SB 245 — An Act establishing the Regulatory Sandbox Program, the Regulatory Relief Office and an advisory committee; and providing for their powers and duties.

PRIOR PRINTER'S NO.

198 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

894245 THE2025 GENERALINTRODUCED ASSEMBLYBY OFCOLEMAN, PENNSYLVANIAPHILLIPS-HILL SENATEAND BILLSTEFANO, SessionFEBRUARY of13, No.2025 REFERRED TO INTERGOVERNMENTAL OPERATIONS, FEBRUARY 13, 2025 AN ACT Establishing the Regulatory Sandbox Program, the Regulatory their powers and duties.isory committee;

245and 2025providing INTRODUCEDfor BYThe COLEMAN,General PHILLIPS-HILLAssembly ANDof STEFANO,the FEBRUARYCommonwealth 13,of 2025Pennsylvania SENATORhereby COLEMAN,enacts INTERGOVERNMENTALas OPERATIONS,follows: AS AMENDED, JUNE 4, 2025 AN ACT EstRelief Office and an advisory committee;

and providing for their powers and duties.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

20250SB0245PN089420250SB0245PN0198 - 2 - "Insurance product or service." A product or service that is offered by an insurer that requires State licensure, registration or other authorization as regulated by State law, including a product or insurance service that includes a business model, delivery mechanism or element that requires a license, registration or other authorization to do an insurance business, act as an insurance producer or consultant or engage in insurance adjusting as regulated by State law.

"Sandbox participant." A person whose application to participate in the regulatory sandbox is approved in accordance 20250SB0245PN089420250SB0245PN0198 - 3 - with the provisions of this act.

and (ii) cooperating and consulting with other agencies 20250SB0245PN089420250SB0245PN0198 - 4 - in the Commonwealth that administer the program.

(e) Quorum.--A majority of the advisory committee constitutes a quorum for the purpose of conducting advisory 20250SB0245PN089420250SB0245PN0198 - 5 - committee business.

(c) Consultation.-- 20250SB0245PN089420250SB0245PN0198 - 6 - (1) An applicant for a regulatory sandbox may contact the office to request a consultation regarding the regulatory sandbox before submitting an application.

20250SB0245PN089420250SB0245PN0198 - 7 - (v) what risks might exist for consumers who use or purchase the offering;

(g) Duties of office.--After an application is filed with 20250SB0245PN089420250SB0245PN0198 - 8 - the office, the office shall:

(h) Duties of applicable agencies.-- (1) Subject to paragraphs (3) and (7), no later than 30 days after the day on which an applicable agency receives a complete application for review, the applicable agency shall 20250SB0245PN089420250SB0245PN0198 - 9 - provide a written report to the director of the applicable agency's findings.

(6) If an applicable agency fails to deliver a written report as described in this subsection, the director shall 20250SB0245PN089420250SB0245PN0198 - 10 - assume that the applicable agency does not object to the temporary waiver or suspension of the relevant law or regulations for an applicant seeking to participate in the regulatory sandbox, and the application shall be deemed approved.

20250SB0245PN089420250SB0245PN0198 - 11 - (3) After receiving and reviewing the application and written report, the advisory committee shall provide to the director the advisory committee's recommendation as to whether or not the applicant should be admitted as a sandbox participant under this act.

(2) In reviewing an application under this section, the office shall consider, in addition to the factor in paragraph 20250SB0245PN089420250SB0245PN0198 - 12 - (1), whether:

(2) The office shall deny an application for 20250SB0245PN089420250SB0245PN0198 - 13 - participation in the regulatory sandbox described in this section if the applicant or another person who seeks to participate with the applicant in demonstrating an offering has been convicted, entered a plea of nolo contendere or entered a plea of guilty or nolo contendere held in abeyance, for a crime involving significant theft, fraud or dishonesty that bears a significant relationship to the applicant's or other participant's ability to safely and competently participate in the program.

(ii) Public notice regarding any sandbox participant's revocation to participate in the regulatory 20250SB0245PN089420250SB0245PN0198 - 14 - sandbox.

(d) Applicability of enforcement law.-- (1) During the demonstration period, a sandbox 20250SB0245PN089420250SB0245PN0198 - 15 - participant is not subject to the enforcement of State law or regulations identified in the written agreement between the office and the sandbox participant.

(g) No liability for office.--The office and the office's 20250SB0245PN089420250SB0245PN0198 - 16 - employees are not liable for any business loss or the recouping of an application expense or other expense related to the regulatory sandbox, including for:

(2) That the offering is authorized under the regulatory sandbox and, if applicable, that the sandbox participant does not have a license or other authorization to provide an offering under State law that regulates offerings outside of 20250SB0245PN089420250SB0245PN0198 - 17 - the regulatory sandbox.

(a) Duties of sandbox participants.--At least 30 days before 20250SB0245PN089420250SB0245PN0198 - 18 - the end of the 24-month regulatory sandbox demonstration period, a sandbox participant shall:

(a) Duty of sandbox participants.--A sandbox participant 20250SB0245PN089420250SB0245PN0198 - 19 - shall retain records, documents and data produced in the ordinary course of business regarding an offering demonstrated in the regulatory sandbox.

(f) Post-participation report.-- (1) No later than 30 days after the day on which a sandbox participant exits the regulatory sandbox, the sandbox participant shall submit a written report to the office and 20250SB0245PN089420250SB0245PN0198 - 20 - each applicable agency describing an overview of the sandbox participant's demonstration, including any:

(2) No later than 30 days after an applicable agency receives the quarterly reporting described in subsection (c) or a written report from a sandbox participant as described in subsection (e)(1)(e)(1), PARAGRAPH (1), the applicable agency <-- shall provide a written report to the office on the demonstration that describes any statutory or regulatory reform the applicable agency recommends as a result of the demonstration.

(2) In creating the report described in paragraph (1), 20250SB0245PN0894 - 21 - the office and the advisory committee:

20250SB0245PN0198 - 21 - (i) shall ensure that private information of residents and businesses that make suggestions on the web page is not made public;

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