Pennsylvania SB 245: An Act establishing the Regulatory Sandbox Program, the Regulatory Relief Office and an advisory committee; and providing for their powers and duties.

Bill Text

PRIOR PRINTER'S NO. 198 PRINTER'S NO. 894
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 245
Session of
2025
INTRODUCED BY COLEMAN, PHILLIPS-HILL AND STEFANO,
FEBRUARY 13, 2025
SENATOR COLEMAN, INTERGOVERNMENTAL OPERATIONS, AS AMENDED,
JUNE 4, 2025
AN ACT
Establishing the Regulatory Sandbox Program, the Regulatory
Relief Office and an advisory committee; and providing for
their powers and duties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Regulatory
Sandbox Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Advisory committee." The Regulatory Sandbox Program
Advisory Committee established under section 4.
"Applicable agency." A department or agency of the
Commonwealth that by law regulates a business activity, and
persons engaged in a business activity, including the issuance
of licenses or other types of authorization, that the office
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

determines would otherwise regulate a sandbox participant. The
term includes the Pennsylvania Public Utility Commission and the
Pennsylvania Gaming Control Board.
"Applicant." A person that applies to participate in the
regulatory sandbox.
"Blockchain technology." An electronic method for storing
cryptographically secure data in a database or distributed
ledger technology that is decentralized, consensus-based,
mathematically verified and distributed across multiple
locations.
"Consumer." A person that purchases or otherwise enters into
a transaction or agreement to receive an offering under a
demonstration by a sandbox participant.
"Demonstrate" or "demonstration." To temporarily provide an
offering in accordance with the provisions of the program.
"Director." The director of the office.
"Executive Board." The Executive Board of the Commonwealth.
"Financial product or service." Either of the following:
(1) a financial product or financial service that
requires State licensure or registration; or
(2) a financial product, financial service or banking
business that includes a business model, delivery mechanism,
offering of deposit accounts or element that may require
other authorization to act as a financial institution,
enterprise or other entity that is regulated by State law.
"Innovation." The use or incorporation of a new or existing
idea, a new or emerging technology or a new use of existing
technology, including, but not limited to, blockchain
technology, to address a problem, provide a benefit or otherwise
offer a product, production method or service.
20250SB0245PN0894 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

"Insurance product or service." A product or service that is
offered by an insurer that requires State licensure,
registration or other authorization as regulated by State law,
including a product or insurance service that includes a
business model, delivery mechanism or element that requires a
license, registration or other authorization to do an insurance
business, act as an insurance producer or consultant or engage
in insurance adjusting as regulated by State law.
"Offering." A product, production method or service,
including a financial product or service or an insurance product
or service, that includes an innovation.
"Office." The Regulatory Relief Office established under
section 3.
"Product." A commercially distributed good that is:
(1) the result of a production process; and
(2) passed through the distribution channel before
consumption.
"Production." The method or process of creating or obtaining
a good, which may include assembling, breeding, capturing,
collecting, extracting, fabricating, farming, fishing,
gathering, growing, harvesting, hunting, manufacturing, mining,
processing, raising or trapping a good.
"Program." The Regulatory Sandbox Program established under
section 5.
"Regulatory sandbox." A State law that allows a person to
temporarily demonstrate an offering under a waiver or suspension
of a State law, regulation, rule or guidance that would
otherwise apply to the offering.
"Sandbox participant." A person whose application to
participate in the regulatory sandbox is approved in accordance
20250SB0245PN0894 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

with the provisions of this act.
"Service." A commercial activity, duty or labor performed
for a consumer.
Section 3. Regulatory Relief Office.
(a) Establishment.--The Regulatory Relief Office is
established in the Governor's Office.
(b) Director and staff.--The office shall be administered by
a director who shall be appointed by and report to the Governor
and may appoint staff subject to the approval of the Governor.
(c) Duties.--The office shall:
(1) Administer this act.
(2) Administer the program.
(3)