronics company or consortia to worker and community investment1 including-- 7i7 training and education benefits paid for by the company2 and 7ii7 programs to expand employment opportunity for economically disadvantaged individuals4 7,d7 ,commitments from regional educational and training entities and institutions of higher education to develop curriculum or engage in workforce training1 including programming for training and job placement of economically disadvantaged individuals4 7,e7 ,guaranteed ,state-level economic incentives for the construction1 expansion1 or modernization of the facility described in subparagraph 7,b71 such as site development1 tax incentives1 job-training programs and ,state-level funding for microelectronics research and development4 7#c7 ,limitation on grant amount ,a ,state may not be awarded more than #c1jjj1jjj1jjj under paragraph 7#a74 7#d7 ,use of funds 7,a7 ,in general ,a ,state receiving a grant under paragraph 7#a7 may only use the amount of the grant to finance-- 7i7 the construction1 expansion1 or modernization of a state-of-the-art microelectronics fabrication1 assembly1 test1 advanced packaging1 or advanced research and development facility with respect to which the ,state demonstrated to the ,secretary documented interest under paragraph 7#b71 or for similar uses in state of practice and legacy facilities as deemed necessary by the ,secretary for national security and economic competitiveness2 7ii7 to support workforce development for such facility2 or 7iii7 to support site development for such facility4 7,b7 ,return of funds ,a ,state awarded a grant under paragraph 7#a7 shall return any unused funds to the ,treasury of the ,united ,states on an agreed-upon timeframe determined by the ,secretary prior to issuing the funds4 7,c7 ,recovery of certain funds ,if a microelectronics entity receiving grant funds under this subsection engages in increased levels of joint research and development1 technology licensing or transfer1 or investment involving sensitive technologies with entities under the foreign ownership1 control1 or influence 7,,foci7 of the ,government of the ,people's ,republic of ,china or other foreign adversary during the period of the grant1 as determined by the ,secretary as part of a periodic review of whether a microelectronics entity participating in the program specified in this subsection is under foreign ownership1 control1 or influence1 the ,secretary shall recover the amounts provided by the ,secretary under this subsection4 7#e7 ,prohibition ,if pursuant to the periodic review of foreign ownership1 control1 or influence specified in paragraph 7#d77;,c71 the ,secretary determines that a microelectronics entity is under the foreign ownership1 control1 or influence of the ,government of the ,people's ,republic of ,china or other foreign adversary during the period of the grant1 such entity shall be prohibited from participating in the program specified in this subsection4 7#f7 ,nonrelocation between ,states 7,a7 ,prohibition ,a ,state may not use any amount of a grant awarded under this subsection to induce the relocation or the movement of existing jobs from one ,state to another ,state in competition for those jobs4 7,b7 ,remedies ,in the event that the ,secretary determines an amount of a grant awarded to a ,state under this subsection was used in violation of subparagraph 7,a71 the ,secretary may pursue appropriate enforcement actions1 including-- 7i7 suspension of disbursements of the grant awarded2 and 7ii7 termination of the grant awarded1 which may include the establishment of a debt requiring the recipient of the grant to reimburse the amount of the grant4 7#g7 ,implementation ,the ,secretary shall carry out this section acting through the ,director of the ,national ,institute of ,standards and ,technology4 7#h7 ,reports and notices 7,a7 ,secretary of ,commerce 7i7 ,report on implementation plan ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary shall submit to ,congress a report on the plans of the ,secretary to carry out the program required by paragraph 7#a74 7ii7 ,notice of pending award 7,i7 ,in general ,not later than #cj days before awarding a grant to a ,state under this subsection1 the ,secretary shall submit to ,congress a notice of the intended award4 7,,ii7 ,contents ,each notice submitted under subclause 7,i7 shall include a description of the ,state to which the ,secretary intends to award a grant under this subsection1 the project or projects for which the amount of the grant is intended to be used1 specifics on the planned use of the amounts of the grant for that project1 and the rationale of the ,secretary for awarding the grant4 7,b7 ,comptroller ,general of the ,united ,states 7i7 ,biennial report ,not later than #a year after the date on which the ,secretary of ,commerce submits the report under subparagraph 7,a77i7 and not less frequently than once every #b years thereafter1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the activities carried out under this subsection during the previous year4 7ii7 ,contents ,each report submitted under clause 7i7 shall include1 at a minimum1 assessments of the following3 7,i7 ,how the program is being carried out and how recipients of grants are being selected under the program4 7,,ii7 ,how other ,federal programs are leveraged for manufacturing1 research1 and training to complement the grants awarded to ,states under this subsection4 7,,iii7 ,outcomes of projects supported by grants under this subsection1 including the construction1 expansion1 or modernization of a microelectronics fabrication1 assembly1 test1 advanced packaging1 or advanced research and development facilities1 research and development1 workforce training1 employment1 wages1 and hiring of economically disadvantaged populations4 