,,ii  #aaith ,,congress  #ast ,session  
,s4 #agje  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #h1       
#bjbe,mr4 ,cotton introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to require the ,secretary of   
,commerce to issue standards with       
respect to chip security mechanisms for 
integrated circuit products1 and for    
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,chip ,security
 ,act4  #b4 ,sense of ,congress ,it is  
the sense of ,congress that-- 7#a7      
technology developed in the ,united     
,states should serve as the foundation  
for the global ecosystem of artificial  
intelligence to advance the foreign     
policy and national security objectives 
of the ,united ,states and allies and   
partners of the ,united ,states2  7#b7  
the ,united ,states can foster goodwill1
 strengthen relationships1 and support  
innovative research around the world by 

providing allies and partners of the    
,united ,states with advanced computing 
capabilities2  7#c7 advanced integrated 
circuits and computing hardware that is 
exported from the ,united ,states must  
be protected from diversion1 theft1 and 
other unauthorized use or exploitation  
in order to bolster the competitiveness 
of the ,united ,states and protect the  
national security of the ,united        
,states2  7#d7 implementing chip        
security mechanisms will improve        
compliance with the export control laws 
of the ,united ,states1 assist allies   
and partners with guarding computing    
hardware1 and enhance protections from  
bad actors looking to access1 divert1 or
 tamper with advanced integrated        
circuits and computing hardware2 and    
7#e7 implementing chip security         
mechanisms may help with the detection  
of smuggling or exploitation of advanced
 integrated circuits and computing      
hardware1 thereby allowing for increased
 flexibility in export controls and     

opening the door for more international 
partners to receive streamlined and     
larger shipments of advanced computing  
hardware4  #c4 ,definitions ,in this    
,act3 7#a7 ,appropriate congressional   
committees ,the term appropriate        
congressional committees means-- 7,a7   
the ,committee on ,banking1 ,housing1   
and ,urban ,affairs of the ,senate2 and 
7,b7 the ,committee on ,foreign ,affairs
 of the ,house of ,representatives4     
7#b7 ,chip ,security ,mechanism ,the    
term chip security mechanism means a    
software-1 firmware-1 or                
hardware-enabled security mechanism or a
 physical security mechanism4  7#c7     
,covered integrated circuit product ,the
 term covered integrated circuit product
 means-- 7,a7 an integrated circuit     
classified under ,export ,control       
,classification ,number #c;,a#jij or    
#c;,a#jja4z2  7,b7 a computer or other  
product classified under ,export        
,control ,classification ,number        
#d;,a#jij or #d;,a#jjc4z2 or  7,c7 an   

integrated circuit or computer or a     
product containing an integrated circuit
 or computer that is classified under an
 ,export ,control ,classification       
,number that is a successor or          
substantially similar to the numbers    
listed in subparagraphs 7,a7 and 7,b74  
7#d7 ,export ,the term export has the   
meaning given that term in section      
#agdb7c7 of the ,export ,control ,reform
 ,act of #bjah 7#ej ,u4,s4,c4 #dhja7c774
  7#e7 ,in-country transfer ,the term   
in-country transfer has the meaning     
given that term in section #agdb7f7 of  
the ,export ,control ,reform ,act of    
#bjah 7#ej ,u4,s4,c4 #dhja7f774  7#f7   
,reexport ,the term reexport has the    
meaning given that term in section      
#agdb7i7 of the ,export ,control ,reform
 ,act of #bjah 7#ej ,u4,s4,c4 #dhja7i774
  7#g7 ,secretary ,the term ,secretary  
means the ,secretary of ,commerce4  #d4 
,requirements for security mechanisms   
for export of integrated circuit        
products  7a7 ,primary requirements for 

chip security mechanisms  7#a7 ,in      
general ,not later than #ahj days after 
the date of the enactment of this ,act1 
the ,secretary shall require any covered
 integrated circuit product to be       
outfitted with chip security mechanisms 
that implement location verification1   
using techniques that are feasible and  
appropriate on such date of enactment1  
before it is exported1 reexported1 or   
in-country transferred to or in a       
foreign country4  7#b7 ,notification    
requirement ,not later than #ahj days   
after the date of the enactment of this 
,act1 the ,secretary shall require any  
person that has received a license or   
other authorization under the ,export   
,control ,reform ,act of #bjah 7#ej     
,u4,s4,c4 #dhaa et seq47 to export1     
reexport1 or in-country transfer a      
covered integrated circuit product to   
promptly report to the ,under ,secretary
 of ,industry and ,security1 if the     
person obtains credible information that
 the product-- 7,a7 is in a location    

other than the location specified in the
 application for the license or other   
authorization2  7,b7 has been diverted  
to a user other than the user specified 
in the application2 or  7,c7 has been   
subjected to tampering or an attempt at 
tampering1 including efforts to disable1
 spoof1 manipulate1 mislead or          
circumvent location verification        
mechanisms or other chip security       
mechanisms4  7b7 ,development of        
secondary requirements for chip security
 mechanisms  7#a7 ,assessment  7,a7 ,in 
general ,not later than one year after  
the date of the enactment of this ,act1 
the ,secretary shall1 in coordination   
with the ,secretary of ,defense-- 7i7   
conduct an assessment to identify what  
additional mechanisms1 if any1 should be
 added to the primary chip security     
mechanisms required under subsection    
7a77#a7-- 7,i7 to enhance compliance    
with the requirements of the ,export    
,control ,reform ,act of #bjah2  7,,ii7 
to prevent1 hinder1 and detect the      

