(a)This Chapter shall be known and may be cited as the "North Carolina Regulatory Sandbox Act of 2021."
(b)The following definitions apply in this Chapter:
(1)Applicable State agency. - The Office of the Commissioner of Banks or the Department of Insurance, based upon either's regulatory oversight and responsibility relative to the particular product or service covered under this Chapter.
(2)Blockchain technology. - An electronic method for storing cryptographically secure data in a database or distributed ledger technology that is decentralized, consensus-based, mathematically verified, and distributed across multiple locations.
(3)Consumer. - A person, whether a natural person or a legal entity, that purchases or enters into a banking, financial, insurance, or related transaction th
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(a) This Chapter shall be known and may be cited as the "North Carolina Regulatory Sandbox Act of 2021."
(b) The following definitions apply in this Chapter:
(1) Applicable State agency. - The Office of the Commissioner of Banks or the Department of Insurance, based upon either's regulatory oversight and responsibility relative to the particular product or service covered under this Chapter.
(2) Blockchain technology. - An electronic method for storing cryptographically secure data in a database or distributed ledger technology that is decentralized, consensus-based, mathematically verified, and distributed across multiple locations.
(3) Consumer. - A person, whether a natural person or a legal entity, that purchases or enters into a banking, financial, insurance, or related transaction that involves an innovative product that is made available through the regulatory sandbox and that is being tested by a participant.
(4) Entity. - Any person or legal entity organized under the laws of the United States, or any state within the United States, and subject to the jurisdiction of this State.
(5) FinTech. - Certain innovative products or services that support the provision of banking or financial services.
(6) Innovation. - Providing a financial or insurance product or service or a substantial component of such, or using or incorporating new or emerging technology, including blockchain technology, or developing a new use of existing technology to address a problem, provide a benefit or otherwise offer a product, service, business model or delivery mechanism to the public that is not known at present to have a comparable widespread offering in this State.
(7) Innovative product or service. - A financial, insurance, or emerging technology product or service that includes an innovation component or element.
(8) InsurTech. - Certain innovative products or services that support the provision of insurance services.
(9) North Carolina Innovation Council or Council. - The Council established by G.S. 169-4.
(10) Personal information. - Information that identifies or describes an individual, including, but not limited to, a name, social security number, home address, telephone number, and medical or employment history.
(11) Regulatory sandbox, sandbox, or sandbox program. - The program established by this Chapter that permits a person or entity to temporarily test an innovative financial or insurance product or service and make it available to consumers on a limited basis without being subject to certain licensing or other regulatory obligations imposed under applicable State law.
(12) Regulatory sandbox applicant or applicant. - Any person or entity applying to the regulatory sandbox for an innovation waiver.
(13) Sandbox participant or participant. - Any person or entity whose application to participate in the regulatory sandbox has been approved pursuant to this Chapter.
(14) Waiver. - A document issued pursuant to this Chapter that allows a sandbox participant to temporarily test an innovative product or service on a limited basis without otherwise being subject to the same licensing or authorization provisions of the laws of this State or in full compliance with the laws of this State. (2021-166, s. 1; 2023-134, s. 11.14(a).)