MISSISSIPPI LEGISLATURE

2022 Regular Session

To: Insurance

By: Representative Zuber

House Bill 1195

AN ACT TO CREATE THE REGULATORY SANDBOX PROGRAM ADMINISTERED BY THE DEPARTMENT OF AGRICULTURE AND COMMERCE AS A PROGRAM TO ENABLE A PERSON TO OBTAIN LIMITED ACCESS TO THE MARKET IN THE STATE TO TEST AN INNOVATIVE PRODUCT OR SERVICE WITHOUT OBTAINING A LICENSE OR OTHER AUTHORIZATION THAT MIGHT OTHERWISE BE REQUIRED; TO PROVIDE DEFINITIONS; TO PROVIDE APPLICATION REQUIREMENTS; TO PROVIDE THE SCOPE OF THE REGULATORY SANDBOX; TO PROVIDE CONSUMER PROTECTION FOR THE REGULATORY SANDBOX; TO PROVIDE REQUIREMENTS FOR EXITING THE REGULATORY SANDBOX; TO PROVIDE EXTENSIONS OF THE TESTING PERIOD; TO PROVIDE RECORD KEEPING AND REPORTING REQUIREMENTS; TO CREATE THE INSURANCE REGULATORY SANDBOX PROGRAM ADMINISTERED BY THE MISSISSIPPI INSURANCE DEPARTMENT TO ENABLE A PERSON TO OBTAIN LIMITED ACCESS TO THE MARKET IN THE STATE TO TEST AN INNOVATIVE INSURANCE PRODUCT OR SERVICE WITHOUT OBTAINING A LICENSE OR OTHER AUTHORIZATION THAT MIGHT OTHERWISE BE REQUIRED; TO PROVIDE DEFINITIONS; TO PROVIDE APPLICATION REQUIREMENTS; TO PROVIDE THE SCOPE OF THE INSURANCE REGULATORY SANDBOX; TO PROVIDE CONSUMER PROTECTION FOR THE INSURANCE REGULATORY SANDBOX; TO PROVIDE REQUIREMENTS FOR EXITING THE INSURANCE REGULATORY SANDBOX; TO PROVIDE EXTENSIONS OF THE TESTING PERIOD; TO PROVIDE RECORD KEEPING AND REPORTING REQUIREMENTS; TO AMEND SECTION 69-1-13, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Sections 1 through 8 of this act are known and may be cited as the "Regulatory Sandbox Program."

     SECTION 2.  As used in Sections 1 through 8 of this act:

          (a)  "Applicable agency" means a department or agency of the state that by law regulates certain types of business activity in the state and persons engaged in such business activity, including the issuance of licenses or other types of authorization, which the department determines would otherwise regulate a sandbox participant.

          (b)  "Applicant" means an individual or entity that is applying to participate in the regulatory sandbox.

          (c)  "Blockchain technology" means the use of a digital database containing records of financial transactions, which can be simultaneously used and shared within a decentralized, publicly accessible network and can record transactions between two (2) parties in a verifiable and permanent way.

          (d)  "Consumer" means a person that purchases or otherwise enters into a transaction or agreement to receive an innovative product or service that is being tested by a sandbox participant.

          (e)  "Department" means the Mississippi Department of Agriculture & Commerce.

          (f)  (i)  "Financial product or service" means:

                    1.  A financial product or financial service that requires state licensure or registration; or

                    2.  A financial product or financial service that includes a business model, delivery mechanism, or element that may require a license or other authorization to act as a financial institution, enterprise, or other entity that is regulated by.

               (ii)  "Financial product or service" does not include a product or service that is governed by:

                    1.  Title 83, Insurance Code; or

                    2.  Title 75, Chapter 71, Mississippi Securities Act of 2010.

          (g)  "Innovation" means the use or incorporation of a new or emerging technology or a new use of existing technology, including blockchain 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 department to have a comparable widespread offering in the state.

          (h)  "Innovative product or service" means a financial product or service that includes an innovation.

          (i)  "Regulatory sandbox" means the Regulatory Sandbox Program created by Section 3 of this act, which allows a person to temporarily test an innovative product or service on a limited basis without otherwise being licensed or authorized to act under the laws of the state.

