SECONDREGULARSESSION
HOUSECOMMITTEESUBSTITUTEFOR
HOUSEBILLNO.2587
101STGENERALASSEMBLY
4416H.02C DANARADEMANMILLER,ChiefClerk
ANACT
Toamendchapter620,RSMo,byaddingtheretosevennewsectionsrelatingtotheregulatory
sandboxact.
BeitenactedbytheGeneralAssemblyofthestateofMissouri,asfollows:
SectionA.Chapter620,RSMo,isamendedbyaddingtheretosevennewsections,to
2beknownassections620.3900,620.3905,620.3910,620.3915,620.3920,620.3925,and
3620.3930,toreadasfollows:
620.3900.1.Sections620.3900to620.3930shallbeknownandmaybecitedas
2the"RegulatorySandboxAct".
3 2.Forthepurposesofsections620.3900to620.3930,thefollowingtermsshall
4mean:
5 (1)"Advisorycommittee",thegeneralregulatorysandboxprogramadvisory
6committeecreatedinsection620.3910;
7 (2)"Applicableagency",adepartmentoragencyofthestatethatbylaw
8regulatesabusinessactivityandpersonsengagedinsuchbusinessactivity,includingthe
9issuanceoflicensesorothertypesofauthorization,andwhichtheregulatoryreliefoffice
10determineswouldotherwiseregulateasandboxparticipant.Aparticipantmayfall
11undermultipleapplicableagenciesifmultipleagenciesregulatethebusinessactivity
12thatissubjecttothesandboxprogramapplication."Applicableagency"shallnot
13includethedivisionofprofessionalregistrationanditsboards,commissions,committees
14andoffices;
15 (3)"Applicant"or"sandboxapplicant",apersonorbusinessthatappliesto
16participateinthesandboxprogram;
EXPLANATION—Matterenclosedinbold-facedbrackets[thus] intheabovebillisnotenactedandis
intendedtobeomittedfromthelaw.Matterinbold-facetypeintheabovebillisproposedlanguage. 17 (4)"Consumer",apersonwhopurchasesorotherwiseentersintoatransaction
18oragreementtoreceiveaproductorserviceofferedthroughthesandboxprogram
19pursuanttoademonstrationbyaprogramparticipant;
20 (5)"Demonstrate"or"demonstration",totemporarilyprovideanofferingofan
21innovativeproductorserviceinaccordancewiththeprovisionsofthesandbox
22program;
23 (6)"Department",thedepartmentofeconomicdevelopment;
24 (7)"Innovation",theuseorincorporationofanewidea,aneworemerging
25technology,oranewuseofexistingtechnologytoaddressaproblem,provideabenefit,
26orotherwiseofferaproduct,productionmethod,orservice;
27 (8)"Innovativeoffering",anofferingofaproductorservicethatincludesan
28innovation;
29 (9)"Product",acommerciallydistributedgoodthatis:
30 (a)Tangiblepersonalproperty;and
31 (b)Theresultofaproductionprocess;
32 (10)"Production",themethodorprocessofcreatingorobtainingagood,which
33mayincludeassembling,breeding,capturing,collecting,extracting,fabricating,
34farming,fishing,gathering,growing,harvesting,hunting,manufacturing,mining,
35processing,raising,ortrappingagood;
36 (11)"Regulatoryreliefoffice",theofficeresponsibleforadministeringthe
37sandboxprogramwithinthedepartment;
38 (12)"Sandboxparticipant"or"participant",apersonorbusinesswhose
39applicationtoparticipateinthesandboxprogramisapprovedinaccordancewiththe
40provisionsofsection620.3915;
41 (13)"Sandboxprogram",thegeneralregulatorysandboxprogramcreatedin
42sections620.3900to620.3930thatallowsapersontotemporarilydemonstratean
43innovativeofferingofaproductorserviceunderawaiverorsuspensionofoneormore
44statelawsorregulations;
45 (14)"Sandboxprogramdirector",thedirectoroftheregulatoryreliefoffice;
46 (15)"Service",anycommercialactivity,duty,orlaborperformedforanother
47personorbusiness.
620.3905.1.Thereisherebycreatedwithinthedepartmentofeconomic
2developmentthe"RegulatoryReliefOffice",whichshallbeadministeredbythe
3sandboxprogramdirector.Thesandboxprogramdirectorshallreporttothedirector
4ofthedepartmentandmayappointstaff,subjecttotheapprovalofthedirectorofthe
5department.
