Senate Banking and Financial Institutions Committee, March 17, 2026 Video: https://vimeo.com/1174402201 (a timestamp t plays at https://vimeo.com/1174402201#t=s) Page: https://georgiacommons.org/meetings/2026-03-17/senate-banking-and-financial-institutions This is a machine transcript of the General Assembly's video, made by a speech-recognition model. It is not an official record and can mishear words, names, and numbers. Speakers are not identified. The video is the record: every timestamp links to the moment it plays. [0:20:01] Order. Uh, banking, uh, finance meeting to order. I'd like, before we get started, to recognize on everybody to turn your attention to my left over here. We have a new member who finally showed up for a meeting. Mr. Steven McNeel here. [0:20:13] Welcome. [0:20:13] Yeah. So we are so glad to have him here today. He was a treat yesterday in the well on his first bill. We were very, very, very gentle on him. Uh, he went through it so smooth. I mean, he was just a, a, a consummate person. Very, so he did a real good job yesterday. Senator. [0:20:29] Thank you, Chairman. [0:20:30] He did a really good job. [0:20:31] Animal. [0:20:32] He did ... [0:20:34] All creatures great and small. [0:20:35] All creatures great and small. [0:20:36] Live as a trial lawyer. [0:20:37] Yeah. Great first bill to start out on. [0:20:40] Compassionate trial lawyer. [0:20:41] Absolutely. Uh, all right, let's get the par- let's get this party going here. Representative Camp, do you wanna come to the front or do you wanna go to the podium? [0:20:48] I'm fine. [0:20:48] Do it right here on number two then. Come on and tell us, tell us what you got here. Oh, and what, what, what are we working off of, just to make sure we're all on the same sheet here? [0:20:56] Sure. We are looking at LC620306S, and this is, um, House Bill 948. [0:21:05] All right. Floor is yours. [0:21:06] All right. Thank you so much. All right. So someone in my district brought me a challenge. They were foreclosed on a couple years ago, and they found out later on that there was excess funds. They did not understand how to access those funds. Um, there are some predatory companies that do exist from what I understand that can help, but they take a large portion of those excess funds. This individual asked that we create a law that would let people know when they're getting foreclosed, going through the paperwork, exactly how to get those funds back. [0:21:44] And I worked with a number of organizations, Georgia, um, Banking Association. I worked with McCullough Ramer, who does a lot of foreclosures. And we came up with some language that, um, you'll find in this bill, and pretty much it just lets individuals know what they need to do to access those funds. And that's pretty much the whole bill. [0:22:06] Are we changing anything as, uh, in regards to any codes, or everything's staying the same on the code sections? [0:22:11] Well, um, it says here, you know, "The notice shall be in the following language." [0:22:17] Right. [0:22:17] And that would be in the code section, lines 24 through 27. Um, surplus funds may be considered abandoned property and may be en-sheeted by, to the State of Georgia if you do not claim the funds. And, um ... [0:22:30] Just to make sure that we're on the same, um, thinking here, this applies to f- uh, a bankruptcy, uh, 71311, et cetera, or is there any kind of designation difference? [0:22:40] No, this is not bankruptcy. This is a foreclosure. [0:22:41] Foreclosure. Complete foreclosure. [0:22:42] And we're not, you know, in, the State of Georgia's a non-judicial foreclosure state. [0:22:45] Gotcha. [0:22:46] So you just have to send notice. [0:22:46] Well, sometimes they'll declare bankruptcy in a foreclosure is what I was getting at. [0:22:49] And, and that will stop a foreclosure at times. [0:22:51] Right. Yeah. [0:22:52] Most definitely. [0:22:53] Right. [0:22:53] I do have, um, the Georgia Association Realtors here. They also, um, were kind enough to look over this, and they might wanna say something regarding this as well if you're interested. [0:23:01] I don't, but we got, uh, uh, Jeff's here. Yeah, Jeff Ledford with the Real- Jeff, you wanna take the podium for a minute? Sit here with Beth. She's over here. [0:23:07] Okay. Thank you. [0:23:10] Sure. Do you want me here or ... [0:23:11] It don't matter. [0:23:11] Yeah, I was just- [0:23:12] Where you wanna be. Here, sit right there. I'm gonna change everyone once, once I- [0:23:15] Proud to sit next to one of, uh, one of our members. [0:23:17] Put one over there too. Now we don't know you. Tell us who you are. [0:23:21] Hi, Jeff Ledford, and, uh, I'm with the Georgia Realtors. Uh, we are supportive of this bill. Um, this, any time you have clarity and openness and transparency, um, you know, unfortunately sometimes there are times where someone may lose their home, but at least they get to, uh, realize the equity that they may have gained, so- [0:23:40] Absolutely [0:23:40] ... we support it. [0:23:41] Thank you. [0:23:43] Representative Camp, thank you for bringing this bill. Any, uh, members have questions on this bill? What number are you on, Emma? [0:23:48] Uh, number 10, Mr. Chairman. [0:23:50] You're recognized for questions. Senator Jones. [0:23:51] Thank you. And, um, Representative, thank you for bringing this bill, which I think all of us in here should support. But I'm looking on, uh, and c- and please correct me if the language has changed, by the way, over on line 24 on page two. [0:24:08] Mm-hmm. [0:24:09] And it says, "Surplus funds may be considered." Is there a reason why there's a may in there instead of a shall? [0:24:16] Well, um, over a period of time, if they're not accessed by the homeowner, um, then the person holding the funds will transfer them to the State of Georgia, um, as abandoned pr- uh, unclaimed property. And so the mechanism on how to get them back from that situation is also prescribed in this code section. There is a methodology to get it back in case someone, perhaps someone got foreclosed on, like the woman, um, who I mentioned, and this would give her acc- uh, knowledge on how to access the funds if those excess funds had been sent to the State of Georgia Department of Revenue as unclaimed property. [0:24:55] And one follow-up, Mr. Chairman, but is there- [0:24:58] Go ahead. Sure [0:25:01] ... um, may kind of implies to me that the funds don't have to be abandoned. They could be considered, I don't know, somewhere else as some other form of, of, uh, property. [0:25:10] Well, they have to be held for a period of time by the trust account where the funds are, where the foreclosure took place and the sale took place. So they have to hold them for a period of time. Um, going back to line 17, this might be a little bit more descriptive, um, and it's under line, "Notice of the mortgagor's right to initiate a claim for any surplus funds after the foreclosure sale pursuant to Code Section 44-14-190, and instructions on how to make the initial claim for surplus funds due to them." And then the subsequent, the notice will also include w- how they would access the funds in that time period Um, right now it says on lines 46, currently unclaimed funds is five years, but it's subject to change, and it could be revised in that code section 44-12-193. [0:25:57] So this- ... this me- this measure hopefully will survive any changes to that code section in the future to make sure that if someone is foreclosed and there are excess funds that are available after the foreclosure and all, all the fees and all that stuff's paid, that the individual could access the funds. Um, and it says surplus funds may be considered abandoned property. Not necessarily. It's possible that, um, a trust account could hold those funds longer than the prescribed time knowing that someone is coming after them. [0:26:27] If you said shall be, then that would in, that would charge all the funds to go immediately into the, um, unclaimed funds with the Department of Revenue is my understanding. [0:26:36] So this does make it easier for the homeowner to reclaim his funds. [0:26:39] That is my understanding, and that is my, my desire. [0:26:43] Goal. [0:26:43] Yes. [0:26:43] That's your goal. Thank you. [0:26:46] Thank you. [0:26:47] Any more questions? [0:26:49] I got... [0:26:50] Oh. [0:26:52] Thank you for bringing this, uh, fine bill and, uh, having realest- Realtors on board. Uh, the real issue is when you first start foreclosing, they'll give them that notice, it'll run four weeks or whatever, however many weeks, and in that first notice, or would it be in four times that they'll... How does that work with respect to giving them notice? [0:27:20] Well, it's saying here that, um, let's see. It initiates back on, um, line 11, notice of initiation