Senators introduce bill to create universal regulatory sandbox and regulatory relief office

Senators Catrona and Lang told the Senate General Government Committee that Senate Bill 90 would create a universal regulatory sandbox program housed in the Common Sense Initiative (CSI) office and establish a Regulatory Relief Office to allow businesses to test products or services in Ohio without obtaining usual licenses or authorizations.

The sponsors said the bill is intended to reduce regulatory barriers that they said can drive startups and new business activity out of state. The bill would let participants operate under limited, temporary relief from specified laws while the state studies whether those laws should be modified or permanently removed, the sponsors said.

Senator Catrona, sponsor, said the sandbox would give businesses “limited access to the market in Ohio to test their products or services without obtaining any other licensure or authorization that would typically be required.” Senator Lang, joint sponsor, said the Regulatory Relief Office would act as a liaison between private businesses and state agencies and may propose reciprocity agreements with other states that operate similar programs. Lang identified Arizona, Kentucky, Missouri and Utah as states using or proposing similar universal regulatory sandbox programs.

The bill creates an advisory committee to the program that would include six business leaders from different industries, three state agency representatives and two legislators (one appointed by the senate and one by the house). The Common Sense Initiative would be required to submit an annual report to the General Assembly with program activity, participant information and suggested statutory changes.

During committee questions Senator DeMora asked how regulations would be chosen for temporary waiver. Senator Catrona answered with an example from the financial technology sector, saying some firms have relocated to other states that offer sandbox programs to test technologies. Vice Chair Gavarone asked how the proposal would interact with the Joint Committee on Agency Rule Review process and the Cut Red Tape Ohio program; Senator Lang said the committee would hold periodic meetings and that recommendations would, in his view, logically flow through JCAR but he did not supply definitive procedural details.

The bill received its first hearing and sponsor testimony; committee members did not take a final vote at this session.