Florida 2023 Regular Session

Florida House Bill H1287 Compare Versions

Only one version of the bill is available at this time.

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10	10	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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14	14	A bill to be entitled 1
15	15	An act relating to the universal regulatory sandbox; 2
16	16	creating part XVI of ch. 288, F.S.; providing purpose; 3
17	17	providing definitions; creating the Office of 4
18	18	Regulatory Relief within the Department of Economic 5
19	19	Opportunity; specifying the duties of the office; 6
20	20	creating the General Regulatory Sandbox Program 7
21	21	Advisory Committee; providing for membership of the 8
22	22	committee; creating the General Regulatory Sandbox 9
23	23	Program; providing requirements for applications; 10
24	24	providing timelines and criteria for reviewing 11
25	25	applications; requiring the office to consult with 12
26	26	specified entities before admitting an applicant into 13
27	27	the regulatory sandbox; providing for written 14
28	28	agreements with sandbox participants; exempting denial 15
29	29	of an application from certain review or specified 16
30	30	laws; providing grounds for denial of an application; 17
31	31	requiring public notice of approval of an applicant; 18
32	32	requiring the office to post certain information on 19
33	33	its website; exempting sandbox participants from 20
34	34	certain enforcement for a specified period; specifying 21
35	35	limits to such exemption; authorizing the office to 22
36	36	terminate participation in the regulatory sandbox; 23
37	37	providing certain immunity to the office and its 24
38	38	employees; providing for consumer protection; 25
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47	47	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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49	49
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51	51	providing requirements for exiting the regulatory 26
52	52	sandbox; providing for extension of agreements; 27
53	53	providing recordkeeping and reporting requirements; 28
54	54	requiring the office to maintain a specified web page; 29
55	55	amending s. 20.60, F.S.; conforming provisions to 30
56	56	changes made by the act; providing an effective date. 31
57	57	32
58	58	Be It Enacted by the Legislature of the State of Florida: 33
59	59	34
60	60	Section 1. Part XVI of chapter 288, Florida Statutes, 35
61	61	consisting of ss. 288.9971 -288.9983, is created to read: 36
62	62	PART XVI 37
63	63	UNIVERSAL REGULATORY SANDBOX 38
64	64	288.9971 Purpose.—This part establishes a universal 39
65	65	regulatory sandbox, which allows businesses, under the 40
66	66	observation of regulators, to trial innovative products, 41
67	67	services, and business models while temporarily receiving a 42
68	68	waiver or suspension of inapplicable laws or regulations. 43
69	69	288.9972 Definitions.—As used in this part, the term: 44
70	70	(1) "Advisory committee" means the General Regulatory 45
71	71	Sandbox Program Advisory Committee created in s. 288.9974. 46
72	72	(2) "Applicable agency" means a department or agency of 47
73	73	the state that regulates a business activit y and persons engaged 48
74	74	in such business activity, including the issuance of licenses or 49
75	75	other types of authorization, which the office determines would 50
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84	84	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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86	86
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88	88	otherwise regulate a sandbox participant. 51
89	89	(3) "Applicant" means a person who applies to participate 52
90	90	in the regulatory sandbox. 53
91	91	(4) "Blockchain technology" means the use of a digital 54
92	92	database containing records of financial transactions, which can 55
93	93	be simultaneously used and shared within a decentralized, 56
94	94	publicly accessible network and can record transacti ons between 57
95	95	two parties in a verifiable and permanent way. 58
96	96	(5) "Consumer" means a person who purchases or otherwise 59
97	97	enters into a transaction or agreement to receive an offering 60
98	98	pursuant to a demonstration by a sandbox participant. 61
99	99	(6) "Demonstrate" or "demonstration" means to temporarily 62
100	100	provide an offering in accordance with the General Regulatory 63
101	101	Sandbox Program created in s. 288.9975. 64
102	102	(7) "Director" means the director of the Office of 65
103	103	Regulatory Relief. 66
104	104	(8) "Financial product or service" has the same meaning as 67
105	105	in s. 559.952(3). 68
106	106	(9) "Innovation" means the use or incorporation of a new 69
107	107	or existing idea, a new or emerging technology, or a new use of 70
108	108	existing technology, including blockchain technology, to address 71
109	109	a problem, provide a benefit, or otherwise offer a product, 72
110	110	production method, or service. 73
111	111	(10) "Insurance product or service" means an insurance 74
112	112	product or insurance service that requires state licensure, 75
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121	121	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125	125	registration, or other authorization under the Florida Insurance 76
126	126	Code, including an insurance product or insurance service that 77
127	127	includes a business model, delivery mechanism, or element that 78
128	128	requires a license, registration, or other authorization to 79