of proceeding to exercise power of sale or foreclosure. And so my understanding is it will be in all documents, uh, repeated multiple times that this is how you access excess funds. Um, I will tell you, I was a Realtor back during the Great Recession, and nobody had excess funds. Everyone was underwater that got foreclosed upon, and there were many, many short sales that took place. We're in a, in a different spot now, so this, in my opinion, is probably very necessary, but it w- it should be on all the documentation that goes out to the person being foreclosed. [0:28:01] This might get me in trouble, but let me ask, is there a way to say, "If you have equity..." I'm just thinking, I'm thinking out loud. It might get me in trouble. If you believe you make, if you... Because the average person being foreclosed on, when they read this, it won't mean anything, I don't think. I, I'm, you know... I think it's a good, good purpose. I've actually handled some of this, getting some of the money back for people, but I'm, and I'm wondering- [0:28:37] It's all there [0:28:37] ... what the Realtors and the real estate is, what do y'all think about, I'm just gonna say if there was some bold language, and I'm not trying to give you an amendment, but I'm trying to think of one. If you believe you have equity, be aware you may have surplus funds after the foreclosure. That's the essence of it, and that might be too much. It might get somebody in trouble. But if you believe you have equity, [0:29:15] after the surplus, after the foreclosure, you may have surplus funds to be claimed. What- [0:29:24] Doesn't that have to be reported, uh, in, and then already on the statement, Jeff, and usually on foreclosures? [0:29:28] Uh, we- [0:29:30] I don't know [0:29:30] ... that would be a question for our, our folks in the lending industry. [0:29:35] Do we... I don't know if we have anybody from McCullough Wright here with us today or not. [0:29:37] I don't, I don't think it's in. I don't, I've never seen that language. That's what all these... It's kind of a big secret in Georgia. In other states, it's a real big thing. I mean, in some states, there are companies that get, that contact the county where the monies are, wherever, and see how much excess funds there are. And they'll then contact the land, I mean, the former owner and say, "Hey, you got some money that they didn't know about. [0:30:09] We'll get it for you for X percentage." And that's generally how... 'Cause most people don't know. They'll never know. This- [0:30:16] Well, after this, after this meeting, everybody's gonna be calling that number anyway to find out if they got money sitting around, so [0:30:21] Yeah. Because when you look at this, you gotta look at the code section. A- and at least it does say surplus funds may be available. [0:30:28] Yeah. [0:30:29] But, uh, but I'm just wondering, that may be after the meeting, I- I- I just want to throw that out because the average per... I once did foreclosure, uh, years ago, and I had to get out of that business, so But, uh, if you believe you have [0:30:55] surplus equity, and some language that says to put them on notice to look for the money, because they won't be looking for the money. 'Cause most people are in distress. They lost their job, they lost, they're sick, something happened, and they're not even reading the mail. But we do the best we can. I think it's a fine legislation. [0:31:16] Thank you. [0:31:16] Appreciate it. [0:31:17] Senator Hodges. [0:31:20] Thank you, Mr. Chairman. That, it's a good bill. I appreciate it. I really do. But let me make sure that we understand the way these things work, I think, is that if I'm foreclosing on your house, and you owe $50,000, and somebody shows up at the courthouse steps and buys your house for 100, then I get my 50, and your, that other 50 is yours. [0:31:51] After fees, yes. [0:31:52] After fees, okay. [0:31:53] After legal fees and all that stuff, yes. [0:31:55] But if I foreclose on your house, and I as a bank go and I buy the house, the bank buys the house, then you're not gonna get any excess. [0:32:05] That's correct, because there are no excess funds at the sale. [0:32:08] Because I'm basically buying the house as full payment of the loan. [0:32:13] Correct. [0:32:13] So, so just wanted to, uh, make sure that that's the case because it, it, it's not very often that there's excess funds. I mean, it happens occasionally, but- [0:32:24] Yeah, not very often [0:32:24] ... but it's not very often. [0:32:26] There are competitive areas- [0:32:28] Yeah [0:32:28] ... where individuals are on the steps of the courthouse every month- Yeah ... in very competitive areas. [0:32:33] Yeah, yeah. [0:32:33] You mention the areas, you'll be surprised. Yeah. [0:32:35] Oh, wow. [0:32:35] It, it's very competitive, but I know for the most part, banks- [0:32:38] But they're not gonna pay. I mean, they're not, they're there for a bargain. [0:32:41] Yes. [0:32:41] So. [0:32:42] Yes. And but the banks typically are the ones who are buying the properties back. [0:32:47] Yeah. [0:32:47] Um, this is in the, the chance that it's sold on the courthouse steps, and there are excess funds- [0:32:53] Yeah [0:32:53] ... which is what happened in the situation of, uh, the constituent who brought him. [0:32:56] And it's, it's a very good bill. They should, you should have notice that there might be, and then, and then the, and whoever, um, whoever gets the funds or, or is holding the excess funds should hold them in trust, and you should be able to get to them easily. And this helps people do that, so I, I appreciate the bill. [0:33:19] Thank you. Chairman Harbin. [0:33:20] Yes, yes. Thank you. Good bill. Uh, question is this. When this moves to the surplus, or to the, um, unclaimed area, is there a notice sent then as well? There's one that's at, at the foreclosure, but when this goes to unclaimed property, I don't know, if I were getting that notice, I would, the bells would go off. But is there any notice that it moves from... I'm assuming this is in a trustee position or a legal situation, acting as a trustee, going into unclaimed property. [0:33:51] Is there any notification on that? [0:33:52] Well, that's one of the challenges. When a person is foreclosed, um, you know, my address is XYZ Smith Street, and I'm foreclosed upon, I no longer live at XYZ- [0:34:02] That's right. Right [0:34:02] ... Smith Street. [0:34:03] Right. [0:34:03] So it's impossible oftentimes to send mail to an individual and let them know that this is the case. Um, I don't know if any of you have ever been, but the Georgia Department of Revenue has a very robust unclaimed funds website. [0:34:17] Mm-hmm. [0:34:17] You can put your name in, and, um, you'll see everyone who possibly could ever have been you on that list. [0:34:22] Wow. [0:34:22] And, um, if you match up social security-wise, I, I think that's how the funds are released. You, um, submit a claim form to them online. So I, I would suggest to anyone, I mean, it could be for a lot of different things. Actually, I found money there before owed to me- [0:34:38] Yeah [0:34:38] ... from a cellphone account that I sh- closed out before the month ended- [0:34:41] Yeah [0:34:41] ... and didn't realize I was owed money back. [0:34:43] Wow. Wow. [0:34:44] So, um, that, honestly, that's probably the best way. We probably need to be a lot better at advertising that funds- [0:34:51] Right [0:34:51] ... are sitting there at the Georgia Department of Revenue. I feel like they're pretty safe there, for sure. Um, and that's a good clearing house to make sure the funds get to where they need to go. But as far as notification, um- [0:35:02] Well- [0:35:02] ... you know, we, we generally don't send notifications on legal issues via email or telephone. I wouldn't trust someone that called me and told me I had unclaimed funds anyway. [0:35:10] True. Yeah. [0:35:10] So, um, probably the system we have right now probably is the safest for- [0:35:14] Yeah [0:35:14] ... fraud issues. [0:35:16] Very good. Pleasure of the committee. [0:35:19] I move to pass. [0:35:20] Have it do pass. [0:35:21] Second. [0:35:22] Have a second. They're all in favor, please raise your hand. Any opposed? Chairman, who carrying your bill? [0:35:29] I have not asked anyone yet. [0:35:30] Okay. [0:35:30] Is there anyone on the committee that would like to carry it? Anyone that you would like to recommend to carry it? [0:35:38] Representative? Um, uh, Senator Steven, what are you thinking? [0:35:42] I like to. [0:35:43] It'd be your second bill. How about that? [0:35:45] Yeah. He's a, he's a, he's an esteemed attorney from- [0:35:47] Third at least [0:35:48] ... the second Georg- middle Georgia area. [0:35:49] That's right. [0:35:49] I think it, I think it'd be perfect for him. [0:35:51] He's