119-s2750

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2750 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2750

To require the Director of the Office of Science and Technology Policy 
 to establish a Federal regulatory sandbox program for artificial 
 intelligence, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 10, 2025

 Mr. Cruz introduced the following bill; which was read twice and 
 referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

 A BILL

To require the Director of the Office of Science and Technology Policy 
 to establish a Federal regulatory sandbox program for artificial 
 intelligence, 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 ``Strengthening Artificial 
intelligence Normalization and Diffusion By Oversight and 
eXperimentation Act'' or the ``SANDBOX Act''.

SEC. 2. ARTIFICIAL INTELLIGENCE REGULATORY SANDBOX PROGRAM.

 The National Science and Technology Policy, Organization, and 
Priorities Act of 1976 (42 U.S.C. 6611 et seq.) is amended by adding at 
the end the following:

 ``TITLE VII--ARTIFICIAL INTELLIGENCE REGULATORY SANDBOX PROGRAM

``

SEC. 701. DEFINITIONS.

 ``In this title:
 ``

    (1) Agency.--The term `agency' has the meaning given the 
 term in 

section 551 of title 5, United States Code.
 ``

    (2) Applicable agency.--The term `applicable agency' 
 means an agency that has jurisdiction over the enforcement or 
 implementation of a covered provision for which an applicant is 
 seeking a waiver or modification under the Program.
 ``

    (3) Artificial intelligence; artificial intelligence 
 system.--The terms `artificial intelligence' and `artificial 
 intelligence system' have the meaning given the term 
 `artificial intelligence' in 

section 5002 of the National 
 Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 
 9401).
 ``

    (4) Artificial intelligence development method.--The term 
 `artificial intelligence development method' means a business 
 model or production method that, in whole or in part, uses one 
 or more artificial intelligence systems.
 ``

    (5) Artificial intelligence product or service.--The term 
 `artificial intelligence product or service' means a product or 
 service that uses or contains, in whole or in part, one or more 
 artificial intelligence systems.
 ``

    (6) Covered provision.--The term `covered provision' has 
 the meaning given the term `rule' in 

section 804

    (3) of title 5, 
 United States Code, including any associated guidance, 
 frequently asked questions publications, bulletins, or 
 associated, derivative material and any rule the adoption of 
 which is expressly required by statute.
 ``

    (7) Director.--The term `Director' means the Director of 
 the Office of Science and Technology Policy.
 ``

    (8) Health and safety risk.--The term `health and safety 
 risk' means a risk that is likely to cause--
 ``
        (A) bodily harm to a human life (including life 
 before birth);
 ``
        (B) loss of human life (including life before 
 birth); or
 ``
            (C) a substantial adverse effect on the health of 
 a human (including an unborn human).
 ``

    (9) Program.--The term `Program' means the artificial 
 intelligence regulatory sandbox program established pursuant to 
 

section 702

    (a) .
 ``

    (10) Risk of economic damage.--The term `risk of economic 
 damage' means likely to cause tangible, physical harm to the 
 property or assets of a consumer.
 ``

    (11) Unfair or deceptive trade practice.--The term 
 `unfair or deceptive trade practice'--
 ``
        (A) means an unfair or deceptive act or practice 
 that is declared unlawful pursuant to 

section 5 of the 
 Federal Trade Commission Act (15 U.S.C. 45); or
 ``
        (B) has the meaning given such term in--
 ``
            (i) the Policy Statement of the Federal 
 Trade Commission on Deception, issued on 
 October 14, 1983; or
 ``
            (ii) the Policy Statement of the Federal 
 Trade Commission on Unfairness, issued on 
 December 17, 1980.

``

SEC. 702. ESTABLISHMENT OF ARTIFICIAL INTELLIGENCE REGULATORY SANDBOX 
 PROGRAM.

 ``

    (a) Establishment.--
 ``

    (1) In general.--Not later than one year after the date 
 of the enactment of this Act, the Director shall establish and 
 operate, in accordance with the requirements of this section, 
 an artificial intelligence regulatory sandbox program, under 
 which the Director and persons may apply for a temporary waiver 
 or modification of one or more covered provisions of an 
 applicable agency in order to test, experiment, or temporarily 
 provide to consumers artificial intelligence products or 
 services or artificial intelligence development methods on a 
 limited basis without being subject to the enforcement, 
 licensing, or authorization requirements of such covered 
 provisions.
 ``

    (2) Regulations.--In establishing the Program under 
 paragraph

    (1) , the Director shall--
 ``
        (A) establish an application process for a 
 temporary waiver or modification described in paragraph

    (1) , including the creation of a standardized form for 
 applicants to provide the information required under 
 subsection
            (c) ;
 ``
        (B) establish a process by which the Director may 
 submit an application for a temporary waiver or 
 modification described in paragraph

