North Carolina Regulatory Sandbox Act (HB 624)

• Establishes a financial and insurance regulatory sandbox allowing entities to temporarily test innovative financial, insurance, or blockchain-based products for up to 24 months with waivers from certain state licensing requirements.

• Creates the 11-member North Carolina Innovation Council to oversee sandbox admissions, set standards for eligible innovations, and assign participants to appropriate regulatory agencies (Office of Commissioner of Banks or Department of Insurance).

• Requires sandbox applicants to pay a $50 application fee and $450 participation fee for the 24-month period, with applicants and key personnel subject to criminal background checks.

• Mandates sandbox participants make specific disclosures to consumers in English and Spanish, including that the state does not endorse the product and maintains no liability for losses, plus requires retention of business records for five years.

• Prohibits waivers from affecting consumer protection laws including those governing interest rates, retail installment sales, consumer credit, and loan brokers, and allows reciprocity with participants licensed in other jurisdictions.