Regulon — US-S-2750 · US S 2750 (SANDBOX Act)

WHAT THIS BILL REGULATES · 4 REQUIREMENT TYPES

How Is This Bill Enforced

Enforcement Authority

The Director of the Office of Science and Technology Policy (OSTP) administers the Program. Applicable federal agencies review and grant or deny waiver applications. Agencies may revoke waivers for non-compliance. Judicial review is available under 5 U.S.C. § 704 for final agency actions including agency decisions, renewal grants, failure to provide written agreements, and revocations. No private right of action is created.

Private Right of Action

No private right of action. Enforcement is exclusive to the designated authority.

Penalties

The bill does not create new monetary penalties or damages. Existing consumer rights of action for actual damages and equitable remedies are expressly preserved and may not be waived under the Program. Agencies may revoke waivers and pursue punitive actions (civil penalties, fines, license suspensions) for non-compliance with written agreement terms.

Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.

Statutory Text

Analysis & Obligations

§ 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''.

Section 1 establishes the short title of the Act as the SANDBOX Act (Strengthening Artificial intelligence Normalization and Diffusion By Oversight and eXperimentation Act). This section creates no compliance obligations.

§ 701

Definitions

(1)–(11) ''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.

Section 701 defines eleven terms used throughout the new Title VII. Notable definitions include artificial intelligence, which incorporates the existing federal definition from the National Artificial Intelligence Initiative Act of 2020; covered provision, which broadly encompasses agency rules, guidance, FAQs, bulletins, and derivative materials; and health and safety risk, which explicitly includes risks to life before birth. The definition of unfair or deceptive trade practice ties to FTC Act Section 5 and two legacy FTC policy statements.

§ 702(a)–(b)

Establishment and Purpose of the AI Regulatory Sandbox Program

Government

(a)(1) 1 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.

(a)(2) 1 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) 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.

Section 702(a) directs the Director of OSTP to establish and operate the AI regulatory sandbox program within one year of enactment. The Director must create a standardized application process, a Director-initiated application pathway, and a public review process (published in the Federal Register with public comment) for assessing whether applications present health and safety risks, economic damage risks, or unfair or deceptive trade practice risks. Subsection (b) states the Program's purpose: incentivizing AI development, economic opportunities, jobs, and innovation.

Compliance actions 1 item

The Director of OSTP must establish and operate a federal AI regulatory sandbox program within one year of enactment, including standardized application processes and a publicly published, Federal Register-noticed review process for assessing health, safety, economic, and deceptive-practice risks.

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§ 702(c)

Application Process for Waivers and Modifications

DeployerDeveloper

(c)(1) 2 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.

(c)(2)–(3) 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.

Section 702(c) specifies the information applicants must submit to apply for a waiver or modification, including jurisdictional confirmation, contact details, criminal history, product or service descriptions, identification of each covered provision to be waived, a benefits-vs-risks analysis covering health and safety, economic damage, and deceptive trade practice risks, and proposed mitigation measures. The Director may assist applicants and may independently submit applications to waive or modify covered provisions when doing so would advance AI development, deployment, or use in the United States.

Compliance actions 1 item

Applicants seeking a sandbox waiver must submit a comprehensive application to the Director including jurisdictional confirmation, contact information, criminal history disclosures, product descriptions, identification of each covered provision to be waived, a benefits-vs-risks analysis covering health and safety, economic, and deceptive-practice risks, proposed mitigation measures, and a list of agencies with jurisdiction.

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§ 702(d)

Agency Review of Sandbox Applications

(d)(1)–(5) 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.

Section 702(d) establishes the process by which applicable agencies review sandbox applications. The Director must transmit applications to each applicable agency within 14 days. Agency heads must review applications — including soliciting private-sector and technical-expert input — and render a decision within 90 days, with one possible 30-day extension. If an agency fails to respond within the deadline, the Director presumes no objection. If the agency recommends risk mitigations, the applicant receives 60 days to revise and resubmit for an expedited 60-day review. Each agency decision must include a detailed record covering risks, mitigation plans, consumer protections, or reasons for denial.