          (j)  "Sandbox participant" means a person whose application to participate in the regulatory sandbox is approved in accordance with the provisions of Sections 1 through 8 of this act.

          (k)  "Test" means to provide an innovative product or service in accordance with the provisions of Sections 1 through 8 of this act.

     SECTION 3.  (1)  There is created in the department the Regulatory Sandbox Program.

     (2)  In administering the regulatory sandbox, the department:

          (a)  Shall consult with each applicable agency;

          (b)  Shall establish a program to enable a person to obtain limited access to the market in the state to test an innovative product or service without obtaining a license or other authorization that might otherwise be required; and

          (c)  May enter into agreements with or follow the best practices of the Consumer Financial Protection Bureau or other states that are administering similar programs.

     (3)  An applicant for the regulatory sandbox shall provide to the department an application in a form prescribed by the department that:

          (a)  Demonstrates the applicant is subject to the jurisdiction of the state;

          (b)  Demonstrates the applicant has established a physical location in the state, from which testing will be developed and performed and where all required records, documents, and data will be maintained;

          (c)  Contains relevant personal and contact information for the applicant, including legal names, addresses, telephone numbers, email addresses, website addresses, and other information required by the department;

          (d)  Discloses criminal convictions of the applicant or other participating personnel, if any;

          (e)  Demonstrates that the applicant has the necessary personnel, financial and technical expertise, access to capital, and developed plan to test, monitor, and assess the innovative product or service;

          (f)  Contains a description of the innovative product or service to be tested, including statements regarding all of the following:

               (i)  How the innovative product or service is subject to licensing or other authorization requirements outside of the regulatory sandbox;

               (ii)  How the innovative product or service would benefit consumers;

               (iii)  How the innovative product or service is different from other products or services available in the state;

               (iv)  What risks may confront consumers that use or purchase the innovative product or service;

               (v)  How participating in the regulatory sandbox would enable a successful test of the innovative product or service;

               (vi)  A description of the proposed testing plan, including estimated time periods for beginning the test, ending the test, and obtaining necessary licensure or authorizations after the testing is complete;

               (vii)  A description of how the applicant will perform ongoing duties after the test; and

               (viii)  How the applicant will end the test and protect consumers if the test fails; and

          (g)  Provides any other required information as determined by the department.

     (4)  The department may collect an application fee from an applicant that is set by the department.

     (5)  An applicant shall file a separate application for each innovative product or service that the applicant wants to test.

     (6)  After an application is filed, the department may seek additional information from the applicant that the department determines is necessary.

     (7)  Subject to subsection (8) of this section, not later than ninety (90) days after the day on which a complete application is received by the department, the department shall inform the applicant as to whether the application is approved for entry into the regulatory sandbox.

     (8)  The department and an applicant may mutually agree to extend the 90-day time period described in subsection (7) of this section for the department to determine whether an application is approved for entry into the regulatory sandbox.

     (9)  (a)  In reviewing an application under this section, the department shall consult with, and get approval from, each applicable agency before admitting an applicant into the regulatory sandbox.

          (b)  The consultation with an applicable agency may include seeking information about whether:

               (i)  The applicable agency has previously issued a license or other authorization to the applicant;

               (ii)  The applicable agency has previously investigated, sanctioned, or pursued legal action against the applicant;

               (iii)  Whether the applicant could obtain a license or other authorization from the applicable agency after exiting the regulatory sandbox; and

               (iv)  Whether certain licensure or other regulations should not be waived even if the applicant is accepted into the regulatory sandbox.

     (10)  In reviewing an application under this section, the department shall consider whether a competitor to the applicant is or has been a sandbox participant and, if so, weigh that as a factor in favor of allowing the applicant to also become a sandbox participant.

     (11)  If the department and each applicable agency approve admitting an applicant into the regulatory sandbox an applicant may become a sandbox participant.

     (12)  (a)  The department may deny any application submitted under this section, for any reason, at the department's discretion.

          (b) If the department denies an application submitted under this section, the department shall provide to the applicant a written description of the reasons for the denial as a sandbox participant.

     SECTION 4.  (1)  If the department approves an application under Section 3 of this act, the sandbox participant has twenty-four (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; and

          (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.

     (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 Sections 1 through 8 of this act, including in subsections (6) and (7) of this section, 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.

