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

PRINTER'S NO.   198

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       SENATE BILL
                       No. 245
                                                Session of
                                                  2025

     INTRODUCED BY COLEMAN, PHILLIPS-HILL AND STEFANO,
        FEBRUARY 13, 2025

     REFERRED TO INTERGOVERNMENTAL OPERATIONS, FEBRUARY 13, 2025


                                     AN ACT
 1   Establishing the Regulatory Sandbox Program, the Regulatory
 2      Relief Office and an advisory committee; and providing for
 3      their powers and duties.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6   Section 1.   Short title.
 7      This act shall be known and may be cited as the Regulatory
 8   Sandbox Program Act.
 9   Section 2.   Definitions.
10      The following words and phrases when used in this act shall
11   have the meanings given to them in this section unless the
12   context clearly indicates otherwise:
13      "Advisory committee."     The Regulatory Sandbox Program
14   Advisory Committee established under section 4.
15      "Applicable agency."     A department or agency of the
16   Commonwealth that by law regulates a business activity, and
17   persons engaged in a business activity, including the issuance
18   of licenses or other types of authorization, that the office
 1   determines would otherwise regulate a sandbox participant. The
 2   term includes the Pennsylvania Public Utility Commission and the
 3   Pennsylvania Gaming Control Board.
 4      "Applicant."    A person that applies to participate in the
 5   regulatory sandbox.
 6      "Blockchain technology."    An electronic method for storing
 7   cryptographically secure data in a database or distributed
 8   ledger technology that is decentralized, consensus-based,
 9   mathematically verified and distributed across multiple
10   locations.
11      "Consumer."    A person that purchases or otherwise enters into
12   a transaction or agreement to receive an offering under a
13   demonstration by a sandbox participant.
14      "Demonstrate" or "demonstration."     To temporarily provide an
15   offering in accordance with the provisions of the program.
16      "Director."    The director of the office.
17      "Executive Board."    The Executive Board of the Commonwealth.
18      "Financial product or service."     Either of the following:
19          (1)   a financial product or financial service that
20      requires State licensure or registration; or
21          (2)   a financial product, financial service or banking
22      business that includes a business model, delivery mechanism,
23      offering of deposit accounts or element that may require
24      other authorization to act as a financial institution,
25      enterprise or other entity that is regulated by State law.
26      "Innovation."    The use or incorporation of a new or existing
27   idea, a new or emerging technology or a new use of existing
28   technology, including, but not limited to, blockchain
29   technology, to address a problem, provide a benefit or otherwise
30   offer a product, production method or service.

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 1      "Insurance product or service."      A product or service that is
 2   offered by an insurer that requires State licensure,
 3   registration or other authorization as regulated by State law,
 4   including a product or insurance service that includes a
 5   business model, delivery mechanism or element that requires a
 6   license, registration or other authorization to do an insurance
 7   business, act as an insurance producer or consultant or engage
 8   in insurance adjusting as regulated by State law.
 9      "Offering."    A product, production method or service,
10   including a financial product or service or an insurance product
11   or service, that includes an innovation.
12      "Office."    The Regulatory Relief Office established under
13   section 3.
14      "Product."    A commercially distributed good that is:
15          (1)     the result of a production process; and
16          (2)     passed through the distribution channel before
17      consumption.
18      "Production."    The method or process of creating or obtaining
19   a good, which may include assembling, breeding, capturing,
20   collecting, extracting, fabricating, farming, fishing,
21   gathering, growing, harvesting, hunting, manufacturing, mining,
22   processing, raising or trapping a good.
23      "Program."    The Regulatory Sandbox Program established under
24   section 5.
25      "Regulatory sandbox."    A State law that allows a person to
26   temporarily demonstrate an offering under a waiver or suspension
27   of a State law, regulation, rule or guidance that would
28   otherwise apply to the offering.
29      "Sandbox participant."    A person whose application to
30   participate in the regulatory sandbox is approved in accordance

