SB284: SB284 "Georgia Uniform Securities Act of 2008,"; issuance of orders by the Commissioner of Securities directing persons who have violated certain securities provisions to return; authorize

26 LC 47 4222S Senate Bill 284 By: Senators Walker III of the 20th, Brass of the 6th, Kennedy of the 18th, Strickland of the 42nd, Summers of the 13th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia1 Uniform Securities Act of 2008," so as to authorize the issuanc e of orders by the2 Commissioner of Securities directing persons who have violated certain securities provisions3 to return to investors, customers, or clients sums paid in conn ection with securities4 purchases; to amend Part 10 of Article 6 of Chapter 2 of Title 20 of the Official Code of5 Georgia Annotated, relating to capital outlay funds under the "Quality Basic Education Act,"6 so as to provide for the award of low-wealth capital outlay grants to qualifying local school7 systems that award certain contracts for roofing improvements to suppliers that meet certain8 criteria; to provide for such criteria; to amend Chapter 91 of Title 36 of the Official Code of9 Georgia Annotated, relating to public works bidding, so as to provide that certain contracts10 for roofing improvements with suppliers that meet certain criteria shall be deemed to have11 complied with notice and competitive award requirements for certain contracts; to provide12 for such criteria; to provide for related matters; to provide f or an effective date and13 applicability; to repeal conflicting laws; and for other purposes.14 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15 S. B. 284 - 1 - 26 LC 47 4222S SECTION 1.16 Chapter 5 of Title 10 of the Official Code of Georgia Annotated , the "Georgia Uniform17 Securities Act of 2008," is amended by revising Code Section 10-5-73, relating to cease and18 desist orders, denying, revoking, or conditioning exemptions fo r broker-dealers, and civil19 penalties, as follows:20 "10-5-73.21 (a) If the Commissioner determines that a person has engaged, is engaging, or is about to22 engage in an act, practice, or course of business constituting a violation of this chapter or23 a rule adopted or order issued under this chapter or that a per son has materially aided, is24 materially aiding, or is about to materially aid an act, practi ce, or course of business25 constituting a violation of this chapter or a rule adopted or order issued under this chapter,26 the Commissioner may:27 (1) Issue an order directing the person to cease and desist fr om engaging in the act,28 practice, or course of business or to take other action necessary or appropriate to comply29 with this chapter;30 (2) Issue an order denying, suspending, revoking, or conditioning the exemptions for a31 broker-dealer under subparagraph (b)(1)(D) or (b)(1)(F) of Code Section 10-5-30 or an32 investment adviser under subparagraph (b)(1)(C) of Code Section 10-5-32; or33 (3) Issue an order under Code Section 10-5-13; or34 (4) Issue an order directing the person to return to investors , customers, or clients the35 principal dollar amount of their securities purchases, as well as all moneys collected in36 connection with those securities purchases, if the Commissioner determines that the37 person has engaged or is engaging in an act, practice, or course of business constituting38 a violation of Code Section 10-5-50, 10-5-51, or 10-5-54 or that the person has materially39 aided or is materially aiding in an act, practice, or course of business constituting a40 violation of Code Section 10-5-50, 10-5-51, or 10-5-54.41 S. B. 284 - 2 - 26 LC 47 4222S (b) An order under subsection (a) of this Code section is effective on the date of issuance. 42 Upon issuance of the order, the Commissioner shall promptly serve each person subject to43 the order with a copy of the order and a notice that the order has been entered. The order44 must shall include a statement whether the Commissioner will seek a civil penalty or costs45 of the investigation, a statement of the reasons for the order, and notice that, within 30 days46 after receipt of a request in a record from the person, the mat ter will be scheduled for a47 hearing. If a person subject to the order does not request a hearing and none is ordered by48 the Commissioner within 30 days after the date of service of the order, the order becomes49 final as to that person by operation of law. If a hearing is r equested or ordered, the50 Commissioner, after notice of and opportunity for hearing to ea ch person subject to the51 order, may modify or vacate the order or extend it until final determination.52 (c) If a hearing is requested or ordered pursuant to subsection (b) of this Code section, a53 hearing must shall be held pursuant to the provisions of Chapter 13 of Title 50, the 'Georgia54 Administrative Procedure Act' and this chapter. A final order may shall not