Bill Text: MS HB1055 | 2022 | Regular Session | Introduced
Bill Title: Regulatory Sandbox Agricultural Innovation Pilot Program; establish.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2022-02-01 - Died In Committee [HB1055 Detail]
Download: Mississippi-2022-HB1055-Introduced.html
MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Agriculture
By: Representatives Owen, McCarty
House Bill 1055
AN ACT TO ESTABLISH THE "REGULATORY SANDBOX AGRICULTURAL INNOVATION PILOT PROGRAM ACT"; TO CREATE AN AGRICULTURAL REGULATORY SANDBOX PROGRAM IN THE MISSISSIPPI DEPARTMENT OF AGRICULTURE AND COMMERCE, WHICH ALLOWS A PARTICIPANT TO TEMPORARILY TEST INNOVATIVE AGRICULTURAL PRODUCTS OR SERVICES ON A LIMITED BASIS WITHOUT OTHERWISE BEING LICENSED OR AUTHORIZED TO ACT UNDER THE LAWS OF THE STATE; TO PRESCRIBE THE DUTIES OF THE DEPARTMENT IN ADMINISTERING THE AGRICULTURAL REGULATORY SANDBOX PILOT PROGRAM, TO PRESCRIBE THE PROCEDURES TO BE FOLLOWED BY APPLICANTS SEEKING APPROVAL FOR PARTICIPATION IN THE AGRICULTURAL REGULATORY SANDBOX PILOT PROGRAM, TO ESTABLISH TIMELINES FOR SUBMISSION OF APPLICATION BY APPLICANTS AND FOR THE DEPARTMENT TO RESPOND TO SUCH APPLICATIONS; TO PROVIDE AN APPEALS PROCESS FOR APPLICANTS WHOSE APPLICATION ARE DENIED BY THE DEPARTMENT; TO REQUIRE APPLICANTS APPROVED FOR PARTICIPATION IN THE PROGRAM TO PROVIDE CERTAIN NOTICE AND ASSURANCES TO CONSUMER; TO ESTABLISH THE MAXIMUM DURATION OF AN AGRICULTURAL REGULATORY SANDBOX TESTING PERIOD; TO REQUIRE AN AGRICULTURAL SANDBOX PARTICIPANT TO RETAIN RECORDS, DOCUMENTS AND DATA PRODUCED IN THE ORDINARY COURSE OF BUSINESS REGARDING AN INNOVATIVE AGRICULTURAL PRODUCT OR SERVICE TESTED IN THE AGRICULTURAL REGULATORY SANDBOX; TO AUTHORIZE THE DEPARTMENT TO TERMINATE AN APPLICANT'S PARTICIPATION IN THE AGRICULTURAL REGULATORY SANDBOX AT ANY TIME AND FOR ANY REASON; TO REQUIRE THE DEPARTMENT TO PROVIDE, BY OCTOBER 1, AN ANNUAL REPORT TO PEER WITH INFORMATION REGARDING EACH AGRICULTURAL SANDBOX PARTICIPANT RECOMMENDATIONS ON THE EFFECTIVENESS OF THE AGRICULTURAL REGULATORY SANDBOX PROGRAM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Regulatory Sandbox Agricultural Innovation Pilot Program Act."
SECTION 2. As used in this section, the following words shall have the meanings unless the context clearly requires otherwise:
(a) "Applicable agency" means a department or agency of the state which by law regulates certain types of agricultural-related business activity in the state and persons engaged in such agricultural-related business activity. For purposes of this act, regulation includes the issuance of licenses or any other types of authorization, which the department determines would otherwise regulate an agricultural specific sandbox participant.
(b) "Applicant" means an individual or entity that is applying to participate in the agricultural specific regulatory sandbox.
(c) "Consumer" means a person that purchases or otherwise enters into a transaction agreement to receive an innovative agricultural specific product or service that is being tested by an agricultural specific regulatory sandbox participant.
(d) "Department" means the Mississippi Department of Agriculture and Commerce, which shall be responsible for overseeing the agricultural-specific sandbox program.
(e) "Innovation" means the use or incorporation of a new business model or technology, to address a problem, provide a benefit, or otherwise offer a product, service, business model, or delivery mechanism that is not known by the department to have a comparable widespread offering in this state.
