04 NCAC 25 .0102             NONPROFIT PARTNERS

(a)  Nonprofit organizations wishing to assist applicants or participants as a nonprofit partner shall submit an application to the Council. Applications may be found on the Council's website at www.innovation.nc.gov.

(b)  Nonprofit organization applications shall include the following:

(1)           The formal legal name of the organization applying to be a nonprofit partner;

(2)           If applicable, the nonprofit applicant must provide documentation of registration of associated trade names or Doing Business As (DBA);

(3)           The name and address of the registered agent;

(4)           Proof that the organization is a nonprofit organization duly authorized by the North Carolina Office of the Secretary of State and provide a North Carolina Certificate of Good Standing;

(5)           A single point of contact must be designated for all correspondence, including the individual's name, role, phone number, and email address;

(6)           A list of individuals that are directors of the board, partners, managers, and other individuals who are legally responsible for the governance of the entity, including their names, titles, expertise related to the product or service, and whether they have been convicted of, or are currently under investigation for, fraud or State or federal securities law violations;

(7)           A summary of how the nonprofit organization's mission is aligned with the Sandbox program, to be used by the Council in a published list of nonprofit partners; and

(8)           A description of the nonprofit organization's capabilities, including its data security capabilities and practices as required by law to ensure the confidentiality of information submitted by Sandbox applicants and participants.

(c)  The Council may request additional information from the applicant pertaining to their application and eligibility to participate in the Sandbox based on the criteria set forth in Paragraph (b) of this Rule.

(d)  Within 30 business days of receipt of a nonprofit organization's application, the Executive Director shall review the application for completeness. Applications that the Executive Director has determined have met the application submittal requirements shall be forwarded to all Council members for review. If an application is incomplete, the Executive Director shall request that any missing information from the nonprofit organization be submitted within 14 business days of the request.

(e)  At the next Council meeting that is at least 14 business days after the Council has received a complete application, the Council shall discuss the application to determine the next action. Upon the motion of any member, the Council shall enter a closed session, pursuant to G.S. 143-318.11(a)(1) or G.S. 132-1.2(1)(a)-(c)a. - c., to discuss the application, however, all votes on an application shall be in an open session.

(f)  Within 14 business days of a Council vote on an application, the Executive Director shall notify the nonprofit organization in writing of the Council's decision. If the Council denied the nonprofit organization's application, the written notification shall include the specific reasons for the denial.

(g)  Upon the motion of any member, at a duly called meeting of the Council, the Council may rescind its approval of a nonprofit partner by a majority vote of the Council.

(h)  A nonprofit partner whose approval is denied or rescinded by the Council may not reapply to be a nonprofit partner for a period of two years from the date of the Council vote. Any application submitted during the debarment period will be rejected for consideration by the Council.

History Note:        Authority G.S. 169-4; 169-5;

Eff. March 1, 2025.