The Richmond Observer – Regulatory sandbox bill clears final hurdles in North Carolina Senate
RALEIGH – A bill to establish a “regulatory sandbox” by waiving certain obstacles for a trial period for booming financial and insurance products and services is one more step towards the law. He cleared the Senate Trade and Insurance Committee on Tuesday, September 21.
House Bill 642 would create the regulatory sandbox, which is similar to that allowed in Arizona in 2018. At least five other states have since passed similar laws, and half a dozen are considering similar bills this year.
“I am very happy to see the sandbox bill move forward,” said Jordan Roberts, government affairs associate for the John Locke Foundation. “This bill would maintain North Carolina as a regional and national leader for business by encouraging companies with innovative finance and insurance products to test them right here in North Carolina. The sandbox approach ensures the right balance between choice and consumer protection. “
“A regulatory sandbox is a creative initiative to keep North Carolina competitive and encourage more businesses to come to the state,” Roberts added. “He recognizes that government acts much slower than innovators. “
HB 642 would only apply to the finance and insurance sectors. Among other changes, the bill would create a new Innovation Council to market the program and research and review applications. The board would assess applications based on the level of innovation, potential risks to consumers, level of consumer protection and complaint resolutions in place, and level of business plan and capital. It would then make recommendations and forward them to state agencies ultimately responsible for the final decision.
HB 624 is similar to another version – Senate Bill 470 – passed by the Senate on June 14 unanimously 47-0.
The bill is now heading to the Senate Rules Committee before a vote in the Senate plenary.