Georgia CommonsHB 1272: Banking and finance; licensing of payment stablecoin issuers; provisions
Enrolled version, the latest LegiScan holds · Last action May 11, 2026 · Passed
The text as LegiScan holds it, read from the PDF the legislature publishes with its margin line numbers, running heads, and page footers removed. Line breaks are joined into paragraphs here; no word is changed.
Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
House Bill 1272 (AS PASSED HOUSE AND SENATE)
By: Representatives Jones of the 25th, Hilton of the 48th, Douglas of the 78th, Williamson of the 112th, Mitchell of the 88th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, so as to provide for use of certain terms in the advertisement and place of business of licensed payment stablecoin issuers; to provide for licensing of payment stablecoin issuers; to provide for rules and regulations; to provide for application procedures; to provide for requirements for licensed payment stablecoin issuers; to provide for license renewal; to provide for information sharing with certain entities; to prohibit unlicensed persons from issuing payment stablecoin; to provide for the Department of Banking and Finance to request and receive conviction data; to provide for certain disqualifying conditions for licensure; to provide for procedures for denying applications; to provide for appeals; to provide for certain fees and assessments; to provide for certain certifications to the department; to require licensed payment stablecoin issuers to maintain certain reserves; to provide for procedures for failure by a licensed payment stablecoin issuer to meet certain reserves; to provide for certain capital requirements; to provide for reserves to be held in trust for consumers; to provide for certain disclosures; to provide for treatment as a financial institution; to provide for certain activities in which licensed payment stablecoin issuers can participate; to prohibit certain activities; to provide for annual financial statements; to provide for requirements for annual financial statements; to provide for examination and investigation of licensed payment stablecoin issuers; to provide for powers of the department relating to examination and investigation; to provide for third-party examination or investigation; to provide for payment of certain fees and costs of examination and investigation; to provide for suspension or revocation of a license and procedures therefor; to provide for cease and desist orders; to provide for removal of certain officers and members; to provide for a short title; to provide for legislative purpose and intent; to provide for definitions; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is amended by revising subparagraphs (K) and (L) of and adding a new subparagraph to paragraph (21) of Code Section 7-1-4, relating to definitions regarding purposes and preliminary matters, to read as follows:
"(K) Federal credit unions for the purposes of Part 6 of Article 2 of this chapter, relating to deposits, safe-deposit agreements, and money received for transmission, and Article 8 of this chapter, relating to multiple-party accounts; and
(L) Banks and credit unions chartered by states other than Georgia, national banks, federal credit unions, and federal savings and loan associations for the purposes of paragraph (1) of Code Section 7-1-650, provided that such institutions have federal deposit insurance; and
(M) Licensed payment stablecoin issuers as defined by Code Section 7-11-3 for the purpose of the following provisions:
(i) Code Section 7-1-2, relating to findings of the General Assembly;
(ii) Code Section 7-1-8, relating to supplementary principles of law;
(iii) Code Section 7-1-37, relating to restrictions on officials and personnel;
(iv) Code Section 7-1-70, relating to disclosure of information;
(v) Code Section 7-1-90, relating to judicial review of department actions;
(vi) Code Sections 7-1-113 and 7-1-114, relating to voluntary dissolution;
(vii) Code Sections 7-1-150 through 7-1-225, relating to receivership powers and procedures; and
(viii) Code Sections 7-1-910 through 7-1-917, relating to records and reports of currency transactions."
SECTION 2.
Said title is further amended in Article 2, relating to banks and trust companies, by revising paragraph (2) of subsection (c) of and adding a new subsection to Code Section 7-1-243, relating to restrictions on banking and trust nomenclature, to read as follows: "(b.1) Except as provided in subsection (c) of this Code section, no person or corporation, except a federal qualified payment stablecoin issuer or a licensed payment stablecoin issuer, as such terms are defined in Code Section 7-11-3, shall use the words 'stablecoin' or 'payment stablecoin' upon any sign at its place of business or elsewhere, or in any form of marketing, including, but not limited to, its letterheads, billheads, blank checks, blank notes, receipts, certificates, circulars, advertisements, or any other written or printed matter."
"(2) Prohibit advertisement in media distributed in or transmitted into this state by persons or corporations lawfully engaged in the banking, credit union, or trust business, or persons or corporations lawfully issuing payment stablecoins outside of this state; or"
SECTION 3.
Said title is further amended by adding a new chapter to read as follows: "CHAPTER 11
7-11-1.
This chapter shall be known and may be cited as the 'Georgia Payment Stablecoin Act.'
7-11-2.
(a) The purpose of this chapter is to enact Section 4(c) of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, Pub. L. No. 119-27.
(b) It is the intent of the General Assembly that this chapter;
(1) Provides for the regulation of payment stablecoins;
(2) Enables financial service providers in this state the opportunity to issue payment stablecoins;
(3) Ensures the law of this state is substantially similar to the GENIUS Act; and
(4) Empower the department to issue regulations to implement federal regulations promulgated to implement the GENIUS Act.
7-11-3.
As used in this chapter, the term:
(1) 'Department' means the Department of Banking and Finance.
(2) 'Digital asset' means any digital representation of value that is recorded on a cryptographically secured distributed ledger.
(3) 'Distributed ledger' means technology in which data is shared across a network that creates a public digital ledger of verified transactions or information among network participants and cryptography is used to link the data to maintain the integrity of the public ledger and execute other functions.
(4) 'Federal qualified payment stablecoin issuer' means an entity approved by the federal Office of the Comptroller of the Currency pursuant to the GENIUS Act to issue payment stablecoins.
(5) 'GENIUS Act' means the Guiding and Establishing National Innovation for U.S. Stablecoins Act, Pub. L. No. 119-27, as amended.
(6) 'Licensed payment stablecoin issuer' means a payment stablecoin issuer that is incorporated or organized under the laws of Georgia or the laws of a foreign country and that holds a license pursuant to this chapter.
(7) 'Payment stablecoin' means a digital asset that:
(A) Is designed or marketed to be used as a means of payment or settlement;
(B) The issuer of which undertakes to convert, redeem, or repurchase for a fixed amount of monetary value; and
(C) Is not legal tender, a deposit, or a security registered under federal securities laws.
(8) 'Payment stablecoin issuer' means a person that issues a payment stablecoin.
(9) 'Permitted payment stablecoin issuer' means a subsidiary of an insured depository institution that has been approved to issue payment stablecoins as described in Section 5 of the GENIUS Act, a licensed payment stablecoin issuer, a federal qualified payment stablecoin issuer, or a state qualified payment stablecoin issuer.