6 2.Theregulatoryreliefofficeshall:
HCSHB2587 2 7 (1)Administerthesandboxprogrampursuanttosections620.3900to620.3930;
8 (2)Actasaliaisonbetweenprivatebusinessesandapplicableagenciesthat
9regulatesuchbusinessestoidentifystatelawsorregulationsthatcouldpotentiallybe
10waivedorsuspendedunderthesandboxprogram;
11 (3)Consultwitheachapplicableagency;and
12 (4)Establishaprogramtoenableapersontoobtainlegalprotectionsand
13monitoredaccesstothemarketinthestatetodemonstrateaninnovativeproductor
14servicewithoutobtainingalicenseorotherauthorizationthatmightotherwisebe
15required.
16 3.Theregulatoryreliefofficeshall:
17 (1)Reviewstatelawsandregulationsthatmayunnecessarilyinhibitthecreation
18andsuccessofnewcompaniesorindustriesandproviderecommendationstothe
19governorandthegeneralassemblyonmodifyingorrepealingsuchstatelawsand
20regulations;
21 (2)Createaframeworkforanalyzingtherisklevelofthehealth,safety,and
22financialwell-beingofconsumersrelatedtopermanentlyremovingortemporarily
23waivinglawsandregulationsinhibitingthecreationorsuccessofnewandexisting
24companiesorindustries;
25 (3)Proposeandenterintoreciprocityagreementsbetweenstatesthatuseorare
26proposingtousesimilarregulatorysandboxprogramsasdescribedinsections620.3900
27to620.3930,providedthatsuchreciprocityagreementissupportedbyamajorityvoteof
28theadvisorycommitteeandtheregulatoryreliefofficeisdirectedbyanorderofthe
29governortopursuesuchreciprocityagreement;
30 (4)Enterintoagreementswithoradoptbestpracticesofcorrespondingfederal
31regulatoryagenciesorotherstatesthatareadministeringsimilarprograms;
32 (5)Consultwithbusinessesinthestateaboutexistingorpotentialproposalsfor
33thesandboxprogram;and
34 (6)Inaccordancewiththeprovisionsofchapter536andtheprovisionsof
35sections620.3900to620.3930,makerulesregardingtheadministrationofthesandbox
36program,includingmakingrulesregardingtheapplicationprocessandthereporting
37requirementsofsandboxparticipants.Anyruleorportionofarule,asthattermis
38definedinsection536.010,thatiscreatedundertheauthoritydelegatedinthissection
39shallbecomeeffectiveonlyifitcomplieswithandissubjecttoalloftheprovisionsof
40chapter536and,ifapplicable,section536.028.Thissectionandchapter536are
41nonseverable,andifanyofthepowersvestedwiththegeneralassemblypursuantto
42chapter536toreview,todelaytheeffectivedate,ortodisapproveandannularuleare
HCSHB2587 3 43subsequentlyheldunconstitutional,thenthegrantofrulemakingauthorityandanyrule
44proposedoradoptedafterAugust28,2022,shallbeinvalidandvoid.
45 4.(1)Theregulatoryreliefofficeshallcreateandmaintainonthedepartment's
46websiteawebpagethatinvitesresidentsandbusinessesinthestatetomakesuggestions
47regardinglawsandregulationsthatcouldbemodifiedoreliminatedtoreducethe
48regulatoryburdenonresidentsandbusinessesinthestate.
49 (2)Onatleastaquarterlybasis,theregulatoryreliefofficeshallcompilethe
50resultsofsuggestionsfromthewebpagecreatedpursuanttosubdivision(1)ofthis
51subsectionandprovideawrittenreporttothegovernorandthegeneralassemblythat
52describesthemostcommonsuggestions.
53 (3)Increatingthereportdescribedinsubdivision(2)ofthissubsection,the
54regulatoryreliefoffice:
55 (a)Shallensurethattheprivateinformationofresidentsandbusinessesthat
56makesuggestionsonthewebpageisnotmadepublic;and
57 (b)Mayevaluatethesuggestionsandprovideanalysisandsuggestionsregarding
58whichstatelawsandregulationscouldbemodifiedoreliminatedtoreducethe
59regulatoryburdenonresidentsandbusinessesinthestatewhilestillprotecting
60consumers.
61 5.(1)ByOctoberfirstofeachyear,thedepartmentshallsubmitanannual
62reporttothegovernorandthegeneralassembly,whichshallinclude:
63 (a)Informationregardingeachparticipantinthesandboxprogram,including
64industriesrepresentedbyeachparticipantandtheanticipatedoractualcostsavings
65thateachparticipantexperienced;
66 (b)Theanticipatedoractualbenefittoconsumerscreatedbyeach
67demonstrationinthesandboxprogram;
68 (c)Recommendationsregardinganylawsorregulationsthatshouldbe
69permanentlymodifiedorrepealed;
70 (d)Informationregardinganyhealthandsafetyeventsrelatedtotheactivitiesof
71aparticipantinthesandboxprogram;and
72 (e)Recommendationsforchangestothesandboxprogramorotherdutiesofthe
73regulatoryreliefoffice.
