1     
UTAH OFFICE OF REGULATORY RELIEF AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: A. Cory Maloy

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the Utah Office of Regulatory Relief.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the Utah Office of Regulatory Relief to:
13               •     review laws and regulations each year affecting different industries to determine
14     if there are laws or regulations that are unnecessarily burdensome to those
15     industries; and
16               •     submit a report to the Legislature; and
17          ▸     makes technical and conforming changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          63N-16-103, as last amended by Laws of Utah 2022, Chapter 332
25          63N-16-104, as last amended by Laws of Utah 2022, Chapter 332
26          63N-16-105, as enacted by Laws of Utah 2021, Chapter 373
27     ENACTS:
28          63N-16-302, Utah Code Annotated 1953
29     REPEALS:
30          63N-16-101, as enacted by Laws of Utah 2021, Chapter 373
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 63N-16-103 is amended to read:
34          63N-16-103. Creation of the regulatory relief office and appointment of director
35     -- Responsibilities of the regulatory relief office.
36          (1) There is created within the Governor's Office of Economic Opportunity the Utah
37     Office of Regulatory Relief.
38          (2) (a) The regulatory relief office shall be administered by a director.
39          (b) The director shall report to the executive director and may appoint staff subject to
40     the approval of the executive director.
41          (3) The regulatory relief office shall:
42          (a) administer the provisions of this chapter;
43          (b) administer the regulatory sandbox program; and
44          (c) act as a liaison between private businesses and applicable agencies to identify state
45     laws or regulations that could potentially be waived or suspended under the regulatory sandbox
46     program.
47          (4) The regulatory relief office may:
48          [(a) review state laws and regulations that may unnecessarily inhibit the creation and
49     success of new companies or industries and provide recommendations to the governor and the
50     Legislature on modifying such state laws and regulations;]
51          [(b) create a framework for analyzing the risk level to the health, safety, and financial
52     well-being of consumers related to permanently removing or temporarily waiving laws and
53     regulations inhibiting the creation or success of new and existing companies or industries;]
54          [(c)] (a) propose potential reciprocity agreements between states that use or are
55     proposing to use similar programs to the regulatory sandbox [programs as described in this
56     chapter]; and
57          [(d)] (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
58     Act, and the provisions of this chapter, make rules regarding:
59          (i) administering the regulatory sandbox, including making rules regarding the
60     application process and the reporting requirements of sandbox participants; and
61          (ii) cooperating and consulting with other agencies in the state that administer sandbox
62     programs.
63          Section 2. Section 63N-16-104 is amended to read:
64          63N-16-104. Creation and duties of advisory committee.
65          (1) There is created the General Regulatory Sandbox Program Advisory Committee.
66          (2) The advisory committee shall have 11 members as follows:
67          (a) six members appointed by the director who represent businesses interests and are
68     selected from a variety of industry clusters;
69          (b) three members appointed by the director who represent state agencies that regulate
70     businesses;
71          (c) one member of the Senate, appointed by the president of the Senate; and
72          (d) one member of the House of Representatives, appointed by the speaker of the
73     House of Representatives.
74          (3) (a) Subject to Subsection (3)(b), members of the advisory committee who are not
75     legislators shall be appointed to a four-year term.
76          (b) Notwithstanding the requirements of Subsection (3)(a), the director may adjust the
77     length of terms of appointments and reappointments to the advisory committee so that
78     approximately half of the advisory committee is appointed every two years.
79          (4) The director shall select a chair of the advisory committee on an annual basis.
80          (5) A majority of the advisory committee constitutes a quorum for the purpose of
81     conducting advisory committee business, and the action of the majority of a quorum constitutes
82     the action of the advisory committee.
83          (6) The advisory committee shall:
84          (a) advise and make recommendations to the regulatory relief office as described in this
85     chapter; and
86          (b) designate the laws and regulations of an industry for potential study by the
87     regulatory relief office as described in Section 63N-16-105.
88          (7) The regulatory relief office shall provide administrative staff support for the
89     advisory committee.
90          (8) (a) A member may not receive compensation or benefits for the member's service,
91     but a member appointed under Subsection (2)(a) may receive per diem and travel expenses in
92     accordance with:
93          (i) Sections 63A-3-106 and 63A-3-107; and
94          (ii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
95     63A-3-107.