(10) 'Person' means an individual, corporation, limited liability company, partnership, association, trust, or any other entity.
(11) 'State payment stablecoin regulator' means a state agency of another state that has primary regulatory and supervisory authority in such state over payment stablecoin issuers.
(12) 'State qualified payment stablecoin issuer' means a payment stablecoin issuer that is legally established under the laws of a state and approved to issue payment stablecoins by a state payment stablecoin regulator.
(13)(A) 'Ultimate equitable owner' means a person that, directly or indirectly:
(i) Owns a 10 percent or more interest in a corporation or any other form of business organization;
(ii) Owns 10 percent or more of the voting shares of any corporation or any other form of business organization; or
(iii) Exerts control over a corporation or any other form of business organization, regardless of whether such person owns or controls such interest through one or more natural persons or one or more proxies, powers of attorney, nominees, corporations, associations, limited liability companies, partnerships, trusts, joint stock companies, or other entities or devices, or any combination thereof.
(B) For purposes of determining ultimate equitable ownership by an individual, the individual's interest shall be aggregated with the interest of any other immediate family member, including the individual's spouse, parents, children, siblings, mothers- and fathers-in-law, sons- and daughters-in-law, brothers- and sisters-in-law, and any other individual who shares such individual's home.
7-11-4.
(a) The department may make reasonable rules and regulations, not inconsistent with law, for:
(1) The interpretation of this chapter, including, but not limited to, language to achieve substantial similarity with the provisions of the GENIUS Act; and
(2) The enforcement of this chapter, including, but not limited to, prescribing administrative fines for violations of this chapter and of any rules promulgated by the department pursuant to this chapter.
(b) The department shall by rule prescribe application, licensing, examination, and supervision fees or assessments.
(c) The department shall:
(1) Receive, review, and consider for approval applications from any person that seeks to issue payment stablecoins as a licensed payment stablecoin issuer;
(2) Establish a process and framework for the licensing, regulation, examination, and supervision of licensed payment stablecoin issuers;
(3) Issue regulations consistent with the process and framework established pursuant to paragraph (2) of this subsection; and
(4) Accept and process applications pursuant to the regulations issued in paragraph (3) of this subsection.
(d) The department may initiate receivership proceedings against a licensed payment stablecoin issuer pursuant to Code Section 7-1-150. If such proceedings are initiated, the department has the powers, authorities, and duties prescribed by Code Sections 7-1-150 through 7-1-225.
(e) The department may initiate conservatorship proceedings against a licensed payment stablecoin issuer pursuant to Code Section 7-1-640. If such proceedings are initiated, the department has the powers, authorities, and duties prescribed by Code Sections 7-1-640 through 7-1-645.
7-11-5.
(a) The department may share information on an ongoing basis with the Board of Governors of the Federal Reserve System with respect to licensed payment stablecoin issuers, including a copy of the initial application and any accompanying documents.
(b) The department may enter into a memorandum of understanding with the Board of Governors of the Federal Reserve System under which the Board of Governors of the Federal Reserve System may participate in the supervision, examination, and enforcement of the GENIUS Act with respect to licensed payment stablecoin issuers. 7-11–6.
(a) It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in this state.
(b) Beginning July 18, 2028, it shall be unlawful to offer or sell a payment stablecoin unless the payment stablecoin is issued by a licensed payment stablecoin issuer, a permitted payment stablecoin issuer, or a state qualified payment stablecoin issuer.
(c) This Code section shall not apply to:
(1) The direct transfer of digital assets between two individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary;
(2) Any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company; or
(3) Any transaction by means of a software or hardware wallet that facilitates an individual's own custody of digital assets.
7-11-7.
(a) A licensed payment stablecoin issuer shall at all times maintain an office in this state.
(b) Within one year after the date it begins operations, a licensed payment stablecoin issuer shall have the minimum number of employees in this state as determined by the commissioner to assure the continued and substantive presence of the licensed payment stablecoin issuer in this state for the purpose of conducting its corporate affairs and operations.
7-11-8.
(a) The department is authorized to:
(1) Participate in the Nationwide Multistate Licensing System and Registry;
(2) Enter into operating agreements and other contracts necessary for the department's participation in the Nationwide Multistate Licensing System and Registry;
(3) Disclose or cause to be disclosed without liability, via the Nationwide Multistate Licensing System and Registry, applicant and licensed payment stablecoin issuer information, including, but not limited to, violations of this chapter and enforcement actions;
(4) Request that the Nationwide Multistate Licensing System and Registry adopt an appropriate privacy, data security, and security breach notification policy that is in full compliance with existing state and federal law; and
(5) Establish and adopt, by rule or regulation, requirements for participation by applicants and licensed payment stablecoin users in the Nationwide Multistate Licensing System and Registry upon the department's determination that each requirement is consistent with both the public interest and purposes of this chapter.
(b) The department shall enact rules and regulations establishing a process whereby licensed payment stablecoin issuers may challenge information entered by the department on the Nationwide Multistate Licensing System and Registry.
(c) Irrespective of its participation in the Nationwide Multistate Licensing System and Registry, the department shall retain full and exclusive authority over determinations of whether to grant, renew, suspend, or revoke licenses issued under this chapter. Nothing in this Code section shall be construed to reduce or otherwise limit such authority.
(d) Information disclosed through the Nationwide Multistate Licensing System and Registry is deemed to be disclosed directly to the department and is subject to the provisions of Code Section 7-1-70. Such information shall not be disclosed to the public and shall remain privileged and confidential pursuant to Code Section 7-1-70.
7-11-9.
(a) Each applicant for a license under this chapter shall:
(1) Submit an application in writing, which is made under oath and in such form as the department may prescribe;
(2) Provide to the Nationwide Multistate Licensing System and Registry the following information:
(A) The legal name and principle office address of the person applying for the license;
(B) The name, residence, and business address of each director, ultimate equitable owner, and executive officer; and
(C) The location where the initial registered office will be located in this state, if any; and
(3) Submit such other data, financial statements, and pertinent information as the department may require with respect to the applicant, its directors, trustees, officers, members, ultimate equitable owners, subsidiaries, or affiliates.
(b) The application for license shall be filed with:
(1) An investigation and supervision fee established by the department through rule or regulation which shall not be refundable but which, if the license is granted, shall satisfy the fee requirement for the first licensed year or the remaining part thereof;
(2) Any other items required by this chapter; and
(3) Other information as may be required by the department.