§ 702(e)

Written Agreement Requirements

DeployerDeveloper

(e)(1)–(3) 3 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).

Section 702(e) requires that no waiver or modification takes effect until the applicant enters a written agreement with the Director and the applicable agency head. The agreement must identify each waived or modified covered provision and the risk-mitigation terms. Critically, every agreement must include a 72-hour incident reporting requirement for incidents resulting in consumer harm, economic damage, or deceptive trade practices. The Director must provide the agreement within 45 days of approval.

Compliance actions 1 item

Sandbox participants must notify the Director and the head of each relevant applicable agency of any incident resulting in consumer health or safety harm, economic damage, or an unfair or deceptive trade practice within 72 hours of occurrence.

R-01.1

§ 702(f)

Publication of Director-Submitted Applications and Utilization by Applicants

(f)(1)–(3) 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).

When a Director-submitted application is granted, Section 702(f) requires the Director to publish notice in the Federal Register of the waiver or modification and the requirements for any other person to utilize it. Any person may then apply to use the same waiver by fulfilling the written-agreement requirements. The Director may develop a standardized utilization process.

§ 702(g)

Appeals Process

(g)(1)–(2) 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.

Section 702(g) provides an appeals mechanism for applicants whose applications are denied by an applicable agency. The applicant may appeal to the Director for reconsideration. The Director must respond within 60 days, either approving the application with a statement detailing how concerns have been mitigated, or denying it with a statement explaining how concerns have not been mitigated.

§ 702(h)

Judicial Review

(h) 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).

Section 702(h) designates four categories of final agency actions reviewable under 5 U.S.C. § 704: agency decision records, renewal grants, failure to provide a written agreement, and revocations. This is procedural and creates no new compliance obligation for sandbox participants.

§ 702(i)

Period of Waiver or Modification

DeployerDeveloper

(i)(1)–(3) 4 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).

Section 702(i) sets the waiver term at 2 years, renewable up to 4 additional 2-year periods (maximum 10 years total). A person ending deployment early must report to the Director at least 30 days before termination on actions taken to ensure consumers are not harmed. Renewal requires 30 days' notice before the current period ends and is granted unless the Director finds material changes in circumstances or non-compliance with the written agreement.

Compliance actions 1 item

Sandbox participants ending deployment early must report to the Director at least 30 days before termination on actions taken to ensure consumers are not harmed. Participants seeking renewal must notify the Director at least 30 days before the current period expires.

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§ 702(j)

Revocation of Waivers

(j) 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.

Section 702(j) authorizes the Director to revoke a waiver or modification if the participant is not in compliance with the written agreement. The Director must give 30 days' notice to cure (with potential extensions), and may revoke only if the participant fails to correct the non-compliance. This is an enforcement mechanism, not a standalone compliance obligation on participants.

§ 702(k)

Terms of Sandbox Participation

(k)(1)–(7) 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).

Section 702(k) sets the ground rules for sandbox participants. Consumer rights of action for actual damages and equitable remedies are preserved and cannot be waived. During a compliant waiver period, the participant is shielded from criminal and civil enforcement of the waived provisions but retains no immunity for criminal offenses not covered by the waiver. Agencies may not pursue punitive actions for violations of waived provisions during the waiver period unless the participant breaches the written agreement. The federal government bears no liability for business losses from revocation. The 72-hour incident reporting obligation from § 702(e)(2) is restated.

§ 702(l)

Consumer Protection Disclosures

DeployerDeveloper

(l)(1)–(8) 5 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.

Section 702(l) imposes a consumer-facing disclosure obligation on sandbox participants. Before deploying an AI product or service under a waiver and throughout the waiver period, the participant must publicly disclose — via a website or similar means — its name and contact information, a description of its sandbox participation, any applicable licensing gaps, the testing nature of the product and associated risks, preservation of consumer civil liability rights, absence of criminal immunity for non-waived provisions, the temporary nature of the demonstration, the expected commencement date, and complaint contact information for the National Artificial Intelligence Initiative Office.

