H.F. 2090 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 5090YH (2) 91 sc/ns 1/ 10

H.F. 2090 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. 9 The advisory committee shall be composed of all of the 10 following: 11 a. Nine voting members, appointed by the director of the 12 authority, as follows: 13 (1) Six members who represent business interests. 14 (2) Three members who represent state agencies that 15 regulate businesses. 16 b. The nonvoting members of the committee shall be two state 17 representatives, one appointed by the speaker of the house of 18 representatives and one by the minority leader of the house of 19 representatives, and two state senators, one appointed by the 20 majority leader of the senate and one by the minority leader 21 of the senate. 22 2. The director of the authority shall, on an annual basis, 23 designate the chairperson of the advisory committee. Members 24 of the advisory committee appointed by the director shall serve 25 four-year staggered terms as determined by the director. 26 3. A majority of the voting members of the advisory 27 committee constitutes a quorum for the purpose of conducting 28 advisory committee business, and the action of the majority of 29 a quorum constitutes the action of the advisory committee. 30 4. The advisory committee shall advise and make 31 recommendations to the regulatory relief office concerning the 32 regulatory relief program as described in section 15E.24. 33 5. The advisory committee is not subject to section 4A.5. 34 Sec. 3. NEW SECTION . 15E.24 Regulatory relief program. 35 -2- LSB 5090YH (2) 91 sc/ns 2/ 10

H.F. 2090 1. The regulatory review office shall establish a 1 regulatory relief program. The purpose of the regulatory 2 relief program is to enable a business to obtain legal 3 protections and limited access to the market in this state to 4 demonstrate an innovative offering without obtaining a license 5 or other authorization that might otherwise be required. 6 2. a. The regulatory review office shall establish a 7 process for purposes of receiving applications from businesses 8 to participate in the regulatory relief program. 9 b. The application must include a description of the 10 innovative offering to be demonstrated by the participant, to 11 include all of the following information: 12 (1) Statements from the applicant on how the offering is 13 subject to licensing, legal prohibition, or other authorization 14 requirements. 15 (2) Identification of each law or regulation that the 16 applicant seeks to have waived or suspended while participating 17 in the regulatory relief program. 18 (3) How the innovative offering would benefit consumers. 19 (4) What risks might exist for consumers who use or purchase 20 the offering. 21 (5) How participating in the regulatory relief program 22 would enable a successful demonstration of the offering. 23 (6) A description of the proposed demonstration plan for the 24 offering, including estimated time periods for beginning and 25 ending the demonstration. 26 (7) How the applicant will end the demonstration and protect 27 consumers if the demonstration fails. 28 (8) A list of each state agency, if any, that the applicant 29 knows regulates the applicant’s business relative to the 30 offering. 31 (9) Disclosure of criminal convictions of the applicant 32 or any person who seeks to participate with the applicant in 33 demonstrating an offering. 34 (10) Such other information as the regulatory review office 35 -3- LSB 5090YH (2) 91 sc/ns 3/ 10

H.F. 2090 requires. 1 3. Upon receipt of an application to participate in the 2 regulatory relief program, the regulatory relief office shall 3 acknowledge receipt of the application, forward information 4 in the application to affected state agencies for review, and 5 notify the applicant which state agencies will review the 6 application. 7 4. Each state agency in receipt of an application to 8 participate in the regulatory relief program shall, in a timely 9 fashion, submit a written report to the regulatory relief 10 office which includes a recommendation to the regulatory 11 relief office that the applicant either be admitted or denied 12 participation in the program. The written report must include 13 reasons for the determination by the state agency. 14 a. A state agency shall recommend that the applicant be 15 admitted into the regulatory relief program if the agency 16 determines that the consumer’s or public’s health, safety, or 17 financial well-being can be protected through less restrictive 18 means than the existing relevant laws or regulations. The 19 written report must provide a recommendation of how that can 20 be achieved. 21 b. A state agency shall recommend that the applicant be 22 denied participation in the regulatory relief program if the 23 state agency determines that a temporary waiver or suspension 24 of the relevant laws or regulations would potentially 25 significantly harm the health, safety, or financial well-being 26 of consumers or the public and the harm is likely to occur 27 or would create unreasonable expenses for taxpayers in the 28 state. A state agency may also recommend that the applicant be 29 denied participation in the regulatory relief program if the 30 state agency determines, in the state agency’s sole discretion, 31 that the applicant’s innovative offering fails to comply 32 with standards or specifications required by federal law or 33 regulation or previously approved for use by a federal agency. 34 The written report must include reasons for the determination 35 -4- LSB 5090YH (2) 91 sc/ns 4/ 10

