WASHINGTON – U.S. Senator Mike Lee (R-UT) today introduced legislation to bring Utah’s regulatory sandbox model nationwide to deregulate innovation across all industries at a federal level. The Promoting Innovation and Offering the Needed Escape from Exhaustive Regulations (PIONEER) Act will apply Utah’s trailblazing sandbox concept nationwide to provide relief from overregulation and promote innovation and efficiency across American economies.

“Utah is leading the way with deregulation across all industries,” said Senator Mike Lee. “Our regulatory sandbox model is the first of its kind, successfully fostering innovation and inspiring several other states to follow our lead. The PIONEER Act will bring Utah’s successful deregulation model to business owners in every state, allowing American businesses to thrive and innovate freely.”

Background

Federal regulations cost American businesses and consumers trillions of dollars annually, chilling innovation and investment.

Utah first explored a regulatory sandbox for the FinTech industry in 2019 alongside Wyoming and Arizona. Following positive feedback, Utah extended sandbox privileges to all industries in March of 2021 – the first of its kind. Following Utah’s lead, Arizona and Kentucky also established all-inclusive regulatory sandboxes. North Carolina created a combined insurance and fintech sandbox in 2021. Overall, 14 states currently have either all-inclusive or industry-specific sandbox programs that bolster innovation and allow industries to adapt to advancing technologies.

The PIONEER Act:

• Creates the federal regulatory sandbox program under which individuals and businesses can apply to have regulations waived for a period of two years in order to incentivize business success, expand economic opportunities, create jobs, and foster innovation.
• Establishes the “Office of Regulatory Relief” within OIRA to receive applications, file decisions, and monitor the health and safety of the public.
• When reviewing an application, federal agencies must take input from a bipartisan advisory board of 10 private sector individuals (half of which represent small businesses).
• Applicants must be provided opportunities to fix issues or concerns identified in their applications, and to appeal to the Office of Regulatory Relief.
• Allows approved applicants to renew their waiver up to four times, for a potential of 10 years.
• Provides safeguards for consumer health, safety and financial well-being, and allows the Office of Regulatory Relief to end the regulatory sandbox relief if it determines that any pose a significant risk.
• Requires an annual report to Congress that details the effectiveness of the regulatory sandbox program and whether the regulatory relief has harmed or benefited consumers and businesses.

Access the full text of the bill here.