HB 176: Establish a universal regulatory sandbox program

As Passed by the House

136th General Assembly

Regular Session
Sub. H. B. No. 176
2025-2026

Representatives Fischer, Lorenz

Cosponsors: Representatives Ferguson, Newman, Santucci, Thomas, D., Gross, Johnson, Workman, Abrams, Barhorst, Brennan, Brewer, Claggett, Daniels, Dovilla, Hall, D., Hall, T., Humphrey, Jarrells, John, LaRe, Lett, Mathews, A., Mathews, T., McClain, Peterson, Plummer, Robb Blasdel, Roemer, Rogers, Salvo, Schmidt, Sigrist, Sims, Stephens, Swearingen, Williams

To enact sections 1357.01, 1357.02, 1357.03, 1357.04, 1357.05, 1357.06, 1357.07, 1357.08, 1357.09, 1357.10, 1357.11, and 1357.12 of the Revised Code to create a regulatory relief division within the common sense initiative office and to establish a universal regulatory sandbox program.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.

That sections 1357.01, 1357.02, 1357.03, 1357.04, 1357.05, 1357.06, 1357.07, 1357.08, 1357.09, 1357.10, 1357.11, and 1357.12 of the Revised Code be enacted to read as follows:

Sec. 1357.01.

A

"Advisory committee" means the universal regulatory sandbox program advisory committee established under section 1357.03 of the Revised Code.

B

"Applicable agency" means a department or agency of the state that by law regulates a business activity and persons engaged in such business activity, including the issuance of licenses or other types of authorization, which the regulatory relief division determines would otherwise regulate a sandbox participant.

C

"Business day" means any day of the week, excluding Saturday, Sunday, and a legal holiday, as defined in section 1.14 of the Revised Code.

D

"Common sense initiative office" means the office established by the governor under section 107.61 of the Revised Code.

E

"Consumer" means a person that purchases or otherwise enters into a transaction or agreement to receive an offering pursuant to a demonstration by a sandbox participant.

F

"Demonstrate" or "demonstration" means to temporarily provide an offering in accordance with the provisions of the universal regulatory sandbox program described in this chapter.

G

"Innovation" means the use or incorporation of a new idea, a new or emerging technology, or a new use of existing technology to address a problem, provide a benefit, or otherwise offer a product, production method, or service.

H

"Innovative offering" means an offering that includes an innovation.

I (1)

"Product" means a commercially distributed good that is all of the following:

1. Tangible personal property;
2. The result of a production process; and
3. Passed through the distribution channel before consumption.

I (2)

"Product" does not include either of the following:

1. Beer or wine, as defined in section 4301.01 of the Revised Code;
2. Motor vehicles, as defined in section 4501.01 of the Revised Code.

J

"Production" means the method or process of creating or obtaining a good, which may include assembling, breeding, capturing, collecting, extracting, fabricating, farming, fishing, gathering, growing, harvesting, hunting, manufacturing, mining, processing, raising, or trapping a good.

K

"Sandbox participant" means a person whose application to participate in the universal regulatory sandbox is approved in accordance with this chapter.

L

"Service" means any commercial activity, duty, or labor performed for another person, except for either of the following:

1. The activities regulated by Title XLIII of the Revised Code to the extent that those activities pertain to the distribution or sale of beer or wine;
2. The activities regulated by Chapter 4517. of the Revised Code.

Sec. 1357.02.

A

The common sense initiative office shall establish a universal regulatory sandbox program in consultation with applicable agencies to enable a person to obtain limited access to the market in this state to test products or services without obtaining any other license or authorization that otherwise would be required.

B

The governor shall establish a regulatory relief division within the common sense initiative office for the purposes of administering this chapter and acting as a liaison between private businesses and applicable agencies to identify state laws or regulations that could potentially be waived or suspended under the universal regulatory sandbox program.

C

The regulatory relief division may do all of the following:

1. Identify state laws and regulations that unnecessarily inhibit the creation and success of new companies or industries in this state and provide recommendations to the governor and the general assembly on modifying such state laws and regulations;
2. Create a framework for analyzing the risk level to the health, safety, and financial well-being of consumers as a result of permanently removing or temporarily waiving laws and regulations that inhibit the creation or success of new and existing companies or industries in this state;
3. Propose potential reciprocity agreements between states that use or are proposing to use similar universal regulatory sandbox programs as described in this chapter or Chapter 1355. of the Revised Code;
4. Adopt rules in accordance with Chapter 119. of the Revised Code as necessary to do either of the following:
   1. Administering the universal regulatory sandbox program, including the application process and the reporting requirements of sandbox participants;
   2. Cooperating and consulting with the superintendent of financial institutions respecting the regulatory sandbox program authorized by Chapter 1355. of the Revised Code.

Sec. 1357.03.

A

The universal regulatory sandbox program advisory committee is established within the common sense initiative office. The committee shall advise and make recommendations to the regulatory relief division as described in this chapter.