in a neighboring district. [0:35:52] I have a bill. [0:35:52] Foreclosure out in Ball and was on the water. Uh, y- yeah. And- At, uh- [0:35:56] You don't mind carrying it? [0:35:57] No, I don't mind. [0:35:58] That's great. [0:35:58] Thank you so much. Thank you so much. [0:35:59] That's great. [0:35:59] And thank you, Mr. Chairman. [0:36:00] Thank you for making it, Chairman. A very good bill. [0:36:01] Appreciate you. [0:36:01] Thank you. [0:36:09] Okay, let's see here. [0:36:13] Representative Hong. Number two there. Come on and sit down, unless you wanna go to the podium. You wanna sit down? [0:36:18] Uh, yeah, I'd like to sit here. [0:36:19] Okay. [0:36:19] Thank you, Chairman and members of the committee. I have HB 1024, which is LC 62-0410S. This bill deals with homestead exemptions in a bankruptcy case. Um, bankruptcy law is governed by federal law. But some states, including Georgia, have our own exemptions, meaning, uh, the amount of assets that you can keep after filing for bankruptcy. In Georgia, the homestead exemptions, so the amount of equity that you can keep in your home after filing bankruptcy currently is at 21,500 for, um, single titled homes and 50,000, or 43,000 for a jointly titled homes. [0:37:05] Um, this bill will increase that exemption to 50,000 for individual and 100,000 for joint. I've provided a work, um, a little sheet that goes through all of the homestead exemptions by different states. And as you see, Georgia is more towards the bottom as far as our exemptions, and it has not been updated for approximately over 11 years. So for that, we also added in this bill a index, and so that people don't forget about this for over a decade and/or that we don't have to come back every year to look at what the exemptions should be. [0:37:44] And so, um, that index will go through the, um, inflation rate to determine what that exemption should be, and that mirrors what the federal, um, asset exemption under bankruptcy, uh, does as well. I'll take any questions. [0:38:00] Interesting. Question on the committee [0:38:03] Thank you. Great, great bill. It's very interesting. You look at Florida especially, and you see the number of people who move to Florida to protect assets, and that's really what that's about because of that. Uh, I think it's reasonable, and I think a lot of single family houses need that increase, and we see a lot of single family moms, things of that nature. I think the increase makes good, excel- excellent in that respect. I think as we look at us, we're down towards the bottom. [0:38:28] Right. [0:38:29] And, uh, these people are already struggling- [0:38:32] Right [0:38:32] ... and, uh, it makes sense to- Is there a question in that comment there? My question is this: Where'd you come up with such a good bill? Thank you. [0:38:40] I- I've been practicing bankruptcy laws. One of my practices is bankruptcy law. I've been doing it for about 18 years now. [0:38:45] Wow. [0:38:46] Yeah. [0:38:46] Fantastic. [0:38:46] That's awesome. [0:38:47] Thank you. [0:38:47] Well done. Very good bill. [0:38:49] When was the last time that was, uh, updated? [0:38:52] A- about- [0:38:52] Three- [0:38:52] ... over 11 years ago. [0:38:54] 11, wow. [0:38:54] Yeah. [0:38:55] 11 years. [0:38:56] Mm-hmm. [0:38:56] Wow. And with the price of houses rising. [0:39:01] Quick question. [0:39:01] All right, go ahead, Senator Hodges. Representative Hong, it's a great bill. Just one question about your chart. Is it, would this be for both spouses or for one person? [0:39:11] This is for individuals. [0:39:12] Single [0:39:12] So single title homes, correct. [0:39:14] Some, some- [0:39:14] So you times it by two if it's a joint title. [0:39:17] And some states do and some states don't, or do most states do it if, if a couple lives in the house, do they- [0:39:25] That's correct. [0:39:25] Okay. [0:39:25] If two people li- If a couple lives in a house, it would be times two the amount. [0:39:30] Okay. Thank you. [0:39:32] Mm-hmm. [0:39:35] Oh, so that- that's the- [0:39:36] This is for ind- correct [0:39:37] ... single [0:39:38] ... single titled homes. [0:39:39] Gotcha. [0:39:41] Good. Um, Florida is unlimited. How, how does that work? Why do so many people go to Florida and exempt their... Is it just whatever the value of the equity is, you just can't take their home? [0:39:58] It's- [0:39:58] Or what is it? What is it? [0:39:58] ... um, also by a certain acreage as well. But, um, a- again, this is for people who file bankruptcy. And I cannot tell you why people move to Florida and file bankruptcy and keep their homes 'cause I don't live in Florida and I haven't practiced in Florida. But that's... You can see Florida. Texas is also unlimited. I mean, you see, uh, about six states that are unlimited here as far as the bankruptcy exemptions. [0:40:27] Thank you. [0:40:27] Thank you. [0:40:28] That's a good question. [0:40:30] We make, we need to attract some people to Georgia. [0:40:33] That's a, that's a good question. Really is. Interesting. We're finding out what the answer might be on that right there. Pleasure of the committee. [0:40:42] Move do pass. [0:40:43] Have a do pass. Senator Hodges. [0:40:44] Second. [0:40:44] Senator Mangham. Anybody, any more discussion on this bill? All those in favor, please raise your hand. Pass unanimous. [0:40:52] Thank you. [0:40:52] Who do you want to carry your bill? [0:40:54] Um, I briefly talked to Vice Chair Clint Dixon about it, but, uh- [0:40:59] Excellent choice [0:41:00] ... if there is... Okay. I'll talk to him and just- [0:41:01] I'm sure he'll just jump right in. He's got nothing else to do. [0:41:03] Okay. [0:41:04] He's- [0:41:04] Unless there's a member of the committee that would be interested in carrying it. [0:41:08] Well, no, you're welcome to, you're welcome to. Here they are. [0:41:10] I will. I, maybe I'll reach out to some of y'all. [0:41:12] Yeah. [0:41:13] Okay. [0:41:13] Awesome. [0:41:13] All right. Okay. [0:41:14] I have no problem. No, I think it's a great, I think it's a great move. [0:41:16] Thank you. [0:41:16] It's good, it's a good bill. [0:41:17] Okay. I'll reach out to you. Thank you so much. Thank you. [0:41:20] Thank you. Thank you for bringing the bill. Okay. Let me get back to my thing. Representative McNeel, how are you? [0:41:29] I'm well. May I have, um, Richard Grovost- [0:41:32] Absolutely [0:41:32] ... join me up here? [0:41:33] Anything you want. [0:41:33] He's been waiting. [0:41:33] Chairman, anything you want. [0:41:35] He's... Oh, thank you. Well, then we pass this bill- [0:41:37] Oh [0:41:37] ... and I can go. [0:41:38] Well, you, you didn't bring lunch with you, but that's okay. [0:41:40] Oh, I'm sorry. [0:41:41] I know. You gotta work on that. [0:41:42] I will. Yes, sir, I will next time- [0:41:43] That's right [0:41:44] ... for sure. This is- [0:41:44] Please tell us who you, who you are [0:41:45] ... this is Richard Grovost. He's with the Georgia Association of Licensed Repossessors in Georgia. Um, I appreciate the opportunity to talk to you guys about HB 1134. We're working with LC 394878. This bill updates Georgia code to industry standards for repossessors of motor vehicles. It updates the rules of notification for reclaiming personal property taken during a vehicle repossession, making it consistent with neighboring states and laws, and it clarifies and provides guidelines for the completion of a vehicle repossession. [0:42:19] This bill lowers the storage period for personal prope- property left in a vehicle f- from a repo, and it's just personal property, uh, from 70 days to 30 days, which aligns with industry standards, streamlining operations while allowing sufficient time for debtor redemption of this personal property. By reducing unpaid storage time from 70 to 30 days, there's no need for a second notice because now we, currently we have a second notice that is required with the se- 70 days. So this would just be 30 days, one notice. [0:42:50] This will provide consistency with neighboring state laws. I've handed out a comparison page to see how we compare, um, with our sister states around us. Also, the second thing this bill does is to provide guidelines for determining the completion of a repossession of a motor vehicle, and it will be when the vehicle's attached to a tow truck, the agent has entered the vehicle, and, or- or the vehicle's moved from its original, um, location. This will bring... This will update code, provide clarity, and bring Georgia in line with current industry practices. [0:43:24] And that is the bill. [0:43:30] Make sure, just cut, for clarity sakes, what we're saying here is anything left in a vehicle- [0:43:36] Yes, sir [0:43:37] ... after 30 days, the tow truck company or whoever repossess the vehicle or pick up the vehicle can dispose of that property. [0:43:46] Correct. [0:43:46] Okay. [0:43:47] Yes. [0:43:47] Okay. Of, of what was inside- [0:43:49] What was inside the pro- yes [0:43:50] ... what was inside that- [0:43:51] Yeah. Only 30%, is that correct, 30% actually redeem that property because they know they're out for repossession, so they normally do not redeem it. [0:44:02] Are the tow... I know I'm getting ahead. Are the tow truck drivers or the repossessors, are they allowed to go into the, the, the, the, the vehicle at any time and search a vehicle? Is that, that... I mean, they're allowed to do that immediately? [0:44:14] Oh, we do it immediately, yes, sir. [0:44:15] State who you are, please. [0:44:16] Oh, I'm sorry. Richard Grovost. [0:44:17] Okay. And, um, yes, sir. We remove all the contents immediately once the vehicle's secured back on our facility, and we do a detailed inventory, upload the pictures and so forth, and, and then send a letter within the first 10 days of the repossession certified as Georgia law to the consumer. [0:44:36] Oh, I'm, I'm on your side and I think it's a good bill. My question is to you, are you doing it by snail mail or are you... How are you, how are you getting to the people? 