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 1   with the provisions of this act.
 2      "Service."        A commercial activity, duty or labor performed
 3   for a consumer.
 4   Section 3.     Regulatory Relief Office.
 5      (a)   Establishment.--The Regulatory Relief Office is
 6   established in the Governor's Office.
 7      (b)   Director and staff.--The office shall be administered by
 8   a director who shall be appointed by and report to the Governor
 9   and may appoint staff subject to the approval of the Governor.
10      (c)   Duties.--The office shall:
11            (1)   Administer this act.
12            (2)   Administer the program.
13            (3)   Act as a liaison between private businesses and
14      applicable agencies to identify State laws, regulations,
15      rules and guidances that could potentially be waived or
16      suspended under the program.
17      (d)   Discretionary powers.--The office may:
18            (1)   Review State laws and regulations that may inhibit
19      the creation and success of companies or industries and
20      provide recommendations to the Governor and the General
21      Assembly.
22            (2)   Enter into reciprocity agreements with Federal,
23      State or foreign regulators to advance the purpose of the
24      regulatory sandbox, which may include permission for any
25      sandbox participant to operate in other jurisdictions.
26            (3)   Promulgate regulations relating to:
27                  (i)    administering the regulatory sandbox, including
28            making the application process and the reporting
29            requirements of sandbox participants; and
30                  (ii)    cooperating and consulting with other agencies

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 1            in the Commonwealth that administer the program.
 2   Section 4.     Advisory committee.
 3      (a)   Establishment.--The Regulatory Sandbox Program Advisory
 4   Committee is established.
 5      (b)   Membership.--The advisory committee shall have the
 6   following members, who need not be residents of this
 7   Commonwealth:
 8            (1)   Two members appointed by the director who represent
 9      business interests and are selected from a variety of
10      industry clusters.
11            (2)   Three members appointed by the President pro tempore
12      of the Senate, two of whom represent business interests and
13      are selected from a variety of industry clusters and one of
14      whom is a member of the Senate.
15            (3)   Three members appointed by the Speaker of the House
16      of Representatives, two of whom represent business interests
17      and are selected from a variety of industry clusters and one
18      of whom is a member of the House of Representatives.
19      (c)   Terms.--
20            (1)   Subject to paragraph (2), members of the advisory
21      committee who are appointed under subsection (b)(1) shall
22      have a four-year term.
23            (2)   Notwithstanding paragraph (1), the director may
24      adjust the length of terms of appointments and reappointments
25      to the advisory committee so that approximately half of the
26      advisory committee is appointed every two years.
27      (d)   Chair.--The director shall select a chair of the
28   advisory committee on an annual basis.
29      (e)   Quorum.--A majority of the advisory committee
30   constitutes a quorum for the purpose of conducting advisory

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 1   committee business. The action of the majority of a quorum shall
 2   constitute the action of the advisory committee.
 3      (f)   Advice and recommendations.--The advisory committee
 4   shall advise and make recommendations to the office as described
 5   in this act.
 6      (g)   Staff.--The office shall provide administrative staff
 7   support for the advisory committee.
 8      (h)   Compensation.--A member may not receive compensation or
 9   benefits for the member's service, but members appointed under
10   subsection (b)(1) may receive per diem and travel expenses in
11   accordance with the rules of the Executive Board.
12      (i)   Override of applicable agency disapproval.--The advisory
13   committee may, by a two-thirds vote, override the decision of an
14   applicable agency to reject an application under section 5(h)
15   (7).
16   Section 5.     Regulatory Sandbox Program.
17      (a)   Establishment.--The Regulatory Sandbox Program is
18   established in the office.
19      (b)   Administration of program.--The office shall administer
20   the program by:
21            (1)   Consulting with each applicable agency.
22            (2)   Assisting persons with the application and approval
23      process for participation in the regulatory sandbox.
24            (3)   Entering into agreements with or adopting the best
25      practices of corresponding Federal regulatory agencies or
26      other states that are administering similar programs.
27            (4)   Consulting with businesses in this Commonwealth
28      about existing or potential proposals for the regulatory
29      sandbox.
30      (c)   Consultation.--