7#i7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #ae1jjj1jjj1jjj for fiscal year #bjba1 with such amount to remain available for such purpose until ,september #cj1 #bjca4 7b7 ,creation1 expansion1 or modernization of microelectronics manufacturing facilities and capabilities for national security needs 7#a7 ,incentives authorized ,the ,secretary of ,defense and the ,director of ,national ,intelligence1 in consultation with the ,secretary of ,commerce1 may jointly enter into arrangements with private sector entities or consortia thereof to provide incentives for the creation1 expansion1 or modernization of one or more commercially competitive and sustainable microelectronics manufacturing or advanced research and development facilities capable of producing measurably secure and specialized microelectronics for use by the ,department of ,defense1 the intelligence community1 critical infrastructure sectors of the ,united ,states economy1 and other national security applications4 7#b7 ,commercial manufacturing ,a facility constructed1 expanded1 or modernized with an incentive provided under paragraph 7#a7 may-- 7,a7 be principally oriented toward commercial manufacturing2 or 7,b7 devote surplus manufacturing capacity to the production of commercial microelectronics4 7#c7 ,risk mitigation requirements ,a facility constructed1 expanded1 or modernized with an incentive provided under paragraph 7#a71 or the components thereof1 shall-- 7,a7 have the potential to perform fabrication1 assembly1 package1 test1 or advanced research and development functions for classified and export-controlled microelectronics2 7,b7 include management processes to identify and mitigate supply chain security risks2 and 7,c7 be able to produce microelectronics consistent with applicable trusted supply chain and operational security standards established under section #bbd of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbj 7,public ,law #aaf-ib74 7#d7 ,national security requirements ,in the provision of incentives under paragraph 7#a71 the ,secretary of ,defense and the ,director of ,national ,intelligence shall jointly give preference to private sector entities and consortia that-- 7,a7 have participated in previous programs and projects of the ,department of ,defense or the ,office of the ,director of ,national ,intelligence1 including-- 7i7 the ,trusted ,integrated ,circuit program of the ,intelligence ,advanced ,research ,projects ,activity2 7ii7 trusted and assured microelectronics projects1 as administered by the ,department of ,defense2 or 7iii7 the ,electronics ,resurgence ,initiative 7,,eri7 program of the ,defense ,advanced ,research ,projects ,agency2 7,b7 have demonstrated an ongoing commitment to performing contracts for the ,department of ,defense and the intelligence community2 7,c7 are approved by the ,defense ,counterintelligence and ,security ,agency or the ,office of the ,director of ,national ,intelligence as presenting an acceptable security risk1 taking into account supply chain assurance vulnerabilities1 counterintelligence risks1 and any risks presented by companies whose owners are located outside the ,united ,states2 and 7,d7 are evaluated periodically for foreign ownership1 control1 or influence1 consistent with the determinations in paragraphs 7#d77;,c7 and 7#e7 of subsection 7a74 7#e7 ,use of incentives ,incentives may be provided under paragraph 7#a7 for the construction1 expansion1 or modernization of a facility that was constructed1 expanded1 or modernized with funds from a grant awarded under subsection 7a74 7#f7 ,nontraditional defense contractors and commercial entities ,the arrangements entered into under paragraph 7#a7 shall be in the form the ,secretary of ,defense and the ,director of ,national ,intelligence determine to be appropriate to encourage industry participation of nontraditional defense contractors or commercial entities and may include a contract1 a grant1 a cooperative agreement1 a commercial agreement1 the use of other transaction authority under section #bcga of title #aj1 ,united ,states ,code1 or another such arrangement4 7#g7 ,reports 7,a7 ,report by ,secretary of ,defense and ,director of ,national ,intelligence ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of ,defense and the ,director of ,national ,intelligence shall jointly submit to ,congress a report on the plans of the ,secretary and the ,director to provide incentives under paragraph 7#a74 7,b7 ,biennial reports by ,comptroller ,general of the ,united ,states ,not later than #a year after the date on which the ,secretary submits the report required by subparagraph 7,a7 and not less frequently than once every #b years thereafter1 the ,comptroller ,general of the ,united ,states shall submit to ,congress a report on the activities carried out under this subsection4 7#h7 ,authorization of appropriations ,there is authorized to be appropriated to carry out this subsection #e1jjj1jjj1jjj for fiscal year #bjba1 with such amount to remain available for such purpose until ,september #cj1 #bjca4 7c7 ,additional amounts for ensuring the future of ,united ,states leadership in microelectronics 7#a7 ,authorization of appropriations ,there is authorized to be appropriated #b1jjj1jjj1jjj for fiscal year #bjba1 with such amount to remain available until ,september #cj1 #bjca1 to expand the ,electronics ,resurgence ,initiative of the ,defense ,advanced ,research ,projects ,agency to develop advanced disruptive microelectronics technology1 including research and development to enable production at a volume required to sustain a robust domestic microelectronics industry and mitigate parts obsolescence4 7#b7 ,authorization of appropriations ,there is authorized to be appropriated to carry out microelectronics research at the ,national ,science ,foundation #a1ejj1jjj1jjj for fiscal