74 (2)Thedepartmentmayprovideaninterimreportfromthesandboxprogram
75directortothegovernorandgeneralassemblyonspecific,time-sensitiveissuesforthe
76functioningofthesandboxprogram,forthehealthandsafetyofconsumers,forthe
77successofparticipantsintheprogram,andforotherissuesofurgentneed.
620.3910.1.Thereisherebycreatedthe"GeneralRegulatorySandbox
2ProgramAdvisoryCommittee",tobecomposedofthefollowingmembers:
HCSHB2587 4 3 (1)Thedirectorofthedepartmentofeconomicdevelopment;
4 (2)Thedirectorofthedepartmentofcommerceandinsurance;
5 (3)Theattorneygeneralorhisorherdesignee;
6 (4)Amemberofthepublicorofaninstitutionofhighereducation,tobe
7appointedbythegovernor;
8 (5)Amemberofthepublicorofaninstitutionofhighereducation,tobe
9appointedbythespeakerofthehouseofrepresentatives;
10 (6)Amemberofthepublicorofaninstitutionofhighereducation,tobe
11appointedbythepresidentprotemporeofthesenate;
12 (7)Onememberofthehouseofrepresentatives,tobeappointedbythespeaker
13ofthehouseofrepresentatives;and
14 (8)Onememberofthesenate,tobeappointedbythepresidentprotemporeof
15thesenate.
16 2.(1)Advisorycommitteemembersshallbeappointedtoafour-yearterm.
17Memberswhoceaseholdingelectiveofficeshallbereplacedbythespeakerofthehouse
18ofrepresentativesorthepresidentprotemporeofthesenate,asapplicable.The
19sandboxprogramdirectormayestablishthetermsofinitialappointmentssothat
20approximatelyhalfoftheadvisorycommitteeisappointedeverytwoyears.
21 (2)Thesandboxprogramdirectorshallselectachairoftheadvisorycommittee
22everytwoyears.
23 (3)Noappointeeofthegovernor,speakerofthehouseofrepresentatives,or
24presidentprotemporeofthesenatemayservemorethantwocompleteterms.
25 3.Amajorityoftheadvisorycommitteeshallconstituteaquorumforthe
26purposeofconductingbusiness,andtheactionofamajorityofaquorumshall
27constitutetheactionoftheadvisorycommittee,exceptasprovidedinsubsection4of
28thissection.
29 4.Theadvisorycommitteemay,atitsowndiscretion,meettooverrideadecision
30oftheregulatoryreliefofficeontheadmissionordenialofanapplicanttothesandbox
31program,providedsuchoverrideisdecidedwithamajorityvoteofthemembersofthe
32advisorycommittee,andfurtherprovidedthatsuchvoteshallbetakenwithinten
33businessdaysoftheregulatoryreliefoffice'sdecision.
34 5.Theadvisorycommitteeshalladviseandmakerecommendationstothe
35regulatoryreliefofficeonwhethertoapproveapplicationstothesandboxprogram
36pursuanttosection620.3915.
37 6.Theregulatoryreliefofficeshallprovideadministrativestaffsupportforthe
38advisorycommittee.
HCSHB2587 5 39 7.Themembersoftheadvisorycommitteeshallservewithoutcompensation,
40butmaybereimbursedforanyactualandnecessaryexpensesincurredinthe
41performanceoftheadvisorycommittee'sofficialduties.
42 8.Meetingsoftheadvisorycommitteeshallnotbeconsideredpublicmeetings
43forthepurposesofchapter610.