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 1            (1)   An applicant for a regulatory sandbox may contact
 2      the office to request a consultation regarding the regulatory
 3      sandbox before submitting an application.
 4            (2)   The office may provide assistance to the applicant
 5      in preparing an application for submission.
 6      (d)   Application.--An applicant for the regulatory sandbox
 7   shall provide to the office an application, on a form prescribed
 8   by the office, that:
 9            (1)   Confirms the applicant has established a presence in
10      this Commonwealth, from which the demonstration of an
11      offering will be developed and performed, and where all
12      required records, documents and data will be maintained.
13            (2)   Contains relevant personal and contact information
14      for the applicant, including legal names, addresses,
15      telephone numbers, email addresses, website addresses and
16      other information required by the office.
17            (3)   Discloses any criminal convictions of the applicant
18      or other participating personnel that occurred within the
19      previous five years.
20            (4)   Contains a description of the offering to be
21      demonstrated, including statements regarding:
22                  (i)    how the offering is subject to licensing, legal
23            prohibition or other authorization requirements outside
24            of the regulatory sandbox;
25                  (ii)    each law or regulation that the applicant seeks
26            to have waived or suspended while participating in the
27            program;
28                  (iii)    how the offering would benefit consumers;
29                  (iv)    how the offering is different from other
30            offerings available in this Commonwealth;

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 1                  (v)    what risks might exist for consumers who use or
 2            purchase the offering;
 3                  (vi)    how participating in the regulatory sandbox
 4            would enable a successful demonstration of the offering;
 5                  (vii)    a description of the proposed demonstration
 6            plan, including estimated time periods for beginning and
 7            ending the demonstration;
 8                  (viii)    recognition that the applicant will be
 9            subject to all laws and regulations pertaining to the
10            applicant's offering after conclusion of the
11            demonstration; and
12                  (ix)    how the applicant will end the demonstration
13            and protect consumers if the demonstration fails.
14            (5)   Lists any government agency that the applicant knows
15      regulates the applicant's business.
16            (6)   Provides other required information as determined by
17      the office.
18      (e)   Fees.--The office may collect an application fee of $50.
19   An applicant that is admitted into the program must pay a
20   participation fee of $450 to participate in the 24-month sandbox
21   period to cover reasonable agency expenses. Additional
22   participation fees may apply depending on factors such as the
23   size of an entity or the number of customers an entity may have,
24   but shall be capped at a reasonable amount to encourage
25   participation in the program. The office shall determine and
26   publish a fee schedule for the additional participation fees.
27      (f)   Separate applications.--An applicant must file a
28   separate application for each offering that the applicant wishes
29   to demonstrate.
30      (g)   Duties of office.--After an application is filed with

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 1   the office, the office shall:
 2            (1)   Determine whether any part of the application
 3      satisfies the exceptions under section 708(b)(1)(ii) of the
 4      act of February 14, 2008 (P.L.6, No.3), known as the Right-
 5      to-Know Law.
 6            (2)   Consult with each applicable agency that regulates
 7      the applicant's proposed offering regarding whether more
 8      information is needed from the applicant.
 9            (3)   Seek additional information from the applicant that
10      the office determines is necessary.
11            (4)   No later than five business days after the
12      application is received by the office:
13                  (i)    Review the application and refer the application
14            to each applicable agency that regulates the applicant's
15            proposed offering.
16                  (ii)    Provide the applicant:
17                         (A)   An acknowledgment of receipt of the
18                  application.
19                         (B)   The identity and contact information of each
20                  regulatory agency to which the applicant has been
21                  referred for review.
22                         (C)   Public notice, on the office's publicly
23                  accessible Internet website and through other
24                  appropriate means, of each law or regulation that the
25                  applicant seeks to suspend or waive under the
26                  application.
27      (h)   Duties of applicable agencies.--
28            (1)   Subject to paragraphs (3) and (7), no later than 30
29      days after the day on which an applicable agency receives a
30      complete application for review, the applicable agency shall

