KRS § 15.272 — KY Code / Title III / Chapter 15 / Section 15.272
15.272 Written report by agency -- Advisory committee review -- Consultation by regulatory relief office -- Review of application -- Written agreement
Status: in_force

15.272 Written report by agency -- Advisory committee review -- Consultation by

regulatory relief office -- Review of application -- Written agreement.

(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.

(b) The report shall:

1. Describe any identifiable, likely, and significant harm to the health,

safety, or financial well-being of consumers that the relevant

administrative regulation protects against; and

2. Make a recommendation to the regulatory relief office that the applicant

either be admitted or denied entrance into the regulatory sandbox.

(c) 1. The applicable agency may request an additional five (5) business days

to deliver the written report by providing notice to the director, and the

request shall automatically be granted.

2. The applicable agency may only request one (1) extension per

application.

(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-being of

consumers or the public and the likelihood of such harm occurring.

(e) If the 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 administrative regulations, then the applicable

agency shall provide a recommendation of how that can be achieved.

(f) If an applicable agency fails to deliver a written report as described in this

subsection, the director shall assume that the applicable agency does not

object to the temporary waiver or suspension of the relevant administrative

regulations for an applicant seeking to participate in the regulatory sandbox.

(g) Notwithstanding any other provision of this section, an applicable agency may

by written notice to the regulatory relief office:

1. Within the thirty (30) days after the day on which the applicable agency

receives a complete application for review, or within thirty-five (35)

days if an extension has been requested by the applicable agency, reject

an application 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 law or regulation; or

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

2. Reject an application preliminarily approved by the regulatory relief

office, if the applicable agency:

a. Recommends rejection of the application in accordance with

paragraph (d) of this subsection in the agency's written report; and

b. Provides in the written notice under this paragraph a description 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.

(h) If an applicable agency rejects an application under paragraph (g) of this

subsection, the regulatory relief office shall not approve the application.

(2) (a) Upon receiving a written report described in subsection (1) of this section, the

director shall provide the application and the written report to the advisory

committee.

(b) The director may call the advisory committee to meet as needed, but not less

than once per quarter if applications are available for review.

(c) After receiving and reviewing the application and each written report, the

advisory committee shall provide to the director the advisory committee's

recommendation as to whether the applicant may be admitted as a sandbox

participant under this section and KRS 15.268.

(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.

(3) (a) In reviewing an application and each applicable agency's written report, the

regulatory relief office shall consult with each applicable agency and the

advisory committee before admitting an applicant into the regulatory sandbox.

(b) The consultation with each applicable agency and the consultation with the

advisory committee may include seeking information about whether the

applicable agency has previously:

1. Issued a license or other authorization to the applicant; and

2. Investigated, sanctioned, or pursued legal action against the applicant.

(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.

(5) In reviewing an application under this section, the regulatory relief office shall

consider whether:

(a) The applicant's plan will adequately protect consumers from potential harm

identified by an applicable agency in the applicable agency's written report;

(b) The risk of harm to consumers is outweighed by the potential benefits to

consumers from the applicant's participation in the regulatory sandbox; and

(c) Certain administrative regulations that regulate an offering shall not be

waived or suspended even if the applicant is approved as a sandbox

participant, including applicable antifraud or disclosure provisions.

(6) (a) An applicant becomes a sandbox participant if the regulatory relief office

approves the application for the regulatory sandbox and enters into a written

agreement with the applicant describing the specific administrative

regulations that may be waived or suspended as part of participation in the

regulatory sandbox.

(b) Notwithstanding any other provision of KRS 15.262 to 15.278, the regulatory

relief office shall not enter into a written agreement with an applicant that

waives or suspends a tax, fee, or charge that is administered by the

Department of Revenue or that is described in KRS Chapters 131 to 144.

(c) Notwithstanding any other provision of KRS 15.262 to 15.278, the regulatory

relief office shall not enter into a written agreement with an applicant that

waives or suspends a requirement for licensure or regulation of a health

facility by the Cabinet for Health and Family Services pursuant to KRS

Chapter 216B.