[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--