KRS 304.3-720: One-year period for beta test -- Extension by commissioner -- Terms and

conditions -- Early termination -- Cease and desist order -- Appeal.

(1) The time period for a beta test shall be one (1) year. The time period may be

extended by the com missioner in the notice of acceptance for a period that is not

longer than one (1) year if a request is made in accordance with KRS 304.3 -

705(1)(e).

(2) During the beta test, the participant and any clients of the participant shall:

(a) Comply with all ter ms and conditions set forth in the limited no -action letter;

and

(b) Provide the department with all documents, data, and information requested

by the commissioner.

(3) (a) For any violation of the terms or conditions set forth in the limited letter, the

commissioner may:

1. Issue an order terminating the beta test and the safe harbor of the limited

letter before the time period set forth in the limited letter has expired;

and

2. Impose a fine of not more than two thousand dollars ($2,000) per

violation.

(b) The commissioner may also issue an order under paragraph (a)1. of this

subsection if, following receipt of information or complaints, the

commissioner determines the beta test is causing consumer harm.

(4) (a) The commissioner may issue an order requirin g a client to cease and desist

any activity violating the terms or conditions set forth in the limited letter.

(b) The issuance of a cease and desist order to one (1) client shall not otherwise

impact the ability of the participant or any other clients to continue activities

relating to the innovation in a manner compliant with the requirements of the

limited letter.

(5) A participant or client may request a hearing on any order issued under this section

pursuant to KRS 304.2-310.