H.F. 2090 by the state agency that the applicant be denied participation 1 in the program. 2 c. If a state agency recommends that an applicant be 3 denied participation in the regulatory relief program, the 4 regulatory relief office shall deny the application and notify 5 the applicant. 6 5. a. Upon receipt of written reports by applicable state 7 agencies that do not recommend denial of the application, 8 the regulatory review office shall review the application to 9 determine whether to accept the applicant into the regulatory 10 review program. The regulatory review office shall provide 11 the application and written reports to the regulatory relief 12 advisory committee which shall review the application and 13 written reports and submit a recommendation to the office 14 regarding the application. The regulatory relief office may 15 also seek information from affected state agencies in making a 16 decision on whether to accept the applicant into the program. 17 The consultation with each applicable state agency may include 18 seeking information about whether the applicable state agency 19 has previously issued a license or other authorization to 20 the applicant and whether the applicable state agency has 21 previously investigated, sanctioned, or pursued legal action 22 against the applicant. 23 b. In reviewing an application under this section, the 24 regulatory relief office shall consider all of the following: 25 (1) Whether a competitor of the applicant is or has been a 26 participant in the regulatory relief program and, if so, weigh 27 that as a factor in favor of allowing the applicant to also 28 become a participant in the regulatory relief program. 29 (2) Whether the applicant’s plan will adequately protect 30 consumers from potential harm identified by an applicable 31 agency in the applicable agency’s written report. 32 (3) Whether the risk of harm to consumers is outweighed 33 by the potential benefits to consumers from the applicant’s 34 participation in the regulatory relief program. 35 -5- LSB 5090YH (2) 91 sc/ns 5/ 10

H.F. 2090 (4) Whether certain state laws or regulations that regulate 1 an offering should not be waived or suspended even if the 2 applicant is approved as a participant in the regulatory 3 relief program, including applicable antifraud or disclosure 4 provisions. 5 6. Following review of the application, the regulatory 6 relief office shall notify the applicant, in writing, whether 7 the regulatory relief office approves or denies the application 8 for participation in the regulatory relief program. If 9 the regulatory relief office director denies an application 10 submitted under this section, the regulatory relief office 11 shall provide to the applicant a written description of the 12 reasons for not allowing the applicant to be a participant in 13 the program. 14 7. If the regulatory relief office approves the 15 application, the regulatory relief office shall enter into a 16 written agreement with the applicant describing the specific 17 laws and regulations that are waived or suspended as part of 18 participation in the regulatory relief program. However, 19 the regulatory relief office shall not enter into a written 20 agreement with an applicant that waives or suspends a tax, fee, 21 or charge that is administered by the department of revenue. 22 The written agreement shall also not waive or suspend any law 23 or regulation if waiving or suspending the law or regulation 24 would prevent a consumer from seeking restitution in the event 25 that the consumer is harmed. When an applicant is approved for 26 participation in the program, the regulatory relief office may 27 provide notice of the approval to the public. 28 8. a. If the regulatory relief office approves an 29 application and enters into a written agreement with the 30 applicant, the applicant shall be allowed to participate in 31 the regulatory relief program. A participant in the program 32 has twelve months after the day on which the application 33 was approved to demonstrate the offering described in the 34 participant’s application. 35 -6- LSB 5090YH (2) 91 sc/ns 6/ 10

H.F. 2090 b. A participant in the regulatory relief program is deemed 1 to possess an appropriate license or other authorization under 2 the laws of the state for the purposes of any provision of 3 federal law requiring licensure or other authorization by the 4 state. 5 c. During the demonstration period, a participant in the 6 regulatory relief program is not subject to the enforcement of 7 state laws or regulations identified in the written agreement 8 between the regulatory relief office and the participant in the 9 program. However, a participant in the program does not have 10 immunity related to any criminal offense committed during the 11 participant’s participation in the regulatory relief program. 12 d. During the demonstration period, a participant in the 13 regulatory relief program shall provide notice to consumers 14 regarding the participant’s participation in the program in a 15 manner as prescribed by the regulatory relief office. 16 e. During the demonstration period, a participant in the 17 regulatory relief program shall retain records, documents, and 18 data produced in the ordinary course of business regarding 19 an offering demonstrated in the program. The regulatory 20 relief office may request records, documents, and data from a 21 participant and, upon the regulatory relief office’s request, 22 the participant shall make such records, documents, and data 23 available for inspection by the regulatory relief office. 24 f. A participant in the regulatory relief program shall be 25 required to submit quarterly reports and a final report at the 26 conclusion of the demonstration period to the regulatory relief 27 office containing such information as the office may require 28 regarding the participant’s participation in the program. The 29 participant shall also notify the regulatory relief office 30 and each applicable state agency of any incidents that result 31 in harm to the health, safety, or financial well-being of a 32 consumer during the demonstration period. 33 g. If a participant in the regulatory relief program ceases 34 to provide an offering before the end of the demonstration 35 -7- LSB 5090YH (2) 91 sc/ns 7/ 10

