2
3
4
5
6 Cosponsors:
7 Cheryl K. Acton
8 Carl R. Albrecht
9 Melissa G. Ballard
10 Stewart E. Barlow
11 Walt Brooks
12 Steve R. Christiansen
13 Jennifer Dailey-Provost
14 Francis D. Gibson
15 Matthew H. Gwynn
16 Stephen G. Handy
17 Suzanne Harrison
18 Sandra Hollins
19 Dan N. Johnson
20 Marsha Judkins
21 Michael L. Kohler
Karen Kwan
Bradley G. Last
Karianne Lisonbee
Ashlee Matthews
Kelly B. Miles
Carol Spackman Moss
Jefferson Moss
Merrill F. Nelson
Michael J. Petersen
Val L. Peterson
Susan Pulsipher
Paul Ray
Adam Robertson
Angela Romero
Douglas V. Sagers
Travis M. Seegmiller
V. Lowry Snow
Andrew Stoddard
Keven J. Stratton
Mark A. Strong
Jordan D. Teuscher
Norman K. Thurston
Raymond P. Ward
Christine F. Watkins
Elizabeth Weight
Douglas R. Welton
Mark A. Wheatley
Ryan D. Wilcox
Mike Winder
22
23 LONG TITLE
24 General Description:
25 This bill creates the Utah Office of Regulatory Relief (regulatory relief office) within
26 the Governor's Office of Economic Development (GOED).
27 Highlighted Provisions:
28 This bill:
29 ▸ creates the regulatory relief office within GOED;
30 ▸ defines terms;
31 ▸ describes the duties of the regulatory relief office;
32 ▸ creates the General Regulatory Sandbox Program (sandbox program), which allows
33 the office to waive laws or regulations applicable to a participant under certain
34 circumstances;
35 ▸ describes how the sandbox program is to be administered by the regulatory relief
36 office;
37 ▸ describes reporting and other requirements of the regulatory relief office and
38 participants in the sandbox program;
39 ▸ creates the General Regulatory Sandbox Program Advisory Committee (advisory
40 committee);
41 ▸ describes the membership and duties of the advisory committee; and
42 ▸ requires the regulatory relief office to create a web page where residents and
43 businesses in the state may provide suggestions regarding modifying or eliminating
44 laws and regulations to reduce the regulatory burden on residents and businesses in
45 the state.
46 Money Appropriated in this Bill:
47 None
48 Other Special Clauses:
49 None
50 Utah Code Sections Affected:
51 AMENDS:
52 13-55-102, as enacted by Laws of Utah 2019, Chapter 243
53 31A-47-102, as enacted by Laws of Utah 2020, Chapter 141
54 63G-2-305, as last amended by Laws of Utah 2020, Chapters 112, 198, 339, 349, 382,
55 and 393
56 ENACTS:
57 63N-16-101, Utah Code Annotated 1953
58 63N-16-102, Utah Code Annotated 1953
59 63N-16-103, Utah Code Annotated 1953
60 63N-16-104, Utah Code Annotated 1953
61 63N-16-105, Utah Code Annotated 1953
62 63N-16-201, Utah Code Annotated 1953
63 63N-16-202, Utah Code Annotated 1953
64 63N-16-203, Utah Code Annotated 1953
65 63N-16-204, Utah Code Annotated 1953
66 63N-16-205, Utah Code Annotated 1953
67 63N-16-206, Utah Code Annotated 1953
68 63N-16-301, Utah Code Annotated 1953
69
70 Be it enacted by the Legislature of the state of Utah:
71 Section 1. Section 13-55-102 is amended to read:
72 13-55-102. Definitions.
73 As used in this chapter:
74 (1) "Applicable agency" means a department or agency of the state, including the
75 department and the Department of Financial Institutions, that by law regulates certain types of
76 business activity in the state and persons engaged in such business activity, including the
77 issuance of licenses or other types of authorization, which the department determines would
78 otherwise regulate a sandbox participant.
79 (2) "Applicant" means an individual or entity that is applying to participate in the
80 regulatory sandbox.
81 (3) "Blockchain technology" means the use of a digital database containing records of
82 financial transactions, which can be simultaneously used and shared within a decentralized,
83 publicly accessible network and can record transactions between two parties in a verifiable and
84 permanent way.
85 (4) "Consumer" means a person that purchases or otherwise enters into a transaction or
86 agreement to receive an innovative product or service that is being tested by a sandbox
87 participant.
88 (5) "Department" means the Department of Commerce.
89 (6) (a) "Financial product or service" means:
90 (i) a financial product or financial service that requires state licensure or registration; or
91 (ii) a financial product or financial service that includes a business model, delivery
92 mechanism, or element that may require a license or other authorization to act as a financial
93 institution, enterprise, or other entity that is regulated by Title 7, Financial Institutions Act, or
94 other related provisions.
95 (b) "Financial product or service" does not include a product or service that is governed
96 by:
97 (i) Title 31A, Insurance Code; or
98 (ii) Title 61, Chapter 1, Utah Uniform Securities Act.
99 (7) "Innovation" means the use or incorporation of a new idea, a new or emerging
100 technology, or a new use of existing technology, including blockchain technology, to address a
101 problem, provide a benefit, or otherwise offer a product, service, business model, or delivery
102 mechanism [
103
104 (8) "Innovative product or service" means a financial product or service that includes
105 an innovation.
106 (9) "Regulatory sandbox" means the Regulatory Sandbox Program created by Section
107 13-55-103, which allows a person to temporarily test an innovative product or service on a
108 limited basis without otherwise being licensed or authorized to act under the laws of the state.
109 (10) "Sandbox participant" means a person whose application to participate in the
110 regulatory sandbox is approved in accordance with the provisions of this chapter.
111 (11) "Test" means to provide an innovative product or service in accordance with the
112 provisions of this chapter.
113 Section 2. Section 31A-47-102 is amended to read:
114 31A-47-102. Definitions.
115 As used in this chapter:
116 (1) "Applicable agency" means a department or agency of the state, including the
117 department and the Department of Commerce, that by law regulates certain types of
118 insurance-related business activity in the state and persons engaged in such insurance-related
119 business activity, including the issuance of licenses or other types of authorization, which the
120 department determines would otherwise regulate an insurance sandbox participant.
121 (2) "Applicant" means an individual or entity that is applying to participate in the
122 insurance regulatory sandbox.
123 (3) "Blockchain technology" means the use of a digital database containing records of
124 financial transactions, which can be simultaneously used and shared within a decentralized,
125 publicly accessible network and can record transactions between two parties in a verifiable and
126 permanent way.
127 (4) "Consumer" means a person that purchases or otherwise enters into a transaction or
128 agreement to receive an innovative insurance product or service that is being tested by an
129 insurance sandbox participant.
130 (5) "Department" means the Department of Insurance.
131 (6) "Innovation" means the use or incorporation of a new idea, a new or emerging
132 technology, or a new use of existing technology, including blockchain technology, to address a
133 problem, provide a benefit, or otherwise offer a product, service, business model, or delivery
134 mechanism [
135
136 (7) "Innovative insurance product or service" means an insurance product or service
137 that includes an innovation.