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 1    provide a written report to the director of the applicable
 2    agency's findings.
 3        (2)   The report shall:
 4              (i)    Describe any identifiable, likely and
 5        significant harm to the health, safety or financial well-
 6        being of consumers that the relevant law or regulation
 7        protects against.
 8              (ii)    Make a recommendation to the office that the
 9        applicant either be admitted or denied entrance into the
10        regulatory sandbox.
11        (3)   The applicable agency may request an additional five
12    business days to deliver the written report by providing
13    notice to the director, which request shall automatically be
14    granted. The applicable agency may only request one extension
15    per application.
16        (4)   If the applicable agency recommends an applicant
17    under this subsection be denied entrance into the regulatory
18    sandbox, the written report shall include a description of
19    the reasons for the recommendation, including why a temporary
20    waiver or suspension of the relevant law or regulations would
21    potentially significantly harm the health, safety or
22    financial well-being of consumers or the public and the
23    likelihood of the harm occurring.
24        (5)   If the agency determines that the consumer's or
25    public's health, safety or financial well-being can be
26    protected through less restrictive means than the existing
27    relevant law or regulations, the applicable agency shall
28    provide a recommendation of how that can be achieved.
29        (6)   If an applicable agency fails to deliver a written
30    report as described in this subsection, the director shall

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 1    assume that the applicable agency does not object to the
 2    temporary waiver or suspension of the relevant law or
 3    regulations for an applicant seeking to participate in the
 4    regulatory sandbox, and the application shall be deemed
 5    approved.
 6          (7)   Notwithstanding any other provision of this section,
 7    an applicable agency may, by written notice to the office
 8    within the 30 days after the applicable agency receives a
 9    complete application for review or within 35 days, if an
10    extension has been requested by the applicable agency,
11    recommend that the office reject an application if the
12    applicable agency determines, in the applicable agency's sole
13    discretion, that the applicant's offering fails to comply
14    with standards or specifications:
15                (i)    required by Federal law or regulation; or
16                (ii)    previously approved for use by a Federal
17          agency.
18          (8)   If an applicable agency recommends that the office
19    reject an application under paragraph (7), the office may not
20    approve the application. The rejection may be overridden by
21    the advisory committee as provided in section 4(i).
22          (9)   An applicable agency shall cooperate with the office
23    to identify regulations that need to be waived.
24    (i)   Review by advisory committee.--
25          (1)   Upon receiving a written report described in
26    subsection (h), the director shall provide the application
27    and the written report to the advisory committee.
28          (2)   The director may call the advisory committee to meet
29    as needed, but not less than once per quarter if applications
30    are available for review.

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 1           (3)   After receiving and reviewing the application and
 2    written report, the advisory committee shall provide to the
 3    director the advisory committee's recommendation as to
 4    whether or not the applicant should be admitted as a sandbox
 5    participant under this act.
 6           (4)   As part of the advisory committee's review of each
 7    written report, the advisory committee shall use the criteria
 8    required for an applicable agency as described in subsection
 9    (h).
10    (j)    Office consultations.--
11           (1)   In reviewing an application and each applicable
12    agency's report and recommendation, the office shall consult
13    with each applicable agency and the advisory committee before
14    admitting an applicant into the regulatory sandbox.
15           (2)   The consultation with each applicable agency and the
16    consultation with the advisory committee may include seeking
17    information about whether:
18                 (i)    The applicable agency has previously issued a
19           license or other authorization to the applicant.
20                 (ii)    The applicable agency has previously
21           investigated, sanctioned or pursued legal action against
22           the applicant.
23    (k)    Factors to be considered.--
24           (1)   In reviewing an application under this section, the
25    office and applicable agency shall consider whether a
26    competitor to the applicant is or has been a sandbox
27    participant and, if so, weigh that as a factor in favor of
28    allowing the applicant to also become a sandbox participant.
29           (2)   In reviewing an application under this section, the
30    office shall consider, in addition to the factor in paragraph

