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S 1473119th CongressIn Committee

Stop Stealing our Chips Act

Introduced: Apr 10, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

This bill, titled the Stop Stealing our Chips Act, would amend the Export Control Reform Act of 2018 to create a formal whistleblower incentive program and protections for people who report violations of U.S. export control laws. It establishes a new 1761A section that defines what counts as “original information” and who qualifies as a whistleblower, sets up an online reporting portal (with an option to report anonymously), and creates a framework for expedited reviews and investigations of credible reports. If the information leads to the imposition of fines, the whistleblower could receive an award of 10% to 30% of the collected fines, with rules about joint awards and protections against disclosing the whistleblower’s identity. The bill also imposes anti-retaliation protections for whistleblowers, with civil remedies and confidentiality safeguards, and creates a dedicated Export Compliance Accountability Fund to finance awards, program activities, and enforcement. In addition to incentives and protections, the bill requires funding mechanisms: fines collected from export control actions after enactment would feed the new Fund, which supports the whistleblower program and related activities. There are also provisions for how information may be shared with other government agencies (and foreign authorities) while keeping confidentiality, and it includes a conforming amendment to the Victims of Crime Act of 1984 to recognize the new fund. The overarching aim is to deter misuse and diversion of sensitive technologies (notably AI chips) by boosting enforcement through whistleblower incentives.

Key Points

  • 1Establishes a new whistleblower incentive program under the Export Control Reform Act of 2018, including definitions of “original information” and who qualifies as a whistleblower, with certain exclusions (e.g., federal employees, SDN list).
  • 2Creates an online reporting portal for original information and allows anonymous submissions, with an optional requirement to disclose identity to receive an award in certain cases.
  • 3Implements an accelerated process: initial credibility review within 60 days, formal investigation within 60 days of that review, and a general investigation completion within 180 days unless the case is particularly complex; whistleblowers receive status updates at least every 30 days.
  • 4Awards: whistleblowers may receive 10% to 30% of the fine amount collected from violations that result from the information provided; joint awards are split equally; there are disqualification rules for awards if information was obtained through certain insider roles or criminal means, with specific exceptions.
  • 5Protections and remedies for whistleblowers: prohibition of retaliation by employers, with civil action options, a defined statute of limitations, and remedies including reinstatement, back pay with interest, and legal costs.
  • 6Confidentiality and information-sharing rules: strong protections to keep whistleblower identities confidential, with limited disclosures to law enforcement, regulators, or foreign authorities under established conditions.
  • 7Export Compliance Accountability Fund: a new Treasury fund to finance whistleblower awards, program operations, and enforcement activities; funds come from post-enactment fines and are available without further appropriation, subject to annual deposits and transfers to the general fund if not used.
  • 8Initial funding provisions and a conforming VOCA amendment: BIS funding for start-up expenses before the Fund is funded, and a VOCA amendment to formally recognize the Fund.

Impact Areas

Primary group/area affected:- Whistleblowers and potential informants who have information about export control violations, particularly those involving advanced technologies and AI chips.- The Bureau of Industry and Security (BIS) and the Department of Commerce, which would run the whistleblower program, manage the portal, investigations, and funding.Secondary group/area affected:- Export-controlled entities (manufacturers, exporters, and other organizations) subject to penalties and investigations; potential changes to internal compliance programs and reporting cultures.- Law enforcement and national security agencies that may receive information and collaborate on investigations, including potential sharing with foreign authorities under confidentiality rules.Additional impacts:- Financial: creation of the Export Compliance Accountability Fund funded by fines, used for awards and enforcement; potential impact on the penalties landscape and corporate compliance costs.- Regulatory/administrative: new processes for hotlining, case handling, confidentiality, and expedited investigations; potential changes in how compliance programs are audited and how audits interact with whistleblower disclosures.- Policy and security: stronger incentives to deter and deter the diversion of sensitive tech (notably AI-related chips) to adversaries; potential effects on international cooperation and data-sharing safeguards.The bill emphasizes national security by aiming to reduce illicit exports of leading-edge chips to adversaries via whistleblower-driven enforcement.It includes explicit protections against retaliatory actions, with carefully delineated confidentiality provisions, though it also presents exceptions to ensure essential disclosures can occur in certain investigations.Fiscal mechanics rely on post-enactment fines and a dedicated fund, which could influence enforcement resources and whistleblower awards over time.
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