(f) "Innovative agricultural product or service" means an agricultural product or agricultural service that includes an innovation.
(g) "Agricultural product or service" means an agricultural product or service that requires state licensure, registration, or other authorization as regulated by any section in Title 69, Mississippi Code of 1972, including an agricultural specific product or agricultural service that includes a business model, delivery mechanism, or element that requires a license, registration, or other authorization to do an agricultural specific business, act as an agricultural producer or consultant.
(h) "Agricultural Regulatory Sandbox" means the Agricultural Regulatory Sandbox Program created by Section 69-1-376, which allows a person to temporarily test an innovative agricultural product or service on a limited basis without otherwise being licensed or authorized to act under the laws of this state.
(i) "Agricultural sandbox participant" means a person whose application to participate in the agricultural regulatory sandbox is approved in accordance with the provisions of this chapter.
(j) "Test" means to provide an innovative agricultural product or service in accordance with the provisions of this chapter.
SECTION 3. (1) The Mississippi Department of Agriculture and Commerce shall establish an Agricultural Regulatory Sandbox Program in accordance with the "Regulatory Sandbox Agricultural Innovation Pilot Program Act." In administering the agricultural regulatory sandbox, the department:
(a) Shall consult with each applicable agency;
(b) Shall establish a program to enable a person to obtain limited access to the market in this state to test an innovative agricultural product or service without obtaining a license or other authorization that might otherwise be required;
(c) May enter into agreements with or follow the best practices of the Consumer Financial Protection Bureau or other states that are administering similar programs; and
(d) May not approve participation in the agricultural regulatory sandbox by an applicant or any other participant who has been convicted, entered a plea of nolo contendere, or entered a plea of guilty or nolo contendere held in abeyance for a serious crime:
(i) Involving theft, fraud, or dishonesty; or
(ii) That bears a substantial relationship to the applicant's or participant's ability to safely or competently participate in the agricultural regulatory sandbox program.
(2) An applicant for the agricultural regulatory sandbox shall provide to the department an application in a form prescribed by the department that:
(a) Demonstrates the applicant is subject to the jurisdiction of this state.
(b) Demonstrates the applicant has established a physical or virtual location that is adequately accessible to the department, from which testing will be developed and performed, and where all required records, documents, and data will be maintained.
(c) Contains relevant personal and contact information for the application, including legal names, addresses, telephone numbers, email addresses, website addresses, and other information required by the department;
(d) Discloses criminal conviction of the applicant or other participating personnel, if any;
(e) Demonstrates that the applicant has the necessary personnel, financial and technical expertise, access to capital, and develop a plan to test, monitor, and assess the innovative agricultural product or service.
(f) Contains a description of the innovative agricultural product or service to be tested, including statements regarding the following:
(i) How the innovative agricultural product or service would benefit consumers;
(ii) What risks may confront consumers that use or purchase the innovative agricultural product or service;
(iii) How participating in the agricultural regulatory sandbox would enable a successful test of the innovative agricultural product or service;
(iv) A description of how the applicant will perform ongoing duties after the test; and
(v) How the applicant will end the test and protect consumers if the test fails, including providing evidence of sufficient liability coverage and financial reserves to protect consumers and to protect against insolvency by the applicant; and
(g) Provides any other required information as determined by the department.
(3) An applicant shall file a separate application for each innovative agricultural product or service the applicant wants to test. Before approving the application, the department may seek any additional information from the applicant that the department determines is necessary.
(4) Subject to subsection (7), not later than ninety (90) days after a complete application is received by the department, the department shall inform the applicant as to whether the application is approved or denied entry into the agricultural regulatory sandbox.
(5) The department and an applicant may mutually agree to extend the ninety-day timeline as described in subsection (6) to allow department to determine whether an application is approved or denied entry into the agricultural regulatory sandbox.
(6) (a) In reviewing an application under this section the department shall consult with, and gain approval from, each applicable agency before admitting an applicant into the agricultural regulatory sandbox.
(b) The consultation with an applicable agency may include seeking information about whether:
(i) The applicable agency has previously issued a licensed or other authorization to the applicant;
(ii) The applicable agency has previously investigated, sanctioned or pursued legal action against the applicant;
(iii) The applicant could obtain a license or other authorization from the applicable agency after exiting the agricultural regulatory sandbox; and
(iv) Certain licensure or other regulations should not be waived even if the applicant is accepted into the agricultural regulatory sandbox.
