,i #aaith ,,congress #ast ,session ,h4 ,r4 #fhge ,,in ,,the ,,house ,,of ,,representatives ,december #ah1 #bjbe,mr4 ,mast 7for himself1 ,mr4 ,huizenga1 ,mr4 ,moolenaar1 ,mrs4 ,kim1 ,mr4 ,self1 ,mr4 ,crawford1 and ,mr4 ,la,hood7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs ,a ,,bill ,to require the ,under ,secretary of ,commerce for ,industry and ,security to require a license for the export1 reexport1 or in-country transfer of certain integrated circuits1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,artificial ,intelligence ,oversight of ,verified ,exports and ,restrictions on ,weaponizable ,advanced ,technology to ,covered ,high-,risk ,actors ,act or the ,,ai ,,overwatch ,act4 #b4 ,license requirement for exports of covered integrated circuits to countries of concern ,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 following3 #ageh;,a4 ,control of exports of covered integrated circuits 7a7 ,definitions ,in this section3 7#a7 ,appropriate congressional committees the term appropriate congressional committees means the ,committee on ,foreign ,affairs of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,commerce control list ,the term ,commerce ,control ,list means the list set forth in ,supplement ,no4 #a to part #ggd of the ,export ,administration ,regulations4 7#c7 ,country of concern ,the term country of concern means-- 7,a7 the ,people's ,republic of ,china1 including the ,hong ,kong and ,macau ,special ,administrative ,regions2 7,b7 the ,republic of ,cuba2 7,c7 the ,islamic ,republic of ,iran2 7,d7 the ,democratic ,people's ,republic of ,korea2 7,e7 the ,russian ,federation2 and 7,f7 the ,bolivarian ,republic of ,venezuela under the regime of ,nicols ,maduro ,moros4 7#d7 ,covered integrated circuit 7,a7 ,in general ,subject to subparagraphs 7,b71 7,c71 and 7,d71 the term covered 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,i71 including certain similar products listed under ,export ,control ,classification ,number #e;,a#jjb4z2 or 7ii7 an integrated circuit that has #a 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 #ah months after the date of the submission to ,congress of the national security strategy required in subsection 7g71 the ,under ,secretary may add or modify technical parameters for the definition of covered integrated circuit for purposes of this section1 if the ,operating ,committee for ,export ,policy has approved the new or modified technical parameters by majority vote4 7,c7 ,products included ,except as provided by subparagraph 7,d71 the term covered integrated circuit includes a product containing such a covered integrated circuit4 7,d7 ,exclusion ,the term covered integrated circuit does not include a covered integrated circuit or a product containing such a covered integrated circuit that is not designed or marketed for use in data centers4 7#e7 ,operating ,committee for ,export ,policy ,the term ,operating ,committee for ,export ,policy means the ,operating ,committee for ,export ,policy referred to in section #agfc7;c7 of the ,john ,s4 ,mc,cain ,national ,defense ,authorization ,act for ,fiscal ,year #bjai 7#ej ,u4,s4,c4 #dhbb7;c774 7#f7 ,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 7as in effect on ,december #ae1 #bjbe74 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 7d77#b74 7b7 ,license requirement 7#a7 ,in general ,beginning on the date of the enactment of this section1 the ,under ,secretary of ,commerce for ,industry and ,security1 in coordination with each agency that is part of the ,operating ,committee for ,export ,policy1 shall require a license for the export1 reexport1 or in-country transfer of a covered integrated circuit to an entity that is located or headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern4 7#b7 ,general license prohibited ,the ,under ,secretary may not issue a general license for the purpose of fulfilling the license requirement in paragraph 7#a74 7c7 ,certification to ,congress 7#a7 ,certification requirement ,not fewer than #cj days prior to approving any license for the export1 reexport1 or in-country transfer of a covered integrated circuit to an entity that is located or headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern1 the ,under ,secretary of ,commerce for ,industry and ,security1 in coordination with each agency that is part of the ,operating ,committee for ,export ,policy1 shall submit to the appropriate congressional committees a copy of the license application1 including-- 7,a7 the quantity of covered integrated circuit1 identified by an ,export ,control ,classification ,number1 as applicable1 and by technical parameters of the covered integrated circuit2 7,b7 the ultimate consignee or end-user of the covered integrated circuit2 7,c7 any and all license conditions2 7,d7 a certification that the export1 reexport1 or in-country transfer of the covered integrated circuit has verifiable and enforceable mechanisms for ensuring the ultimate consignee or end-user has not1 does not1 and will not support or enable1 directly or indirectly1 the military1 intelligence1 surveillance1 or cyber-enabled capabilities of a country of concern1 including-- 7i7 an explanation of how the license conditions support the certification2 and 7ii7 in the case that the license concerns a country of concern that engages in a military-civil fusion policy or maintains a law that requires persons to provide support and assistance to national security bodies1 public security bodies1 or relevant military bodies of the country of concern1 details on how the license conditions address the specific threats arising from such policy or law2 7,e7 a certification that approving the license will not adversely impact the availability of covered integrated circuits for ,united ,states persons1 including a certification that all of the major subcomponents of the covered integrated circuits1 such as high-bandwidth memory1 are available in sufficient supply to fulfill the entirety of the demand of ,united ,states persons2 and 7,f7 a certification that approving the license will not adversely impact the advantage of the ,united ,states in total nationally-installed processing power capacity relative to the country of concern related to the ultimate consignee or end user of the covered integrated circuit2 7,g7 the underlying analyses supporting the certifications required in subparagraphs 7,d71 7,e71 and 7,f72 and 7,h7 a technical assessment 7including an alternative assessment by the ,director of ,national ,intelligence1 if applicable7 of how the export1 re-export1 or in-country transfer of the covered integrated circuit to an entity that is located or headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern