[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6875 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6875

To require the Under Secretary of Commerce for Industry and Security to 
 require a license for the export, reexport, or in-country transfer of 
          certain integrated circuits, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2025

Mr. Mast (for himself, Mr. Huizenga, Mr. Moolenaar, Mrs. Kim, Mr. Self, 
Mr. Crawford, and Mr. LaHood) introduced the following bill; which was 
              referred to the Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
To require the Under Secretary of Commerce for Industry and Security to 
 require a license for the export, reexport, or in-country transfer of 
          certain integrated circuits, and for other purposes.

    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 ``Artificial Intelligence Oversight of 
Verified Exports and Restrictions on Weaponizable Advanced Technology 
to Covered High-Risk Actors Act'' or the ``AI OVERWATCH Act''.

SEC. 2. LICENSE REQUIREMENT FOR EXPORTS OF COVERED INTEGRATED CIRCUITS 
              TO COUNTRIES OF CONCERN.

    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:

``SEC. 1758A. CONTROL OF EXPORTS OF COVERED INTEGRATED CIRCUITS.

    ``(a) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--the term 
        `appropriate congressional committees' means the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            ``(2) Commerce control list.--The term `Commerce Control 
        List' means the list set forth in Supplement No. 1 to part 774 
        of the Export Administration Regulations.
            ``(3) Country of concern.--The term `country of concern' 
        means--
                    ``(A) the People's Republic of China, including the 
                Hong Kong and Macau Special Administrative Regions;
                    ``(B) the Republic of Cuba;
                    ``(C) the Islamic Republic of Iran;
                    ``(D) the Democratic People's Republic of Korea;
                    ``(E) the Russian Federation; and
                    ``(F) the Bolivarian Republic of Venezuela under 
                the regime of Nicolas Maduro Moros.
            ``(4) Covered integrated circuit.--
                    ``(A) In general.--Subject to subparagraphs (B), 
                (C), and (D), the term `covered 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), including 
                                certain similar products listed under 
                                Export Control Classification Number 
                                5A002.z; or
                            ``(ii) an integrated circuit that has 1 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 18 months after the date of the submission to 
                Congress of the national security strategy required in 
                subsection (g), the Under Secretary may add or modify 
                technical parameters for the definition of `covered 
                integrated circuit' for purposes of this section, if 
                the Operating Committee for Export Policy has approved 
                the new or modified technical parameters by majority 
                vote.
                    ``(C) Products included.--Except as provided by 
                subparagraph (D), the term `covered integrated circuit' 
                includes a product containing such a covered integrated 
                circuit.
                    ``(D) Exclusion.--The term `covered integrated 
                circuit' does not include a covered integrated circuit 
                or a product containing such a covered integrated 
                circuit that is not designed or marketed for use in 
                data centers.
            ``(5) Operating committee for export policy.--The term 
        `Operating Committee for Export Policy' means the Operating 
        Committee for Export Policy referred to in section 1763(c) of 
        the John S. McCain National Defense Authorization Act for 
        Fiscal Year 2019 (50 U.S.C. 4822(c)).
            ``(6) 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 (as in effect on 
        December 15, 2025).
            ``(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 
        (d)(2).
    ``(b) License Requirement.--
            ``(1) In general.--Beginning on the date of the enactment 
        of this section, the Under Secretary of Commerce for Industry 
        and Security, in coordination with each agency that is part of 
        the Operating Committee for Export Policy, shall require a 
        license for the export, reexport, or in-country transfer of a 
        covered integrated circuit to an entity that is located or 
        headquartered in, or the ultimate parent company of which is 
        headquartered in, a country of concern.
            ``(2) General license prohibited.--The Under Secretary may 
        not issue a general license for the purpose of fulfilling the 
        license requirement in paragraph (1).
    ``(c) Certification to Congress.--
            ``(1) Certification requirement.--Not fewer than 30 days 
        prior to approving any license for the export, reexport, or in-
        country transfer of a covered integrated circuit to an entity 
        that is located or headquartered in, or the ultimate parent 
        company of which is headquartered in, a country of concern, the 
        Under Secretary of Commerce for Industry and Security, in 
        coordination with each agency that is part of the Operating 
        Committee for Export Policy, shall submit to the appropriate 
        congressional committees a copy of the license application, 
        including--
                    ``(A) the quantity of covered integrated circuit, 
                identified by an Export Control Classification Number, 
                as applicable, and by technical parameters of the 
                covered integrated circuit;
