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SEC. 43201. ARTIFICIAL INTELLIGENCE AND INFORMATION TECHNOLOGY 
              MODERNIZATION INITIATIVE.

    (a) Appropriation of Funds.--There is hereby appropriated to the 
Department of Commerce for fiscal year 2025, out of any funds in the 
Treasury not otherwise appropriated, $500,000,000, to remain available 
until September 30, 2034, to modernize and secure Federal information 
technology systems through the deployment of commercial artificial 
intelligence, the deployment of automation technologies, and the 
replacement of antiquated business systems in accordance with 
subsection (b).
    (b) Authorized Uses.--The Secretary of Commerce shall use the funds 
appropriated under subsection (a) for the following:
            (1) To replace or modernize, within the Department of 
        Commerce, legacy business systems with state-of-the-art 
        commercial artificial intelligence systems and automated 
        decision systems.
            (2) To facilitate, within the Department of Commerce, the 
        adoption of artificial intelligence models that increase 
        operational efficiency and service delivery.
            (3) To improve, within the Department of Commerce, the 
        cybersecurity posture of Federal information technology systems 
        through modernized architecture, automated threat detection, 
        and integrated artificial intelligence solutions.
    (c) Moratorium.--
            (1) In general.--Except as provided in paragraph (2), no 
        State or political subdivision thereof may enforce, during the 
        10-year period beginning on the date of the enactment of this 
        Act, any law or regulation of that State or a political 
        subdivision thereof limiting, restricting, or otherwise 
        regulating artificial intelligence models, artificial 
        intelligence systems, or automated decision systems entered 
        into interstate commerce.
            (2) Rule of construction.--Paragraph (1) may not be 
        construed to prohibit the enforcement of--
                    (A) any law or regulation that--
                            (i) the primary purpose and effect of which 
                        is to--
                                    (I) remove legal impediments to, or 
                                facilitate the deployment or operation 
                                of, an artificial intelligence model, 
                                artificial intelligence system, or 
                                automated decision system; or
                                    (II) streamline licensing, 
                                permitting, routing, zoning, 
                                procurement, or reporting procedures in 
                                a manner that facilitates the adoption 
                                of artificial intelligence models, 
                                artificial intelligence systems, or 
                                automated decision systems;
                            (ii) does not impose any substantive 
                        design, performance, data-handling, 
                        documentation, civil liability, taxation, fee, 
                        or other requirement on artificial intelligence 
                        models, artificial intelligence systems, or 
                        automated decision systems unless such 
                        requirement--
                                    (I) is imposed under Federal law; 
                                or
                                    (II) in the case of a requirement 
                                imposed under a generally applicable 
                                law, is imposed in the same manner on 
                                models and systems, other than 
                                artificial intelligence models, 
                                artificial intelligence systems, and 
                                automated decision systems, that 
                                provide comparable functions to 
                                artificial intelligence models, 
                                artificial intelligence systems, or 
                                automated decision systems; and
                            (iii) does not impose a fee or bond 
                        unless--
                                    (I) such fee or bond is reasonable 
                                and cost-based; and
                                    (II) under such fee or bond, 
                                artificial intelligence models, 
                                artificial intelligence systems, and 
                                automated decision systems are treated 
                                in the same manner as other models and 
                                systems that perform comparable 
                                functions; or
                    (B) any provision of a law or regulation to the 
                extent that the violation of such provision carries a 
                criminal penalty.
    (d) Definitions.--In this section:
            (1) Artificial intelligence.--The term ``artificial 
        intelligence'' has the meaning given such term in section 5002 
        of the National Artificial Intelligence Initiative Act of 2020 
        (15 U.S.C. 9401).
            (2) Artificial intelligence model.--The term ``artificial 
        intelligence model'' means a software component of an 
        information system that implements artificial intelligence 
        technology and uses computational, statistical, or machine-
        learning techniques to produce outputs from a defined set of 
        inputs.
            (3) Artificial intelligence system.--The term ``artificial 
        intelligence system'' means any data system, hardware, tool, or 
        utility that operates, in whole or in part, using artificial 
        intelligence.
            (4) Automated decision system.--The term ``automated 
        decision system'' means any computational process derived from 
        machine learning, statistical modeling, data analytics, or 
        artificial intelligence that issues a simplified output, 
        including a score, classification, or recommendation, to 
        materially influence or replace human decision making.