(c) The department shall pay all fees received from licensed payment stablecoin issuers and applicants related to applications, licenses, and renewals to the Office of the State Treasurer; provided, however, that the department may net such fees to recover the cost of participation in the Nationwide Multistate Licensing System and Registry.
(d) The department shall enact rules and regulations regarding the time frame by which all persons shall submit an original or renewal application for licensure through the Nationwide Multistate Licensing System and Registry.
(e) A substantially complete application shall be evaluated by the department using the factors listed in Code Section 7-11-10.
7-11-10.
(a) As used in this Code section, the term 'conviction data' means a record of a finding, verdict, or plea of guilty or nolo contendere with regard to any crime, regardless of whether an appeal of the conviction has been sought.
(b) In evaluating initial applications received from prospective licensed payment stablecoin issuers or renewal applications for licensed payment stablecoin issuers, the department shall consider various factors, including, but not limited to:
(1) The ability of the applicant, based on financial condition and resources, to meet the requirements prescribed by this chapter;
(2)(A) Whether an individual who has been convicted of a felony offense involving conversion, theft, money laundering, financing of terrorism, bribery, dishonesty, false statements or omissions, perjury, extortion, breach of trust, forgery, counterfeiting, embezzlement, insider trading, tax evasion, kickbacks, identity theft, cybercrime, cyber attacks, social engineering, fraud, including but not limited to check fraud, credit card fraud, mortgage fraud, medical fraud, corporate fraud, bank account fraud, point of sale fraud, currency fraud, bank fraud, and securities fraud, or a felony directly related to the financial services business is serving as an officer, director, or ultimate equitable owner of the applicant.
(B)(i) For the purposes of this chapter, a person shall be deemed to have been convicted of a crime if such person has pleaded guilty or nolo contendere to a charge before a court or federal magistrate or have been found guilty by the decision or judgment of a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension of such sentence. Additionally, a person shall be deemed to have been convicted of a crime regardless of whether first offender treatment without adjudication of guilt pursuant to the charge was entered or an adjudication or sentence was otherwise withheld or not entered on that charge.
(ii) A person shall be deemed to have been convicted of a crime unless and until the plea of guilty or nolo contendere or the decision, judgment, or verdict has been set aside, reversed, or otherwise abrogated by lawful judicial process, or until probation, sentence, or both probation and sentence of a first offender without adjudication of guilt have been successfully completed and documented or unless the person convicted of the crime shall have received a pardon from the President of the United States or the governor or other pardoning authority in the jurisdiction where the conviction occurred.
(C) The department shall be authorized to obtain conviction data with respect to any applicant or licensed payment stablecoin issuer; and any person who is a director, officer, or ultimate equitable owner of an applicant or licensed payment stablecoin issuer. Criminal history record checks may be requested by the department through the Georgia Crime Information Center and the Federal Bureau of Investigation. The department shall have the authority to receive the results of such checks. The department may use the Nationwide Multistate Licensing System and Registry as a channeling agent for the submission of fingerprints to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive such information for a state, national, and international criminal history background check and the receipt of such checks by the department. Fees required for a criminal history record check by the Georgia Crime Information Center or the Federal Bureau of Investigation shall be paid by the applicant or licensed payment stablecoin issuer. (D)(i) Upon request by the department, each applicant or licensed payment stablecoin issuer and each person who is a director, officer, or ultimate equitable owner of an applicant or licensed payment stablecoin issuer shall submit to the department fingerprints, the required records search fees, and such other information as may be required;
(ii) Fees for background checks that the department administers shall be submitted to the department by applicants and licensed payment stablecoin issuers together with fingerprints, and the department is authorized to net such fees to recover any costs incurred by the department related to running the background checks;
(iii) Upon receipt of fingerprints, fees, and other required information from the department, the Georgia Crime Information Center shall promptly transmit fingerprints to the Federal Bureau of Investigation for a search of bureau records and an appropriate report and promptly conduct a search of its own records and records to which it has access;
(iv) The Georgia Crime Information Center shall notify the department in writing of any derogatory finding, including, but not limited to, any conviction data regarding the fingerprint records check, or if there is no such finding;
(v) All conviction data received by the department shall be used by the department for the exclusive purpose of carrying out the responsibilities of this chapter, shall not be a public record, shall be confidential, and shall not be disclosed to any other person or agency except to any person or agency which otherwise has a legal right to inspect such data; and
(vi) All such records shall be maintained by the department pursuant to laws regarding such records and the rules and regulations of the Georgia Crime Information Center and the Federal Bureau of Investigation, as applicable;
(3) The competence, experience, financial responsibility, character, integrity, and general fitness of the applicant and of the ultimate equitable owners, officers, and directors of the applicant, its subsidiaries, and parent company, including:
(A) The record of those ultimate equitable owners, officers, and directors of compliance with laws and regulation; and
(B) The ability of those ultimate equable owners, officers, and directors to fulfill any commitments to and any conditions imposed by the department in connection with the application at issue and any prior applications;
(4) Whether the redemption policy of the applicant meets the standards under Code Section 7-11-21;
(5) Any other factors established under federal law or regulations as applying to state qualified payment stablecoin users; and
(6) Any other factors established by this chapter or regulation of the department implementing this chapter.
7-11-11.
(a) No later than 120 days after receiving a substantially complete application, the department shall render a decision on the application.
(b) An application shall be deemed substantially complete when all required fees have been paid, all portions of the application have been completed, and the department has sufficient information to determine whether the applicant satisfies the factors described in Code Section 7-11-10.
(c) Not later than 30 days after receiving an application, the department shall notify the applicant as to whether the department considers the application to be substantially complete, and, if the application is not substantially complete, the additional information the applicant shall provide in order for the application to be considered substantially complete.
(d) An application considered substantially complete remains substantially complete unless there is a material change in circumstances that requires the department to treat the application as a new application.
(e) If the department fails to render a decision on a substantially complete application with 120 days of deeming such application substantially complete, the application shall be deemed approved.
7-11-12.
(a) The department shall deny an application for licensure if:
(1) The department determines that the applicant does not satisfy the factors listed in Code Section 7-11-10 or that the applicant is operating or would operate in an unsafe or unsound manner;
(2) Such applicant is subject to a final cease and desist order that has been issued within the preceding five years if such order was based on a violation of this chapter; or
(3) Such applicant had a license issued pursuant to this chapter revoked within the previous five years.
