Chief Sponsor: Marc K. Roberts

Senate Sponsor: Lincoln Fillmore


8     General Description:
9          This bill modifies Title 13, Chapter 55, Regulatory Sandbox Program.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the requirements for an application to participate in the Regulatory
13     Sandbox Program; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          13-55-103, as enacted by Laws of Utah 2019, Chapter 243

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 13-55-103 is amended to read:
25          13-55-103. Regulatory Sandbox Program -- Application requirements.
26          (1) There is created in the department the Regulatory Sandbox Program.
27          (2) In administering the regulatory sandbox, the department:
28          (a) shall consult with each applicable agency;
29          (b) shall establish a program to enable a person to obtain limited access to the market

30     in the state to test an innovative product or service without obtaining a license or other
31     authorization that might otherwise be required; and
32          (c) may enter into agreements with or follow the best practices of the Consumer
33     Financial Protection Bureau or other states that are administering similar programs.
34          (3) An applicant for the regulatory sandbox shall provide to the department an
35     application in a form prescribed by the department that:
36          (a) demonstrates the applicant is subject to the jurisdiction of the state through
37     incorporation, residency, presence agreement, or otherwise;
38          [(b) demonstrates the applicant has established a physical location in the state, from
39     which testing will be developed and performed and where all required records, documents, and
40     data will be maintained;]
41          (b) demonstrates the applicant has established a physical or virtual location that is
42     adequately accessible to the department, from which testing will be developed and performed
43     and where all required records, documents, and data will be maintained;
44          (c) contains relevant personal and contact information for the applicant, including legal
45     names, addresses, telephone numbers, email addresses, website addresses, and other
46     information required by the department;
47          (d) discloses criminal convictions of the applicant or other participating personnel, if
48     any;
49          (e) demonstrates that the applicant has the necessary personnel, financial and technical
50     expertise, access to capital, and developed plan to test, monitor, and assess the innovative
51     product or service;
52          (f) contains a description of the innovative product or service to be tested, including
53     statements regarding all of the following:
54          (i) how the innovative product or service is subject to licensing or other authorization
55     requirements outside of the regulatory sandbox;
56          (ii) how the innovative product or service would benefit consumers;
57          (iii) how the innovative product or service is different from other products or services

58     available in the state;
59          (iv) what risks may confront consumers that use or purchase the innovative product or
60     service;
61          (v) how participating in the regulatory sandbox would enable a successful test of the
62     innovative product or service;
63          (vi) a description of the proposed testing plan, including estimated time periods for
64     beginning the test, ending the test, and obtaining necessary licensure or authorizations after the
65     testing is complete;
66          (vii) a description of how the applicant will perform ongoing duties after the test; and
67          (viii) how the applicant will end the test and protect consumers if the test fails; [and]
68          (g) if the applicant desires to make a claim of business confidentiality with respect to
69     any information provided to the department in the application, includes in accordance with
70     Section 63G-2-309:
71          (i) a written claim of business confidentiality; and
72          (ii) a concise statement of reasons supporting the claim of business confidentiality; and
73          [(g)] (h) provides any other required information as determined by the department.
74          (4) The department may collect an application fee from an applicant that is set in
75     accordance with Section 63J-1-504.
76          (5) An applicant shall file a separate application for each innovative product or service
77     that the applicant wants to test.
78          (6) After an application is filed, the department may seek additional information from
79     the applicant that the department determines is necessary.
80          (7) Subject to Subsection (8), not later than 90 days after the day on which a complete
81     application is received by the department, the department shall inform the applicant as to
82     whether the application is approved for entry into the regulatory sandbox.
83          (8) The department and an applicant may mutually agree to extend the 90-day time
84     period described in Subsection (7) for the department to determine whether an application is
85     approved for entry into the regulatory sandbox.

86          (9) (a) In reviewing an application under this section, the department shall consult
87     with, and get approval from, each applicable agency before admitting an applicant into the
88     regulatory sandbox.
89          (b) The consultation with an applicable agency may include seeking information about
90     whether:
91          (i) the applicable agency has previously issued a license or other authorization to the
92     applicant;
93          (ii) the applicable agency has previously investigated, sanctioned, or pursued legal
94     action against the applicant;
95          (iii) whether the applicant could obtain a license or other authorization from the
96     applicable agency after exiting the regulatory sandbox; and
97          (iv) whether certain licensure or other regulations should not be waived even if the
98     applicant is accepted into the regulatory sandbox.
99          (10) In reviewing an application under this section, the department shall consider
100     whether a competitor to the applicant is or has been a sandbox participant and, if so, weigh that
101     as a factor in favor of allowing the applicant to also become a sandbox participant.
102          (11) If the department and each applicable agency approve admitting an applicant into
103     the regulatory sandbox an applicant may become a sandbox participant.
104          (12) (a) The department may deny any application submitted under this section, for any
105     reason, at the department's discretion.
106          (b) If the department denies an application submitted under this section, the department
107     shall provide to the applicant a written description of the reasons for the denial as a sandbox
108     participant.