HB5139 - Regulatory Sandbox Act

• Establishes a regulatory sandbox program administered by the Department of Financial and Professional Regulation allowing persons to temporarily test innovative financial products and services for 12 months without first obtaining a license.

• Requires a $500 application fee per innovation, with applications approved or denied within 90 days; applicants must be in good standing if corporations or properly registered if other entities.

• Limits sandbox testing to no more than 5,000 Illinois residents and requires clear disclosure to consumers that the innovation is a temporary test authorized under the sandbox program, not endorsed by the State, and may be discontinued.

• Permits a one-time extension of up to 6 months if requested before the end of the 11th month of the initial test period; persons must wind down operations within 60 days after the test period ends and preserve records for 5 years.

• Allows the Department to suspend or revoke admission for non-compliance with the Act, false statements in applications, unpaid fees, or disqualifying conditions, with decisions subject to judicial review under the Administrative Review Law.