F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1287 2023
1 A bill to be entitled
2 An act relating to the universal regulatory sandbox;
3 creating part XVI of ch. 288, F.S.; providing purpose;
4 providing definitions; creating the Office of
5 Regulatory Relief within the Department of Economic
6 Opportunity; specifying the duties of the office;
7 creating the General Regulatory Sandbox Program
8 Advisory Committee; providing for membership of the
9 committee; creating the General Regulatory Sandbox
10 Program; providing requirements for applications;
11 providing timelines and criteria for reviewing
12 applications; requiring the office to consult with
13 specified entities before admitting an applicant into
14 the regulatory sandbox; providing for written
15 agreements with sandbox participants; exempting denial
16 of an application from certain review or specified
17 laws; providing grounds for denial of an application;
18 requiring public notice of approval of an applicant;
19 requiring the office to post certain information on
20 its website; exempting sandbox participants from
21 certain enforcement for a specified period; specifying
22 limits to such exemption; authorizing the office to
23 terminate participation in the regulatory sandbox;
24 providing certain immunity to the office and its
25 employees; providing for consumer protection;
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26 providing requirements for exiting the regulatory
27 sandbox; providing for extension of agreements;
28 providing recordkeeping and reporting requirements;
29 requiring the office to maintain a specified web page;
30 amending s. 20.60, F.S.; conforming provisions to
31 changes made by the act; providing an effective date.
32
33 Be It Enacted by the Legislature of the State of Florida:
34
35 Section 1. Part XVI of chapter 288, Florida Statutes,
36 consisting of ss. 288.9971-288.9983, is created to read:
37 PART XVI
38 UNIVERSAL REGULATORY SANDBOX
39 288.9971 Purpose.—This part establishes a universal
40 regulatory sandbox, which allows businesses, under the
41 observation of regulators, to trial innovative products,
42 services, and business models while temporarily receiving a
43 waiver or suspension of inapplicable laws or regulations.
44 288.9972 Definitions.—As used in this part, the term:
45 (1) "Advisory committee" means the General Regulatory
46 Sandbox Program Advisory Committee created in s. 288.9974.
47 (2) "Applicable agency" means a department or agency of
48 the state that regulates a business activity and persons engaged
49 in such business activity, including the issuance of licenses or
50 other types of authorization, which the office determines would
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51 otherwise regulate a sandbox participant.
52 (3) "Applicant" means a person who applies to participate
53 in the regulatory sandbox.
54 (4) "Blockchain technology" means the use of a digital
55 database containing records of financial transactions, which can
56 be simultaneously used and shared within a decentralized,
57 publicly accessible network and can record transactions between
58 two parties in a verifiable and permanent way.
59 (5) "Consumer" means a person who purchases or otherwise
60 enters into a transaction or agreement to receive an offering
61 pursuant to a demonstration by a sandbox participant.
62 (6) "Demonstrate" or "demonstration" means to temporarily
63 provide an offering in accordance with the General Regulatory
64 Sandbox Program created in s. 288.9975.
65 (7) "Director" means the director of the Office of
66 Regulatory Relief.
67 (8) "Financial product or service" has the same meaning as
68 in s. 559.952(3).
69 (9) "Innovation" means the use or incorporation of a new
70 or existing idea, a new or emerging technology, or a new use of
71 existing technology, including blockchain technology, to address
72 a problem, provide a benefit, or otherwise offer a product,
73 production method, or service.
74 (10) "Insurance product or service" means an insurance
75 product or insurance service that requires state licensure,
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76 registration, or other authorization under the Florida Insurance
77 Code, including an insurance product or insurance service that
78 includes a business model, delivery mechanism, or element that
79 requires a license, registration, or other authorization to
80 engage in an insurance business, act as an insurance producer or
81 consultant, or engage in insurance adjusting.
82 (11) "Offering" means a product, production method, or
83 service, including a financial product or service or an
84 insurance product or service, that includes an innovation.
85 (12) "Office" means the Office of Regulatory Relief
86 created in s. 288.9973.
87 (13) "Product" means a commercially distributed good that
88 is:
89 (a) Tangible personal property.
90 (b) The result of a production process.
91 (c) Passed through the distribution channel before
92 consumption.
93 (14) "Production" means the method or process of creating
94 or obtaining a good, which may include assembling, breeding,
95 capturing, collecting, extracting, fabricating, farming,
96 fishing, gathering, growing, harvesting, hunting, manufacturing,
97 mining, processing, raising, or trapping a good.
98 (15) "Regulatory sandbox" means the General Regulatory
99 Sandbox Program created in s. 288.9975, which allows a person to
100 temporarily demonstrate an offering under a waiver or suspension
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101 of one or more state laws or regulations.
102 (16) "Sandbox participant" means a person whose
103 application to participate in the regulatory sandbox is approved
104 in accordance with this part.
105 (17) "Secretary" means the Secretary of Economic
106 Opportunity.
107 (18) "Service" means any commercial activity, duty, or
108 labor performed for another person.
