Section 620.3915

Title XL ADDITIONAL EXECUTIVE DEPARTMENTS

Chapter 620

Effective - 28 Aug 2024   

  620.3915.  Application requirements. — 1.  An applicant for the sandbox program shall provide to the regulatory relief office an application in a form prescribed by the regulatory relief office that:

  (1)  Confirms the applicant is subject to the jurisdiction of the state;

  (2)  Confirms the applicant has established physical residence or a virtual location in the state from which the demonstration of an innovative offering will be developed and performed, and where all required records, documents, and data will be maintained;

  (3)  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 regulatory relief office;

  (4)  Discloses criminal convictions of the applicant or other participating personnel, if any; and

  (5)  Contains a description of the innovative offering to be demonstrated, including statements regarding:

  (a)  How the innovative offering is subject to licensing, legal prohibition, or other authorization requirements outside of the sandbox program;

  (b)  Each regulation that the applicant seeks to have waived or suspended while participating in the sandbox program;

  (c)  How the innovative offering would benefit consumers;

  (d)  How the innovative offering is different from other innovative offerings available in the state;

  (e)  The risks that might exist for consumers who use or purchase the innovative offering;

  (f)  How participating in the sandbox program would enable a successful demonstration of the innovative offering of an innovative product or service;

  (g)  A description of the proposed demonstration plan, including estimated time periods for beginning and ending the demonstration;

  (h)  Recognition that the applicant will be subject to all laws and regulations pertaining to the applicant's innovative offering after the conclusion of the demonstration;

  (i)  How the applicant will end the demonstration and protect consumers if the demonstration fails;

  (j)  A list of each applicable agency, if any, that the applicant knows regulates the applicant's business; and

  (k)  Any other required information as determined by the regulatory relief office.

  2.  An applicant shall remit to the regulatory relief office an application fee of three hundred dollars per application for each innovative offering.  Such application fees shall be used by the regulatory relief office solely for the purpose of implementing the provisions of sections 620.3900 to 620.3930.

  3.  An applicant shall file a separate application for each innovative offering that the applicant wishes to demonstrate.

  4.  An applicant for the sandbox program may contact the regulatory relief office to request a consultation regarding the sandbox program before submitting an application.  The regulatory relief office may provide assistance to an applicant in preparing an application for submission.

  5.  (1)  After an application is filed, the regulatory relief office shall:

  (a)  Consult with each applicable agency that regulates the applicant's business regarding whether more information is needed from the applicant; and

  (b)  Seek additional information from the applicant that the regulatory relief office determines is necessary.

  (2)  No later than fifteen business days after the day on which a completed application is received by the regulatory relief office, the regulatory relief office shall:

  (a)  Review the application and refer the application to each applicable agency that regulates the applicant's business; and

  (b)  Provide to the applicant:

  a.  An acknowledgment of receipt of the application; and

  b.  The identity and contact information of each applicable agency to which the application has been referred for review.

  (3)  No later than sixty days after the day on which an applicable agency receives a completed application for review, the applicable agency shall provide a written report to the sandbox program director with the applicable agency's findings.  Such report shall:

  (a)  Describe any identifiable, likely, and significant harm to the health, safety, or financial well-being of consumers or Missouri's environment that the relevant regulation protects against; and

  (b)  Make a recommendation to the regulatory relief office that the applicant either be admitted or denied entrance into the sandbox program.

  (4)  An applicable agency may request an additional ten business days to deliver the written report required by subdivision (3) of this subsection by providing notice to the sandbox program director, which request shall automatically be granted.  An applicable agency may request only one extension per application.  The sandbox program director may also provide an additional extension to the applicable agency for cause.

  (5)  If an applicable agency recommends an applicant under this section be denied entrance into the sandbox program, the written report required by subdivision (3) of this subsection shall include a description of the reasons for such recommendation, including the reason a temporary waiver or suspension of the relevant regulations would potentially significantly harm the health, safety, or financial well-being of consumers or the public or Missouri's environment and the assessed likelihood of such harm occurring.

  (6)  If an applicable agency determines that the consumer's or public's health, safety, or financial well-being can be protected through less restrictive means than the existing relevant laws or regulations, the applicable agency shall provide a recommendation of how that can be achieved.

  (7)  If an applicable agency fails to deliver the written report required by subdivision (3) of this subsection, the sandbox program director shall provide a final notice to the applicable agency for delivery of the written report.  If the report is not delivered within five days of such final notice, the sandbox program director shall assume that the applicable agency does not object to the temporary waiver or suspension of the relevant regulations for an applicant seeking to participate in the sandbox program.

