Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 243 Third Substitute (2022GS)

Sponsor

Rep. Maloy, A.C.

Final action

Governor Signed 3/24/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• define terms;
• expands the regulatory sandbox program administered by the Governor's Office of Economic Opportunity (GO Utah office) by allowing a person who offers a financial or insurance product or service to participate in the program;
• requires meetings of the GO Utah office's General Regulatory Sandbox Program Advisory Committee to be open to the public;
• requires the GO Utah office to make certain information regarding the regulatory sandbox program available to the public;
• repeals the regulatory sandbox programs administered by the Department of Commerce and the Department of Insurance; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

REGULATORY SANDBOX PROGRAM AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: A. Cory Maloy
Senate Sponsor: 
Ann Millner
LONG TITLE
General Description:
This bill addresses state regulatory sandbox programs.
Highlighted Provisions:
This bill:
▸ define terms;
▸ expands the regulatory sandbox program administered by the Governor's Office of
Economic Opportunity (GO Utah office) by allowing a person who offers a
financial or insurance product or service to participate in the program;
▸ requires meetings of the GO Utah office's General Regulatory Sandbox Program
Advisory Committee to be open to the public;
▸ requires the GO Utah office to make certain information regarding the regulatory
sandbox program available to the public;
▸ repeals the regulatory sandbox programs administered by the Department of
Commerce and the Department of Insurance; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
52-4-205
, as last amended by Laws of Utah 2021, Chapters 179 and 231
63N-16-102
, as enacted by Laws of Utah 2021, Chapter 373
63N-16-103
, as enacted by Laws of Utah 2021, Chapter 373
63N-16-104
, as enacted by Laws of Utah 2021, Chapter 373
63N-16-201
, as enacted by Laws of Utah 2021, Chapter 373
63N-16-202
, as enacted by Laws of Utah 2021, Chapter 373
63N-16-206
, as enacted by Laws of Utah 2021, Chapter 373
REPEALS:
13-55-101
, as enacted by Laws of Utah 2019, Chapter 243
13-55-102
, as last amended by Laws of Utah 2021, Chapter 373
13-55-103
, as last amended by Laws of Utah 2020, Chapter 143
13-55-104
, as enacted by Laws of Utah 2019, Chapter 243
13-55-105
, as enacted by Laws of Utah 2019, Chapter 243
13-55-106
, as enacted by Laws of Utah 2019, Chapter 243
13-55-107
, as enacted by Laws of Utah 2019, Chapter 243
13-55-108
, as enacted by Laws of Utah 2019, Chapter 243
31A-47-101
, as enacted by Laws of Utah 2020, Chapter 141
31A-47-102
, as last amended by Laws of Utah 2021, Chapter 373
31A-47-103
, as enacted by Laws of Utah 2020, Chapter 141
31A-47-104
, as enacted by Laws of Utah 2020, Chapter 141
31A-47-105
, as enacted by Laws of Utah 2020, Chapter 141
31A-47-106
, as enacted by Laws of Utah 2020, Chapter 141
31A-47-107
, as enacted by Laws of Utah 2020, Chapter 141
31A-47-108
, as enacted by Laws of Utah 2020, Chapter 141
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
52-4-205
 is amended to read:
52-4-205.
Purposes of closed meetings -- Certain issues prohibited in closed
meetings.