    (1) in accordance 
 with subsection
            (c) (3) ; and
 ``
            (C) establish a process for review of 
 applications submitted pursuant to a process 
 established under subparagraph
        (A) or
        (B) in accordance 
 with the requirements of this section for assessing 
 whether an application submitted for the Program 
 presents a health and safety risk, a risk of economic 
 damage, or a risk of unfair or deceptive trade 
 practices, which shall be--
 ``
            (i) published in the Federal Register and 
 made publicly available with a detailed list of 
 the criteria used to make such assessments; and
 ``
            (ii) subject to public comment before 
 final publication in the Federal Register.
 ``

    (b) 

=== Purpose ===
-The purpose of the Program is to incentivize--
 ``

    (1) the development of current or new artificial 
 intelligence products and services and artificial intelligence 
 development methods;
 ``

    (2) the expansion of economic opportunities from 
 artificial intelligence development;
 ``

    (3) the creation of jobs from artificial intelligence 
 development; and
 ``

    (4) the creation of opportunities for artificial 
 intelligence innovation in the United States.
 ``
            (c) Application Process for Waivers and Modifications.--
 ``

    (1) In general.--To apply for a waiver or modification 
 under the Program, an applicant shall, pursuant to the process 
 established under subsection

    (a)

    (2)
        (A) , submit to the Director 
 an application therefor that includes--
 ``
        (A) confirmation that the applicant--
 ``
            (i) is subject to the jurisdiction of the 
 Federal Government; and
 ``
            (ii) has established, or plans to 
 establish not later than 180 days after the 
 date on which the applicant enters into a 
 written agreement under subsection

    (e) , a 
 business that is incorporated or has a 
 principal place of business in the United 
 States from which the artificial intelligence 
 products or services or artificial intelligence 
 development methods are deployed;
 ``
        (B) relevant contact information, including the 
 legal name, address, telephone number, email address, 
 and website of the applicant;
 ``
            (C) a description of any criminal conviction of 
 the applicant or any senior management personnel or 
 director of the business of the applicant; and
 ``
            (D) a description of any artificial intelligence 
 product or service or artificial intelligence 
 development method to be tested, experimented, or 
 deployed for which the applicant is requesting a waiver 
 or modification, and for each such artificial 
 intelligence product or service or artificial 
 intelligence development method--
 ``
            (i) identification of each covered 
 provision that the applicant seeks to have 
 waived or modified during participation in the 
 Program and the reasons why the waiver or 
 modification is needed;
 ``
            (ii) a description of the manner by which 
 the product or service or development method 
 would--
 ``
            (I) benefit consumers;
 ``
            (II) enhance the operational 
 efficiency of the business of the 
 applicant;
 ``
            (III) expand economic 
 opportunities;
 ``
            (IV) create jobs; or
 ``
            (V) further the innovation or 
 development of artificial intelligence;
 ``
            (iii) an explanation of how potential 
 benefits of the product or service or 
 development method outweigh the risks, taking 
 into account any mitigation measures, which 
 shall include--
 ``
            (I) a description of the 
 reasonably foreseeable risks associated 
 with waiving or modifying each covered 
 provision identified under clause
            (i) during participation in the Program, 
 including any--
 ``

    (aa) health and safety 
 risk;
 ``

    (bb) risk of economic 
 damage; and
 ``
            (cc) risk of unfair or 
 deceptive trade practices;
 ``
            (II) the manner in which the 
 applicant intends to reasonably 
 mitigate any risk identified pursuant 
 to subclause
            (I) ;
 ``
            (iv) the requested time periods for which 
 the waiver or modification of each covered 
 provision identified under clause
            (i) would 
 apply;
 ``
            (v) confirmation that the applicant 
 understands that the applicant will be subject 
 to and must comply with all statutes and 
 regulations after the conclusion of testing, 
 experimenting, or deploying such product or 
 service or development method under the 
 Program; and
 ``
            (vi) a list of each agency that may have 
 jurisdiction, in whole or in part, over the 
 product or service or development method to be 
 tested, experimented, or deployed by the 
 applicant.
 ``

    (2) Assistance.--The Director may, upon request, consult 
 with an applicant and provide assistance completing an 
 application described in paragraph

    (1) , including by--
 ``
        (A) identifying--
 ``
            (i) the likely covered provisions that 
 could be relevant and eligible for a waiver or 
 modification under the Program; and
 ``
            (ii) the agencies with authority over the 
 covered provisions identified under clause
            (i) ; 
 and
 ``
        (B) providing anonymized information on other 
 relevant applications or aggregate applicant trends.
 ``