620.3915.1.Anapplicantforthesandboxprogramshallprovidetothe
2regulatoryreliefofficeanapplicationinaformprescribedbytheregulatoryreliefoffice
3that:
4 (1)Confirmstheapplicantissubjecttothejurisdictionofthestate;
5 (2)Confirmstheapplicanthasestablishedphysicalresidenceoravirtual
6locationinthestatefromwhichthedemonstrationofaninnovativeofferingwillbe
7developedandperformed,andwhereallrequiredrecords,documents,anddatawillbe
8maintained;
9 (3)Containsrelevantpersonalandcontactinformationfortheapplicant,
10includinglegalnames,addresses,telephonenumbers,emailaddresses,website
11addresses,andotherinformationrequiredbytheregulatoryreliefoffice;
12 (4)Disclosescriminalconvictionsoftheapplicantorotherparticipating
13personnel,ifany;and
14 (5)Containsadescriptionoftheinnovativeofferingtobedemonstrated,
15includingstatementsregarding:
16 (a)Howtheinnovativeofferingissubjecttolicensing,legalprohibition,orother
17authorizationrequirementsoutsideofthesandboxprogram;
18 (b)Eachlaworregulationthattheapplicantseekstohavewaivedorsuspended
19whileparticipatinginthesandboxprogram;
20 (c)Howtheinnovativeofferingwouldbenefitconsumers;
21 (d)Howtheinnovativeofferingisdifferentfromotherinnovativeofferings
22availableinthestate;
23 (e)Therisksthatmightexistforconsumerswhouseorpurchasetheinnovative
24offering;
25 (f)Howparticipatinginthesandboxprogramwouldenableasuccessful
26demonstrationoftheinnovativeofferingofaninnovativeproductorservice;
27 (g)Adescriptionoftheproposeddemonstrationplan,includingestimatedtime
28periodsforbeginningandendingthedemonstration;
29 (h)Recognitionthattheapplicantwillbesubjecttoalllawsandregulations
30pertainingtotheapplicant'sinnovativeofferingaftertheconclusionofthe
31demonstration;
HCSHB2587 6 32 (i)Howtheapplicantwillendthedemonstrationandprotectconsumersifthe
33demonstrationfails;
34 (j)Alistofeachapplicableagency,ifany,thattheapplicantknowsregulatesthe
35applicant'sbusiness;and
36 (k)Anyotherrequiredinformationasdeterminedbytheregulatoryreliefoffice.
37 2.Anapplicantshallremittotheregulatoryreliefofficeanapplicationfeeof
38threehundreddollarsperapplicationforeachinnovativeoffering.
39 3.Anapplicantshallfileaseparateapplicationforeachinnovativeofferingthat
40theapplicantwishestodemonstrate.
41 4.Anapplicantforthesandboxprogrammaycontacttheregulatoryreliefoffice
42torequestaconsultationregardingthesandboxprogrambeforesubmittingan
43application.Theregulatoryreliefofficemayprovideassistancetoanapplicantin
44preparinganapplicationforsubmission.
45 5.(1)Afteranapplicationisfiled,theregulatoryreliefofficeshall:
46 (a)Consultwitheachapplicableagencythatregulatestheapplicant'sbusiness
47regardingwhethermoreinformationisneededfromtheapplicant;and
48 (b)Seekadditionalinformationfromtheapplicantthattheregulatoryrelief
49officedeterminesisnecessary.
50 (2)Nolaterthanfivebusinessdaysafterthedayonwhichacompleted
51applicationisreceivedbytheregulatoryreliefoffice,theregulatoryreliefofficeshall:
52 (a)Reviewtheapplicationandrefertheapplicationtoeachapplicableagency
53thatregulatestheapplicant'sbusiness;and
54 (b)Providetotheapplicant:
55 a.Anacknowledgmentofreceiptoftheapplication;and
56 b.Theidentityandcontactinformationofeachapplicableagencytowhichthe
57applicationhasbeenreferredforreview.
58 (3)Nolaterthanthirtydaysafterthedayonwhichanapplicableagency
59receivesacompletedapplicationforreview,theapplicableagencyshallprovidea
60writtenreporttothesandboxprogramdirectorwiththeapplicableagency'sfindings.
61Suchreportshall:
62 (a)Describeanyidentifiable,likely,andsignificantharmtothehealth,safety,or
63financialwell-beingofconsumersthattherelevantlaworregulationprotectsagainst;
64and
65 (b)Makearecommendationtotheregulatoryreliefofficethattheapplicant
66eitherbeadmittedordeniedentranceintothesandboxprogram.
67 (4)Anapplicableagencymayrequestanadditionalfivebusinessdaystodeliver
68thewrittenreportrequiredbysubdivision(3)ofthissubsectionbyprovidingnoticeto
HCSHB2587 7 69thesandboxprogramdirector,whichrequestshallautomaticallybegranted.An
70applicableagencymayrequestonlyoneextensionperapplication.
71 (5)Ifanapplicableagencyrecommendsanapplicantunderthissectionbe
72deniedentranceintothesandboxprogram,thewrittenreportrequiredbysubdivision
73(3)ofthissubsectionshallincludeadescriptionofthereasonsforsuchrecommendation,
74includingthereasonatemporarywaiverorsuspensionoftherelevantlawsor
75regulationswouldpotentiallysignificantlyharmthehealth,safety,orfinancialwell-
76beingofconsumersorthepublicandtheassessedlikelihoodofsuchharmoccurring.
