ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: COM DP 9-0-0-1

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2906: financial technology; digital assets program

Sponsor: Representative Weninger, LD 13

Caucus & COW

Overview

Renames the Regulatory Sandbox Program (Program) to the Financial Technology, Digital Assets and Blockchain Sandbox Program.

History

The Attorney General (AG) administers and oversees the Program, which enables persons to obtain limited access to Arizona's market to test innovative financial products or services or other innovations without obtaining a license or other authorization. An innovation is the use or incorporation of new or emerging technology or the reimagination of uses for existing 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 AG to have a comparable widespread offering in Arizona.

An applicant for the Program must demonstrate to the AG adequate understanding of the innovation and a sufficient plan to test, monitor and assess the innovation while ensuring consumers are protected from a test's failure. Upon application approval, an applicant is deemed a Program participant and given 24 months to test the innovation. Statute outlines testing restrictions, including limiting the number of consumers that may test the innovation.

The Program participant must retain records, documents and data produced in the ordinary course of business. If an innovation fails before the end of the testing period, the participant must notify the AG and report on actions taken to ensure consumers have not been harmed because of the innovation's failure. At least 30 days before the 24-month testing period ends, the participant must notify the AG that the participant will exit the Program and cease offering any innovative products or services within 60 days after the 24-month testing period ends or seek an extension in order to pursue a license or other authorization required by law (Title 41, Chapter 55, A.R.S.).

Provisions

1.   Renames the "Regulatory Sandbox Program" to the "Financial Technology, Digital Assets and Blockchain Sandbox Program." (Sec. 4)

2.   Defines digital asset and financial technology, digital assets and blockchain sandbox. (Sec. 3)

3.   Removes the definition for regulatory sandbox. (Sec. 3)

4.   Makes conforming changes. (Sec. 1-12)

 

 

 

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                  HB 2906

Initials PB           Page 0 Caucus & COW

 

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