(1) A closed meeting described under Section 
52-4-204
 may only be held for:
(a) except as provided in Subsection (3), discussion of the character, professional
competence, or physical or mental health of an individual;
(b) strategy sessions to discuss collective bargaining;
(c) strategy sessions to discuss pending or reasonably imminent litigation;
(d) strategy sessions to discuss the purchase, exchange, or lease of real property,
including any form of a water right or water shares, if public discussion of the transaction
would:
(i) disclose the appraisal or estimated value of the property under consideration; or
(ii) prevent the public body from completing the transaction on the best possible terms;
(e) strategy sessions to discuss the sale of real property, including any form of a water
right or water shares, if:
(i) public discussion of the transaction would:
(A) disclose the appraisal or estimated value of the property under consideration; or
(B) prevent the public body from completing the transaction on the best possible terms;
(ii) the public body previously gave public notice that the property would be offered for
sale; and
(iii) the terms of the sale are publicly disclosed before the public body approves the
sale;
(f) discussion regarding deployment of security personnel, devices, or systems;
(g) investigative proceedings regarding allegations of criminal misconduct;
(h) as relates to the Independent Legislative Ethics Commission, conducting business
relating to the receipt or review of ethics complaints;
(i) as relates to an ethics committee of the Legislature, a purpose permitted under
Subsection 
52-4-204
(1)(a)(iii)(C);
(j) as relates to the Independent Executive Branch Ethics Commission created in
Section 
63A-14-202
, conducting business relating to an ethics complaint;
(k) as relates to a county legislative body, discussing commercial information as
defined in Section 
59-1-404
;
(l) as relates to the Utah Higher Education Assistance Authority and its appointed
board of directors, discussing fiduciary or commercial information as defined in Section
53B-12-102
;
(m) deliberations, not including any information gathering activities, of a public body
acting in the capacity of:
(i) an evaluation committee under Title 63G, Chapter 6a, Utah Procurement Code,
during the process of evaluating responses to a solicitation, as defined in Section 
63G-6a-103
;
(ii) a protest officer, defined in Section 
63G-6a-103
, during the process of making a
decision on a protest under Title 63G, Chapter 6a, Part 16, Protests; or
(iii) a procurement appeals panel under Title 63G, Chapter 6a, Utah Procurement
Code, during the process of deciding an appeal under Title 63G, Chapter 6a, Part 17,
Procurement Appeals Board;
(n) the purpose of considering information that is designated as a trade secret, as
defined in Section 
13-24-2
, if the public body's consideration of the information is necessary in
order to properly conduct a procurement under Title 63G, Chapter 6a, Utah Procurement Code;
(o) the purpose of discussing information provided to the public body during the
procurement process under Title 63G, Chapter 6a, Utah Procurement Code, if, at the time of
the meeting:
(i) the information may not, under Title 63G, Chapter 6a, Utah Procurement Code, be
disclosed to a member of the public or to a participant in the procurement process; and
(ii) the public body needs to review or discuss the information in order to properly
fulfill its role and responsibilities in the procurement process;
(p) as relates to the governing board of a governmental nonprofit corporation, as that
term is defined in Section 
11-13a-102
, the purpose of discussing information that is designated
as a trade secret, as that term is defined in Section 
13-24-2
, if:
(i) public knowledge of the discussion would reasonably be expected to result in injury
to the owner of the trade secret; and
(ii) discussion of the information is necessary for the governing board to properly
discharge the board's duties and conduct the board's business; or
(q) a purpose for which a meeting is required to be closed under Subsection (2).
(2) The following meetings shall be closed:
(a) a meeting of the Health and Human Services Interim Committee to review a report
described in Subsection 
62A-16-301
(1)(a), and the responses to the report described in
Subsections 
62A-16-301
(2) and (4);
(b) a meeting of the Child Welfare Legislative Oversight Panel to:
(i) review a report described in Subsection 
62A-16-301
(1)(a), and the responses to the
report described in Subsections 
62A-16-301
(2) and (4); or
(ii) review and discuss an individual case, as described in Subsection 
62A-4a-207
(5);
(c) a meeting of the Opioid and Overdose Fatality Review Committee, created in
Section 
26-7-13
, to review and discuss an individual case, as described in Subsection
26-7-13
(10);
(d) a meeting of a conservation district as defined in Section 
17D-3-102
 for the
purpose of advising the Natural Resource Conservation Service of the United States
Department of Agriculture on a farm improvement project if the discussed information is
protected information under federal law;
(e) a meeting of the Compassionate Use Board established in Section 
26-61a-105
 for
the purpose of reviewing petitions for a medical cannabis card in accordance with Section
26-61a-105
; [
and
]
(f) a meeting of the Colorado River Authority of Utah if:
(i) the purpose of the meeting is to discuss an interstate claim to the use of the water in
the Colorado River system; and
(ii) failing to close the meeting would:
(A) reveal the contents of a record classified as protected under Subsection
63G-2-305
(82);
(B) reveal a legal strategy relating to the state's claim to the use of the water in the
Colorado River system;
(C) harm the ability of the Colorado River Authority of Utah or river commissioner to
negotiate the best terms and conditions regarding the use of water in the Colorado River
system; or
(D) give an advantage to another state or to the federal government in negotiations
regarding the use of water in the Colorado River system[
.
