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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5885 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5885
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 chips.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 31, 2025
Mr. Moolenaar (for himself and Mr. Krishnamoorthi) introduced the
following bill; 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 chips.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Guaranteeing Access and Innovation
for National Artificial Intelligence Act of 2025'' or the ``GAIN AI Act
of 2025''.
SEC. 2. 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 2018 (50 U.S.C. 4811 et
seq.) is amended by inserting after section 1758 the following new
section:
``SEC. 1758A. CONTROL OF EXPORTS OF CERTAIN ADVANCED INTEGRATED
CIRCUITS.
``(a) License Requirement.--The Under Secretary of Commerce for
Industry and Security shall require a license for the export, reexport,
or in-country transfer of a covered advanced circuit or product to an
entity located or headquartered in, or whose ultimate parent company is
headquartered in, a country of concern.
``(b) Certification of Priority for United States Customers for
Certain Advanced Integrated Circuits.--
``(1) Certification requirement.--The Under Secretary of
Commerce for Industry and Security shall require a person
submitting an application for a license under subsection (a) to
certify in the application that such person provided a right of
first refusal to United States persons.
``(2) Denial of applications without certification.--Such
Under Secretary shall deny each application for a license under
subsection (a) that does not include a certification described
in paragraph (1).
``(3) Implementation.--Not later than 120 days after the
date of the enactment of this section, such Under Secretary
shall consult with the public and prescribe regulations
providing guidance, based on such consultation, for complying
with the certification requirement under paragraph (1), which
shall include--
``(A) information that the person submitting an
application for a license under subsection (a) is
required to make available about transactions with
entities described in subsection (a), and the form the
public notice of such information must take, to ensure
that United States persons can exercise a right of
first refusal under paragraph (1);
``(B) procedures for United States persons to
exercise a right of first refusal under paragraph (1),
including--
``(i) how public notice of the right of
first refusal shall be provided; and
``(ii) guidance on when a United States
person should inform such Under Secretary that
they are seeking to exercise a right of first
refusal;
``(C) conditions upon which a person submitting an
application for a license under subsection (a) 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 timeframe;
``(D) recordkeeping requirements;
``(E) penalties for misrepresentation and
concealment of material facts; and
``(F) guidance with respect to determining
whether--
``(i) a United States person exercising a
right of first refusal has taken a material
step to complete a transaction within the
required timeframe; and
``(ii) the export, reexport, or in-country
transfer of a covered advanced circuit or
product would create--
``(I) 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
(a) or a comparable covered advanced
circuit or product; or
``(II) a reduction in the capacity
of production lines for the production,
for United States persons, of the
covered advanced circuit or product
with respect to which an application
for a license is submitted under
subsection (a) or a comparable covered
advanced circuit or product; and
``(iii) a person submitting an application
for a license under subsection (a) 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 persons.
``(4) Rule of construction.--In the case of more than one
United States person requesting to exercise a right of first
refusal, nothing in this subsection shall be construed to
authorize the Under Secretary of Commerce for Industry and
Security, or any other Federal official, to allocate,
prioritize, or otherwise select one United States person over
any other United States person submitting such a request.
``(c) Exemption From Certain License Requirement for Trusted United
States Persons.--
``(1) In general.--The requirement for a license under
sections 742.6 and 744.23 of title 15, Code of Federal
Regulations shall not apply to the export, reexport, or in-
country transfer of a covered advanced circuit or product if
the covered advanced circuit or product--
``(A) is destined for a country that is not a
country of concern; and
``(B) once in operation, remains under the
ownership and control of a trusted United States
person.
``(2) Implementation.--Not later than 120 days after the
date of the enactment of this section, the Under Secretary of
Commerce for Industry and Security shall consult with the
public and, based on such consultation, prescribe regulations--
``(A) establishing the standards and requirements a
United States person is required to meet to obtain a
designation as a trusted United States person, which
shall include--
``(i) establishment by the United States
person of physical security, cybersecurity, and
other measures designed to prevent the illicit
transfer or diversion of covered circuits and
products, or other violations of United States
export control regulations;
``(ii) 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 States;
``(iii) a requirement that not more than 10
percent of the ultimate beneficial ownership of
the United States person may be held, directly
or indirectly, by any entity that primarily
resides, is domiciled, or conducts the majority
of its business in a country of concern; and
``(iv) annual audit or attestation
requirement to ensure compliance with this
subparagraph; and
``(B) describing the process by which such Under
Secretary shall approve such a designation under
subparagraph (A).