129	129	engage in an insurance business, act as an insurance producer or 80
130	130	consultant, or engage in insurance adjusting. 81
131	131	(11) "Offering" means a product, production method, or 82
132	132	service, including a financial product or service or an 83
133	133	insurance product or service, that includes an innovation. 84
134	134	(12) "Office" means the Office of Regulatory Relief 85
135	135	created in s. 288.9973. 86
136	136	(13) "Product" means a commercially distributed good that 87
137	137	is: 88
138	138	(a) Tangible personal property. 89
139	139	(b) The result of a production process. 90
140	140	(c) Passed through the distribution channel before 91
141	141	consumption. 92
142	142	(14) "Production" means the m ethod or process of creating 93
143	143	or obtaining a good, which may include assembling, breeding, 94
144	144	capturing, collecting, extracting, fabricating, farming, 95
145	145	fishing, gathering, growing, harvesting, hunting, manufacturing, 96
146	146	mining, processing, raising, or trapping a g ood. 97
147	147	(15) "Regulatory sandbox" means the General Regulatory 98
148	148	Sandbox Program created in s. 288.9975, which allows a person to 99
149	149	temporarily demonstrate an offering under a waiver or suspension 100
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158	158	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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160	160
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162	162	of one or more state laws or regulations. 101
163	163	(16) "Sandbox partic ipant" means a person whose 102
164	164	application to participate in the regulatory sandbox is approved 103
165	165	in accordance with this part. 104
166	166	(17) "Secretary" means the Secretary of Economic 105
167	167	Opportunity. 106
168	168	(18) "Service" means any commercial activity, duty, or 107
169	169	labor performed for another person. 108
170	170	288.9973 Office of Regulatory Relief. – 109
171	171	(1) There is created within the Department of Economic 110
172	172	Opportunity the Office of Regulatory Relief. 111
173	173	(2)(a) The office shall be administered by a director. 112
174	174	(b) The director shall report to the secretary and may 113
175	175	appoint staff subject to the approval of the secretary. 114
176	176	(3) The office shall: 115
177	177	(a) Administer this part. 116
178	178	(b) Administer the regulatory sandbox. 117
179	179	(c) Act as a liaison between private businesses and 118
180	180	applicable agencies to ident ify laws or regulations that could 119
181	181	be waived or suspended under the regulatory sandbox. 120
182	182	(4) The office may: 121
183	183	(a) Review laws and regulations that may unnecessarily 122
184	184	inhibit the creation and success of new companies or industries 123
185	185	and provide recommendatio ns to the Governor and the Legislature 124
186	186	on modifying or eliminating such laws and regulations. 125
187	187
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195	195	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199	199	(b) Create a framework for analyzing the risk level to the 126
200	200	health, safety, and financial well -being of consumers related to 127
201	201	permanently modifying or eliminating or temporarily waiving or 128
202	202	suspending laws and regulations inhibiting the creation or 129
203	203	success of new and existing companies or industries. 130
204	204	(c) Propose potential reciprocity agreements between 131
205	205	states that use or are proposing to use similar regulatory 132
206	206	sandboxes as created in this part or the Financial Technology 133
207	207	Sandbox created in s. 559.952. 134
208	208	(d) In accordance with chapter 120 and this part, adopt 135
209	209	rules regarding: 136
210	210	1. Administering the regulatory sandbox, including 137
211	211	adopting rules regarding the applicati on process and the 138
212	212	reporting requirements of sandbox participants. 139
213	213	2. Cooperating and consulting with other applicable 140
214	214	agencies that administer regulatory sandboxes. 141
215	215	288.9974 General Regulatory Sandbox Program Advisory 142
216	216	Committee.— 143
217	217	(1) There is created the General Regulatory Sandbox 144
218	218	Program Advisory Committee. 145
219	219	(2) The advisory committee shall consist of 11 members as 146
220	220	follows: 147
221	221	(a) Six members who represent business interests from a 148
222	222	variety of industries, appointed by the director. 149
223	223	(b) Three members who represent applicable agencies 150
224	224
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232	232	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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234	234
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236	236	regulating businesses, appointed by the director. 151
237	237	(c) One member of the Senate, appointed by the President 152
238	238	of the Senate. 153
239	239	(d) One member of the House of Representatives, appointed 154
240	240	by the Speaker of the House of Representatives. 155
241	241	(3)(a) Subject to paragraph (b), members of the advisory 156
242	242	committee who are not legislators shall be appointed to 4 -year 157
243	243	terms. 158
244	244	(b) Notwithstanding the requirements of paragraph (a), the 159
245	245	director may adjust the length of terms of appoi ntments and 160
246	246	reappointments to the advisory committee so that approximately 161
247	247	half of the advisory committee is appointed every 2 years. 162
248	248	(4) The director shall select a chair of the advisory 163
249	249	committee on an annual basis. 164
