“A bill to establish a regulatory sandbox program under which agencies may provide waivers of agency rules and guidance, and for other purposes.”
No CRS summary available for this bill.
This section provides definitions for terms used in the Act, including (1) "Administrator" as the Administrator of the Office of Information and Regulatory Affairs; (2) "agency" and "rule" as defined in 5 U.S.C. §551; (3) "applicable agency" as an agency with jurisdiction over the enforcement or implementation of a covered provision for which a waiver is sought; (4) "covered provision" as a rule (including one required by law) or agency guidance or other document; (5) "Director" as the Director of the Office; (6) "economic damage" as a risk likely to cause tangible physical harm to consumers' property or assets; (7) "health or safety" as a risk likely to cause bodily harm, loss of human life, or inability to sustain human health or life; (8) "Office" as the Office of Federal Regulatory Relief established under section 3(a); (9) "Program" as the program established under section 4(a); and (10) "unfair or deceptive trade practice" as defined in specified Federal Trade Commission policy statements from 1983 and 1980.
This section establishes the Office of Federal Regulatory Relief within the Office of Information and Regulatory Affairs in the Office of Management and Budget, headed by the Administrator of that office or a designee (Director). The Director is responsible for (1) establishing a regulatory sandbox program under section 4; (2) receiving, completing, referring, and filing Program applications; (3) hearing appeals of agency denials under section 4(c)(8); and (4) designating staff; and, not later than 180 days after enactment, must establish and publish in the Federal Register (after public comment) a process to assess health/safety risks, economic damage risks, and risks of unfair/deceptive consumer practices for Program applications, along with a detailed criteria list, and the section 4(c)(1) application process. The Director must also require each agency head to establish an advisory board of 10 private-sector representatives with agency-jurisdiction expertise (not more than 5 from the same political party; terms of not more than 3 years; no compensation) to provide input on Program applications, including not less than 5 representatives of small business concerns (as defined in 15 U.S.C. 632, i.e., independently owned and operated businesses that are not dominant in their field). The section specifies procedures for advisory board vacancies, conflicts of interest (including recusals under 18 U.S.C. 208 and temporary replacements for members affiliated with applicants), and permits agencies to create additional boards for multi-industry or unique Program applications.
This section establishes a regulatory sandbox program, to be administered by the Director, under which applicable agencies may grant or deny waivers of covered regulatory provisions to allow businesses to temporarily test products, services, or business facility expansions on a limited basis without full licensing or authorization. The program's purpose is to incentivize business success, economic opportunities, job creation, and innovation. Applications must confirm U.S. jurisdiction and business presence; provide applicant details and criminal disclosures; and describe the offering, including regulatory barriers, consumer benefits, risks and mitigations, timelines, post-program compliance, wind-down plans, consumer harm remedies, and regulating agencies. The Director's Office transmits applications to applicable agencies within 14 days; agency heads (or designees), with advisory board input, review for consumer protection, risk-benefit balance, and partial waiver feasibility; and agencies must approve or deny within 180 days, submitting decisions to the Director, who grants full waivers if all agencies approve or partial waivers otherwise.