77 (6)Ifanapplicableagencydeterminesthattheconsumer'sorpublic'shealth,
78safety,orfinancialwell-beingcanbeprotectedthroughlessrestrictivemeansthanthe
79existingrelevantlawsorregulations,theapplicableagencyshallprovidea
80recommendationofhowthatcanbeachieved.
81 (7)Ifanapplicableagencyfailstodeliverthewrittenreportrequiredby
82subdivision(3)ofthissubsection,thesandboxprogramdirectorshallassumethatthe
83applicableagencydoesnotobjecttothetemporarywaiverorsuspensionoftherelevant
84lawsorregulationsforanapplicantseekingtoparticipateinthesandboxprogram.
85 6.(1)Notwithstandinganyprovisionofthissectiontothecontrary,an
86applicableagencymay,bywrittennoticetotheregulatoryreliefoffice:
87 (a)Rejectanapplication,providedsuchrejectionoccurswithinthirtydaysafter
88thedayonwhichtheapplicableagencyreceivesacompleteapplicationforreview,or
89withinthirty-fivedaysifanextensionhasbeenrequestedbytheapplicableagency,ifthe
90applicableagencydetermines,intheapplicableagency'ssolediscretion,thatthe
91applicant'sofferingfailstocomplywithstandardsorspecifications:
92 a.Requiredbyfederalruleorregulation;or
93 b.Previouslyapprovedforusebyafederalagency;or
94 (b)Rejectanapplicationpreliminarilyapprovedbytheregulatoryreliefoffice,
95iftheapplicableagency:
96 a.Recommendsrejectionoftheapplicationintheapplicableagency'swritten
97reportsubmittedpursuanttosubdivision(3)ofsubsection5ofthissection;and
98 b.Providesinthewrittenreportsubmittedpursuanttosubdivision(3)of
99subsection5ofthissectionadescriptionoftheapplicableagency'sreasonsapprovalof
100theapplicationwouldcreateasubstantialriskofharmtothehealthorsafetyofthe
101public,orcreateunreasonableexpensesfortaxpayersinthestate.
102 (2)Ifanyapplicableagencyrejectsanapplicationonanonpreliminarybasis
103pursuanttosubdivision(1)ofthissubsection,theregulatoryreliefofficeshallnot
104approvetheapplication.
HCSHB2587 8 105 7.(1)Thesandboxprogramdirectorshallprovideallapplicationsand
106associatedwrittenreportstotheadvisorycommitteeuponreceivingawrittenreport
107fromanapplicableagency.
108 (2)Thesandboxprogramdirectormaycalltheadvisorycommitteetomeetas
109needed,butnotlessthanonceperquarterifapplicationsareavailableforreview.
110 (3)Afterreceivingandreviewingtheapplicationandeachassociatedwritten
111report,theadvisorycommitteeshallprovidetothesandboxprogramdirectorthe
112advisorycommittee'srecommendationastowhethertheapplicantshouldbeadmitted
113asasandboxparticipant.
114 (4)Aspartoftheadvisorycommittee'sreviewofeachreport,theadvisory
115committeeshallusecriteriausedbyapplicableagenciestoevaluateapplications.
116 8.Theregulatoryreliefofficeshallconsultwitheachapplicableagencyandthe
117advisorycommitteebeforeadmittinganapplicantintothesandboxprogram.Such
118consultationmayincludeseekinginformationaboutwhether:
119 (1)Theapplicableagencyhaspreviouslyissuedalicenseorotherauthorization
120totheapplicant;and
121 (2)Theapplicableagencyhaspreviouslyinvestigated,sanctioned,orpursued
122legalactionagainsttheapplicant.
123 9.Inreviewinganapplicationunderthissection,theregulatoryreliefofficeand
124applicableagenciesshallconsiderwhether:
125 (1)Acompetitortotheapplicantisorhasbeenasandboxparticipantand,ifso,
126weighthatasafactorinfavorofallowingtheapplicanttoalsobecomeasandbox
127participant;
128 (2)Theapplicant'splanwilladequatelyprotectconsumersfrompotentialharm
129identifiedbyanapplicableagencyintheapplicableagency'swrittenreport;
130 (3)Theriskofharmtoconsumersisoutweighedbythepotentialbenefitsto
131consumersfromtheapplicant'sparticipationinthesandboxprogram;and
132 (4)Certainstatelawsorregulationsthatregulateaninnovativeofferingshould
133notbewaivedorsuspendedeveniftheapplicantisapprovedasasandboxparticipant,
134includingapplicableanti-fraudordisclosureprovisions.
