Committee hears third hearing on regulatory sandbox bill aimed at startups and AI testing

Sep 30, 2025

Testimony for House Bill 176 described a state regulatory sandbox to let startups test products (including AI in health care) with tailored rules, advisory oversight and required disclosures; members pressed for consumer protections, exit rules, and clarity about differences from a terminated CFPB program.

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The House Government Oversight Committee held the third hearing on House Bill 176, a proposal to create a state regulatory sandbox to allow businesses — especially technology startups and firms using AI — to test products under tailored or temporarily suspended regulations while working with regulators.

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