]
; and
(g) a meeting of the General Regulatory Sandbox Program Advisory Committee if:
(i) the purpose of the meeting is to discuss an application for participation in the
regulatory sandbox as defined in Section 
63N-16-102
; and
(ii) failing to close the meeting would reveal the contents of a record classified as
protected under Subsection 
63G-2-305
(83).
(3) In a closed meeting, a public body may not:
(a) interview a person applying to fill an elected position;
(b) discuss filling a midterm vacancy or temporary absence governed by Title 20A,
Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in Elected Office;
or
(c) discuss the character, professional competence, or physical or mental health of the
person whose name was submitted for consideration to fill a midterm vacancy or temporary
absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and Vacancy and
Temporary Absence in Elected Office.
Section 2. Section 
63N-16-102
 is amended to read:
63N-16-102.
Definitions.
As used in this chapter:
(1) "Advisory committee" means the General Regulatory Sandbox Program Advisory
Committee created in Section 
63N-16-104
.
(2) "Applicable agency" means a department or agency of the state that by law
regulates a business activity and persons engaged in such business activity, including the
issuance of licenses or other types of authorization, which the office determines would
otherwise regulate a sandbox participant.
(3) "Applicant" means a person that applies to participate in the regulatory sandbox.
(4) "Blockchain technology" means the use of a digital database containing records of
financial transactions, which can be simultaneously used and shared within a decentralized,
publicly accessible network and can record transactions between two parties in a verifiable and
permanent way.
[
(4)
] 
(5)
 "Consumer" means a person that purchases or otherwise enters into a
transaction or agreement to receive an offering pursuant to a demonstration by a sandbox
participant.
[
(5)
] 
(6)
 "Demonstrate" or "demonstration" means to temporarily provide an offering in
accordance with the provisions of the regulatory sandbox program described in this chapter.
[
(6)
] 
(7)
 "Director" means the director of the Utah Office of Regulatory Relief created
in Section 
63N-16-103
.
[
(7)
] 
(8)
 "Executive director" means the executive director of the Governor's Office of
Economic Opportunity.
(9) "Financial product or service" means:
(a) a financial product or financial service that requires state licensure or registration;
or
(b) a financial product, financial service, or banking business that includes a business
model, delivery mechanism, offering of deposit accounts, or element that may require a license
or other authorization to act as a financial institution, enterprise, or other entity that is regulated
by Title 7, Financial Institutions Act, or other related provisions.
[
(8)
] 
(10)
 "Innovation" means the use or incorporation of a new 
or existing
 idea, a new
or emerging technology, or a new use of existing technology
, including blockchain technology,
to address a problem, provide a benefit, or otherwise offer a product, production method, or
service.
[
(9) "Innovative offering" means an offering that includes an innovation.
]
(11) "Insurance product or service" means an insurance product or insurance service
that requires state licensure, registration, or other authorization as regulated by Title 31A,
Insurance Code, including an insurance product or insurance service that includes a business
model, delivery mechanism, or element that requires a license, registration, or other
authorization to do an insurance business, act as an insurance producer or consultant, or engage
in insurance adjusting as regulated by Title 31A, Insurance Code.
[
(10)
] 
(12)
 (a) "Offering" means a product, production method, or service
, including a
financial product or service or an insurance product or service, that includes an innovation
.
(b) "Offering" does not include a product, production method, or service that is
governed by[
:
] 
Title 61, Chapter 1, Utah Uniform Securities Act.
[
(i) 
Title
 31A, Insurance Code, as determined by the insurance commissioner; or
]
[
(ii) 
Title
 61, Chapter 1, Utah Uniform Securities Act.
]
[
(11)
] 
(13)
 "Product" means a commercially distributed good that is:
(a) tangible personal property;
(b) the result of a production process; and
(c) passed through the distribution channel before consumption.