    (3) Director-submitted application.--The Director may 
 submit an application to waive or modify any covered provision 
 under the Program, if in the opinion of the Director the waiver 
 or modification proposed in the application will advance the 
 development, deployment, or use of artificial intelligence in 
 the United States.
 ``
            (d) Agency Review.--
 ``

    (1) Transmission.--Not later than 14 days after the date 
 on which the Director receives a completed application under 
 paragraph

    (1) of subsection
            (c) or submits a completed 
 application under paragraph

    (3) of that subsection, the 
 Director shall submit a copy of the application to the head of 
 each applicable agency.
 ``

    (2) Review.--The head of an applicable agency shall 
 review an application received under paragraph

    (1) with respect 
 to the covered provision or provisions under the jurisdiction 
 of the agency and solicit input, and demonstrate due 
 consideration of such input, from the private sector and 
 technical experts with relevance to the Program, on--
 ``
        (A) whether the plan of the applicant with 
 respect to testing, experimenting, or deploying an 
 artificial intelligence product or service or an 
 artificial intelligence development method would--
 ``
            (i) benefit consumers;
 ``
            (ii) enhance the operational efficiency 
 of the business of the applicant;
 ``
            (iii) expand economic opportunities;
 ``
            (iv) create jobs; or
 ``
            (v) further the innovation or development 
 of artificial intelligence; and
 ``
        (B) whether the potential benefits of the plan 
 outweigh any--
 ``
            (i) health and safety risk;
 ``
            (ii) risk of economic damage; and
 ``
            (iii) risk of unfair or deceptive trade 
 practices.
 ``

    (3) Method.--The head of an applicable agency may conduct 
 its review of applications received under paragraph

    (2) by 
 establishing advisory boards or working groups to review and 
 provide input on the applications.
 ``

    (4) Agency decision.--
 ``
        (A) In general.--Subject to subparagraph
        (B) , the 
 head of an applicable agency who receives a copy of an 
 application under paragraph

    (1) shall, taking into 
 consideration the recommendations of the advisory board 
 of the applicable agency, make the agency decision to 
 grant or deny the application with respect to the 
 covered provision or provisions requested to be waived 
 or modified that are under the jurisdiction of the 
 agency.
 ``
        (B) In part approval.--If more than one 
 applicable agency receives a copy of an application 
 under paragraph

    (1) --
 ``
            (i) the head of each applicable agency, 
 with input from the advisory board of the 
 applicable agency, shall grant or deny the 
 waiver or modification of each covered 
 provision over which the applicable agency has 
 jurisdiction; and
 ``
            (ii) 
            (I) if each applicable agency that 
 receives an application under paragraph

    (1) grants the request for a waiver or 
 modification, the Director shall grant the 
 entire application; or
 ``
            (II) if an applicable agency denies part 
 of an application and another applicable agency 
 grants part of the application, the Director 
 shall approve the application in part and 
 specify in the decision which covered 
 provisions are waived or modified.
 ``

    (5) Record of agency decision.--
 ``
        (A) In general.--Not later than 90 days after 
 receiving a copy of an application under paragraph

    (1) , 
 the head of an applicable agency shall approve or deny 
 the application and submit to the Director a record of 
 the agency decision.
 ``
        (B) Elements.--The record of the agency decision 
 required by subparagraph
        (A) to be submitted by the 
 head of an applicable agency shall include--
 ``
            (i) a description of each covered 
 provision over which the applicable agency has 
 jurisdiction for enforcement or implementation 
 that the applicant is seeking to have waived or 
 modified and a list of the reasonably 
 foreseeable risks, if any, that could result 
 from the requested waiver or modification, 
 including any--
 ``
            (I) health and safety risk;
 ``
            (II) risk of economic damage; and
 ``
            (III) risk of unfair or deceptive 
 trade practices;
 ``
            (ii) if the application is approved, a 
 description, if applicable, of--
 ``
            (I) the manner by which the 
 applicant will mitigate the risks 
 identified in clause
            (i) ; and
 ``
            (II) the manner by which 
 consumers will be protected during the 
 term for which the waiver or 
 modification remains in effect;
 ``
            (iii) if the head of the applicable 
 agency denies the waiver or modification--
 ``
            (I) a description of the reasons 
 for the denial, including--
 ``

    (aa) an explanation of 
 the manner by which a waiver or 
 modification could cause any of 
 the risks described in clause
            (i) ; and
 ``