year #bjba1 with such amount to remain available for such purpose until ,september #cj1 #bjca4 7#c7 ,authorization of appropriations ,there is authorized to be appropriated to carry out microelectronics research at the ,department of ,energy #a1bej1jjj1jjj for fiscal year #bjba1 with such amount to remain available for such purpose until ,september #cj1 #bjca4 7#d7 ,authorization of appropriations ,there is authorized to be appropriated to carry out microelectronics research at the ,national ,institute of ,standards and ,technology #bej1jjj1jjj for fiscal year #bjba1 with such amount to remain available for such purpose until ,september #cj1 #bjca4 7#e7 ,supplement1 not supplant ,the amounts authorized to be appropriated under paragraphs 7#a7 through 7#d7 shall supplement and not supplant amounts already appropriated to carry out the purposes described in such paragraphs4 7#f7 ,domestic production requirements ,the heads of executive agencies receiving funding under this section shall develop policies to require domestic production1 to the extent possible1 for any intellectual property resulting from microelectronics research and development conducted as a result of these funds and domestic control requirements to protect any such intellectual property from foreign adversaries4 7#g7 ,sense of congress ,congress supports and encourages efforts by the heads of executive agencies receiving funding under this subsection to co-invest in industry-led microelectronics investment consortiums to increase private capital investment in the domestic microelectronics industry4 7d7 ,national microelectronics research and development plan 7#a7 ,in general ,the ,president shall establish a standing subcommittee of the ,president's ,office of ,science and ,technology's ,national ,science and ,technology ,council for interagency efforts relating to microelectronics policy4 7#b7 ,national microelectronics research plan 7,a7 ,in general ,the subcommittee established under paragraph 7#a7 shall develop a national microelectronics research and development plan to guide and coordinate funding for breakthroughs in next-generation microelectronics research and technology1 strengthen the domestic microelectronics workforce1 and encourage collaboration between government1 industry1 and academia4 7,b7 ,updates ,not less frequently than once each year1 the subcommittee established under paragraph 7#a7 shall update the plan developed under subparagraph 7,a7 of this paragraph4 7e7 ,industry advisory committee ,the ,president shall establish a standing subcommittee of the ,president's ,council of ,advisors on ,science and ,technology to advise the ,united ,states ,government on matters relating to microelectronics policy4 7f7 ,multilateral export control plan ,not later than #ahj days after the date of the enactment of this ,act1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the ,secretary of ,commerce1 in consultation with the ,director of ,national ,intelligence1 the ,secretary of ,homeland ,security1 the ,secretary of ,defense1 and the ,secretary of ,energy1 shall jointly develop and submit to ,congress a plan to coordinate with foreign government partners on establishing common microelectronics export control and foreign direct investment screening measures to align with national and multilateral security priorities4 7g7 ,prohibition ,relating to foreign adversaries ,none of the funds appropriated pursuant to an authorization in this section may be provided to an entity-- 7#a7 under the foreign ownership1 control1 or influence of the ,government of the ,people's ,republic of ,china or the ,chinese ,communist ,party1 or other foreign adversary2 or 7#b7 determined to have beneficial ownership from foreign individuals subject to the jurisdiction1 direction1 or influence of foreign adversaries4 7h7 ,requirements for sourcing from domestic microelectronics design and foundry services 7#a7 ,requirements required ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,defense shall establish requirements1 and a timeline for enforcement of such requirements1 to the extent possible1 for domestic sourcing for microelectronics design and foundry services by programs1 contractors1 subcontractors1 and other recipients of funding from the ,department of ,defense4 7#b7 ,processes for waivers ,the requirements established under paragraph 7#a7 shall include processes to permit waivers for specific contracts or transactions for domestic sourcing requirements based on cost1 availability1 severity of technical and mission requirements1 emergency requirements and operational needs1 other legal or international treaty obligations1 or other factors4 7#c7 ,updates ,not less frequently than once each year1 the ,secretary shall-- 7,a7 update the requirements and timelines established under paragraph 7#a7 and the processes under paragraph 7#b72 and 7,b7 submit to ,congress a report on the updates made under subparagraph 7,a74 7i7 ,definitions ,in this section3 7#a7 ,beneficial owner2 beneficial ownership ,the terms beneficial owner and beneficial ownership have the meanings given such terms in section #hdg of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbj 7,public ,law #aaf-ib74 7#b7 ,entity2 company ,the terms entity and company mean any corporation1 company1 limited liability company1 limited partnership1 business trust1 business association1 or other similar entity4 7#c7 ,foreign ownership1 control1 or influence ,the term foreign ownership1 control1 or influence has the meaning given such term in section #hdg of the ,national ,defense ,authorization ,act for ,fiscal ,year #bjbj 7,public ,law #aaf-ib74 7#d7 ,intelligence community ,in this section1 the term intelligence community has the meaning given such term in section #c of the ,national ,security ,act of #aidg 7#ej ,u4,s4,c4 #cjjc74