H.F. 2349 Section 1. NEW SECTION . 15E.22 Regulatory relief office. 1 1. The economic development authority shall establish a 2 regulatory relief office under the control of the director of 3 the authority. 4 2. The regulatory relief office shall have the following 5 duties: 6 a. Administer the regulatory relief program as described in 7 section 15E.24. 8 b. Act as a liaison between private businesses and 9 applicable state agencies to identify state laws or regulations 10 that could potentially be waived or suspended under the 11 regulatory relief program. 12 3. The regulatory relief office may do any of the following: 13 a. Review state laws and regulations that may unnecessarily 14 inhibit the creation and success of new companies or industries 15 and provide recommendations to the governor and the general 16 assembly on modifying such state laws and regulations. 17 b. Create a framework for analyzing the risk level to 18 the health, safety, and financial well-being of consumers 19 related to permanently removing or temporarily waiving laws 20 and regulations inhibiting the creation or success of new and 21 existing companies or industries. 22 c. Propose potential reciprocity agreements between states 23 that use or are proposing to use similar regulatory relief 24 programs as described in this subchapter. 25 4. By October 1 of each year, the regulatory relief office 26 shall issue a written annual report on the activities of the 27 office, which report shall include all of the following: 28 a. Information regarding each participant in the regulatory 29 relief program, including which industries each participant 30 represents and the anticipated or actual cost savings that each 31 participant experienced. 32 b. Recommendations regarding any laws or regulations that 33 should be permanently modified. 34 c. Information regarding outcomes for consumers. 35 -1- LSB 5201YH (2) 89 ec/rn 1/ 10

H.F. 2349 d. Recommendations for changes to the regulatory relief 1 program or other duties of the regulatory relief office. 2 5. The economic development authority shall adopt 3 rules pursuant to chapter 17A as necessary for purposes of 4 establishing the office and implementing the requirements of 5 the regulatory relief program. 6 Sec. 2. NEW SECTION . 15E.23 Regulatory relief advisory 7 committee. 8 1. The authority shall establish a regulatory relief 9 advisory committee consisting of thirteen members, including 10 nine voting members and four ex officio nonvoting members. The 11 advisory committee shall be composed of all of the following: 12 a. Nine voting members, appointed by the director of the 13 authority, as follows: 14 (1) Six members who represent business interests. 15 (2) Three members who represent state agencies that 16 regulate businesses. 17 b. The nonvoting members of the committee shall be two state 18 representatives, one appointed by the speaker of the house of 19 representatives and one by the minority leader of the house of 20 representatives, and two state senators, one appointed by the 21 majority leader of the senate and one by the minority leader 22 of the senate. 23 2. The director of the economic development authority 24 shall, on an annual basis, designate the chairperson of 25 the advisory committee. Members of the advisory committee 26 appointed by the director shall serve four-year staggered terms 27 as determined by the director. 28 3. A majority of the voting members of the advisory 29 committee constitutes a quorum for the purpose of conducting 30 advisory committee business, and the action of the majority of 31 a quorum constitutes the action of the advisory committee. 32 4. The advisory committee shall advise and make 33 recommendations to the regulatory relief office concerning the 34 regulatory relief program as described in section 15E.24. 35 -2- LSB 5201YH (2) 89 ec/rn 2/ 10