[
(12)
] 
(14)
 "Production" means the method or process of creating or obtaining a good,
which may include assembling, breeding, capturing, collecting, extracting, fabricating, farming,
fishing, gathering, growing, harvesting, hunting, manufacturing, mining, processing, raising, or
trapping a good.
[
(13)
] 
(15)
 "Regulatory relief office" means the Utah Office of Regulatory Relief
created in Section 
63N-16-103
.
[
(14)
] 
(16)
 "Regulatory sandbox" means the General Regulatory Sandbox Program
created in Section 
63N-16-201
, which allows a person to temporarily demonstrate an offering
under a waiver or suspension of one or more state laws or regulations.
[
(15)
] 
(17)
 "Sandbox participant" means a person whose application to participate in
the regulatory sandbox is approved in accordance with the provisions of this chapter.
[
(16)
] 
(18)
 "Service" means any commercial activity, duty, or labor performed for
another person.
Section 3. Section 
63N-16-103
 is amended to read:
63N-16-103.
Creation of regulatory relief office and appointment of director --
Responsibilities of regulatory relief office.
(1) There is created within the Governor's Office of Economic Opportunity the Utah
Office of Regulatory Relief.
(2) (a) The regulatory relief office shall be administered by a director.
(b) The director shall report to the executive director and may appoint staff subject to
the approval of the executive director.
(3) The regulatory relief office shall:
(a) administer the provisions of this chapter;
(b) administer the regulatory sandbox program; and
(c) act as a liaison between private businesses and applicable agencies to identify state
laws or regulations that could potentially be waived or suspended under the regulatory sandbox
program.
(4) The regulatory relief office may:
(a) review state laws and regulations that may unnecessarily inhibit the creation and
success of new companies or industries and provide recommendations to the governor and the
Legislature on modifying such state laws and regulations;
(b) create a framework for analyzing the risk level to the health, safety, and financial
well-being of consumers related to permanently removing or temporarily waiving laws and
regulations inhibiting the creation or success of new and existing companies or industries;
(c) propose potential reciprocity agreements between states that use or are proposing to
use similar regulatory sandbox programs as described in this chapter[
, Section 
13-55-103
, or
Section 
31A-47-103
]; and
(d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
the provisions of this chapter, make rules regarding:
(i) administering the regulatory sandbox, including making rules regarding the
application process and the reporting requirements of sandbox participants; and
(ii) cooperating and consulting with other agencies in the state that administer sandbox
programs.
Section 4. Section 
63N-16-104
 is amended to read:
63N-16-104.
Creation and duties of advisory committee.
(1) There is created the General Regulatory Sandbox Program Advisory Committee.
(2) The advisory committee shall have 11 members as follows:
(a) six members appointed by the director who represent businesses interests and are
selected from a variety of industry clusters;
(b) three members appointed by the director who represent state agencies that regulate
businesses;
(c) one member of the Senate, appointed by the president of the Senate; and
(d) one member of the House of Representatives, appointed by the speaker of the
House of Representatives.
(3) (a) Subject to Subsection (3)(b), members of the advisory committee who are not
legislators shall be appointed to a four-year term.
(b) Notwithstanding the requirements of Subsection (3)(a), the director may adjust the
length of terms of appointments and reappointments to the advisory committee so that
approximately half of the advisory committee is appointed every two years.
(4) The director shall select a chair of the advisory committee on an annual basis.
(5) A majority of the advisory committee constitutes a quorum for the purpose of
conducting advisory committee business, and the action of the majority of a quorum constitutes
the action of the advisory committee.
(6) The advisory committee shall advise and make recommendations to the regulatory
relief office as described in this chapter.
(7) The regulatory relief office shall provide administrative staff support for the
advisory committee.
(8) (a) A member may not receive compensation or benefits for the member's service,
but a member appointed under Subsection (2)(a) may receive per diem and travel expenses in
accordance with:
(i) Sections 
63A-3-106
 and 
63A-3-107
; and
(ii) rules made by the Division of Finance pursuant to Sections 
63A-3-106
 and
63A-3-107
.
(b) Compensation and expenses of a member who is a legislator are governed by
Section 
36-2-2
 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
[
(9) Meetings of the advisory committee are not subject to Title 52, Chapter 4, Open
and Public Meetings Act.
