Regulatory Sandbox Program -- Application requirements.
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(1) There is created in the department the Regulatory Sandbox Program.
(2) In administering the regulatory sandbox, the department:
(a) shall consult with each applicable agency;
(b) shall establish a program to enable a person to obtain limited access to the market in the state to test an innovative product or service without obtaining a license or other authorization that might otherwise be required; and
(c) may enter into agreements with or follow the best practices of the Consumer Financial Protection Bureau or other states that are administering similar programs.
(3) An applicant for the regulatory sandbox shall provide to the department an application in a form prescribed by the department that:
(a) demonstrates the applicant is subject to the jurisdiction of the state through incorporation, residency, presence agreement, or otherwise;
(b) demonstrates the applicant has established a physical or virtual location that is adequately accessible to the department, from which testing will be developed and performed and where all required records, documents, and data will be maintained;
(c) contains relevant personal and contact information for the applicant, including legal names, addresses, telephone numbers, email addresses, website addresses, and other information required by the department;
(d) discloses criminal convictions of the applicant or other participating personnel, if any;
(e) demonstrates that the applicant has the necessary personnel, financial and technical expertise, access to capital, and developed plan to test, monitor, and assess the innovative product or service;
(f) contains a description of the innovative product or service to be tested, including statements regarding all of the following:
(i) how the innovative product or service is subject to licensing or other authorization requirements outside of the regulatory sandbox;
(ii) how the innovative product or service would benefit consumers;
(iii) how the innovative product or service is different from other products or services available in the state;
(iv) what risks may confront consumers that use or purchase the innovative product or service;
(v) how participating in the regulatory sandbox would enable a successful test of the innovative product or service;
(vi) a description of the proposed testing plan, including estimated time periods for beginning the test, ending the test, and obtaining necessary licensure or authorizations after the testing is complete;
(vii) a description of how the applicant will perform ongoing duties after the test; and
(viii) how the applicant will end the test and protect consumers if the test fails;
(g) if the applicant desires to make a claim of business confidentiality with respect to any information provided to the department in the application, includes in accordance with Section 63G-2-309:
(i) a written claim of business confidentiality; and
(ii) a concise statement of reasons supporting the claim of business confidentiality; and
(h) provides any other required information as determined by the department.
(4) The department may collect an application fee from an applicant that is set in accordance with Section 63J-1-504.
(5) An applicant shall file a separate application for each innovative product or service that the applicant wants to test.
(6) After an application is filed, the department may seek additional information from the applicant that the department determines is necessary.
(7) Subject to Subsection (8), not later than 90 days after the day on which a complete application is received by the department, the department shall inform the applicant as to whether the application is approved for entry into the regulatory sandbox.
(8) The department and an applicant may mutually agree to extend the 90-day time period described in Subsection (7) for the department to determine whether an application is approved for entry into the regulatory sandbox.
(9)
(a) In reviewing an application under this section, the department shall consult with, and get approval from, each applicable agency before admitting an applicant into the regulatory sandbox.
(b) The consultation with an applicable agency may include seeking information about whether:
(i) the applicable agency has previously issued a license or other authorization to the applicant;
(ii) the applicable agency has previously investigated, sanctioned, or pursued legal action against the applicant;
(iii) whether the applicant could obtain a license or other authorization from the applicable agency after exiting the regulatory sandbox; and
(iv) whether certain licensure or other regulations should not be waived even if the applicant is accepted into the regulatory sandbox.
(10) In reviewing an application under this section, the department shall consider whether a competitor to the applicant is or has been a sandbox participant and, if so, weigh that as a factor in favor of allowing the applicant to also become a sandbox participant.
(11) If the department and each applicable agency approve admitting an applicant into the regulatory sandbox an applicant may become a sandbox participant.
(12)
(a) The department may deny any application submitted under this section, for any reason, at the department's discretion.
(b) If the department denies an application submitted under this section, the department shall provide to the applicant a written description of the reasons for the denial as a sandbox participant.