be issued55 unless the Commissioner makes findings of fact and conclusions of law in a record. The56 final order may make final, vacate, or modify the order issued under subsection (a) of this57 Code section.58 (d) In a final order under subsection (c) of this Code section , the Commissioner may59 impose a civil penalty up to $50,000.00 for a single violation or up to $500,000.00 for more60 than one violation.61 (e) In a final order under subsection (c) of this Code section , the Commissioner may62 charge the actual cost of an investigation or proceeding for a violation of this chapter or a63 rule adopted or order issued under this chapter.64 (f) If a petition for judicial review of a final order is not filed in accordance with Code65 Section 10-5-78, the Commissioner may file a certified copy of the final order with the66 clerk of a court of competent jurisdiction. The order so filed has the same effect as a67 S. B. 284 - 3 - 26 LC 47 4222S judgment of the court and may be recorded, enforced, or satisfied in the same manner as68 a judgment of the court.69 (g) If a person does not comply with an order under this Code section, the Commissioner70 may petition a court of competent jurisdiction to enforce the order. The court may shall71 not require the Commissioner to post a bond in an action or pro ceeding under this Code72 section. If the court finds, after service and opportunity for hearing, that the person was73 not in compliance with the order, the court may adjudge the person in civil contempt of the74 order. The court may impose a further civil penalty against the person for contempt in an75 amount not less than $5,000.00 but not greater than $50,000.00 for each violation and may76 grant any other relief the court determines is just and proper in the circumstances."77 SECTION 2.78 Part 10 of Article 6 of Chapter 2 of Title 20 of the Official C ode of Georgia Annotated,79 relating to capital outlay funds under the "Quality Basic Education Act," is amended in Code80 Section 20-2-262, relating to low-wealth capital outlay grants to local school systems and81 criteria for eligibility, by redesignating subsection (g) as subsection (h) and by adding a new82 subsection to read as follows:83 "(g) Each local school system which meets the eligibility criteria in subsection (d) of this84 Code section shall, upon utilizing a contract for the improvement of the roof of an existing85 structure or building to a supplier approved by a cooperative purchasing organization and86 designated by the Department of Administrative Services as an authorized source of supply87 pursuant to subsection (i) of Code Section 36-91-21, receive lo w-wealth capital outlay88 grants pursuant to this Code section for such roofing improveme nt, provided that such89 improvement is included in the local school system's most recently approved local facilities90 plan, as provide for in subsection (c) of this Code section."91 S. B. 284 - 4 - 26 LC 47 4222S SECTION 3.92 Chapter 91 of Title 36 of the Official Code of Georgia Annotated, relating to public works93 bidding, is amended in Code Section 36-91-2, relating to defini tions, by revising94 paragraph (12) as follows:95 "(12) 'Public works construction' means the building, altering, repairing, improving, or96 demolishing of any public structure or building or other public improvements of any kind97 to any public real property other than those projects covered by Chapter 4 of Title 32 or98 by Chapter 37 of Title 50. Such term does shall not include the routine operation, repair,99 or maintenance of existing structures, buildings, or real property, or any energy savings100 performance contract or , any improvements or installations performed as part of an101 energy savings performance contract, or any improvement of the roof of an existing102 structure or building; provided, however, that such improvement to the roof of an existing103 structure or building shall not include any ancillary items to be placed on such roof."104 SECTION 4.105 Said chapter is further amended in Code Section 36-91-21, relat ing to competitive award106 requirements, by adding a new subsection to read as follows:107 "(i) The notice and competitive award requirements of this chapter shall be deemed to have108 been satisfied when a contract for the improvement of the roof of an existing structure or109 building is awarded to a supplier approved by a cooperative purchasing organization and110 designated by the Department of Administrative Services as an a uthorized source of111 supply."112 SECTION 5.113 This Act shall become effective upon its approval by the Governor or upon its becoming law114 without such approval and shall apply to all contracts entered into on or after the effective115 date of this Act.116 S. B. 284 - 5 - 26 LC 47 4222S SECTION 6.117 All laws and parts of laws in conflict with this Act are repealed.118 S. B. 284 - 6 -