As Introduced
135th General Assembly
Regular Session S. B. No. 327
2023-2024
Senators Lang, Cutrona
A BILL
To enact sections 1357.01, 1357.02, 1357.04, 1
1357.05, 1357.06, 1357.07, 1357.08, 1357.09, 2
1357.10, 1357.11, 1357.12, and 1357.13 of the 3
Revised Code to create a regulatory relief 4
office within the Department of Commerce and 5
establish a universal regulatory sandbox program 6
under which the office may temporarily waive 7
certain state laws and regulations and allow 8
businesses to demonstrate innovative products 9
and services. 10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1357.01, 1357.02, 1357.04, 11
1357.05, 1357.06, 1357.07, 1357.08, 1357.09, 1357.10, 1357.11, 12
1357.12, and 1357.13 of the Revised Code be enacted to read as 13
follows: 14
Sec. 1357.01. As used in this chapter: 15
(A) "Advisory committee" means the universal regulatory 16
sandbox program advisory committee established under section 17
1357.04 of the Revised Code. 18
(B) "Applicable agency" means a department or agency of 19
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As Introduced
the state that by law regulates a business activity and persons 20
engaged in such business activity, including the issuance of 21
licenses or other types of authorization, which the regulatory 22
relief office determines would otherwise regulate a sandbox 23
participant. 24
(C) "Business day" means any day of the week, excluding 25
Saturday, Sunday, and a legal holiday, as defined in section 26
1.14 of the Revised Code. 27
(D) "Consumer" means a person that purchases or otherwise 28
enters into a transaction or agreement to receive an offering 29
pursuant to a demonstration by a sandbox participant. 30
(E) "Demonstrate" or "demonstration" means to temporarily 31
provide an offering in accordance with the provisions of the 32
universal regulatory sandbox program described in this chapter. 33
(F) "Innovation" means the use or incorporation of a new 34
idea, a new or emerging technology, or a new use of existing 35
technology to address a problem, provide a benefit, or otherwise 36
offer a product, production method, or service. 37
(G) "Innovative offering" means an offering that includes 38
an innovation. 39
(H)(1) "Product" means a commercially distributed good 40
that is all of the following: 41
(a) Tangible personal property; 42
(b) The result of a production process; 43
(c) Passed through the distribution channel before 44
consumption. 45
(2) "Product" does not include either of the following: 46
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As Introduced
(a) Beer or wine, as defined in section 4301.01 of the 47
Revised Code; 48
(b) Motor vehicles, as defined in section 4501.01 of the 49
Revised Code. 50
(I) "Production" means the method or process of creating 51
or obtaining a good, which may include assembling, breeding, 52
capturing, collecting, extracting, fabricating, farming, 53
fishing, gathering, growing, harvesting, hunting, manufacturing, 54
mining, processing, raising, or trapping a good. 55
(J) "Sandbox participant" means a person whose application 56
to participate in the universal regulatory sandbox is approved 57
in accordance with this chapter. 58
(K) "Service" means any commercial activity, duty, or 59
labor performed for another person, except for either of the 60
following: 61
(1) The activities regulated by Title XLIII of the Revised 62
Code to the extent that those activities pertain to the 63
distribution or sale of beer or wine; 64
(2) The activities regulated by Chapter 4517. of the 65
Revised Code. 66
Sec. 1357.02. (A) The director of commerce shall establish 67
a universal regulatory sandbox program in consultation with 68
applicable agencies to enable a person to obtain limited access 69
to the market in this state to test products or services without 70
obtaining any other license or authorization that otherwise 71
would be required. 72
(B) The director shall establish a regulatory relief 73
office within the department of commerce for the purposes of 74
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As Introduced
administering this chapter and acting as a liaison between 75
private businesses and applicable agencies to identify state 76
laws or regulations that could potentially be waived or 77
suspended under the universal regulatory sandbox program. 78
(C) The regulatory relief office may do all of the 79
following: 80
(1) Identify state laws and regulations that unnecessarily 81
inhibit the creation and success of new companies or industries 82
in this state and provide recommendations to the governor and 83
the general assembly on modifying such state laws and 84
regulations; 85
(2) Create a framework for analyzing the risk level to the 86
health, safety, and financial well-being of consumers as a 87
result of permanently removing or temporarily waiving laws and 88
regulations that inhibit the creation or success of new and 89
existing companies or industries in this state; 90
(3) Propose potential reciprocity agreements between 91
states that use or are proposing to use similar universal 92
regulatory sandbox programs as described in this chapter or 93
Chapter 3755. of the Revised Code; 94
(4) Adopt rules in accordance with Chapter 119. of the 95
Revised Code as necessary to do either of the following: 96
(a) Administering the universal regulatory sandbox 97
program, including the application process and the reporting 98
requirements of sandbox participants; 99
(b) Cooperating and consulting with the superintendent of 100
financial institutions respecting the regulatory sandbox program 101
authorized by Chapter 1355. of the Revised Code. 102
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Sec. 1357.04. (A) The universal regulatory sandbox program 103
advisory committee is established within the department of 104
commerce. The committee shall advise and make recommendations to 105
the regulatory relief office as described in this chapter. 106
(B) The committee shall consist of the following members: 107
(1) Six members who represent business interests from a 108
variety of industry clusters, appointed by the director of 109
commerce; 110
(2) Three members who represent state agencies that 111
regulate businesses, appointed by the director of commerce; 112
