,i #aaith ,,congress #ast ,session ,h4 ,r4 #ehhe ,,in ,,the ,,house ,,of ,,representatives ,october #ca1 #bjbe,mr4 ,moolenaar 7for himself and ,mr4 ,krishnamoorthi7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs ,a ,,bill ,to require entities seeking a license to export advanced artificial intelligence chips to countries of concern to certify that ,united ,states persons have priority in acquiring those chips4 #a4 ,short title ,this ,act may be cited as the ,guaranteeing ,access and ,innovation for ,national ,artificial ,intelligence ,act of #bjbe or the ,,gain ,,ai ,act of #bjbe4 #b4 ,prohibition on prioritizing countries of concern over united states persons for exports of advanced integrated circuits ,part ,i of the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhaa et seq47 is amended by inserting after section #ageh the following new section3 #ageh;,a4 ,control of exports of certain advanced integrated circuits 7a7 ,license requirement ,the ,under ,secretary of ,commerce for ,industry and ,security shall require a license for the export1 reexport1 or in-country transfer of a covered advanced circuit or product to an entity located or headquartered in1 or whose ultimate parent company is headquartered in1 a country of concern4 7b7 ,certification of priority for ,united ,states customers for certain advanced integrated circuits 7#a7 ,certification requirement ,the ,under ,secretary of ,commerce for ,industry and ,security shall require a person submitting an application for a license under subsection 7a7 to certify in the application that such person provided a right of first refusal to ,united ,states persons4 7#b7 ,denial of applications without certification ,such ,under ,secretary shall deny each application for a license under subsection 7a7 that does not include a certification described in paragraph 7#a74 7#c7 ,implementation ,not later than #abj days after the date of the enactment of this section1 such ,under ,secretary shall consult with the public and prescribe regulations providing guidance1 based on such consultation1 for complying with the certification requirement under paragraph 7#a71 which shall include-- 7,a7 information that the person submitting an application for a license under subsection 7a7 is required to make available about transactions with entities described in subsection 7a71 and the form the public notice of such information must take1 to ensure that ,united ,states persons can exercise a right of first refusal under paragraph 7#a72 7,b7 procedures for ,united ,states persons to exercise a right of first refusal under paragraph 7#a71 including-- 7i7 how public notice of the right of first refusal shall be provided2 and 7ii7 guidance on when a ,united ,states person should inform such ,under ,secretary that they are seeking to exercise a right of first refusal2 7,c7 conditions upon which a person submitting an application for a license under subsection 7a7 may proceed with the transaction that such license is required for if a request to exercise a right of first refusal is not made in good faith or completed in the required timeframe2 7,d7 recordkeeping requirements2 7,e7 penalties for misrepresentation and concealment of material facts2 and 7,f7 guidance with respect to determining whether-- 7i7 a ,united ,states person exercising a right of first refusal has taken a material step to complete a transaction within the required timeframe2 and 7ii7 the export1 reexport1 or in-country transfer of a covered advanced circuit or product would create-- 7,i7 backlog of requests from ,united ,states persons for the covered advanced circuit or product with respect to which an application for a license is submitted under subsection 7a7 or a comparable covered advanced circuit or product2 or 7,,ii7 a reduction in the capacity of production lines for the production1 for ,united ,states persons1 of the covered advanced circuit or product with respect to which an application for a license is submitted under subsection 7a7 or a comparable covered advanced circuit or product2 and 7iii7 a person submitting an application for a license under subsection 7a7 provides advantageous pricing or terms for the covered advanced circuit or product with respect to which such application is submitted for to foreign persons that are not provided to ,united ,states persons4 7#d7 ,rule of construction ,in the case of more than one ,united ,states person requesting to exercise a right of first refusal1 nothing in this subsection shall be construed to authorize the ,under ,secretary of ,commerce for ,industry and ,security1 or any other ,federal official1 to allocate1 prioritize1 or otherwise select one ,united ,states person over any other ,united ,states person submitting such a request4 7c7 ,exemption from certain license requirement for trusted united states persons 7#a7 ,in general ,the requirement for a license under sections #gdb4f and #gdd4bc of title #ae1 ,code of ,federal ,regulations shall not apply to the export1 reexport1 or in-country transfer of a covered advanced circuit or product if the covered advanced circuit or product-- 7,a7 is destined for a country that is not a country of concern2 and 7,b7 once in operation1 remains under the ownership and control of a trusted ,united ,states person4 7#b7 ,implementation ,not later than #abj days after the date of the enactment of this section1 the ,under ,secretary of ,commerce for ,industry and ,security shall consult with the public and1 based on such consultation1 prescribe regulations-- 7,a7 establishing the standards and requirements a ,united ,states person is required to meet to obtain a designation as a trusted ,united ,states person1 which shall include-- 7i7 establishment by the ,united ,states person of physical security1 cybersecurity1 and other measures designed to prevent the illicit transfer or diversion of covered circuits and products1 or other violations of ,united ,states export control regulations2 7ii7 a requirement that the ,united ,states person may not transfer or install a majority of its aggregate total processing performance of covered circuits or products outside