Current status is Read twice and referred to the Committee on Commerce, Science, and Transportation.

119th CONGRESS

1st Session

S. 2750

1. Short title
2. Artificial Intelligence Regulatory Sandbox Program
701. Definitions
702. Establishment of Artificial Intelligence Regulatory Sandbox Program
703. Congressional review of covered provisions

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".

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:

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

(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.

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.

(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;

(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).

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.

(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.

119-S2750

SANDBOX Act