H.F. 2349 Sec. 3. NEW SECTION . 15E.24 Regulatory relief program. 1 1. The regulatory review office shall establish a 2 regulatory relief program. The purpose of the regulatory 3 relief program is to enable a business to obtain legal 4 protections and limited access to the market in the state to 5 demonstrate an innovative offering without obtaining a license 6 or other authorization that might otherwise be required. 7 2. a. The regulatory review office shall establish a 8 process for purposes of receiving applications from businesses 9 to participate in the regulatory relief program. 10 b. The application shall include a description of the 11 innovative offering to be demonstrated by the participant, to 12 include all of the following information: 13 (1) Statements from the applicant on how the offering is 14 subject to licensing, legal prohibition, or other authorization 15 requirements. 16 (2) Identification of each law or regulation that the 17 applicant seeks to have waived or suspended while participating 18 in the regulatory relief program. 19 (3) How the innovative offering would benefit consumers. 20 (4) What risks might exist for consumers who use or purchase 21 the offering. 22 (5) How participating in the regulatory relief program 23 would enable a successful demonstration of the offering. 24 (6) A description of the proposed demonstration plan for the 25 offering, including estimated time periods for beginning and 26 ending the demonstration. 27 (7) How the applicant will end the demonstration and protect 28 consumers if the demonstration fails. 29 (8) A list of each state agency, if any, that the applicant 30 knows regulates the applicant’s business relative to the 31 offering. 32 (9) Discloses criminal convictions of the applicant or 33 any person who seeks to participate with the applicant in 34 demonstrating an offering. 35 -3- LSB 5201YH (2) 89 ec/rn 3/ 10

H.F. 2349 (10) Such other information as the regulatory review office 1 requires. 2 3. Upon receipt of an application to participate in the 3 regulatory relief program, the regulatory relief office shall 4 acknowledge receipt of the application, forward information 5 in the application to affected state agencies for review, and 6 notify the applicant which state agencies will review the 7 application. 8 4. Each state agency in receipt of an application to 9 participate in the regulatory relief program shall, in a timely 10 fashion, submit a written report to the regulatory relief 11 office which includes a recommendation to the regulatory 12 relief office that the applicant either be admitted or denied 13 participation in the program. The written report shall include 14 reasons for the determination by the state agency. 15 a. A state agency shall recommend that the applicant be 16 admitted into the regulatory relief program if the agency 17 determines that the consumer’s or public’s health, safety, or 18 financial well-being can be protected through less-restrictive 19 means than the existing relevant laws or regulations. The 20 written report shall provide a recommendation of how that can 21 be achieved. 22 b. A state agency shall recommend that the applicant be 23 denied participation in the regulatory relief program if the 24 state agency determines that a temporary waiver or suspension 25 of the relevant laws or regulations would potentially 26 significantly harm the health, safety, or financial well-being 27 of consumers or the public and the likelihood of such harm 28 occurring or create unreasonable expenses for taxpayers in the 29 state. A state agency may also recommend that the applicant be 30 denied participation in the regulatory relief program if the 31 state agency determines, in the state agency’s sole discretion, 32 that the applicant’s innovative offering fails to comply 33 with standards or specifications required by federal law or 34 regulation or previously approved for use by a federal agency. 35 -4- LSB 5201YH (2) 89 ec/rn 4/ 10

H.F. 2349 The written report shall include reasons for the determination 1 by the state agency that the applicant be denied participation 2 in the program. 3 c. If a state agency recommends that an applicant be 4 denied participation in the regulatory relief program, the 5 regulatory relief office shall deny the application and notify 6 the applicant. 7 5. a. Upon receipt of written reports by applicable state 8 agencies that do not recommend denial of the application, 9 the regulatory review office shall review the application to 10 determine whether to accept the applicant into the regulatory 11 review program. The regulatory review office shall provide 12 the application and written reports to the regulatory relief 13 advisory committee which shall review the application and 14 written reports and submit a recommendation to the office 15 regarding the application. The regulatory relief office may 16 also seek information from affected state agencies in making a 17 decision on whether to accept the applicant into the program. 18 The consultation with each applicable state agency may include 19 seeking information about whether the applicable state agency 20 has previously issued a license or other authorization to 21 the applicant and whether the applicable state agency has 22 previously investigated, sanctioned, or pursued legal action 23 against the applicant. 24 b. In reviewing an application under this section, the 25 regulatory relief office shall consider all of the following: 26 (1) Whether a competitor of the applicant is or has been a 27 participant in the regulatory relief program and, if so, weigh 28 that as a factor in favor of allowing the applicant to also 29 become a participant in the regulatory relief program. 30 (2) Whether the applicant’s plan will adequately protect 31 consumers from potential harm identified by an applicable 32 agency in the applicable agency’s written report. 33 (3) Whether the risk of harm to consumers is outweighed 34 by the potential benefits to consumers from the applicant’s 35 -5- LSB 5201YH (2) 89 ec/rn 5/ 10