]
Section 5. Section 
63N-16-201
 is amended to read:
63N-16-201.
General Regulatory Sandbox Program -- Application requirements.
(1) There is created in the regulatory relief office the General Regulatory Sandbox
Program.
(2) In administering the regulatory sandbox, the regulatory relief office:
(a) shall consult with each applicable agency;
(b) shall establish a program to enable a person to obtain legal protections and limited
access to the market in the state to demonstrate an [
innovative
] offering without obtaining a
license or other authorization that might otherwise be required;
(c) may enter into agreements with or adopt the best practices of corresponding federal
regulatory agencies or other states that are administering similar programs; and
(d) may consult with businesses in the state about existing or potential proposals for
the regulatory sandbox.
(3) (a) An applicant for the regulatory sandbox may contact the regulatory relief office
to request a consultation regarding the regulatory sandbox before submitting an application.
(b) The regulatory relief office shall provide relevant information regarding the
regulatory sandbox program[
, including informing an applicant whether it would be better to
apply for the programs described in Section 
13-55-103
 or Section 
31A-47-103
].
(c) The regulatory relief office may provide assistance to an applicant in preparing an
application for submission.
(4) An applicant for the regulatory sandbox shall provide to the regulatory relief office
an application in a form prescribed by the regulatory relief office that:
(a) confirms the applicant is subject to the jurisdiction of the state;
(b) confirms the applicant has established a physical or virtual location in the state,
from which the demonstration of an [
innovative
] offering will be developed and performed and
where all required records, documents, and data will be maintained;
(c) contains relevant personal and contact information for the applicant, including legal
names, addresses, telephone numbers, email addresses, website addresses, and other
information required by the regulatory relief office;
(d) discloses criminal convictions of the applicant or other participating personnel, if
any;
(e) contains a description of the [
innovative
] offering to be demonstrated, including
statements regarding:
(i) how the offering is subject to licensing, legal prohibition, or other authorization
requirements outside of the regulatory sandbox;
(ii) each law or regulation that the applicant seeks to have waived or suspended while
participating in the regulatory sandbox program;
(iii) how the offering would benefit consumers;
(iv) how the offering is different from other offerings available in the state;
(v) what risks might exist for consumers who use or purchase the offering;
(vi) how participating in the regulatory sandbox would enable a successful
demonstration of the offering;
(vii) a description of the proposed demonstration plan, including estimated time
periods for beginning and ending the demonstration;
(viii) recognition that the applicant will be subject to all laws and regulations
pertaining to the applicant's offering after conclusion of the demonstration; and
(ix) how the applicant will end the demonstration and protect consumers if the
demonstration fails;
(f) lists each government agency, if any, that the applicant knows regulates the
applicant's business; and
(g) provides any other required information as determined by the regulatory relief
office.
(5) The regulatory relief office may collect an application fee from an applicant that is
set in accordance with Section 
63J-1-504
.
(6) An applicant shall file a separate application for each [
innovative
] offering that the
applicant wishes to demonstrate.
(7) After an application is filed, the regulatory relief office 
shall
:
(a) [
shall classify the application and any related information provided by the applicant
as a protected record
] 
classify, as a protected record, any part of the application that the office
determines is nonpublic, confidential information that if disclosed would result in actual
economic harm to the applicant
 in accordance with Subsection 
63G-2-305
[
(82)
]
(83)
;
(b) consult with each applicable government agency that regulates the applicant's
business regarding whether more information is needed from the applicant; and
(c) seek additional information from the applicant that the regulatory relief office
determines is necessary.
(8) No later than five business days after the day on which a complete application is
received by the regulatory relief office, the regulatory relief office shall:
(a) review the application and refer the application to each applicable government
agency that regulates the applicant's business; [
and
]
(b) provide to the applicant:
(i) an acknowledgment of receipt of the application; and
(ii) the identity and contact information of each regulatory agency to which the
application has been referred for review[
.
]
; and
(c) provide public notice, on the office's website and through other appropriate means,
of each law or regulation that the office is considering to suspend or waive under the
application.
(9) (a) Subject to Subsections (9)(c) and (9)(g), no later than 30 days after the day on
which an applicable agency receives a complete application for review, the applicable agency
shall provide a written report to the director of the applicable agency's findings.