138 (8) (a) "Insurance product or service" means an insurance product or insurance service
139 that requires state licensure, registration, or other authorization as regulated by Title 31A,
140 Insurance Code, including an insurance product or insurance service that includes a business
141 model, delivery mechanism, or element that requires a license, registration, or other
142 authorization to do an insurance business, act as an insurance producer or consultant, or engage
143 in insurance adjusting as regulated by Title 31A, Insurance Code.
144 (b) "Insurance product or service" does not include a product or service that is
145 governed by Title 61, Chapter 1, Utah Uniform Securities Act.
146 (9) "Insurance regulatory sandbox" means the Insurance Regulatory Sandbox Program
147 created by Section 31A-47-103, which allows a person to temporarily test an innovative
148 insurance product or service on a limited basis without otherwise being licensed or authorized
149 to act under the laws of the state.
150 (10) "Insurance sandbox participant" means a person whose application to participate
151 in the insurance regulatory sandbox is approved in accordance with the provisions of this
152 chapter.
153 (11) "Test" means to provide an innovative insurance product or service in accordance
154 with the provisions of this chapter.
155 Section 3. Section 63G-2-305 is amended to read:
156 63G-2-305. Protected records.
157 The following records are protected if properly classified by a governmental entity:
158 (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
159 has provided the governmental entity with the information specified in Section 63G-2-309;
160 (2) commercial information or nonindividual financial information obtained from a
161 person if:
162 (a) disclosure of the information could reasonably be expected to result in unfair
163 competitive injury to the person submitting the information or would impair the ability of the
164 governmental entity to obtain necessary information in the future;
165 (b) the person submitting the information has a greater interest in prohibiting access
166 than the public in obtaining access; and
167 (c) the person submitting the information has provided the governmental entity with
168 the information specified in Section 63G-2-309;
169 (3) commercial or financial information acquired or prepared by a governmental entity
170 to the extent that disclosure would lead to financial speculations in currencies, securities, or
171 commodities that will interfere with a planned transaction by the governmental entity or cause
172 substantial financial injury to the governmental entity or state economy;
173 (4) records, the disclosure of which could cause commercial injury to, or confer a
174 competitive advantage upon a potential or actual competitor of, a commercial project entity as
175 defined in Subsection 11-13-103(4);
176 (5) test questions and answers to be used in future license, certification, registration,
177 employment, or academic examinations;
178 (6) records, the disclosure of which would impair governmental procurement
179 proceedings or give an unfair advantage to any person proposing to enter into a contract or
180 agreement with a governmental entity, except, subject to Subsections (1) and (2), that this
181 Subsection (6) does not restrict the right of a person to have access to, after the contract or
182 grant has been awarded and signed by all parties:
183 (a) a bid, proposal, application, or other information submitted to or by a governmental
184 entity in response to:
185 (i) an invitation for bids;
186 (ii) a request for proposals;
187 (iii) a request for quotes;
188 (iv) a grant; or
189 (v) other similar document; or
190 (b) an unsolicited proposal, as defined in Section 63G-6a-712;
191 (7) information submitted to or by a governmental entity in response to a request for
192 information, except, subject to Subsections (1) and (2), that this Subsection (7) does not restrict
193 the right of a person to have access to the information, after:
194 (a) a contract directly relating to the subject of the request for information has been
195 awarded and signed by all parties; or
196 (b) (i) a final determination is made not to enter into a contract that relates to the
197 subject of the request for information; and
198 (ii) at least two years have passed after the day on which the request for information is
199 issued;
200 (8) records that would identify real property or the appraisal or estimated value of real
201 or personal property, including intellectual property, under consideration for public acquisition
202 before any rights to the property are acquired unless:
203 (a) public interest in obtaining access to the information is greater than or equal to the
204 governmental entity's need to acquire the property on the best terms possible;
205 (b) the information has already been disclosed to persons not employed by or under a
206 duty of confidentiality to the entity;
207 (c) in the case of records that would identify property, potential sellers of the described
208 property have already learned of the governmental entity's plans to acquire the property;
209 (d) in the case of records that would identify the appraisal or estimated value of
210 property, the potential sellers have already learned of the governmental entity's estimated value
211 of the property; or
212 (e) the property under consideration for public acquisition is a single family residence
213 and the governmental entity seeking to acquire the property has initiated negotiations to acquire
214 the property as required under Section 78B-6-505;
215 (9) records prepared in contemplation of sale, exchange, lease, rental, or other
216 compensated transaction of real or personal property including intellectual property, which, if
217 disclosed prior to completion of the transaction, would reveal the appraisal or estimated value
218 of the subject property, unless:
219 (a) the public interest in access is greater than or equal to the interests in restricting
220 access, including the governmental entity's interest in maximizing the financial benefit of the
221 transaction; or
222 (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
223 the value of the subject property have already been disclosed to persons not employed by or
224 under a duty of confidentiality to the entity;
225 (10) records created or maintained for civil, criminal, or administrative enforcement
226 purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
227 release of the records:
228 (a) reasonably could be expected to interfere with investigations undertaken for
229 enforcement, discipline, licensing, certification, or registration purposes;
230 (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
231 proceedings;
232 (c) would create a danger of depriving a person of a right to a fair trial or impartial
233 hearing;
234 (d) reasonably could be expected to disclose the identity of a source who is not
235 generally known outside of government and, in the case of a record compiled in the course of
236 an investigation, disclose information furnished by a source not generally known outside of
237 government if disclosure would compromise the source; or
238 (e) reasonably could be expected to disclose investigative or audit techniques,
239 procedures, policies, or orders not generally known outside of government if disclosure would
240 interfere with enforcement or audit efforts;
241 (11) records the disclosure of which would jeopardize the life or safety of an
242 individual;
243 (12) records the disclosure of which would jeopardize the security of governmental
244 property, governmental programs, or governmental recordkeeping systems from damage, theft,
245 or other appropriation or use contrary to law or public policy;
246 (13) records that, if disclosed, would jeopardize the security or safety of a correctional
247 facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
248 with the control and supervision of an offender's incarceration, treatment, probation, or parole;
249 (14) records that, if disclosed, would reveal recommendations made to the Board of
250 Pardons and Parole by an employee of or contractor for the Department of Corrections, the
251 Board of Pardons and Parole, or the Department of Human Services that are based on the
252 employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
253 jurisdiction;
254 (15) records and audit workpapers that identify audit, collection, and operational
255 procedures and methods used by the State Tax Commission, if disclosure would interfere with
256 audits or collections;
257 (16) records of a governmental audit agency relating to an ongoing or planned audit
258 until the final audit is released;
259 (17) records that are subject to the attorney client privilege;
260 (18) records prepared for or by an attorney, consultant, surety, indemnitor, insurer,
261 employee, or agent of a governmental entity for, or in anticipation of, litigation or a judicial,
262 quasi-judicial, or administrative proceeding;
263 (19) (a) (i) personal files of a state legislator, including personal correspondence to or
264 from a member of the Legislature; and
265 (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