H.F. 2349 participation in the regulatory relief program. 1 (4) Whether certain state laws or regulations that regulate 2 an offering should not be waived or suspended even if the 3 applicant is approved as a participant in the regulatory 4 relief program, including applicable antifraud or disclosure 5 provisions. 6 6. Following review of the application, the regulatory 7 relief office shall notify the applicant, in writing, whether 8 the regulatory relief office shall approve or deny the 9 application for participation in the regulatory relief program. 10 If the regulatory relief office director denies an application 11 submitted under this section, the regulatory relief office 12 shall provide to the applicant a written description of the 13 reasons for not allowing the applicant to be a participant in 14 the program. 15 7. If the regulatory relief office approves the 16 application, the regulatory relief office shall enter into a 17 written agreement with the applicant describing the specific 18 laws and regulations that are waived or suspended as part of 19 participation in the regulatory relief program. However, 20 the regulatory relief office shall not enter into a written 21 agreement with an applicant that waives or suspends a tax, fee, 22 or charge that is administered by the department of revenue. 23 The written agreement shall also not waive or suspend any law 24 or regulation if waiving or suspending the law or regulation 25 would prevent a consumer from seeking restitution in the event 26 that the consumer is harmed. When an applicant is approved for 27 participation in the program, the regulatory relief office may 28 provide notice of the approval to the public. 29 8. a. If the regulatory relief office approves an 30 application and enters into a written agreement with the 31 applicant, the applicant shall be allowed to participate in 32 the regulatory relief program. A participant in the program 33 has twelve months after the day on which the application 34 was approved to demonstrate the offering described in the 35 -6- LSB 5201YH (2) 89 ec/rn 6/ 10

H.F. 2349 participant’s application. 1 b. A participant in the regulatory relief program is deemed 2 to possess an appropriate license or other authorization under 3 the laws of the state for the purposes of any provision of 4 federal law requiring licensure or other authorization by the 5 state. 6 c. During the demonstration period, a participant in the 7 regulatory relief program is not subject to the enforcement of 8 state laws or regulations identified in the written agreement 9 between the regulatory relief office and the participant in the 10 program. However, a participant in the program does not have 11 immunity related to any criminal offense committed during the 12 participant’s participation in the regulatory relief program. 13 d. During the demonstration period, a participant in the 14 regulatory relief program shall provide notice to consumers 15 regarding the participant’s participation in the program in a 16 manner as prescribed by the regulatory relief office. 17 e. During the demonstration period, a participant in the 18 regulatory relief program shall retain records, documents, and 19 data produced in the ordinary course of business regarding 20 an offering demonstrated in the program. The regulatory 21 relief office may request records, documents, and data from a 22 participant and, upon the regulatory relief office’s request, 23 the participant shall make such records, documents, and data 24 available for inspection by the regulatory relief office. 25 f. A participant in the regulatory relief program shall be 26 required to submit quarterly reports and a final report at the 27 conclusion of the demonstration period to the regulatory relief 28 office containing such information as the office may require 29 regarding the participant’s participation in the program. The 30 participant shall also notify the regulatory relief office 31 and each applicable state agency of any incidents that result 32 in harm to the health, safety, or financial well-being of a 33 consumer during the demonstration period. 34 g. If a participant in the regulatory relief program ceases 35 -7- LSB 5201YH (2) 89 ec/rn 7/ 10

