Economic Code Act 2026

Economic Code Act 2026

Passed by the Senate on 25 February 2026 and signed by the President on 26 February 2026.

Proposed and written by Delulu

Part I, General Provisions

Article 1, Short title

§1. This Act may be cited as the Economic Code.

Article 2, Purpose

§1. The purposes of this Code are to:

1. consolidate and restate the principal economic rules into a single, structured instrument;
2. codify the roles of the Department of the Treasury, the SimDem State Bank, and other economic bodies;
3. define core rules for taxation, payroll, public finance, corporations, securities, and financial institutions;
4. provide clear enforcement and recordkeeping obligations.

Article 3, Definitions

§1. In this Code, unless the context requires otherwise:

1. Tau means the official currency of SimDemocracy.
2. DoT means the Department of the Treasury.
3. SDSB means the SimDem State Bank.
4. CRB means the Central Revenue Bureau.
5. Corporation means a registered business entity under this Code.
6. Financial institution includes any legal entity providing services relating to currency management, growth, expenditure, security, exchange, or preventing loss of currency; banks and casinos are included.
7. Bank note means any placeholder for tau or monetary currency.
8. Government Reserve (or Reserve) means the Government Reserve account(s) designated by law for public funds.
9. Interim Funding Resolution (IFR) means a temporary appropriation instrument authorizing department spending when a full budget is not in effect.

Part II, Institutions and Governance

Article 4, Department of the Treasury

§1. The DoT shall maintain the economic holdings of the state and control unassigned government funds, subject to allocations and constraints set by law.

§2. The DoT shall:

1. record state financial transactions and maintain a public ledger of receipts and disbursements;
2. administer taxation and revenue programs;
3. process government payroll on a regular schedule determined by law;
4. serve as the primary regulatory body for corporations and the exchange of corporate stock;
5. manage state-owned corporations and execute court- or Senate-authorized forced corporate actions;
6. advise the Department of Justice on corporate enforcement and may initiate investigations in accordance with law.

Article 5, SimDem State Bank

§1. The SDSB is the central bank of SimDemocracy.

§2. The SDSB shall:

1. determine and execute monetary policy and strive to maintain price stability;
2. mint the tau as the official currency;
3. oversee, regulate, and audit financial institutions within the scope of Part VI.

§3. Governance.

1. The SDSB shall be governed by a Governor, appointed by the President subject to confirmation by the Senate.
2. The Governor may establish subordinate positions, delegate powers not explicitly reserved, and issue lawful regulations within competence.

§4. Independence.

1. The SDSB, its Governor, bodies, and employees shall not seek or carry out orders from executive officials in the course of exercising its lawful competence.
2. The SDSB may advise government bodies on monetary-policy issues.

Article 6, Central Revenue Bureau

§1. The CRB shall enforce revenue rules and spending controls designated by law, including the spending-cap compliance rule in Part IV.

§2. For enforcement purposes, the CRB Director shall have access to payroll and relevant department spending information, subject to lawful confidentiality constraints.

Part III, Public Finance: Budgets, Appropriations, and Payroll

Article 7, Budget framework

§1. The Senate shall authorize public spending through an budget or Interim Funding Resolutions.

§2. A budget shall:

1. specify the covered period;
2. allocate appropriations to departments and any statutory funds;
3. specify any constraints on reallocation, transfers, or reserve usage.

§3. Interim Funding Resolutions.

1. An IFR shall specify a covered period and maximum allocation per department.
2. IFRs are temporary instruments and shall not amend this Code except where explicitly stated.

Article 8, Spending cap and reserve protection

§1. No department shall spend from the Government Reserve more than is allocated by the Senate in an IFR, budget, or other lawful appropriations instrument.

§2. The CRB shall enforce §1.

§3. Where the CRB finds Departmental Financial Misconduct as defined in Article 23, it shall refer the matter to the Attorney General for prosecution; if the misconduct originates within the Department of Justice, the CRB shall report its findings to the Senate.

§4. Upon the enactment of any new IFR, all Government Departmental balances shall be reabsorbed into the Government Reserve before the allocated funds are redispersed according to the most recent Funding Resolution

Article 9, Payroll administration

§1. The DoT shall administer payroll and shall process payroll in accordance with this Code and the Government Salaries Act 2025. §2. A Treasurer shall be appointed by the Secretary of the Treasury to administer pay.

