NY S09188

Creates a regulatory sandbox program allowing entities to test innovative financial products and services in New York for 12 months without first obtaining a license, certification, or regulatory recognition from the Department of Financial Services.

Requires applicants to submit a form prescribed by the superintendent and pay a $500 application fee, with department approval or denial within 90 days of receipt.

Limits testing to a maximum of 50,000 New York state residents and requires clear disclosure to consumers that the innovation is unauthorized, temporary, not endorsed by the state, and may be discontinued.

Allows one-time extension of up to six months upon request if made before the end of the eleventh month, with the department having sole discretion to grant or deny extensions.

Requires participants to maintain records for five years after test conclusion, permits department inspections at any time, and authorizes the superintendent to suspend or revoke sandbox admission for violations, false statements, or failure to comply with regulations.