Title 040 | Chapter 012 | Regulation 010REG
PROPOSED
This document is not yet current.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(New Administrative Regulation)
40 KAR 12:010.Regulatory sandbox application process and reporting procedures.
Section 1.
Application.(1)
Persons seeking admission to the General Regulatory Sandbox Program shall submit an application using the "Apply to Kentucky's General Regulatory Sandbox Program application portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(2)
Applicants shall submit additional information or documents for their application within thirty (30) days of any request by KORR. KORR may deny any application if an Applicant fails to timely provide requested information or documents.Section 2.
Application Fee. The nonrefundable application fee for persons seeking admission to the General Regulatory Sandbox Program shall be $100. KORR shall charge the application fee to process each new application.Section 3.
Sandbox Participant Reporting.(1)
Sandbox participants with an active demonstration offering on August 15 of each year shall submit an interim report to KORR on or before September 1st of that same year using the "Submit interim report portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(2)
Sandbox participants shall submit a final report to KORR on or before fifteen (15) days after a demonstration offering ends using the "submit final report portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(3)
Sandbox participants shall submit additional information or documents to supplement their reports with fifteen (15) days of any request by KORR.Section 4.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Apply to Kentucky's General Regulatory Sandbox Program application portal", Aug. 2024;(b)
"Submit interim report portal", Aug. 2024; and(c)
"Submit final report portal", Aug. 2024.(2)
This material shall be inspected, copied, or obtained, subject to copyright law, at the Office of the Attorney General Capital Complex East, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on KORR's Web site, https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: August 14, 2024
FILED WITH LRC: August 14, 2024 at 4:15 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this proposed administrative regulation shall be held on Oct. 22. 2024 at 10:00 a.m. Eastern Time at the Kentucky Office of Attorney General, Kentucky Office of Regulatory Relief, 1024 Capital Center Drive, Room A, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Office in writing at least five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on October 31, 2024. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone 502-696-5408, fax (502) 573-8317, email steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation prescribes the application process to be used by persons seeking admission to the General Regulatory Sandbox Program, establishes the application fee, and prescribes the reporting processes for sandbox participants.
(b) The necessity of this administrative regulation:
This regulation is necessary to provide the methods by which the Office of Attorney General, Kentucky Office of Regulatory Relief (“KORR”), may perform its statutory obligations.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law. KRS 15.266 and 15.268 require the Kentucky Office of Regulatory Relief ("KORR") to promulgate an application to be used by persons seeking admission to the General Regulatory Sandbox Program and to establish an application fee. KRS 15.266(4)(f) authorizes KORR to promulgate administrative regulations concerning the application process, reporting requirements of sandbox participants, and administering the General Regulatory Sandbox Program.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation prescribes the application processes and application fee for persons seeking admission to the General Regulatory Sandbox Program. This administrative regulation establishes the reporting processes for Sandbox participants.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation amendment will affect all persons that seek entrance to the Kentucky Regulatory Sandbox program, Sandbox participants, and KORR.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Persons seeking entrance in the General Regulatory Sandbox Program will be required to comply with the regulation and use the incorporated application processes. Sandbox participants will be required to submit reports under the incorporated requirements. KORR will review submitted applications for compliance with law and review reports submitted by sandbox participants.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
Persons seeking entrance in the General Regulatory Sandbox Program will be required to submit the $100.00 application fee. Sandbox participants will have no cost in using reporting processes. KORR shall incur minor administrative costs to comply with the regulation, which are difficult to estimate at this juncture.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Persons who comply with the regulation and use the incorporated application process will be eligible for admission in the General Regulatory Sandbox Program. KORR benefits by complying with its statutory mandates.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
KORR shall bear administrative costs in implementing this regulation, which are difficult to estimate at this time.
(b) On a continuing basis:
N/A
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The Office of Attorney General shall incur initial costs of funding KORR.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
This regulation will necessitate an increase in fees or funding separate from the legislative creation of KORR.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
KRS 15.266(c) requires KORR to establish an application fee for persons seeking admission to the General Regulatory Sandbox program. This regulation establishes the fee to be one hundred dollars ($100.00).
(9) TIERING: Is tiering applied?
No. This administrative regulation applies equally to all persons applying to the General Regulatory Sandbox Program.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 15.180, 15.266, 15.268.
(2) Identify the promulgating agency and any other affected state units, parts, or divisions:
Kentucky Office of Regulatory Review (“KORR”) is the promulgating agency. The regulation does not affect any other state agencies.
(a) Estimate the following for the first year:
Expenditures:
There are no expenditures to administer this administrative regulation for the first year.
Revenues:
KORR will receive application fees which are difficult to estimate at this time but estimated to be de minimis.
Cost Savings:
There are no anticipated cost savings to administer this administrative regulation for the first year.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
There are no expected expenditures, revenues, or cost savings generated from this administrative regulation in subsequent years.