                    ``(B) the ultimate consignee or end-user of the 
                covered integrated circuit;
                    ``(C) any and all license conditions;
                    ``(D) a certification that the export, reexport, or 
                in-country transfer of the covered integrated circuit 
                has verifiable and enforceable mechanisms for ensuring 
                the ultimate consignee or end-user has not, does not, 
                and will not support or enable, directly or indirectly, 
                the military, intelligence, surveillance, or cyber-
                enabled capabilities of a country of concern, 
                including--
                            ``(i) an explanation of how the license 
                        conditions support the certification; and
                            ``(ii) in the case that the license 
                        concerns a country of concern that engages in a 
                        military-civil fusion policy or maintains a law 
                        that requires persons to provide support and 
                        assistance to national security bodies, public 
                        security bodies, or relevant military bodies of 
                        the country of concern, details on how the 
                        license conditions address the specific threats 
                        arising from such policy or law;
                    ``(E) a certification that approving the license 
                will not adversely impact the availability of covered 
                integrated circuits for United States persons, 
                including a certification that all of the major 
                subcomponents of the covered integrated circuits, such 
                as high-bandwidth memory, are available in sufficient 
                supply to fulfill the entirety of the demand of United 
                States persons; and
                    ``(F) a certification that approving the license 
                will not adversely impact the advantage of the United 
                States in total nationally-installed processing power 
                capacity relative to the country of concern related to 
                the ultimate consignee or end user of the covered 
                integrated circuit;
                    ``(G) the underlying analyses supporting the 
                certifications required in subparagraphs (D), (E), and 
                (F); and
                    ``(H) a technical assessment (including an 
                alternative assessment by the Director of National 
                Intelligence, if applicable) of how the export, re-
                export, or in-country transfer of the covered 
                integrated circuit to an entity that is located or 
                headquartered in, or the ultimate parent company of 
                which is headquartered in, a country of concern affects 
                the artificial intelligence leadership of the United 
                States, including in terms of global market share, in 
                artificial intelligence models, artificial intelligence 
                cloud services, and covered integrated circuits, 
                respectively.
            ``(2) Limitation.--
                    ``(A) In general.--The license described in 
                subsection (b) may not be issued--
                            ``(i) until the date that is not fewer than 
                        30 days after the committees described 
                        paragraph (1) received the certification 
                        required in such paragraph; and
                            ``(ii) if Congress, prior to the date that 
                        is 30 days after such committees received such 
                        certification, enacts a joint resolution 
                        prohibiting the proposed export, reexport, or 
                        in-country transfer.
                    ``(B) Joint resolution.--
                            ``(i) Consideration in the senate.--Any 
                        joint resolution under this subsection shall be 
                        considered in the Senate in accordance with the 
                        provisions of section 601(b) of the 
                        International Security Assistance and Arms 
                        Export Control Act of 1976 (Public Law 94-329; 
                        90 Stat. 765).
                            ``(ii) Consideration in the house of 
                        representatives.--For the purpose of expediting 
                        the consideration and enactment of joint 
                        resolutions under this subsection, a motion to 
                        proceed to the consideration of any such joint 
                        resolution after it has been reported by the 
                        appropriate committee shall be treated as 
                        highly privileged in the House of 
                        Representatives.
    ``(d) Exemption From Certain License Requirements for Trusted 
United States Persons.--
            ``(1) In general.--The requirement for a license under 
        sections 742.6 and 744.23 of the Export Administration 
        Regulations shall not apply to the export, reexport, or in-
        country transfer of a covered integrated circuit if the covered 
        integrated circuit--
                    ``(A) is destined for a country that is not a 
                country of concern; and
                    ``(B) remains under the ownership and control of a 
                trusted United States person or the subsidiaries of a 
                trusted United States person once the covered 
                integrated circuit is in operation.
            ``(2) Implementation.--Not later than 90 days after the 
        date of the enactment of this section, the Under Secretary of 
        Commerce for Industry and Security, in coordination with each 