(b) The report shall:
(i) describe any identifiable, likely, and significant harm to the health, safety, or
financial well-being of consumers that the relevant law or regulation protects against; and
(ii) make a recommendation to the regulatory relief office that the applicant either be
admitted or denied entrance into the regulatory sandbox.
(c) (i) The applicable agency may request an additional five business days to deliver
the written report by providing notice to the director, which request shall automatically be
granted.
(ii) The applicable agency may only request one extension per application.
(d) If the applicable agency recommends an applicant under this section be denied
entrance into the regulatory sandbox, the written report shall include a description of the
reasons for the recommendation, including why a temporary waiver or suspension of the
relevant laws or regulations would potentially significantly harm the health, safety, or financial
well-being of consumers or the public and the likelihood of such harm occurring.
(e) If the agency determines that the consumer's or public's health, safety, or financial
well-being can be protected through less restrictive means than the existing relevant laws or
regulations, then the applicable agency shall provide a recommendation of how that can be
achieved.
(f) If an applicable agency fails to deliver a written report as described in this
Subsection (9), the director shall assume that the applicable agency does not object to the
temporary waiver or suspension of the relevant laws or regulations for an applicant seeking to
participate in the regulatory sandbox.
(g) Notwithstanding any other provision of this section, an applicable agency may by
written notice to the regulatory relief office:
(i) within the 30 days after the day on which the applicable agency receives a complete
application for review, or within 35 days if an extension has been requested by the applicable
agency, reject an application if the applicable agency determines, in the applicable agency's
sole discretion, that the applicant's offering fails to comply with standards or specifications:
(A) required by federal law or regulation; or
(B) previously approved for use by a federal agency; or
(ii) reject an application preliminarily approved by the regulatory relief office, if the
applicable agency:
(A) recommended rejection of the application in accordance with Subsection (9)(d) in
the agency's written report; and
(B) provides in the written notice under this Subsection (9)(g), a description of the
applicable agency's reasons why approval of the application would create a substantial risk of
harm to the health or safety of the public, or create unreasonable expenses for taxpayers in the
state.
(h) If an applicable agency rejects an application under Subsection (9)(g), the
regulatory relief office may not approve the application.
(10) (a) Upon receiving a written report described in Subsection (9), the director shall
provide the application and the written report to the advisory committee.
(b) The director may call the advisory committee to meet as needed, but not less than
once per quarter if applications are available for review.
(c) After receiving and reviewing the application and each written report, the advisory
committee shall provide to the director the advisory committee's recommendation as to whether
or not the applicant should be admitted as a sandbox participant under this chapter.
(d) As part of the advisory committee's review of each written report, the advisory
committee shall use the criteria required for an applicable agency as described in Subsection
(9).
(11) (a) In reviewing an application and each applicable agency's written report, the
regulatory relief office shall consult with each applicable agency and the advisory committee
before admitting an applicant into the regulatory sandbox.
(b) The consultation with each applicable agency and the consultation with the
advisory committee may include seeking information about whether:
(i) the applicable agency has previously issued a license or other authorization to the
applicant; and
(ii) the applicable agency has previously investigated, sanctioned, or pursued legal
action against the applicant.
(12) In reviewing an application under this section, the regulatory relief office and each
applicable agency shall consider whether a competitor to the applicant is or has been a sandbox
participant and, if so, weigh that as a factor in favor of allowing the applicant to also become a
sandbox participant.
(13) In reviewing an application under this section, the regulatory relief office shall
consider whether:
(a) the applicant's plan will adequately protect consumers from potential harm
identified by an applicable agency in the applicable agency's written report;
(b) the risk of harm to consumers is outweighed by the potential benefits to consumers
from the applicant's participation in the regulatory sandbox; and
(c) certain state laws or regulations that regulate an offering should not be waived or
suspended even if the applicant is approved as a sandbox participant, including applicable
antifraud or disclosure provisions.
(14) (a) An applicant becomes a sandbox participant if the regulatory relief office
approves the application for the regulatory sandbox and enters into a written agreement with
the applicant describing the specific laws and regulations that are waived or suspended as part
of participation in the regulatory sandbox.