(b) The issuance of a payment stablecoin on an open, public, or centralized network shall not be a valid ground for denial of an application.
(c)(1) As used in this subsection, the term 'email address of record' means the email address that the applicant has designated as his or her email address for regulatory contact on file with the Nationwide Multistate Licensing System and Registry.
(2) Notice of the department's intent to deny an application for a license shall be given to the applicant, sent by registered or certified mail or statutory overnight delivery addressed to the principal place of business of such applicant or to the email address of record of such applicant. If a person refuses to accept service of the notice by registered or certified mail or statutory overnight delivery, the notice or denial shall be served by the commissioner, or the commissioner's authorized representative, under any other method of lawful service, and the person shall be personally liable to the commissioner for a sum equal to the actual costs incurred to serve the notice or order. This liability shall be paid upon notice and demand by the commissioner or the commissioner's representative and shall be assessed and collected in the same manner as other fees or fines administered by the commissioner.
(d) Within 30 days of the date of the notice of intention to deny an application, the applicant may request in writing a hearing to contest the denial. If a hearing is not requested within 30 days of such notice of intention, the department shall enter the denial.
(e) If a timely request for a hearing pursuant to subsection (d) of this Code section is received by the department, the department shall notice a time and place at which the applicant may appear for a hearing.
(f) The department shall issue a final decision on the application not later than 60 days after the date of the hearing.
(g) The department shall state the ground upon which it denied the application and such denial shall be effective on the date of issuance. A copy of the denial shall be sent by mail addressed to the principal place of business of the applicant or licensed payment stablecoin user.
(h) A decision by the department denying the application shall be subject to review in accordance with Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(i) Whenever the department initiates an administrative action against an applicant, the department may pursue such action to its conclusion despite the fact that an applicant may withdraw its application.
(j) Judicial review of any final decision the department entered pursuant to the Code section shall be available solely in the superior court of the county of domicile of the department.
(k) The denial of an application pursuant to this Code section shall not prohibit an applicant from filing a subsequent application.
7-11-13.
The department shall:
(1) Notify the General Assembly upon receipt of the first application filed pursuant to this chapter; and
(2) Annually report to the General Assembly on any substantially complete applications that have been pending for 180 days or more since the date the initial application was filed and for which the applicant has been informed that the application remains incomplete.
7-11-14.
A permitted payment stablecoin issuer is not required to obtain any other license or charter to issue payment stablecoins or to offer, sell, or redeem such payment stablecoin. Issuance of payment stablecoin shall not be considered to be money transmission as defined by Code Section 7-1-680. To the extent a permitted payment stablecoin issuer that is not a licensed payment stablecoin issuer engages in activity that satisfies the definition of money transmission other than the issuing of a payment stablecoin and offering, selling, or redeeming such stablecoin, such permitted payment stablecoin issuer will be required to obtain a license to conduct money transmission.
7-11-15.
(a) Except as otherwise provided for in this chapter, all licenses issued pursuant to this chapter shall expire on December 31 of each year, and each application for renewal shall be made annually on or before December 1 of each year.
(b) A license may be renewed by filing an application substantially conforming with the requirements of Code Section 7-11-9 and department rules and regulations. No investigation fee shall be payable in connection with such renewal application; provided, however, that an annual license fee established by the department shall be paid with each renewal application and shall not be refunded or prorated.
(c) The department is authorized to establish an annual assessment to further defray the cost of supervision and such assessment shall not be refunded or prorated.
7-11-16.
(a) Not later than 180 days after approval of an application and at the time of filing a renewal application thereafter, each licensed payment stablecoin issuer shall submit to the department a certification that the issuer has implemented anti-money laundering and economic sanctions compliance programs that are reasonably designed to prevent the licensed payment stablecoin issuer from facilitating money laundering, in particular, money laundering for cartels and organizations designated as foreign terrorist organizations.
(b) The department shall make such certifications available to the Secretary of the Treasury upon request.
(c)(1) The department may revoke the license of a licensed payment stablecoin issuer that does not submit a certification pursuant to subsection (a) of this Code section. (2)(A) Any person that knowingly submits a false certification shall be subject to Code Section 16-10-20.
(B) If a person knowingly violates this Code section, the department may refer the matter to the Attorney General or the United States Attorney General.
7-11-17.
(a) A licensed payment stablecoin issuer shall maintain identifiable reserves backing the outstanding payment stablecoins of the licensed payment stablecoin issuer on at least a one to one basis, which reserves are composed of:
(1) United States coins and currency or money standing to the credit of an account with a federal reserve bank;
(2) Funds held as demand deposits, or other deposits that may be withdrawn upon request at any time, or insured shares at an insured depository institution subject to limitations established by the Federal Deposit Insurance Corporation and the National Credit Union Administration, as applicable, to address safety and soundness risks of such insured depository institution;
(3) Treasury bills, notes, or bonds:
(A) With a remaining maturity of 93 days or less; or
(B) Issued with a maturity of 93 days or less;
(4) Money received under repurchase agreements, with the permitted payment stablecoin issuer acting as a seller of securities and with an overnight maturity, that are backed by Treasury bills with a maturity of 93 days or less;
(5) Reverse repurchase agreements, with the permitted payment stablecoin issuer acting as a purchaser of securities and with an overnight maturity, that are collateralized by Treasury notes, bills, or bonds on an overnight basis, subject to collateralization in line with standard market terms that are;
(A) Tri-party;
(B) Centrally cleared through a clearing agency registered with the Securities and Exchange Commission; or
(C) Bilateral with a counterparty that the issuer has determined to be adequately credit-worthy even in the event of severe market stress;
(6) Securities issued by an investment company registered under Section 8(a) of the federal Investment Company Act of 1940, or other registered government money market fund, and that are invested solely in underlying assets described in paragraphs (1) through (5) of this subsection;
(7) Any other similarly liquid federal government issued asset approved by the primary federal payment stablecoin regulator in consultation with the department; or
(8) Any reserve described in paragraphs (1) through (3) or paragraphs (6) and (7) of this subsection in tokenized form, provided that such reserves comply with all applicable laws and regulations.
(b)(1) Licensed payment stablecoin issuers shall publish the monthly composition of the issuer's reserves on the website of the issuer. Such publication shall include:
(A) The total number of outstanding payment stablecoins issued by the issuer; and
(B) The amount and composition of the reserves described in subsection (a) of this Code section, including the average tenor and geographic location of custody of each category of reserve instrument.