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 1    (1), whether:
 2                (i)    The applicant's plan will adequately protect
 3          consumers from potential harm identified by an applicable
 4          agency in the applicable agency's written report.
 5                (ii)    The risk of harm to consumers is outweighed by
 6          the potential benefits to consumers from the applicant's
 7          participation in the regulatory sandbox.
 8                (iii)    A waiver or suspension of State law or
 9          regulations that regulate an offering should not be
10          waived or suspended even if the applicant is approved as
11          a sandbox participant, including applicable antifraud or
12          disclosure provisions.
13    (l)   Sandbox participation.--
14          (1)   An applicant becomes a sandbox participant if the
15    office approves the application for the regulatory sandbox
16    and enters into a written agreement with the applicant
17    describing the specific law and regulations that are waived
18    or suspended as part of participation in the regulatory
19    sandbox.
20          (2)   Notwithstanding any other provision of this act, the
21    office may not enter into a written agreement with an
22    applicant that waives or suspends a tax, fee or charge that
23    is administered by the Department of Revenue.
24    (m)   Denial of application.--
25          (1)   The denial of an application submitted under this
26    section is subject to review by the advisory committee. The
27    advisory committee shall complete the review within 30 days
28    and may override the denial by a two-thirds vote. There shall
29    be no judicial review of the advisory committee decision.
30          (2)   The office shall deny an application for

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 1    participation in the regulatory sandbox described in this
 2    section if the applicant or another person who seeks to
 3    participate with the applicant in demonstrating an offering
 4    has been convicted, entered a plea of nolo contendere or
 5    entered a plea of guilty or nolo contendere held in abeyance,
 6    for a crime involving significant theft, fraud or dishonesty
 7    that bears a significant relationship to the applicant's or
 8    other participant's ability to safely and competently
 9    participate in the program.
10    (n)   Public notice.--
11          (1)   When an applicant is approved for participation in
12    the regulatory sandbox, the office shall provide public
13    notice of the approval on the office's publicly accessible
14    Internet website and through other appropriate means.
15          (2)   The public notice shall state:
16                (i)    The name of the sandbox participant.
17                (ii)    The industries the sandbox participant
18          represents.
19                (iii)    Each law or regulation that is suspended or
20          waived for the sandbox participant as allowed by the
21          regulatory sandbox.
22          (3)   In addition to the information described in
23    paragraph (2), the following information shall be made
24    available on the office's publicly accessible Internet
25    website and through other appropriate means:
26                (i)    Documentation regarding the office's
27          determination and grounds for approving each sandbox
28          participant.
29                (ii)    Public notice regarding any sandbox
30          participant's revocation to participate in the regulatory

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 1            sandbox.
 2      (o)   Effect of criminal convictions.--A criminal conviction
 3   may be weighed in the application process, but shall not be a
 4   barrier to participation in the regulatory sandbox, except as
 5   specified in subsection (m)(2).
 6   Section 6.     Effect of application approval.
 7      (a)   General rule.--If the office approves an application
 8   under this act, the sandbox participant has 24 months after the
 9   day on which the application was approved to demonstrate the
10   offering described in the sandbox participant's application.
11      (b)   Conditions.--An offering that is demonstrated within the
12   regulatory sandbox is subject to the following conditions:
13            (1)   Each consumer must be a resident of this
14      Commonwealth, except as permitted under reciprocal agreements
15      established under section 3(d)(2).
16            (2)   No law or regulation may be waived or suspended if
17      the waiver or suspension would prevent a consumer from
18      seeking restitution in the event that the consumer is harmed
19      by the waiver or suspension.
20      (c)   Construction.--
21            (1)   Nothing in this section shall be construed to
22      restrict a sandbox participant who holds a license or other
23      authorization in another jurisdiction from acting in
24      accordance with that license or other authorization.
25            (2)   A sandbox participant is deemed to possess an
26      appropriate license or other authorization under State law
27      for the purpose of any provision of Federal law requiring
28      licensure or other authorization by the Commonwealth.
29      (d)   Applicability of enforcement law.--
30            (1)   During the demonstration period, a sandbox