266 legislative action or policy may not be classified as protected under this section; and
267 (b) (i) an internal communication that is part of the deliberative process in connection
268 with the preparation of legislation between:
269 (A) members of a legislative body;
270 (B) a member of a legislative body and a member of the legislative body's staff; or
271 (C) members of a legislative body's staff; and
272 (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
273 legislative action or policy may not be classified as protected under this section;
274 (20) (a) records in the custody or control of the Office of Legislative Research and
275 General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
276 legislation or contemplated course of action before the legislator has elected to support the
277 legislation or course of action, or made the legislation or course of action public; and
278 (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
279 Office of Legislative Research and General Counsel is a public document unless a legislator
280 asks that the records requesting the legislation be maintained as protected records until such
281 time as the legislator elects to make the legislation or course of action public;
282 (21) research requests from legislators to the Office of Legislative Research and
283 General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared
284 in response to these requests;
285 (22) drafts, unless otherwise classified as public;
286 (23) records concerning a governmental entity's strategy about:
287 (a) collective bargaining; or
288 (b) imminent or pending litigation;
289 (24) records of investigations of loss occurrences and analyses of loss occurrences that
290 may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
291 Uninsured Employers' Fund, or similar divisions in other governmental entities;
292 (25) records, other than personnel evaluations, that contain a personal recommendation
293 concerning an individual if disclosure would constitute a clearly unwarranted invasion of
294 personal privacy, or disclosure is not in the public interest;
295 (26) records that reveal the location of historic, prehistoric, paleontological, or
296 biological resources that if known would jeopardize the security of those resources or of
297 valuable historic, scientific, educational, or cultural information;
298 (27) records of independent state agencies if the disclosure of the records would
299 conflict with the fiduciary obligations of the agency;
300 (28) records of an institution within the state system of higher education defined in
301 Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
302 retention decisions, and promotions, which could be properly discussed in a meeting closed in
303 accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
304 the final decisions about tenure, appointments, retention, promotions, or those students
305 admitted, may not be classified as protected under this section;
306 (29) records of the governor's office, including budget recommendations, legislative
307 proposals, and policy statements, that if disclosed would reveal the governor's contemplated
308 policies or contemplated courses of action before the governor has implemented or rejected
309 those policies or courses of action or made them public;
310 (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
311 revenue estimates, and fiscal notes of proposed legislation before issuance of the final
312 recommendations in these areas;
313 (31) records provided by the United States or by a government entity outside the state
314 that are given to the governmental entity with a requirement that they be managed as protected
315 records if the providing entity certifies that the record would not be subject to public disclosure
316 if retained by it;
317 (32) transcripts, minutes, recordings, or reports of the closed portion of a meeting of a
318 public body except as provided in Section 52-4-206;
319 (33) records that would reveal the contents of settlement negotiations but not including
320 final settlements or empirical data to the extent that they are not otherwise exempt from
321 disclosure;
322 (34) memoranda prepared by staff and used in the decision-making process by an
323 administrative law judge, a member of the Board of Pardons and Parole, or a member of any
324 other body charged by law with performing a quasi-judicial function;
325 (35) records that would reveal negotiations regarding assistance or incentives offered
326 by or requested from a governmental entity for the purpose of encouraging a person to expand
327 or locate a business in Utah, but only if disclosure would result in actual economic harm to the
328 person or place the governmental entity at a competitive disadvantage, but this section may not
329 be used to restrict access to a record evidencing a final contract;
330 (36) materials to which access must be limited for purposes of securing or maintaining
331 the governmental entity's proprietary protection of intellectual property rights including patents,
332 copyrights, and trade secrets;
333 (37) the name of a donor or a prospective donor to a governmental entity, including an
334 institution within the state system of higher education defined in Section 53B-1-102, and other
335 information concerning the donation that could reasonably be expected to reveal the identity of
336 the donor, provided that:
337 (a) the donor requests anonymity in writing;
338 (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
339 classified protected by the governmental entity under this Subsection (37); and
340 (c) except for an institution within the state system of higher education defined in
341 Section 53B-1-102, the governmental unit to which the donation is made is primarily engaged
342 in educational, charitable, or artistic endeavors, and has no regulatory or legislative authority
343 over the donor, a member of the donor's immediate family, or any entity owned or controlled
344 by the donor or the donor's immediate family;
345 (38) accident reports, except as provided in Sections 41-6a-404, 41-12a-202, and
346 73-18-13;
347 (39) a notification of workers' compensation insurance coverage described in Section
348 34A-2-205;
349 (40) (a) the following records of an institution within the state system of higher
350 education defined in Section 53B-1-102, which have been developed, discovered, disclosed to,
351 or received by or on behalf of faculty, staff, employees, or students of the institution:
352 (i) unpublished lecture notes;
353 (ii) unpublished notes, data, and information:
354 (A) relating to research; and
355 (B) of:
356 (I) the institution within the state system of higher education defined in Section
357 53B-1-102; or
358 (II) a sponsor of sponsored research;
359 (iii) unpublished manuscripts;
360 (iv) creative works in process;
361 (v) scholarly correspondence; and
362 (vi) confidential information contained in research proposals;
363 (b) Subsection (40)(a) may not be construed to prohibit disclosure of public
364 information required pursuant to Subsection 53B-16-302(2)(a) or (b); and
365 (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
366 (41) (a) records in the custody or control of the Office of Legislative Auditor General
367 that would reveal the name of a particular legislator who requests a legislative audit prior to the
368 date that audit is completed and made public; and
369 (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
370 Office of the Legislative Auditor General is a public document unless the legislator asks that
371 the records in the custody or control of the Office of Legislative Auditor General that would
372 reveal the name of a particular legislator who requests a legislative audit be maintained as
373 protected records until the audit is completed and made public;
374 (42) records that provide detail as to the location of an explosive, including a map or
375 other document that indicates the location of:
376 (a) a production facility; or
377 (b) a magazine;
378 (43) information:
379 (a) contained in the statewide database of the Division of Aging and Adult Services
380 created by Section 62A-3-311.1; or
381 (b) received or maintained in relation to the Identity Theft Reporting Information
382 System (IRIS) established under Section 67-5-22;
383 (44) information contained in the Management Information System and Licensing
384 Information System described in Title 62A, Chapter 4a, Child and Family Services;
385 (45) information regarding National Guard operations or activities in support of the
386 National Guard's federal mission;
387 (46) records provided by any pawn or secondhand business to a law enforcement
388 agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
389 Secondhand Merchandise Transaction Information Act;
390 (47) information regarding food security, risk, and vulnerability assessments performed
391 by the Department of Agriculture and Food;
392 (48) except to the extent that the record is exempt from this chapter pursuant to Section
393 63G-2-106, records related to an emergency plan or program, a copy of which is provided to or
394 prepared or maintained by the Division of Emergency Management, and the disclosure of
395 which would jeopardize:
396 (a) the safety of the general public; or