(3) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The regulation does not affect any local entities.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation will not cause expenditures by local entities for the first year.
Revenues:
Local entities will receive no revenues from this administrative regulation for the first year.
Cost Savings:
Local entities will receive no cost savings from this administrative regulation for the first year.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
This administrative regulation will generate no expenditures, revenues, or cost savings for local entities in subsequent years.
(4) Identify additional regulated entities not listed in questions (2) or (3):
There are no additional regulated entities affected by this regulation.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation will not cause any additional regulated entities to have any expenditures for the first year.
Revenues:
No additional regulated entities will receive any revenues from this administrative regulation for the first year.
Cost Savings:
No additional regulated entities will receive any cost savings from this administrative regulation for the first year.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
This administrative regulation will not cause local entities to have expenditures, revenues, or cost savings in subsequent years.
(5) Provide a narrative to explain the:
(a) Fiscal impact of this administrative regulation:
KORR’s operational costs result from duties created by statute, not this administrative regulation. The regulation creates an online application for businesses and does not affect other governmental agencies or local government or local entities. The licensing fees received by KORR under this regulation will be de minimis. For these reasons, the regulation is not expected to have any significant fiscal impact.
(b) Methodology and resources used to determine the fiscal impact:
KORR used a quantitative methodology analysis based on history of administrative agencies which license individuals in a specific subject area and the resulting facts from this regulation. KORR also consulted with the Utah Office of Regulatory Relief which is the only other state with a regulatory sandbox program. KORR used staff resources in determining the fiscal impact.
(6) Explain:
(a) Whether this administrative regulation will have an overall negative or adverse major economic impact to the entities identified in questions (2) - (4). ($500,000 or more, in aggregate)
There is not an expected major economic impact from this regulation for KORR, any other state agency, any local entities, or additional regulated entities.
(b) The methodology and resources used to reach this conclusion:
KORR used a quantitative methodology analysis based on history of administrative agencies which license individuals in a specific subject area and resulting facts from this regulation. KORR used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.
OFFICE OF ATTORNEY GENERAL
Kentucky Office of Regulatory Relief
(New Administrative Regulation)
40 KAR 12:010.Regulatory sandbox application process and reporting procedures.
Section 1.
Application.(1)
Persons seeking admission to the General Regulatory Sandbox Program shall submit an application using the "Apply to Kentucky's General Regulatory Sandbox Program application portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(2)
Applicants shall submit additional information or documents for their application within thirty (30) days of any request by KORR. KORR may deny any application if an Applicant fails to timely provide requested information or documents.Section 2.
Application Fee. The nonrefundable application fee for persons seeking admission to the General Regulatory Sandbox Program shall be $100. KORR shall charge the application fee to process each new application.Section 3.
Sandbox Participant Reporting.(1)
Sandbox participants with an active demonstration offering on August 15 of each year shall submit an interim report to KORR on or before September 1st of that same year using the "Submit interim report portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(2)
Sandbox participants shall submit a final report to KORR on or before fifteen (15) days after a demonstration offering ends using the "submit final report portal" available at https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.(3)
Sandbox participants shall submit additional information or documents to supplement their reports with fifteen (15) days of any request by KORR.Section 4.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"Apply to Kentucky's General Regulatory Sandbox Program application portal", Aug. 2024;(b)
"Submit interim report portal", Aug. 2024; and(c)
"Submit final report portal", Aug. 2024.(2)
This material shall be inspected, copied, or obtained, subject to copyright law, at the Office of the Attorney General Capital Complex East, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available on KORR's Web site, https://www.ag.ky.gov/Resources/Pages/Office-of-Regulatory-Relief.aspx.STEPHEN B. HUMPHRESS, Executive Director
RUSSELL COLEMAN, Attorney General
APPROVED BY AGENCY: August 14, 2024
FILED WITH LRC: August 14, 2024 at 4:15 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this proposed administrative regulation shall be held on Oct. 22. 2024 at 10:00 a.m. Eastern Time at the Kentucky Office of Attorney General, Kentucky Office of Regulatory Relief, 1024 Capital Center Drive, Room A, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this Office in writing at least five (5) working days prior to the hearing of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through 11:59 p.m. on October 31, 2024. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Stephen B. Humphress, Executive Director, Kentucky Office of Regulatory Relief, Kentucky Office of Attorney General, 1024 Capital Center Drive, Suite 200, Frankfort, Kentucky 40601, phone 502-696-5408, fax (502) 573-8317, email steve.humphress@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Stephen B. Humphress
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation prescribes the application process to be used by persons seeking admission to the General Regulatory Sandbox Program, establishes the application fee, and prescribes the reporting processes for sandbox participants.
