ARIZONA LAUNCHES:FIRST-IN-THE-NATION PROPTECH SANDBOX

The Arizona PropTech Sandbox is a program established under Arizona law to foster innovation by enabling a business to obtain limited access to the Arizona market to test innovative property technology products or services (“PropTech”) without first obtaining a state license or other authorization that otherwise might be required. The Arizona Commerce Authority (ACA) is responsible for the administration and oversight of the Arizona PropTech Sandbox. Once a business is approved to participate, it may perform limited testing subject to certain restrictions depending on the product or service being tested.

Yes, applicants are required to demonstrate that they are subject to the jurisdiction of Arizona. A physical or virtual location that is adequately accessible to the ACA must be established, where testing will be developed and performed, and where all records, documents and data will be maintained. Applicants not headquartered in Arizona will be required to establish an operational presence in the state by the time the testing in the sandbox begins.

Prospective applicants are strongly encouraged to consult with the ACA prior to formally applying to ensure that the product or service you are seeking to test is within the scope of the sandbox. Click here to schedule an informational phone call.

Yes, there is a $500.00, non-refundable application fee. We strongly recommend that you do not apply until you have consulted with the Arizona Commerce Authority to ensure your project is within the scope of the sandbox. Click here to schedule an informational phone call.

There are a wide variety of products and services related to property or real estate that may be permitted in the Sandbox; however, product or service solution being tested must be a unique technology that is different from other products and services available in Arizona. Only one new technology may be addressed and tested per each application to the Sandbox. Prospective applicants are strongly encouraged to consult with the Arizona Commerce Authority prior to application. Click here to schedule an informational phone call.

Products and services regulated under Arizona Revised Statutes, Title 32, Chapter 20, are not permitted in the sandbox. In addition, products or services related to the physical new construction of improvements to real property are not permitted in the sandbox.

No, however the scope of permitted testing may be limited. Applicants are encouraged to consult with the Arizona Commerce Authority prior to application to clarify the scope. Click here to schedule an informational phone call.

Applicants accepted into the sandbox will be required to record and report information on a regular basis that is applicable to the scope of their testing, as defined and outlined within the application materials and accepted or modified by the ACA.

No. Although accepted participants will be exempt from some Arizona state laws, city, county, and federal laws may apply irrespective of whether an applicant is in the Sandbox. In addition, generally applicable state laws, such as the Consumer Fraud Act, still apply to sandbox participants. However, sandbox participants are deemed to have appropriate state licenses for the purposes of any federal law requiring such state licenses. Sandbox participants ultimately are responsible for compliance with all applicable federal, county, city and state laws not exempted by the sandbox and should consult with counsel as necessary to ensure compliance.

There is no minimum amount of time. Participants have twenty-four (24) months after the date of approval to test the innovation described in the application.

Participating in the sandbox does not prohibit a business from operating in other jurisdictions or acting pursuant to and in accordance with the applicable laws of other jurisdictions.

Yes, the Arizona Commerce Authority has full-service teams which provide a comprehensive suite of customized services and would be happy to assist you in growing your business in Arizona. Click here to get in touch.

After an applicant submits their materials via the website and pays the application fee, the ACA has 90 days with which to render a decision of acceptance or denial. This deadline may be extended if mutually agreed upon between the applicant and the ACA. If requested by the ACA, the applicant will be required to provide clarification or additional information relative to their submission. Based on the application materials, discussions with the applicant, and consultations with the applicable state agencies for the regulatory waivers being sought, the ACA will issue a Certificate of Admission document that will detail the guidelines and requirements for how the applicant will operate within the sandbox.