§2.1. The respective secretary is considered to be fully and distinctly responsible for the consistent and accurate upkeep of their employee records for the purposes of administration of wages and payroll. Failure to maintain those records, resulting in delayed or unpaid wages, shall result in the respective secretary and their department being responsible for owed wages and the consequences of said issues.

§2.1.1. If a Government Employee/Official is not paid appropriately or on time due to employee records not being kept up to date, then they are owed the appropriate sum of tau by the Treasury in full for every wage not paid fully or at all, until the full and correct fulfillment of debts.

§2.2. The Treasurer, and by extension the DoT, are to be considered fully and distinctly responsible for the appropriate and timely administration and disbursement of wages to Government Employees and Officials, once the reporting entities have supplied the up-to-date and accurate employee records.

§2.2.1. If a Government Employee/Official is not paid appropriately or on time due to the Treasurer’s delay, they are owed the appropriate sum of tau by the Treasury in full for every wage not paid fully or at all, until the full and correct fulfillment of debts.<ref name="payrollamendment">Amended by the Payroll Amendment, passed on the 6th April and signed on the following day</ref>

Part IV, Revenue and Taxation

Article 10, General taxation principles

§1. The Senate may impose taxes, tariffs, and fines by statute.

§2. Tax cycles and collection shall not begin until a tax is implementable.

Article 11, Balance taxation of banks

§1. A balance tax on banks and/or relevant financial institutions may be imposed pursuant to the Balance Tax rules as stated in the Balance Tax Act 2025.

§2. The DoT shall administer and collect the balance tax.

Part V, Corporations, Registries, and Economic Support

Article 12, National Business Registry

<ref name="Reg Reform">Amended by the Business Registry Reform Act passed and signed 15 April 2026. Note: The DoT has fourteen days to comply with the new system.</ref>

§1. The official record of businesses shall consist solely of verified posts in the # businesses-in-operation channel.

§2. At incorporation, an applicant shall create a unique post in the # businesses-in-operation channel containing:

1. the name of the corporation;

2. all legal owners and their ownership percentages;

3. the nature of the business; and

4. its purpose, being either for-profit or non-profit.

§3. A corporation shall be legally constituted once a Treasury official clearly approves the post by reply or reaction. Once legally constituted, the DoT will reply in the same post with a copy of the registration details, which will serve as the official version of the corporation’s details.

§3.1. If a corporation wishes to change the official details of their corporation, they need to inform the DoT and a employ with update the post with the new version of the corporation’s official details.

§4. A corporation stating a non-profit purpose must demonstrate a socially beneficial purpose to be legally constituted.

§4.1. The earnings or activities of a non-profit may not be used to personally enrich its owners, directly or indirectly, except where used for general community improvement.

§5. All updates to corporation information must be made by replying to the original post and shall take effect only upon clear approval from the Department of the Treasury.

§6. For pre-existing corporations that do not already have a post in the # businesses-in-operation channel shall have one created for them by the Department of the Treasury. Furthermore, if a pre-existing corporation’s post is missing required information, the Department of the Treasury shall add the missing information.

§7. Citizens may also register a business via a Reddit post by following the same standards detailed in §2, including in the post title the following: “Corporation Registration Request For X” and informing the DoT. If the business is approved, the DoT will create a post on the #business-in-operation channel for them and make any further requested changes if further change requests are made.

Article 13, Grants for business formation and recurrence

§1. New Business Grant.

1. A newly registered business may apply for a one-time grant of up to 2,000 tau, subject to approval by the DoT’s Division of Business.
2. If the business does not demonstrate meaningful activity within 30 days of receiving the grant, the grant converts into a loan repayable in full to the Government Reserve within 90 days of notice.

§2. Recurring Grant.

1. Eligible businesses may apply for recurring support not earlier than 30 days after receipt of a startup grant.
2. The recurring grant shall begin at no more than 500 tau, scale based on time elapsed and activity, and not exceed 2,000 tau.
3. Recurring grants may be issued monthly upon re-approval.

<ref name="Reg Reform"></ref>§3. Records.

a. All grant requests and disbursements shall be documented in a unique post in the #businesses-in-operation channel.

b. Such grant records shall be pinned in that channel.

c. Quarterly summaries shall be made available to the Senate.

