All-Inclusive Regulatory Sandbox
House Bill 217 proposes to establish an all-inclusive regulatory “sandbox” here in Utah.
If you’re here, you probably have some questions about this bill and regulatory sandboxes, in general. We’ve compiled some resources to help you out.
What Is a Regulatory Sandbox?
In short, a regulatory sandbox is a set of rules that allow businesses, usually within a specific industry, to test themselves in the market for a set period of time — generally two to three years — without being subject to any particular set of regulations. This is especially helpful to new businesses with innovative products, services, and/or business models that don’t neatly fit into a single industry. At the end of that set time period, the business and its results are evaluated to determine what, if any, regulations should apply to it.
Is this a new idea?
Not exactly. Utah already has three, industry-specific sandboxes for Financial Technology, Insurance, and Legal Services. Other countries and states have implemented regulatory sandboxes. HB 217 simply takes this idea and applies it to all industries, not just specific ones.
Why is this a good idea?
It’s no secret and no surprise that the response to the COVID-19 pandemic has wreaked havoc on the economy, both at the state and the national level. Entrepreneurship has always been the beating heart of our economy. There is no better way to get Utahns — and all Americans — back on their economic feet than to create an environment that encourages entrepreneurs to do what they do best: creating and providing the goods, services, and jobs that solve our problems and improve our quality of life.
The COVID-19 response has also shed a brighter light on the purely bureaucratic challenges entrepreneurs face. For many years, those seeking to start a business have faced red tape that has only gotten more and more tangled as new regulations are passed while old, outdated ones remain on the books. HB 217 dramatically reduces the barriers to entry faced by entrepreneurs, spurs innovation while still protecting consumers, and sets Utah apart as one of the most business-friendly states in the country.
Read more about regulatory sandboxes
- Utah Innovates: Regulatory Frameworks for the Future (Libertas Policy Brief, PDF)
- Let’s lay the groundwork for Utah’s future economy (Salt Lake Tribune op-ed)
- How Utah can welcome better innovation (Deseret News op-ed)
- Let’s make Utah the ‘Sandbox State’ (Salt Lake Tribune op-ed)
- ‘Sandbox’ Everything (RealClear Policy op-ed)
- Regulatory relief is key for Utah’s COVID-19 recovery (Deseret News op-ed)