HB 264 — AN ACT relating to regulatory relief.

UNOFFICIALCHAPTER COPY122 231 RSCHAPTER 122 ( HB 264/EN264 ) AN ACT relating to regulatory relief.

or Page 1 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN 2.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) The General Regulatory Sandbox Advisory Committee is hereby established for the purpose of advising and making recommendations to the Kentucky Office of Regulatory Relief concerning the implementation and administration of the General Regulatory Sandbox Program.

(a) Five (5) members representing the business community shall be appointed by the Attorney General from a list of three (3) names for each position to Page 2 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN be submitted by the following organizations:

Page 3 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN (5) Notwithstanding the requirements of subsection (3) of this section, the Attorney General may adjust the length of terms of appointments and reappointments to the committee so that half of the advisory committee is appointed every two (2) years.

CHAPTER 122 3 (3) The regulatory relief office shall:

Page 4 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN (b) Establish a program to enable a person to obtain legal protections and limited access to the market in the state to demonstrate an innovative offering without obtaining a license or other authorization that might otherwise be required;

(e) Consult with businesses in the state about existing or potential proposals for Page 5 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN the regulatory sandbox;

PageLegislative 6Research ofCommission 22PDF HB026420.100Version -ACTS 121OF -THE XXXXGENERAL 3/16/2023ASSEMBLY 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN 3.

and Page 7 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN i.

Page 8 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN 1.

CHAPTER 122 5 (1) (a) Subject to paragraphs (c) and (g) of this subsection, no later than thirty (30) days after the day on which an applicable agency receives a complete application for review, the applicable agency shall provide a written report to the director of the applicable agency's findings.

Describe any identifiable, likely, and significant harm to the health, safety, or financial well-beingwell- being of consumers that the relevant administrative regulation protects against;

(d) If the applicable agency recommends an applicant under this section be denied entrance into the regulatory sandbox, the written report shall include a description of the reasons for the recommendation, including why a temporary waiver or suspension of the relevant administrative regulations would potentially significantly harm the health, safety, or financial well-well-being being of consumers or the public and the likelihood of such harm Page 9 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN occurring.

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

Provides in the written notice under this paragraph a description Page 10 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN of the applicable agency's reasons why approval of the application would create a substantial risk of harm to the health or safety of the public, or create unreasonable expenses for taxpayers in the state.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (d) As part of the advisory committee's review of each written report, the advisory committee shall use the criteria required for an applicable agency as described in subsection (1) of this section.

Page 11 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN (4) In reviewing an application under this section, the regulatory relief office and each applicable agency 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.

(c) Notwithstanding any other provision of Sections 1 to 9 of this Act, the regulatory relief office shall not enter into a written agreement with an applicant that waives or suspends a requirement for licensure or regulation Page 12 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN of a health facility by the Cabinet for Health and Family Services pursuant to KRS Chapter 216B.

PageCHAPTER 13122 of7 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN (3) This section shall not restrict a sandbox participant who holds a license or other authorization in another jurisdiction from acting in accordance with that license or other authorization.

(7) By written notice, the regulatory relief office may end a sandbox participant's participation in the regulatory sandbox at any time and for any reason, including Page 14 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN if the director determines that a sandbox participant is not operating in good faith to bring an innovative offering to market.

Page 15 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN (1) The Attorney General is the head of the Department of Law.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Department of Criminal Litigation;

Page 16 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN Section 11.

CHAPTER 122 9 (b) The name, e-mail address, and telephone number of the contact person of the administrative body identified pursuant to KRS 13A.220(6)(d), and, if applicable, the name, e-mail address, and telephone number of an alternate person to be contacted with specific questions about the fiscal note;

(d) In detail, the aspect or service of state or local government to which the Page 17 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN administrative regulation relates, including identification of the applicable state or federal statute or regulation that mandates the aspect or service or authorizes the action taken by the administrative regulation;

Page 18 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN c.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) The name, contact information, and bar number of the applicant's insurance regulatory counsel, which shall be a person with experience providing Page 19 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN insurance regulatory compliance advice;

Page 20 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN 3.

and CHAPTER 122 11 4.

Page 21 of 22 HB026420.100 - 121 - XXXX 3/16/2023 9:32 AM Engrossed UNOFFICIAL COPY 23 RS HB 264/EN b.

PageBecame 22law ofwithout 22Governor's HB026420.100signature -March 12129, -2023. XXXX 3/16/2023 9:32 AM Engrossed

Legislative Research Commission PDF Version