109 288.9973 Office of Regulatory Relief.–
110 (1) There is created within the Department of Economic
111 Opportunity the Office of Regulatory Relief.
112 (2)(a) The office shall be administered by a director.
113 (b) The director shall report to the secretary and may
114 appoint staff subject to the approval of the secretary.
115 (3) The office shall:
116 (a) Administer this part.
117 (b) Administer the regulatory sandbox.
118 (c) Act as a liaison between private businesses and
119 applicable agencies to identify laws or regulations that could
120 be waived or suspended under the regulatory sandbox.
121 (4) The office may:
122 (a) Review laws and regulations that may unnecessarily
123 inhibit the creation and success of new companies or industries
124 and provide recommendations to the Governor and the Legislature
125 on modifying or eliminating such laws and regulations.
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126 (b) Create a framework for analyzing the risk level to the
127 health, safety, and financial well-being of consumers related to
128 permanently modifying or eliminating or temporarily waiving or
129 suspending laws and regulations inhibiting the creation or
130 success of new and existing companies or industries.
131 (c) Propose potential reciprocity agreements between
132 states that use or are proposing to use similar regulatory
133 sandboxes as created in this part or the Financial Technology
134 Sandbox created in s. 559.952.
135 (d) In accordance with chapter 120 and this part, adopt
136 rules regarding:
137 1. Administering the regulatory sandbox, including
138 adopting rules regarding the application process and the
139 reporting requirements of sandbox participants.
140 2. Cooperating and consulting with other applicable
141 agencies that administer regulatory sandboxes.
142 288.9974 General Regulatory Sandbox Program Advisory
143 Committee.—
144 (1) There is created the General Regulatory Sandbox
145 Program Advisory Committee.
146 (2) The advisory committee shall consist of 11 members as
147 follows:
148 (a) Six members who represent business interests from a
149 variety of industries, appointed by the director.
150 (b) Three members who represent applicable agencies
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151 regulating businesses, appointed by the director.
152 (c) One member of the Senate, appointed by the President
153 of the Senate.
154 (d) One member of the House of Representatives, appointed
155 by the Speaker of the House of Representatives.
156 (3)(a) Subject to paragraph (b), members of the advisory
157 committee who are not legislators shall be appointed to 4-year
158 terms.
159 (b) Notwithstanding the requirements of paragraph (a), the
160 director may adjust the length of terms of appointments and
161 reappointments to the advisory committee so that approximately
162 half of the advisory committee is appointed every 2 years.
163 (4) The director shall select a chair of the advisory
164 committee on an annual basis.
165 (5) A majority of the members of the advisory committee
166 constitutes a quorum for the purpose of conducting advisory
167 committee business, and the affirmative vote of a majority of
168 the members constitutes the official action of the advisory
169 committee.
170 (6) The advisory committee shall advise and make
171 recommendations to the office.
172 (7) The office shall provide administrative staff support
173 for the advisory committee.
174 (8) A member may not receive compensation or benefits for
175 the member's service, but a member appointed under paragraph
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176 (2)(a) may receive per diem and travel expenses in accordance
177 with s. 112.061.
178 288.9975 General Regulatory Sandbox Program; application
179 requirements.—
180 (1) There is created in the office the General Regulatory
181 Sandbox Program.
182 (2) In administering the regulatory sandbox, the office:
183 (a) Shall consult with each applicable agency.
184 (b) Shall enable a person to obtain legal protections and
185 limited access to the market to demonstrate an offering without
186 obtaining a license or other authorization that might ot herwise
187 be required.
188 (c) May enter into agreements with or adopt the best
189 practices of corresponding federal regulatory agencies or
190 agencies in other states that are administering similar
191 programs.
192 (d) May consult with businesses about existing or
193 potential proposals for the regulatory sandbox.
194 (3)(a) An applicant may contact the office to request a
195 consultation regarding the regulatory sandbox before submitting
196 an application.
197 (b) The office may provide assistance to an applicant in
198 preparing an application for submission.
199 (4) An applicant shall submit an application to the
200 office, in a form prescribed by the office, that:
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201 (a) Confirms the applicant is subject to the jurisdiction
202 of the state.
203 (b) Confirms the applicant has established a physi cal or
204 virtual location in the state, from which the demonstration of
205 an offering shall be developed and performed and where all
206 required records, documents, and data shall be maintained.
207 (c) Contains relevant personal and contact information for
208 the applicant, including the applicant's full legal name,
209 address, telephone number, e-mail address, website address, and
210 any other information required by the office.
211 (d) Discloses any criminal convictions of the applicant or
212 of any person who seeks to participate with the applicant in the
213 demonstration of an offering.
214 (e) Contains a description of the offering to be
215 demonstrated, including statements regarding:
216 1. How the offering is subject to licensing, legal
217 prohibition, or other authorization requirements outside of the
218 regulatory sandbox.
219