(3) One member of the senate, appointed by the president 113
of the senate; 114
(4) One member of the house of representatives, appointed 115
by the speaker of the house of representatives. 116
(C)(1) Members of the committee shall be appointed not 117
later than thirty days after the effective date of this section. 118
Members of the committee serve at the pleasure of the member's 119
appointing authority. Any vacancy in the membership of the 120
committee shall be filled within sixty days after the vacancy 121
occurs in the same manner as the original appointment. 122
(2) Of the initial appointments made by the director of 123
commerce to the committee: 124
(a) Three of the members described in division (B)(1) of 125
this section and two of the members described in division (B)(2) 126
of this section shall serve for a term ending January 1, 2027; 127
(b) Three of the members described in division (B)(1) of 128
this section and one of the members described in division (B)(2) 129
of this section shall serve for a term ending January 1, 2029. 130
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(3) After the initial appointments, terms for all members 131
appointed by the director of commerce shall be four years, with 132
each term ending on the same day of the same month as did the 133
term it succeeds. 134
(4) Legislative members of the committee shall serve terms 135
of two years or for the remainder of the member's legislative 136
term, whichever is less. 137
(D) Members of the committee shall serve without 138
compensation but may be reimbursed for expenses actually 139
incurred in the performance of their duties, within the limits 140
of funds available to the committee for such purposes. 141
(E) The director of commerce shall select a chairperson 142
for the committee on an annual basis. The committee shall meet 143
at the call of the chairperson. The initial meeting shall not be 144
later than thirty days after the last member is appointed. A 145
majority of the members of the committee constitutes a quorum 146
for the transaction of the business of the committee. 147
(F) The staff of the regulatory relief office shall 148
provide technical and administrative support as needed by the 149
committee. 150
(G) The committee is not a public body for the purposes of 151
section 121.22 of the Revised Code. 152
Sec. 1357.05. On or before October 1 of the first year 153
that begins after the effective date of this section, and 154
annually thereafter, the director of commerce shall submit a 155
written report on the activities of the regulatory relief office 156
to the general assembly in accordance with section 101.68 of the 157
Revised Code. The report shall include all of the following: 158
(A) Information regarding each participant in the 159
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universal regulatory sandbox program, including which industry 160
each participant represents and the anticipated or actual cost 161
savings that each participant experiences; 162
(B) Recommended changes to laws or regulations that the 163
regulatory relief office determines unnecessarily inhibit the 164
creation and success of new companies or industries; 165
(C) Information on the universal regulatory sandbox 166
program's impact on consumer outcomes; 167
(D) Recommended changes to the universal regulatory 168
sandbox program or the regulatory relief office. 169
Sec. 1357.06. (A) A person that seeks to participate in 170
the universal regulatory sandbox program shall apply to the 171
regulatory relief office in a form and manner prescribed by the 172
office. The application shall, at minimum, include all of the 173
following: 174
(1) Confirmation that the applicant is subject to the 175
jurisdiction of the department of commerce, which may be 176
demonstrated through incorporation, residency, an agreement with 177
the director of commerce by which the applicant agrees to be 178
subject to the laws and courts of this state relating to any 179
action arising out of the applicant's demonstration of a product 180
or service in the universal regulatory sandbox, or otherwise; 181
(2) Confirmation that the applicant has established a 182
physical or virtual location in the state, from which the 183
demonstration of an innovative offering will be developed and 184
performed and where all required records, documents, and data 185
will be maintained; 186
(3) Relevant personal and contact information for the 187
applicant, including legal names, addresses, telephone numbers, 188
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electronic mail addresses, web site addresses, and other 189
information that may be required by the regulatory relief 190
office; 191
(4) Disclosure of criminal convictions, if any, of the 192
applicant and other participating personnel; 193
(5) A description of the innovative offering to be 194
demonstrated, including statements regarding all of the 195
following: 196
(a) How the offering is subject to licensing, legal 197
prohibition, or other authorization requirements outside of the 198
universal regulatory sandbox; 199
(b) Each law or regulation that the applicant seeks to 200
have waived or suspended while participating in the universal 201
regulatory sandbox program; 202
(c) How the offering would benefit consumers; 203
(d) How the offering is different from other offerings 204
available in this state; 205
(e) What risks might exist for consumers that use or 206
purchase the offering; 207
(f) How participating in the regulatory sandbox would 208
enable a successful demonstration of the offering; 209
(g) A description of the proposed demonstration plan, 210
including estimated time periods for beginning and ending the 211
demonstration; 212
(h) Recognition that the applicant will be subject to all 213
laws and regulations pertaining to the applicant's offering 214
after conclusion of the demonstration; 215
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(i) How the applicant will end the demonstration and 216
protect consumers if the demonstration fails. 217
(6) A list of the state agencies that regulate the 218
applicant's business; 219
(7) Other information that may be required by the 220
regulatory re