397 (b) the security of:
398 (i) governmental property;
399 (ii) governmental programs; or
400 (iii) the property of a private person who provides the Division of Emergency
401 Management information;
402 (49) records of the Department of Agriculture and Food that provides for the
403 identification, tracing, or control of livestock diseases, including any program established under
404 Title 4, Chapter 24, Utah Livestock Brand and Anti-Theft Act, or Title 4, Chapter 31, Control
405 of Animal Disease;
406 (50) as provided in Section 26-39-501:
407 (a) information or records held by the Department of Health related to a complaint
408 regarding a child care program or residential child care which the department is unable to
409 substantiate; and
410 (b) information or records related to a complaint received by the Department of Health
411 from an anonymous complainant regarding a child care program or residential child care;
412 (51) unless otherwise classified as public under Section 63G-2-301 and except as
413 provided under Section 41-1a-116, an individual's home address, home telephone number, or
414 personal mobile phone number, if:
415 (a) the individual is required to provide the information in order to comply with a law,
416 ordinance, rule, or order of a government entity; and
417 (b) the subject of the record has a reasonable expectation that this information will be
418 kept confidential due to:
419 (i) the nature of the law, ordinance, rule, or order; and
420 (ii) the individual complying with the law, ordinance, rule, or order;
421 (52) the portion of the following documents that contains a candidate's residential or
422 mailing address, if the candidate provides to the filing officer another address or phone number
423 where the candidate may be contacted:
424 (a) a declaration of candidacy, a nomination petition, or a certificate of nomination,
425 described in Section 20A-9-201, 20A-9-202, 20A-9-203, 20A-9-404, 20A-9-405, 20A-9-408,
426 20A-9-408.5, 20A-9-502, or 20A-9-601;
427 (b) an affidavit of impecuniosity, described in Section 20A-9-201; or
428 (c) a notice of intent to gather signatures for candidacy, described in Section
429 20A-9-408;
430 (53) the name, home address, work addresses, and telephone numbers of an individual
431 that is engaged in, or that provides goods or services for, medical or scientific research that is:
432 (a) conducted within the state system of higher education, as defined in Section
433 53B-1-102; and
434 (b) conducted using animals;
435 (54) in accordance with Section 78A-12-203, any record of the Judicial Performance
436 Evaluation Commission concerning an individual commissioner's vote on whether or not to
437 recommend that the voters retain a judge including information disclosed under Subsection
438 78A-12-203(5)(e);
439 (55) information collected and a report prepared by the Judicial Performance
440 Evaluation Commission concerning a judge, unless Section 20A-7-702 or Title 78A, Chapter
441 12, Judicial Performance Evaluation Commission Act, requires disclosure of, or makes public,
442 the information or report;
443 (56) records contained in the Management Information System created in Section
444 62A-4a-1003;
445 (57) records provided or received by the Public Lands Policy Coordinating Office in
446 furtherance of any contract or other agreement made in accordance with Section 63J-4-603;
447 (58) information requested by and provided to the 911 Division under Section
448 63H-7a-302;
449 (59) in accordance with Section 73-10-33:
450 (a) a management plan for a water conveyance facility in the possession of the Division
451 of Water Resources or the Board of Water Resources; or
452 (b) an outline of an emergency response plan in possession of the state or a county or
453 municipality;
454 (60) the following records in the custody or control of the Office of Inspector General
455 of Medicaid Services, created in Section 63A-13-201:
456 (a) records that would disclose information relating to allegations of personal
457 misconduct, gross mismanagement, or illegal activity of a person if the information or
458 allegation cannot be corroborated by the Office of Inspector General of Medicaid Services
459 through other documents or evidence, and the records relating to the allegation are not relied
460 upon by the Office of Inspector General of Medicaid Services in preparing a final investigation
461 report or final audit report;
462 (b) records and audit workpapers to the extent they would disclose the identity of a
463 person who, during the course of an investigation or audit, communicated the existence of any
464 Medicaid fraud, waste, or abuse, or a violation or suspected violation of a law, rule, or
465 regulation adopted under the laws of this state, a political subdivision of the state, or any
466 recognized entity of the United States, if the information was disclosed on the condition that
467 the identity of the person be protected;
468 (c) before the time that an investigation or audit is completed and the final
469 investigation or final audit report is released, records or drafts circulated to a person who is not
470 an employee or head of a governmental entity for the person's response or information;
471 (d) records that would disclose an outline or part of any investigation, audit survey
472 plan, or audit program; or
473 (e) requests for an investigation or audit, if disclosure would risk circumvention of an
474 investigation or audit;
475 (61) records that reveal methods used by the Office of Inspector General of Medicaid
476 Services, the fraud unit, or the Department of Health, to discover Medicaid fraud, waste, or
477 abuse;
478 (62) information provided to the Department of Health or the Division of Occupational
479 and Professional Licensing under Subsections 58-67-304(3) and (4) and Subsections
480 58-68-304(3) and (4);
481 (63) a record described in Section 63G-12-210;
482 (64) captured plate data that is obtained through an automatic license plate reader
483 system used by a governmental entity as authorized in Section 41-6a-2003;
484 (65) any record in the custody of the Utah Office for Victims of Crime relating to a
485 victim, including:
486 (a) a victim's application or request for benefits;
487 (b) a victim's receipt or denial of benefits; and
488 (c) any administrative notes or records made or created for the purpose of, or used to,
489 evaluate or communicate a victim's eligibility for or denial of benefits from the Crime Victim
490 Reparations Fund;
491 (66) an audio or video recording created by a body-worn camera, as that term is
492 defined in Section 77-7a-103, that records sound or images inside a hospital or health care
493 facility as those terms are defined in Section 78B-3-403, inside a clinic of a health care
494 provider, as that term is defined in Section 78B-3-403, or inside a human service program as
495 that term is defined in Section 62A-2-101, except for recordings that:
496 (a) depict the commission of an alleged crime;
497 (b) record any encounter between a law enforcement officer and a person that results in
498 death or bodily injury, or includes an instance when an officer fires a weapon;
499 (c) record any encounter that is the subject of a complaint or a legal proceeding against
500 a law enforcement officer or law enforcement agency;
501 (d) contain an officer involved critical incident as defined in Subsection
502 76-2-408(1)(f); or
503 (e) have been requested for reclassification as a public record by a subject or
504 authorized agent of a subject featured in the recording;
505 (67) a record pertaining to the search process for a president of an institution of higher
506 education described in Section 53B-2-102, except for application materials for a publicly
507 announced finalist;
508 (68) an audio recording that is:
509 (a) produced by an audio recording device that is used in conjunction with a device or
510 piece of equipment designed or intended for resuscitating an individual or for treating an
511 individual with a life-threatening condition;
512 (b) produced during an emergency event when an individual employed to provide law
513 enforcement, fire protection, paramedic, emergency medical, or other first responder service:
514 (i) is responding to an individual needing resuscitation or with a life-threatening
515 condition; and
516 (ii) uses a device or piece of equipment designed or intended for resuscitating an
517 individual or for treating an individual with a life-threatening condition; and
518 (c) intended and used for purposes of training emergency responders how to improve
519 their response to an emergency situation;
520 (69) records submitted by or prepared in relation to an applicant seeking a
521 recommendation by the Research and General Counsel Subcommittee, the Budget
522 Subcommittee, or the Audit Subcommittee, established under Section 36-12-8, for an
523 employment position with the Legislature;
524 (70) work papers as defined in Section 31A-2-204;
525 (71) a record made available to Adult Protective Services or a law enforcement agency
526 under Section 61-1-206;
527 (72) a record submitted to the Insurance Department in accordance with Section
528 31A-37-201 or 31A-22-653;
529 (73) a record described in Section 31A-37-503.
