{"data":{"id":"us-ky/krs-15.272","jurisdiction":"us-ky","citation":"KRS 15.272","heading":"Written report by agency -- Advisory committee review -- Consultation by","body":"regulatory relief office -- Review of application -- Written agreement.\n(1) (a) Subject to paragraphs (c) and (g) of this subsection, no later than thirty (30)\ndays a fter the day on which an applicable agency receives a complete\napplication for review, the applicable agency shall provide a written report to\nthe director of the applicable agency's findings.\n(b) The report shall:\n1. Describe any identifiable, likely, and  significant harm to the health,\nsafety, or financial well -being of consumers that the relevant\nadministrative regulation protects against; and\n2. Make a recommendation to the regulatory relief office that the applicant\neither be admitted or denied entrance into the regulatory sandbox.\n(c) 1. The applicable agency may request an additional five (5) business days\nto deliver the written report by providing notice to the director, and the\nrequest shall automatically be granted.\n2. The applicable agency may onl y request one (1) extension per\napplication.\n(d) If the applicable agency recommends an applicant under this section be\ndenied entrance into the regulatory sandbox, the written report shall include a\ndescription of the reasons for the recommendation, including why a temporary\nwaiver or suspension of the relevant administrative regulations would\npotentially significantly harm the health, safety, or financial well -being of\nconsumers or the public and the likelihood of such harm occurring.\n(e) If the applicable agency determines that the consumer's or public's health,\nsafety, or financial well -being can be protected through less restrictive means\nthan the existing relevant administrative regulations, then the applicable\nagency shall provide a recommendation of how that can be achieved.\n(f) If an applicable agency fails to deliver a written report as described in this\nsubsection, the director shall assume that the applicable agency does not\nobject to the temporary waiver or suspension of the relev ant administrative\nregulations for an applicant seeking to participate in the regulatory sandbox.\n(g) Notwithstanding any other provision of this section, an applicable agency may\nby written notice to the regulatory relief office:\n1. Within the thirty (30) days after the day on which the applicable agency\nreceives a complete application for review, or within thirty -five (35)\ndays if an extension has been requested by the applicable agency, reject\nan application if the applicable agency determines, in the ap plicable\nagency's sole discretion, that the applicant's offering fails to comply with\nstandards or specifications:\na. Required by federal law or regulation; or\nb. Previously approved for use by a federal agency; or\n2. Reject an application preliminarily ap proved by the regulatory relief\noffice, if the applicable agency:\na. Recommends rejection of the application in accordance with\nparagraph (d) of this subsection in the agency's written report; and\nb. Provides in the written notice under this paragraph a de scription of\nthe applicable agency's reasons why approval of the application\nwould create a substantial risk of harm to the health or safety of\nthe public, or create unreasonable expenses for taxpayers in the\nstate.\n(h) If an applicable agency rejects an a pplication under paragraph (g) of this\nsubsection, the regulatory relief office shall not approve the application.\n(2) (a) Upon receiving a written report described in subsection (1) of this section, the\ndirector shall provide the application and the writt en report to the advisory\ncommittee.\n(b) The director may call the advisory committee to meet as needed, but not less\nthan once per quarter if applications are available for review.\n(c) After receiving and reviewing the application and each written report,  the\nadvisory committee shall provide to the director the advisory committee's\nrecommendation as to whether the applicant may be admitted as a sandbox\nparticipant under this section and KRS 15.268.\n(d) As part of the advisory committee's review of each wri tten report, the\nadvisory committee shall use the criteria required for an applicable agency as\ndescribed in subsection (1) of this section.\n(3) (a) In reviewing an application and each applicable agency's written report, the\nregulatory relief office shall  consult with each applicable agency and the\nadvisory committee before admitting an applicant into the regulatory sandbox.\n(b) The consultation with each applicable agency and the consultation with the\nadvisory committee may include seeking information abo ut whether the\napplicable agency has previously:\n1. Issued a license or other authorization to the applicant; and\n2. Investigated, sanctioned, or pursued legal action against the applicant.\n(4) In reviewing an application under this section, the regulatory  relief office and each\napplicable agency shall consider whether a competitor to the applicant is or has\nbeen a sandbox participant and, if so, weigh that as a factor in favor of allowing the\napplicant to also become a sandbox participant.\n(5) In reviewing  an application under this section, the regulatory relief office shall\nconsider whether:\n(a) The applicant's plan will adequately protect consumers from potential harm\nidentified by an applicable agency in the applicable agency's written report;\n(b) The ri sk of harm to consumers is outweighed by the potential benefits to\nconsumers from the applicant's participation in the regulatory sandbox; and\n(c) Certain administrative regulations that regulate an offering shall not be\nwaived or suspended even if the app licant is approved as a sandbox\nparticipant, including applicable antifraud or disclosure provisions.\n(6) (a) An applicant becomes a sandbox participant if the regulatory relief office\napproves the application for the regulatory sandbox and enters into a w ritten\nagreement with the applicant describing the specific administrative\nregulations that may be waived or suspended as part of participation in the\nregulatory sandbox.\n(b) Notwithstanding any other provision of KRS 15.262 to 15.278, the regulatory\nrelief office shall not enter into a written agreement with an applicant that\nwaives or suspends a tax, fee, or charge that is administered by the\nDepartment of Revenue or that is described in KRS Chapters 131 to 144.\n(c) Notwithstanding any other provision of KRS 15.262 to 15.278, the regulatory\nrelief office shall not enter into a written agreement with an applicant that\nwaives or suspends a requirement for licensure or regulation of a health\nfacility by the Cabinet for H ealth and Family Services pursuant to KRS\nChapter 216B.","path":["KRS Chapter 15"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54233","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:33Z","sha256":"b2bf4bf92065bf382d2e1661a9ca80eaae4e25a0a245ebe32ff6ed334ee88a7e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-15.270","next":"us-ky/krs-15.274"},"notice":"GroundRules: Original legal text. Not legal advice."}