(2) Each month, the chief executive officer and the chief financial officer of a licensed payment stablecoin issuer shall submit a certification as to the accuracy of the monthly report to the department in such form and manner as required by the department.
(3) Any person who submits a certification pursuant to paragraph (2) of this subsection knowing that such certification is false shall be subject to the same criminal penalties as those set forth in Code Section 16-10-20.
(c) Reserves required under this Code section may not be pledged, rehypothecated, or reused by the licensed payment stablecoin issuer, either directly or indirectly, except for the purpose of:
(1) Satisfying margin obligations in connection with investments in permitted reserves pursuant to paragraphs (4) and (5) of subsection (a) of this Code section.
(2) Satisfying obligations associated with the use, receipt, or provision of standard custodial services; or
(3) Creating liquidity to meet reasonable expectations of requests to redeem payment stablecoins, such that reserves in the form of Treasury bills may be sold as purchase securities for repurchase agreements with a maturity date of 93 days or less, provided that either:
(A) The repurchase agreements are cleared by a clearing agency registered with the Securities and Exchange Commission; or
(B) The licensed payment stablecoin issuer receives the prior approval of the department.
7-11-18.
(a) In the event a licensed payment stablecoin issuer fails to maintain identifiable reserves required by Code section 7-11-17, the licensed payment stablecoin issuer shall:
(1) Calculate the mark-to-market value of all reserve assets;
(2) If the mark-to-market value of all reserve assets is less than the amount needed for a one to one reserve requirement, the licensed payment stablecoin issuer shall:
(A) Inject capital into the reserve holdings at an amount required to ensure the one to one reserve is maintained; or
(B) Halt redemptions, hold all reserves to maturity, and distribute the reserve to payment stablecoin holders in accordance with the terms provided by the GENIUS Act. (b)(1) If a licensed payment stablecoin issuer fails to maintain identifiable reserves required by Code Section 7-11-17 and the licensed payment stablecoin issuer fails to comply with subsection (a) of this Code section, the department may order the licensed payment stablecoin issuer to halt redemptions.
(2) Failure of a licensed payment stablecoin issuer to halt redemptions when ordered by the department may result in additional action by the department, including, but not limited to, license revocation or receivership.
(c) A reserve is presumed to meet the one to one requirement of the GENIUS Act if the payment stablecoin maintains its peg to the reference asset.
(d) If a payment stablecoin's value falls below 100 percent of the reference asset, the licensed payment stablecoin issuer is required to comply with subsection (a) of this Code section in a timeframe that reduces the likelihood of a potential run on the reserve assets.
7-11-19.
The department shall establish by rule minimum capital requirements, liquidity and risk standards, governance standards, third-party risk management requirements, and operational risk and information technology risk standards for applicants and licensed payment stablecoin issuers. Such standards shall meet or exceed the requirements of Section (4)(A) of the GENIUS Act and the related regulations promulgated by the federal payment stablecoin regulators.
7-11-20.
(a) Each licensed payment stablecoin issuer shall hold the reserves required by Code Section 7-11-17 in trust for the benefit of the holders of such payment stablecoins in the event of insolvency, the filing of a petition by or against the licensee under the United States Bankruptcy Code, the filing of a petition by or against the licensee for receivership, the commencement of any other judicial or administrative proceeding for its dissolution or reorganization, or in the event of an action by a creditor against the licensee who is not a beneficiary of the statutory trust.
(b) No reserve impressed with a trust pursuant to this Code section shall be subject to attachment, levy of execution, or sequestration by order of any court, except for a beneficiary of the statutory trust.
(c) A licensed payment stablecoin issuer and its officers shall have a fiduciary duty to preserve and account for its reserves as contemplated by this Code section.
7-11-21.
(a) Each licensed payment stablecoin issuer shall publicly disclose such issuer's redemption policy.
(b) A licensed payment stablecoin issuer's redemption policy shall, at a minimum:
(1) Establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins;
(2) Publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can only be changed upon not less than seven days prior notice to consumers. Such notice shall provide that the consumer can redeem prior to the effective date of the change at the existing rate; and
(3) Comply with this chapter, the GENIUS Act, and any applicable state or federal regulations.
7-11-22.
(a) A licensed payment stablecoin issuer shall be treated as a financial institution for the purposes of the federal Bank Secrecy Act of 1970 and shall be subject to all federal laws applicable to a financial institution located in the United States relating to economic sanctions, prevention of money laundering, customer identification, and due diligence, including, but not limited to:
(1) Maintenance of an effective anti-money laundering program, which shall include appropriate risk assessments and designation of an officer to supervise the program;
(2) Retention of appropriate records;
(3) Monitoring and reporting of any suspicious transactions relevant to possible violations of laws or regulation;
(4) Technical capabilities, policies, and procedures to block, freeze, and reject specific or impermissible transactions that violate federal or state laws, rules, or regulations;
(5) Maintenance of an effective customer identification program, including identification and verification of account holders with the permitted payment stablecoin issuer, high-value transactions, and appropriate enhanced due diligence; and
(6) Maintenance of effective economic sanctions compliance programs, which at a minimum shall include verification of sanctions lists consistent with federal law.
(b) Licensed payment stablecoin issuers shall comply with the provisions of Code Sections 7-1-970 through 7-1-917.
7-11-23.
(a) A licensed payment stablecoin issuer shall only:
(1) Issue payment stablecoins;
(2) Redeem payment stablecoins;
(3) Manage related reserves, including purchasing, selling, and holding reserve assets or providing custodial services for reserve assets consistent with federal and state law;
(4) Provide custodial or safekeeping services for payment stablecoins, required reserves, or private keys of payment stablecoins consistent with this chapter; and
(5) Undertake other activities that directly support any of the activities listed in this Code section, or that are incidental to such activities, with the express permission of the department; provided, however, that the claims of payment stablecoin holders are senior to any potential claims of nonpayment stablecoin creditors with respect to reserve assets.
(b) A licensed payment stablecoin issuer that engages in other activities not authorized by this Code section may be subject to revocation or suspension of such license.
7-11-24.
A licensed payment stablecoin issuer shall not provide services to a customer on the condition that such customer obtain an additional paid product or service from the licensed payment stablecoin issuer or any of its subsidiaries, or on the condition that such customer agree not to obtain a product or service from a competitor.
7-11-25.