135 10.Anapplicantshallbecomeasandboxparticipantiftheregulatoryrelief
136officeapprovestheapplicationforthesandboxprogramandentersintoawritten
137agreementwiththeapplicantdescribingthespecificlawsandregulationsthatare
138waivedorsuspendedaspartofparticipationinthesandboxprogram.Notwithstanding
139anyotherprovisionofthissectiontothecontrary,theregulatoryreliefofficeshallnot
140enterintoawrittenagreementwithanapplicantthatexemptstheapplicantfromany
HCSHB2587 9 141income,property,orsalestaxliabilityunlesssuchapplicantotherwisequalifiesforan
142exemptionfromsuchtax.
143 11.(1)Thesandboxprogramdirectormaydenyathisorhersolediscretionany
144applicationsubmittedunderthissectionforanyreason,includingifthesandbox
145programdirectordeterminesthatthepreponderanceofevidencedemonstratesthat
146suspendingorwaivingenforcementofalaworregulationwouldcausesignificantriskof
147harmtoconsumersorresidentsofthestate.
148 (2)Ifthesandboxprogramdirectordeniesanapplicationsubmittedunderthis
149section,theregulatoryreliefofficeshallprovidetotheapplicantawrittendescriptionof
150thereasonsfornotallowingtheapplicanttobecomeasandboxparticipant.
151 (3)Thedenialofanapplicationsubmittedunderthissectionshallnotbesubject
152tojudicialoradministrativereview.
153 (4)Theacceptanceordenialofanapplicationsubmittedunderthissectionmay
154beoverriddenbyanaffirmativevoteofamajorityoftheadvisorycommitteeatthe
155discretionoftheadvisorycommittee,providedsuchvoteshalltakeplacewithinten
156businessdaysofthesandboxprogramdirector'sdecision.
157 (5)Thesandboxprogramdirectorshalldenyanapplicationforparticipationin
158thesandboxprogramiftheapplicantoranypersonwhoseekstoparticipatewiththe
159applicantindemonstratinganinnovativeofferinghasbeenconvicted,enteredintoa
160pleaofnolocontendere,orenteredapleaofguiltyornolocontendereheldinabeyance,
161foranycrimeinvolvingsignificanttheft,fraud,ordishonestyifthecrimebearsa
162significantrelationshiptotheapplicant'sorotherparticipant'sabilitytosafelyand
163competentlyparticipateinthesandboxprogram.
164 12.Whenanapplicantisapprovedforparticipationinthesandboxprogram,
165thesandboxprogramdirectormayprovidenoticeoftheapprovaltocompetitorsofthe
166applicantandtothegeneralpublic.
167 13.Applicationstoparticipateinthesandboxprogramshallbeconsidered
168publicrecordsforthepurposesofchapter610,provided,however,thatanyinformation
169containedinsuchapplicationsthatconstitutesproprietaryorconfidentialtradesecrets
170shallnotbesubjecttodisclosurepursuanttochapter610.
620.3920.1.Iftheregulatoryreliefofficeapprovesanapplicationpursuantto
2section620.3915,thesandboxparticipantshallhavetwenty-fourmonthsaftertheday
3onwhichtheapplicationwasapprovedtodemonstratetheinnovativeofferingdescribed
4inthesandboxparticipant'sapplication.
5 2.Aninnovativeofferingthatisdemonstratedwithinthesandboxprogramshall
6onlybeavailabletoconsumerswhoareresidentsofthestate.Nolaworregulationshall
HCSHB2587 10 7bewaivedorsuspendedifwaivingorsuspendingsuchlaworregulationwouldpreventa
8consumerfromseekingrestitutionintheeventthattheconsumerisharmed.
9 3.Nothinginsections620.3900to620.3930shallrestrictasandboxparticipant
10thatholdsalicenseorotherauthorizationinanotherjurisdictionfromactingin
11accordancewithsuchlicenseorotherauthorizationinthatjurisdiction.
12 4.Asandboxparticipantshallbedeemedtopossessanappropriatelicenseor
13otherauthorizationunderthelawsofthisstateforthepurposesofanyprovisionof
14federallawrequiringlicensureorotherauthorizationbythestate.
15 5.(1)Duringthedemonstrationperiod,asandboxparticipantshallnotbe
16subjecttotheenforcementofstatelawsorregulationsidentifiedinthewritten
17agreementbetweentheregulatoryreliefofficeandthesandboxparticipant.
18 (2)Aprosecutorshallnotfileorpursuechargespertainingtoanyactionrelated
19toalaworregulationidentifiedinthewrittenagreementbetweentheregulatoryrelief
20officeandthesandboxparticipantthatoccursduringthedemonstrationperiod.
21 (3)Astateagencyshallnotfileorpursueanypunitiveactionagainstasandbox
22participant,includingafineorlicensesuspensionorrevocation,fortheviolationofa
23laworregulationthatisidentifiedasbeingwaivedorsuspendedinthewritten
24agreementbetweentheregulatoryreliefofficeandthesandboxparticipantthatoccurs
25duringthedemonstrationperiod.