     (7)  Notwithstanding any other provision of Sections 1 through 8 of this act, 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.

     SECTION 5.  (1)  Before providing an innovative product or service to a consumer, a sandbox participant shall disclose the following to the consumer:

          (a)  The name and contact information of the sandbox participant;

          (b)  That the innovative product or service is authorized pursuant to the regulatory sandbox and, if applicable, that the sandbox participant does not have a license or other authorization to provide a product or service under state laws that regulate products or services outside the regulatory sandbox;

          (c)  That the innovative product or service is undergoing testing and may not function as intended and may expose the customer to financial risk;

          (d)  That the provider of the innovative product or service is not immune from civil liability for any losses or damages caused by the innovative product or service;

          (e)  That the state does not endorse or recommend the innovative product or service;

          (f)  That the innovative product or service is a temporary test that may be discontinued at the end of the testing period;

          (g)  The expected end date of the testing period; and

          (h)  That a consumer may contact the department to file a complaint regarding the innovative product or service being tested and provide the department's telephone number and website address where a complaint may be filed.

     (2)  The disclosures required by subsection (1) of this section shall be provided to a consumer in a clear and conspicuous form and, for an internet or application-based innovative product or service, a consumer shall acknowledge receipt of the disclosure before a transaction may be completed.

     (3)  The department may require that a sandbox participant make additional disclosures to a consumer.

     SECTION 6.  (1)  At least thirty (30) days before the end of the 24-month regulatory sandbox testing period, a sandbox participant shall:

          (a)  Notify the department that the sandbox participant will exit the regulatory sandbox, discontinue the sandbox participant's test, and will stop offering any innovative product or service in the regulatory sandbox within sixty (60) days after the day on which the 24-month testing period ends; or

          (b)  Seek an extension in accordance with Section 7 of this act.

     (2)  Subject to subsection (3) of this section, if the department does not receive notification as required by subsection (1) of this section, the regulatory sandbox testing period ends at the end of the 24-month testing period and the sandbox participant shall immediately stop offering each innovative product or service being tested.

     (3)  If a test includes offering an innovative product or service that requires ongoing duties, such as servicing a loan, the sandbox participant shall continue to fulfill those duties or arrange for another person to fulfill those duties after the date on which the sandbox participant exits the regulatory sandbox.

     SECTION 7.  (1)  Not later than thirty (30) days before the end of the 24-month regulatory sandbox testing period, a sandbox participant may request an extension of the regulatory sandbox testing period for the purpose of obtaining a license or other authorization required by law.

     (2)  The department shall grant or deny a request for an extension in accordance with subsection (1) of this section by the end of the 24-month regulatory sandbox testing period.

     (3)  The department may grant an extension in accordance with this section for not more than six (6) months after the end of the regulatory sandbox testing period.

     (4)  A sandbox participant that obtains an extension in accordance with this section shall provide the department with a written report every three (3) months that provides an update on efforts to obtain a license or other authorization required by law, including any submitted applications for licensure or other authorization, rejected applications, or issued licenses or other authorization.

     SECTION 8.  (1)  A sandbox participant shall retain records, documents, and data produced in the ordinary course of business regarding an innovative product or service tested in the regulatory sandbox.

     (2)  If an innovative product or service fails before the end of a testing period, the sandbox participant shall notify the department and report on actions taken by the sandbox participant to ensure consumers have not been harmed as a result of the failure.

     (3)  The department may establish periodic reporting requirements for a sandbox participant.

     (4)  The department may request records, documents, and data from a sandbox participant and, upon the department's request, a sandbox participant shall make such records, documents, and data available for inspection by the department.

     (5)  If the department determines that a sandbox participant has engaged in, is engaging in, or is about to engage in any practice or transaction that is in violation of Sections 1 through 8 of this act or that constitutes a violation of a state or federal criminal law, the department may remove a sandbox participant from the regulatory sandbox.

     (6)  By December 1 of each year, the department shall provide an annual written report to the House Workforce Development Committee and Senate Labor Committee that provides information regarding each sandbox participant and that provides recommendations regarding the effectiveness of the Regulatory Sandbox Program.

     SECTION 9.  Sections 9 through 16 of this act are known and may be cited as the "Insurance Regulatory Sandbox Program."

