; or (B) the performance of the activity by the service provider. . 6. Treble penalties Section 21(d)(3) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78u(d)(3) ) is amended by adding at the end the following: (E) Amount of penalty for violation involving machine-manipulated media The amount of a civil penalty imposed under subparagraph (A)(i) for a violation involving the use of machine-manipulated media, as defined in section 5724 of the Damon Paul Nelson and Matthew Young Pollard Intelligence Authorization Act for Fiscal Years 2018, 2019, and 2020 ( 50 U.S.C. 3024 note), shall not exceed 3 times the penalty otherwise determined under clause (i), (ii), or (iii) of subparagraph (B). . 7. Liability The Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ) is amended by adding at the end the following: 42. Liability (a) Liability Any person who, directly or indirectly, deploys or causes to be deployed, an artificial intelligence model shall be deemed to satisfy the scienter, other state of mind, or negligence requirements of the Federal securities laws with regard to any and all acts, practices or conduct engaged in by such model, and any outcome resulting from the use of such model, and shall be liable to the same extent as if such person had committed such acts, practices or conduct directly, unless such person took reasonable steps to prevent such acts, practices, conduct and outcome, which may include but are not limited to establishing, maintaining and enforcing written policies and procedures reasonably designed to prevent violations of the Federal securities laws. (b) Waivers Civil liability of a developer of an artificial intelligence model for design defects or breaches of implied warranties with respect to such a model out of which arise a violation of the Federal securities laws may not be waived. .