(7) In reviewing an application under this section, the department shall consider whether a competitor to the applicant is or has been an agricultural sandbox participant, and weigh that as a factor in allowing the applicant to also become an agricultural sandbox participant.
(8) If the department and each applicable agency approve an application admitting an applicant into the agricultural regulatory sandbox, an applicant may become an agricultural sandbox participant.
(9) The department may deny any application submitted under this section, for any reason, at the department's discretion.
(10) If the department denies an application submitted under this section, the department shall provide to the applicant a written description of the reasons for the denial as an agricultural sandbox participant.
(11) (a) The sandbox applicant may appeal any of the following decisions of the sandbox program administrators by filing a written notice of appeal with the circuit court clerk of the county where the applicant resides, or in the case of a nonresident applicant, in the Circuit Court of the First Judicial District of Hinds County, Mississippi:
(i) Denial of participation in the sandbox program;
(ii) Determination of the sandbox program parameters;
(iii) Determination of the extent of the applicant's participation in the market; or
(iv) Other determinations under this section.
(b) The court shall determine all questions of law, including the interpretation of a constitutional or statutory provision or a rule adopted by the sandbox program administrators, without regard to any previous determination that may have been made on the question in any action before the sandbox program administrators.
SECTION 4. (1) If the department approves an application under the Agricultural Regulatory Sandbox Program, the agricultural sandbox participant has no less than twelve (12) months after the date of the application's approval, to test the innovative agricultural product or service described in the agricultural sandbox participant's application. A longer time period may be initially approved at the department's discretion.
(2) An agricultural sandbox participant testing an innovative agricultural product or service within the agricultural regulatory sandbox shall be subject to the following:
(a) Consumers shall be residents of the state;
(b) The department may, on a case-by-case basis:
(i) Specify the maximum number of consumers that may enter into an agreement with the agricultural sandbox participant to use the innovative agricultural product or service; and
(ii) If applicable, specify the maximum number of items for each item that may be offered by an agricultural sandbox participant during the test of the innovative agricultural product or service; and
(c) If a sandbox participant is accepted into the program, the department shall notify other businesses in the industry that a waiver was granted, to provide other companies the opportunity to apply for the same waiver if they so choose.
(3) This section does not restrict an agricultural sandbox participant who holds a license or other authorization in another jurisdiction from acting in accordance with that license or other authorization.
(4) An agricultural sandbox participant is deemed to possess an appropriate license under the laws of this state for the purposes of any provision of federal law requiring state licensure or authorization.
(5) An agricultural sandbox participant who is testing an innovative agricultural product or service shall be exempt from state laws, regulations, licensing requirements or authorization requirements that were identified by the agricultural sandbox participant's application and have been waived in writing by the department.
(6) Notwithstanding any other provision of this chapter to the contrary, an agricultural sandbox participant shall not have immunity related to any criminal offense committed during the agricultural sandbox participant's time in the agricultural regulatory sandbox.
(7) By written notice, the department may terminate an agricultural sandbox participant's participation in the regulatory sandbox at any time and for any reason, including, if the department determines an agricultural sandbox participant is not operating in good faith to bring an innovative agricultural product to market.
(8) The department and the department's employees shall not be liable for any business losses or the recouping of application expenses related to the agricultural regulatory sandbox, including:
(a) Denying an applicant's application to participate in the agricultural regulatory sandbox for any reason; or
(b) Terminating an agricultural sandbox participant's participation in the agricultural regulatory sandbox at any time and for any reason.
(9) No guaranty association in this state may be held liable for business losses or liabilities incurred as a result of activities undertaken by a participant in the
agricultural sandbox.