        agency that is part of the Operating Committee for Export 
        Policy, shall--
                    ``(A) seek input from the public regarding the 
                standards and requirements a United States person 
                should be required to meet to obtain a designation as a 
                trusted United States person;
                    ``(B) based on such input, prescribe regulations 
                establishing such standards and requirements, which 
                shall include--
                            ``(i) establishment by the United States 
                        person of reasonable security standards, 
                        including physical security, cybersecurity, 
                        remote access, secure covered integrated 
                        circuit repair and disposal procedures, and 
                        other measures designed to prevent the illicit 
                        transfer, diversion, or access to covered 
                        integrated circuits;
                            ``(ii) a requirement that the United States 
                        person may not transfer or install a majority 
                        of its aggregate total processing performance 
                        of covered integrated circuits 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;
                            ``(iv) a preference for sourcing advanced 
                        integrated circuits and subcomponents from 
                        production facilities that support the revival 
                        of semiconductor manufacturing in the United 
                        States; and
                            ``(v) annual audit or attestation 
                        requirements to ensure compliance with clauses 
                        (i), (ii), and (iii); and
                    ``(C) prescribe regulations establishing the 
                process by which the Under Secretary, in coordination 
                with each agency that is part of the Operating 
                Committee for Export Policy, shall approve such a 
                designation.
            ``(3) Allied expansion.--The Under Secretary, in 
        coordination with each agency that is part of the Operating 
        Committee for Export Policy, shall consider options for 
        securely expanding the license exemption program described in 
        this subsection to allies of the United States.
    ``(e) Termination of Licenses.--Any license issued or approved 
prior to the date of the enactment of this section for the export, 
reexport, or in-country transfer of a covered integrated circuit to an 
entity that is located or headquartered in, or the ultimate parent 
company of which is headquartered in, a country of concern is 
terminated.
    ``(f) Temporary Prohibition.--The Under Secretary, in coordination 
with each agency that is part of the Operating Committee for Export 
Policy, shall deny all licenses for the export, reexport, or in-country 
transfer of a covered integrated circuit to an entity that is located 
or headquartered in, or the ultimate parent company of which is 
headquartered in, a country of concern until the date that is 14 days 
after the submission to Congress of the national security strategy 
required in subsection (g).
    ``(g) National Security Strategy.--The Secretary of Commerce, in 
conjunction with the Secretary of State, the Secretary of Defense, the 
Secretary of Energy, the United States Trade Representative, the 
Secretary of the Treasury, and the Director of the White House Office 
of Science and Technology Policy, and in consultation with the Director 
of National Intelligence, shall submit to the appropriate congressional 
committees a strategy that details--
            ``(1) the national security implications of and goals that 
        should govern the physical and remote access by countries of 
        concern to covered integrated circuits, semiconductor 
        manufacturing equipment, and related subcomponents that are 
        from the United States or allies of the United States;
            ``(2) an assessment of the implications of the export, re-
        export, or in-country transfer of covered integrated circuits 
        to countries of concern for the military, intelligence, 
        surveillance, or cyber-enabled capabilities of such countries; 
        and
            ``(3) an assessment by the Director of National 
        Intelligence of the covered integrated circuit production 
        numbers and capabilities of the People's Republic of China for 
        fiscal year 2026, including--
                    ``(A) a determination of whether the Chinese 
                Communist Party would cease or reduce its efforts to 
                pursue indigenous production and use of Chinese-
                designed and manufactured covered integrated circuits 
                if entities located or headquartered in, or the 
                ultimate parent company of which is headquartered in, 
                the People's Republic of China are provided access to 
                covered integrated circuits designed in the United 
                States;
                    ``(B) a comparison of the covered integrated 
                circuit production numbers and capabilities of the 
                People's Republic of China to the covered integrated 
                circuit production numbers and capabilities of the 
                United States and allies of the United States; and
                    ``(C) a quantitative analysis examining the 
                artificial intelligence capabilities of countries of 
                concern if such countries relied solely on indigenous 
                production of covered integrated circuits using 
                indigenously produced manufacturing equipment and 
                related subcomponents.''.
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