    (bb) the likelihood of 
 such reasonably foreseeable 
 risks occurring; and
 ``
            (II) the reasons why the 
 application cannot be approved in part 
 or reformed to mitigate the risks 
 described under subclause
            (I) (aa) and 
 any information the head of the 
 applicable agency relied on to support 
 these reasons; and
 ``
            (iv) if the head of the applicable agency 
 would deny the waiver or modification unless 
 the risks described in clause
            (i) are 
 mitigated, a recommendation of the means by 
 which the applicant can mitigate such risks.
 ``
            (C) No record submitted.--If the head of the 
 applicable agency does not submit a record of the 
 agency decision by the deadline required by 
 subparagraph
        (A) , the Director shall presume that the 
 head of the applicable agency does not object to the 
 granting of the waiver or modification requested by the 
 applicant and may proceed with the application.
 ``
            (D) Extension.--The head of the applicable agency 
 may request one 30-day extension of the deadline 
 required by subparagraph
        (A) for submission of the 
 record of the agency decision.
 ``
        (E) Expedited review.--If the head of the 
 applicable agency provides a recommendation described 
 in subparagraph
        (B)
            (iv) , the Director shall provide the 
 applicant 60 days to make necessary changes to the 
 application, and the applicant may resubmit the 
 application to the head of the applicable agency for 
 expedited review of not more than 60 days from the date 
 of resubmission of the completed application.
 ``

    (e) Written Agreement.--
 ``

    (1) In general.--If the head of an agency, or the 
 Director upon an appeal under subsection

    (g) , grants the entire 
 application or part of the application under subsection
            (d) (4) , 
 any waiver or modification requested shall not be effective 
 until the applicant enters into a written agreement with the 
 Director and the head of the agency that describes--
 ``
        (A) each covered provision that is waived or 
 modified under the Program; and
 ``
        (B) the terms the applicant shall abide by to 
 mitigate any risk described in the record of the agency 
 decision pursuant to subsection
            (d) (5)
        (B)
            (i) .
 ``

    (2) Requirement.--Each written agreement entered into 
 under paragraph

    (1) shall include a requirement that the 
 applicant notify the Director and the head of any relevant 
 applicable agency of any incident that results in harm to the 
 health and safety of a consumer, economic damage, or an unfair 
 or deceptive trade practice under the Program not later than 72 
 hours after the incident occurs.
 ``

    (3) Timeline.--The Director shall provide to the 
 applicant a copy of the written agreement described in 
 paragraph

    (1) not later than 45 days after the date on which 
 the application is granted, in part or in whole, under 
 subsection
            (d) (4) .
 ``

    (f) Publication of Director-Submitted Applications and 
Utilization by Applicants.--
 ``

    (1) In general.--If the head of an agency, or the 
 Director upon an appeal under subsection

    (g) , grants a 
 Director-submitted application, in whole or part, under 
 subsection
            (d) (4) , the Director shall publish in the Federal 
 Register notice of any waiver or modification granted and any 
 information required to be submitted to the Director for an 
 applicant to utilize such waiver or modification under 
 paragraph

    (2) .
 ``

    (2) Authority.--In the case described in paragraph

    (1) , 
 any person may submit an application to utilize such waiver or 
 modification, pursuant to fulfilling the requirements of 
 subsection

    (e) and any requirement developed by the Director 
 under paragraph

    (3) .
 ``

    (3) Process for utilization.--The Director may develop a 
 standardized process for the submission and consideration of an 
 application to utilize a waiver or modification of a covered 
 provision granted under paragraph

    (1) .
 ``

    (g) Appeals.--
 ``

    (1) In general.--If the head of an applicable agency 
 denies an application under subsection
            (d) (4) , the applicant 
 may submit to the Director an appeal for reconsideration, or in 
 the case of a Director-submitted application shall prepare a 
 statement, which shall--
 ``
        (A) address the comments in the record of the 
 agency decision submitted under subsection
            (d) (5) that 
 resulted in denial of the application; and
 ``
        (B) include the manner by which the applicant 
 plans to mitigate the risks identified in the record of 
 the agency decision.
 ``

    (2) Response.--Not later than 60 days after receiving an 
 appeal under paragraph

    (1) , the Director shall--
 ``
        (A) determine whether the appeal sufficiently 
 addresses the concerns raised in the record of the 
 agency decision submitted under subsection
            (d) (5) ; and
 ``
        (B)
            (i) if the Director determines that the appeal 
 sufficiently addresses the concerns, file a record of 
 the agency decision and provide a statement detailing 
 how the concerns have been mitigated and approve the 
 application; or
 ``
            (ii) if the Director determines that the appeal 
 does not sufficiently address the concerns, file a 
 record of the agency decision and provide a statement 
 detailing how the concerns have not been mitigated and 
 deny the application.
 ``

    (h) Judicial Review.--For purposes of review under 

section 704 of 
title 5, United States Code, the following shall be considered a final 
agency action:
 ``

    (1) A record of the agency decision submitted under 
 subsection
            (d) (5) .
 ``

    (2) The granting of a request to renew a waiver or 
 modification under subsection
            (i) (3)
            (C) .
 ``