A licensed payment stablecoin issuer shall not:
(1) Use any name or combination of terms that are:
(A) Barred by the GENIUS Act;
(B) Related to this state or the government of this state; or
(C) Barred by Code Section 7-1-243 as a corporate name; and
(2) Market a payment stablecoin in such a way that a reasonable person would perceive the payment stablecoin to be:
(A) Legal tender, as described in 31 U.S.C. Section 5103;
(B) Issued by the United States or by this state;
(C) Guaranteed or approved by the government of the United States or the government of this state;
(D) Insured or guaranteed by a governmental entity, including, but not limited to, by the Federal Deposit Insurance Corporation or the National Credit Union Administration; or
(E) Backed by deposits that are federally insured.
7-11-26.
(a) A licensed payment stablecoin issuer shall prepare, in accordance with generally accepted accounting principles, an annual financial statement which shall include the disclosure of any related party transaction, as defined by such generally accepted accounting principles.
(b) A registered public accounting firm acceptable to the department shall perform an audit of the annual financial statements. Such audit shall be conducted with all applicable auditing standards established by the Public Company Accounting Oversight Board, including those relating to auditor independence, internal controls, and related party transactions.
(c) Each licensed payment stablecoin issuer shall submit such audited financial statements annually to the department.
7-11-27.
No licensed payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield, whether in cash, tokens, or other consideration, solely in connection with the holding, use, or retention of such payment stablecoin.
7-11-28.
Each licensed payment stablecoin issuer shall submit to the department an annual report listing:
(1) The financial condition of the licensed payment stablecoin issuer;
(2) The systems of the licensed payment stablecoin issuer for monitoring and controlling financial and operating risks;
(3) Compliance by the licensed payment stablecoin issuer with this chapter; and
(4) The compliance of the licensed payment stablecoin issuer with the requirements of the federal Bank Secrecy Act of 1970 and with laws authorizing the imposition of sanctions implemented by the federal Secretary of the Treasury.
7-11-29.
(a) The department shall investigate and examine a licensed payment stablecoin issuer in order to assess:
(1) The nature of the operations and financial condition of the licensed payment stablecoin issuer;
(2) The financial, operational, technological, and other risks associated with the licensed payment stablecoin issuer that may pose a threat to the:
(A) Safety and soundness of the licensed payment stablecoin issuer; or
(B) The stability of the financial system of the United States or this state;
(3) The systems of the licensed payment stablecoin issuer for monitoring and controlling the risks described in subsection (b) of this Code section; and
(4) Compliance with state and federal laws and regulations. (b)(1) The department shall examine or investigate all licensed payment stablecoin issuers at least once each year and may examine or investigate any licensed payment stablecoin issuer more frequently at any time it deems such action necessary or desirable.
(2) At least annually, such examination or investigation shall consist of a comprehensive review of accounts, records, and affairs of the licensed payment stablecoin issuer.
(3) To aid in its examination or investigation of a licensed payment stablecoin issuer, the department may conduct an examination or investigation of the licensed payment stablecoin issuer's holding companies, subsidiaries, affiliates, or support organizations provide material services to the licensed payment stablecoin issuer or that the failure of such entities would have a material impact on the services provided by the licensed payment stablecoin issuer.
(c) Notwithstanding subsections (b) and (d) of this Code section, the department may, consistent with the purposes of this chapter and the rules enacted pursuant to this chapter, alter the examination frequency and scope in order to assure that appropriate time and attention are devoted to the supervision of troubled entities regulated by the department or to minimize the examination burden on well-managed licensed payment stablecoin issuers which have consistently been operated with safe and sound practices.
(d) In addition to any other authority set forth under this chapter, the department shall be authorized to conduct investigations and examinations of applicants, licensed payment stablecoin issuers, ultimate equitable owners, officers, and directors as follows:
(1) The department shall have the authority to access, receive, and use any books, accounts, records, files, documents, information, or evidence, including, but not limited to:
(A) Criminal, civil, and administrative history information, including nonconviction data;
(B) Personal history and experience information, including, but not limited to, independent credit reports;
(C) For an individual who has resided outside of the United States, an international investigative background report prepared by a competent independent search firm, which shall include at a minimum comprehensive credit, criminal, employment, medial, and financial services regulatory history information; and
(D) Any other documents, information, or evidence the department deems relevant to the inquiry, examination, or investigation, regardless of the location, possession, control, or custody of such documents, information, or evidence;
(2) Each licensed payment stablecoin issuer or person subject to this chapter shall make available to the department, upon request, any books and records relating to the issuance of payment stablecoins;
(3) No licensed payment stablecoin issuer or person subject to investigation or examination pursuant to this chapter shall knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, documents, files, computer records, evidence, or other information; and
(4) To carry out the purposes of this Code section, the department may:
(A) Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, documents, records, information, or evidence or by utilizing standardized or uniform methods or procedures;
(B) Accept and rely on examination or investigation reports made by other government officials made within or outside this state;
(C) Accept audit reports or portions of audit reports made by an independent certified public accountant on behalf of the licensed payment stablecoin issuer or person subject to this chapter covering the same general subject matter as the audit and may incorporate the audit report in the report of examination, report of investigation, or other writing of the department; and
(D) Use, hire, contract, or employ analytical systems, methods, or software. (e)(1) Each licensed payment stablecoin issuer shall pay an examination fee as established by the rules and regulations of the department to cover the costs of an examination or investigation.
(2) To aid the department in examining or investigating a licensed payment stablecoin issuer or its holding companies, affiliates, or subsidiaries, the department may retain a third-party expert to assist with such examination or investigation. The third-party expert shall analyze the accounts, records, affairs, systems, data, or information requested by the department and provide results to the department.
(3) Any fees or costs associated with a third-party expert retained to aid the department with the examination or investigation of the licensed payment stablecoin issuer shall be paid by the licensed payment stablecoin issuer.
(f) If a department enters into an agreement with a third-party expert for the purpose of aiding the department in evaluating a payment stablecoin issuer application or examining or investigating a licensed payment stablecoin issuer, the agreement may provide:
(1) All fees and costs incurred by the third-party expert shall be paid by the applicant or licensed payment stablecoin issuer;
(2) The fees may vary depending on the services provided by such third-party expert but as set forth in a general fee schedule;
(3) The purpose of the agreement is to aid the department in determining if the applicant or licensed payment stablecoin issuer, its holding companies, and affiliates have complied with this chapter, any rules and regulations promulgated pursuant to this chapter, and are operating in a safe and sound manner;
(4) The department shall direct the focus and scope of such third-party expert's analysis, including, but not limited to, the accounts, records, affairs, data, or information to be reviewed;
(5) The third-party expert shall produce at least one detailed report to the department which shall reach conclusions about its review and provide support for any conclusions in the report;
(6) The third-party expert shall have access to all of the records of the applicant or licensed payment stablecoin issuer, its holding companies, subsidiaries, and affiliates that the department may review;
(7) All information reviewed by the third-party expert shall be confidential and not subject to disclosure other than to the department or as may otherwise be required by law; and
(8) All services shall be performed in accordance with applicable professional standards.