'Cause I know 30 days sometimes with amount of mail is- [0:44:45] Right. It's cert- It's, it's clear. It's certified mail. [0:44:49] Certified mail. [0:44:49] Certified mail. [0:44:50] Which is, which is already the law. [0:44:51] It's law. Yeah. [0:44:52] Yes, sir. [0:44:52] It's law. Yes, sir. [0:44:54] So instead of... So just one notice, send it to, basically you can do your thing. [0:44:57] Correct. [0:44:58] Questions from the committee? [0:45:01] I, I, you know, my... I'm just cur- curious, what's the trend as far as repossession over the last, say, three or four or five years? What have we seen? I know during COVID we had some issues that were going on as far as that. Is that trend changing, increasing? Uh, c- you have any, any numbers on that or have any idea? [0:45:19] So, [0:45:22] uh, you, you wanna answer this? [0:45:23] I, yeah. Oh, yeah. I'd be glad to. [0:45:24] You answer. Yeah. [0:45:24] Yes. It's obviously with the state of the commony- economy today, the, the repossessions are going up. Um, it's just where we're at, you know. But I can tell you, uh, you raised a good question at the last meeting about how the, uh, financial institutions are repossessing cars today. And the history from the... I've been doing it 32 years. So in the history of 32 years, typically it was 90 days delinquency they wanted to repossess the car. Today, it's 120 plus days. [0:45:56] These lenders are doing everything they can to work with the consumer not to repossess the vehicle. And then even going so far as to, you know, technology's changed as well as everything else. [0:46:09] Right. [0:46:09] So the communication, they're emailing, text messaging, along with sending out snail mail, mail just saying, "Hey, you know, your vehicle's delinquent. We have intentions on repossessing it." So the awareness is huge. That's why the, there's not as much property as what used to be. They have the awareness that we're coming. We've been alerted. And then therefore, but the, the 70 days is just not simply aligned with all the other states in the South. It's usually typically 30 or less. [0:46:39] Okay. [0:46:39] Well, I've got a follow-up question, sir. [0:46:40] Go ahead, sir. [0:46:41] Quoting with the technology, I was very interested in this. The ability to turn a car off, um, remotely, is that happening in your industry at all? [0:46:51] I'll- [0:46:51] Just curious. [0:46:51] I'll take that. [0:46:52] Okay. [0:46:52] So I'm, I'm a used car dealer. [0:46:54] Okay. [0:46:55] And I fi- I finance vehicles. And we do use GPS as part of our tools to be able to finance folks that we might not normally, uh, be able to finance. So we do not use... We are capable of, of using that tool. I personally do not believe in that tool, um, because that is not what it's here for. So to answer your question, no, I do not use it. And no, I do not recommend it. [0:47:22] Right. Okay. I was just wondering- [0:47:24] Yeah [0:47:24] ... what we have technology-wise. [0:47:25] But we do, we do have the technology. We have the technol- With the g- with the GPS on the vehicles, um, you have the technology to actually put, like, a geo- [0:47:34] Right [0:47:34] ... fence around them. [0:47:35] Geofence around it, right. [0:47:35] So if they were to leave that location- [0:47:38] Location [0:47:38] ... if, if they were, you know, a credit challenged person and you needed to make sure that they weren't going too far- [0:47:47] Right [0:47:47] ... with your vehicle, you could actually put, like, a geofence around them and get a little alert saying... Or once it's been a certain amount of days that it's past due, you also get an alert of where that car has been. So. [0:47:57] But that vehicle has to be stationary before anybody that might believe in what you're talking about would turn it off. [0:48:02] Correct. [0:48:02] Right. [0:48:03] Correct. [0:48:03] Yeah. [0:48:03] Correct. It would never, it would never turn off. It, it- [0:48:05] Right [0:48:05] ... doesn't have the capability to turn off when the- [0:48:07] Right [0:48:07] ... vehicle is in, in motion. [0:48:09] In motion as far as- [0:48:09] Yes, sir [0:48:10] ... okay. But, and I mean, you serve a great market that we don't realize. People have to have transportation to work, and sometimes you're the k- they're, you're the key to keep them moving as far as that portion. [0:48:20] Thank you. [0:48:20] Thank you, appreciate it. [0:48:21] Thank you. [0:48:22] Good bill. Good bill. [0:48:24] Thank you. [0:48:24] Any more questions? Uh, where you at, number eight? Uh, 10. Senator, Senator Manuel, go ahead. [0:48:30] Thank you, uh, Representative, for bringing this bill. I, I, I just have a question here looking at, um, on the back of the page on line 29. Um, it defines a lawful repossession as being completed when the tow truck, when the vehicle is basically attached to a tow truck or some kind of carrier loads it up. [0:48:52] Yes, sir. [0:48:52] What do you do, how does that work when the incorrect vehicle is repossessed? [0:49:00] Uh, well, the- [0:49:01] That's a great question. [0:49:01] No, it's, it's a great question. And that should never happen because unless all 17 char- [0:49:07] It does happen. Okay, so I know it should never happen- [0:49:09] Oh, yeah [0:49:09] ... but it does. Would that- [0:49:10] We check- [0:49:10] ... unlawful repossession then be considered- [0:49:13] Sure [0:49:13] ... lawful under this language? [0:49:16] Yeah. I, I can't speak on that because we check the VIN on the dash. I, I don't understand. All 17 characters must match perfectly. [0:49:24] Yeah. I understand. People modify VIN numbers and everything else- [0:49:27] Yeah [0:49:27] ... on vehicles. They're very clever with these cars nowadays. [0:49:30] So are you asking if they've modified the VIN number and- [0:49:33] Well, they're already- [0:49:33] If mistakes- [0:49:33] ... they're already a criminal if they modified the VIN number, so. [0:49:36] No, I'm just asking if mistakes are made. I don't see a recourse in here if someone car... I mean, you send out a tow driver and they may mistakenly, uh, repossess the wrong blue Ford, as an example- [0:49:50] Yeah [0:49:50] ... that's sitting right next to it. How does that person, what kind of recourse does that person have in the event it does happen? [0:49:57] I m- I, I would assume then, um... Gosh, that's a great question because I just don't get in those situations because we repossess the right vehicles. I mean, it's just- [0:50:08] I would, I would believe that the full force of the law would be, would be behind them and they could, they could take lawful action against, um, the people that have repossessed the vehicle because they would have have gotten the VIN number from someone. And so that the VIN number is registered to that specific vehicle, there, there is a problem somewhere. So, um, law enforcement would have to intervene, and then that would be a, a legal question for them. Yes, sir. [0:50:36] Because you know there really is a cottage industry to change, uh, VIN numbers on cars once vehicles are, you know, stolen or something like that. [0:50:45] Aren't those called chop- [0:50:45] And it does happen more than you think [0:50:46] ... chop shops or something like that? [0:50:48] Oh, yeah, they do it all the time. [0:50:49] Yeah. [0:50:49] It does happen- [0:50:50] Mm-hmm [0:50:50] ... more than you think. [0:50:50] Yeah. [0:50:50] So- [0:50:51] Yeah [0:50:51] ... in the event, um- [0:50:53] Criminal [0:50:55] ... I didn't want good people to be caught up in language- [0:50:58] Sure. I will send you- [0:50:59] ... that say- [0:51:00] I've been