    (3) The failure of the Director to provide a written 
 agreement subject to the terms of subsection

    (e) .
 ``

    (4) The revocation of a waiver or modifications under 
 subsection

    (j) .
 ``
            (i) Period of Waiver or Modification.--
 ``

    (1) Initial period.--Except as provided in this 
 subsection, a waiver or modification granted under the Program 
 shall be for a term of 2 years.
 ``

    (2) Notification before ending offering.--If a person 
 decides to end deployment of its artificial intelligence 
 product, service, or method before the end of the initial 
 period described in paragraph

    (1) , the person shall, not later 
 than 30 days before the date on which the person ends 
 deployment of the product, service, or method, submit to the 
 Director a report on actions taken by the person to ensure 
 consumers have not been harmed as a result of the termination 
 of the product, service, or method.
 ``

    (3) Renewal.--
 ``
        (A) In general.--The person granted a waiver or 
 modification under the Program may request for renewal 
 of the waiver or modification for a maximum of 4 
 additional 2-year periods.
 ``
        (B) Notification.--Not later than 30 days before 
 the end of an initial period under paragraph

    (1) , a 
 person that is granted a waiver or modification under 
 the Program shall notify the Director if the person 
 intends to seek renewal under subparagraph
        (A) .
 ``
            (C) Decision.--The Director shall grant a request 
 made pursuant to subparagraph
        (A) , unless the Director 
 determines that--
 ``
            (i) relevant information or circumstances 
 have materially changed since the waiver or 
 modification was granted and the person must 
 submit a new or amended application; or
 ``
            (ii) the person granted the waiver or 
 modification is not in compliance with the 
 terms of the written agreement entered into 
 pursuant to subsection

    (e) and the person is 
 unable to correct the action under subsection

    (j)

    (2) .
 ``

    (j) Revocation.--If the Director determines that a person that 
was granted a waiver or modification under the Program is not in 
compliance with the terms of the written agreement entered into 
pursuant to subsection

    (e) , the Director--
 ``

    (1) shall give the person 30 days to correct the action, 
 or additional 30-day periods if the Director considers it 
 appropriate;
 ``

    (2) if the person does not correct the action by the end 
 of the 30-day period, the Director may end the participation of 
 the person in the Program by revoking the waiver or 
 modification.
 ``

    (k) Terms.--A person for which a waiver or modification is 
granted under the Program shall be subject to the following terms:
 ``

    (1) No existing right of action of a consumer to seek 
 actual damages or an equitable remedy may be waived or modified 
 under the Program.
 ``

    (2) While a waiver or modification is in effect, and the 
 person is in compliance with the written agreement entered into 
 pursuant to subsection

    (e) , the person shall not be subject to 
 the criminal or civil enforcement of a covered provision 
 specifically identified in the waiver or modification.
 ``

    (3) An agency may not file or pursue any punitive action 
 against the person during the period for which the waiver or 
 modification is in effect, including a civil penalty, fine, or 
 license suspension or revocation for a violation of a covered 
 provision identified in the waiver or modification, unless the 
 person is not in compliance with the written agreement entered 
 into pursuant to subsection

    (e) .
 ``

    (4) The person shall not have immunity related to any 
 criminal offense that is not expressly identified in the waiver 
 or modification.
 ``

    (5) The Federal Government shall not be responsible for 
 any business losses if the waiver or modification is revoked at 
 any time, including any action brought under 

section 1346

    (b) or 
 1491 of title 28, United States Code.
 ``

    (6) The person shall notify the Director and the head of 
 any applicable agency of any incident that results in harm to 
 the health and safety of a consumer, economic damage, or an 
 unfair or deceptive trade practice under the Program not later 
 than 72 hours after the incident occurs.
 ``

    (7) The person shall abide by all terms of the written 
 agreement entered into pursuant to subsection

    (e) .
 ``
            (l) Consumer Protection.--Before deploying an artificial 
intelligence product or service to consumers under a waiver or 
modification granted under the Program, and throughout the period the 
waiver or modification remains in effect, a person shall disclose, 
through a publicly accessible website or similar public means, the 
following to consumers:
 ``

    (1) The name and contact information of the person.
 ``

    (2) A description of the participation of the person in 
 the Program, and if applicable, disclosure that the person does 
 not have a license or other authorization to provide artificial 
 intelligence products or services under provisions not waived 
 or modified under the Program.
 ``

    (3) If applicable, that the artificial intelligence 
 product or service is undergoing testing and may not function 
 as intended and may expose the consumer to certain risks as 
 identified in the record of the agency decision of the 
 applicable agency submitted under subsection
            (d) (5) .
 ``