250	250	(5) A majority of the members of t he advisory committee 165
251	251	constitutes a quorum for the purpose of conducting advisory 166
252	252	committee business, and the affirmative vote of a majority of 167
253	253	the members constitutes the official action of the advisory 168
254	254	committee. 169
255	255	(6) The advisory committee shall advise and make 170
256	256	recommendations to the office. 171
257	257	(7) The office shall provide administrative staff support 172
258	258	for the advisory committee. 173
259	259	(8) A member may not receive compensation or benefits for 174
260	260	the member's service, but a member appointed under paragraph 175
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269	269	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273	273	(2)(a) may receive per diem and travel expenses in accordance 176
274	274	with s. 112.061. 177
275	275	288.9975 General Regulatory Sandbox Program; application 178
276	276	requirements.— 179
277	277	(1) There is created in the office the General Regulatory 180
278	278	Sandbox Program. 181
279	279	(2) In administering the regul atory sandbox, the office: 182
280	280	(a) Shall consult with each applicable agency. 183
281	281	(b) Shall enable a person to obtain legal protections and 184
282	282	limited access to the market to demonstrate an offering without 185
283	283	obtaining a license or other authorization that might ot herwise 186
284	284	be required. 187
285	285	(c) May enter into agreements with or adopt the best 188
286	286	practices of corresponding federal regulatory agencies or 189
287	287	agencies in other states that are administering similar 190
288	288	programs. 191
289	289	(d) May consult with businesses about existing or 192
290	290	potential proposals for the regulatory sandbox. 193
291	291	(3)(a) An applicant may contact the office to request a 194
292	292	consultation regarding the regulatory sandbox before submitting 195
293	293	an application. 196
294	294	(b) The office may provide assistance to an applicant in 197
295	295	preparing an application for submission. 198
296	296	(4) An applicant shall submit an application to the 199
297	297	office, in a form prescribed by the office, that: 200
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306	306	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310	310	(a) Confirms the applicant is subject to the jurisdiction 201
311	311	of the state. 202
312	312	(b) Confirms the applicant has established a physi cal or 203
313	313	virtual location in the state, from which the demonstration of 204
314	314	an offering shall be developed and performed and where all 205
315	315	required records, documents, and data shall be maintained. 206
316	316	(c) Contains relevant personal and contact information for 207
317	317	the applicant, including the applicant's full legal name, 208
318	318	address, telephone number, e -mail address, website address, and 209
319	319	any other information required by the office. 210
320	320	(d) Discloses any criminal convictions of the applicant or 211
321	321	of any person who seeks to partici pate with the applicant in the 212
322	322	demonstration of an offering. 213
323	323	(e) Contains a description of the offering to be 214
324	324	demonstrated, including statements regarding: 215
325	325	1. How the offering is subject to licensing, legal 216
326	326	prohibition, or other authorization requireme nts outside of the 217
327	327	regulatory sandbox. 218
328	328	2. Each law or regulation that the applicant seeks to have 219
329	329	waived or suspended while participating in the regulatory 220
330	330	sandbox. 221
331	331	3. How the offering would benefit consumers. 222
332	332	4. How the offering is different from other available 223
333	333	offerings. 224
334	334	5. What risks might exist for consumers who use or 225
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343	343	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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347	347	purchase the offering. 226
348	348	6. How participating in the regulatory sandbox would 227
349	349	enable a successful demonstration of the offering. 228
350	350	7. A description of the proposed demonstratio n plan, 229
351	351	including estimated time periods for beginning and ending the 230
352	352	demonstration. 231
353	353	8. Recognition that the applicant shall be subject to all 232
354	354	laws and regulations pertaining to the applicant's offering 233
355	355	after conclusion of the demonstration. 234
356	356	9. How the applicant plans to end the demonstration and 235
357	357	protect consumers if the demonstration fails. 236
358	358	(f) Lists each applicable agency that the applicant knows 237
359	359	regulates the applicant's business. 238
360	360	(g) Provides any other required information as determined 239
361	361	by the office. 240
362	362	(5) An applicant shall file a separate application for 241
363	363	each offering that the applicant wishes to demonstrate. 242
364	364	(6) After an application is filed, the office shall: 243
365	365	(a) Classify, as a protected record, any part of the 244
366	366	application that the offic e determines is nonpublic, 245
367	367	confidential information that if disclosed would result in 246
368	368	actual economic harm to the applicant in accordance with s. 247
369	369	288.9984. 248
370	370	(b) Consult with each applicable agency that regulates the 249
371	371	applicant's business regarding whether more information is 250
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380	380	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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384	384	needed from the applicant. 251
