2018
Illinois
HB 5139
Passed House 4/27/18
Creates the Regulatory Sandbox Act. Creates the regulatory sandbox to enable persons to obtain limited access to the Illinois marketplace in order to test innovations in financial products or services. Provides requirements for approval to enter the regulatory sandbox, the application fee, and approval or denial time. Provides requirements for operating an innovation in the regulatory sandbox and extending a test period. Contains provisions regarding rules and judicial review of the administration of this Act. Makes conforming changes in the State Finance Act. Provides that nothing in the Act shall be construed to limit the remedies provided under the Code of Civil Procedure.
SB 3133
Creates the Regulatory Sandbox Act. Creates the regulatory sandbox to enable persons to obtain limited access to the Illinois marketplace in order to test innovations in financial products or services. Provides requirements for approval to enter the regulatory sandbox, the application fee, and approval or denial time. Provides requirements for operating an innovation in the regulatory sandbox and extending a test period. Contains provisions regarding rules and judicial review of the administration of this Act. Makes conforming changes in the State Finance Act.
Maryland
HB 1634
Signed by governor 5/15/18, Chapter 731
SB 1068
Signed by governor 5/15/18, Chapter 732
Provides that unfair, abusive, or deceptive trade practices include violations of the federal Military Lending Act or the federal Servicemembers Civil Relief Act; alters civil penalties for violations of the Maryland Consumer Protection Act or State financial laws and provisions regarding collection agencies, mortgage lenders, mortgage loan originators, check cashers, money transmitters, and debt management services; prohibits a collector from engaging in unlicensed debt collection activity. Requires the commissioner of Financial Regulation in the Department of Labor, Licensing, and Regulation to conduct a study to assess whether the commissioner has enough statutory authority to regulate “Fintech firms” or technology–driven nonbank companies who compete with traditional methods in the delivery of financial services.
Massachusetts
SB 519
Promotes emerging financial technologies.
New York
SB 9188
Enacts the "regulatory sandbox act" to allow persons to obtain limited access to the marketplace in order to test innovations in financial products or services; provides requirements for application and approval; provides requirements for operating an innovation in the regulatory sandbox.
Vermont
HB 765
This bill proposes to implement strategies relating to blockchain, cryptocurrency, and financial technology in order to: promote regulatory efficiency; enable business organizational and governance structures that may expand opportunities in financial technology; and promote education and adoption of financial technology in the public and private sectors.
LexisNexis Terms and Conditions
2019
Arizona
HB 2177
Signed by governor 4/1/19, Chapter 45
Makes revisions to statute governing the Regulatory Sandbox Program. Clarifies a person who holds a license for a regulated financial product or service must file an application for innovations outside of the scope of such license. Allows the Program application to include how the applicant will employ cybersecurity measures to avoid breaches and protect consumer and transaction data. Specifies money transmitters may only be required to have a physical presence in the state at the time of the transaction, rather than be an Arizona resident. Removes the requirement for Program participants of investment management innovations to maintain and preserve books and records in accordance with federal law and certain filing requirements with the Arizona Corporation Commission. Clarifies Program participants are not subject to agency licensing requirements that would or may regulate the innovation. Specifies the attorney general alone enforces the state regulatory laws applicable to Program participants. Clarifies Program participants may obtain, record, provide, or maintain any information, record, or disclosure in electronic form. Allows Program participants to request an increase in the cap on consumer testers. Requires the attorney general to approve or deny the request within 30 days. Asserts the denial is not an appealable agency action. Modifies the following definitions: applicable agency, consumer, financial product or service, innovation, regulatory sandbox, and sandbox participant. Makes technical and conforming changes.
HB 2673
Signed by governor 3/20/19, Chapter 9
Enables the Arizona Commerce Authority’s chief executive officer (CFO) to establish the Property Technology Sandbox Program in direct consultation with the Department of Administration (ADOA), the State Real Estate Department and applicable agencies to permit a person limited access to the Arizona market to test innovative property products or services without prior required authorization.
Connecticut
HB 7078
The bill requires the Banking commissioner to study the impact of financial technology companies in the state.
Illinois
HB 2825
Creates the Regulatory Sandbox Act. Creates the regulatory sandbox to enable persons to obtain limited access to the Illinois marketplace in order to test innovations in financial products or services. Provides requirements for approval to enter the regulatory sandbox, the application fee, and approval or denial time. Provides requirements for operating an innovation in the regulatory sandbox and extending a test period. Contains provisions regarding rules and judicial review of the administration of this Act. Makes conforming changes in the State Finance Act.