530 (74) any record created by the Division of Occupational and Professional Licensing as
531 a result of Subsection 58-37f-304(5) or 58-37f-702(2)(a)(ii);
532 (75) a record described in Section 72-16-306 that relates to the reporting of an injury
533 involving an amusement ride;
534 (76) except as provided in Subsection 63G-2-305.5(1), the signature of an individual
535 on a political petition, or on a request to withdraw a signature from a political petition,
536 including a petition or request described in the following titles:
537 (a) Title 10, Utah Municipal Code;
538 (b) Title 17, Counties;
539 (c) Title 17B, Limited Purpose Local Government Entities - Local Districts;
540 (d) Title 17D, Limited Purpose Local Government Entities - Other Entities; and
541 (e) Title 20A, Election Code;
542 (77) except as provided in Subsection 63G-2-305.5(2), the signature of an individual in
543 a voter registration record;
544 (78) except as provided in Subsection 63G-2-305.5(3), any signature, other than a
545 signature described in Subsection (76) or (77), in the custody of the lieutenant governor or a
546 local political subdivision collected or held under, or in relation to, Title 20A, Election Code;
547 (79) a Form I-918 Supplement B certification as described in Title 77, Chapter 38, Part
548 5, Victims Guidelines for Prosecutors Act;
549 (80) a record submitted to the Insurance Department under Subsection
550 31A-47-103(1)(b); [
551 (81) personal information, as defined in Section 63G-26-102, to the extent disclosure is
552 prohibited under Section 63G-26-103[
553 (82) any part of an application described in Section 63N-16-201 that the Governor's
554 Office of Economic Development determines is nonpublic, confidential information that if
555 disclosed would result in actual economic harm to the applicant, but this Subsection (82) may
556 not be used to restrict access to a record evidencing a final contract or approval decision.
557 Section 4. Section 63N-16-101 is enacted to read:
558
559
560 63N-16-101. Title.
561 This chapter is known as the "Utah Office of Regulatory Relief."
562 Section 5. Section 63N-16-102 is enacted to read:
563 63N-16-102. Definitions.
564 As used in this chapter:
565 (1) "Advisory committee" means the General Regulatory Sandbox Program Advisory
566 Committee created in Section 63N-16-104.
567 (2) "Applicable agency" means a department or agency of the state that by law
568 regulates a business activity and persons engaged in such business activity, including the
569 issuance of licenses or other types of authorization, which the office determines would
570 otherwise regulate a sandbox participant.
571 (3) "Applicant" means a person that applies to participate in the regulatory sandbox.
572 (4) "Consumer" means a person that purchases or otherwise enters into a transaction or
573 agreement to receive an offering pursuant to a demonstration by a sandbox participant.
574 (5) "Demonstrate" or "demonstration" means to temporarily provide an offering in
575 accordance with the provisions of the regulatory sandbox program described in this chapter.
576 (6) "Director" means the director of the Utah Office of Regulatory Relief created in
577 Section 63N-16-103.
578 (7) "Executive director" means the executive director of the Governor's Office of
579 Economic Development.
580 (8) "Innovation" means the use or incorporation of a new idea, a new or emerging
581 technology, or a new use of existing technology to address a problem, provide a benefit, or
582 otherwise offer a product, production method, or service.
583 (9) "Innovative offering" means an offering that includes an innovation.
584 (10) (a) "Offering" means a product, production method, or service.
585 (b) "Offering" does not include a product, production method, or service that is
586 governed by:
587 (i) Title 31A, Insurance Code, as determined by the insurance commissioner; or
588 (ii) Title 61, Chapter 1, Utah Uniform Securities Act.
589 (11) "Product" means a commercially distributed good that is:
590 (a) tangible personal property;
591 (b) the result of a production process; and
592 (c) passed through the distribution channel before consumption.
593 (12) "Production" means the method or process of creating or obtaining a good, which
594 may include assembling, breeding, capturing, collecting, extracting, fabricating, farming,
595 fishing, gathering, growing, harvesting, hunting, manufacturing, mining, processing, raising, or
596 trapping a good.
597 (13) "Regulatory relief office" means the Utah Office of Regulatory Relief created in
598 Section 63N-16-103.
599 (14) "Regulatory sandbox" means the General Regulatory Sandbox Program created in
600 Section 63N-16-201, which allows a person to temporarily demonstrate an offering under a
601 waiver or suspension of one or more state laws or regulations.
602 (15) "Sandbox participant" means a person whose application to participate in the
603 regulatory sandbox is approved in accordance with the provisions of this chapter.
604 (16) "Service" means any commercial activity, duty, or labor performed for another
605 person.
606 Section 6. Section 63N-16-103 is enacted to read:
607 63N-16-103. Creation of regulatory relief office and appointment of director --
608 Responsibilities of regulatory relief office.
609 (1) There is created within the Governor's Office of Economic Development the Utah
610 Office of Regulatory Relief.
611 (2) (a) The regulatory relief office shall be administered by a director.
612 (b) The director shall report to the executive director and may appoint staff subject to
613 the approval of the executive director.
614 (3) The regulatory relief office shall:
615 (a) administer the provisions of this chapter;
616 (b) administer the regulatory sandbox program; and
617 (c) act as a liaison between private businesses and applicable agencies to identify state
618 laws or regulations that could potentially be waived or suspended under the regulatory sandbox
619 program.
620 (4) The regulatory relief office may:
621 (a) review state laws and regulations that may unnecessarily inhibit the creation and
622 success of new companies or industries and provide recommendations to the governor and the
623 Legislature on modifying such state laws and regulations;
624 (b) create a framework for analyzing the risk level to the health, safety, and financial
625 well-being of consumers related to permanently removing or temporarily waiving laws and
626 regulations inhibiting the creation or success of new and existing companies or industries;
627 (c) propose potential reciprocity agreements between states that use or are proposing to
628 use similar regulatory sandbox programs as described in this chapter, Section 13-55-103, or
629 Section 31A-47-103; and
630 (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
631 the provisions of this chapter, make rules regarding:
632 (i) administering the regulatory sandbox, including making rules regarding the
633 application process and the reporting requirements of sandbox participants; and
634 (ii) cooperating and consulting with other agencies in the state that administer sandbox
635 programs.
636 Section 7. Section 63N-16-104 is enacted to read:
637 63N-16-104. Creation and duties of advisory committee.
638 (1) There is created the General Regulatory Sandbox Program Advisory Committee.
639 (2) The advisory committee shall have 11 members as follows:
640 (a) six members appointed by the director who represent businesses interests and are
641 selected from a variety of industry clusters;
642 (b) three members appointed by the director who represent state agencies that regulate
643 businesses;
644 (c) one member of the Senate, appointed by the president of the Senate; and
645 (d) one member of the House of Representatives, appointed by the speaker of the
646 House of Representatives.
647 (3) (a) Subject to Subsection (3)(b), members of the advisory committee who are not
648 legislators shall be appointed to a four-year term.
