Georgia CommonsSenate · Passed · 2025-2026 Regular Session
SB 284: "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
Last action April 22, 2026 · Effective Date
Senate Bill 284 lets Georgia's Securities Commissioner order violators of certain securities laws to repay investors, and separately eases bidding rules for school roofing contracts bought through state-approved cooperative purchasing sources.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.
In plain language
This bill makes two unrelated changes to Georgia law. First, it amends the Georgia Uniform Securities Act of 2008 (O.C.G.A. Chapter 5 of Title 10) so the Commissioner of Securities can order someone found to have violated key anti-fraud provisions to return the full purchase amount and any other money collected from investors, customers, or clients, not just issue cease and desist orders or civil penalties as before. Second, the bill changes school construction rules. Local school systems that already qualify for low-wealth capital outlay grants would automatically qualify for those grants when they hire a roofing contractor through a state-approved cooperative purchasing organization, as long as the roofing work is in their approved facilities plan. It also amends Georgia's public works bidding law (O.C.G.A. Chapter 91 of Title 36) so that using such a pre-approved roofing supplier automatically satisfies competitive bidding notice requirements, and clarifies that ordinary roof improvements are not 'public works construction' subject to standard bidding rules. The law would take effect as soon as the Governor signs it and would apply to contracts entered afterward.
What the bill does
- Lets the Commissioner of Securities order violators of specific securities fraud provisions to repay investors, customers, or clients the full purchase price and related funds collected.
- Requires the Commissioner's cease and desist orders to state whether a civil penalty or investigation costs will be sought and tightens rules so hearings and final orders must follow required procedures.
- Bars courts from requiring the Commissioner to post a bond when seeking to enforce a securities order in court.
- Grants automatic low-wealth capital outlay funding to school systems that hire a state-approved cooperative purchasing supplier for roof repairs, if the work is in their approved facilities plan.
- Exempts roof improvement contracts awarded through approved cooperative purchasing suppliers from standard public works competitive bidding notice requirements.
- Excludes routine roof improvements to existing buildings from the legal definition of 'public works construction' under Georgia's bidding law.
Who it affects
Securities brokers, investment advisers, and other regulated persons found in violation of Georgia securities law; investors, customers, and clients who lost money in such violations; local school systems seeking capital outlay funding for roof repairs; and cooperative purchasing organizations and suppliers involved in public school construction contracts.
Why it matters
Investors defrauded under certain Georgia securities provisions could get their money back through a state order rather than relying solely on civil penalties or private lawsuits. School districts using pre-approved roofing suppliers would face fewer bidding hurdles and gain a more direct path to state construction funding, potentially speeding up roof repair projects.
Key provisions
- Section 1 revises O.C.G.A. § 10-5-73 to add a new remedy: an order directing violators of Code Sections 10-5-50, 10-5-51, or 10-5-54 to return investors' principal and related funds.
- Section 1 also changes several 'must'/'may' terms to 'shall,' making hearing procedures, final order findings, and the no-bond rule for court enforcement mandatory rather than discretionary.
- Section 1 keeps existing civil penalty caps of $50,000 for a single violation and $500,000 for multiple violations, plus contempt penalties of $5,000 to $50,000 per violation for noncompliance with an order.
- Section 2 amends O.C.G.A. § 20-2-262 to guarantee low-wealth capital outlay grants for roofing contracts awarded to Department of Administrative Services-approved cooperative purchasing suppliers, if included in the district's facilities plan.
- Section 3 revises the definition of 'public works construction' in O.C.G.A. § 36-91-2 to exclude roof improvements to existing structures, except for ancillary items placed on the roof.
- Section 4 adds a new subsection to O.C.G.A. § 36-91-21 stating that using an approved cooperative purchasing roofing supplier automatically satisfies public works notice and competitive award requirements.
- Section 5 makes the law effective upon the Governor's signature (or becoming law without signature), applying only to contracts entered into after that date.