Compliance actions 1 item

Sandbox participants must publicly disclose before and during deployment their identity, sandbox participation status, any licensing gaps, the testing nature and associated risks of the AI product, preserved consumer liability rights, temporary nature of the offering, expected commencement date, and complaint contact information for the National AI Initiative Office.

T-01.1

§ 702(m)

Record Keeping

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(m)(1)–(2) 6 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).

Section 702(m) requires sandbox participants to retain all records, documents, and data directly related to their participation in the Program and to make them available for inspection upon the Director's request.

Compliance actions 1 item

Sandbox participants must retain all records, documents, and data directly related to their participation in the Program and make them available for inspection upon request by the Director.

G-01.3

§ 702(n)

Reports

DeployerDeveloperGovernment

(n)(1)(A)–(B) 7 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).

(n)(2) 8 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.

Section 702(n)(1) imposes periodic reporting obligations on sandbox participants. Each participant must submit reports to the Director at three defined intervals: 40 days after commencement, at the halfway mark, and 30 days before expiration (of both initial and renewal periods). Reports must cover consumer counts, risk assessments and mitigation activities, unanticipated risks, adverse incidents and remediation, and benefits data. Subsection (n)(2) requires the Director to submit annual reports to Congress on the Program's operations, including application statistics, participant descriptions, benefits and harms, waived provisions, affected consumers, and all related materials.

Compliance actions 2 items

Sandbox participants must submit periodic reports to the Director at three intervals per waiver period covering consumer counts, ongoing risk assessments and mitigation activities, unanticipated risks, adverse incident descriptions and remediation actions, and quantitative benefits data.

R-03.1

The Director must submit annual reports to Congress on the Program covering application statistics, approved participants, public benefits and harms, waived provisions and frequency, affected consumer counts, and all related materials.

R-03.1

§ 702(o)

Coordination with State AI Programs

(o)(1)–(4) 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.

Section 702(o) directs the Director to coordinate with state-level AI sandbox or comparable programs by establishing information-sharing mechanisms, coordinating application review where jurisdictions overlap, accepting joint applications, and working to harmonize testing approaches. This creates obligations on the Director, not on sandbox participants.

§ 702(p)

Rule of Construction

(p)(1)–(2) 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.

Section 702(p) provides two savings clauses: the bill does not require public disclosure of proprietary information (trade secrets, confidential commercial or financial information), and it does not affect any law not included in a waiver or modification.

§ 702(q)

Sunset Provision

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

Section 702(q) establishes a 12-year sunset: the Program terminates 12 years after the Director establishes it under subsection (a).

§ 703

Congressional Review of Covered Provisions

(a)–(c) 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. [Additional House and Senate procedural provisions omitted for brevity.]

Section 703 creates a mechanism for translating sandbox experience into permanent regulatory reform. The Director must annually submit a special message to Congress identifying covered provisions that should be amended or repealed based on sandbox results — including waiver/modification frequency, denial history, recommended textual amendments, and rationales. The section then establishes expedited joint-resolution-of-approval procedures in both the House and Senate, with committee discharge timelines, floor consideration rules, and cross-chamber treatment provisions. This is entirely an internal government and legislative procedure section; it creates no compliance obligations on AI developers or deployers.

Transparency AI identity disclosure · periodic reminders

1 item

T-01.1

Governance Risk management · accountability programs

1 item

G-01.3

Sandbox participants must retain all records, documents, and data directly related to their participation in the Program and make them available for inspection upon request by the Director.

Regulatory Reporting · disclosure · audit

3 items

R-01.1

R-03.1

—

Other

3 items

—

Passage Likelihood

Low

Status Introduced

Chamber No passage

Committee No action

Majority party (No data)

Bipartisan No

Prior session None

Legislative History

2025-09-10 Read twice and referred to the Committee on Commerce, Science, and Transportation.

Sources

Full Text ↗

Entry Last Reviewed

2026-05-20

AI generated