H.R. 5885

[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>