385	385	(c) Seek any additional information from the applicant 252
386	386	that the office determines is necessary. 253
387	387	(7) No later than 5 business days after the day on which a 254
388	388	complete application is received by the office, th e office 255
389	389	shall: 256
390	390	(a) Review the application and refer the application to 257
391	391	each applicable agency that regulates the applicant's business. 258
392	392	(b) Provide to the applicant: 259
393	393	1. An acknowledgment of receipt of the application. 260
394	394	2. The identity and contact information of each applicable 261
395	395	agency to which the application has been referred for review. 262
396	396	(c) Provide public notice, on the office's website and 263
397	397	through other appropriate means, of each law or regulation that 264
398	398	the office is considering suspending or wa iving pursuant the 265
399	399	application. 266
400	400	(8)(a) Subject to paragraphs (c) and (g), no later than 30 267
401	401	days after the day on which an applicable agency receives a 268
402	402	complete application for review, the applicable agency shall 269
403	403	provide a written report to the director t hat includes the 270
404	404	applicable agency's findings. 271
405	405	(b) The written report shall: 272
406	406	1. Describe any identifiable, likely, and significant harm 273
407	407	to the health, safety, or financial well -being of consumers 274
408	408	against which the relevant law or regulation protects. 275
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417	417	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421	421	2. Make a recommendation to the office that the applicant 276
422	422	be admitted or denied entrance into the regulatory sandbox. 277
423	423	(c)1. The applicable agency may request an additional 5 278
424	424	business days to deliver the written report by providing notice 279
425	425	to the director, which request shall automatically be granted. 280
426	426	2. The applicable agency may only request one extension 281
427	427	per application. 282
428	428	(d) If the applicable agency recommends an applicant be 283
429	429	denied entrance into the regulatory sandbox, the written report 284
430	430	shall include a description of the reasons for the 285
431	431	recommendation, including why a temporary waiver or suspension 286
432	432	of the relevant laws or regulations would potentially 287
433	433	significantly harm the health, safety, or financial well -being 288
434	434	of consumers and the likelihood of s uch harm occurring. 289
435	435	(e) If the applicable agency determines that the 290
436	436	consumer's health, safety, or financial well -being can be 291
437	437	protected through less restrictive means than the existing laws 292
438	438	or regulations, the applicable agency shall provide a 293
439	439	recommendation of how that can be achieved. 294
440	440	(f) If an applicable agency fails to deliver a written 295
441	441	report as required in this subsection, the director shall assume 296
442	442	that the applicable agency does not object to the temporary 297
443	443	waiver or suspension of the relevant laws or regulations for an 298
444	444	applicant seeking to participate in the regulatory sandbox. 299
445	445	(g) Notwithstanding any other provision of this section, 300
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454	454	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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458	458	an applicable agency may by written notice to the office: 301
459	459	1. Within the 30 days after the day on which the 302
460	460	applicable agency receives a complete application for review, or 303
461	461	within 35 days if an extension has been requested by the 304
462	462	applicable agency, reject an application if the applicable 305
463	463	agency determines, in the applicable agency's sole discretion, 306
464	464	that the applicant's offering fails to comply with standards or 307
465	465	specifications: 308
466	466	a. Required by federal law or regulation; or 309
467	467	b. Previously approved for use by a federal agency; or 310
468	468	2. Reject an application preliminarily approved by the 311
469	469	office if the applicable age ncy: 312
470	470	a. Recommended rejection of the application in accordance 313
471	471	with paragraph (d) in the applicable agency's written report. 314
472	472	b. Provides in the written notice under this paragraph a 315
473	473	description of the applicable agency's reasons why approval of 316
474	474	the application would create a substantial risk of harm to the 317
475	475	health or safety of consumers or would create unreasonable 318
476	476	expenses for taxpayers. 319
477	477	(h) If an applicable agency rejects an application under 320
478	478	paragraph (g), the office must deny the application. 321
479	479	(9)(a) Upon receiving a written report described in 322
480	480	subsection (8), the director shall provide the application and 323
481	481	the written report to the advisory committee. 324
482	482	(b) The director may call the advisory committee to meet 325
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491	491	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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495	495	as needed, but not less than once per q uarter if applications 326
496	496	are available for review. 327
497	497	(c) After receiving and reviewing the application and each 328
498	498	written report, the advisory committee shall provide to the 329