     SECTION 10.  As used in Sections 9 through 16 of this act:

     (1)  "Applicable agency" means a department or agency of the state, including the department, that by law regulates certain types of insurance-related business activity in the state and persons engaged in such insurance-related business activity, including the issuance of licenses or other types of authorization, which the department determines would otherwise regulate an insurance sandbox participant.

     (2)  "Applicant" means an individual or entity that is applying to participate in the insurance regulatory sandbox.

     (3)  "Blockchain technology" means the use of a digital database containing records of financial transactions, which can be simultaneously used and shared within a decentralized, publicly accessible network and can record transactions between two parties in a verifiable and permanent way.

     (4)  "Consumer" means a person that purchases or otherwise enters into a transaction or agreement to receive an innovative insurance product or service that is being tested by an insurance sandbox participant.

     (5)  "Department" means the Mississippi Insurance Department.

     (6)  "Innovation" means the use or incorporation of a new idea, a new or emerging technology, or a new use of existing technology, including blockchain technology, to address a problem, provide a benefit, or otherwise offer a product, service, business model, or delivery mechanism.

     (7)  "Innovative insurance product or service" means an insurance product or service that includes an innovation.

     (8)  "Insurance product or service" means an insurance product or insurance service that requires state licensure, registration, or other authorization as regulated by Title 83, including an insurance product or insurance service that includes a business model, delivery mechanism, or element that requires a license, registration, or other authorization to do an insurance business, act as an insurance producer or consultant, or engage in insurance adjusting as regulated by Title 83.

     (9)  "Insurance regulatory sandbox" means the Insurance Regulatory Sandbox Program created by Section 11 of this act, which allows a person to temporarily test an innovative insurance product or service on a limited basis without otherwise being licensed or authorized to act under the laws of the state.

     (10)  "Insurance sandbox participant" means a person whose application to participate in the insurance regulatory sandbox is approved in accordance with the provisions of Sections 9 through 16 of this act.

     (11)  "Test" means to provide an innovative insurance product or service in accordance with the provisions of Sections 9 through 16 of this act.

     SECTION 11.  (1)  There is created in the department the Insurance Regulatory Sandbox Program.

     (2)  In administering the insurance regulatory sandbox, the department:

          (a)  Shall consult with each applicable agency;

          (b)  Shall establish a program to enable a person to obtain limited access to the market in the state to test an innovative insurance product or service without obtaining a license or other authorization that might otherwise be required;

          (c)  May enter into agreements with or follow the best practices of the Consumer Financial Protection Bureau or other states that are administering similar programs; and

          (d)  May not approve participation in the insurance regulatory sandbox program by an applicant or any other participant who has been convicted, entered a plea of nolo contendere, or entered a plea of guilty or nolo contendere held in abeyance, for a crime:

               (i)  Involving theft, fraud, or dishonesty; or

               (ii)  That bears a substantial relationship to the applicant's or participant's ability to safely or competently participate in the insurance regulatory sandbox program.

     (3)  An applicant for the insurance regulatory sandbox shall provide to the department an application in a form prescribed by the department that:

          (a)  Includes a nonrefundable application fee of Four Thousand Five Hundred Dollars ($4,500.00), which fee may be waived or reduced by the department if the applicant holds a license issued by the department under the provisions of Title 83;

          (b)  Demonstrates the applicant is subject to the jurisdiction of the state;

          (c)  Demonstrates the applicant has established a physical or virtual location that is adequately accessible to the department, from which testing will be developed and performed and where all required records, documents, and data will be maintained;

          (d)  Contains relevant personal and contact information for the applicant, including legal names, addresses, telephone numbers, email addresses, website addresses, and other information required by the department;

          (e)  Discloses criminal convictions of the applicant or other participating personnel, if any;

          (f)  Demonstrates that the applicant has the necessary personnel, financial and technical expertise, access to capital, and developed plan to test, monitor, and assess the innovative insurance product or service;

          (g)  Contains a description of the innovative insurance product or service to be tested, including statements regarding all of the following:

               (i)  How the innovative insurance product or service is subject to licensing or other authorization requirements outside of the insurance regulatory sandbox, including a specific list of all state laws, regulations, and licensing or other requirements that the applicant is seeking to have waived during the testing period;

               (ii)  How the innovative insurance product or service would benefit consumers;