the ,united ,states2 7iii7 a requirement that not more than #aj percent of the ultimate beneficial ownership of the ,united ,states person may be held1 directly or indirectly1 by any entity that primarily resides1 is domiciled1 or conducts the majority of its business in a country of concern2 and 7iv7 annual audit or attestation requirement to ensure compliance with this subparagraph2 and 7,b7 describing the process by which such ,under ,secretary shall approve such a designation under subparagraph 7,a74 7d7 ,definitions ,in this section3 7#a7 ,advanced integrated circuit 7,a7 ,in general ,subject to subparagraph 7,b71 the term advanced integrated circuit means-- 7i7 an integrated circuit1 computer1 or other product-- 7,i7 classified under ,export ,control ,classification ,number #c;,a#jij or #d;,a#jij or related ,export ,control ,classification ,numbers2 or 7,,ii7 that is functionally equivalent or substantially similar to a circuit1 computer1 or product described in subclause 7,i72 or 7ii7 an integrated circuit that has one or more digital processing units with-- 7,i7 a total processing performance of #d1hjj or more2 7,,ii7 a total processing performance of #b1djj or more and a performance density of #a4f or more2 7,,iii7 a total processing performance of #a1fjj or more and a performance density of #c4b or more2 or 7,,iv7 a total ,,dram bandwidth of #a1djj gigabytes per second or more1 interconnect bandwidth of #a1ajj gigabytes per second or more1 or a sum of ,,dram bandwidth and interconnect bandwidth of #a1gjj gigabytes per second or more4 7,b7 ,authority to update technical parameters ,beginning #bd months after the date of the enactment of this section1 the ,under ,secretary of ,commerce for ,industry and ,security may add new technical parameters for the definition of advanced integrated circuit following publication of such parameters and a notice and comment period in the ,federal ,register4 7#b7 ,commerce control list ,the term ,commerce ,control ,list means the list set forth in ,supplement ,no4 #a to part #ggd of title #ae1 ,code of ,federal ,regulations4 7#c7 ,country of concern ,the term country of concern means-- 7,a7 a country listed in ,country ,group ,d3#e or ,e in ,supplement ,no4 #a to part #gdj of title #ae1 ,code of ,federal ,regulations2 7,b7 the ,macau ,special ,administrative ,region of the ,people's ,republic of ,china2 or 7,c7 the ,hong ,kong ,special ,administrative ,region of the ,people's ,republic of ,china4 7#d7 ,covered advanced circuit or product 7,a7 ,in general ,except as provided by subparagraph 7,b71 the term covered advanced circuit or product means-- 7i7 an advanced integrated circuit2 or 7ii7 a product containing such a circuit4 7,b7 ,exclusion ,the term covered advanced circuit or product does not include an advanced integrated circuit or a product containing such a circuit that is not designed or marketed for data centers4 7#e7 ,performance density2 total processing performance ,the terms performance density and total processing performance have the meanings given those terms in1 and are calculated as provided for under1 ,export ,control ,classification ,number #c;,a#jij in the ,commerce ,control ,list set forth in ,supplement ,no4 #a to part #ggd of title #ae1 ,code of ,federal ,regulations4 7#f7 ,right of first refusal 7,a7 ,in general ,the term right of first refusal means the person applying for a license under subsection 7a7-- 7i7 provides1 through public notice1 not less than a #ae-;day period for ,united ,states persons to inquire about purchasing a covered advanced circuit or product that would otherwise be sold to an entity located or headquartered in1 or whose ultimate parent company is headquartered in1 a country of concern2 7ii7 provides preference to a ,united ,states person submitting an inquiry under clause 7i71 if such ,united ,states person-- 7,i7 requests to purchase any quantity of the covered advanced circuit or product with respect to which such application is submitted for on the terms such covered advanced circuit or product is offered for2 and 7,,ii7 takes material steps to complete such purchase within #ae business days of requesting to make such purchase2 7iii7 has no current backlog of requests from ,united ,states persons for the covered advanced circuit or product with respect to which such application is submitted for or a comparable covered advanced circuit or product2 7iv7 cannot reasonably foresee1 based on material information known to such person1 that the production and export1 reexport1 or in-country transfer of the covered advanced circuit or product with respect to which such application is submitted for will result1 during the #ab-month period following such export1 reexport1 or in-country transfer1 in-- 7,i7 a backlog of requests described under clause 7iii72 or 7,,ii7 a reduction in production line capacity for the production of a covered advanced circuit or product or a substantially similar covered advanced circuit or product1 for ,united ,states persons2 and 7v7 is not providing advantageous pricing or terms for the covered advanced circuit or product with respect to which such application is submitted for to foreign persons that are not provided to ,united ,states persons4 7,b7 ,definitions ,in this paragraph3 7i7 ,backlog of requests ,the term backlog of requests means a request from any ,united ,states person for a covered advanced circuit or product that-- 7,i7 is formally documented through-- 7aa7 a purchase order or enforceable contract2 or 7bb7 a formal request for supply consistent with ordinary commercial practice that specifies quantity1 price1 and timeframe of delivery2 and 7,,ii7 is not fulfilled or will not be able to fulfill within a timeframe consistent with commercially standard production and delivery lead times4 7ii7 ,material information ,in this paragraph1 the term material information includes information disclosed to investors1 shareholders1 or in public filings4 7#g7 ,trusted ,united ,states person ,the term trusted ,united ,states person means any ,united ,states person designated as a trusted ,united ,states person pursuant to subsection 7c77#b74 4