affects the artificial intelligence leadership of the ,united ,states1 including in terms of global market share1 in artificial intelligence models1 artificial intelligence cloud services1 and covered integrated circuits1 respectively4 7#b7 ,limitation 7,a7 ,in general ,the license described in subsection 7b7 may not be issued-- 7i7 until the date that is not fewer than #cj days after the committees described paragraph 7#a7 received the certification required in such paragraph2 and 7ii7 if ,congress1 prior to the date that is #cj days after such committees received such certification1 enacts a joint resolution prohibiting the proposed export1 reexport1 or in-country transfer4 7,b7 ,joint resolution 7i7 ,consideration in the ,senate ,any joint resolution under this subsection shall be considered in the ,senate in accordance with the provisions of section #fja7;b7 of the ,international ,security ,assistance and ,arms ,export ,control ,act of #aigf 7,public ,law #id-cbi2 #ij ,stat4 #gfe74 7ii7 ,consideration in the ,house of ,representatives ,for the purpose of expediting the consideration and enactment of joint resolutions under this subsection1 a motion to proceed to the consideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the ,house of ,representatives4 7d7 ,exemption from certain license requirements for trusted ,united ,states persons 7#a7 ,in general ,the requirement for a license under sections #gdb4f and #gdd4bc of the ,export ,administration ,regulations shall not apply to the export1 reexport1 or in-country transfer of a covered integrated circuit if the covered integrated circuit-- 7,a7 is destined for a country that is not a country of concern2 and 7,b7 remains under the ownership and control of a trusted ,united ,states person or the subsidiaries of a trusted ,united ,states person once the covered integrated circuit is in operation4 7#b7 ,implementation ,not later than #ij days after the date of the enactment of this section1 the ,under ,secretary of ,commerce for ,industry and ,security1 in coordination with each agency that is part of the ,operating ,committee for ,export ,policy1 shall-- 7,a7 seek input from the public regarding the standards and requirements a ,united ,states person should be required to meet to obtain a designation as a trusted ,united ,states person2 7,b7 based on such input1 prescribe regulations establishing such standards and requirements1 which shall include-- 7i7 establishment by the ,united ,states person of reasonable security standards1 including physical security1 cybersecurity1 remote access1 secure covered integrated circuit repair and disposal procedures1 and other measures designed to prevent the illicit transfer1 diversion1 or access to covered integrated circuits2 7ii7 a requirement that the ,united ,states person may not transfer or install a majority of its aggregate total processing performance of covered integrated circuits 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 7iv7 a preference for sourcing advanced integrated circuits and subcomponents from production facilities that support the revival of semiconductor manufacturing in the ,united ,states2 and 7v7 annual audit or attestation requirements to ensure compliance with clauses 7i71 7ii71 and 7iii72 and 7,c7 prescribe regulations establishing the process by which the ,under ,secretary1 in coordination with each agency that is part of the ,operating ,committee for ,export ,policy1 shall approve such a designation4 7#c7 ,allied expansion ,the ,under ,secretary1 in coordination with each agency that is part of the ,operating ,committee for ,export ,policy1 shall consider options for securely expanding the license exemption program described in this subsection to allies of the ,united ,states4 7e7 ,termination of licenses ,any license issued or approved prior to the date of the enactment of this section for the export1 reexport1 or in-country transfer of a covered integrated circuit to an entity that is located or headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern is terminated4 7f7 ,temporary prohibition ,the ,under ,secretary1 in coordination with each agency that is part of the ,operating ,committee for ,export ,policy1 shall deny all licenses for the export1 reexport1 or in-country transfer of a covered integrated circuit to an entity that is located or headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern until the date that is #ad days after the submission to ,congress of the national security strategy required in subsection 7g74 7g7 ,national ,security ,strategy ,the ,secretary of ,commerce1 in conjunction with the ,secretary of ,state1 the ,secretary of ,defense1 the ,secretary of ,energy1 the ,united ,states ,trade ,representative1 the ,secretary of the ,treasury1 and the ,director of the ,white ,house ,office of ,science and ,technology ,policy1 and in consultation with the ,director of ,national ,intelligence1 shall submit to the appropriate congressional committees a strategy that details-- 7#a7 the national security implications of and goals that should govern the physical and remote access by countries of concern to covered integrated circuits1 semiconductor manufacturing equipment1 and related subcomponents that are from the ,united ,states or allies of the ,united ,states2 7#b7 an assessment of the implications of the export1 re-export1 or in-country transfer of covered integrated circuits to countries of concern for the military1 intelligence1 surveillance1 or cyber-enabled capabilities of such countries2 and 7#c7 an assessment by the ,director of ,national ,intelligence of the covered integrated circuit production numbers and capabilities of the ,people's ,republic of ,china for fiscal year #bjbf1 including-- 7,a7 a determination of whether the ,chinese ,communist ,party would cease or reduce its efforts to pursue indigenous production and use of ,chinese-designed and manufactured covered integrated circuits if entities located or headquartered in1 or the ultimate parent company of which is headquartered in1 the ,people's ,republic of ,china are provided access to covered integrated circuits designed in the ,united ,states2 7,b7 a comparison of the covered integrated circuit production numbers and capabilities of the ,people's ,republic of ,china to the covered integrated circuit production numbers and capabilities of the ,united ,states and allies of the ,united ,states2 and 7,c7 a quantitative analysis examining the artificial intelligence capabilities of countries of concern if such countries relied solely on indigenous production of covered integrated circuits using indigenously produced manufacturing equipment and related subcomponents4 4