H.F. 2090 period, the participant shall notify the regulatory relief 1 office and shall no longer be granted the authority provided in 2 the written agreement. 3 h. By written notice, the regulatory relief office may end 4 a participant’s participation in the regulatory relief program 5 at any time and for any reason, including if the regulatory 6 relief office determines that a participant in the program is 7 not operating in good faith to bring an innovative offering to 8 market. 9 9. At least thirty days before the end of the twelve-month 10 demonstration period, a participant shall notify the regulatory 11 relief office that the participant will exit the regulatory 12 relief program and discontinue the participant’s demonstration 13 on the day the twelve-month demonstration period ends or shall 14 seek an extension from the regulatory relief office to continue 15 participation in the program. If the participant seeks an 16 extension, the regulatory relief office shall grant or deny 17 a request for an extension by the end of the demonstration 18 period. The regulatory relief office may grant an extension in 19 accordance with this section for not more than twelve months 20 after the end of the initial demonstration period. 21 10. The regulatory relief office and employees of the 22 regulatory relief office are not liable for any business losses 23 or the recouping of application expenses or other expenses 24 related to the regulatory relief program, including for denying 25 an applicant’s application to participate in the program for 26 any reason or ending a participant’s participation in the 27 regulatory relief program at any time and for any reason. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill establishes a regulatory relief program, 32 administered by a regulatory relief office which is created by 33 the bill. 34 New Code section 15E.22 requires the economic development 35 -8- LSB 5090YH (2) 91 sc/ns 8/ 10

H.F. 2090 authority (IEDA) to establish a regulatory relief office under 1 the control of the director of IEDA. The bill establishes the 2 duties of the office to include administering the regulatory 3 relief program created by the bill. The office is also 4 required to issue an annual written report concerning the 5 activities of the office. The bill requires IEDA to adopt 6 rules for purposes of the office and the regulatory relief 7 program. 8 New Code section 15E.23 establishes a 13-member regulatory 9 relief advisory committee consisting of nine voting members 10 appointed by the director of IEDA, including six members 11 representing business interests and three members representing 12 state agencies that regulate businesses, and four nonvoting 13 legislative members. The bill provides that the director 14 of IEDA designate the chair of the advisory committee. The 15 advisory committee is responsible for advising and making 16 recommendations to the regulatory relief office regarding the 17 regulatory relief program. 18 New Code section 15E.24 establishes the regulatory relief 19 program. The bill provides that the purpose of the program is 20 to enable businesses to obtain legal protections and limited 21 access to the market in this state to demonstrate an innovative 22 offering without obtaining a license or other authorization 23 that might otherwise be required. The bill establishes the 24 process by which a business may apply to participate in the 25 program. The bill describes the information required to be 26 included in an application to the regulatory relief office for 27 participation in the program. Applications for participation 28 in the program shall be forwarded by the regulatory relief 29 office to affected state agencies who will issue a written 30 report recommending acceptance or rejection of the application. 31 A state agency rejection of an application will result in 32 denial of the application. If no state agency recommends 33 rejection, the regulatory relief office shall forward the 34 application and the written reports to the regulatory relief 35 -9- LSB 5090YH (2) 91 sc/ns 9/ 10

H.F. 2090 advisory committee who shall review the information and 1 submit a recommendation to the office. The regulatory review 2 office shall either accept or deny the application and shall 3 notify the applicant of the decision. If the application is 4 accepted, the regulatory relief agency shall enter into a 5 written agreement with the applicant describing the specific 6 laws and regulations that are waived or suspended as part of 7 the program. Participation in the program shall be for a 8 demonstration period of 12 months. The bill specifies various 9 reporting and disclosure requirements for a participant in the 10 program. The bill allows the regulatory relief office to end a 11 participant’s participation in the program at any time. The 12 bill also permits a participant in the program to request an 13 extension of the program for not more than 12 months after the 14 end of the initial demonstration period. Finally, the bill 15 provides that the regulatory relief office and employees of the 16 regulatory relief office are not liable for any business losses 17 or the recouping of application expenses or other expenses 18 related to the regulatory relief program. 19 -10- LSB 5090YH (2) 91 sc/ns 10/ 10