    (4) That the person is not immune from existing civil 
 liability for any loss or damage caused by the artificial 
 intelligence product or service.
 ``

    (5) That the person is not immune from criminal 
 prosecution for violations of covered provisions that are not 
 waived or modified under the Program.
 ``

    (6) That the artificial intelligence product or service 
 is a temporary demonstration and may be discontinued at the end 
 of the initial period under paragraph

    (1) of subsection
            (i) or 
 before the end of the initial period under paragraph

    (2) of 
 that subsection.
 ``

    (7) The expected commencement date of the initial period 
 under subsection
            (i) (1) .
 ``

    (8) The contact information of the National Artificial 
 Intelligence Initiative Office and that the consumer may 
 contact the Initiative Office to file a complaint.
 ``
            (m) Record Keeping.--
 ``

    (1) In general.--A person who is granted a waiver or 
 modification under the Program shall retain all records, 
 documents, and data directly related to the participation of 
 the person in the Program.
 ``

    (2) Request for documents.--Upon request by the Director, 
 a person granted a waiver or modification under the Program 
 shall make available for inspection any record, document, or 
 data retained under paragraph

    (1) .
 ``

    (n) Reports.--
 ``

    (1) Persons granted a waiver or modification.--
 ``
        (A) In general.--Each person who is granted a 
 waiver or modification under the Program shall submit 
 to the Director a report that includes--
 ``
            (i) if applicable, the number of 
 consumers participating in or receiving the 
 artificial intelligence product or service or 
 the artificial intelligence development method 
 offered by the person under the Program;
 ``
            (ii) an assessment of the likely risks 
 and the manner by which the person is 
 mitigating those risks, consistent with the 
 terms of the written agreement entered into 
 under subsection

    (e) ;
 ``
            (iii) an identification of any previously 
 unanticipated risks that have manifested during 
 the deployment of the artificial intelligence 
 product or service or the artificial 
 intelligence development method;
 ``
            (iv) a description of any adverse 
 incident and any action taken by the person to 
 repair the harm to consumers; and
 ``
            (v) a description of the benefits of the 
 waiver or modification, including, if 
 applicable, studies, surveys, financial 
 benefits, or additional quantitative measures 
 demonstrating such benefits.
 ``
        (B) Timing.--Each person shall submit a report 
 required under subparagraph
        (A) --
 ``
            (i) 40 days after the commencement of the 
 period for which a waiver or modification is 
 granted under the Program;
 ``
            (ii) 30 days after the halfway mark of 
 the period for which a waiver or modification 
 is granted under the Program; and
 ``
            (iii) 30 days before the expiration of--
 ``
            (I) the period for which a waiver 
 or modification is initially granted 
 under the Program; and
 ``
            (II) each 2-year period for which 
 the waiver or modification is renewed 
 under subsection
            (i) (3) .
 ``

    (2) Annual report to congress.--Not later than 1 year 
 after the date of the enactment of the Strengthening Artificial 
 intelligence Normalization and Diffusion By Oversight and 
 eXperimentation Act, and annually thereafter, the Director 
 shall submit to Congress a report on the Program, which shall 
 include, for the 1-year period preceding the submission of the 
 report--
 ``
        (A) the number of applications approved received 
 and the number of applications approved;
 ``
        (B) the name and a description of each applicant 
 that was granted a waiver or modification under the 
 Program;
 ``
            (C) a description of the benefits to the public 
 from the Program;
 ``
            (D) a description of any harm to the public from 
 the Program;
 ``
        (E) the covered provisions that have been waived 
 or modified and the number of times such provisions 
 have been waived or modified;
 ``
        (F) the total number of consumers affected by 
 such waivers or modifications described in subsection
        (E) ; and
 ``
        (G) all applicant, Director, and agency materials 
 related to the Program.
 ``

    (o) Coordination With State Artificial Intelligence Programs.--
The Director shall--
 ``

    (1) establish mechanisms for sharing information with 
 State programs that are similar or comparable to the Program;
 ``

    (2) coordinate application review processes where 
 jurisdictions overlap;
 ``

    (3) accept joint applications for projects benefitting 
 from both Federal and State regulatory relief; and
 ``

    (4) work to harmonize testing approaches whenever 
 feasible.
 ``

    (p) Rule of Construction.--Nothing in this section shall be 
construed--
 ``

    (1) to require a person that is granted a waiver or 
 modification under the Program to publicly disclose proprietary 
 information, including trade secrets or commercial or financial 
 information that is privileged or confidential; or
 ``

    (2) to affect any other provision of law that is not 
 included in a waiver or modification provided under the 
 Program.
 ``

    (q) Sunset.--The Program shall terminate on the date that is 12 
years after the date on which the Director establishes the Program 
under subsection

    (a) .