in the car business- [0:51:00] ... you don't have the right to the car anymore- [0:51:01] I'm sorry [0:51:02] ... just because we put a hook on it. [0:51:03] Yes, sir. [0:51:04] Is anybody out in the audience who had their car repossessed wanna speak to this bill? Just, just checking, but it- [0:51:10] That is, that is quite a unique, um, question because I, I've been in the car business for, um, 30-plus years. And- [0:51:17] 35, myself. [0:51:18] Oh, cool. [0:51:19] Four-wheeler. [0:51:19] I've never had that. Then, then you would know more than I. Have, has this happened with you? Because I've not had this happen- [0:51:25] It has not with people that I know, yes [0:51:25] ... in my business. [0:51:26] It, it's happened to clients and customers. [0:51:28] Really? I would love to talk to you online more about this 'cause it's interesting. [0:51:31] I- [0:51:32] I've never heard of it happening [0:51:33] I would just, just like to state that if they've changed or altered the VIN number from the original VIN number, then obviously we wouldn't take possession because it doesn't match. [0:51:45] Yeah. Fair enough. [0:51:47] We have one follow-up, Mr. Chairman. [0:51:49] Sure, go ahead. [0:51:49] You know, my concern is, um, really the language that says the lawful repossession is completed just because the vehicle had been hooked up to a tow truck. That's my concern 'cause it doesn't say that the lawful, that it has to be the correct VIN and all that other good stuff on here in this language on line 29. Are you creating a situation where good people could be trapped, um, trying to fight for their car, um, but they have no right to it because it's now been deemed legally repossessed just because it was hooked up to back of a tow truck? [0:52:28] I mean, that... You're making a valid point- [0:52:30] Mm-hmm [0:52:30] ... and I understand what you're asking, but, but I think the interpretation that I'm understanding of what you're asking is if somebody does something unlawful and illegal and alters the vehicle and we take possession, then that's like she, uh, uh, Ms. New said, that's when the police would intervene and get involved. We're, we're there to abide by all laws, and the vehicle- [0:52:52] But that could be the case so you could have an- [0:52:54] Uh [0:52:54] ... unscrupulous tow truck driver as well. [0:52:56] Oh, y- yes. I, I- [0:52:58] I mean, those kind of situations occur a lot. [0:52:59] One, 100%. And I work with many- [0:53:01] It sound like you're giving this tow truck driver a lot of authority just because they can hook a car up to their truck and it's now considered lawfully repossessed. [0:53:14] It's- [0:53:14] I just don't totally agree, but I mean, you can only do things if you're abiding by the law, you're a law-abiding citizen. If somebody's acting outside the law, then that's up to the law enforcement, not the repossessor. And we're coming to you from the repossessor standpoint, that we're acting lawfully and by the law, and we just want clarity to do things the right way by the law. If you had an unscrupulous tow truck driver there, I mean, going back to what Representative New said, I mean, that'd be a law enforcement issue that you would just basically file a... [0:53:45] I mean, you'd call them and- [0:53:47] Yes, if you- [0:53:47] ... start a process. [0:53:48] If you break the peace, then the, then law enforcement's called. [0:53:51] We- [0:53:51] And so that would be considered breaking the peace. And- [0:53:54] I, I know [0:53:54] ... yes, sir. [0:53:54] I know lawyers. This is good for the good operators. [0:53:58] Yes. [0:53:59] What I'm trying to bring attention to is those that are not good operators like yourself and others, where potentially this could be used, um, by the bad operators out there as a way of really absconding with vehicles and saying, "I've legally re- repossessed your car just because it's now part of my, connected to my tow truck." [0:54:21] So would you feel better if we added like a, a, a, an, a friendly amendment saying, "Once the ve- vehicle identification number has been verified"? [0:54:32] Oh, absolutely. [0:54:33] Then- [0:54:34] Yeah, I think that would- [0:54:35] ... then the definition of a repo would be- [0:54:36] ... that would strengthen this language. [0:54:37] Okay. [0:54:37] And just not give a tow truck driver carte blanche to say- [0:54:41] Then I agree with that [0:54:42] ... "I got your car." [0:54:42] Do you agree with that? [0:54:43] Oh, yes. [0:54:44] I agree with that. Yes, sir. [0:54:45] Excuse me. I have an amendment, Mr. Chairman. [0:54:47] Hold on just one minute. Senator Hodges had a question. [0:54:49] I just- [0:54:49] Let me... Let me get back to you. Over here. [0:54:51] Um, Representative New, um- [0:54:54] Yes, sir. [0:54:56] I've not, I've not read the law, but this is not the only part of the law that deals- [0:55:01] That is- [0:55:01] ... with foreclosure, right? [0:55:02] That is correct. [0:55:02] All this deals with is the personal property in the car. [0:55:05] Correct. [0:55:06] So there may be- [0:55:07] Right [0:55:08] ... Senator, there may be other, something already in the law to address what you're talking about. I just haven't read it all. [0:55:15] And there are other as- other aspects of the law. Except once a car is on the hook, that car is gone. And- [0:55:22] I, I get that. I get that. [0:55:23] This one- [0:55:24] But, but, but am I right that- [0:55:25] ... this code section- [0:55:25] ... this, this just deals- [0:55:26] Yes, just- [0:55:27] Basically all you're dealing with is what I leave in my car- [0:55:30] Yes, sir [0:55:30] ... it, after you re- repo it- [0:55:32] And then- [0:55:32] ... what my rights are. [0:55:34] And then the, and then the code section that is defined, defining what the completion of a repossession is. [0:55:41] Is that- [0:55:41] So it's two different code sections. Yes, sir. [0:55:44] Yeah. This is- [0:55:44] So is the, so is the code section that's defining what a repossession is, is that the only law about that? [0:55:53] No, sir. I don't have, I don't have the whole code section with me today. [0:55:56] So, so the definition of a lawful repossession may be more than this. That's, that's my... I just haven't read it- [0:56:03] Thank you [0:56:03] ... so I don't know. [0:56:05] I appreciate that. [0:56:05] So an amendment might not- [0:56:08] Be necessary [0:56:08] ... be necessary. [0:56:09] Personal property. There are good actors really on both sides of this legal- [0:56:14] Let me, let me ask legal counsel. Have you, have you done any thought on that, Josh? Have you done anything? [0:56:18] Um, I can go through the code section and see what we can come up with. [0:56:21] Okay. [0:56:23] We have good actors at good used dealers and new car dealers. [0:56:26] You got something on this? [0:56:27] And be on bad actors. [0:56:28] Yeah. [0:56:29] Be on bad actors that'll get repo'd. [0:56:31] I'm sorry, I'm gonna halt right there. [0:56:32] And you would be, that's what we're trying to avoid. [0:56:34] You wanna go around there to number- [0:56:35] Mr. Chairman [0:56:36] ... three. [0:56:36] Bad actors. [0:56:37] Question. Since this is only dealing with personal property, could you not insert into this the VIN number, which is what we're operating off of, and clarify that, that the tow tr- truck driver would have to verify that serial number? [0:56:51] Yes, we can. [0:56:51] And that protects the personal property issue as well. [0:56:53] Yes. [0:56:53] I think that, as an amendment, it would be possible. Will that...? [0:56:57] Yes. [0:56:58] Um, to the amendment first, I think the amendment would work. I don't see a problem with that. And as for the lawful repossession part of it, the way the code section in general is structured is on the assumption that the repossession is awful, or lawful rather. And if, for example, to your situation for maybe not mistake, but a shady tow truck driver, that more would be unlawful in the sense that it's more of a theft or something like that. So inherently, it is not a lawful repossession when sort of there is an intent behind it to go around the law. [0:57:33] Mm-hmm. [0:57:33] So I think while the amendment does work and is fine, not entirely sure if it's necessary, but also as a legislative drafter, um, clarity's always better. [0:57:44] Mm-hmm. Yeah. [0:57:45] I agree. [0:57:46] Okay. Let's, here's the posture we're in right now then. Let's, uh, let- [0:57:53] Sorry. [0:57:53] Let's, uh, let's, uh, get a motion if we're gonna pass the bill, then we'll deal with the amendments, and then we'll come back to the bill. So where are you all on the bill right now? Do we have a motion to do pass on the bill anywhere? [0:58:04] I move to do pass. [0:58:04] All right. We got a motion to do pass and a second, so we're