  6.  (1)  Notwithstanding any provision of this section to the contrary, an applicable agency may, by written notice to the regulatory relief office:

  (a)  Reject an application, provided such rejection occurs within forty-five days after the day on which the applicable agency receives a complete application for review, or within fifty days if an extension has been requested by the applicable agency, if the applicable agency determines, in the applicable agency's sole discretion, that the applicant's offering fails to comply with standards or specifications:

  a.  Required by federal rule or regulation;

  b.  Previously approved for use by a federal agency; or

  c.  In which the rule or regulation is supported by way of federal funding; or

  (b)  Reject an application preliminarily approved by the regulatory relief office, if the applicable agency:

  a.  Recommends rejection of the application in the applicable agency's written report submitted pursuant to subdivision (3) of subsection 5 of this section; and

  b.  Provides in the written report submitted pursuant to subdivision (3) of subsection 5 of this section a description of the applicable agency's reasons approval of the application would create a substantial risk of harm to the health or safety of the public or Missouri's environment, or create unreasonable expenses for taxpayers in the state.

  (2)  If any applicable agency rejects an application on a nonpreliminary basis pursuant to subdivision (1) of this subsection, the regulatory relief office shall not approve the application.

  7.  (1)  The sandbox program director shall provide all applications and associated written reports to the advisory committee upon receiving a written report from an applicable agency.

  (2)  The sandbox program director may call the advisory committee to meet as needed, but not less than once per quarter if applications are available for review.

  (3)  After receiving and reviewing the application and each associated written report, the advisory committee shall provide to the sandbox program director the advisory committee's recommendation as to whether the applicant should be admitted as a sandbox participant.

  (4)  As part of the advisory committee's review of each report, the advisory committee shall use criteria used by applicable agencies to evaluate applications.

  8.  The regulatory relief office shall consult with each applicable agency and the advisory committee before admitting an applicant into the sandbox program.  Such consultation may include seeking information and giving consideration to whether:

  (1)  The applicable agency has previously issued a license or other authorization to the applicant; and

  (2)  The applicable agency has previously investigated, sanctioned, or pursued legal action against the applicant and the reasons for such actions.

  9.  In reviewing an application under this section, the regulatory relief office and applicable agencies shall consider whether:

  (1)  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;

  (2)  The applicant's plan will adequately protect consumers from potential harm identified by an applicable agency in the applicable agency's written report;

  (3)  The risk of harm to consumers is outweighed by the potential benefits to consumers from the applicant's participation in the sandbox program; and

  (4)  Certain state regulations that regulate an innovative offering should not be waived or suspended even if the applicant is approved as a sandbox participant, including applicable antifraud or disclosure provisions.

  10.  An applicant shall become a sandbox participant if the regulatory relief office approves the application for the sandbox program and enters into a written agreement with the applicant describing the specific regulations that are waived or suspended as part of participation in the sandbox program.  Notwithstanding any other provision of this section to the contrary, the regulatory relief office shall not enter into a written agreement with an applicant that exempts the applicant from any income, property, or sales tax liability unless such applicant otherwise qualifies for an exemption from such tax.

  11.  (1)  The sandbox program director may deny at his or her sole discretion any application submitted under this section for any reason, including if the sandbox program director determines that the preponderance of evidence demonstrates that suspending or waiving enforcement of a regulation would cause significant risk of harm to consumers or residents of the state.

  (2)  If the sandbox program director denies an application submitted under this section, the regulatory relief office shall provide to the applicant a written description of the reasons for not allowing the applicant to become a sandbox participant.

  (3)  The denial of an application submitted under this section shall not be subject to judicial or administrative review.

  (4)  The acceptance or denial of an application submitted under this section may be overridden by an affirmative vote of a two-thirds majority of the advisory committee at the discretion of the advisory committee, provided such vote shall take place within fifteen business days of the sandbox program director's decision.  Notwithstanding any other provision of this section to the contrary, the advisory committee shall not override a rejection made by an applicable agency.

  (5)  The sandbox program director shall deny an application for participation in the sandbox program if the applicant or any person who seeks to participate with the applicant in demonstrating an innovative offering has been convicted, entered into a plea of nolo contendere, or entered a plea of guilty or nolo contendere held in abeyance, for any crime involving significant theft, fraud, or dishonesty if the crime bears a significant relationship to the applicant's or other participant's ability to safely and competently participate in the sandbox program.

  12.  When an applicant is approved for participation in the sandbox program, the sandbox program director shall provide notice of the approval on the department's website.

  13.  Applications to participate in the sandbox program shall be considered public records for the purposes of chapter 610, provided, however, that any information contained in such applications that constitutes proprietary or confidential trade secrets shall not be subject to disclosure pursuant to chapter 610.

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(L. 2024 S.B. 894 & 825)