[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>