H.F. 2349 to provide an offering before the end of the demonstration 1 period, the participant shall notify the regulatory relief 2 office and shall no longer be granted the authority provided in 3 the written agreement. 4 h. By written notice, the regulatory relief office may end 5 a participant’s participation in the regulatory relief program 6 at any time and for any reason, including if the regulatory 7 relief office determines that a participant in the program is 8 not operating in good faith to bring an innovative offering to 9 market. 10 9. At least thirty days before the end of the twelve-month 11 demonstration period, a participant shall notify the regulatory 12 relief office that the participant will exit the regulatory 13 relief program and discontinue the participant’s demonstration 14 on the day the twelve-month demonstration period ends or shall 15 seek an extension from the regulatory relief office to continue 16 participation in the program. If the participant seeks an 17 extension, the regulatory relief office shall grant or deny 18 a request for an extension by the end of the demonstration 19 period. The regulatory relief office may grant an extension in 20 accordance with this section for not more than twelve months 21 after the end of the initial demonstration period. 22 10. The regulatory relief office and employees of the 23 regulatory relief office are not liable for any business losses 24 or the recouping of application expenses or other expenses 25 related to the regulatory relief program, including for denying 26 an applicant’s application to participate in the program for 27 any reason or ending a participant’s participation in the 28 regulatory relief program at any time and for any reason. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill establishes a regulatory relief program, 33 administered by a regulatory relief office which is created by 34 the bill. 35 -8- LSB 5201YH (2) 89 ec/rn 8/ 10

H.F. 2349 New Code section 15E.22 requires the economic development 1 authority to establish a regulatory relief office under the 2 control of the director of the authority. The bill establishes 3 the duties of the office to include administering the 4 regulatory relief program created by the bill. The office is 5 also required to issue an annual written report concerning the 6 activities of the office. The bill provides that the economic 7 development authority shall adopt rules for purposes of the 8 office and the regulatory relief program. 9 New Code section 15E.23 establishes a 13-member regulatory 10 relief advisory committee. The committee shall consist 11 of nine voting members, appointed by the director of the 12 economic development authority, which shall include six 13 members representing business and three members representing 14 state agencies that regulate businesses, and four nonvoting 15 legislative members. The bill provides that the director of 16 the economic development authority designate the chair of the 17 advisory committee. The advisory committee is responsible for 18 advising and making recommendations to the regulatory relief 19 office regarding the regulatory relief program. 20 New Code section 15E.24 establishes the regulatory relief 21 program. The bill provides that the purpose of the program is 22 to enable businesses to obtain legal protections and limited 23 access to the market in the state to demonstrate an innovative 24 offering without obtaining a license or other authorization 25 that might otherwise be required. The bill establishes the 26 process by which a business may apply to participate in the 27 program. The bill describes the information required to be 28 included in an application to the regulatory relief office for 29 participation in the program. Applications for participation 30 in the program shall be forwarded by the regulatory relief 31 office to affected state agencies who will issue a written 32 report recommending acceptance or rejection of the application. 33 A state agency rejection of an application will result in 34 denial of the application. If no state agency recommends 35 -9- LSB 5201YH (2) 89 ec/rn 9/ 10

H.F. 2349 rejection, the regulatory relief office shall forward the 1 application and the written reports to the regulatory relief 2 advisory committee who shall review the information and 3 submit a recommendation to the office. The regulatory review 4 office shall either accept or deny the application and shall 5 notify the applicant of the decision. If the application is 6 accepted, the regulatory relief agency shall enter into a 7 written agreement with the applicant describing the specific 8 laws and regulations that are waived or suspended as part of 9 the program. Participation in the program shall be for a 10 demonstration period of 12 months. The bill specifies various 11 reporting and disclosure requirements for a participant in the 12 program. The bill allows the regulatory relief office to end a 13 participant’s participation in the program at any time. The 14 bill also permits a participant in the program to request an 15 extension of the program for not more than 12 months after the 16 end of the initial demonstration period. Finally, the bill 17 provides that the regulatory relief office and employees of the 18 regulatory relief office are not liable for any business losses 19 or the recouping of application expenses or other expenses 20 related to the regulatory relief program. 21 -10- LSB 5201YH (2) 89 ec/rn 10/ 10