(1) If the department approves an application under Section 13-55-103, the sandbox participant has 24 months after the day on which the application was approved to test the innovative product or service described in the sandbox participant's application.

(2) An innovative product or service that is tested within the regulatory sandbox is subject to the following: (a) consumers shall be residents of the state; (b) the department may, on a case by case basis, specify the maximum number of consumers that may transact through or enter into an agreement to use the innovative product or service; (c) for a sandbox participant testing a consumer loan the department may, on a case by case basis, specify the maximum amount of an individual loan that may be issued to an individual consumer and the maximum amount of aggregate loans that may be issued to an individual consumer; and (d) for a sandbox participant testing an innovative product or service that would normally require a money transmission license under Section 7-25-201, the department may, on a case by case basis, specify the maximum amount of a single transaction for an individual consumer and the maximum aggregate amount of transactions for an individual consumer.

(a) consumers shall be residents of the state;

(b) the department may, on a case by case basis, specify the maximum number of consumers that may transact through or enter into an agreement to use the innovative product or service;

(c) for a sandbox participant testing a consumer loan the department may, on a case by case basis, specify the maximum amount of an individual loan that may be issued to an individual consumer and the maximum amount of aggregate loans that may be issued to an individual consumer; and

(d) for a sandbox participant testing an innovative product or service that would normally require a money transmission license under Section 7-25-201, the department may, on a case by case basis, specify the maximum amount of a single transaction for an individual consumer and the maximum aggregate amount of transactions for an individual consumer.

(3) This section does not restrict a sandbox participant who holds a license or other authorization in another jurisdiction from acting in accordance with that license or other authorization.

(4) A sandbox participant is deemed to possess an appropriate license under the laws of the state for the purposes of any provision of federal law requiring state licensure or authorization.

(5) Except as otherwise provided in this chapter, including in Subsections (6) and (7), a sandbox participant that is testing an innovative product or service is not subject to state laws that regulate financial products or services.

(6) (a) The department may only determine that certain state laws that regulate a financial product or service apply to a sandbox participant if the department, at the department's sole discretion, determines that: (i) an applicant's plan to protect consumers will not adequately protect consumers from the harm the state law addresses; and (ii) the benefits to consumers of applying the law outweigh the potential benefits to consumers from increased competition, innovation, and consumer access that waiving the law, in conjunction with the applicant's ability to compensate consumers who may be harmed, would provide. (b) If the department determines that certain state laws that regulate a financial product or service apply to a sandbox participant, the department shall notify the sandbox participant of the specific regulatory provisions that apply to the sandbox participant.

(a) The department may only determine that certain state laws that regulate a financial product or service apply to a sandbox participant if the department, at the department's sole discretion, determines that: (i) an applicant's plan to protect consumers will not adequately protect consumers from the harm the state law addresses; and (ii) the benefits to consumers of applying the law outweigh the potential benefits to consumers from increased competition, innovation, and consumer access that waiving the law, in conjunction with the applicant's ability to compensate consumers who may be harmed, would provide.

(i) an applicant's plan to protect consumers will not adequately protect consumers from the harm the state law addresses; and

(ii) the benefits to consumers of applying the law outweigh the potential benefits to consumers from increased competition, innovation, and consumer access that waiving the law, in conjunction with the applicant's ability to compensate consumers who may be harmed, would provide.

(b) If the department determines that certain state laws that regulate a financial product or service apply to a sandbox participant, the department shall notify the sandbox participant of the specific regulatory provisions that apply to the sandbox participant.

(7) Notwithstanding any other provision of this chapter, a sandbox participant does not have immunity related to any criminal offense committed during the sandbox participant's participation in the regulatory sandbox.

(8) By written notice, the department may end a sandbox participant's participation in the regulatory sandbox at any time and for any reason, including if the department determines a sandbox participant is not operating in good faith to bring an innovative product or service to market.