,,ii #aai? ,,congress #a/ ,session ,s4 #caej ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,novemb] #f1 #bjbe ,mr4 ,banks 7= himself1 ,ms4 ,w>r51 ,mr4 ,cotton1 ,mr4 ,s*um]1 ,mr4 ,mc,cormick1 & ,mr4 ,coons7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to require entities seek+ a lic5se to export advanc$ artificial intellig5ce *ips to c\ntries ( conc]n to c]tify t ,unit$ ,/ates p]sons h priority 9 acquir+ ^? *ips4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,gu>antee+ ,access & ,innovation = ,national ,artificial ,intellig5ce ,act ( #bjbe or ! ,,ga9 ,,ai ,act ( #bjbe4 #b4 ,prohibition on prioritiz+ c\ntries ( conc]n ov] ,unit$ ,/ates p]sons = exports ( advanc$ integrat$ circuits ,"p ,i ( ! ,export ,control ,re=m ,act ( #bjah 7#ej ,u4,s4,c4 #dhaa et seq47 is am5d$ by ins]t+ aft] section #ageh ! foll[+3 #ageh;,a4 ,control ( exports ( advanc$ integrat$ circuits 7a7 ,def9itions ,9 ?is section3 7#a7 ,advanc$ integrat$ circuit 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 ! t]m advanc$ integrat$ circuit means-- 7i7 an integrat$ circuit1 comput]1 or o!r product-- 7,i7 classifi$ "u ,export ,control ,classification ,numb] #c;,a#jij or #d;,a#jij or relat$ ,export ,control ,classification ,numb]s2 or 7,,ii7 t is functionally equival5t or sub/antially simil> to a circuit1 comput]1 or product describ$ 9 subclause 7,i72 or 7ii7 an integrat$ circuit t has "o or m digital process+ units )-- 7,i7 a total process+ p]=mance ( #d1hjj or m2 7,,ii7 a total process+ p]=mance ( #b1djj or m & a p]=mance d5sity ( #a4f or m2 7,,iii7 a total process+ p]=mance ( #a1fjj or m & a p]=mance d5sity ( #c4b or m2 or 7,,iv7 a total ,,dram b&wid? ( #a1djj gigabytes p] second or m1 int]connect b&wid? ( #a1ajj gigabytes p] second or m1 or a sum ( ,,dram b&wid? & int]connect b&wid? ( #a1gjj gigabytes p] second or m4 7,b7 ,au?ority to update te*nical p>amet]s ,beg9n+ #cf mon?s aft] ! date ( ! enactm5t ( ?is section1 ! ,"u ,secret>y may add new te*nical p>amet]s = ! def9ition ( advanc$ integrat$ circuit = purposes ( ?is section foll[+ publication ( ! p>amet]s 9 ! ,f$]al ,regi/] & a p]iod ( public notice & comm5t4 7#b7 ,backlog ( reque/s ,! t]m backlog ( reque/s1 9 ! case ( a p]son submitt+ an application = a lic5se "u subsection 7b71 means ! p]son has receiv$ a reque/ f a ,unit$ ,/ates p]son = a cov]$ circuit or product t-- 7,a7 is =mally docum5t$ ?r\gh-- 7i7 a pur*ase ord] or en=ceable contract2 or 7ii7 any o!r =mat consi/5t ) ord9>y comm]cial practice t specifies quantity1 price1 & "t frame ( deliv]y2 & 7,b7 ! p]son has n fulfill$ or w n be able to fulfill ! reque/ )9 a "t frame consi/5t ) comm]cially /&>d production & deliv]y lead times4 7#c7 ,comm]ce ,control ,li/ ,! t]m ,comm]ce ,control ,li/ means ! li/ set =? 9 ,supplem5t ,no4 #a to "p #ggd ( ! ,export ,adm9i/ration ,regulations4 7#d7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n means-- 7,a7 a c\ntry li/$ 9 ,c\ntry ,gr\p ,d3#e or ,e 9 ,supplem5t ,no4 #a to "p #gdj ( ! ,export ,adm9i/ration ,regulations2 7,b7 ! ,macau ,special ,adm9i/rative ,region ( ! ,p's ,republic ( ,*9a2 or 7,c7 ! ,hong ,kong ,special ,adm9i/rative ,region ( ! ,p's ,republic ( ,*9a4 7#e7 ,cov]$ circuit or product 7,a7 ,9 g5]al ,except z provid$ by subp>agraph 7,b71 ! t]m cov]$ circuit or product means an advanc$ integrat$ circuit or a product conta9+ su* a circuit4 7,b7 ,exclusion ,! t]m cov]$ circuit or product does n include an advanc$ integrat$ circuit or a product conta9+ su* a circuit t is n design$ or m>ket$ = data c5t]s4 7#f7 ,p]=mance d5sity2 total process+ p]=mance ,! t]ms p]=mance d5sity & total process+ p]=mance h ! mean+s giv5 ^? t]ms 91 & are calculat$ z provid$ = "u1 ,export ,control ,classification ,numb] #c;,a#jij 9 ! ,comm]ce ,control ,li/ set =? 