``(d) Definitions.--In this section:
``(1) Advanced integrated circuit.--
``(A) In general.--Subject to subparagraph (B), the
term `advanced integrated circuit' means--
``(i) an integrated circuit, computer, or
other product--
``(I) classified under Export
Control Classification Number 3A090 or
4A090 or related Export Control
Classification Numbers; or
``(II) that is functionally
equivalent or substantially similar to
a circuit, computer, or product
described in subclause (I); or
``(ii) an integrated circuit that has one
or more digital processing units with--
``(I) a total processing
performance of 4,800 or more;
``(II) a total processing
performance of 2,400 or more and a
performance density of 1.6 or more;
``(III) a total processing
performance of 1,600 or more and a
performance density of 3.2 or more; or
``(IV) a total DRAM bandwidth of
1,400 gigabytes per second or more,
interconnect bandwidth of 1,100
gigabytes per second or more, or a sum
of DRAM bandwidth and interconnect
bandwidth of 1,700 gigabytes per second
or more.
``(B) Authority to update technical parameters.--
Beginning 24 months after the date of the enactment of
this section, 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 Register.
``(2) Commerce control list.--The term `Commerce Control
List' means the list set forth in Supplement No. 1 to part 774
of title 15, Code of Federal Regulations.
``(3) Country of concern.--The term `country of concern'
means--
``(A) a country listed in Country Group D:5 or E in
Supplement No. 1 to part 740 of title 15, Code of
Federal Regulations;
``(B) the Macau Special Administrative Region of
the People's Republic of China; or
``(C) the Hong Kong Special Administrative Region
of the People's Republic of China.
``(4) Covered advanced circuit or product.--
``(A) In general.--Except as provided by
subparagraph (B), the term `covered advanced circuit or
product' means--
``(i) an advanced integrated circuit; or
``(ii) a product containing such a circuit.
``(B) 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
centers.
``(5) Performance density; total processing performance.--
The terms `performance density' and `total processing
performance' have the meanings given those terms in, and are
calculated as provided for under, Export Control Classification
Number 3A090 in the Commerce Control List set forth in
Supplement No. 1 to part 774 of title 15, Code of Federal
Regulations.
``(6) Right of first refusal.--
``(A) In general.--The term `right of first
refusal' means the person applying for a license under
subsection (a)--
``(i) provides, through public notice, not
less than a 15-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 in, or whose ultimate parent
company is headquartered in, a country of
concern;
``(ii) provides preference to a United
States person submitting an inquiry under
clause (i), if such United States person--
``(I) 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 for; and
``(II) takes material steps to
complete such purchase within 15
business days of requesting to make
such purchase;
``(iii) 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 product;
``(iv) cannot reasonably foresee, based on
material information known to such person, that
the production and export, reexport, or in-
country transfer of the covered advanced
circuit or product with respect to which such
application is submitted for will result,
during the 12-month period following such
export, reexport, or in-country transfer, in--
``(I) a backlog of requests
described under clause (iii); or
``(II) a reduction in production
line capacity for the production of a
covered advanced circuit or product or
a substantially similar covered
advanced circuit or product, for United
States persons; and
``(v) 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 persons.
``(B) Definitions.--In this paragraph:
``(i) Backlog of requests.--The term
`backlog of requests' means a request from any
United States person for a covered advanced
circuit or product that--
``(I) is formally documented
through--
``(aa) a purchase order or
enforceable contract; or
``(bb) a formal request for
supply consistent with ordinary
commercial practice that
specifies quantity, price, and
timeframe of delivery; and
``(II) is not fulfilled or will not
be able to fulfill within a timeframe
consistent with commercially standard
production and delivery lead times.
``(ii) Material information.--In this
paragraph, the term `material information'
includes information disclosed to investors,
shareholders, or in public filings.
``(7) 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
(c)(2).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Foreign Affairs.
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