,,ii #aaith ,,congress #ast ,session ,s4 #caej ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #f1 #bjbe ,mr4 ,banks 7for himself1 ,ms4 ,warren1 ,mr4 ,cotton1 ,mr4 ,schumer1 ,mr4 ,mc,cormick1 and ,mr4 ,coons7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,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 following3 #ageh;,a4 ,control of exports of advanced integrated circuits 7a7 ,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 #cf months after the date of the enactment of this section1 the ,under ,secretary may add new technical parameters for the definition of advanced integrated circuit for purposes of this section following publication of the parameters in the ,federal ,register and a period of public notice and comment4 7#b7 ,backlog of requests ,the term backlog of requests1 in the case of a person submitting an application for a license under subsection 7b71 means the person has received a request from a ,united ,states person for a covered circuit or product that-- 7,a7 is formally documented through-- 7i7 a purchase order or enforceable contract2 or 7ii7 any other format consistent with ordinary commercial practice that specifies quantity1 price1 and time frame of delivery2 and 7,b7 the person has not fulfilled or will not be able to fulfill the request within a time frame consistent with commercially standard production and delivery lead times4 7#c7 ,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#d7 ,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 the ,export ,administration ,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#e7 ,covered circuit or product 7,a7 ,in general ,except as provided by subparagraph 7,b71 the term covered circuit or product means an advanced integrated circuit or a product containing such a circuit4 7,b7 ,exclusion ,the term covered 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#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 set forth in ,supplement ,no4 #a to part #ggd of the ,export ,administration ,regulations4 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 ,the ,under ,secretary of ,commerce for ,industry and ,security shall require a license for the export1 reexport1 or in-country transfer of a covered circuit or product to an entity that is located or headquartered in1 or the ultimate parent company of which is headquartered in1 a country of concern4 7c7 ,certification of priority for ,united ,states customers for certain advanced integrated circuits 7#a7 ,certification requirement ,the ,under ,secretary shall require a person submitting an application for a license under subsection 7b7 for the export1 reexport1 or in-country transfer of a covered circuit or product to an entity described in subsection 7b7 to certify in the application that-- 7,a7 ,united ,states persons had a right of first refusal for the covered circuit or product1 which means the person submitting the application-- 7i7 provided1 through a public notice1 ,united ,states persons with the opportunity to inquire about purchasing a covered circuit or product that would otherwise be sold to an entity described in subsection 7b72 7ii7 provided not fewer than #ae business days for a ,united ,states person to inquire and request to purchase the covered circuit or product2 and 7iii7 provided preference to a ,united ,states person submitting an inquiry under clause 7i7 if the ,united ,states person-- 7,i7 requests to purchase the full quantity or a lesser quantity of the covered circuit or product offered by the person submitting the application2 and 7,,ii7 takes material steps to complete the purchase within #ae business days of requesting to purchase the covered circuit or product2 and 7,b7 the person submitting the application-- 7i7 has no current backlog of requests from ,united ,states persons for the covered circuit or product or a comparable circuit or product that utilizes substantially similar production process1 infrastructure1 or supply2 7ii7 cannot reasonably foresee1 based on material information known to the person1 including information disclosed to investors or shareholders or in public filings1 the production and export1 reexport1 or in-country transfer of the covered circuit or product resulting1 during the #ab-month period following the export1 reexport1 or in-country transfer1 in-- 7,i7 such a backlog2 or 7,,ii7 a reduction in critical production capacity for the production of a covered circuit or product or a substantially similar circuit or product that utilizes substantially similar production process1 infrastructure1 or supply for ,united ,states persons2 and 7iii7 is not providing advantageous pricing or terms for the covered circuit or product to foreign persons that the person is not providing to ,united ,states persons4 7#b7 ,denial of applications without certification ,if a certification described in paragraph 7#a7 is not submitted with an application for a license required under subsection 7b71 the ,under ,secretary shall deny the license4 7#c7 ,implementation ,not later than #ij days after the date of the enactment of this section1 the ,under ,secretary shall-- 7,a7 seek input from the public regarding compliance with the certification requirements under paragraph 7#a72 and 7,b7 based on such input1 prescribe regulations providing guidance for compliance with the certification requirements1 which shall include-- 7i7 information that the person submitting an application for a license under subsection 7b7 is required to make available about transactions with entities described in subsection 7b7 to ensure that ,united ,states persons can exercise a right-of-first-refusal under paragraph 7#a77;,a72 7ii7 procedures for ,united ,states persons to exercise such a right-of-first-refusal1 including-- 7,i7 the procedural requirements for public notice under paragraph 7#a77;,a77i72 and 7,,ii7 guidance on when a ,united ,states person should inform the ,under ,secretary of ,commerce for ,industry and ,security that the person is seeking to exercise the right-of-first-refusal under paragraph 7#a77;,a72 7iii7 conditions upon which a person submitting an application for a license under subsection 7b7 may proceed with the export1 reexport1 or in-country transfer of the covered circuit or product if a request from a ,united ,states person under paragraph 7#a77;,a7 to purchase the covered circuit or product was not made in good faith or completed in a timely manner2 7iv7 recordkeeping requirements2 7v7 penalties for misrepresentation and concealment of material facts2 and 7vi7 guidance with respect to determining whether-- 7,i7 a ,united ,states person exercising the right-of-first-refusal has taken a material step under paragraph 7#a77;,a77iii77,,ii72 7,,ii7 the export1 reexport1 or in-country transfer of a covered circuit or product would create-- 7aa7 a backlog of requests described in paragraph 7#a77;,b77i72 or 7bb7 a reduction in critical production capacity described in paragraph 7#a77;,b77ii77,,ii72 and 7,,iii7 the person selling the circuit or product is providing advantageous pricing or terms to foreign persons as described in paragraph 7#a77;,b77iii74 7#d7 ,rules of construction ,nothing in this subsection shall be construed-- 7,a7 in the case of more than one ,united ,states person requesting to purchase a covered circuit or product under paragraph 7#a77;,a77iii71 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 request2 7,b7 to require a person submitting an application for a license under subsection 7b7 to publicly disclose commercially sensitive or proprietary information1 including-- 7i7 customer identities2 7ii7 contract terms2 7iii7 delivery schedules2 or 7iv7 pricing data2 or 7,c7 as applying to a covered circuit product that is designed and manufactured exclusively for internal use4 7d7 ,exemption from certain license requirement for trusted ,united ,states persons 7#a7 ,in general ,the requirement for a license under sections #gdb4d and #gdd4bc of the ,export ,administration ,regulations shall not apply to the export1 reexport1 or in-country transfer of a covered circuit or product if the covered circuit or product-- 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 once the covered circuit or product 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 ,security shall-- 7,a7 seek input from the public regarding the standards and requirements a ,united ,states person is required to meet to obtain a designation as a trusted ,united ,states person2 and 7,b7 based on such input1 prescribe regulations establishing such standards and requirements1 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 circuit products and comply with 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 7iv7 a preference for sourcing advanced integrated circuit 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 ,secretary shall approve such a designation4 4