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 "Georgia
Uniform Securities Act of 2008," so as to authorize the issuance of orders by the
Commissioner of Securities directing persons who have violated certain securities provisions
to return to investors, customers, or clients sums paid in connection with securities
purchases; to amend Part 10 of Article 6 of Chapter 2 of Title 20 of the Official Code of
Georgia Annotated, relating to capital outlay funds under the "Quality Basic Education Act,"
so as to provide for the award of low-wealth capital outlay grants to qualifying local school
systems that award certain contracts for roofing improvements to suppliers that meet certain
criteria; to provide for such criteria; to amend Chapter 91 of Title 36 of the Official Code of
Georgia Annotated, relating to public works bidding, so as to provide that certain contracts
for roofing improvements with suppliers that meet certain criteria shall be deemed to have
complied with notice and competitive award requirements for certain contracts; to provide
for such criteria; to provide for related matters; to provide for an effective date and
applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia Uniform
Securities Act of 2008," is amended by revising Code Section 10-5-73, relating to cease and
desist orders, denying, revoking, or conditioning exemptions for broker-dealers, and civil
penalties, as follows:
"10-5-73.
(a) If the Commissioner determines that a person has engaged, is engaging, or is about to
engage in an act, practice, or course of business constituting a violation of this chapter or
a rule adopted or order issued under this chapter or that a person has materially aided, is
materially aiding, or is about to materially aid an act, practice, or course of business
constituting a violation of this chapter or a rule adopted or order issued under this chapter,
the Commissioner may:
(1) Issue an order directing the person to cease and desist from engaging in the act,
practice, or course of business or to take other action necessary or appropriate to comply
with this chapter;
(2) Issue an order denying, suspending, revoking, or conditioning the exemptions for a
broker-dealer under subparagraph (b)(1)(D) or (b)(1)(F) of Code Section 10-5-30 or an
investment adviser under subparagraph (b)(1)(C) of Code Section 10-5-32; <del>or
</del> (3) Issue an order under Code Section 10-5-13; or
<ins>(4) 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, if the Commissioner determines that the
person has engaged or is engaging in an act, practice, or course of business constituting
a violation of Code Section 10-5-50, 10-5-51, or 10-5-54 or that the person has materially
aided or is materially aiding in an act, practice, or course of business constituting a
violation of Code Section 10-5-50, 10-5-51, or 10-5-54.
</ins>
(b) An order under subsection (a) of this Code section is effective on the date of issuance.
Upon issuance of the order, the Commissioner shall promptly serve each person subject to
the order with a copy of the order and a notice that the order has been entered. The order
<del>must</del> <ins>shall</ins> include a statement whether the Commissioner will seek a civil penalty or costs
of the investigation, a statement of the reasons for the order, and notice that, within 30 days
after receipt of a request in a record from the person, the matter will be scheduled for a
hearing. If a person subject to the order does not request a hearing and none is ordered by
the Commissioner within 30 days after the date of service of the order, the order becomes
final as to that person by operation of law. If a hearing is requested or ordered, the
Commissioner, after notice of and opportunity for hearing to each person subject to the
order, may modify or vacate the order or extend it until final determination.
(c) If a hearing is requested or ordered pursuant to subsection (b) of this Code section, a
hearing <del>must</del> <ins>shall</ins> be held pursuant to the provisions of Chapter 13 of Title 50, the 'Georgia
Administrative Procedure Act' and this chapter. A final order <del>may</del> <ins>shall</ins> not be issued
unless the Commissioner makes findings of fact and conclusions of law in a record. The
final order may make final, vacate, or modify the order issued under subsection (a) of this
Code section.
(d) In a final order under subsection (c) of this Code section, the Commissioner may
impose a civil penalty up to $50,000.00 for a single violation or up to $500,000.00 for more
than one violation.
(e) In a final order under subsection (c) of this Code section, the Commissioner may
charge the actual cost of an investigation or proceeding for a violation of this chapter or a
rule adopted or order issued under this chapter.
(f) If a petition for judicial review of a final order is not filed in accordance with Code
Section 10-5-78, the Commissioner may file a certified copy of the final order with the
clerk of a court of competent jurisdiction. The order so filed has the same effect as a
judgment of the court and may be recorded, enforced, or satisfied in the same manner as
a judgment of the court.
(g) If a person does not comply with an order under this Code section, the Commissioner
may petition a court of competent jurisdiction to enforce the order. The court <del>may</del> <ins>shall
</ins> not require the Commissioner to post a bond in an action or proceeding under this Code
section. If the court finds, after service and opportunity for hearing, that the person was
not in compliance with the order, the court may adjudge the person in civil contempt of the
order. The court may impose a further civil penalty against the person for contempt in an
amount not less than $5,000.00 but not greater than $50,000.00 for each violation and may
grant any other relief the court determines is just and proper in the circumstances."
SECTION 2.
Part 10 of Article 6 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated,
relating to capital outlay funds under the "Quality Basic Education Act," is amended in Code
Section 20-2-262, relating to low-wealth capital outlay grants to local school systems and
criteria for eligibility, by redesignating subsection (g) as subsection (h) and by adding a new
subsection to read as follows:
<ins>"(g) Each local school system which meets the eligibility criteria in subsection (d) of this
Code section shall, upon utilizing a contract for the improvement of the roof of an existing
structure or building to a supplier approved by a cooperative purchasing organization and
designated by the Department of Administrative Services as an authorized source of supply
pursuant to subsection (i) of Code Section 36-91-21, receive low-wealth capital outlay
grants pursuant to this Code section for such roofing improvement, provided that such
improvement is included in the local school system's most recently approved local facilities
plan, as provide for in subsection (c) of this Code section."
</ins>
SECTION 3.
Chapter 91 of Title 36 of the Official Code of Georgia Annotated, relating to public works
bidding, is amended in Code Section 36-91-2, relating to definitions, by revising
paragraph (12) as follows:
"(12) 'Public works construction' means the building, altering, repairing, improving, or
demolishing of any public structure or building or other public improvements of any kind
to any public real property other than those projects covered by Chapter 4 of Title 32 or
by Chapter 37 of Title 50. Such term <del>does</del> <ins>shall</ins> not include the routine operation, repair,
or maintenance of existing structures, buildings, or real property, or any energy savings
performance contract <del>or,</del> any improvements or installations performed as part of an
energy savings performance contract, <ins>or any improvement of the roof of an existing
structure or building; provided, however, that such improvement to the roof of an existing
structure or building shall not include any ancillary items to be placed on such roof."
</ins> SECTION 4.
Said chapter is further amended in Code Section 36-91-21, relating to competitive award
requirements, by adding a new subsection to read as follows:
<ins>"(i) 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 and
designated by the Department of Administrative Services as an authorized source of
supply."
</ins> SECTION 5.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval and shall apply to all contracts entered into on or after the effective
date of this Act.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.