``

SEC. 703. CONGRESSIONAL REVIEW OF COVERED PROVISIONS.

 ``

    (a) Joint Resolution of Approval Defined.--In this section, the 
term `joint resolution of approval' means only a joint resolution of 
either House of Congress--
 ``

    (1) the matter after the resolving clause of which 
 contains only--
 ``
        (A) a list of some or all of the covered 
 provisions that were identified under subsection

    (b)

    (1) in a special message submitted to Congress under that 
 subsection; and
 ``
        (B) a provision that immediately repeals or 
 adopts amendments to the covered provisions listed 
 under subparagraph
        (A) upon enactment of the joint 
 resolution of approval; and
 ``

    (2) upon which Congress completes action before the end 
 of the first period of 60 legislative days after the date on 
 which the special message is received by Congress.
 ``

    (b) Submission.--
 ``

    (1) In general.--Not later than the first day on which 
 both Houses of Congress are in session after May 1 of each 
 year, the Director of the Office of Science and Technology 
 Policy (in this section referred to as the `Director') shall 
 submit to Congress a special message that details each covered 
 provision that the Director recommends should be amended or 
 repealed as a result of persons being able to operate safely 
 without those covered provisions under the artificial 
 intelligence regulatory sandbox program established under 
 

section 5107

    (b) .
 ``

    (2) Elements.--The special message submitted under 
 paragraph

    (1) shall include--
 ``
        (A) a list of each covered provision waived or 
 modified and how many times that provision has been 
 waived or modified;
 ``
        (B) a list of each covered provision that is the 
 subject of an application for waiver or modification 
 that has been denied, how many times applications have 
 been denied, and a summary of the reasons behind such 
 denial;
 ``
            (C) a list of any covered provision that the 
 Director determines should be repealed, for any reason, 
 including a brief rationale for the Director's 
 determination;
 ``
            (D) a list of any covered provision that the 
 Director determines should be amended, including the 
 recommended textual changes to the covered provision, 
 including a brief rationale for the Director's 
 determination; and
 ``
        (E) an explanation of why each covered provision 
 described in subparagraphs
        (A) and
        (B) should be 
 amended or repealed.
 ``

    (3) Delivery to house and senate; printing.--Each special 
 message submitted under paragraph

    (1) shall be--
 ``
        (A) delivered to the Clerk of the House of 
 Representatives and the Secretary of the Senate; and
 ``
        (B) printed in the Congressional Record.
 ``
            (c) Approval by Congress.--
 ``

    (1) Introduction.--Beginning on the date on which the 
 Director submits a special message to Congress under subsection

    (b)

    (1) , any member of the Senate or House of Representative may 
 introduce a joint resolution of approval relating to the 
 special message.
 ``

    (2) Consideration in house of representatives.--
 ``
        (A) Committee referral.--A joint resolution of 
 approval introduced in the House of Representatives 
 shall be referred to the appropriate committee of the 
 House of Representatives.
 ``
        (B) Reporting and discharge.--If the committee to 
 which a joint resolution of approval has been referred 
 to has not reported the joint resolution of approval 
 within 10 legislative days after the date of referral, 
 the committee shall be discharged from further 
 consideration of the joint resolution.
 ``
            (C) Proceeding to consideration.--Beginning on 
 the third legislative day after the committee to which 
 a joint resolution of approval has been referred 
 reports the joint resolution of approval to the House 
 or has been discharged from further consideration 
 thereof, it shall be in order to move to proceed to 
 consider the joint resolution of approval in the House. 
 All points of order against the motion are waived. Such 
 a motion shall not be in order after the House has 
 disposed of a motion to proceed on the joint resolution 
 of approval. The previous question shall be considered 
 as ordered on the motion to its adoption without 
 intervening motion. The motion shall not be debatable. 
 A motion to reconsider the vote by which the motion is 
 disposed of shall not be in order.
 ``
            (D) Floor consideration.--The joint resolution of 
 approval shall be considered as read. All points of 
 order against the joint resolution of approval and 
 against its consideration are waived. The previous 
 question shall be considered as ordered on the joint 
 resolution of approval to final passage without 
 intervening motion except 2 hours of debate equally 
 divided and controlled by the sponsor of the joint 
 resolution of approval (or a designee) and an opponent. 
 A motion to reconsider the vote on passage of the joint 
 resolution of approval shall not be in order.
 ``