§4. Compliance.

1. Misrepresentation results in denial of eligibility and fines; repeated offenses may result in dissolution.

Part VI, Financial Institutions and Bank Notes

Article 14, Scope

§1. This Part applies to all financial institutions, including banks, foreign exchanges, and casinos, to the extent they mint, distribute, exchange, hold deposits, extend loans, or provide similar services.

Article 15, Recordkeeping and notice

§1. Any financial institution that mints or distributes bank notes shall notify the SDSB and obtain confirmation.

§2. All financial institutions and foreign exchanges shall keep complete records of:

1. all minted bank notes;
2. exchange rates and changes thereto;
3. reserve holdings in tau;
4. timestamps of exchanges and relevant counterparties.

§3. Pre-minting notice. Before minting, an institution must notify the SDSB of amount, currencies, and exchange rates.

§4. Audit access. All records shall be made available to the SDSB within 24 hours of request.

§5. Failure to provide records may result in a fine, and prosecution for Obstruction of a Financial Investigation as incorporated by Article 24.

§6. The CRB shall enforce §1–§5 as designated by law.

Article 16, Bank note conduct rules

§1. No bank note may be exchanged or sold for a value greater than 10 tau.

§2. Exchange-rate changes are restricted as follows:

1. An institution may not change exchange rates nor refuse exchanges except in accordance with lawful notice and recordkeeping requirements.
2. Once distributed, the exchange rate of a brand of bank notes into and out of tau may never be changed.

§3. A foreign exchange may not mint bank notes.

§4. Reserve ratio. The total value of minted and distributed bank notes may not exceed 150% of reserves held.

§5. Destruction restriction. Once distributed, bank notes may not be destroyed unless held by the originating institution.

§6. The SDSB may levy fines and enforce these rules via tickets and lawful proceedings.

Part VII, Government Bonds and Public Debt

Article 17, Authority and issuance

§1. The Senate may authorize and instruct the DoT to create government bonds by majority vote as:

1. a one-time measure;
2. a condition or component of legislation;
3. an approved regular issuance.

§2. The President may propose bond creation but cannot authorize it.

§3. Repurchase authority.

1. The Senate may compel repurchase or destruction of bonds; the DoT may repurchase or destroy bonds the government holds.
2. Forcible repurchase of bonds from the public requires payment of the bond’s promised value and at least 72 hours’ notice.

Article 18, Bond terms and records

§1. Any bond issuance shall specify:

1. bond type (fixed-term, interest-bearing, convertible, zero-coupon);
2. maturity/termination terms or lack thereof;
3. payout mechanics and any attached conditions.

§2. The government shall:

1. issue a unique bond document containing relevant details and a unique identifying number;
2. maintain a record of bond ownership.

§3. SimDem citizens who are buyers of a null and void bond have the right to claim uncompensated appropriation under Article 22a of the Civil Code, where such buyers are deemed to have suffered indirect expropriation of private property due to the State’s actions.<ref name="econlawclaract">Amended through the Economic Law Clarification Act, passed on the 1st April 2026 and not vetoed by the President within 72 Hours</ref>

Article 19, Sale restrictions

§1. Sales of bonds to non-citizens or foreign governments are null and void.

§2. Transfer of ownership requires that the government record be updated; unreported transfers do not change the registered owner.

Article 20, Payment and default rules

§1. Upon maturity or repurchase, bondholders shall be paid within one week.

§2. Late payment accrues interest at 2% weekly until paid.

§3. If a bond condition is broken or unfulfillable, the government and holder shall agree to equal financial compensation; failing agreement within two weeks, a lawyer or judge shall impose a settlement.

Article 21, Special bond authorizations

§1. Special authorizations shall be codified as Appendix to this Code. §2. Any special bond must still comply with Articles 17–20 unless explicitly exempted.

Part VIII, Securities and Stock Exchange

Article 22, Going public and investor obligations

§1. To go public, an enterprise shall submit a written request to the Financial Overseer of the Stock Exchange.

§2. The request shall include: (a) enterprise name; (b) founder(s); (c) service/product; (d) total shares; (e) shares offered; (f) average weekly revenue; (g) average weekly profit; (h) approximate weekly active client count.

§3. A public enterprise enters a contract with investors purchasing offered shares and is bound to the obligations herein.

§4. Financial reports.

