Proposed legislation would boost innovation, proponents say

Ohio lawmakers are considering legislation that proponents said would help businesses access capital and boost innovation, while supplying consumers with better and safer products.

House Bill 176 “adopts a universal regulatory sandbox to help Ohio businesses and regulators work together to bring products to market safely and with fewer bureaucratic hurdles,” Greg R. Lawson, research fellow at The Buckeye Institute, said in prepared testimony to the Ohio House Government Oversight Committee.

Sponsored by state Reps. Tex Fischer, R-Boardman, and state Rep. Brian Lorenz, R-Powell, the measure has drawn support from the Ohio Chamber of Commerce, Americans for Prosperity–Ohio, and the Ohio chapter of the National Federation of Independent Business.

Fischer said the measure “would allow businesses to obtain limited access to the markets in Ohio to temporarily test their products or services, without the burden of licensure or authorization that would typically be required.”

The program would reside in the Governor’s Common Sense Initiative office.

“Expanding upon the state’s financial sector sandbox, House Bill 176 would make Ohio the sixth state with a universal sandbox across economic sectors, benefiting entrepreneurs, business startups, and consumers by encouraging teamwork between businesses and state regulators,” Lawson said.

“Businesses like regulatory sandboxes because they can react more quickly to changing market conditions,” Lawson added. “Sandboxes make regulatory compliance more affordable, particularly for entrepreneurs, and help businesses access more capital and tolerate more risk, critical needs for startups and expansions. Regulatory sandboxes help consumers by improving access to better, safer products.”

The Buckeye Institute is among several Ohio groups that have encouraged Ohio lawmakers in recent years to reduce red tape. In 2022, Ohio lawmakers passed, and Republican Gov. Mike DeWine signed into law Senate Bill 249, which created a similar regulatory sandbox program for financial products and services.

“HB 176 is all about eliminating red tape and increasing speed to market on innovation that is solely needed in Ohio,” Lorenz told Ohio.News. “It is a conservative, pro-business bill that ensures we remove outdated and overly burdensome regulations to allow entrepreneurs and small business to offer new products and services to benefit Ohio consumers while growing our economy.”

Proponents argue that the measure, which recently had a third hearing before the House Government Oversight Committee, will help persuade startups and small businesses to consider relocating to or staying in the Buckeye State, thereby bolstering the state’s business-friendly climate.

“All big businesses at one point started out as small businesses, and the key to their success was developing new and innovative ways to create, market and sell products,” NFIB Ohio Assistant State Director Cameron J. Garczyk said in prepared testimony to the Ohio House Government Oversight Committee.

“…Businesses wishing to take advantage of the sandbox program must apply for approval by supplying necessary information to the regulatory relief division to prove the business has a legitimate offering to consumers and show how specific licenses or regulations are inhibiting their potential,” Garczyk added. “Participating businesses will supply funding for this new division within CSI via application fees, thus ensuring no new government spending.”