H.F. 2106 Section 1. NEW SECTION . 15E.22 Regulatory relief office. 1 1. The authority shall establish a regulatory relief office 2 under the control of the director of the authority. 3 2. The regulatory relief office shall have all of the 4 following duties: 5 a. Administer the regulatory relief program as described in 6 section 15E.24. 7 b. Act as a liaison between private businesses and 8 applicable state agencies to identify state laws or regulations 9 that could potentially be waived or suspended under the 10 regulatory relief program. 11 3. The regulatory relief office may do any of the following: 12 a. Review state laws and regulations that may unnecessarily 13 inhibit the creation and success of new companies or industries 14 and provide recommendations to the governor and the general 15 assembly on modifying such state laws and regulations. 16 b. Create a framework for analyzing the risk level to 17 the health, safety, and financial well-being of consumers 18 related to permanently removing or temporarily waiving laws 19 and regulations inhibiting the creation or success of new and 20 existing companies or industries. 21 c. Propose potential reciprocity agreements between states 22 that use or are proposing to use similar regulatory relief 23 programs as described in this subchapter. 24 4. By October 1 of each year, the regulatory relief office 25 shall issue a written annual report on the activities of the 26 office, which report must include all of the following: 27 a. Information regarding each participant in the regulatory 28 relief program, including which industries each participant 29 represents and the anticipated or actual cost savings that each 30 participant experienced. 31 b. Recommendations regarding any laws or regulations that 32 should be permanently modified. 33 c. Information regarding outcomes for consumers. 34 d. Recommendations for changes to the regulatory relief 35 -1- LSB 5228YH (2) 90 sc/ns 1/ 10

H.F. 2106 program or other duties of the regulatory relief office. 1 5. The authority shall adopt rules pursuant to chapter 2 17A as necessary for purposes of establishing the office and 3 implementing the requirements of the regulatory relief program. 4 Sec. 2. NEW SECTION . 15E.23 Regulatory relief advisory 5 committee. 6 1. The authority shall establish a regulatory relief 7 advisory committee consisting of thirteen members, including 8 nine voting members and four ex officio nonvoting members. The 9 advisory committee shall be composed of all of the following: 10 a. Nine voting members, appointed by the director of the 11 authority, as follows: 12 (1) Six members who represent business interests. 13 (2) Three members who represent state agencies that 14 regulate businesses. 15 b. The nonvoting members of the committee shall be two state 16 representatives, one appointed by the speaker of the house of 17 representatives and one by the minority leader of the house of 18 representatives, and two state senators, one appointed by the 19 majority leader of the senate and one by the minority leader 20 of the senate. 21 2. The director of the authority shall, on an annual basis, 22 designate the chairperson of the advisory committee. Members 23 of the advisory committee appointed by the director shall serve 24 four-year staggered terms as determined by the director. 25 3. A majority of the voting members of the advisory 26 committee constitutes a quorum for the purpose of conducting 27 advisory committee business, and the action of the majority of 28 a quorum constitutes the action of the advisory committee. 29 4. The advisory committee shall advise and make 30 recommendations to the regulatory relief office concerning the 31 regulatory relief program as described in section 15E.24. 32 Sec. 3. NEW SECTION . 15E.24 Regulatory relief program. 33 1. The regulatory review office shall establish a 34 regulatory relief program. The purpose of the regulatory 35 -2- LSB 5228YH (2) 90 sc/ns 2/ 10