499	499	director a recommendation as to whether the applicant should be 330
500	500	admitted as a sandbox participant under this part. 331
501	501	(d) As part of the advisory committee's review of each 332
502	502	written report, the advisory committee shall use the criteria 333
503	503	required for an applicable agency as described in subsection 334
504	504	(8). 335
505	505	(10)(a) In reviewing an application and each applicable 336
506	506	agency's written report, the office shall consult with each 337
507	507	applicable agency and the advisory committee before admitting an 338
508	508	applicant into the regulatory sandbox. 339
509	509	(b) The consultation with each applicable agency and the 340
510	510	consultation with the advisory committee may include seeking 341
511	511	information about whether: 342
512	512	1. The applicable agency has previously issued a license 343
513	513	or other authorization to the applicant. 344
514	514	2. The applicable agency has previously investigated, 345
515	515	sanctioned, or pursued legal action against the applicant. 346
516	516	(11) In reviewing an application under this section, the 347
517	517	office and the applicable agency shall consider whether a 348
518	518	competitor to the applicant is or has been a sandbox participant 349
519	519	and, if so, weigh that as a factor in favor of allowing the 350
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528	528	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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532	532	applicant to also become a sandbox participant. 351
533	533	(12) In reviewing an application under this section, the 352
534	534	office shall consider whether: 353
535	535	(a) The applicant's plan will adequately protect consumers 354
536	536	from potential harm identified by an appl icable agency in the 355
537	537	applicable agency's written report. 356
538	538	(b) The risk of harm to consumers is outweighed by the 357
539	539	potential benefits to consumers from the applicant's 358
540	540	participation in the regulatory sandbox. 359
541	541	(c) Laws or regulations that regulate an offer ing should 360
542	542	not be waived or suspended even if the applicant is approved as 361
543	543	a sandbox participant, including applicable antifraud or 362
544	544	disclosure laws or regulations. 363
545	545	(13)(a) An applicant becomes a sandbox participant if the 364
546	546	office approves the application and enters into a written 365
547	547	agreement with the applicant describing the specific laws and 366
548	548	regulations that are waived or suspended as part of the 367
549	549	applicant's participation in the regulatory sandbox. 368
550	550	(b) Notwithstanding any other provision of this part, the 369
551	551	office may not enter into a written agreement with an applicant 370
552	552	that waives or suspends a tax, fee, or charge that is 371
553	553	administered by the Department of Revenue. 372
554	554	(14)(a) The director may deny, at the director's sole 373
555	555	discretion, any application submitted under this section for any 374
556	556	reason, including if the director determines that the 375
557	557
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565	565	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
566	566
567	567
568	568
569	569	preponderance of evidence demonstrates that suspending or 376
570	570	waiving enforcement of a law or regulation would cause a 377
571	571	significant risk of harm to consumers. 378
572	572	(b) If the director denies an application submitted under 379
573	573	this section, the office shall provide to the applicant a 380
574	574	written description of the reasons for such denial. 381
575	575	(c) The denial of an application submitted under this 382
576	576	section is not subject to: 383
577	577	1. Agency or judicial review; or 384
578	578	2. Chapter 120. 385
579	579	(15) The director shall deny an application for 386
580	580	participation in the regulatory sandbox if: 387
581	581	(a) The director determines that the applicant should 388
582	582	instead apply for the Financial Technology Sandbox created in s. 389
583	583	559.952; or 390
584	584	(b) The applicant or any person who seeks to participate 391
585	585	with the applicant in the demonstration of an offering has been 392
586	586	convicted of, or entered a plea of guilty or nolo contendere to, 393
587	587	any crime involving significant theft, fraud, or dishonesty if 394
588	588	the crime bears a significant relationship to the applicant's or 395
589	589	other participant's ability to safely and competently 396
590	590	participate in the regulatory sandbox. 397
591	591	(16)(a) When an applicant is approved for participation in 398
592	592	the regulatory sandbox, the director shall provide public notice 399
593	593	of the approval on the office's website and through other 400
594	594
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602	602	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
603	603
604	604
605	605
606	606	appropriate means. 401
607	607	(b) The public notice described in paragraph (a) shall 402
608	608	state: 403
609	609	1. The full legal name of the sandbox participant. 404
610	610	2. The industries represented by the sandbox participant. 405
611	611	3. Each law or regulation that is suspended or waived for 406
612	612	the sandbox participant pursuant to the regulatory sandbox. 407
613	613	(17) In addition to the information described in 408
614	614	subsection (16), the office shall post the following information 409
615	615	on the office's website and also make the information available 410