               (iii)  How the innovative insurance product or service is different from other insurance products or services available in the state;

               (iv)  What risks may confront consumers that use or purchase the innovative insurance product or service;

               (v)  How participating in the insurance regulatory sandbox would enable a successful test of the innovative insurance product or service;

               (vi)  A description of the proposed testing plan, including estimated time periods for beginning the test, ending the test, and obtaining necessary licensure or authorizations after the testing is complete;

               (vii)  A description of how the applicant will perform ongoing duties after the test; and

               (viii)  How the applicant will end the test and protect consumers if the test fails, including providing evidence of sufficient liability coverage and financial reserves to protect consumers and to protect against insolvency by the applicant; and

          (h)  Provides any other required information as determined by the department.

     (4)  An applicant shall file a separate application for each innovative insurance product or service that the applicant wants to test.

     (5)  After an application is filed and before approving an application, the department may seek any additional information from the applicant and from the department's own research that the department determines is necessary, including:

          (a)  Proof of sufficient assets, accounts, liability coverage, surety bond coverage, or other preparation by the applicant to ensure that consumers are protected and that the applicant will be able to cover ongoing duties when the test ends or if the test ends early; and

          (b)  Industry ratings and past performance of the applicant.

     (6)  Subject to subsection (7) of this section, not later than ninety (90) days after the day on which a complete application is received by the department, the department shall inform the applicant as to whether the application is approved for entry into the insurance regulatory sandbox.

     (7)  The department and an applicant may mutually agree to extend the 90-day time period described in subsection (6) of this section for the department to determine whether an application is approved for entry into the insurance regulatory sandbox.

     (8)  (a)  In reviewing an application under this section, the department shall consult with, and get approval from, each applicable agency before admitting an applicant into the insurance regulatory sandbox.

          (b)  The consultation with an applicable agency may include seeking information about whether:

               (i)  The applicable agency has previously issued a license or other authorization to the applicant;

               (ii)  The applicable agency has previously investigated, sanctioned, or pursued legal action against the applicant;

               (iii)  Whether the applicant could obtain a license or other authorization from the applicable agency after exiting the insurance regulatory sandbox; and

               (iv)  Whether certain licensure or other regulations should not be waived even if the applicant is accepted into the insurance regulatory sandbox.

     (9)  In reviewing an application under this section, the department shall consider whether a competitor to the applicant is or has been an insurance sandbox participant and, if so, weigh that as a factor in favor of allowing the applicant to also become an insurance sandbox participant.

     (10)  If the department and each applicable agency approve admitting an applicant into the insurance regulatory sandbox an applicant may become an insurance sandbox participant.

     (11)  The department may deny any application submitted under this section, for any reason, at the department's discretion.

     (12)  If the department denies an application submitted under this section, the department shall provide to the applicant a written description of the reasons for the denial as an insurance sandbox participant.

     SECTION 12.  (1)  If the department approves an application under Section 11 of this act, the insurance sandbox participant has twelve (12) months after the day on which the application was approved to test the innovative insurance product or service described in the insurance sandbox participant's application.

     (2)  An insurance sandbox participant testing an innovative insurance product or service within the insurance 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 enter into an agreement with the insurance sandbox participant to use the innovative insurance product or service;

          (c)  The department may, if applicable and on a case by case basis, specify the maximum number of items and the maximum coverage amount for each item that may be offered by an insurance sandbox participant during the testing of the innovative insurance product or service; and

          (d)  The department may, on a case by case basis, specify liability coverage requirements and minimum financial reserves requirements that the insurance sandbox participant shall meet during the testing of the innovative insurance product or service.

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

     (4)  An insurance 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)  An insurance sandbox participant that is testing an innovative insurance product or service is not subject to state laws, regulations, licensing requirements, or authorization requirements that were identified by the insurance sandbox participant in the insurance sandbox participant's application and have been waived in writing by the department.

     (6)  Notwithstanding any other provision of Sections 9 through 16 of this act, an insurance sandbox participant does not have immunity related to any criminal offense committed during the insurance sandbox participant's participation in the insurance regulatory sandbox.

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

     (8)  The department and the department's employees are not liable for any business losses or the recouping of application expenses related to the insurance regulatory sandbox, including for:

          (a)  Denying an applicant's application to participate in the insurance regulatory sandbox for any reason; or

          (b)  Ending an insurance sandbox participant's participation in the insurance regulatory sandbox at any time and for any reason.