Kentucky
HB 386
Signed by governor 3/26/19, Act 147
Creates new sections of Subtitle 3 of KRS Chapter 304 to define terms, including "beta test,"; "exclusivity period"; "insurance innovation"; "limited no-action letter" "permanent no-action letter," and "regulatory sandbox"; creates an application process for admitting companies to the regulatory sandbox for the purpose of permitting the company to beta test an insurance innovation under a limited no-action letter; imposes certain disclosure and financial stability requirements for companies making an application; establishes a director of insurance innovation within the Department of Insurance; establishes procedures and requirements for the review and acceptance of applications; grants the commissioner authority to modify, increase, or change certain application requirements; grants the commissioner authority to reject applications; allows companies to file a petition for reconsideration and request a hearing upon rejection of an application; establishes requirements for issuing a limited no-action letter; establishes how long the safe harbor of a limited no-action letter persists; sets time period for a beta test at 1 year; allows a beta test to be extended for up to 1 year; establishes requirements for a beta test; establishes company's rights during a beta test; authorizes the commissioner to issue certain orders to enforce the terms and conditions of a beta test; establishes requirements for an exclusivity period; authorizes the commissioner to issue an order terminating the exclusivity period; establishes a cause of action for infringement of exclusivity period; establishes reporting requirements for evaluation of beta test by the commissioner; establishes requirements for issuance of a permanent no-action letter by the commissioner; establishes that certain documents relating to the financial condition of a company are confidential and not subject to public disclosure pursuant to the Kentucky Open Records Act; establishes certain disclosure rights of the commissioner; requires the commissioner to submit reports relating to the administration of Sections 1 to 9 of this Act.
Massachusetts
HB 1012
Creates a special task force relative to financial technology operations and current bank charter regulations in the commonwealth.
Nebraska
LR 94
The purpose of this interim study is to examine issues surrounding regulatory sandboxes.
Nevada
SB 161
Signed by governor 6/13/19, Chapter 611
Requires the director of the Department of Business and Industry to establish and administer the Regulatory Experimentation Program for Product Innovation; sets forth the requirements for the operation of the Program; provides for a temporary exemption from certain statutory and regulatory requirements related to financial products and services for a participant in the Program under certain circumstances; requires the director to submit to the Legislature an annual report on the Program; revises provisions relating to persons who make loans exclusively via the internet; and provides other matters properly relating thereto.
New York
AB 2213
Relates to financial technology products and services; establishes a regulatory sandbox program.
North Carolina
HB 1013
Enacts the North Carolina Financial and Insurance Regulatory Sandbox Act and establishes the North Carolina Financial and Insurance Innovation Commission.
South Carolina
HB 4351
Enacts the "South Carolina Blockchain Industry Empowerment Act of 2019" in order to establish this state as an incubator for tech industries seeking to develop innovation by using blockchain technology; adds §33-6-245 so as to further provide for the construction of terms relating to stock and certificate tokens; amends §33-6-250, relating to the form and content of corporate stock certificates, so as to authorize corporations to issue certificate tokens in lieu of stock certificates; adds chapter 47 to title 34 so as to provide that a person who develops, sells, or facilitates the exchange of an open blockchain token is not subject to specified securities and money transmission laws, and to provide specified verification authority to the secretary of state and banking commissioner; adds chapter 49 to title 34 so as to create the financial technology sandbox for the testing of financial products and services in South Carolina; authorizes limited waivers of specified provisions of law under certain conditions; establishes standards and procedures for sandbox applications, operations, and supervision; authorizes reciprocity agreements with other regulators; requires criminal history background checks; requires the creation of financial technology innovation accounts to be used for special purposes; requires a consumer protection bond; and specifies standards for the suspension and revocation of a sandbox authorization; adds chapter 51 to title 34 so as to specify that digital assets are property within the uniform commercial code, authorizes security interests in digital assets, establishes an opt-in framework for banks to provide custodial services for digital asset property as custodians, specifies standards and procedures for custodial services, clarifies the jurisdiction of South Carolina courts relating to digital assets, authorizes a supervision fee, and provides for other related provisions to digital assets; amends §35-11-105, relating to definitions under the South Carolina anti-money laundering act, so as to define the term "virtual currency"; and amends §35-11-110, relating to matters and transactions to which the anti-money laundering act does not apply, so as to provide that the act does not apply to buying, selling, issuing, or taking custody of payment instruments or stored value in the form of virtual currency or receiving virtual currency for transmission to a location within or outside the united states by any means.
