[Congressional Record Volume 172, Number 106 (Wednesday, June 24, 2026)]
[Senate]
[Page S3509]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 6382. Ms. CORTEZ MASTO submitted an amendment intended to be 
proposed by her to the bill S. 4784, to authorize appropriations for 
fiscal year 2027 for military activities of the Department of Defense, 
for military construction, and for defense activities of the Department 
of Energy, to prescribe military personnel strengths for such fiscal 
year, and for other purposes; which was ordered to lie on the table; as 
follows:

        At the end of subtitle G of title X, add the following:

     SEC. 1094. CERTIFICATION PROGRAM FOR FACILITIES THAT 
                   MANUFACTURE INTEGRATED CIRCUITS.

       (a) Clean Fabrication Facilities Certification Program.--
       (1) Certification.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary of Commerce shall 
     issue regulations requiring any facility located outside of a 
     country subject to a comprehensive United States arms embargo 
     that engages in the production of integrated circuits to 
     attest, on an annual basis, that--
       (A) the facility does not and will not use any 
     semiconductor manufacturing equipment that was produced by an 
     entity of concern; and
       (B) if the facility does use semiconductor manufacturing 
     equipment that was produced by an entity of concern, the 
     facility will phase out the use of that equipment not later 
     than 1 year after the submission of the certification.
       (2) Compliance.--
       (A) In general.--For the purpose of encouraging compliance 
     with regulations issued pursuant to paragraph (1), the 
     Secretary may issue regulations that require, for any 
     facility that does not complete the certification 
     requirements described in paragraph (1)--
       (i) a license for the export, reexport, and in-country 
     transfer of items subject to the jurisdiction of the United 
     States to any such facility located outside of the United 
     States; and
       (ii) special authorization for any such facility that is 
     located in the United States to engage in transactions that 
     involve a country subject to a comprehensive United States 
     arms embargo.
       (B) Review policy.--In the regulations issued pursuant to 
     subparagraph (A), the Secretary shall include a review policy 
     for applications for licenses or special authorizations 
     that--
       (i) applies on a case-by-case basis; and
       (ii) takes into account the national security risk 
     associated with the facility continuing to use semiconductor 
     manufacturing equipment produced by an entity of concern.
       (C) Authorization to enforce compliance.--To implement the 
     regulations issued pursuant to subparagraph (A), the 
     Secretary may--
       (i) update the foreign direct product rule to subject a 
     foreign-produced item to the jurisdiction of the United 
     States if the item--

       (I) is the direct product of technology or software that is 
     subject to the Export Administration Regulation; or
       (II) is or contains the product of a complete plant or 
     major component of a plant that is a direct product of an 
     item, including technology or software, that is subject to 
     the Export Administration Regulation; and

       (ii) issue a new rule that regulates or restricts 
     transactions between a United States persons and an entity of 
     concern.
       (3) Penalties.--
       (A) Failure to certify.--A facility that fails to complete 
     the certification required under paragraph (1) and that 
     receives an item subject to the Export Administration 
     Regulations shall be deemed to have committed a violation of 
     section 1760 of the Export Control Reform Act of 2018 (50 
     U.S.C. 4819) and the penalties set forth in subsections (b) 
     and (c) of that section shall apply to the same extent that 
     such penalties apply to a person who commits a violation of 
     that section.
       (B) False certification.--Any person that knowingly submits 
     a certification under paragraph (1) that contains a 
     materially false statement or misrepresentation shall be 
     deemed to have committed a violation of section 1760 of the 
     Export Control Reform Act of 2018 (50 U.S.C. 4819) and the 
     criminal penalties set forth in subsection (b) of that 
     section shall apply to the same extent that such penalties 
     apply to a person who commits a criminal violation of that 
     section.
       (b) Definitions.--In this section:
       (1) The term ``advanced semiconductor manufacturing 
     equipment'' means any semiconductor fabrication, assembly, 
     test, or packaging equipment that enables the production of 
     commercially available integrated circuits.
       (2) The term ``country subject to a comprehensive United 
     States arms embargo'' means Macau and any country listed in 
     Country Group D:5 in Supplement No. 1 to part 740 of the 
     Export Administration Regulations.
       (3) The term ``entity of concern'' means an entity 
     headquartered in, or the ultimate parent company of which is 
     headquartered in, a country subject to a comprehensive United 
     States arms embargo.
       (4) The terms ``export'', ``Export Administration 
     Regulations'', ``in-country transfer'', ``reexport'', and 
     ``United States person'' have the meanings given such terms 
     in section 1742 of the Export Control Reform Act of 2018 (50 
     U.S.C. 4801).
                                 ______