The commission must review payment stablecoin issuer applications, make decisions on substantially complete applications, and follow specific deadlines and denial limits.
(a)(1) The commission shall receive, review, and consider for approval applications from any person that seeks to issue or sell payment stablecoins as an Alabama qualified payment stablecoin issuer, and the commission shall establish a process and framework for the licensing, regulation, examination, and supervision of such persons, through the adoption of rules pursuant to Section 8-7B-8. (2) The commission, upon receipt of a substantially complete application received under subdivision (1), shall evaluate and make a determination on each application based only on the criteria established under this chapter, and rules adopted pursuant to this chapter. (b) The commission shall consider the following factors when determining whether an applicant, who submitted a substantially complete application, shall be licensed as an Alabama qualified payment stablecoin issuer: (1) The ability of the applicant, based on the applicant’s financial condition and resources, to meet the requirements set forth under 12 U.S.C. § 5903. (2) Whether an individual who has been convicted of a felony offense involving insider trading, embezzlement, cybercrime, money laundering, financing of terrorism, or financial fraud is serving as an officer or director of the applicant. (3) The competence, experience, and integrity of the officers, directors, and principal shareholders of the applicant, its subsidiaries, and parent company, including: a. The record of those officers, directors, and principal shareholders of compliance with laws and regulations; and b. The ability of those officers, directors, and principal shareholders to fulfill any commitments to, and any conditions imposed by, the commission in connection with the application at issue and any prior applications. (4) Whether the redemption policy of the applicant meets the standards under 12 U.S.C. § 5903. (5) Any other factors established under federal regulations pursuant to the GENIUS Act or rules adopted pursuant to this chapter which are necessary to ensure the safety and soundness of the Alabama qualified payment stablecoin issuer. (c) The commission shall render a decision on a substantially complete application submitted under subsection (a) not later than 120 days after receipt of the application. (d)(1) For purposes of this section, an application shall be considered substantially complete if the application contains sufficient information for the commission to render a decision on whether the applicant satisfies the factors described in subsection (a). (2) Not later than 30 days after receiving any application, the commission shall notify the applicant as to whether the commission considers the application to be substantially complete and, if the application is not substantially complete, the additional information the applicant must provide in order for the application to be considered substantially complete. (3) An application considered substantially complete under this subsection shall remain substantially complete unless there is a material change in circumstances that requires the commission to treat the application as a new application. (e)(1) The commission may only deny a substantially complete application received if the commission determines that the activities of the applicant would include any conduct that would authorize the commission to suspend or revoke a license under Section 8-7B-9(a). (2) The issuance of a payment stablecoin on an open, public, or decentralized network shall not be a valid ground for denial of an application. (f) If the commission denies a substantially complete application received under subsection (a), the commission, not later than 30 days after the date of denial, shall provide the applicant with written notice explaining the denial with specificity, including all findings made by the commission with respect to all identified material shortcomings in the application, including actionable recommendations on how the applicant could address the identified material shortcomings. (g) The denial of an application under subsection (e) shall not prohibit the applicant from filing any subsequent application.