SB 738
Enacts the "South Carolina Blockchain Industry Empowerment Act of 2019", to establish this state as an incubator for technology industries seeking to develop innovation by using blockchain technology; amends article 2, chapter 6, title 33 of the 1976 code, relating to the issuance of shares for corporations, partnerships, and associations, adds §33-6-245 to provide for the construction of terms relating to stock and certificate tokens; amends §33-6-250 of the 1976 code, relating to the form and content of corporate stock certificates, authorizes corporations to issue certificate tokens in lieu of stock certificates; amends title 34 of the 1976 code, relating to banking, financial institutions, and money, by adding chapter 47, to provide that a person who develops, sells, or facilitates the exchange of an open blockchain token is not subject to specified securities and money transmission laws, and to provide specified verification authority to the secretary of state and banking commissioner; amends title 34 of the 1976 code, relating to banking, financial institutions, and money, by adding chapter 49, to create the financial technology sandbox for the testing of financial products and services in South Carolina, to authorize limited waivers of specified provisions of law under certain conditions, to establish standards and procedures for sandbox applications, operations, and supervision, to authorize reciprocity agreements with other regulators, to require criminal history background checks, to require the creation of financial technology innovation accounts to be used for special purposes, to require a consumer protection bond, and to specify standards for the suspension and revocation of a sandbox authorization; amends title 34 of the 1976 code, relating to banking, financial institutions, and money, by adding chapter 51, to specify that digital assets are property within the uniform commercial code, to authorize security interests in digital assets, to establish an opt-in framework for banks to provide custodial services for digital asset property as custodians, to specify standards and procedures for custodial services, to clarify the jurisdiction of South Carolina courts relating to digital assets, to authorize a supervision fee, and to provide for other related provisions for digital assets; amends §35-11-110 of the 1976 code, relating to the applicability of the anti-money laundering act, to provide that the anti-money laundering act does not apply to the buying, selling, issuing, or taking custody of payment instruments or stored value in the form of virtual currency or receiving virtual currency for transmission to a location within or outside the united states by any means; and to define necessary terms.
Texas
SB 860
Relates to the creation of a regulatory sandbox program administered by the attorney general for certain financial products and services; authorizes a fee.
Utah
HB 378
Signed by governor 3/25/19, Chapter 243
This bill: defines terms; creates a regulatory sandbox program in the Department of Commerce, which allows a participant to temporarily test innovative financial products or services on a limited basis without otherwise being licensed or authorized to act under the laws of the state; describes who may participate in the program; describes how the Department of Commerce shall administer the program; and describes reporting requirements for participants in the program and for the Department of Commerce.
Vermont
SB 131
Signed by governor 6/10/19, Act 57
This act makes changes to Vermont law as it pertains to the regulation of insurance companies. For example, it gives the commissioner of Financial Regulation authority to grant innovation waivers to insurance products and services that otherwise would be prohibited under Vermont law; it specifies that the capital and surplus requirements of foreign and alien insurance companies are for the benefit of Vermonters; it permits “domestic surplus lines insurers” to offer and sell surplus lines insurance to Vermonters; it establishes a 3% premium tax on all surplus lines insurance regardless of where the risk is located; and it makes HIV testing requirements applicable to life insurance policies consistent with federal standards. In addition, with respect to securities law, it exempts from paying a filing fee persons who file a registration statement in connection with the New England Crowdfunding Initiative, and it establishes a new special fund, the Vermont Financial Services Education and Victim Restitution Fund, for the purpose of carrying out the goals of the existing Financial Services Education and Training Special Fund (which the act repeals), as well as funding restitution awards to victims of securities fraud.
West Virginia
SB 583
Adds a new article, designated §31A-9-1, §31A-9-2, §31A-9-3, §31A-9-4, §31A-9-5, §31A-9-6, §31A-9-7, 2 §31A-9-8, and §31A-9-9, all relating to creating the Financial Technology Sandbox Act and program for the testing of financial products and services; defines terms; authorizes waivers of certain statutes and rules covering the regulation of financial products and services offered to consumers in this state; provides for service of process; specifies responsibilities and authority of commissioner of Financial Institutions; establishes standards and procedures related to applicants and applications for participation in the program; requires application fee and reimbursement of costs incurred by Division for Financial Institutions; sets forth requirements concerning criminal history background checks and considerations regarding participation in the program; requires posting of bond; creates the Financial Technology Innovation Account; specifies limits of program and standards for the suspension and revocation of an applicant’s authorization under the program; requires written statement of disclosures to consumers; requires retention of certain records and exempts them from Freedom of Information Act; authorizes reciprocity agreements with other regulators; permits potential extension of the program; authorizes rulemaking and orders; and permits the creation of a new unit under the Division of Financial Institutions with staff for administration of the program.
Wyoming
HB 57
Signed by governor 2/19/19, Chapter 61
Relates to trade and commerce; makes legislative findings; creates the financial technology sandbox for the testing of financial products and services; authorizes limited waivers of specified statutes and rules under certain conditions; establishes standards and procedures for sandbox applications, operations and supervision; authorizes reciprocity agreements with other regulators; requires criminal history background checks; creates an account; requires a consumer protection bond.
LexisNexis Terms and Conditions