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 1      participant is not subject to the enforcement of State law or
 2      regulations identified in the written agreement between the
 3      office and the sandbox participant.
 4            (2)   A prosecutor may not file or pursue charges against
 5      a sandbox participant for failure to comply with a law or
 6      regulation identified in the written agreement between the
 7      office and the sandbox participant that occurs during the
 8      demonstration period.
 9            (3)   A State agency may not file or pursue any punitive
10      action against a sandbox participant, including a fine or
11      license suspension or revocation, for the violation of a law
12      or regulation that:
13                  (i)    is identified as being waived or suspended in
14            the written agreement between the office and the sandbox
15            participant; and
16                  (ii)    occurs during the demonstration period.
17      (e)   Criminal liability.--Notwithstanding subsection (d):
18            (1)   A sandbox participant does not have immunity related
19      to a violation under 18 Pa.C.S. (relating to crimes and
20      offenses) committed during the sandbox participant's
21      participation in the regulatory sandbox.
22            (2)   A sandbox participant that provides an offering
23      shall comply with all applicable Federal law and regulations
24      governing consumer protection.
25      (f)   Termination.--By written notice, the office may
26   terminate a sandbox participant's participation in the
27   regulatory sandbox at any time and for any reason that the
28   sandbox participant is not operating in good faith to bring an
29   offering to market.
30      (g)   No liability for office.--The office and the office's

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 1   employees are not liable for any business loss or the recouping
 2   of an application expense or other expense related to the
 3   regulatory sandbox, including for:
 4            (1)   denying an applicant's application to participate in
 5      the regulatory sandbox for any reason; or
 6            (2)   ending a sandbox participant's participation in the
 7      regulatory sandbox at any time and for any reason.
 8   Section 7.     Annual report.
 9      The director shall prepare and submit an annual report to the
10   General Assembly relating to the office. The report shall
11   include:
12            (1)   information regarding each participant in the
13      regulatory sandbox, including which industries each
14      participant represents and the anticipated or actual cost
15      savings that each participant experienced;
16            (2)   recommendations regarding any law or regulation that
17      should be permanently modified;
18            (3)   information regarding outcomes for consumers; and
19            (4)   recommendations for changes to the program or other
20      duties of the office.
21   Section 8.     Consumer protection.
22      (a)     Duty of sandbox participants.--Before demonstrating an
23   offering to a consumer, a sandbox participant shall disclose the
24   following to the consumer:
25            (1)   The name and contact information of the sandbox
26      participant.
27            (2)   That the offering is authorized under the regulatory
28      sandbox and, if applicable, that the sandbox participant does
29      not have a license or other authorization to provide an
30      offering under State law that regulates offerings outside of

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 1      the regulatory sandbox.
 2            (3)   That the offering is undergoing testing and may not
 3      function as intended and may expose the consumer to certain
 4      risks as identified by the applicable agency's written
 5      report.
 6            (4)   That the provider of the offering is not immune from
 7      civil liability for any loss or damages caused by the
 8      offering.
 9            (5)   That the provider of the offering is not immune from
10      criminal prosecution for violations of State law or
11      regulations that are not suspended or waived as allowed by
12      the regulatory sandbox.
13            (6)   That the offering is a temporary demonstration that
14      may be discontinued at the end of the demonstration period.
15            (7)   The expected end date of the demonstration period.
16            (8)   That the consumer may contact the office and file a
17      complaint regarding the offering being demonstrated.
18            (9)   The office's telephone number and publicly
19      accessible Internet website address where a complaint may be
20      filed.
21      (b)   Form of disclosure.--The disclosure required by
22   subsection (a) shall be provided to a consumer in a clear and
23   conspicuous form and, for an Internet or application-based
24   offering, a consumer must acknowledge receipt of the disclosure
25   before any transaction may be completed.
26      (c)   Additional disclosures.--The office may require that a
27   sandbox participant make disclosures to a consumer in addition
28   to the disclosure described in subsection (a).
29   Section 9.     Requirements for exiting regulatory sandbox.
30      (a)   Duties of sandbox participants.--At least 30 days before