(b) Notwithstanding any other provision of this chapter, the regulatory relief office may
not enter into a written agreement with an applicant that waives or suspends a tax, fee, or
charge that is administered by the State Tax Commission or that is described in Title 59,
Revenue and Taxation.
(15) (a) The director may deny at the director's sole discretion any application
submitted under this section for any reason, including if the director determines that the
preponderance of evidence demonstrates that suspending or waiving enforcement of a law or
regulation would cause a significant risk of harm to consumers or residents of the state.
(b) If the director denies an application submitted under this section, the regulatory
relief office shall provide to the applicant a written description of the reasons for not allowing
the applicant to be a sandbox participant.
(c) The denial of an application submitted under this section is not subject to:
(i) agency or judicial review; or
(ii) the provisions of Title 63G, Chapter 4, Administrative Procedures Act.
(16) The director shall deny an application for participation in the regulatory sandbox
described by this section if[
: (a) the director determines that the applicant should instead apply
for the Regulatory Sandbox Program created in Section 
13-55-103
 for a financial product or
service or the Insurance Regulatory Sandbox Program created in Section 
31A-47-103
 for an
insurance product or service; or (b)
] the applicant or any person who seeks to participate with
the applicant in demonstrating an offering has been convicted, entered a plea of nolo
contendere, or entered a plea of guilty or nolo contendere held in abeyance, for any crime
involving significant theft, fraud, or dishonesty if the crime bears a significant relationship to
the applicant's or other participant's ability to safely and competently participate in the
regulatory sandbox program.
(17) 
(a)
 When an applicant is approved for participation in the regulatory sandbox, the
director [
may provide
] 
shall provide public
 notice of the approval [
to competitors of the
applicant and to the public
] 
on the office's website and through other appropriate means
.
(b) The public notice described in Subsection (17)(a) shall state:
(i) the name of the sandbox participant;
(ii) the industries the sandbox participant represents; and
(iii) each law or regulation that is suspended or waived for the sandbox participant as
allowed by the regulatory sandbox.
(18) In addition to the information described in Subsection (17), the office shall make
the following information available on the office's website and through other appropriate
means:
(a) documentation regarding the office's determination and grounds for approving each
sandbox participant; and
(b) public notice regarding any sandbox participant's revocation to participate in the
regulatory sandbox.
Section 6. Section 
63N-16-202
 is amended to read:
63N-16-202.
Scope of the regulatory sandbox.
(1) If the regulatory relief office approves an application under this part, the sandbox
participant has 12 months after the day on which the application was approved to demonstrate
the offering described in the sandbox participant's application.
(2) An offering that is demonstrated within the regulatory sandbox is subject to the
following:
(a) each consumer shall be a resident of the state; and
(b) no law or regulation may be waived or suspended if waiving or suspending the law
or regulation would prevent a consumer from seeking restitution in the event that the consumer
is harmed.
(3) This part does not restrict a sandbox participant who holds a license or other
authorization in another jurisdiction from acting in accordance with that license or other
authorization.
(4) A sandbox participant is deemed to possess an appropriate license or other
authorization under the laws of the state for the purposes of any provision of federal law
requiring licensure or other authorization by the state.
(5) Subject to Subsection (6):
(a) during the demonstration period, a sandbox participant is not subject to the
enforcement of state laws or regulations identified in the written agreement between the
regulatory relief office and the sandbox participant described in Subsection 
63N-16-201
(14);
(b) a prosecutor may not file or pursue charges pertaining to a law or regulation
identified in the written agreement between the regulatory relief office and the sandbox
participant described in Subsection 
63N-16-201
(14) that occurs during the demonstration
period; and
(c) a state agency may not file or pursue any punitive action against a sandbox
participant, including a fine or license suspension or revocation, for the violation of a law or
regulation that:
(i) is identified as being waived or suspended in the written agreement between the
regulatory relief office and the sandbox participant described in Subsection 
63N-16-201
(14);
and
(ii) occurs during the demonstration period.
(6) Notwithstanding any other provision of this part[
,
]
:
(a)
 a sandbox participant does not have immunity related to any criminal offense
committed during the sandbox participant's participation in the regulatory sandbox[
.