26 6.Notwithstandinganyprovisionofthissectiontothecontrary,asandbox
27participantshallnothaveimmunityrelatedtoanycriminaloffensecommittedduring
28thesandboxparticipant'sparticipationinthesandboxprogram.
29 7.Bywrittennotice,theregulatoryreliefofficemayendasandboxparticipant's
30participationinthesandboxprogramatanytimeandforanyreason,includingifthe
31sandboxprogramdirectordeterminesthatasandboxparticipantisnotoperatingin
32goodfaithtobringaninnovativeofferingtomarket;provided,however,thatthe
33sandboxprogramdirector'sdecisionmaybeoverriddenbyanaffirmativevoteofa
34majorityofthemembersoftheadvisorycommittee.
35 8.Theregulatoryreliefofficeandregulatoryreliefoffice'semployeesshallnot
36beliableforanybusinesslossesortherecoupingofapplicationexpensesorother
37expensesrelatedtothesandboxprogram,includingfor:
38 (1)Denyinganapplicant'sapplicationtoparticipateinthesandboxprogramfor
39anyreason;or
40 (2)Endingasandboxparticipant'sparticipationinthesandboxprogramatany
41timeandforanyreason.
620.3925.1.Beforedemonstratinganinnovativeofferingtoaconsumer,a
2sandboxparticipantshalldisclosethefollowinginformationtotheconsumer:
HCSHB2587 11 3 (1)Thenameandcontactinformationofthesandboxparticipant;
4 (2)Astatementthattheinnovativeofferingisauthorizedpursuanttothe
5sandboxprogramand,ifapplicable,thatthesandboxparticipantdoesnothavealicense
6orotherauthorizationtoprovideaninnovativeofferingunderstatelawsthatregulate
7offeringsoutsideofthesandboxprogram;
8 (3)Astatementthatspecificlawsandregulationshavebeenwaivedforthe
9sandboxparticipantforthedurationofitsdemonstrationinthesandboxprogram,with
10asummaryofsuchwaivedlawsandregulations;
11 (4)Astatementthattheinnovativeofferingisundergoingtestingandmaynot
12functionasintendedandmayexposetheconsumertocertainrisksasidentifiedbythe
13applicableagency'swrittenreport;
14 (5)Astatementthattheprovideroftheinnovativeofferingisnotimmunefrom
15civilliabilityforanylossesordamagescausedbytheinnovativeoffering;
16 (6)Astatementthattheprovideroftheinnovativeofferingisnotimmunefrom
17criminalprosecutionforviolationsofstatelaworregulationsthatarenotsuspendedor
18waivedasallowedwithinthesandboxprogram;
19 (7)Astatementthattheinnovativeofferingisatemporarydemonstrationthat
20maybediscontinuedattheendofthedemonstrationperiod;
21 (8)Theexpectedenddateofthedemonstrationperiod;and
22 (9)Astatementthataconsumermaycontacttheregulatoryreliefofficeandfile
23acomplaintregardingtheinnovativeofferingbeingdemonstrated,providingthe
24regulatoryreliefoffice'stelephonenumber,emailaddress,andwebsiteaddresswherea
25complaintmaybefiled.
26 2.Thedisclosuresrequiredbysubsection1ofthissectionshallbeprovidedtoa
27consumerinaclearandconspicuousformand,foraninternet-orapplication-based
28innovativeoffering,aconsumershallacknowledgereceiptofthedisclosurebeforeany
29transactionmaybecompleted.
30 3.Theregulatoryreliefofficemayrequirethatasandboxparticipantmake
31additionaldisclosurestoaconsumer.
620.3930.1.Atleastthirtydaysbeforetheendofthetwenty-four-month
2demonstrationperiod,asandboxparticipantshall:
3 (1)Notifytheregulatoryreliefofficethatthesandboxparticipantwillexitthe
4sandboxprogramanddiscontinuethesandboxparticipant'sdemonstrationafterthe
5dayonwhichthetwenty-four-monthdemonstrationperiodends;or
6 (2)Seekanextensionpursuanttosubsection4ofthissection.
HCSHB2587 12 7 2.Iftheregulatoryreliefofficedoesnotreceivenotificationasrequiredby
8subsection1ofthissection,thedemonstrationperiodshallendattheendofthetwenty-
9four-monthdemonstrationperiod.
10 3.Ifademonstrationincludesaninnovativeofferingthatrequiresongoing
11servicesordutiesbeyondthetwenty-four-monthdemonstrationperiod,thesandbox
12participantmaycontinuetodemonstratetheinnovativeofferingbutshallbesubjectto
13enforcementofthelawsorregulationsthatwerewaivedorsuspendedaspartofthe
14sandboxprogram.
