Burdensome and confusing regulations often thwart business innovations. A process is needed to provide these businesses with greater certainty about which regulations apply and approval to proceed with operations without penalty.
- Regulations often adversely affect economic growth, particularly with innovation and new initiatives.
- Individuals and businesses may feel reluctant to commit capital and effort to new initiatives without some assurance from government to do so without incurring regulatory penalties or closure.
- Where the applicability of regulations to innovative businesses is uncertain, state regulators should be directed to issue letters of interpretation to provide clarity and protection. If the interpretation is that regulations do not apply in whole or in part, the letter should so specify and provide a presumption of authorization to protect businesses engaged in these innovative operations from enforcement of such regulations.
- Where regulations are determined to apply, a regulatory sandbox program with modifications should be established to provide a trial period to foster innovation and test the further applicability or need for amendment or repeal of regulations.