B

The committee shall consist of the following members:

1. Six members who represent business interests from a variety of industry clusters, appointed by the governor;
2. Three members who represent state agencies that regulate businesses, appointed by the governor;
3. One member of the senate, appointed by the president of the senate;
4. One member of the house of representatives, appointed by the speaker of the house of representatives.

C (1)

Members of the committee shall be appointed not later than thirty days after the effective date of this section. Members of the committee serve at the pleasure of the member's appointing authority. Any vacancy in the membership of the committee shall be filled within sixty days after the vacancy occurs in the same manner as the original appointment.

C (2)

Of the initial appointments made by the governor to the committee:

1. Three of the members described in division (B) (1) of this section and two of the members described in division (B) (2) of this section shall serve for a term ending the first day of the second calendar year that begins after the effective date of this section;
2. Three of the members described in division (B) (1) of this section and one of the members described in division (B) (2) of this section shall serve for a term ending the first day of the fourth calendar year that begins after the effective date of this section.

C (3)

After the initial appointments, terms for all members appointed by the governor shall be four years, with each term ending on the same day of the same month as did the term it succeeds.

C (4)

Legislative members of the committee shall serve terms of two years or for the remainder of the member's legislative term, whichever is less.

D

Members of the committee shall serve without compensation but may be reimbursed for expenses actually incurred in the performance of their duties, within the limits of funds available to the committee for such purposes.

E

The governor shall select a chairperson for the committee on an annual basis. The committee shall meet at the call of the chairperson. The initial meeting shall not be later than thirty days after the last member is appointed. A majority of the members of the committee constitutes a quorum for the transaction of the business of the committee.

F

The staff of the regulatory relief division shall provide technical and administrative support as needed by the committee.

G

The committee is not a public body for the purposes of section 121.22 of the Revised Code.

Sec. 1357.04.

On or before October 1 of the first year that begins after the effective date of this section, and annually thereafter, the common sense initiative office shall submit a written report on the activities of the regulatory relief division to the general assembly in accordance with section 101.68 of the Revised Code. The report shall include all of the following:

1. Information regarding each participant in the universal regulatory sandbox program, including which industry each participant represents and the anticipated or actual cost savings that each participant experiences;
2. Recommended changes to laws or regulations that the regulatory relief division determines unnecessarily inhibit the creation and success of new companies or industries;
3. Information on the universal regulatory sandbox program's impact on consumer outcomes;
4. Recommended changes to the universal regulatory sandbox program or the regulatory relief division.

Sec. 1357.05.

A

A person that seeks to participate in the universal regulatory sandbox program shall apply to the regulatory relief division in a form and manner prescribed by the division. The application shall, at minimum, include all of the following:

1. Confirmation that the applicant is subject to the jurisdiction of the common sense initiative office, which may be demonstrated through incorporation, residency, an agreement with the office by which the applicant agrees to be subject to the laws and courts of this state relating to any action arising out of the applicant's demonstration of a product or service in the universal regulatory sandbox, or otherwise;
2. Confirmation that the applicant has established a physical or virtual location in the state, from which the demonstration of an innovative offering will be developed and performed and where all required records, documents, and data will be maintained;
3. Relevant personal and contact information for the applicant, including legal names, addresses, telephone numbers, electronic mail addresses, web site addresses, and other information that may be required by the regulatory relief division;
4. Disclosure of criminal convictions, if any, of the applicant and other participating personnel;
5. A description of the innovative offering to be demonstrated, including statements regarding all of the following:
   1. How the offering is subject to licensing, legal prohibition, or other authorization requirements outside of the universal regulatory sandbox;
   2. Each law or regulation that the applicant seeks to have waived or suspended while participating in the universal regulatory sandbox program;
   3. How the offering would benefit consumers;
   4. How the offering is different from other offerings available in this state;
   5. What risks might exist for consumers that use or purchase the offering;
   6. How participating in the regulatory sandbox would enable a successful demonstration of the offering;
   7. A description of the proposed demonstration plan, including estimated time periods for beginning and ending the demonstration;
   8. Recognition that the applicant will be subject to all laws and regulations pertaining to the applicant's offering after conclusion of the demonstration;
   9. How the applicant will end the demonstration and protect consumers if the demonstration fails.
6. A list of the state agencies that regulate the applicant's business;
7. Other information that may be required by the regulatory relief division.

Sec. 1357.06.

A (1)

Subject to division (A) (2) of this section, not later than thirty business days after the date on which an applicable agency receives a complete application under section 1357.05 of the Revised Code for review, the applicable agency shall provide a written report to the regulatory relief division of the applicable agency's findings. The report shall include both of the following:

1. A description of any identifiable, likely, and significant harm to the health, safety, or financial well-being of consumers that the law or regulation the applicant seeks to waive or suspend protects against;
2. A recommendation to the regulatory relief division that the applicant either be admitted or denied entrance into the universal regulatory sandbox.

As Passed by the House

136th General Assembly

Sub. H. B. No. 176

2025-2026