okay to bill. Now we're gonna talk about your amendment. [0:58:10] Um, to capture not only that instance, but another instance, if you can, uh, actually think of it, on line 29, where it says, "For purposes of this code section," comma, after the comma, "There shall be a rebuttable presumption that a lawful repossession shall be completed when," in the event that someone does do shady on either side, but there's a presumption that it's lawful, but it could be rebutted rather than- [0:58:42] All right. Go back to your original amendment with the words. [0:58:44] My original amendment is right after the comma on line 29, "There shall be a rebuttable presumption that". [0:58:58] So your amendment is, "There shall be a rebuttable assumption that." [0:59:01] Presumption that. [0:59:02] Presumption that. [0:59:06] Legal y'all got, everybody gotten that? [0:59:09] Got it. [0:59:10] Everybody got that? Representative, you- [0:59:13] Oh, yes. [0:59:14] Uh, got it. And then also as well, am, added to that amendment, can I make the conforming change in the title language? [0:59:20] Say it one more time. [0:59:21] Uh, in addition to, for that language, assuming this passes, uh, could I add the conforming title language change, just to make sure it gets in the title of the bill? [0:59:30] You'll add the title language with the m- amendment? [0:59:32] Uh, yes, the conforming title language with the amendment, which'll be, uh, probably somewhere around line four, uh, after repossession of a motor vehicle, add, "To provide for a rebuttable presumption," to match the language that will be added. [0:59:49] But it'll be attached to his amendment. [0:59:51] Yes. [0:59:52] Everybody okay, good with that? [0:59:53] Yes, sir. [0:59:54] Everybody good with that? Okay, so we have a motion on the floor to do pass. We have a motion of Senator Mangham's, uh, amendment- [1:00:01] As amended [1:00:01] ... as amended. That's right. All those in favor, raise your hand. All those opposed have none. Who you wanna carry this far you can get your amendment? [1:00:11] Uh, well, we were talking, um, briefly to, uh, Senator Bearden, but if there was someone else that would c- like to carry it, I would be honored if someone would consider it. [1:00:20] Senator Bearden's a great choice. I mean, just, you know, whatever. [1:00:24] It's your own choice. [1:00:26] Yeah. 100%. [1:00:26] Yes. [1:00:26] Um, Senator Jones and Senator Harbison made the motions. [1:00:29] On the original. [1:00:30] Pardon? [1:00:31] On the original. [1:00:31] Yes. On the original. No, no. [1:00:34] I'm good? Okay. [1:00:36] Thank you so much for coming. [1:00:38] Thank you. [1:00:38] Sorry it took a little while. [1:00:39] Thank you. [1:00:39] No. Thank you. [1:00:39] No, no. [1:00:39] Thank you. [1:00:40] We want it right. We appreciate, we appreciate it. [1:00:42] Thank you. [1:00:42] Thank you for the clarity. [1:00:44] Thank you. All right. Is there a Representative Todd Jones in the audience? You're the man of the hour. You brought us the most simplest bill known to man. [1:00:57] It's 40 pages of love, sir. [1:01:00] 40 pages of love. My God, you brought your entourage with you too, didn't you? [1:01:03] I, I did. [1:01:03] You're team. [1:01:03] Mm-hmm. [1:01:05] We're gonna have to have a little, uh- [1:01:06] Background as well [1:01:08] ... we're gonna have to have a little, uh, understanding here. And, uh, just to let, uh, the pe- the public know, this is a hearing only, uh, today, and we're gonna try to learn a little bit about stablecoin, which we probably, I'm sure we all, you know, know all about it, and how it is. So anyway, so we're gonna turn this over to you, Representative, and you just tell us about stablecoin. [1:01:27] All right. Well, first of all, Mr. Chairman, members of the committee, thank you so much for your time, uh, this, this morning. Uh, first and foremost, before I move, I, if it's okay, I'd like to introduce who's with me. [1:01:37] Absolutely. [1:01:37] Is that okay, Mr. Chairman? All right. So to my left is Tony Erwin, and he's with the Stoble, Stablecoin Institute. To my very far right is Luther Madej, and he's with the Stablecoin In- Institute. And to my immediate right is Dominic Pizzano, and he is with the Fintech Accord and Stablecoin Institute. Uh- [1:01:53] Where is that institute located at? [1:01:54] I'll go ahead and let Mr. Pizzano speak about that. [1:01:56] Ri- right here in Atlanta. Uh, so the Stablecoin Institute is a subsidiary of the Fintech Accord, uh, that represents the payments and Fintech industry, uh, for the most r- recognized brands around the world. Um, but notably, if, if you're not familiar, this is Transaction Alley, and, uh, it's the highest concentration of payments and Fintech companies anywhere, and this bill is gonna help support that. [1:02:19] So it's good. [1:02:19] I- i- if it's okay, Mr. Chairman, I'll get going. Uh, first and foremost, I do have some prepared remarks. I wish I could just synthesize this down to two minutes. You can't. Uh, that would frankly be disrespectful to the committee, and it d- be disrespectful to the bill and what we're trying to do. Let me first say right up front Stablecoin is not Bitcoin. Okay? It is not speculative at all, and it is also runs on a public blockchain, not a private blockchain, to the point where even the CEO and chairman of JP, JP Morgan, Jamie Dimon, has publicly stated, uh, his support on the public blockchain, and specifically cross-border payments that Stablecoin will bring. [1:02:59] So Mr., uh, Chairman Summers, mem, members of the, of the, of the committee, our state has long been the heartbeat of global commerce. We are the proud home of Transaction Alley. Um, as Mr. Brezzano just said, we're over- 75% of all US card transactions are processed right here in our backyard. We didn't earn this title by accident. We earned it through bold, forward-thinking, uh, policy. We consistently hear that we're the number one state to do business, but as a fifth industrial revolution is upon us, we must turn our sights to being the most innovative state in the union to do and transact business. [1:03:29] Years ago, this body established a merchant acquirer limited proposed bank charter. At that time, it was a novel concept. Today, it is the reason why global processing giants have anchored significant operations and thousands of high-paying jobs in Georgia to the effect of around 55,000 jobs averaging over $100,000 a year. We gave them the regulatory certainty that they needed to innovate, and in return, they made Georgia the payments capital of the world. I wanna be clear. Stablecoin is not here to replace processing. Stablecoin is here to basically provide another arrow in the quiver, but definitely not to replace. [1:04:04] So what is the future of money? The bill before you, the Georgia Payment Stable Co- Coin Act, is our line in the sand. It is our chance to proclaim to the country and the world that Georgia intends to maintain its position in the fintech space. It ensures that the next generation of financial technology doesn't pass through Georgia, but is built and regulated here. To put a finer point on that, we have the opportunity to be the very first state to officially launch Stablecoin a- as basically an issuance based on the Federal Genius Act that passed in July of 2025. So what does the bill do? [1:04:34] This legislation is designed to be a state-level companion to the Federal Genius Act, ensuring our laws are substantially similar to the national standards while empowering our own Department of Banking and Finance, who are in support of this bill. Before I dive into the bill, let's be sure we have a clear understanding of Stablecoin. I understand that there is not, across this entire body, and frankly across the entire state, there is not a high Stablecoin IQ. So let's go ahead and talk about what they are. Stablecoins offer advantages for cross-border payments, for instance, from here to the EU, from here to Canada, from here to Mexico, from here to Singapore, including faster transaction times, often settling in minutes rather than days, and lower fees due to fewer intermediaries. [1:05:12] They also provide greater transparency and security. Uh, transactions are recorded on public blockchains, and I wanna stress public blockchains, not private blockchains like you see, uh, with Bitcoin, making them traceable and auditable. Now, it is the gold standard in consumer protection. Think about this just for one second. It is effectively a digital dollar. That's what it is. So instead of carrying it in your pocket, that's what it is. It is the gold standard. It requires every licensed issuer to maintain an identifiable reserve of one-to-one against the dollar or short-term treasuries being defined as less than one quarter. [1:05:46] I'll