H.F. 2106 relief program is to enable a business to obtain legal 1 protections and limited access to the market in this state to 2 demonstrate an innovative offering without obtaining a license 3 or other authorization that might otherwise be required. 4 2. a. The regulatory review office shall establish a 5 process for purposes of receiving applications from businesses 6 to participate in the regulatory relief program. 7 b. The application must include a description of the 8 innovative offering to be demonstrated by the participant, to 9 include all of the following information: 10 (1) Statements from the applicant on how the offering is 11 subject to licensing, legal prohibition, or other authorization 12 requirements. 13 (2) Identification of each law or regulation that the 14 applicant seeks to have waived or suspended while participating 15 in the regulatory relief program. 16 (3) How the innovative offering would benefit consumers. 17 (4) What risks might exist for consumers who use or purchase 18 the offering. 19 (5) How participating in the regulatory relief program 20 would enable a successful demonstration of the offering. 21 (6) A description of the proposed demonstration plan for the 22 offering, including estimated time periods for beginning and 23 ending the demonstration. 24 (7) How the applicant will end the demonstration and protect 25 consumers if the demonstration fails. 26 (8) A list of each state agency, if any, that the applicant 27 knows regulates the applicant’s business relative to the 28 offering. 29 (9) Disclosure of criminal convictions of the applicant 30 or any person who seeks to participate with the applicant in 31 demonstrating an offering. 32 (10) Such other information as the regulatory review office 33 requires. 34 3. Upon receipt of an application to participate in the 35 -3- LSB 5228YH (2) 90 sc/ns 3/ 10

H.F. 2106 regulatory relief program, the regulatory relief office shall 1 acknowledge receipt of the application, forward information 2 in the application to affected state agencies for review, and 3 notify the applicant which state agencies will review the 4 application. 5 4. Each state agency in receipt of an application to 6 participate in the regulatory relief program shall, in a timely 7 fashion, submit a written report to the regulatory relief 8 office which includes a recommendation to the regulatory 9 relief office that the applicant either be admitted or denied 10 participation in the program. The written report shall include 11 reasons for the determination by the state agency. 12 a. A state agency shall recommend that the applicant be 13 admitted into the regulatory relief program if the agency 14 determines that the consumer’s or public’s health, safety, or 15 financial well-being can be protected through less-restrictive 16 means than the existing relevant laws or regulations. The 17 written report shall provide a recommendation of how that can 18 be achieved. 19 b. A state agency shall recommend that the applicant be 20 denied participation in the regulatory relief program if the 21 state agency determines that a temporary waiver or suspension 22 of the relevant laws or regulations would potentially 23 significantly harm the health, safety, or financial well-being 24 of consumers or the public and the harm is likely to occur 25 or would create unreasonable expenses for taxpayers in the 26 state. A state agency may also recommend that the applicant be 27 denied participation in the regulatory relief program if the 28 state agency determines, in the state agency’s sole discretion, 29 that the applicant’s innovative offering fails to comply 30 with standards or specifications required by federal law or 31 regulation or previously approved for use by a federal agency. 32 The written report must include reasons for the determination 33 by the state agency that the applicant be denied participation 34 in the program. 35 -4- LSB 5228YH (2) 90 sc/ns 4/ 10

H.F. 2106 c. If a state agency recommends that an applicant be 1 denied participation in the regulatory relief program, the 2 regulatory relief office shall deny the application and notify 3 the applicant. 4 5. a. Upon receipt of written reports by applicable state 5 agencies that do not recommend denial of the application, 6 the regulatory review office shall review the application to 7 determine whether to accept the applicant into the regulatory 8 review program. The regulatory review office shall provide 9 the application and written reports to the regulatory relief 10 advisory committee which shall review the application and 11 written reports and submit a recommendation to the office 12 regarding the application. The regulatory relief office may 13 also seek information from affected state agencies in making a 14 decision on whether to accept the applicant into the program. 15 The consultation with each applicable state agency may include 16 seeking information about whether the applicable state agency 17 has previously issued a license or other authorization to 18 the applicant and whether the applicable state agency has 19 previously investigated, sanctioned, or pursued legal action 20 against the applicant. 21 b. In reviewing an application under this section, the 22 regulatory relief office shall consider all of the following: 23 (1) Whether a competitor of the applicant is or has been a 24 participant in the regulatory relief program and, if so, weigh 25 that as a factor in favor of allowing the applicant to also 26 become a participant in the regulatory relief program. 27 (2) Whether the applicant’s plan will adequately protect 28 consumers from potential harm identified by an applicable 29 agency in the applicable agency’s written report. 30 (3) Whether the risk of harm to consumers is outweighed 31 by the potential benefits to consumers from the applicant’s 32 participation in the regulatory relief program. 33 (4) Whether certain state laws or regulations that regulate 34 an offering should not be waived or suspended even if the 35 -5- LSB 5228YH (2) 90 sc/ns 5/ 10