649 (b) Notwithstanding the requirements of Subsection (3)(a), the director may adjust the
650 length of terms of appointments and reappointments to the advisory committee so that
651 approximately half of the advisory committee is appointed every two years.
652 (4) The director shall select a chair of the advisory committee on an annual basis.
653 (5) A majority of the advisory committee constitutes a quorum for the purpose of
654 conducting advisory committee business, and the action of the majority of a quorum constitutes
655 the action of the advisory committee.
656 (6) The advisory committee shall advise and make recommendations to the regulatory
657 relief office as described in this chapter.
658 (7) The regulatory relief office shall provide administrative staff support for the
659 advisory committee.
660 (8) (a) A member may not receive compensation or benefits for the member's service,
661 but a member appointed under Subsection (2)(a) may receive per diem and travel expenses in
662 accordance with:
663 (i) Sections 63A-3-106 and 63A-3-107; and
664 (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
665 63A-3-107.
666 (b) Compensation and expenses of a member who is a legislator are governed by
667 Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
668 (9) Meetings of the advisory committee are not subject to Title 52, Chapter 4, Open
669 and Public Meetings Act.
670 Section 8. Section 63N-16-105 is enacted to read:
671 63N-16-105. Annual Report.
672 (1) The executive director shall include in the annual report described in Section
673 63N-1-301 a written report from the director on the activities of the regulatory relief office,
674 which report shall include:
675 (a) information regarding each participant in the regulatory sandbox created in Section
676 63N-16-201, including which industries each participant represents and the anticipated or
677 actual cost savings that each participant experienced;
678 (b) recommendations regarding any laws or regulations that should be permanently
679 modified;
680 (c) information regarding outcomes for consumers; and
681 (d) recommendations for changes to the regulatory sandbox program or other duties of
682 the regulatory relief office.
683 (2) By October 1 of each year, the executive director shall provide the written report
684 from the director on the activities of the regulatory relief office described in Subsection (1) to
685 the Business and Labor Interim Committee.
686 Section 9. Section 63N-16-201 is enacted to read:
687
688 63N-16-201. General Regulatory Sandbox Program -- Application requirements.
689 (1) There is created in the regulatory relief office the General Regulatory Sandbox
690 Program.
691 (2) In administering the regulatory sandbox, the regulatory relief office:
692 (a) shall consult with each applicable agency;
693 (b) shall establish a program to enable a person to obtain legal protections and limited
694 access to the market in the state to demonstrate an innovative offering without obtaining a
695 license or other authorization that might otherwise be required;
696 (c) may enter into agreements with or adopt the best practices of corresponding federal
697 regulatory agencies or other states that are administering similar programs; and
698 (d) may consult with businesses in the state about existing or potential proposals for
699 the regulatory sandbox.
700 (3) (a) An applicant for the regulatory sandbox may contact the regulatory relief office
701 to request a consultation regarding the regulatory sandbox before submitting an application.
702 (b) The regulatory relief office shall provide relevant information regarding the
703 regulatory sandbox program, including informing an applicant whether it would be better to
704 apply for the programs described in Section 13-55-103 or Section 31A-47-103.
705 (c) The regulatory relief office may provide assistance to an applicant in preparing an
706 application for submission.
707 (4) An applicant for the regulatory sandbox shall provide to the regulatory relief office
708 an application in a form prescribed by the regulatory relief office that:
709 (a) confirms the applicant is subject to the jurisdiction of the state;
710 (b) confirms the applicant has established a physical or virtual location in the state,
711 from which the demonstration of an innovative offering will be developed and performed and
712 where all required records, documents, and data will be maintained;
713 (c) contains relevant personal and contact information for the applicant, including legal
714 names, addresses, telephone numbers, email addresses, website addresses, and other
715 information required by the regulatory relief office;
716 (d) discloses criminal convictions of the applicant or other participating personnel, if
717 any;
718 (e) contains a description of the innovative offering to be demonstrated, including
719 statements regarding:
720 (i) how the offering is subject to licensing, legal prohibition, or other authorization
721 requirements outside of the regulatory sandbox;
722 (ii) each law or regulation that the applicant seeks to have waived or suspended while
723 participating in the regulatory sandbox program;
724 (iii) how the offering would benefit consumers;
725 (iv) how the offering is different from other offerings available in the state;
726 (v) what risks might exist for consumers who use or purchase the offering;
727 (vi) how participating in the regulatory sandbox would enable a successful
728 demonstration of the offering;
729 (vii) a description of the proposed demonstration plan, including estimated time
730 periods for beginning and ending the demonstration;
731 (viii) recognition that the applicant will be subject to all laws and regulations
732 pertaining to the applicant's offering after conclusion of the demonstration; and
733 (ix) how the applicant will end the demonstration and protect consumers if the
734 demonstration fails;
735 (f) lists each government agency, if any, that the applicant knows regulates the
736 applicant's business; and
737 (g) provides any other required information as determined by the regulatory relief
738 office.
739 (5) The regulatory relief office may collect an application fee from an applicant that is
740 set in accordance with Section 63J-1-504.
741 (6) An applicant shall file a separate application for each innovative offering that the
742 applicant wishes to demonstrate.
743 (7) After an application is filed, the regulatory relief office:
744 (a) shall classify the application and any related information provided by the applicant
745 as a protected record in accordance with Subsection 63G-2-305(82);
746 (b) consult with each applicable government agency that regulates the applicant's
747 business regarding whether more information is needed from the applicant; and
748 (c) seek additional information from the applicant that the regulatory relief office
749 determines is necessary.
750 (8) No later than five business days after the day on which a complete application is
751 received by the regulatory relief office, the regulatory relief office shall:
752 (a) review the application and refer the application to each applicable government
753 agency that regulates the applicant's business; and
754 (b) provide to the applicant:
755 (i) an acknowledgment of receipt of the application; and
756 (ii) the identity and contact information of each regulatory agency to which the
757 application has been referred for review.
758 (9) (a) Subject to Subsections (9)(c) and (9)(g), no later than 30 days after the day on
759 which an applicable agency receives a complete application for review, the applicable agency
760 shall provide a written report to the director of the applicable agency's findings.
761 (b) The report shall:
762 (i) describe any identifiable, likely, and significant harm to the health, safety, or
763 financial well-being of consumers that the relevant law or regulation protects against; and
764 (ii) make a recommendation to the regulatory relief office that the applicant either be
765 admitted or denied entrance into the regulatory sandbox.
766 (c) (i) The applicable agency may request an additional five business days to deliver
767 the written report by providing notice to the director, which request shall automatically be
768 granted.
769 (ii) The applicable agency may only request one extension per application.
770 (d) If the applicable agency recommends an applicant under this section be denied
771 entrance into the regulatory sandbox, the written report shall include a description of the
772 reasons for the recommendation, including why a temporary waiver or suspension of the
773 relevant laws or regulations would potentially significantly harm the health, safety, or financial
774 well-being of consumers or the public and the likelihood of such harm occurring.
775 (e) If the agency determines that the consumer's or public's health, safety, or financial
776 well-being can be protected through less restrictive means than the existing relevant laws or
777 regulations, then the applicable agency shall provide a recommendation of how that can be
778 achieved.