(g) The department may:
(1) Make such public or private examination or investigation within or outside of this state as it deems necessary to determine whether any person has violated this chapter, any rule or regulation, or order issued under this chapter, to aid in the enforcement of this chapter, or to assist in prescribing rules and regulations pursuant to this chapter;
(2) Require or permit any person to file a statement in writing, under oath or otherwise, as to all the facts and circumstances concerning the matter to be investigated;
(3) Request any financial data from an applicant or licensed payment stablecoin issuer;
(4) Conduct an on-site examination of a licensed payment stablecoin issuer at any location of the licensed payment stablecoin issuer without prior notice to such licensed payment stablecoin issuer. The licensed payment stablecoin issuer shall pay all reasonably incurred costs of the examination. The department is authorized to net its out-of-state travel expenses incurred as a result of an examination or investigation of a licensed payment stablecoin issuer against payment from the licensed payment stablecoin issuer.
(h) For the purpose of conducting any examination or investigation pursuant to this Code section, the department shall have the power to:
(1) Administer oaths;
(2) Call any party to testify under oath in the course of an examination or investigation;
(3) Require attendance of witnesses;
(4) Require the production of books, accounts, records, documents, and papers; and
(5) Issue subpoenas for witnesses for the production of documentary evidence for such purposes. Such subpoenas may be served by certified mail or statutory overnight delivery, return receipt requested, to the addressee's business mailing address or by examiners appointed by the department, or shall be directed for service to the sheriff of the county where such witness resides or is found or where the person in custody of any books, accounts, records, documents, or papers resides or is found.
(i) The department may issue and apply to enforce subpoenas in this state at the request of any government agency, department, organization, or entity regulating payment stablecoins in another state if the activities constituting the alleged violation for which the information is sought would be a violation of this chapter if the alleged activities had occurred in this state.
(j) In case of refusal to obey a subpoena issued under this chapter to any person, a court of appropriate jurisdiction, upon application by the department, may issue to the person an order requiring him or her to appear before the court to show cause why he or she should not be held in contempt for refusal to obey the subpoena. Failure to obey a subpoena may be punished as contempt by the court.
(k)(1) Examinations and investigations conducted pursuant to this chapter and information obtained by the department in the course of conducting its duties pursuant to this chapter are confidential, except as provided in this subsection, pursuant to the provisions of Code Section 7-1-70.
(2) In addition to the exceptions set forth in subsection (b) of Code Section 7-1-70, the department is authorized to share information obtained under this chapter with other state and federal regulatory agencies or law enforcement authorities. The safeguards to confidentiality already in place within such agencies or authorities shall be deemed to be adequate for the purposes of this paragraph.
(3) The commissioner, or a designated examiner, may disclose such information as is necessary to conduct a civil or administrative investigation or proceeding.
(4) Information contained in the records of the department that is not confidential and may be made available to the public either on the department's website, upon receipt of a written request, or in the Nationwide Multistate Licensing System and Registry shall include:
(A) The name, business address, telephone number, facsimile number, and unique identifier of a licensed payment stablecoin issuer;
(B) The names and titles of the principal officers or directors;
(C) The name of the owner or owners;
(D) The business address of a licensed payment stablecoin issuer's registered agent for service;
(E) Information concerning any violation of this chapter, any rule or regulation, or any order issued pursuant to this chapter, provided that the information is derived from a final decision of the department; and
(F) Imposition of an administrative fine or penalty pursuant to this chapter.
(l) The authority to conduct an examination or investigation as provided for in this Code section shall remain in effect whether a licensed payment stablecoin issuer or person acts or claims to act pursuant to any licensing or registration law of this state or claims to act without such authority.
(m) In the absence of malice, fraud, or bad faith, a person is not subject to civil liability arising out of furnishing the department with any information required by this chapter or required by the department under the authority granted in this chapter. No civil cause of action of any nature shall arise against a person for any information:
(1) Relating to suspected prohibited conduct furnished to or received from law enforcement officials, their agents, or employees or to or from other regulatory licensing authorities;
(2) Furnished to or received from other persons subject to the provisions of this chapter; or
(3) Furnished in complaints filed with the department.
(n) The commissioner or any employee or agent of the department shall not be subject to civil liability, and no civil cause of action of any nature shall exist against such individuals arising out of the performance of activities or duties pursuant to this chapter or by publication of any report of activities pursuant to this Code section.
7-11-30.
(a)(1) Except as provided in this Code section, no person or group of persons acting in concert shall become an ultimate equitable owner of any licensed payment stablecoin issuer through acquisition or other change in control as a result of such acquisition or other change in control unless such person or group of persons acting in concert has first received approval for such acquisition, change in control, or designation as an executive officer from the department.
(2) To obtain such approval, such person or group of persons acting in concert shall:
(A) File an application with the department in such form as the department may prescribe from time to time;
(B) Provide such other information as the department may require concerning the financial responsibility, background, experience, and activities of the applicant, its directors and executive officers, if a corporation, and its members, if applicable, and of any proposed new directors, executive officers, members, or ultimate equitable owners of the licensed payment stablecoin issuer; and
(C) Pay such application fee as the department may prescribe.
(b) The department may prescribe additional requirements for the approval of such acquisition, change in control, or designation as an executive officer as a result of such acquisition or other change in control through rules and regulations.
(c) If the application is denied, the department shall notify the applicant in writing of the denial and the reasons for such denial.
7-11-31.
(a)(1) The department is authorized to suspend or revoke a license issued pursuant to this chapter if it finds that any grounds exist that would require or warrant the denial of an application for the issuance of a license.