H.F. 2106 applicant is approved as a participant in the regulatory 1 relief program, including applicable antifraud or disclosure 2 provisions. 3 6. Following review of the application, the regulatory 4 relief office shall notify the applicant, in writing, whether 5 the regulatory relief office approves or denies the application 6 for participation in the regulatory relief program. If 7 the regulatory relief office director denies an application 8 submitted under this section, the regulatory relief office 9 shall provide to the applicant a written description of the 10 reasons for not allowing the applicant to be a participant in 11 the program. 12 7. If the regulatory relief office approves the 13 application, the regulatory relief office shall enter into a 14 written agreement with the applicant describing the specific 15 laws and regulations that are waived or suspended as part of 16 participation in the regulatory relief program. However, 17 the regulatory relief office shall not enter into a written 18 agreement with an applicant that waives or suspends a tax, fee, 19 or charge that is administered by the department of revenue. 20 The written agreement shall also not waive or suspend any law 21 or regulation if waiving or suspending the law or regulation 22 would prevent a consumer from seeking restitution in the event 23 that the consumer is harmed. When an applicant is approved for 24 participation in the program, the regulatory relief office may 25 provide notice of the approval to the public. 26 8. a. If the regulatory relief office approves an 27 application and enters into a written agreement with the 28 applicant, the applicant shall be allowed to participate in 29 the regulatory relief program. A participant in the program 30 has twelve months after the day on which the application 31 was approved to demonstrate the offering described in the 32 participant’s application. 33 b. A participant in the regulatory relief program is deemed 34 to possess an appropriate license or other authorization under 35 -6- LSB 5228YH (2) 90 sc/ns 6/ 10

H.F. 2106 the laws of the state for the purposes of any provision of 1 federal law requiring licensure or other authorization by the 2 state. 3 c. During the demonstration period, a participant in the 4 regulatory relief program is not subject to the enforcement of 5 state laws or regulations identified in the written agreement 6 between the regulatory relief office and the participant in the 7 program. However, a participant in the program does not have 8 immunity related to any criminal offense committed during the 9 participant’s participation in the regulatory relief program. 10 d. During the demonstration period, a participant in the 11 regulatory relief program shall provide notice to consumers 12 regarding the participant’s participation in the program in a 13 manner as prescribed by the regulatory relief office. 14 e. During the demonstration period, a participant in the 15 regulatory relief program shall retain records, documents, and 16 data produced in the ordinary course of business regarding 17 an offering demonstrated in the program. The regulatory 18 relief office may request records, documents, and data from a 19 participant and, upon the regulatory relief office’s request, 20 the participant shall make such records, documents, and data 21 available for inspection by the regulatory relief office. 22 f. A participant in the regulatory relief program shall be 23 required to submit quarterly reports and a final report at the 24 conclusion of the demonstration period to the regulatory relief 25 office containing such information as the office may require 26 regarding the participant’s participation in the program. The 27 participant shall also notify the regulatory relief office 28 and each applicable state agency of any incidents that result 29 in harm to the health, safety, or financial well-being of a 30 consumer during the demonstration period. 31 g. If a participant in the regulatory relief program ceases 32 to provide an offering before the end of the demonstration 33 period, the participant shall notify the regulatory relief 34 office and shall no longer be granted the authority provided in 35 -7- LSB 5228YH (2) 90 sc/ns 7/ 10