1. Public enterprises shall arrange audits and submit a weekly financial report.
2. Reports must be correct and contain enterprise name, active clients, revenue, and profit.

§5. Profit-sharing obligation.

1. Enterprises shall pay investors a share of the previous week’s profit proportionate to ownership.
2. Payment occurs on Monday or Tuesday.

§6. Investor duties.

1. Investors bear losses if enterprise profit is negative.
2. Investors shall refrain from insider trading and market manipulation.

Part IX, Expropriations and Asset Security

Article 23, Abandoned corporations

§1. Abandoned corporations shall be expropriated by the State.

§2. A corporation is abandoned if:

1. it lacks meaningful business activity; or
2. majority ownership is held by individuals permanently banned from SimDemocracy.

§3. The DoT shall conduct regular reviews and, where activity is unclear over the last two months, inquire with owners.

§4. If owners do not respond within 72 hours or declare intent not to continue, the corporation is abandoned.

Article 24, Criminal asset expropriation

§1. Corporations with more than 40% ownership held by persons convicted of Terrorist Conspiracy shall be expropriated.

§2. Individuals banned for 6 months or more shall have their personal assets expropriated, except bans per self-exclusion order.

§3. Assets held by a proscribed organisation or on behalf of one shall be expropriated.

Article 25, Management of expropriated assets

§1. Where expropriation is triggered by criminal factors, liquidation is stayed until appeals conclude; if no appeal is filed within two weeks, proceedings continue.

§2. Expropriated corporations are dissolved; proceeds are used to pay lawful debts pro rata; non-liquid assets may be auctioned; surplus transfers to the Government Reserve.

§3. Individual expropriated assets settle lawful debts; surplus transfers to the Government Reserve.

§4. Proscribed-organisation assets transfer directly to the Government Reserve.

Part X, Enforcement, Offences, and Consequential Amendments

Article 26, Departmental Financial Misconduct

§1. Any department head commits Departmental Financial Misconduct if they spend more money than allocated in Senate IFRs or other appropriations instruments for their department.

§2. Department heads have a duty to know allocations.

§3. This applies to heads of statutory and non-statutory departments.

§4. Sentences include a minimum one-day mute up to a two-week mute and removal from office.

Article 27, Payment mistake recovery

§1. If anyone is mistakenly paid more than legally entitled for government work, the additional pay may be seized by the government.

Article 28, Obstruction of a Financial Investigation

§1. The crime of Obstruction of a Financial Investigation occurs when a person or entity fails to provide legally mandated documentation within a legally mandated timeframe after notice, or provides falsified/inaccurate/incomplete documentation.

§2. Punishment is a fine up to 10,000 tau.

Article 29, Civil and criminal code amendments

§1. The Civil Code shall be amended to include that the relevant tort shall not apply if the plaintiff was fired due to the defendant lacking proper funding to pay the plaintiff.

§2. The Criminal Code shall be amended to include the offences defined in Articles 26 and 28, and the offence of Violation of Bank Note Regulations where applicable.

Part XI, Transitional, Repeals, and Schedules

Article 30, Transition

§1. Any existing corporations shall be granted 21 days from the entry into force of this Code to obtain a BIN, unless extended by statute.

§2. Existing bank-note issuers shall be granted one week from entry into force to comply with Part VI, unless already compliant.

§3. Existing government bonds remain valid and are governed by Part VII as of entry into force.

Article 31, Repeals and consolidation

§1. Upon entry into force, the following instruments are consolidated into this Code and repealed to the extent they are restated herein:

1. Revised Economy Foundation (economic law and finance provisions);
2. Executive Departments Act 2025 (economic provisions concerning the DoT);
3. Business Registry Act 2025;
4. Business Growth and Recurrence Grant Act;
5. Bank Note Regulations Act 2025;
6. SimDem State Bank Act 2025;
7. Government Bonds Expansion Act and Bond Clarification Act (bond provisions);
8. Stock Exchange Clarification Act 2025;
9. Expropriations Act 2025;
10. No More Robbing the Reserves Act 2025;
11. Rolling Budget Act of 2025 (budget framework provisions).

§2. This Code does not retroactively invalidate prior appropriations (including IFRs and appropriations Acts) for periods already elapsed.

Article 32, Entry into force

§1. This Code enters into force immediately upon passage unless otherwise specified.