From the bill
“Issue an order directing the person to return to investors, customers, or clients the principal dollar amount of their securities purchases, as well as all moneys collected in connection with those securities purchases”
“The notice and competitive award requirements of this chapter shall be deemed to have been satisfied when a contract for the improvement of the roof of an existing structure or building is awarded to a supplier approved by a cooperative purchasing organization”
Discussed in meetings (5)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Governmental Affairs Committee, March 18, 2026
From 0:27:01 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The presenter said the substitute would let the state's securities division order violators to repay money directly to fraud victims. The presenter said current civil fines are limited to ten fines of $50,000 each, totaling $500,000, while losses can be greater. The presenter said the bill would take effect upon the governor's signature to help victims recover money sooner. A second presenter explained that the substitute also included school-roofing provisions from HB 669, allowing cooperative purchasing while preserving eligibility for capital outlay reimbursements and low-wealth grants. One committee member asked whether the repayment provision applied to banks and how victims currently recover money. The first presenter said victims currently must hire an attorney and pursue costly court proceedings, while the bill would allow a direct repayment order followed by court enforcement if necessary. A second member asked whether businesses were covered. The presenter said the provision would apply to any business or individual violating the Georgia Uniform Securities Act. The committee approved the substitute by voice vote, with no count stated. The presenter subsequently confirmed serving as the House sponsor.
House Rules Committee, March 20, 2026
From 0:51:58 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2913
Summary by Georgia Commons: The sponsor said SB 284 would allow the state securities commissioner to require people who defraud investors to return money directly to those investors, beyond existing powers to impose fines and stop unlawful activity. The sponsor cited the First Liberty collapse, saying a federal receiver might repay vendors or others before investors. The sponsor said a change making the bill effective upon the governor's signature might help people who lost money in that case. The sponsor also described an added House provision helping schools in low-wealth areas obtain capital construction grants. A committee member supported the proposal and reported hearing from residents who had lost savings. Later, the committee placed the bill on the day's supplemental calendar with no opposition voiced.
House floor session, March 20, 2026 (legislative day 35)
From 2:19:10 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2914
Summary by Georgia Commons: The presenter said SB 284 would let the securities division pursue repayment to financial-fraud victims rather than only impose civil penalties. The presenter described pyramid schemes as an example and said the goal was dollar-for-dollar recovery for investors. The presenter also said the bill included school roofing provisions allowing purchases through a cooperative purchasing agency and making those projects eligible for capital outlay reimbursement for low-wealth school systems. Another member supported the investor-repayment provisions, citing experience arbitrating disputes between investors and issuing companies and saying victims often cannot recover their full losses. No questions or opposing remarks were heard. The House adopted the committee substitute without objection and passed the bill, 155 to 0.
Senate floor session, March 27, 2026 (legislative day 38)
From 5:55:55 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Agreed House Amend or Sub)
Summary by Georgia Commons: The sponsor said SB 284 would let the Secretary of State's Securities Division order people who defraud investors to return their money. The sponsor contrasted this with existing powers to stop activity, restrict licenses or impose penalties paid to the state. The sponsor cited the First Liberty case and other schemes as reasons for the change, saying older residents are often victims. One member asked whether the purpose was to make victims whole, and the sponsor confirmed that intent. The sponsor said the House also added Department of Education-requested provisions on roofing procurement for low-wealth school systems and made the bill effective upon the governor's signature. The Senate agreed to the House substitute 44-0.
Status timeline
- Effective Date
- Act 377
- Senate Date Signed by Governor (Senate)
- Senate Sent to Governor (Senate)
- Senate Agreed House Amend or Sub (Senate)
- House Passed/Adopted By Substitute (House)
- House Third Readers (House)
- House Committee Favorably Reported By Substitute (House)
Show full history (21 actions)
- House Withdrawn, Recommitted (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- Senate Passed/Adopted (Senate)
- Senate Third Read (Senate)
- Senate Taken from Table (Senate)
- Senate Tabled (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported (Senate)
- Senate Withdrawn & Recommitted (Senate)
- Senate Read and Referred (Senate)
- Senate Hopper (Senate)
Sponsors
- Larry Walker, III (R, SD-20)
- Matt Brass (R, SD-6)
- John F. Kennedy (R, SD-18)
- Brian Strickland (R, SD-42)
- Carden Summers (R, SD-13)
- Kay Kirkpatrick (R, SD-32)
- Clint Dixon (R, SD-45)
- Harold Jones II (D, SD-22)
- Sonya Halpern (D, SD-39)
- Scott Hilton (R, HD-48)
Votes
- Senate voteMarch 6, 2025
54 yea, 1 nay (0 not voting, 1 excused)
- House voteMarch 20, 2026
155 yea, 0 nay (9 not voting, 12 excused)
- Senate voteMarch 27, 2026
44 yea, 0 nay (4 not voting, 6 excused)
Topics
- securities fraud enforcement
- investor protection
- school construction funding
- public works bidding
- roofing contracts