say that one more time. Every Stablecoin issue shall be backed by at least $1 or the equivalent in a short-term treasury. Uh, this must be held in trust for the benefit of the holder, ensuring that Georgia's digital dollar is always backed by safe, liquid assets like US currency or obviously one, one, one of our T-bills. Regula- regulatory clarity. It provides a clear framework for licensing, examination, and supervision. We are moving Stablecoins out of the Wild West. Some of you may have Googled that, Stablecoins, before you came in here today or maybe last night when you saw it hit the agenda, and you saw there's Stablecoins out there. [1:06:20] Well, there are, and they're out in the Wild West, and the Genius Act, and along with what the states are gonna be doing, are bringing it to a point where we can get consumers protected. In terms of what else it does, it's just as the charter did for the fintech industry. Uh, it brought some of the world's most recognized payment companies to Georgia. This act will signal to the global fintech community that Georgia is the premier jurisdiction for the future of digital finance. Frankly, members of the committee, I don't wanna go from first to 20th. I don't have an interest in doing that. I don't think neither any do, any of you. [1:06:51] It does maintain rigorous anti-money laundering provisions along with economic sanctions and compliance, making it clear that while we welcome innovation, we have zero tolerance for illicit activity. So the net is this. We have a choice. We can wait for other states to set the rules and then try to catch up, or we can lead. By passing the Georgia Payment Stablecoin Act, we aren't just passing a bill, we are claiming our seat at the head of the table for the next 50 years of financial innovation. Let's keep the alley in Georgia. Let's make sure that when the world asks for the future of money, the money is being written here in Georgia, and the answer remains, the great state of Georgia is a great place to do business, but it's an even better place to innovate. [1:07:28] With that stated, um, I would like to add one additional comment. Uh, the bill goes through in almost laborious fashion the way that the Department of Banking would effectively mark the market every month. So if you're marking to market, and you've marked to market exactly how you should be, you're good to go. Ro- rock and roll. If for some reason your mark to market comes short, they have the ability to either take over, which we hope that isn't going to be the case, or you have the opportunity as an issuer to increase your reserves so you can go back to that one-to-one ratio. [1:07:59] At all times, it has to be one to one, and that mark to market is done on a thir- every 30 days basis. Again, giving more and more confidence to our consumers and also giving confidence that we believe in innovation but not illicit activity. So with that stated, Mr. Chairman, we'll stand for questions. [1:08:16] All right. A couple questions, and I'll turn it over to committee. Just making sure, is there a way that Stablecoin allows the holder to actually gain or make money, or is it always that way? [1:08:28] So I wanna let my call of friends answer it with a little more specificity, but what I like about the Federal Genius Act, sir, is it does not allow issuers to pay any yield. The intent was not to create competition to banking- [1:08:42] Right [1:08:42] ... not create competition to our credit unions, et cetera. So an issuer shall not provide any yield to anyone that they y- that they basically issue the Stablecoins to. I don't know, does anyone have anything to [1:08:53] That's, that's correct. Uh, this is Luther Midy. Uh, as, uh, Representative Todd Jones mentioned, uh, it is not, there's no yield component to it at all, so it doesn't make money at all. Uh, the idea is for it to be a representation of a dollar in the same way that a dollar that you would hold in your pocket. [1:09:09] Just not touchable, just digital. [1:09:13] That is correct. It's a digital representation of the dollar. [1:09:15] Right. Questions from the committee? All right. You started off on number 11. 10? [1:09:22] Thank you. Down to the right there. [1:09:24] Representative Jones, from [1:09:25] Yeah. [1:09:25] ... Brandon. Question: Is a public blockchain, am I assuming that since it is public versus private, is that information, how is that available? Or, like, uh, can anybody look at that to track what's g- happening from that standpoint? Uh, and as I understand, blockchain is a very, very secure way of, of recording transactions. But who, if you will, can see those transaction, I guess, is my question. [1:09:50] I'll give the general answer, and then I wanna yield- [1:09:52] Okay [1:09:52] ... to the gentleman to my left. The general answer, sir, is this: Is though it implies, public implies that they're gonna see, uh, Senator Harbin, that you moved $1,000 of stablecoin from yourself to, say, Senator Hodges. In fact, it's not that level of public, sir. It is secure, but not to that level, and I'll yield to the person to my left. [1:10:10] Okay. [1:10:10] Yeah. Hi, Senator Harbin. [1:10:11] Hi. [1:10:11] Uh, so the, with it being a public blockchain, all the transactions that, uh, are carried out on that, uh, blockchain are, um, are being monitored by a large number of companies. There's Amberdata, Statista, Chainalysis, uh, Centaur. I could name several more, but there's a lot of companies out there that are actually monitoring all the transactions. And, you know, the state can use that data to, to, uh, to, you know, to continue to monitor all the transactions. And, you know, along with it, it being a public blockchain, you know, the companies are, you know, are required to go through all the AML, KYC, uh, same things that, uh, that a- [1:10:50] Mm-hmm [1:10:50] ... financial institution has to do. The issuer has to c- carry that through. So with it being on a public blockchain and being, and being, uh, monitored by a large number of companies, you know, I, I know the blockchain industry very well. The last place I would want to, to try to commit a financial crime right now would be on a public blockchain. [1:11:08] Question: How does this replace an ACH or wire transfer, things of that nature that are, have been used in the past to transfer money back and forth? How does this benefit? And then my quest- second question, if you can answer at the same time, is, how does the stablecoin make money? This is a one-to-one transfer. [1:11:27] Mm-hmm. [1:11:27] There's some type of fee, because you're not doing it because of no reason. But there's, how does the revenue get generated for the stablecoin transfer of funds? [1:11:39] I'll do the initial answer, and then again, I'm gonna let my colleagues go ahead and put a finer point onto it. I think one of the keys here is we are reducing the number of intermediaries, may it be through the ACH, which of course is the clearing house, or through the wire. Uh, an example I can give you is I wire, on a very typical basis, I wire to the EU. I know if I let it go on Friday, the good chances are it's not gonna get there till Tuesday. [1:12:02] Right. [1:12:02] Same thing if I move it o- over to Asia. This is one of those, um, Senator Harbin, that I could literally move at 3:00 today, and it'll be in the E... Well, it will lose five or s- or, or we'll gain five or six hours, but- [1:12:14] Right [1:12:14] ... but using our timeline, it'll be there literally at 3:05 or 3:10. So we have futer, fewer intermediaries, lower cost, greater security. So from my mind, that's why I believe, and if you look at, uh, Mr. Diamond's comments out of JPMorgan- [1:12:28] Mm-hmm [1:12:29] ... that's one of the main reasons why JPMorgan is, is looking at this so much is because of the lower cost and the, and, and in- intermediaries. In terms of how they make money, I know the five or six ways that they do, but I'd rather let the guys here, who actually do it for a living, as opposed to me just reading a book and staying at a holi- Holiday Inn Express. [1:12:43] Okay. [1:12:44] So go ahead. [1:12:44] Thank you, Representative Jones. So th- think about this as a next generation of money, right? So there's, uh, the reason that, especially from a B2B and a B2G perspective, why this has, uh, really taken hold is it's safer, it's more secure, it's got better visibility, and to the point that Representative Jones was making, it's instant. Um, there is not that... Even with an ACH, that feels instant to us because, you know- [1:13:07] Right [1:13:07] ... it goes from one bank account to another. If you're sending it at 2:00 on a Friday- [1:13:12] Right [1:13:12] ... you're not getting it till on Monday. So I'll let- [1:13:15] Yeah. Just to add to that, right? Um, what feels