779 (f) If an applicable agency fails to deliver a written report as described in this
780 Subsection (9), the director shall assume that the applicable agency does not object to the
781 temporary waiver or suspension of the relevant laws or regulations for an applicant seeking to
782 participate in the regulatory sandbox.
783 (g) Notwithstanding any other provision of this section, an applicable agency may by
784 written notice to the regulatory relief office:
785 (i) within the 30 days after the day on which the applicable agency receives a complete
786 application for review, or within 35 days if an extension has been requested by the applicable
787 agency, reject an application if the applicable agency determines, in the applicable agency's
788 sole discretion, that the applicant's offering fails to comply with standards or specifications:
789 (A) required by federal law or regulation; or
790 (B) previously approved for use by a federal agency; or
791 (ii) reject an application preliminarily approved by the regulatory relief office, if the
792 applicable agency:
793 (A) recommended rejection of the application in accordance with Subsection (9)(d) in
794 the agency's written report; and
795 (B) provides in the written notice under this Subsection (9)(g), a description of the
796 applicable agency's reasons why approval of the application would create a substantial risk of
797 harm to the health or safety of the public, or create unreasonable expenses for taxpayers in the
798 state.
799 (h) If an applicable agency rejects an application under Subsection (9)(g), the
800 regulatory relief office may not approve the application.
801 (10) (a) Upon receiving a written report described in Subsection (9), the director shall
802 provide the application and the written report to the advisory committee.
803 (b) The director may call the advisory committee to meet as needed, but not less than
804 once per quarter if applications are available for review.
805 (c) After receiving and reviewing the application and each written report, the advisory
806 committee shall provide to the director the advisory committee's recommendation as to whether
807 or not the applicant should be admitted as a sandbox participant under this chapter.
808 (d) As part of the advisory committee's review of each written report, the advisory
809 committee shall use the criteria required for an applicable agency as described in Subsection
810 (9).
811 (11) (a) In reviewing an application and each applicable agency's written report, the
812 regulatory relief office shall consult with each applicable agency and the advisory committee
813 before admitting an applicant into the regulatory sandbox.
814 (b) The consultation with each applicable agency and the consultation with the
815 advisory committee may include seeking information about whether:
816 (i) the applicable agency has previously issued a license or other authorization to the
817 applicant; and
818 (ii) the applicable agency has previously investigated, sanctioned, or pursued legal
819 action against the applicant.
820 (12) In reviewing an application under this section, the regulatory relief office and each
821 applicable agency shall consider whether a competitor to the applicant is or has been a sandbox
822 participant and, if so, weigh that as a factor in favor of allowing the applicant to also become a
823 sandbox participant.
824 (13) In reviewing an application under this section, the regulatory relief office shall
825 consider whether:
826 (a) the applicant's plan will adequately protect consumers from potential harm
827 identified by an applicable agency in the applicable agency's written report;
828 (b) the risk of harm to consumers is outweighed by the potential benefits to consumers
829 from the applicant's participation in the regulatory sandbox; and
830 (c) certain state laws or regulations that regulate an offering should not be waived or
831 suspended even if the applicant is approved as a sandbox participant, including applicable
832 antifraud or disclosure provisions.
833 (14) (a) An applicant becomes a sandbox participant if the regulatory relief office
834 approves the application for the regulatory sandbox and enters into a written agreement with
835 the applicant describing the specific laws and regulations that are waived or suspended as part
836 of participation in the regulatory sandbox.
837 (b) Notwithstanding any other provision of this chapter, the regulatory relief office may
838 not enter into a written agreement with an applicant that waives or suspends a tax, fee, or
839 charge that is administered by the State Tax Commission or that is described in Title 59,
840 Revenue and Taxation.
841 (15) (a) The director may deny at the director's sole discretion any application
842 submitted under this section for any reason, including if the director determines that the
843 preponderance of evidence demonstrates that suspending or waiving enforcement of a law or
844 regulation would cause a significant risk of harm to consumers or residents of the state.
845 (b) If the director denies an application submitted under this section, the regulatory
846 relief office shall provide to the applicant a written description of the reasons for not allowing
847 the applicant to be a sandbox participant.
848 (c) The denial of an application submitted under this section is not subject to:
849 (i) agency or judicial review; or
850 (ii) the provisions of Title 63G, Chapter 4, Administrative Procedures Act.
851 (16) The director shall deny an application for participation in the regulatory sandbox
852 described by this section if:
853 (a) the director determines that the applicant should instead apply for the Regulatory
854 Sandbox Program created in Section 13-55-103 for a financial product or service or the
855 Insurance Regulatory Sandbox Program created in Section 31A-47-103 for an insurance
856 product or service; or
857 (b) the applicant or any person who seeks to participate with the applicant in
858 demonstrating an offering has been convicted, entered a plea of nolo contendere, or entered a
859 plea of guilty or nolo contendere held in abeyance, for any crime involving significant theft,
860 fraud, or dishonesty if the crime bears a significant relationship to the applicant's or other
861 participant's ability to safely and competently participate in the regulatory sandbox program.
862 (17) When an applicant is approved for participation in the regulatory sandbox, the
863 director may provide notice of the approval to competitors of the applicant and to the public.
864 Section 10. Section 63N-16-202 is enacted to read:
865 63N-16-202. Scope of the regulatory sandbox.
866 (1) If the regulatory relief office approves an application under this part, the sandbox
867 participant has 12 months after the day on which the application was approved to demonstrate
868 the offering described in the sandbox participant's application.
869 (2) An offering that is demonstrated within the regulatory sandbox is subject to the
870 following:
871 (a) each consumer shall be a resident of the state; and
872 (b) no law or regulation may be waived or suspended if waiving or suspending the law
873 or regulation would prevent a consumer from seeking restitution in the event that the consumer
874 is harmed.
875 (3) This part does not restrict a sandbox participant who holds a license or other
876 authorization in another jurisdiction from acting in accordance with that license or other
877 authorization.
878 (4) A sandbox participant is deemed to possess an appropriate license or other
879 authorization under the laws of the state for the purposes of any provision of federal law
880 requiring licensure or other authorization by the state.
881 (5) Subject to Subsection (6):
882 (a) during the demonstration period, a sandbox participant is not subject to the
883 enforcement of state laws or regulations identified in the written agreement between the
884 regulatory relief office and the sandbox participant described in Subsection 63N-16-201(14);
885 (b) a prosecutor may not file or pursue charges pertaining to a law or regulation
886 identified in the written agreement between the regulatory relief office and the sandbox
887 participant described in Subsection 63N-16-201(14) that occurs during the demonstration
888 period; and
889 (c) a state agency may not file or pursue any punitive action against a sandbox
890 participant, including a fine or license suspension or revocation, for the violation of a law or
891 regulation that:
892 (i) is identified as being waived or suspended in the written agreement between the
893 regulatory relief office and the sandbox participant described in Subsection 63N-16-201(14);
894 and
895 (ii) occurs during the demonstration period.
896 (6) Notwithstanding any other provision of this part, a sandbox participant does not
897 have immunity related to any criminal offense committed during the sandbox participant's
898 participation in the regulatory sandbox.