]
; and
(b) a sandbox participant that provides an offering that is a financial product or service
shall comply with all applicable federal laws and regulations governing consumer protection.
(7) By written notice, the regulatory relief office may end a sandbox participant's
participation in the regulatory sandbox at any time and for any reason, including if the director
determines that a sandbox participant is not operating in good faith to bring an [
innovative
]
offering to market.
(8) The regulatory relief office and the regulatory relief office's employees are not
liable for any business losses or the recouping of application expenses or other expenses related
to the regulatory sandbox, including for:
(a) denying an applicant's application to participate in the regulatory sandbox for any
reason; or
(b) ending a sandbox participant's participation in the regulatory sandbox at any time
and for any reason.
Section 7. Section 
63N-16-206
 is amended to read:
63N-16-206.
Record keeping and reporting requirements.
(1) A sandbox participant shall retain records, documents, and data produced in the
ordinary course of business regarding an offering demonstrated in the regulatory sandbox.
(2) If a sandbox participant ceases to provide an offering before the end of a
demonstration period, the sandbox participant shall notify the regulatory relief office and each
applicable agency and report on actions taken by the sandbox participant to ensure consumers
have not been harmed as a result.
(3) The regulatory relief office shall establish quarterly reporting requirements for a
sandbox participant, including information about any consumer complaints.
(4) The regulatory relief office may request records, documents, and data from a
sandbox participant and, upon the regulatory relief office's request, the sandbox participant
shall make such records, documents, and data available for inspection by the regulatory relief
office.
(5) (a) The sandbox participant shall notify the regulatory relief office and each
applicable agency of any incidents that result in harm to the health, safety, or financial
well-being of a consumer.
(b) If a sandbox participant fails to notify the regulatory relief office and each
applicable agency of any incidents as described in Subsection (5)(a), or the regulatory relief
office or an applicable agency has evidence that significant harm to a consumer has occurred,
the regulatory relief office may immediately remove the sandbox participant from the
regulatory sandbox.
(6) (a) No later than 30 days after the day on which a sandbox participant exits the
regulatory sandbox, the sandbox participant shall submit a written report to the regulatory relief
office and each applicable agency describing an overview of the sandbox participant's
demonstration, including any:
(i) incidents of harm to consumers;
(ii) legal action filed against the participant as a result of the participant's
demonstration; and
(iii) complaints filed with an applicable agency as a result of the participant's
demonstration.
(b) No later than 30 days after the day on which an applicable agency receives the
quarterly reporting described in Subsection (3) or a written report from a sandbox participant as
described in Subsection [
(5)
] 
(6)
(a), the applicable agency shall provide a written report to the
regulatory relief office on the demonstration that describes any statutory or regulatory reform
the applicable agency recommends as a result of the demonstration.
(7) The regulatory relief office may remove a sandbox participant from the regulatory
sandbox at any time if the regulatory relief office determines that a sandbox participant has
engaged in, is engaging in, or is about to engage in any practice or transaction that is in
violation of this chapter or that constitutes a violation of a law or regulation for which
suspension or waiver has not been granted.
Section 8. 
Repealer.
This bill repeals:
Section 
13-55-101
,
Title.
Section 
13-55-102
,
Definitions.
Section 
13-55-103
,
Regulatory Sandbox Program -- Application requirements.
Section 
13-55-104
,
Scope of the regulatory sandbox.
Section 
13-55-105
,
Consumer protection for regulatory sandbox.
Section 
13-55-106
,
Requirements for exiting regulatory sandbox.
Section 
13-55-107
,
Extensions.
Section 
13-55-108
,
Record keeping and reporting requirements.
Section 
31A-47-101
,
Title.
Section 
31A-47-102
,
Definitions.
Section 
31A-47-103
,
Insurance Regulatory Sandbox Program -- Application
requirements.
Section 
31A-47-104
,
Scope of the insurance regulatory sandbox.
Section 
31A-47-105
,
Consumer protection for insurance regulatory sandbox.
Section 
31A-47-106
,
Requirements for exiting insurance regulatory sandbox.
Section 
31A-47-107
,
Extensions.
Section 
31A-47-108
,
Record keeping and reporting requirements.