616	616	through other appropriate means: 411
617	617	(a) Documentation regarding the office's determination and 412
618	618	grounds for approving each sandbox participant. 413
619	619	(b) Public notice regarding any sandbox partici pant's 414
620	620	termination of participation in the regulatory sandbox. 415
621	621	288.9976 Scope of the regulatory sandbox. — 416
622	622	(1) If the office approves an application under this part, 417
623	623	the sandbox participant has 12 months after the day on which the 418
624	624	application was approv ed to demonstrate the offering described 419
625	625	in the sandbox participant's application. 420
626	626	(2) An offering that is demonstrated in the regulatory 421
627	627	sandbox is subject to the following: 422
628	628	(a) Each consumer shall be a resident of the state. 423
629	629	(b) A law or regulation may not be waived or suspended if 424
630	630	waiving or suspending the law or regulation would prevent a 425
631	631
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639	639	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
640	640
641	641
642	642
643	643	consumer from seeking restitution in the event that the consumer 426
644	644	is harmed. 427
645	645	(3) This part does not restrict a sandbox participant who 428
646	646	holds a license or other authorization in another jurisdiction 429
647	647	from acting in accordance with that license or other 430
648	648	authorization. 431
649	649	(4) A sandbox participant is deemed to possess an 432
650	650	appropriate license or other authorization under the laws of the 433
651	651	state for the purposes of any pro vision of federal law requiring 434
652	652	licensure or other authorization by the state. 435
653	653	(5) Subject to subsection (6): 436
654	654	(a) During the demonstration period, a sandbox participant 437
655	655	is not subject to the enforcement of laws or regulations 438
656	656	identified in the written agreement between the office and the 439
657	657	sandbox participant described in s. 288.9975(13). 440
658	658	(b) A prosecutor may not file or pursue charges pertaining 441
659	659	to a violation of law or regulation identified in the written 442
660	660	agreement between the office and the sandbox p articipant 443
661	661	described in s. 288.9975(13) that occurs during the 444
662	662	demonstration period. 445
663	663	(c) An applicable agency may not file or pursue any 446
664	664	punitive action against a sandbox participant, including the 447
665	665	imposition of a fine or the suspension or revocation of a 448
666	666	license, for a violation of law or regulation that: 449
667	667	1. Is identified as being waived or suspended in the 450
668	668
669	669	HB 1287 2023
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671	671
672	672
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676	676	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
677	677
678	678
679	679
680	680	written agreement between the office and the sandbox participant 451
681	681	described in s. 288.9975(13). 452
682	682	2. Occurs during the demonstration period. 453
683	683	(6) Notwithstanding any other provision of this part: 454
684	684	(a) A sandbox participant does not have immunity related 455
685	685	to any criminal offense committed during the sandbox 456
686	686	participant's participation in the regulatory sandbox. 457
687	687	(b) A sandbox participant who provides an offering that is 458
688	688	a financial product or service shall comply with all applicable 459
689	689	federal laws and regulations governing consumer protection. 460
690	690	(7) By written notice, the office may terminate a sandbox 461
691	691	participant's participation in the regulatory sandb ox at any 462
692	692	time and for any reason, including if the director determines 463
693	693	that a sandbox participant is not operating in good faith to 464
694	694	bring an offering to consumers. 465
695	695	(8) The office and the office's employees are not liable 466
696	696	for any business losses or the r ecouping of application expenses 467
697	697	or other expenses related to the regulatory sandbox, including 468
698	698	expenses for: 469
699	699	(a) Denying an applicant's application to participate in 470
700	700	the regulatory sandbox for any reason; or 471
701	701	(b) Terminating a sandbox participant's participation in 472
702	702	the regulatory sandbox at any time and for any reason. 473
703	703	288.9977 Annual report. —By October 1 of each year, the 474
704	704	secretary shall provide a written report to the President of the 475
705	705
706	706	HB 1287 2023
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708	708
709	709
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713	713	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
714	714
715	715
716	716
717	717	Senate and the Speaker of the House of Representatives that 476
718	718	includes: 477
719	719	(1) Information regarding each sandbox participant, 478
720	720	including which industries each participant represents and each 479
721	721	participant's anticipated or actual cost savings. 480
722	722	(2) Recommendations regarding any laws or regulations that 481
723	723	should be permanently modified or eliminated. 482
724	724	(3) Information regarding consumer outcomes. 483
725	725	(4) Recommendations for changes to the regulatory sandbox 484
726	726	or other office duties. 485
727	727	288.9978 Consumer protection for regulatory sandbox. — 486
728	728	(1) Before demonstrating an offering to a consumer, a 487
729	729	sandbox participant shall disclose the following to the 488