     (9)  No guaranty association in the state may be held liable for business losses or liabilities incurred as a result of activities undertaken by a participant in the insurance sandbox.

     SECTION 13.  (1)  Before providing an innovative insurance product or service to a consumer, an insurance sandbox participant shall disclose the following to the consumer:

          (a)  The name and contact information of the insurance sandbox participant;

          (b)  That the innovative insurance product or service is authorized pursuant to the insurance regulatory sandbox and, if applicable, that the insurance sandbox participant does not have a license or other authorization to provide an insurance product or service under state laws that regulate insurance products or services outside the insurance regulatory sandbox;

          (c)  That the innovative insurance product or service is undergoing testing and may not function as intended and may expose the customer to financial risk;

          (d)  That the provider of the innovative insurance product or service is not immune from civil liability for any losses or damages caused by the innovative insurance product or service;

          (e)  That the state does not endorse or recommend the innovative insurance product or service;

          (f)  That the innovative insurance product or service is a temporary test that may be discontinued at the end of the testing period;

          (g)  The expected end date of the testing period; and

          (h)  That a consumer may contact the department to file a complaint regarding the innovative insurance product or service being tested and provide the department's telephone number and website address where a complaint may be filed.

     (2)  The disclosures required by subsection (1) of this section shall be provided to a consumer in a clear and conspicuous form and, for an Internet or application-based innovative insurance product or service, a consumer shall acknowledge receipt of the disclosure before a transaction may be completed.

     (3)  The department may require that an insurance sandbox participant make additional disclosures to a consumer.

     SECTION 14.  (1)  At least thirty (30) days before the end of the 12-month insurance regulatory sandbox testing period, an insurance sandbox participant shall:

          (a)  Notify the department that the insurance sandbox participant will exit the insurance regulatory sandbox, discontinue the insurance sandbox participant's test, and will stop offering any innovative insurance product or service in the insurance regulatory sandbox within sixty (60) days after the day on which the 12-month testing period ends; or

          (b)  Seek an extension in accordance with Section 15 of this act.

     (2)  Subject to subsection (3) of this section, if the department does not receive notification as required by subsection (1) of this section, the insurance regulatory sandbox testing period ends at the end of the 12-month testing period and the insurance sandbox participant shall immediately stop offering each innovative insurance product or service being tested.

     (3)  If a test includes offering an innovative insurance product or service that requires ongoing duties, the insurance sandbox participant shall continue to fulfill those duties or arrange for another person to fulfill those duties after the date on which the insurance sandbox participant exits the insurance regulatory sandbox.

     SECTION 15.  (1)  Not later than thirty (30) days before the end of the 12-month regulatory insurance sandbox testing period, an insurance sandbox participant may request an extension of the insurance regulatory sandbox testing period for the purpose of obtaining a license or other authorization required by law.

     (2)  The department shall grant or deny a request for an extension in accordance with subsection (1) of this section by the end of the 12-month insurance regulatory sandbox testing period.

     (3)  The department may grant an extension in accordance with this section for not more than six (6) months after the end of the insurance regulatory sandbox testing period.

     (4)  An insurance sandbox participant that obtains an extension in accordance with this section shall provide the department with a written report every three (3) months that provides an update on efforts to obtain a license or other authorization required by law, including any submitted applications for licensure or other authorization, rejected applications, or issued licenses or other authorization.

     SECTION 16.  (1)  An insurance sandbox participant shall retain records, documents, and data produced in the ordinary course of business regarding an innovative insurance product or service tested in the insurance regulatory sandbox.

     (2)  If an innovative insurance product or service fails before the end of a testing period, the insurance sandbox participant shall notify the department and report on actions taken by the insurance sandbox participant to ensure consumers have not been harmed as a result of the failure.

     (3)  The department shall establish quarterly reporting requirements for an insurance sandbox participant, including information about any customer complaints.

     (4)  The department may request records, documents, and data from an insurance sandbox participant and, upon the department's request, an insurance sandbox participant shall make such records, documents, and data available for inspection by the department.