instant to us, like a Zelle or something like that, it happens right away. The actual settlement of those funds is not instant on the back end. [1:13:25] Right. Right. [1:13:25] Right? And if you're doing it fr- from one country to the other, it usually goes through a bunch of correspondent banks, so there's transactions that are moving from one bank to the other, and so that takes a lot of time, and that actually involves a lot of cost because each bank is adding a little bit to that transaction. In this case, stablecoins do make it a lot simpler because, as, uh, Representative, uh, Jones mentioned, it is instant from that perspective. Um, and then there's less intermediaries. So that's the ACH side of it. Uh, how does it compare to ACH side of it? The second question that you asked, uh, Senator Harbin, is, uh, how do they make money? [1:13:59] Um, the money aspect really is that the stablecoin issuers themselves are holding reserves, and some of those reserves, uh, could be actual dollars. They could be T-bills, which do generate yield. Uh, again, they cannot pay that yield. As, as I was re- uh, uh, talking to the chairman here, that yield is not paid to the person holding it. But the issuers of the stablecoin could, uh, leverage that yield for themselves. [1:14:25] One last question, Mr. Chairman, if you don't mind. [1:14:28] Okay. [1:14:28] We got a- [1:14:29] Okay [1:14:29] ... another meeting to get to. [1:14:31] Okay. [1:14:31] Is exchange rates. How do y'all deal with exchange rates across, if I'm going from one country to another country, is my qu- next question. [1:14:39] You- [1:14:39] Yep [1:14:39] ... you wanna take that? You want? Go ahead. [1:14:40] Sure. [1:14:40] No, go ahead. [1:14:41] Uh, the, the short answer is that exchange rates are determined the same way that a US dollar and a EU or euro is determined. That the only difference is that they're, because this is a representation of a dollar, it doesn't change that perspective when, so a USD to euro, if it's 1.17 USD to euro, it's still gonna be 1.17 USDC or whatever this digital dollar is to the euro [1:15:05] I got, we, we have a another committee right behind us, but, uh, Representative Jones, you know, you can steal a Bitcoin. They talk about have to have three keys. You had to have all the keys to keep from losing your Bitcoins and all the cryptocurrencies out there. I mean, y- um, make sure I understand this, w- and follow up on Senator Harbin's question. If it's a digital currency, stablecoin, dollar to dollar, is it, is it stealable? [1:15:30] Well- [1:15:31] You want me to answer? [1:15:32] Go ahead. [1:15:33] So it, it's the same principle applies. That, that, uh, the, it's held in a digital wallet, and so the holder of the digital wallet has to keep control of their keys. So it's the same principle for any, um, you know, cryptocurrency or, uh, digital asset, so the key, protecting the keys. Uh, and, and the good news is in, in, uh, institutional money and, and, and businesses, they typically use what's, uh, an institutional-grade digital wallet, where you have multiple custodians of the keys so that multiple people have to hold a piece of that key before the money can be released. [1:16:04] So there's, there's many, many safety mechanisms built in, but someone that's loosely, you know, allows their key to be, you know, out on the internet, they, they're... It's the same thing, like you, I was putting your... It's the same analogy of putting your information on your personal bank account out. You know, they, it, you just shouldn't. Y- People that hold the cryptocurrency should know to not allow their key to be public. [1:16:27] I, I, I'd like to put a final point on that, Chairman Summers. Um, though this bill doesn't address that, this bill just addresses- [1:16:32] Right [1:16:32] ... the issuance of it. [1:16:33] That's why I asked it, yeah. [1:16:33] Um, I would suggest that given the public blockchain manner of this, given the fact that the issuers are regulated by our Department of Banking, it is nowhere near, as I'll say, nefarious and blind as, I'll say, traditional crypto like Bitcoin is. The second thing I would say is it, I don't, I don't want to say more, 'cause I don't wanna hurt anyone. Any digital wallets that you're using right now, or any dig- digital payment, may it be Zelle, PayPal- [1:16:57] Mm-hmm [1:16:57] ... Venmo, Apple Cash, whatever it may be, I'd like to think that all of us maintain our biometrics, which I'm assuming most of you use your biometrics to release that money, but it's gonna be the exact same thing. So we're not talking about putting some overt, greater s- you know, shield of privacy over it, but rather what you have been traditionally doing with, with your current, I'll say, wallets. In this case, though, what we're doing is we're transitioning dig- we're transitioning the dollar to have the capability to be a true digital dollar and give literally every Georgian the confidence that there's a dollar sitting right behind it, or a T-bill right, right behind it. [1:17:27] I mean, it's about as secure as you're going to get because the bill goes through. The issuer, in no way, shape, or form, and the banking will confirm this every 30 days when they do mark to market, they cannot pledge those assets. Whereas a financial institution can pledge assets. As you know, you give $1,000, and suddenly 900 of it is out on a loan, and God bless them, that's their business model. That is not the business model of the people who are issuing. They may not pledge or may not leverage that money. [1:17:53] Or commingle. [1:17:54] Or commingle. Thank you. [1:17:55] Last question, Senator Hodges. [1:17:56] I, I knew that was over my ... I was forgetting. [1:17:57] I, um, thank you, Representative Jones. Very quickly, the difference between a public blockchain and a private blockchain is the public is regulated, and the private is not. Is that the only difference? [1:18:14] I'd- [1:18:14] I'd- [1:18:15] Tony. [1:18:15] I think there's more to it. Um, but I think at the end of the day, the public blockchain should give you massive confidence in the stablecoin and its ability to give everyone confidence in Georgia that when someone says, "I'm gonna pay you in 1,000 stablecoins," you're like, "Okay, fine." In other words, you don't even hesitate, whereas right now, if I told you I was gonna send you $1,000 worth of Bitcoin, some people might say, "Oh, that's fine." Other people will almost look at me as if I was asking them to, you know, accept, I'll just say, nefarious being. So I think at the end of the day, I think the difference, Senator Hodges, is this, between private and public really just comes down to confidence in our Department of Banking, the Genius Act of the feds, and what we're doing is giving everyone confidence that when I owe you $1,000 and I send you 1,000 stablecoins, you just kinda shrug and just move on with your day. [1:19:00] And my last question, was this le- this legislation was drafted in conjunction with the Department of Banking? [1:19:09] In conjunction with Department of Banking, and also with folks up in DC. [1:19:12] With the- [1:19:12] We've been told, and though this is just, I'll say, you know, I'll say just, you know, cursory, but at the end of the day, we've been told that our bill, compared to other bills that are right now running through other state general assemblies, is the most tied to the federal bill as, uh, pardon me, federal law, as any other bill. And we did that consciously because we wanted to make sure that they had created the horizontal framework, and we wanted to lock in, but we wanna be first. We don't want any state to get in front of us. [1:19:36] And I'll just add to that k- quickly. We were with, uh, Tre- Department of Treasury last week, and this bill, we said it once, 100 times, substantially similar to the federal Genius Act, and we got strong support by the rule makers of the general, uh, of the Genius Act when meeting with them at Treasury. [1:19:54] Yeah. [1:19:54] So we felt good about that. [1:19:55] Here's the posture we're in, Representative Jones. We will, uh, put you back on the agenda. I can't tell you a date, but I'll let you know in a couple days, but I'd like for any of the members that have any questions for you to make yourself available for anybody that has any questions. If you all will, uh, get Representative Jones any of these questions that you may have, and let's just see where we're at on this thing, and then we'll be able to move you. How about that? [1:20:14] I sure do appreciate that, Chairman Summers, and thank you to you and the members of the committee. [1:20:17] Thank you, kindly. [1:20:18] Thank you. [1:20:18] Thank you. [1:20:19] Okay, guys, we're running late. Meeting is adjourned. Thank you for coming.