730	730	consumer: 489
731	731	(a) The full legal name and contact information of the 490
732	732	sandbox participant. 491
733	733	(b) That the offering is authorized under the regulatory 492
734	734	sandbox and, if applicable, that the sa ndbox participant does 493
735	735	not hold a license or other authorization to provide an offering 494
736	736	under laws or regulations that regulate offerings outside of the 495
737	737	regulatory sandbox. 496
738	738	(c) That the offering is undergoing testing and may not 497
739	739	function as intended and may expose the consumer to certain 498
740	740	risks as identified by the applicable agency's written report. 499
741	741	(d) That the sandbox participant is not immune from civil 500
742	742
743	743	HB 1287 2023
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750	750	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
751	751
752	752
753	753
754	754	liability for any losses or damages caused by the offering. 501
755	755	(e) That the sandbox participant is not immune from 502
756	756	criminal prosecution for violations of laws or regulations that 503
757	757	are not suspended or waived pursuant to the regulatory sandbox. 504
758	758	(f) That the offering is a temporary demonstration that 505
759	759	may be discounted at the end of the demonstration peri od. 506
760	760	(g) The expected end date of the demonstration period. 507
761	761	(h) That a consumer may file a complaint with the office 508
762	762	regarding the offering being demonstrated and the office's 509
763	763	telephone number and website address where a complaint may be 510
764	764	filed. 511
765	765	(2) The disclosures required by subsection (1) shall be 512
766	766	provided to a consumer in a clear and conspicuous format and, 513
767	767	for an Internet or application -based offering, a consumer shall 514
768	768	acknowledge receipt of the disclosure before any transaction may 515
769	769	be completed. 516
770	770	(3) The office may require that a sandbox participant make 517
771	771	additional disclosures to a consumer. 518
772	772	288.9979 Requirements for exiting regulatory sandbox. — 519
773	773	(1) At least 30 days before the end of the 12 -month 520
774	774	regulatory sandbox demonstration period, a sand box participant 521
775	775	shall: 522
776	776	(a) Notify the office that the sandbox participant shall 523
777	777	exit the regulatory sandbox and discontinue the sandbox 524
778	778	participant's demonstration after the day on which the 12 -month 525
779	779
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787	787	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
788	788
789	789
790	790
791	791	demonstration period ends; or 526
792	792	(b) Seek an extension in accordance with s. 288.9981. 527
793	793	(2) Subject to subsection (3), if the office does not 528
794	794	receive notification as required by subsection (1), the 529
795	795	regulatory sandbox demonstration period ends at the end of the 530
796	796	12-month demonstration period. 531
797	797	(3) If a demonstration includes an offering that requires 532
798	798	ongoing duties, the sandbox participant may continue to perform 533
799	799	those duties but shall be subject to enforcement by the laws or 534
800	800	regulations that were waived or suspended pursuant to the 535
801	801	regulatory sandbox. 536
802	802	288.9981 Extensions.— 537
803	803	(1) No later than 30 days before the end of the 12 -month 538
804	804	regulatory sandbox demonstration period, a sandbox participant 539
805	805	may request an extension of the regulatory sandbox demonstration 540
806	806	period. 541
807	807	(2) The office shall grant or deny a request for an 542
808	808	extension by the end of the 12 -month regulatory sandbox 543
809	809	demonstration period. 544
810	810	(3) The office may grant an extension in accordance with 545
811	811	this section for not more than 12 months after the end of the 546
812	812	regulatory sandbox demonstration period. 547
813	813	288.9982 Recordkeeping and reporting requirements. — 548
814	814	(1) A sandbox participant shall retain records, documents, 549
815	815	and data produced in the ordinary course of business regarding 550
816	816
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819	819
820	820
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824	824	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
825	825
826	826
827	827
828	828	an offering demonstrated in the regulatory sandbox. 551
829	829	(2) If a sandbox particip ant ceases to provide an offering 552
830	830	before the end of a demonstration period, the sandbox 553
831	831	participant shall notify the office and each applicable agency 554
832	832	and report on actions taken by the sandbox participant to ensure 555
833	833	that consumers have not been harmed as a result of the offering. 556
834	834	(3) The office shall establish quarterly reporting 557
835	835	requirements for a sandbox participant, including reporting any 558
836	836	consumer complaints filed. 559
837	837	(4) The office may request records, documents, and data 560
838	838	from a sandbox participant an d, upon the office's request, the 561
839	839	sandbox participant shall make such records, documents, and data 562
840	840	available for inspection by the office. 563
841	841	(5)(a) The sandbox participant shall provide a written 564
842	842	report to the office and each applicable agency detailing an y 565
843	843	incidents that resulted in harm to the health, safety, or 566
844	844	financial well-being of a consumer. 567
845	845	(b) If a sandbox participant fails to notify the office 568