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 1   the end of the 24-month regulatory sandbox demonstration period,
 2   a sandbox participant shall:
 3            (1)   notify the office that the sandbox participant will
 4      exit the regulatory sandbox and discontinue the sandbox
 5      participant's demonstration after the day on which the 24-
 6      month demonstration period ends; or
 7            (2)   seek an extension in accordance with section 10.
 8      (b)   End of demonstration period.--Subject to subsection (c),
 9   if the office does not receive notification as required by
10   subsection (a), the regulatory sandbox demonstration period ends
11   at the end of the 24-month testing period.
12      (c)   Ongoing duties.--If a demonstration includes an offering
13   that requires ongoing duties, the sandbox participant may
14   continue to do so, but will be subject to enforcement of the law
15   or regulations that were waived or suspended as part of the
16   regulatory sandbox.
17   Section 10.    Extensions.
18      (a)   Request for extension.--Not later than 30 days before
19   the end of the 24-month regulatory sandbox demonstration period,
20   a sandbox participant may request an extension of the regulatory
21   sandbox demonstration period.
22      (b)   Time period.--
23            (1)   The office shall grant or deny a request for an
24      extension by the end of the 24-month regulatory sandbox
25      testing period.
26            (2)   The office may grant an extension in accordance with
27      this section for not more than 12 months after the end of the
28      regulatory sandbox demonstration period.
29   Section 11.    Recordkeeping and reporting requirements.
30      (a)   Duty of sandbox participants.--A sandbox participant

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 1   shall retain records, documents and data produced in the
 2   ordinary course of business regarding an offering demonstrated
 3   in the regulatory sandbox.
 4      (b)    Notice to office and applicable agencies.--If a sandbox
 5   participant ceases to provide an offering before the end of a
 6   demonstration period, the sandbox participant shall notify the
 7   office and each applicable agency and report on actions taken by
 8   the sandbox participant to ensure that consumers have not been
 9   harmed as a result.
10      (c)    Quarterly reports.--The office shall establish quarterly
11   reporting requirements for a sandbox participant, including
12   information about any consumer complaints.
13      (d)    Inspection of records.--The office may request records,
14   documents and data from a sandbox participant and, at the
15   office's request, the sandbox participant shall make the
16   records, documents and data available for inspection by the
17   office.
18      (e)    Notice of incidents.--
19             (1)   The sandbox participant shall notify the office and
20      each applicable agency of an incident that results in harm to
21      the health, safety or financial well-being of a consumer.
22             (2)   If the sandbox participant fails to notify the
23      office and each applicable agency of an incident, or the
24      office or an applicable agency has evidence that significant
25      harm to a consumer has occurred, the office may immediately
26      remove the sandbox participant from the regulatory sandbox.
27      (f)    Post-participation report.--
28             (1)   No later than 30 days after the day on which a
29      sandbox participant exits the regulatory sandbox, the sandbox
30      participant shall submit a written report to the office and

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 1      each applicable agency describing an overview of the sandbox
 2      participant's demonstration, including any:
 3                  (i)    incident of harm to consumers;
 4                  (ii)    legal action filed against the participant as a
 5            result of the participant's demonstration;
 6                  (iii)    complaint filed with an applicable agency as a
 7            result of the participant's demonstration; and
 8                  (iv)    statutory or regulatory reform the sandbox
 9            participant recommends as a result of the demonstration.
10            (2)   No later than 30 days after an applicable agency
11      receives the quarterly reporting described in subsection (c)
12      or a written report from a sandbox participant as described
13      in subsection (e)(1), the applicable agency shall provide a
14      written report to the office on the demonstration that
15      describes any statutory or regulatory reform the applicable
16      agency recommends as a result of the demonstration.
17   Section 12.     Regulatory relief web page.
18      (a)   Duty of office.--The office shall create and maintain on
19   its publicly accessible Internet website a web page that invites
20   residents and businesses in this Commonwealth to make
21   suggestions regarding law and regulations that could be modified
22   or eliminated to reduce the regulatory burden of residents and
23   businesses in this Commonwealth.
24      (b)   Quarterly compilation.--
25            (1)   On at least a quarterly basis, the office shall
26      compile the results of suggestions from the web page and
27      provide a written report to the Governor and the General
28      Assembly that describes the most common suggestions.
29            (2)   In creating the report described in paragraph (1),
30      the office and the advisory committee:

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 1                 (i)    shall ensure that private information of
 2          residents and businesses that make suggestions on the web
 3          page is not made public; and
 4                 (ii)    may evaluate the suggestions and provide
 5          analysis and suggestions regarding which law and
 6          regulations could be modified or eliminated to reduce the
 7          regulatory burden of residents and businesses in the
 8          State while still protecting consumers.
 9   Section 13.    Effective date.
10      This act shall take effect in 60 days.




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