Section 8-7B-8

(a)(1) The commission shall adopt rules to administer and implement this chapter. These rules may include provisions that govern the recovery of the cost of administering and enforcing this chapter by imposing and collecting fees, fines, penalties, and costs associated with applications, examinations, investigations, and other actions required to implement this chapter. (2) The rules adopted under subsection (a) shall include the following: a. The establishment of a secure system for processing payments made using payment stablecoins. b. Security and fraud prevention measures. c. The creation of educational material regarding the use of payment stablecoins. (b) The commission may conduct an examination or investigation of an Alabama qualified payment stablecoin issuer or otherwise take action authorized by this chapter or by a rule adopted or order issued under this chapter as reasonably necessary or appropriate to administer and implement this chapter, federal regulations implementing the GENIUS Act, and other applicable state and federal law. In performing the examination or investigation, the commission may: (1) Conduct an on-site or off-site examination of the Alabama qualified payment stablecoin issuer as the commission may reasonably require; (2) Conduct an examination in conjunction with other state agencies or federal government agencies; (3) Accept the examination report of another state agency or federal government agency, or a report prepared by an independent accounting firm, which, upon being accepted by the commission, shall be considered an official report of the commission; and (4) Summon and examine, under oath, individuals or employees of an Alabama qualified payment stablecoin issuer and require the individuals to produce records regarding any matter related to the condition and business of the licensee or an agent of the licensee. (c) An Alabama qualified payment stablecoin issuer shall provide, and the commission shall have full and complete access to, all records the commission may reasonably require to conduct an examination. The records must be provided at the location and in the format specified by the commission, provided the commission may utilize multistate record production standards and examination procedures when such standards will reasonably achieve the requirements of this section. (d) Unless otherwise directed by the commission, a licensee shall pay all costs reasonably incurred in connection with an examination of the licensee or the licensee’s authorized delegates. (e) Information obtained during any examination under this chapter may be disclosed only as prescribed in Section 8-7B-15. (f) In the course of an examination or investigation under subsection (b), the commission may do any of the following: (1) Make such public or private investigations within or outside of this state as it deems necessary to determine whether: (i) any license under this chapter should be granted, denied, suspended, or revoked; (ii) any person has violated or is about to violate any provision of this chapter or any rule or order issued under this chapter; or (iii) any enforcement measures are necessary to be imposed on an Alabama qualified payment stablecoin issuer under this chapter. (2) Require or permit any person to file a statement in writing, under oath, or otherwise as the commission may determine, as to all the facts and circumstances concerning the matter to be investigated. (3) Publish information concerning any violation of this chapter or any rule or order adopted or issued under this chapter. (4) Administer oaths and affirmations, subpoena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, agreements, or other documents or records which the commission deems relevant to the inquiry. (g) In case of refusal to obey a subpoena, upon application by the commission, the Circuit Court of Montgomery County may issue an order to the person failing to obey the subpoena requiring the person to appear before the commission or the officer designated by it, to produce documentary evidence if so ordered, or to give evidence touching the matter under investigation or in question. The court may hold any person who fails to obey an order of the court in contempt of court. (h) No person is excused from attending and testifying or from producing any document or record before the commission or any officer designated by it, in any proceeding instituted by the commission, on the ground that the testimony or evidence, documentary or otherwise, required of the person may tend to incriminate him or her or subject him or her to a penalty or forfeiture. No person may be prosecuted or subjected to any penalty or forfeiture using or based on information he or she offered after asserting such privilege, except that the person so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. Nothing in this section shall prohibit the commission from prosecuting any person compelled to testify or provide evidence, if the commission has sufficient evidence, derived from other sources not discovered, derived, or revealed from such compelled testimony or evidence, to sustain a prosecution for a violation under this chapter. (i) The commission may prescribe additional enforcement procedures under subsection (a) to ensure compliance with the GENIUS Act. (j) The commission shall submit an annual report to the Legislature which shall include the current list of authorized payment stablecoins, the volume of transactions and cost savings, assessment of risks and safeguards, and any recommendations for legislative changes. The report shall be made publicly available on the commission’s website. (k) This chapter shall not apply to an Alabama qualified payment stablecoin issuer to the extent that federal law precludes or preempts or has been determined to preclude or preempt the application of the provisions of this chapter to any Alabama qualified payment stablecoin issuer. (l) In addition to any other exempt positions as otherwise allowed by law, the exempt positions in the commission shall include up to three highly trained, highly specialized securities professionals.