This bill, known as the Stopping Illegal Minor Simulations Act (SIMS Act), aims to amend federal law to prohibit the provision of minor-simulating chatbots that engage in sexually explicit conduct or conversation. It targets "covered entities" that own or operate chatbots made available in the United States. A chatbot is defined as an interactive computer service or software application designed to simulate human-like conversation, produce new content, and respond to natural language input. Specifically, the bill makes it unlawful for a covered entity to make available a chatbot designed to simulate a minor engaged in interactive sexually explicit conduct or conversation with a human user, provided such content is obscene and constitutes a violation of criminal law. Willful violations carry a criminal penalty of up to $100,000 . Additionally, the Attorney General can pursue civil actions, seeking injunctions, compliance, and civil penalties up to $100,000 per violation , along with restitution. The Act provides specific exemptions for law enforcement investigations conducted by federal, state, local, or designated foreign agencies involved in child sexual exploitation cases. It clarifies that the simulated minor does not need to actually exist for an offense to occur. Furthermore, the bill ensures that internal research, "red-teaming," or other evaluations to assess chatbot compliance are not prohibited, and it does not create liability for chatbot users who are not covered entities. The Attorney General is also mandated to submit annual reports detailing enforcement activities and investigations under this Act.