Amends TCA Title 4; Title 56, Chapter 1; Title 62 and Title 63.

This bill creates, within the department of commerce and insurance, the regulatory innovation sandbox program, under which the commissioner may issue a regulatory innovation FastTrack to license a person (an individual or an entity) to pilot test an innovation. This bill sets out in detail the process for applying for a regulatory innovation FastTrack, such as information to be included in the application. The information to be provided in the application includes: a description of the innovation, including the scope of the regulatory innovation FastTrack that the applicant seeks, such as laws or rules the applicant believes the innovation should not be subject to as the innovation was not considered when the law or rule was created; a description of how the innovation would benefit consumers and how it is different from other products, services, business models, or delivery mechanisms already in operation in this state; and a description of how a regulatory innovation FastTrack would enable a successful pilot test. This bill authorizes the commissioner to collect a regulatory innovation waiver application fee in an amount not to exceed the license fee that would otherwise be required to offer the innovation. The commissioner will not issue a regulatory innovation FastTrack under this bill unless the commissioner determines, in the commissioner's sole discretion, that the applicant has demonstrated that: (1) The applicant has an adequate understanding of the innovation; (2) The applicant has an adequate plan to pilot test, monitor, and assess the innovation; and (3) The pilot test will adequately protect consumer health and safety. When issuing a regulatory innovation waiver, the commissioner is only authorized to waive statutes and rules that are subject to enforcement by the commissioner. If the commissioner approves a person's application for a regulatory innovation FastTrack, then the person is deemed an innovation participant. Innovation participants are exempt only from the statutory and regulatory requirements that are stated clearly in the regulatory innovation waiver. An innovation participant may not pilot test more than three innovations at the same time. An innovation participant will have 24 months from the issuance of the regulatory innovation FastTrack to pilot test the innovation for which the application was granted. This bill specifies that innovation participants are not exempt from the Tennessee Consumer Protection Act or any federal law. Innovation participants are subject to the civil penalty provisions that would otherwise have been applicable to the innovation participant under licensure laws and rules if the innovation participant had not received a regulatory innovation FastTrack. This bill will not create a private cause of action against the state. This bill requires an innovation participant to disclose to consumers, prior to marketing an innovation to consumers, certain information including the fact that the innovation is authorized pursuant to the regulatory innovation waiver and may not be required to comply with all statutory and regulatory requirements. This bill requires the innovation participant to do the following, at least 30 days prior to the end of the pilot period: (1) Notify the commissioner that the innovation participant will exit the market at the end of the pilot test period. However, if the pilot test is for an insurance product, then the innovation participant must cease selling the product at the end of the pilot test period, and must mail or deliver to the named insured, at the address shown in the policy, not less than thirty-days' notice of the termination of the policy; (2) Seek a regulatory innovation FastTrack pilot test period extension (as detailed in this bill); or (3) Pursue a license or other authorization required by law. Application materials, documents, and other records submitted to the department pursuant to this bill, other than information regularly submitted with an application for licensure, will be considered proprietary and containing trade secrets. All such records and internal departmental records regarding submissions made pursuant to this bill will be confidential and privileged, and not subject to public inspection, subpoena, or discovery or admission as evidence in a private civil action. This bill requires innovation participants to submit reports to the commissioner as frequently as the commissioner requires, but no less than annually. This bill details the information that must be included in the reports. Also, if an innovation fails to comply with the terms of the regulatory innovation FastTrack before the end of the pilot test period, then the innovation participant must notify the commissioner and report on actions taken to ensure consumers have not been harmed as a result of the innovation's failure to comply with those terms. The commissioner may terminate a regulatory innovation FastTrack at any time if the commissioner determines: (1) The innovation is endangering, or has the potential to endanger, public health or safety; or (2) The innovation participant is violating the terms of the regulatory innovation FastTrack. This bill requires the commissioner to annually provide to the chairs of the government operations committees of the senate and house, and to the legislative librarian, an annual report of all active and expired innovation participants. During a review of the report, the government operations committees must consider, and make a recommendation to the speaker, whether the state laws that would otherwise apply to the innovation participant should: (1) Remain unchanged; (2) Be repealed so as to avoid inhibiting the innovation participant's success or that of future similar innovations in the state; or (3) Be amended to be more narrowly tailored and provide a less restrictive means to protect consumer health and safety. For the purpose of promulgating rules, this bill will take effect upon becoming a law. For all other purposes, this bill will take effect January 1, 2022.