     (5)  If the department determines that an insurance sandbox participant has engaged in, is engaging in, or is about to engage in any practice or transaction that is in violation of Sections 9 through 16 of this act or that constitutes a violation of a state or federal criminal law, the department may remove an insurance sandbox participant from the insurance regulatory sandbox.

     (6)  By December 1 of each year, the department shall provide an annual written report to the House and Senate Insurance Committees that provides information regarding each insurance sandbox participant and that provides recommendations regarding the effectiveness of the Insurance Regulatory Sandbox Program.

     SECTION 17.  Section 69-1-13, Mississippi Code of 1972, is amended as follows:

     69-1-13.  The following are the duties of the Commissioner of Agriculture and Commerce:

          (a)  He shall encourage the proper development of agriculture, horticulture and kindred industries.

          (b)  He shall encourage the organization of neighborhood and county agricultural clubs and associations, and out of these the organization of the state agricultural association.

          (c)  He shall collect and publish statistics and such other information regarding such industries of this state and of other states as may be of benefit in developing the agricultural resources of the state.  To this end he shall put himself in connection and shall cooperate with the agricultural department of other states and with the Commissioner of Agriculture of the United States, and shall provide for the proper and careful distribution of all documents and information coming into his possession on account of the department that may be of interest and benefit to the people of the state.

          (d)  He shall cause to be investigated the diseases of grain, cotton, fruit and other crops grown in this state and also remedies for such diseases, and also the habits and propagation of the various insects that are injurious to the crops of the state and the proper mode of their destruction.

          (e)  He shall investigate the subject of grasses and report upon their value and the cultivation of the varieties best adapted to the different sections of the state.

          (f)  He shall inquire into the subjects connected with dairying that he may deem of interest to the people of the state, and in this connection the raising of stock and poultry, the obtaining of such as are of most value, and the breeding and propagation of the same; and shall encourage raising of fish and the culture of bees.

          (g)  He shall investigate the subjects of subsoiling, drainage, etc., and the best modes of effecting each, and of irrigation and what portions of the state can be best benefited thereby.

          (h)  He shall investigate and report upon the culture of wool and the utility and profit of sheep-raising, also the culture of silk and its manufacture and preparation for market.

          (i)  He shall investigate and report on the question of broadening the market for cotton and cotton goods in the United States and foreign countries.

          (j)  He shall cause a proper collection of agricultural statistics to be made annually, and to this end shall furnish blank forms to the tax assessors of each county, and it is made the special duty of the tax assessor to whom said blanks are furnished to report to the bureau a list of all public or private ginners in his county, with their post offices, upon the demand of the commissioner.  It shall be the duty of the commissioner to furnish to such ginner a form or forms of report to be made to the bureau at such time as the commissioner may direct.  A failure to make such reports on the part of the ginner or assessor as required by said commissioner shall be deemed a misdemeanor, and, upon conviction, punished as provided by law.  It shall be the duty of the members of the boards of supervisors and the county tax assessor of each county in this state to make such reports as may be required by this bureau touching the matter within the scope of this chapter; and failure of any supervisor or tax assessor to make such report when required shall be deemed a misdemeanor and shall be punished as provided by law.

          (k)  He shall appoint county correspondents who shall report to him from time to time, as may be desired.

          (l)  He shall collect specimens of wood suitable for manufacture and other purposes, and specimens of agricultural, mineral, phosphate and marl deposits of the state; cause correct analysis of such as may be deemed expedient to be made and recorded in a substantial book to be kept for this purpose.

          (m)  He shall also, as soon as practicable, prepare a convenient handbook with necessary illustrated maps, which shall contain all necessary information as to the mines, mineral, forest, soil, and other products, climate, water, waterpower for the establishing of factories, land, flowers, fisheries, mountains, streams, and all other statistics as are best adapted to the giving of proper information and the attraction of advantages which the state affords to immigrants, and shall make illustrated expositions thereof whenever practicable at international and state expositions.

          (n)  He shall have the primary responsibility for developing programs that will enhance the marketing of the state's agricultural products to both national and international markets.

          (o)  Administer the Regulatory Sandbox Program created in Sections 1 through 8 of this act.

     SECTION 18.  Sections 9 through 16 of this act shall be codified in Title 83, Mississippi Code of 1972.

     SECTION 19.  This act shall take effect and be in force from and after July 1, 2022.