unauthorized use1 access1 or            
exploitation of covered integrated      
circuit products2  7,,iii7 to identify  
and monitor smuggling intermediaries2   
and  7,,iv7 to achieve any national     
security or foreign policy objective of 
the ,united ,states that the ,secretary 
considers appropriate2 and  7ii7 if the 
,secretary identifies any such          
mechanism1 develop requirements for     
outfitting covered integrated circuit   
products with that mechanism4  7,b7     
,elements ,the assessment required by   
paragraph 7#a7 shall include-- 7i7 an   
examination of the feasibility1         
reliability1 and effectiveness of-- 7,i7
 methods and strategies that prevent the
 tampering1 disabling1 or other         
manipulating of covered integrated      
circuit products2  7,,ii7 workload      
verification methods2  7,,iii7 methods  
to modify the functionality of covered  
integrated circuit products that have   
been illicitly acquired2 and  7,,iv7 any
 other method the ,secretary determines 

appropriate for the prevention of       
unauthorized use1 access1 or            
exploitation of covered integrated      
circuit products2  7ii7 an analysis of--
 7,i7 the potential costs associated    
with implementing each method examined  
under clause 7i71 including an analysis 
of-- 7aa7 the potential impact of the   
method on the performance of covered    
integrated circuit products2 and  7bb7  
the potential for the introduction of   
new vulnerabilities into the products2  
7,,ii7 the potential benefits of        
implementing the methods examined under 
clause 7i71 including an analysis of the
 potential increase-- 7aa7 in compliance
 of covered integrated circuit products 
with the requirements of the ,export    
,control ,reform ,act of #bjah2 and     
7bb7 in detecting1 hindering1 and       
preventing unauthorized use1 access1 or 
exploitation of the products2 and       
7,,iii7 the susceptibility of the       
methods examined under clause 7i7 to    
tampering1 disabling1 or other forms of 

manipulation2 and  7iii7 an estimate of 
the expected costs to implement at-scale
 methods to tamper with1 disable1 or    
manipulate a covered integrated circuit 
product1 or otherwise circumvent the    
methods examined under clause 7i74  7#b7
 ,report to ,congress  7,a7 ,in general 
,not later than one year after the date 
of the enactment of this ,act1 the      
,secretary1 in coordination with the    
,secretary of ,defense1 shall submit to 
the appropriate congressional committees
 a report on the results of the         
assessment required by paragraph 7#a71  
including-- 7i7 an identification of the
 chip security mechanisms1 if any1 to be
 included in the requirements for       
secondary chip security mechanisms2 and 
7ii7 if applicable1 a roadmap for the   
timely implementation of the secondary  
chip security mechanisms4  7,b7 ,form   
,the report required by paragraph 7#a7  
shall be submitted in unclassified form1
 but may include a classified annex4    
7#c7 ,implementation  7,a7 ,in general  

,if any mechanisms are determined by the
 ,secretary to be appropriate1 the      
,secretary shall1 not later than #b     
years after the date on which the       
,secretary completes the assessment     
required by paragraph 7#a71 require any 
covered integrated circuit product to be
 outfitted with the secondary chip      
security mechanisms identified pursuant 
to paragraph 7#a77;,a7 before the       
product is exported1 reexported1 or     
in-country transferred to or in a       
foreign country4  7,b7 ,privacy ,in     
implementing requirements for secondary 
chip security mechanisms under          
subparagraph 7,a71 the ,secretary shall 
prioritize confidentiality4  7c7        
,enforcement authority ,in carrying out 
this section1 the ,secretary may-- 7#a7 
verify1 in a manner the ,secretary      
determines appropriate1 the ownership   
and location of a covered integrated    
circuit product that has been exported1 
reexported1 or in-country transferred to
 or in a foreign country2  7#b7 maintain

 a record of covered integrated circuit 
products and include in the record the  
location and current end-user of each   
such product2 and  7#c7 require any     
person who has been granted a license or
 other authorization under the ,export  
,control ,reform ,act of #bjah to       
export1 reexport1 or in-country transfer
 a covered integrated circuit product to
 provide the information needed to      
maintain the record4  7d7 ,annual       
assessment and report on new chip       
security mechanisms ,not later than #b  
years after the date of the enactment of
 this ,act1 and annually thereafter for 
#c years1 the ,secretary shall-- 7#a7 in
 coordination with the ,secretary of    
,defense1 conduct an assessment of new  
chip security mechanisms that have been 
developed in the year preceding the date
 of the assessment2 and  7#b7 submit to 
the appropriate congressional committees
 a report that includes-- 7,a7 a summary
 of the results of the assessment       
required by paragraph 7#a72  7,b7 an    

evaluation of whether any of the new    
mechanisms assessed under paragraph 7#a7
 should be added to or replace any of   
the existing requirements for secondary 
chip security mechanisms developed under
 subsection 7b77#a72 and  7,c7 any      
recommendations for modifications to    
relevant export controls to allow for   
more flexibility with respect to the    
countries to or in which covered        
integrated circuit products may be      
exported1 reexported1 or in-country     
transferred if the products include chip
 security mechanisms that meet the      
requirements developed under subsection 
7b77#a74