KRS 15.274: Denial of application if applicant culpable in crime bearing relationship to

participation -- Notice of approval.

(1) The director shall deny an application for participation in the regulatory sandbox if

the applicant or any person who see ks to participate with the applicant in

demonstrating an offering has been convicted, entered a plea of nolo contendere, or

entered a plea of guilty or nolo contendere held in abeyance, for any crime

involving significant theft, fraud, or dishonesty if the crime bears a significant

relationship to the applicant's or other participant's ability to safely and competently

participate in the regulatory sandbox.

(2) When an applicant is approved for participation in the regulatory sandbox, the

director may provi de notice of the approval to competitors of the applicant and to

the public.