HCSHB2587--THEREGULATORYSANDBOX(Riley)
COMMITTEEOFORIGIN:StandingCommitteeonEconomicDevelopment
Thisbillestablishesthe"RegulatorySandboxAct",whichcreates
the"RegulatoryReliefOffice"withintheDepartmentofEconomic
Development. TheRegulatoryReliefOfficeshalladministerthe
provisionsofthebillwiththepurposeofidentifyingstatelaws
orregulationsthatcouldpotentiallybewaivedorsuspendedfor
participatingbusinessesduringa24monthperiodinwhichthe
participatingbusinessdemonstratesaninnovativeproductoffering
toconsumers.
TheRegulatoryReliefOfficeshallmaintainawebpageonthe
Department'swebsitethatinvitesresidentsandbusinessestomake
suggestionsregardinglawsandregulationsthatcouldbemodified
oreliminatedtoreducetheregulatoryburdenofresidentsand
businessesinthestate(Section620.3905,RSMo).
TheRegulatoryReliefOfficeshallberesponsibleforevaluating
andapprovingordenyingapplicationstoparticipateintheSandbox
Program. Anapplicantshallsubmitanapplicationalongwitha
$300applicationfeetotheRegulatoryReliefOffice,whichshall
includecontactinformationandadescriptionoftheinnovative
offeringtobedemonstrated,includingstatementsregardinghowthe
innovativeofferingissubjecttolicensing,legalprohibition,or
otherauthorizationrequirementsoutsideoftheSandboxProgram;
eachlaworregulationthattheapplicantseekstohavewaivedor
suspendedwhileparticipatingintheSandboxProgram;howthe
innovativeofferingwouldbenefitconsumers;whatrisksmightexist
forconsumerswhouseorpurchasetheinnovativeoffering;and
otherrequiredinformation,asdescribedinthebill.
Nolaterthanfivebusinessdaysafterthedayonwhichacompleted
applicationisreceivedbytheRegulatoryReliefOffice,theOffice
shallreviewtheapplicationandrefertheapplicationtoeach
applicableagency,asdefinedinthebill,thatregulatesthe
applicant'sbusiness. Nolaterthan30daysafterthedayonwhich
anapplicableagencyreceivesacompletedapplicationforreview,
theapplicableagencyshallprovideawrittenreporttotheSandbox
Programdirectorwiththeapplicableagency'sfindings,including
anyidentifiable,likely,andsignificantharmtothehealth,
safety,orfinancialwell-beingofconsumersthattherelevantlaw
orregulationprotectsagainst,andarecommendation tothe
RegulatoryReliefOfficethattheapplicanteitherbeadmittedor
deniedentranceintotheSandboxProgram. Anapplicableagencymay
denyanapplicationforreasonsdescribedinthebill.The
RegulatoryReliefOfficeshallnotapproveanyapplicationdenied
byanapplicableagency(Section620.3915). Uponthereceiptofareportfromallapplicableagencies,the
RegulatoryReliefOfficeshallprovidetheapplicationand
associatedreportstothe"GeneralRegulatorySandboxProgram
AdvisoryCommittee",whichiscreatedbythebill.TheAdvisory
Committeeshallbecomposedofeightmembers,asdescribedinthe
billincludingonememberoftheHouseofRepresentatives appointed
bytheSpeaker,onememberoftheSenateappointedbythePresident
ProTemandthreemembersofthepublicoraninstitutionofhigher
educationappointedoneeachbytheGovernor,thePresidentPro
Tem,andtheSpeaker. TheAdvisoryCommitteeshalladviseandmake
recommendations totheRegulatoryReliefOfficeonwhetherto
approveapplicationstotheSandboxProgram,andmaymeetatits
owndiscretiontooverrideadecisionoftheRegulatoryRelief
OfficeontheadmissionordenialofanapplicanttotheSandbox
Program,providedsuchoverrideisdecidedwithamajorityvoteof
themembersoftheAdvisoryCommittee,andfurtherprovidedthat
suchvoteshallbetakenwithin10businessdaysoftheRegulatory
ReliefOffice'sdecision. MeetingsoftheAdvisoryCommitteeshall
beconsideredpublicmeetingsforthepurposesoftheSunshineLaw,
however,meetingsshallbeclosedifthepurposeofthemeetingis
todiscussanapplicationforparticipationintheregulatory
sandboxandfailingtoholdaclosedmeetingwouldreveal
informationthatconstitutesproprietaryorconfidentialtrade
secrets(Section620.3910).
Uponapprovalofanapplication,aSandboxparticipantshallhave
24monthsafterthedayonwhichitsapplicationwasapprovedto
demonstratetheinnovativeofferingdescribedintheSandbox
participant'sapplication. Duringsuchperiod,theSandbox
participantshallbeexemptfromthelawsandregulationsoutlined
inanagreemententeredintowiththeRegulatoryReliefOffice.
Innovativeofferingsshallonlybeavailabletoconsumerswhoare
residentsofthisstate,andnolaworregulationshallbewaived
orsuspendedifsuchwaiverorsuspensionwouldpreventaconsumer
fromseekingrestitutionintheeventthattheconsumerisharmed.
ASandboxparticipantshallnotbesubjecttoprosecutionor
administrative penaltyforaviolationofanylaworregulation
thatiswaivedorsuspendedduringthedurationofthe
participant'sdemonstrationperiod(Section620.3920).
Priortodemonstratinganinnovativeoffering,aSandbox
participantshalldisclosecertaininformationtoconsumers,as
describedinthebill(Section620.3925).
Atleast30dayspriortotheendofaparticipant'sdemonstration
period,theparticipantshallnotifytheRegulatoryReliefOffice
thatiteitherintendstoexittheSandboxProgramorthatitseeks
anextension. TheRegulatoryReliefOfficemaygrantanextension nottoexceed12months,andaparticipantmayseekadditional
extensionsuptoacumulativemaximumofsevenyears.Ifa
demonstrationincludesaninnovativeofferingthatrequiresongoing
servicesordutiesbeyondthe24monthdemonstrationperiod,the
participantmaycontinuetodemonstratetheoffering,butshallbe
subjecttoalllawsandregulationsthatwerewaivedorsuspended
aspartoftheSandboxProgram.
ASandboxparticipantshallretaincertainrecordsforaperiodof
24monthsafterexitingtheSandboxProgram.
TheRegulatoryReliefOfficeshallestablishquarterlyreporting
requirementsforeachparticipant,andeachparticipantshall
notifytheRegulatoryReliefOfficeandeachapplicableagencyof
anyincidentsthatresultinharmtothehealth,safety,or
financialwell-beingofaconsumer. Anyincidentreportsshallbe
publiclyavailableontheregulatorysandboxwebpageprovided,
however,thatanyinformationcontainedinsuchreportsthat
constitutesproprietaryorconfidentialtradesecretsshallnotbe
subjecttodisclosurepursuanttotheSunshineLaw.
Nolaterthan30daysafteraSandboxparticipantexitstheSandbox
Program,suchparticipantshallsubmitawrittenreport,as
describedinthebill,describinganoverviewofthedemonstration.
Nolaterthan30daysafterreceivingsuchreport,anapplicable
agencyshallprovideawrittenreporttotheRegulatoryRelief
Officethatdescribesanystatutoryorregulatoryreformthe
applicableagencyrecommends(Section620.3930).
ThisbillissimilartoSB1068(2022).