The Kansas Legislature is considering a proposal for a business innovation sandbox that would allow businesses to operate for up to two years under a lighter regulatory framework.
This concept, modeled after programs in states like Arizona, Kentucky, Utah, and Missouri, aims to give businesses more flexibility, attract investment, and identify regulations that hinder profitability. Proponents argue that it could help businesses navigate outdated regulations, especially for emerging industries, while safeguarding consumers and the environment.
However, there are concerns about the fairness of such a system. Critics, including Wichita Democratic Rep. John Carmichael, argue that the proposal could create two classes of businesses: those with exemptions and those without. The idea of granting exemptions based on an application process, overseen by state agencies or officials, also raises constitutional and fairness questions, particularly regarding the selection process and potential lack of oversight.
Another major point of contention is the involvement of Kansas Attorney General Kris Kobach, whose office would potentially oversee the program. Some lawmakers, such as Rep. Rui Xu, have expressed discomfort with Kobach’s role due to potential conflicts of interest, given his political stance and his office’s current duties.
The interim committee, which is revisiting the bill after it failed in 2024, has agreed to seek a nonbinding legal opinion from the attorney general to address constitutional concerns. The bill’s proponents hope to clarify the legal framework and move forward with legislation in the 2025 session.