899 (7) By written notice, the regulatory relief office may end a sandbox participant's
900 participation in the regulatory sandbox at any time and for any reason, including if the director
901 determines that a sandbox participant is not operating in good faith to bring an innovative
902 offering to market.
903 (8) The regulatory relief office and the regulatory relief office's employees are not
904 liable for any business losses or the recouping of application expenses or other expenses related
905 to the regulatory sandbox, including for:
906 (a) denying an applicant's application to participate in the regulatory sandbox for any
907 reason; or
908 (b) ending a sandbox participant's participation in the regulatory sandbox at any time
909 and for any reason.
910 Section 11. Section 63N-16-203 is enacted to read:
911 63N-16-203. Consumer protection for regulatory sandbox.
912 (1) Before demonstrating an offering to a consumer, a sandbox participant shall
913 disclose the following to the consumer:
914 (a) the name and contact information of the sandbox participant;
915 (b) that the offering is authorized pursuant to the regulatory sandbox and, if applicable,
916 that the sandbox participant does not have a license or other authorization to provide an
917 offering under state laws that regulate offerings outside of the regulatory sandbox;
918 (c) that the offering is undergoing testing and may not function as intended and may
919 expose the consumer to certain risks as identified by the applicable agency's written report;
920 (d) that the provider of the offering is not immune from civil liability for any losses or
921 damages caused by the offering;
922 (e) that the provider of the offering is not immune from criminal prosecution for
923 violations of state law or regulations that are not suspended or waived as allowed by the
924 regulatory sandbox;
925 (f) that the offering is a temporary demonstration that may be discontinued at the end
926 of the demonstration period;
927 (g) the expected end date of the demonstration period; and
928 (h) that a consumer may contact the regulatory relief office and file a complaint
929 regarding the offering being demonstrated and provide the regulatory relief office's telephone
930 number and website address where a complaint may be filed.
931 (2) The disclosures required by Subsection (1) shall be provided to a consumer in a
932 clear and conspicuous form and, for an Internet or application-based offering, a consumer shall
933 acknowledge receipt of the disclosure before any transaction may be completed.
934 (3) The regulatory relief office may require that a sandbox participant make additional
935 disclosures to a consumer.
936 Section 12. Section 63N-16-204 is enacted to read:
937 63N-16-204. Requirements for exiting regulatory sandbox.
938 (1) At least 30 days before the end of the 12-month regulatory sandbox demonstration
939 period, a sandbox participant shall:
940 (a) notify the regulatory relief office that the sandbox participant will exit the
941 regulatory sandbox and discontinue the sandbox participant's demonstration after the day on
942 which the 12-month demonstration period ends; or
943 (b) seek an extension in accordance with Section 63N-16-205.
944 (2) Subject to Subsection (3), if the regulatory relief office does not receive notification
945 as required by Subsection (1), the regulatory sandbox demonstration period ends at the end of
946 the 12-month testing period.
947 (3) If a demonstration includes an offering that requires ongoing duties, the sandbox
948 participant may continue to do so but will be subject to enforcement of the laws or regulations
949 that were waived or suspended as part of the regulatory sandbox.
950 Section 13. Section 63N-16-205 is enacted to read:
951 63N-16-205. Extensions.
952 (1) Not later than 30 days before the end of the 12-month regulatory sandbox
953 demonstration period, a sandbox participant may request an extension of the regulatory
954 sandbox demonstration period.
955 (2) The regulatory relief office shall grant or deny a request for an extension in
956 accordance with Subsection (1) by the end of the 12-month regulatory sandbox testing period.
957 (3) The regulatory relief office may grant an extension in accordance with this section
958 for not more than 12 months after the end of the regulatory sandbox demonstration period.
959 Section 14. Section 63N-16-206 is enacted to read:
960 63N-16-206. Record keeping and reporting requirements.
961 (1) A sandbox participant shall retain records, documents, and data produced in the
962 ordinary course of business regarding an offering demonstrated in the regulatory sandbox.
963 (2) If a sandbox participant ceases to provide an offering before the end of a
964 demonstration period, the sandbox participant shall notify the regulatory relief office and each
965 applicable agency and report on actions taken by the sandbox participant to ensure consumers
966 have not been harmed as a result.
967 (3) The regulatory relief office shall establish quarterly reporting requirements for a
968 sandbox participant, including information about any consumer complaints.
969 (4) The regulatory relief office may request records, documents, and data from a
970 sandbox participant and, upon the regulatory relief office's request, the sandbox participant
971 shall make such records, documents, and data available for inspection by the regulatory relief
972 office.
973 (5) (a) The sandbox participant shall notify the regulatory relief office and each
974 applicable agency of any incidents that result in harm to the health, safety, or financial
975 well-being of a consumer.
976 (b) If a sandbox participant fails to notify the regulatory relief office and each
977 applicable agency of any incidents as described in Subsection (5)(a), or the regulatory relief
978 office or an applicable agency has evidence that significant harm to a consumer has occurred,
979 the regulatory relief office may immediately remove the sandbox participant from the
980 regulatory sandbox.
981 (6) (a) No later than 30 days after the day on which a sandbox participant exits the
982 regulatory sandbox, the sandbox participant shall submit a written report to the regulatory relief
983 office and each applicable agency describing an overview of the sandbox participant's
984 demonstration, including any:
985 (i) incidents of harm to consumers;
986 (ii) legal action filed against the participant as a result of the participant's
987 demonstration; and
988 (iii) complaints filed with an applicable agency as a result of the participant's
989 demonstration.
990 (b) No later than 30 days after the day on which an applicable agency receives the
991 quarterly reporting described in Subsection (3) or a written report from a sandbox participant as
992 described in Subsection (5)(a), the applicable agency shall provide a written report to the
993 regulatory relief office on the demonstration that describes any statutory or regulatory reform
994 the applicable agency recommends as a result of the demonstration.
995 (7) The regulatory relief office may remove a sandbox participant from the regulatory
996 sandbox at any time if the regulatory relief office determines that a sandbox participant has
997 engaged in, is engaging in, or is about to engage in any practice or transaction that is in
998 violation of this chapter or that constitutes a violation of a law or regulation for which
999 suspension or waiver has not been granted.
1000 Section 15. Section 63N-16-301 is enacted to read:
1001
1002 63N-16-301. Regulatory relief web page.
1003 (1) The regulatory relief office shall create and maintain on GOED's website a web
1004 page that invites residents and businesses in the state to make suggestions regarding laws and
1005 regulations that could be modified or eliminated to reduce the regulatory burden of residents
1006 and businesses in the state.
1007 (2) On at least a quarterly basis, the regulatory relief office shall compile the results of
1008 suggestions from the web page and provide a written report to the governor, the Business and
1009 Labor Interim Committee, and the Economic Development and Workforce Services Interim
1010 Committee that describes the most common suggestions.
1011 (3) In creating the report described in Subsection (2), the regulatory relief office and
1012 the advisory committee:
1013 (a) shall ensure that private information of residents and businesses that make
1014 suggestions on the web page is not made public; and
1015 (b) may evaluate the suggestions and provide analysis and suggestions regarding which
1016 state laws and regulations could be modified or eliminated to reduce the regulatory burden of
1017 residents and businesses in the state while still protecting consumers.