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2019 Utah Code
Title 13 - Commerce and Trade
Chapter 55 - Regulatory Sandbox Program
Section 103 - Regulatory Sandbox Program -- Application requirements.
Universal Citation: UT Code § 13-55-103 (2019)
Effective 5/14/2019
13-55-103. Regulatory Sandbox Program -- Application requirements.
Enacted by Chapter 243, 2019 General Session
13-55-103. Regulatory Sandbox Program -- Application requirements.
- (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;
- (b) demonstrates the applicant has established a physical location in the state, 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; and
- (g) 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.
Enacted by Chapter 243, 2019 General Session
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