U.S. Senator Mike Lee (R-UT) has introduced the Promoting Innovation and Offering the Needed Escape from Exhaustive Regulations (PIONEER) Act, a bill designed to extend Utah’s regulatory sandbox model nationwide. The legislation aims to ease federal regulations across all industries to encourage innovation and efficiency in the American economy.
“Utah is leading the way with deregulation across all industries,” said Senator Mike Lee. “Our regulatory sandbox model is the first of its kind, successfully fostering innovation and inspiring several other states to follow our lead. The PIONEER Act will bring Utah’s successful deregulation model to business owners in every state, allowing American businesses to thrive and innovate freely.”
The concept of a regulatory sandbox allows businesses or individuals to apply for temporary relief from certain regulations. According to Senator Lee, federal regulations currently cost businesses and consumers trillions of dollars each year, which can limit innovation and investment.
Utah first implemented a regulatory sandbox for financial technology companies in 2019, alongside Wyoming and Arizona. In March 2021, Utah expanded this program to include all industries—a move that was later adopted by Arizona and Kentucky. North Carolina created a combined insurance and fintech sandbox in 2021. Currently, 14 states have either general or industry-specific sandbox programs that aim to support technological adaptation.
Under the PIONEER Act, a federal regulatory sandbox program would be established. Individuals or businesses could apply for waivers from certain regulations for up to two years at a time. An Office of Regulatory Relief within OIRA would oversee applications, make decisions, and monitor public health and safety.
Federal agencies reviewing applications would be required to consult with an advisory board made up of ten private sector representatives—half representing small businesses. Applicants could address any issues identified during review or appeal decisions through the Office of Regulatory Relief.
Approved participants could renew their waivers up to four times, potentially receiving up to ten years of relief from specific regulations. Safeguards are included so that if there is significant risk posed by any participant, relief can be revoked by the oversight office.
An annual report on the effectiveness of the program would be submitted to Congress detailing whether consumers or businesses have been harmed or benefited by these changes.
Senator Mike Lee represents Utah in Washington D.C., Salt Lake City, St. George, Vernal, and other locations across the state (official website). He advocates for limited government intervention as well as fiscal responsibility on economic matters (official website). His legislative efforts also focus on public safety and health care issues (official website).
Constituents can contact Senator Lee’s offices in both Utah and Washington D.C., where he offers assistance on federal matters (official website).