(b) The necessity of this administrative regulation:
This regulation is necessary to provide the methods by which the Office of Attorney General, Kentucky Office of Regulatory Relief (“KORR”), may perform its statutory obligations.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
KRS 15.180 directs the Attorney General to promulgate administrative regulations that will facilitate the performance of duties vested in the Attorney General and the Department of Law. KRS 15.266 and 15.268 require the Kentucky Office of Regulatory Relief ("KORR") to promulgate an application to be used by persons seeking admission to the General Regulatory Sandbox Program and to establish an application fee. KRS 15.266(4)(f) authorizes KORR to promulgate administrative regulations concerning the application process, reporting requirements of sandbox participants, and administering the General Regulatory Sandbox Program.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation prescribes the application processes and application fee for persons seeking admission to the General Regulatory Sandbox Program. This administrative regulation establishes the reporting processes for Sandbox participants.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This regulation amendment will affect all persons that seek entrance to the Kentucky Regulatory Sandbox program, Sandbox participants, and KORR.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Persons seeking entrance in the General Regulatory Sandbox Program will be required to comply with the regulation and use the incorporated application processes. Sandbox participants will be required to submit reports under the incorporated requirements. KORR will review submitted applications for compliance with law and review reports submitted by sandbox participants.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
Persons seeking entrance in the General Regulatory Sandbox Program will be required to submit the $100.00 application fee. Sandbox participants will have no cost in using reporting processes. KORR shall incur minor administrative costs to comply with the regulation, which are difficult to estimate at this juncture.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Persons who comply with the regulation and use the incorporated application process will be eligible for admission in the General Regulatory Sandbox Program. KORR benefits by complying with its statutory mandates.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
KORR shall bear administrative costs in implementing this regulation, which are difficult to estimate at this time.
(b) On a continuing basis:
N/A
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The Office of Attorney General shall incur initial costs of funding KORR.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
This regulation will necessitate an increase in fees or funding separate from the legislative creation of KORR.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
KRS 15.266(c) requires KORR to establish an application fee for persons seeking admission to the General Regulatory Sandbox program. This regulation establishes the fee to be one hundred dollars ($100.00).
(9) TIERING: Is tiering applied?
No. This administrative regulation applies equally to all persons applying to the General Regulatory Sandbox Program.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 15.180, 15.266, 15.268.
(2) Identify the promulgating agency and any other affected state units, parts, or divisions:
Kentucky Office of Regulatory Review (“KORR”) is the promulgating agency. The regulation does not affect any other state agencies.
(a) Estimate the following for the first year:
Expenditures:
There are no expenditures to administer this administrative regulation for the first year.
Revenues:
KORR will receive application fees which are difficult to estimate at this time but estimated to be de minimis.
Cost Savings:
There are no anticipated cost savings to administer this administrative regulation for the first year.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
There are no expected expenditures, revenues, or cost savings generated from this administrative regulation in subsequent years.
(3) Identify affected local entities (for example: cities, counties, fire departments, school districts):
The regulation does not affect any local entities.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation will not cause expenditures by local entities for the first year.
Revenues:
Local entities will receive no revenues from this administrative regulation for the first year.
Cost Savings:
Local entities will receive no cost savings from this administrative regulation for the first year.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
This administrative regulation will generate no expenditures, revenues, or cost savings for local entities in subsequent years.
(4) Identify additional regulated entities not listed in questions (2) or (3):
There are no additional regulated entities affected by this regulation.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation will not cause any additional regulated entities to have any expenditures for the first year.
Revenues:
No additional regulated entities will receive any revenues from this administrative regulation for the first year.
Cost Savings:
No additional regulated entities will receive any cost savings from this administrative regulation for the first year.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
This administrative regulation will not cause local entities to have expenditures, revenues, or cost savings in subsequent years.
(5) Provide a narrative to explain the:
(a) Fiscal impact of this administrative regulation:
KORR’s operational costs result from duties created by statute, not this administrative regulation. The regulation creates an online application for businesses and does not affect other governmental agencies or local government or local entities. The licensing fees received by KORR under this regulation will be de minimis. For these reasons, the regulation is not expected to have any significant fiscal impact.
(b) Methodology and resources used to determine the fiscal impact:
KORR used a quantitative methodology analysis based on history of administrative agencies which license individuals in a specific subject area and the resulting facts from this regulation. KORR also consulted with the Utah Office of Regulatory Relief which is the only other state with a regulatory sandbox program. KORR used staff resources in determining the fiscal impact.
(6) Explain:
(a) Whether this administrative regulation will have an overall negative or adverse major economic impact to the entities identified in questions (2) - (4). ($500,000 or more, in aggregate)
There is not an expected major economic impact from this regulation for KORR, any other state agency, any local entities, or additional regulated entities.
(b) The methodology and resources used to reach this conclusion:
KORR used a quantitative methodology analysis based on history of administrative agencies which license individuals in a specific subject area and resulting facts from this regulation. KORR used staff resources in reaching the conclusion that no overall negative or adverse major economic impact results from this administrative regulation.