9 ,supplem5t ,no4 #a to "p #ggd ( ! ,export ,adm9i/ration ,regulations4 7#g7 ,tru/$ ,unit$ ,/ates p]son ,! t]m tru/$ ,unit$ ,/ates p]son means any ,unit$ ,/ates p]son designat$ z a tru/$ ,unit$ ,/ates p]son pursuant to subsection 7d77#b74 7b7 ,lic5se requirem5t ,! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security %all require a lic5se = ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ circuit or product to an entity t is locat$ or headqu>t]$ 91 or ! ultimate p>5t company ( :i* is headqu>t]$ 91 a c\ntry ( conc]n4 7c7 ,c]tification ( priority = ,unit$ ,/ates cu/om]s = c]ta9 advanc$ integrat$ circuits 7#a7 ,c]tification requirem5t ,! ,"u ,secret>y %all require a p]son submitt+ an application = a lic5se "u subsection 7b7 = ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ circuit or product to an entity describ$ 9 subsection 7b7 to c]tify 9 ! application t-- 7,a7 ,unit$ ,/ates p]sons _h a "r ( fir/ refusal = ! cov]$ circuit or product1 :i* means ! p]son submitt+ ! application-- 7i7 provid$1 ?r\gh a public notice1 ,unit$ ,/ates p]sons ) ! opportunity to inquire ab\t pur*as+ a cov]$ circuit or product t w\ld o!rwise be sold to an entity describ$ 9 subsection 7b72 7ii7 provid$ n few] ?an #ae bus9ess days = a ,unit$ ,/ates p]son to inquire & reque/ to pur*ase ! cov]$ circuit or product2 & 7iii7 provid$ pref]5ce to a ,unit$ ,/ates p]son submitt+ an inquiry "u clause 7i7 if ! ,unit$ ,/ates p]son-- 7,i7 reque/s to pur*ase ! full quantity or a less] quantity ( ! cov]$ circuit or product (f]$ by ! p]son submitt+ ! application2 & 7,,ii7 takes mat]ial /eps to complete ! pur*ase )9 #ae bus9ess days ( reque/+ to pur*ase ! cov]$ circuit or product2 & 7,b7 ! p]son submitt+ ! application-- 7i7 has no curr5t backlog ( reque/s f ,unit$ ,/ates p]sons = ! cov]$ circuit or product or a comp>able circuit or product t utilizes sub/antially simil> production process1 infra/ructure1 or supply2 7ii7 _c reasonably =esee1 bas$ on mat]ial in=mation kn[n to ! p]son1 includ+ in=mation disclos$ to inve/ors or %>ehold]s or 9 public fil+s1 ! production & export1 reexport1 or 9-c\ntry transf] ( ! cov]$ circuit or product result+1 dur+ ! #ab-mon? p]iod foll[+ ! export1 reexport1 or 9-c\ntry transf]1 9-- 7,i7 su* a backlog2 or 7,,ii7 a r$uction 9 critical production capacity = ! production ( a cov]$ circuit or product or a sub/antially simil> circuit or product t utilizes sub/antially simil> production process1 infra/ructure1 or supply = ,unit$ ,/ates p]sons2 & 7iii7 is n provid+ advantage\s pric+ or t]ms = ! cov]$ circuit or product to =eign p]sons t ! p]son is n provid+ to ,unit$ ,/ates p]sons4 7#b7 ,d5ial ( applications )\t c]tification ,if a c]tification describ$ 9 p>agraph 7#a7 is n submitt$ ) an application = a lic5se requir$ "u subsection 7b71 ! ,"u ,secret>y %all d5y ! lic5se4 7#c7 ,implem5tation ,n lat] ?an #ij days aft] ! date ( ! enactm5t ( ?is section1 ! ,"u ,secret>y %all-- 7,a7 seek input f ! public reg>d+ compliance ) ! c]tification requirem5ts "u p>agraph 7#a72 & 7,b7 bas$ on su* input1 prescribe regulations provid+ guidance = compliance ) ! c]tification requirem5ts1 :i* %all include-- 7i7 in=mation t ! p]son submitt+ an application = a lic5se "u subsection 7b7 is requir$ to make available ab\t transactions ) entities describ$ 9 subsection 7b7 to ensure t ,unit$ ,/ates p]sons c ex]cise a "r-(-fir/-refusal "u p>agraph 7#a77;,a72 7ii7 proc$ures = ,unit$ ,/ates p]sons to ex]cise su* a "r-(-fir/-refusal1 includ+-- 7,i7 ! proc$ural requirem5ts = public notice "u p>agraph 7#a77;,a77i72 & 7,,ii7 guidance on :5 a ,unit$ ,/ates p]son %\ld in=m ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security t ! p]son is seek+ to ex]cise ! "r-(-fir/-refusal "u p>agraph 7#a77;,a72 7iii7 conditions ^u :i* a p]son submitt+ an application = a lic5se "u subsection 7b7 may proce$ ) ! export1 reexport1 or 9-c\ntry transf] ( ! cov]$ circuit or product if a reque/ f a ,unit$ ,/ates p]son "u p>agraph 7#a77;,a7 to pur*ase ! cov]$ circuit or product 0 n made 9 good fai? or complet$ 9 a timely mann]2 7iv7 recordkeep+ requirem5ts2 7v7 p5alties = misrepres5tation & concealm5t ( mat]ial facts2 & 7vi7 guidance ) respect to det]m9+ :e!r-- 7,i7 a ,unit$ ,/ates p]son ex]cis+ ! "r-(-fir/-refusal has tak5 a mat]ial /ep "u p>agraph 7#a77;,a77iii77,,ii72 7,,ii7 ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ circuit or product w\ld create-- 7aa7 a backlog ( reque/s describ$ 9 p>agraph 7#a77;,b77i72 or 7bb7 a r$uction 9 critical production capacity describ$ 9 p>agraph 7#a77;,b77ii77,,ii72 & 7,,iii7 ! p]son sell+ ! circuit or product is provid+ advantage\s pric+ or t]ms to =eign p]sons z describ$ 9 p>agraph 7#a77;,b77iii74 7#d7 ,rules ( con/ruction ,no?+ 9 ?is subsection %all be con/ru$-- 7,a7 9 ! case ( m ?an "o ,unit$ ,/ates p]son reque/+ to pur*ase a cov]$ circuit or product "u p>agraph 7#a77;,a77iii71 to au?orize ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security1 or any o!r ,f$]al (ficial1 to allocate1 prioritize1 or o!rwise select "o ,unit$ ,/ates p]son ov] any o!r ,unit$ ,/ates p]son submitt+ su* a reque/2 7,b7 to require a p]son submitt+ an application = a lic5se "u subsection 7b7 to publicly disclose comm]cially s5sitive or propriet>y in=mation1 includ+-- 7i7 cu/om] id5tities2 7ii7 contract t]ms2 7iii7 deliv]y s*$ules2 or 7iv7 pric+ data2 or 7,c7 z apply+ to a cov]$ circuit product t is design$ & manufactur$ exclusively = int]nal use4 7d7 ,exemption f c]ta9 lic5se requirem5t = tru/$ ,unit$ ,/ates p]sons 7#a7 ,9 g5]al ,! requirem5t = a lic5se "u sections #gdb4d & #gdd4bc ( ! ,export ,adm9i/ration ,regulations %all n apply to ! export1 reexport1 or 9-c\ntry transf] ( a cov]$ circuit or product if ! cov]$ circuit or product-- 7,a7 is de/9$ = a c\ntry t is n a c\ntry ( conc]n2 & 7,b7 rema9s "u ! own]%ip & control ( a tru/$ ,unit$ ,/ates p]son once ! cov]$ circuit or product is 9 op]ation4 7#b7 ,implem5tation ,n lat] ?an #ij days aft] ! date ( ! enactm5t ( ?is section1 ! ,"u ,secret>y ( ,comm]ce = ,indu/ry & ,security %all-- 7,a7 seek input f ! public reg>d+ ! /&>ds & requirem5ts a ,unit$ ,/ates p]son is requir$ to meet to obta9 a designation z a tru/$ ,unit$ ,/ates p]son2 & 7,b7 bas$ on su* input1 prescribe regulations e/abli%+ su* /&>ds & requirem5ts1 :i* %all include-- 7i7 e/abli%m5t by ! ,unit$ ,/ates p]son ( physical security1 cyb]security1 & o!r measures design$ to prev5t ! illicit transf] or div]sion ( cov]$ circuit products & comply ) export control regulations2 7ii7 a requirem5t t ! ,unit$ ,/ates p]son may n transf] or in/all a majority ( its aggregate total process+ p]=mance ( cov]$ circuits or products outside ! ,unit$ ,/ates2 7iii7 a requirem5t t n m ?an #aj p]c5t ( ! ultimate b5eficial own]%ip ( ! ,unit$ ,/ates p]son may be held1 directly or indirectly1 by any entity t prim>ily resides1 is domicil$1 or conducts ! majority ( its bus9ess 9 a c\ntry ( conc]n2 7iv7 a pref]5ce = s\rc+ advanc$ integrat$ circuit & subcompon5ts f production facilities t support ! revival ( semiconductor manufactur+ 9 ! ,unit$ ,/ates2 & 7v7 annual audit or atte/ation requirem5ts to ensure compliance ) clauses 7i71 7ii71 & 7iii72 & 7,c7 prescribe regulations e/abli%+ ! process by :i* ! ,"u ,secret>y %all approve su* a designation4 4