KRS 15.276: Demonstration of offering -- Action in accordance with licenses in other

jurisdictions -- Immunity from actions and charges during demonstration

period -- Criminal liability -- Termination of participation -- Liability for

business losses and expenses.

(1) Once an application is approved by the regulatory relief office, the sandbox

participant has twelve (12) months after the day on which the application was

approved to demonstrate the offering described in the sandbox participant's

application.

(2) An offering that is demonstrated within the regulatory sandbox shall be subject to

the following:

(a) Each consumer shall be a resident of the state; and

(b) No administrative regulation shall be suspended to preclude any person from

recovering civil liability damages or workers' compensation damages from the

sandbox participant in the event that person is harmed as a result of the

sandbox participant's product, conduct, or both.

(3) This section shall not restrict a sandbox participant who holds a license or other

authorization in another jurisdiction from acting in accordance with that license or

other authorization.

(4) A sandbox participant is deemed to possess an appropriate license or other

authorization under the laws of the state for the purposes of any provision of federal

law requiring licensure or other authorization by the state.

(5) Subject to subsection (6) of this section:

(a) During the demonstration period, a sandbox participant shall not be subject to

the enforcement of administrat ive regulations identified in the written

agreement between the regulatory relief office and the sandbox pursuant to

KRS 15.272(6);

(b) A prosecutor shall not file or pursue charges pertaining to an administrative

regulation identified in the written agree ment between the regulatory relief

office and the sandbox participant described in KRS 15.272(6) that occurs

during the demonstration period; and

(c) A state agency shall not file or pursue any punitive action against a sandbox

participant, including a fin e or license suspension or revocation, for the

violation of an administrative regulation that:

1. Is identified as being waived or suspended in the written agreement

between the regulatory relief office and the sandbox participant

described in KRS 15.272(6); and

2. Occurs during the demonstration period.

(6) Notwithstanding any other provision of KRS 1 5.262 to 15.278, a sandbox

participant shall not have immunity related to any criminal offense committed

during the sandbox participant's participation in the regulatory sandbox.

(7) By written notice, the regulatory relief office may end a sandbox partici pant's

participation in the regulatory sandbox at any time and for any reason, including if

the director determines that a sandbox participant is not operating in good faith to

bring an innovative offering to market.

(8) The regulatory relief office and th e employees of the regulatory relief office shall

not be liable for any business losses or the recouping of application expenses or

other expenses related to the regulatory sandbox, including for:

(a) Denying an applicant's application to participate in th e regulatory sandbox for

any reason; or

(b) Ending a sandbox participant's participation in the regulatory sandbox at any

time and for any reason.