18-603. Application process and requirements; fee

A. Any person may apply to enter the property technology sandbox to test an innovation.

B. The chief executive officer must accept and review each application for entry into the property technology sandbox on a rolling basis.

C. An application must demonstrate that an applicant both:

1. Is an entity or individual who is subject to the jurisdiction of this state.

2. Has established a location, whether physical or virtual, that is adequately accessible to the chief executive officer, from which testing will be developed and performed and where all required records, documents and data will be maintained.

D. Persons that already possess an authorization under state laws that regulate a property product or service must file an application with the chief executive officer to test an innovation within the property technology sandbox for a property product or service outside the scope of the authorization.

E. Applications must contain sufficient information to demonstrate that an applicant has an adequate understanding of the innovation and a sufficient plan to test, monitor and assess the innovation while ensuring that consumers are protected from a testing failure.

F. Applications must contain the information required by a form that is developed and made publicly available by the chief executive officer. The information required by the form may include:

1. Relevant personal and contact information for the applicant, including full legal names, addresses, telephone numbers, e-mail addresses, website addresses and other information that the chief executive officer deems necessary.

2. Disclosure of any criminal convictions of the applicant or key personnel, if any.

3. A description of the innovation desired to be tested, including statements regarding all of the following:

(a) How an innovation is subject to regulation outside of the property technology sandbox.

(b) How the innovation would benefit consumers.

(c) How the innovation is different from other property products or services available in this state.

(d) Any risks to consumers.

(e) How entering the property technology sandbox would enable a successful test of the innovation.

(f) A description of the proposed testing plan, including estimated time periods for market entry, market exit and the pursuit of necessary licensure or authorization.

(g) How the applicant will wind down the test and protect consumers if the test fails.

(h) How the applicant will use cybersecurity measures to avoid breaches and protect consumer and transaction data.

G. The chief executive officer shall collect a nonrefundable processing fee from each applicant in an amount determined by the Arizona commerce authority. Monies collected pursuant to this subsection shall be deposited in the Arizona commerce authority fund established by section 41-1506.

H. A person shall file a separate application for each innovation sought to be tested.

I. After the applicant submits the information required by subsection F of this section, the chief executive officer may seek additional information that the chief executive officer deems necessary. Not later than ninety days after an application is initially submitted, the chief executive officer shall notify the applicant whether the application is approved for entry into the property technology sandbox. The chief executive officer and an applicant may mutually agree to extend the time period for the chief executive officer to determine whether an application is approved for entry into the property technology sandbox.

J. The chief executive officer may deny applications in the chief executive officer's discretion, and a denial is not an appealable agency action for the purposes of title 41, chapter 6, article 10.