SECTION 5. (1) Before providing an innovative agricultural product or service to a consumer, an agricultural sandbox participant shall disclose the following to the consumer:
(a) The name and contact information of the agricultural sandbox participant;
(b) That the innovative agricultural product or service is authorized pursuant to the agricultural regulatory sandbox and, if applicable, that the agricultural sandbox participant does not have a license or other authorization to provide an agricultural product or service under state laws that regulate agricultural products outside the agricultural sandbox;
(c) That the innovative agricultural product or service is undergoing testing and may not function as intended and may expose the customer to financial risk;
(d) That the provider of the innovative agricultural product is not immune from civil liability for any losses or damages caused by the innovative agricultural product or service;
(e) That the state does not endorse or recommend the innovative agricultural product or service;
(f) That the innovative agricultural product or service is a temporary test that may be discontinued at the end of the testing period;
(g) The expected end date of the testing period; and
(h) That the consumer may contact the department to file a complaint regarding the innovative agricultural product or service being tested and provide the department's telephone number and website address where a complaint may be filed.
(2) The disclosures required by subsection (1) shall be provided to the consumer in a clear and conspicuous form and, for an Internet or application-based innovative agricultural product or service, a consumer shall acknowledge receipt of the disclosure before a transaction may be completed.
(3) The department may require that an agricultural sandbox participant make additional disclosure to the consumer.
SECTION 6. (1) At least thirty (30) days before the end of the twelve-month agricultural regulatory sandbox testing period, an agricultural sandbox participant shall:
(a) Notify the department that the agricultural sandbox participant will exit the agricultural regulatory sandbox, discontinue the agricultural sandbox participant's test, and will stop offering any innovative agricultural product or service in the agricultural regulatory sandbox within sixty (60) days after the date on which the twelve-month testing period ends; or
(b) Seek an extension in accordance with Section 7 of this act.
(2) Subject to subsection (3), if the department does not receive notification as required by subsection (1), the agricultural regulatory sandbox testing period expires at the end of the twelve-month testing period, and the agricultural sandbox participant shall immediately stop offering each innovative agricultural product or service being tested.
(3) If a test includes offering an innovative agricultural product or service that requires ongoing duties, the agricultural sandbox participant shall continue to fulfill those duties or arrange for another person to fulfill those duties after the date on which the agricultural product or service on which the agricultural sandbox participant exits the agricultural regulatory sandbox.
SECTION 7. (1) Not later than thirty (30) days before the end of the twelve-month regulatory agricultural sandbox testing period, an agricultural sandbox participant may request an extension of the agricultural regulatory sandbox testing period for the purpose of obtaining a license or other authorization.
(2) The department shall grant or deny a request for an extension in accordance with subsection (1) by the end of the twelve-month agricultural regulatory sandbox testing period.
(3) The department may grant an extension in accordance with this section for not more than twelve (12) months after the end of the agricultural regulatory sandbox testing period.
(4) An agricultural sandbox participant that obtains an extension in accordance with this section shall provide the department with a written report every three (3) months which provides an update on efforts to obtain a license or other authorization required by law, including any submitted for licensure or other authorization, rejected applications or issued licenses or other authorizations.
SECTION 8. (1) An agricultural sandbox participant shall retain records, documents and data produced in the ordinary course of business regarding an innovative agricultural product or service tested in the agricultural regulatory sandbox.
(2) If an innovative agricultural product or service fails before the end of a testing period, the agricultural sandbox participant shall notify the department and report on actions taken by the agricultural sandbox participant to ensure consumers have not been harmed as a result of the failure.
(3) The department shall establish quarterly reporting requirements for an agricultural sandbox participant, including information about any customer complaints.
(4) The department may request records, documents and data from an agricultural sandbox participant and, upon the department's request, an agricultural sandbox participant shall make such records, documents and data available for inspection by the department.
(5) If the department determines that an agricultural sandbox participant has engaged in, is engaging in, or is about to engage in any practice or transaction that is in violation of this chapter or that constitutes a violation of state or federal criminal law, the department may remove an agricultural sandbox participant from the agricultural regulatory sandbox.
(6) By October 1, the department shall provide an annual written report to the Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) that provides information regarding each agricultural sandbox participant, and that provides recommendations regarding the effectiveness of the Agricultural Regulatory Sandbox Program.
SECTION 9. Subject to written authorization by the Mississippi Department of Agriculture and Commerce, an applicant approved by the department for participation in the Agricultural Regulatory Sandbox Program shall be permitted to temporarily test innovative agricultural products or services on a limited basis without otherwise being licensed or authorized to act under the laws of the State of Mississippi.
SECTION 10. This act shall take effect and be in force from and after July 1, 2022.