15 4.(1)Nolaterthanthirtydaysbeforetheendofthetwenty-four-month
16demonstrationperiod,asandboxparticipantmayrequestanextensionofthe
17demonstrationperiod.
18 (2)Theregulatoryreliefofficeshallgrantordenyarequestforanextensionby
19theendofthetwenty-fourmonthdemonstrationperiod.
20 (3)Theregulatoryreliefofficemaygrantanextensionfornotmorethantwelve
21monthsaftertheendofthedemonstrationperiod.
22 (4)Sandboxparticipantsmayapplyforadditionalextensionsinaccordancewith
23thecriteriausedtoassesstheirinitialapplication,uptoacumulativemaximumofseven
24yearsinclusiveoftheoriginaltwenty-four-monthdemonstrationperiod.
25 5.(1)Asandboxparticipantshallretainrecords,documents,anddataproduced
26intheordinarycourseofbusinessregardinganinnovativeofferingdemonstratedinthe
27sandboxprogramfortwenty-fourmonthsafterexitingthesandboxprogram.
28 (2)Theregulatoryreliefofficemayrequestrelevantrecords,documents,and
29datafromasandboxparticipant,and,upontheregulatoryreliefoffice'srequest,the
30sandboxparticipantshallmakesuchrecords,documents,anddataavailablefor
31inspectionbytheregulatoryreliefoffice.
32 6.Ifasandboxparticipantceasestoprovideaninnovativeofferingbeforethe
33endofademonstrationperiod,thesandboxparticipantshallnotifytheregulatoryrelief
34officeandeachapplicableagencyandreportonactionstakenbythesandbox
35participanttoensureconsumershavenotbeenharmedasaresult.
36 7.Theregulatoryreliefofficeshallestablishquarterlyreportingrequirements
37foreachsandboxparticipant,includinginformationaboutanyconsumercomplaints.
38 8.(1)Thesandboxparticipantshallnotifytheregulatoryreliefofficeandeach
39applicableagencyofanyincidentsthatresultinharmtothehealth,safety,orfinancial
40well-beingofaconsumer.Theparametersforsuchincidentsthatshallbereportedshall
41belaidoutinthewrittenagreementbetweentheapplicantandtheregulatoryrelief
42office.
HCSHB2587 13 43 (2)Ifasandboxparticipantfailstonotifytheregulatoryreliefofficeandeach
44applicableagencyofanyincidentsrequiredtobereported,ortheregulatoryreliefoffice
45oranapplicableagencyhasevidencethatsignificantharmtoaconsumerhasoccurred,
46theregulatoryreliefofficemayimmediatelyremovethesandboxparticipantfromthe
47sandboxprogram.
48 9.Nolaterthanthirtydaysafterthedayonwhichasandboxparticipantexits
49thesandboxprogram,thesandboxparticipantshallsubmitawrittenreporttothe
50regulatoryreliefofficeandeachapplicableagencydescribinganoverviewofthe
51sandboxparticipant'sdemonstration.Failuretosubmitsuchareportshallresultinthe
52sandboxparticipantandanyentitythatlateremploysamemberoftheleadershipteam
53ofthesandboxparticipantbeingprohibitedfromfutureparticipationinthesandbox
54program.Suchreportshallincludeany:
55 (1)Incidentsofharmtoconsumers;
56 (2)Legalactionfiledagainstthesandboxparticipantasaresultofthe
57participant'sdemonstration;or
58 (3)Complaintfiledwithanapplicableagencyasaresultofthesandbox
59participant'sdemonstration.
60 10.Nolaterthanthirtydaysafterthedayonwhichanapplicableagency
61receivesthequarterlyreportrequiredbysubsection7ofthissectionorawrittenreport
62fromasandboxparticipantasrequiredbysubsection9ofthissection,theapplicable
63agencyshallprovideawrittenreporttotheregulatoryreliefofficeonthe
64demonstration,whichdescribesanystatutoryorregulatoryreformtheapplicable
65agencyrecommendsasaresultofthedemonstration.
66 11.Theregulatoryreliefofficemayremoveasandboxparticipantfromthe
67sandboxprogramatanytimeiftheregulatoryreliefofficedeterminesthatasandbox
68participanthasengagedin,isengagingin,orisabouttoengageinanypracticeor
69transactionthatisinviolationofsections620.3900to620.3930orthatconstitutesa
70violationofalaworregulationforwhichsuspensionorwaiverhasnotbeengranted
71pursuanttothesandboxprogram.
âś”
HCSHB2587 14