    (3) Consideration in the senate.--
 ``
        (A) Committee referral.--A joint resolution of 
 approval introduced in the Senate shall be referred to 
 the appropriate committee of the Senate.
 ``
        (B) Reporting and discharge.--If the committee to 
 which a joint resolution has been referred has not 
 reported the joint resolution of approval within 10 
 legislative days after the date of referral of the 
 joint resolution, the committee shall be discharged 
 from further consideration of the joint resolution and 
 the joint resolution shall be placed on the appropriate 
 calendar.
 ``
            (C) Proceeding to consideration.--Notwithstanding 
 Rule XXII of the Standing Rules of the Senate, it is in 
 order at any time after the committee to which a joint 
 resolution has been referred reports a joint resolution 
 of approval or has been discharged from consideration 
 of such a joint resolution to move to proceed to the 
 consideration of the joint resolution of approval. The 
 motion to proceed is not debatable. The motion is not 
 subject to a motion to postpone. A motion to reconsider 
 the vote by which the motion is agreed to or disagreed 
 to shall not be in order.
 ``
            (D) Rulings of the chair on procedure.--Appeals 
 from the decisions of the Chair relating to the 
 application of the rules of the Senate to the procedure 
 relating to a joint resolution of approval shall be 
 decided by the Senate without debate.
 ``

    (4) Rules relating to senate and house of 
 representatives.--
 ``
        (A) Treatment of senate joint resolution of 
 approval in house.--In the House of Representatives, 
 the following procedures shall apply to a joint 
 resolution of approval received from the Senate (unless 
 the House has already passed a joint resolution 
 relating to the same proposed action):
 ``
            (i) The joint resolution of approval 
 shall be referred to the appropriate committee 
 of the House of Representatives.
 ``
            (ii) If the committee to which a joint 
 resolution of approval has been referred has 
 not reported the joint resolution of approval 
 within 2 legislative days after the date of 
 referral, the committee shall be discharged 
 from further consideration of the joint 
 resolution.
 ``
            (iii) Beginning on the third legislative 
 day after the committee to which a joint 
 resolution has been referred reports the joint 
 resolution of approval to the House or has been 
 discharged from further consideration thereof, 
 it shall be in order to move to proceed to 
 consider the joint resolution of approval in 
 the House. All points of order against the 
 motion are waived. Such a motion shall not be 
 in order after the House has disposed of a 
 motion to proceed on the joint resolution of 
 approval. The previous question shall be 
 considered as ordered on the motion to its 
 adoption without intervening motion. The motion 
 shall not be debatable. A motion to reconsider 
 the vote by which the motion is disposed of 
 shall not be in order.
 ``
            (iv) The joint resolution of approval 
 shall be considered as read. All points of 
 order against the joint resolution and against 
 its consideration are waived. The previous 
 question shall be considered as ordered on the 
 joint resolution to final passage without 
 intervening motion except 2 hours of debate 
 equally divided and controlled by the sponsor 
 of the joint resolution of approval (or a 
 designee) and an opponent. A motion to 
 reconsider the vote on passage of the joint 
 resolution of approval shall not be in order.
 ``
        (B) Treatment of house joint resolution of 
 approval in senate.--
 ``
            (i) Receipt before passage.--If, before 
 the passage by the Senate of a joint resolution 
 of approval, the Senate receives an identical 
 joint resolution of approval from the House of 
 Representatives, the following procedures shall 
 apply:
 ``
            (I) That joint resolution of 
 approval shall not be referred to a 
 committee.
 ``
            (II) With respect to that joint 
 resolution of approval--
 ``

    (aa) the procedure in the 
 Senate shall be the same as if 
 no joint resolution had been 
 received from the House of 
 Representatives; but
 ``

    (bb) the vote on passage 
 shall be on the joint 
 resolution from the House of 
 Representatives.
 ``
            (ii) Receipt after passage.--If, 
 following passage of a joint resolution of 
 approval in the Senate, the Senate receives an 
 identical joint resolution of approval from the 
 House of Representatives, that joint resolution 
 shall be placed on the appropriate Senate 
 calendar.
 ``
            (iii) No companion measure.--If a joint 
 resolution of approval is received from the 
 House, and no companion joint resolution of 
 approval has been introduced in the Senate, the 
 Senate procedures under this subsection shall 
 apply to the House joint resolution of 
 approval.
 ``
            (C) Application to revenue measures.--The 
 provisions of this paragraph shall not apply in the 
 House of Representatives to a joint resolution that is 
 a revenue measure.
 ``

    (5) Rules of house of representatives and senate.--This 
 subsection is enacted by Congress--
 ``
        (A) as an exercise of the rulemaking power of the 
 Senate and the House of Representatives, respectively, 
 and as such is deemed a part of the rules of each 
 House, respectively, and supersedes other rules only to 
 the extent that it is inconsistent with such rules; and
 ``
        (B) with full recognition of the constitutional 
 right of either House to change the rules (so far as 
 relating to the procedure of that House) at any time, 
 in the same manner, and to the same extent as in the 
 case of any other rule of that House.''.
 <all>