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Senate backs regulatory sandbox bill but tables it on third reading over fiscal concerns

Utah State Senate · February 11, 2021
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Summary

Senators praised a regulatory sandbox (H.B. 217) designed to let innovators test ideas with limited regulatory relief, but after unanimous support to read the bill a third time, lawmakers tabled the measure on third because of a fiscal note. Sponsor said the program would be administered by GOED and would not exempt health and safety rules.

The Utah Senate debated and temporarily halted first substitute H.B. 217, a bill to create a regulatory 'sandbox' enabling innovators to apply for a one-year suspension of certain administrative regulations to test proof-of-concept projects.

Senator Milner described the bill as a way to "make sure that Utah has the absolute best regulatory environment for business" by allowing temporary relief from non-safety regulations through an application run by the Governor's Office of Economic Development (GOED). He said the program would not suspend health and safety rules and would require an application and oversight.

Supporters emphasized the bill’s potential to help entrepreneurs and incumbent firms test new processes. Senator Fillmore praised the bill’s potential to lower barriers to entry and noted it could expose regulations that serve entrenched interests rather than the public. Senator Davis pressed the sponsor on safeguards for health and safety; Milner responded that the bill explicitly preserves health and safety regulations.

The Senate recorded a unanimous roll-call in favor of reading H.B. 217 a third time. Shortly afterward, Senator Ibsen noted a fiscal note and moved to table the bill on third. The motion to table passed, pausing the bill’s advancement pending fiscal consideration.