Bill Summary for H 624 (2021)

Summary date: 

Jun 15 2021

Bill Information:

View NCGA Bill Details2021
House Bill 624 (Public) Filed Tuesday, April 20, 2021
AN ACT TO ENACT THE NORTH CAROLINA FINANCIAL AND INSURANCE REGULATORY SANDBOX ACT AND TO ESTABLISH THE NORTH CAROLINA INNOVATION COUNCIL.
Intro. by Saine, Turner, Lofton, Szoka.

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Bill summary

House committee substitute to the 1st edition makes the following changes.

Amends proposed GS Chapter 169, the North Carolina Regulatory Sandbox Act of 2021, as follows. Revises the NCGA findings related to the banking and insurance industry and related emerging technology to provide for their statewide importance (was regional). 

Modifies and adds to the provisions establishing and governing the NC Innovation Council (Council) in new GS 169-4 as follows. Makes technical and clarifying changes to the provisions setting forth the four Council members legislatively appointed. Provides for Council members to serve four-year terms, beginning on October 1, 2021, except that the initial terms of half of the gubernatorially and legislatively appointed members are for a term of two years, and four years thereafter. Bars serving more than two consecutive terms. Provides for filling vacancies and the Secretary of State to call the first meeting where the Council must elect an ex-officio member to serve as chair and an appointed member to serve as vice-chair for a two-year term. Requires the Council to meet at least quarterly. Now allows for Council members to receive per diem compensation and necessary travel and subsistence expenses while engaged in the official discharge of their official duties as is provided by law for members of State boards and commissions (previously provided for reasonable travel expenses only).

Makes a technical correction to require the Council to consider the nature of the innovative product or service (was the innovation product or service) proposed in a regulatory sandbox application pursuant to new GS 169-6.

Adds to GS 169-8, stating that new GS Chapter 169 does not allow the Council or an applicable State agency to grant an innovation waiver that alters or amends GS Chapters 24 (Interest), 25A (Retail Installment Sales Act), 25B (Credit), or 75 (Monopolies, Trusts, and Consumer Protection), or Article 15 of GS Chapter 53 (Consumer Finance Act), Article 70 of GS Chapter 58 (Collection Agencies), Article 20 of GS Chapter 66 (Loan Brokers), or any other criminal or consumer protection laws.

Makes a technical correction to the confidentiality provisions of GS 169-10, providing that the statute does not prohibit a sandbox participant from disclosing information (was disclosing) to an insurance carrier for purposes of obtaining insurance coverage required for participation in the sandbox program. 

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