US HB5885

Requires export licenses for advanced AI chips sold to entities headquartered in or owned by companies in countries of concern (China, Macau, Hong Kong, and countries in Country Groups D:5 or E)

Mandates that license applicants certify they offered U.S. persons a "right of first refusal" with at least 15 days public notice before selling chips to countries of concern; applications without certification will be denied

Creates a "trusted United States person" designation exempting qualifying U.S. companies from certain license requirements when exporting chips to non-concern countries, provided chips remain under their ownership and control

Trusted U.S. person requirements include physical/cybersecurity measures, keeping majority of processing capacity in the U.S., limiting foreign ownership from countries of concern to under 10%, and annual compliance audits

Requires the Under Secretary of Commerce for Industry and Security to issue implementing regulations within 120 days, covering right of first refusal procedures, recordkeeping, and penalties for misrepresentation