846	846	and each applicable agency of any incidents as described in 569
847	847	paragraph (a), or the office or an applica ble agency has 570
848	848	evidence that significant harm to a consumer has occurred, the 571
849	849	office may immediately remove the sandbox participant from the 572
850	850	regulatory sandbox. 573
851	851	(6)(a) No later than 30 days after the day on which a 574
852	852	sandbox participant exits the regulator y sandbox, the sandbox 575
853	853
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861	861	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
862	862
863	863
864	864
865	865	participant shall submit a written report to the office and each 576
866	866	applicable agency describing an overview of the sandbox 577
867	867	participant's demonstration, including any: 578
868	868	1. Incidents of harm to consumers. 579
869	869	2. Legal action filed against the participant as a result 580
870	870	of the participant's demonstration. 581
871	871	3. Complaints filed with an applicable agency as a result 582
872	872	of the participant's demonstration. 583
873	873	(b) No later than 30 days after the day on which an 584
874	874	applicable agency receives the quarterly reporting described in 585
875	875	subsection (3) or a written report from a sandbox participant as 586
876	876	described in paragraph (5)(a), the applicable agency shall 587
877	877	provide a written report to the office on the demonstration that 588
878	878	describes any statutory or regulatory reform the applicable 589
879	879	agency recommends as a result of the demonstration. 590
880	880	(7) The office may remove a sandbox participant from the 591
881	881	regulatory sandbox at any time if the office determines that a 592
882	882	sandbox participant has engaged in, is engaging in, or is about 593
883	883	to engage in any practice or transaction that violates this part 594
884	884	or that constitutes a violation of a law or regulation for which 595
885	885	suspension or waiver has not been granted under the regulatory 596
886	886	sandbox. 597
887	887	288.9983 Regulatory relief web page. — 598
888	888	(1) The office shall create and maintain on the 599
889	889	department's website a web page that invites residents and 600
890	890
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898	898	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
899	899
900	900
901	901
902	902	businesses to make suggestions regarding laws and regulations 601
903	903	that could be modified or eliminated to reduce the regulatory 602
904	904	burden of residents and businesses. 603
905	905	(2) On at least a quarterly basis, the office shall 604
906	906	compile the results of suggestions from the web page and provide 605
907	907	a written report to the Governor, the President of the Senate, 606
908	908	and the Speaker of the House of Representatives that describes 607
909	909	the most common suggestions. 608
910	910	(3) In creating the report described in subsection (2), 609
911	911	the office and the advisory committee: 610
912	912	(a) Shall ensure that nonpublic information of residents 611
913	913	and businesses that make suggestions on the web page is not made 612
914	914	public. 613
915	915	(b) May evaluate the suggestions and provide analysis and 614
916	916	suggestions regarding which laws and regulations could be 615
917	917	modified or eliminated to reduce the regulatory burden of 616
918	918	residents and businesses while still protecting consumers. 617
919	919	Section 2. Paragraph (a) of s ubsection (3) of section 618
920	920	20.60, Florida Statutes, is amended to read: 619
921	921	20.60 Department of Economic Opportunity; creation; powers 620
922	922	and duties.— 621
923	923	(3)(a) The following divisions and offices of the 622
924	924	Department of Economic Opportunity are established: 623
925	925	1. The Division of Strategic Business Development. 624
926	926	2. The Division of Community Development. 625
927	927
928	928	HB 1287 2023
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930	930
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935	935	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
936	936
937	937
938	938
939	939	3. The Division of Workforce Services. 626
940	940	4. The Division of Finance and Administration. 627
941	941	5. The Division of Information Technology. 628
942	942	6. The Office of the Secretary . 629
943	943	7. The Office of Economic Accountability and Transparency, 630
944	944	which shall: 631
945	945	a. Oversee the department's critical objectives as 632
946	946	determined by the secretary and make sure that the department's 633
947	947	key objectives are clearly communicated to the public. 634
948	948	b. Organize department resources, expertise, data, and 635
949	949	research to focus on and solve the complex economic challenges 636
950	950	facing the state. 637
951	951	c. Provide leadership for the department's priority issues 638
952	952	that require integration of policy, management, and critical 639
953	953	objectives from multiple programs and organizations internal and 640
954	954	external to the department; and organize and manage external 641
955	955	communication on such priority issues. 642
956	956	d. Promote and facilitate key department initiatives to 643
957	957	address priority economic issues a nd explore data and identify 644
958	958	opportunities for innovative approaches to address such economic 645
959	959	issues. 646
960	960	e. Promote strategic planning for the department. 647
961	961	8. The Office of Regulatory Relief. 648
962	962	Section 3. This act shall take effect July 1, 2023. 649