96          (b) Compensation and expenses of a member who is a legislator are governed by
97     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
98          Section 3. Section 63N-16-105 is amended to read:
99          63N-16-105. Annual report.
100          (1) [The executive director shall include in the annual report described in Section
101     63N-1a-306 a written report from the director on the activities of the regulatory relief office,
102     which report shall include:] On or before October 1 of each year, the regulatory relief office
103     shall prepare and submit an annual written report to the governor, the Business and Labor
104     Interim Committee, and the Economic Development and Workforce Services Interim
105     Committee for the preceding fiscal year.
106          (2) The annual report described in Subsection (1) shall include:
107          (a) information regarding each participant in the regulatory sandbox created in Section
108     63N-16-201, including which industries each participant represents and the anticipated or
109     actual cost savings that each participant experienced;
110          (b) recommendations regarding any laws or regulations that should be permanently
111     modified;
112          (c) information regarding outcomes for consumers; [and]
113          (d) recommendations for changes to the regulatory sandbox program or other duties of
114     the regulatory relief office[.]; and
115          (e) the information described in Subsection 63N-16-302(5).
116          [(2) By October 1 of each year, the executive director shall provide the written report
117     from the director on the activities of the regulatory relief office described in Subsection (1) to
118     the Business and Labor Interim Committee.]
119          Section 4. Section 63N-16-302 is enacted to read:
120     
Part 3. Regulatory Relief

121          63N-16-302. Proactive regulatory relief efforts.
122          (1) As used in this section:
123          (a) "Regulatory framework" means a framework for determining the risk level to the
124     public if a law or regulation that inhibits the creation or success of new and existing companies
125     or industries were to be permanently removed or temporarily waived.
126          (b) "Risk level" means a level of risk categorized from low, medium, and high.
127          (2) The regulatory relief office may:
128          (a) review, at any time, any existing state laws or regulations that may unnecessarily
129     inhibit the creation or success of companies or industries; and
130          (b) provide recommendations to the governor and the Legislature on modifying those
131     state laws and regulations described in Subsection (2)(a).
132          (3) The regulatory relief office shall:
133          (a) create a regulatory framework; and
134          (b) annually study the laws and regulations of at least two industries selected from:
135          (i) an industry targeted for economic development by the Unified Economic
136     Opportunity Commission as described in Section 63N-1a-202; or
137          (ii) an industry designated by the General Regulatory Sandbox Program Advisory
138     Committee for study by the regulatory relief office.
139          (4) In undertaking the review described in Subsection (3), the regulatory relief office
140     shall:
141          (a) identify any law or regulation that the regulatory relief office determines inhibits the
142     creation or success of new and existing companies or industries;
143          (b) apply the regulatory framework to the identified law or regulation; and
144          (c) consider:
145          (i) the history of the identified regulation or law, including the reasons why the
146     regulation or law was originally enacted;
147          (ii) whether the identified regulation or law:
148          (A) creates an unnecessary barrier to industry for businesses; or
149          (B) imposes an unnecessary cost to businesses or consumers;
150          (iii) whether the penalty for violation of the regulation or law, if any, is proportional to
151     the potential harm; and
152          (iv) if there are potentially less burdensome alternatives to the existing regulation or
153     law and apply the regulatory framework to that alternative.
154          (5) The regulatory relief office shall submit as part of the report described in Section
155     63N-16-105:
156          (a) a detailed overview of the regulatory relief office's study of the laws and regulations
157     as described in this section, including the reasons why the laws and regulations of a particular
158     industry were selected for study and the strategy the office implemented to study the laws and
159     regulations of that industry; and
160          (b) recommended changes to a law or regulation identified by the regulatory relief
161     office in Subsection (4) that the regulatory relief office determines:
162          (i) is inhibiting the success of businesses, companies, or industries; and
163          (ii) would not present a high risk level to the public if the law or regulation were
164     permanently removed or temporarily waived.
165          Section 5. Repealer.
166          This bill repeals:
167          Section 63N-16-101, Title.
168          Section 6. Effective date.
169          This bill takes effect on May 1, 2024.