H.F. 2106 the written agreement. 1 h. By written notice, the regulatory relief office may end 2 a participant’s participation in the regulatory relief program 3 at any time and for any reason, including if the regulatory 4 relief office determines that a participant in the program is 5 not operating in good faith to bring an innovative offering to 6 market. 7 9. At least thirty days before the end of the twelve-month 8 demonstration period, a participant shall notify the regulatory 9 relief office that the participant will exit the regulatory 10 relief program and discontinue the participant’s demonstration 11 on the day the twelve-month demonstration period ends or shall 12 seek an extension from the regulatory relief office to continue 13 participation in the program. If the participant seeks an 14 extension, the regulatory relief office shall grant or deny 15 a request for an extension by the end of the demonstration 16 period. The regulatory relief office may grant an extension in 17 accordance with this section for not more than twelve months 18 after the end of the initial demonstration period. 19 10. The regulatory relief office and employees of the 20 regulatory relief office are not liable for any business losses 21 or the recouping of application expenses or other expenses 22 related to the regulatory relief program, including for denying 23 an applicant’s application to participate in the program for 24 any reason or ending a participant’s participation in the 25 regulatory relief program at any time and for any reason. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill establishes a regulatory relief program, 30 administered by a regulatory relief office which is created by 31 the bill. 32 New Code section 15E.22 requires the economic development 33 authority to establish a regulatory relief office under the 34 control of the director of the authority. The bill establishes 35 -8- LSB 5228YH (2) 90 sc/ns 8/ 10

H.F. 2106 the duties of the office to include administering the 1 regulatory relief program created by the bill. The office is 2 also required to issue an annual written report concerning the 3 activities of the office. The bill provides that the economic 4 development authority shall adopt rules for purposes of the 5 office and the regulatory relief program. 6 New Code section 15E.23 establishes a 13-member regulatory 7 relief advisory committee. The committee shall consist 8 of nine voting members, appointed by the director of the 9 economic development authority, which shall include six 10 members representing business and three members representing 11 state agencies that regulate businesses, and four nonvoting 12 legislative members. The bill provides that the director of 13 the economic development authority designate the chair of the 14 advisory committee. The advisory committee is responsible for 15 advising and making recommendations to the regulatory relief 16 office regarding the regulatory relief program. 17 New Code section 15E.24 establishes the regulatory relief 18 program. The bill provides that the purpose of the program is 19 to enable businesses to obtain legal protections and limited 20 access to the market in this state to demonstrate an innovative 21 offering without obtaining a license or other authorization 22 that might otherwise be required. The bill establishes the 23 process by which a business may apply to participate in the 24 program. The bill describes the information required to be 25 included in an application to the regulatory relief office for 26 participation in the program. Applications for participation 27 in the program shall be forwarded by the regulatory relief 28 office to affected state agencies who will issue a written 29 report recommending acceptance or rejection of the application. 30 A state agency rejection of an application will result in 31 denial of the application. If no state agency recommends 32 rejection, the regulatory relief office shall forward the 33 application and the written reports to the regulatory relief 34 advisory committee who shall review the information and 35 -9- LSB 5228YH (2) 90 sc/ns 9/ 10

H.F. 2106 submit a recommendation to the office. The regulatory review 1 office shall either accept or deny the application and shall 2 notify the applicant of the decision. If the application is 3 accepted, the regulatory relief agency shall enter into a 4 written agreement with the applicant describing the specific 5 laws and regulations that are waived or suspended as part of 6 the program. Participation in the program shall be for a 7 demonstration period of 12 months. The bill specifies various 8 reporting and disclosure requirements for a participant in the 9 program. The bill allows the regulatory relief office to end a 10 participant’s participation in the program at any time. The 11 bill also permits a participant in the program to request an 12 extension of the program for not more than 12 months after the 13 end of the initial demonstration period. Finally, the bill 14 provides that the regulatory relief office and employees of the 15 regulatory relief office are not liable for any business losses 16 or the recouping of application expenses or other expenses 17 related to the regulatory relief program. 18 -10- LSB 5228YH (2) 90 sc/ns 10/ 10