(2) The department may also suspend or revoke a license if it finds the licensed payment stablecoin issuer has:
(A) Violated:
(i) This chapter or any regulation or decision issued pursuant to this chapter;
(ii) The GENIUS Act; or
(iii) Any condition imposed by the department in writing;
(B) Committed any fraud or engaged in any dishonest activities;
(C) Made a false statement in an application or failed to give a true reply to a question in an application or renewal;
(D) Demonstrated incompetency or untrustworthiness to act as a licensed payment stablecoin issuer;
(E) Failed to pay a judgment recovered in any court by a claimant or creditor in an action arising out of the licensed payment stablecoin issuer's business in this state within 30 days after such judgment becomes final;
(F) Purposefully withheld, deleted, destroyed, or altered information requested by an examiner of the department or made false statements or misrepresentations to the department;
(G) Operated in an unsafe or unsound manner; or
(H) Made a general assignment for the benefit of its creditors, suspended payment of its obligations, or is insolvent.
(b) The department may revoke a license if the licensed payment stablecoin issuer is subject to a final cease and desist order that has been issued within the five proceeding years if such order was based on a violation of this chapter. (c)(1) As used in this subsection, the term 'email address of record' means the email address that the licensed payment stablecoin issuer designated as the email address for regulatory contact on file with the Nationwide Multistate Licensing System and Registry.
(2) Notice of the department's intention to suspend or revoke a license shall be given to the licensed payment stablecoin issuer, sent by registered or certified main or statutory overnight delivery addressed to the principal place of business of such licensed payment stablecoin issuer or sent to the email address of record of the licensed payment stablecoin issuer.
(3) If a person refuses to accept service of the notice of intention to suspend or revoke by certified mail or statutory overnight delivery, the notice shall be served by the commissioner or the commissioner's authorized representative pursuant to any other method of lawful service, and the person shall be personally liable to the commissioner for a sum equal to the actual costs incurred to serve the notice. This liability shall be paid upon notice and demand by the commissioner or commissioner's representative and shall be assessed and collected in the same manner as other fees or fines administered by the commissioner.
(d) Within 30 days of the date of notice of intention to suspend or revoke, the licensed payment stablecoin issuer may request a hearing to contest the order in writing. If a hearing is not requested within 30 days of such notice of intention, the department shall enter a final decision on the suspension or revocation of the license.
(e) If the department receives a timely request for a hearing, the department shall notice a time and place at which the licensed payment stablecoin issuer may appear for a hearing within 30 days of the receipt of such request.
(f) Not later than 60 days after the date of the hearing, the department shall issue a final decision on the suspension or revocation.
(g) Any final decision of the department suspending or revoking a license shall state the grounds upon which such suspension or revocation is based and shall be effective on the date of issuance. A copy of the final decision shall be forwarded promptly by mail addressed to the principal place of business of the licensed payment stablecoin issuer, the authorized agent of said issuer, or the licensed payment stablecoin issuer.
(h) Any decision by the department suspending or revoking a license shall be subject to review pursuant to Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(i) Judicial review of any final decision of the department entered pursuant to this chapter shall be available solely in the superior court of the county of domicile of the department.
(j) Whenever the department initiates an administrative action against a licensed payment stablecoin issuer, the department may pursue such action to its conclusion even if a licensed payment stablecoin issuer withdraws or surrenders its license.
7-11-32.
(a) The department is authorized to issue an order requiring a licensed payment stablecoin issuer to cease and desist immediately from unauthorized activities whenever it shall appear to the department that the licensed payment stablecoin issuer has violated any law of this state, any applicable federal law or regulation, or any decision, order, or regulation of the department. Such cease and desist order shall be final 20 days after it is issued, unless the licensed payment stablecoin issuer submits a written request for a hearing within such 20 day period.
(b) The department may issue an order requiring a person to cease and desist immediately from unauthorized activities whenever it shall appear to the department that the person has engaged in activities requiring a license pursuant to this chapter and such person is not a licensed or permitted stablecoin issuer. Such cease and desist order shall be final 30 days from the date of issuance, and there shall be no opportunity for an administrative hearing. If the proper license or authority to engage in such activities is obtained and provided to the department within the 30 day period, such order shall be rescinded by the department.
(c) Any cease and desist order issued pursuant to this Code section shall be in writing, sent by registered or certified mail or statutory overnight delivery, and addressed to the person's business address or, if the person is an individual, to the individual's personal address.
(d) Any hearing authorized under this Code section shall be conducted in pursuant to Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'
(e) Judicial review of any final order entered by the department pursuant to this chapter shall be available solely in the superior court of the county of domicile of the department.
7-11-33.
(a) Whenever a person fails to comply with the terms of a final decision or order of the department issued pursuant to this chapter, the department, through the Attorney General and upon three days' notice to such person, petition the superior court where the person is domiciled for an order directing such person to obey the final decision or order within a period of time as shall be fixed by the court. Upon the filing of a petition, the court shall allow a motion to show cause as to why it should not be granted. After a hearing on the merits or after a failure of such person to appear when ordered, the court shall grant the petition of the department upon a finding that the order of the department was properly issued.
(b)(1) Any person who violates the terms of any final decision or order issued pursuant to this chapter shall be liable for a civil penalty not to exceed $1,000.00. Each day the violation continues shall constitute a separate offense.
(2) In determining the amount of the penalty, the department shall take into account:
(A) The appropriateness of the penalty relative to the financial resources of such person;
(B) Good faith efforts of such person to comply with the order;
(C) The severity of the violation;
(D) The history of previous violations by such person; and
(E) Any other factors or circumstances that contributed to the violation.
(3) The department is authorized to compromise, modify, or refund any penalty which has been imposed pursuant to this Code section.
(4) Any person penalized pursuant to this subsection shall have the right to request a hearing within ten days of notification of such penalty has been served upon such person. Otherwise, such penalty shall be considered final except as to judicial review as provided in Code Section 7-1-90.
7-11-34.
The department shall be authorized to remove a director, officer, employee, ultimate equitable owner, or controlling stockholder of a licensed payment stablecoin issuer from the position or office he or she holds, and prohibit further participation in the affairs of the licensed payment stablecoin issuer and any entity supervised, licensed, or registered with the department if the department determines that:
(1) The director, officer, employee, or controlling stockholder has knowingly committed a violation or attempted a violation of this chapter, the GENIUS Act, or any regulation, decision, or order issued pursuant to this chapter; or
(2) The director, officer, employee, or controlling stockholder has knowingly committed a violation of a federal or state law or regulation, including, but not limited to, Subchapter II of Chapter 53 of Title 31 of the United States Code."
SECTION 4.
Subject to appropriations by the General Assembly, this Act shall become effective upon the earlier of:
(1) January 18, 2027; or
(2) 120 days after the issuance of final implementing regulations for the GENIUS Act.
SECTION 5.
All laws and parts of laws in conflict with this Act are repealed.