HB934: HB934 Banking and finance; transfer regulation of securities and commodities from Secretary of State to Department of Banking and Finance

26 LC 62 0362S The House Committee on Banks and Banking offers the following substitute to HB 934: A BILL TO BE ENTITLED AN ACT To amend Titles 7, 10, and 45 of the Official Code of Georgia Annotated, relating to banking1 and finance, commerce and trade, and public officers and employees, respectively, so as to2 transfer the regulation of securities and commodities from the Secretary of State to the3 Department of Banking and Finance; to provide for an advisory b oard; to provide for4 conformity; to provide for an effective date; to repeal conflic ting laws; and for other5 purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is9 amended in Chapter 1, relating to financial institutions, by ad ding a new article to read as10 follows:11 H. B. 934 (SUB) - 1 - 26 LC 62 0362S "ARTICLE 1512 7-1-1140.13 (a) The powers, functions, duties, and obligations of the Secr etary of State as they exist14 on June 30, 2026, with regard to securities regulation pursuant to Chapter 5 and15 commodities regulation pursuant to Chapter 5A of Title 10, are transferred to the16 department effective July 1, 2026.17 (b) On and after July 1, 2026, the department shall regulate securities and commodities in18 Georgia and may coordinate with the Secretary of State for access to and maintenance of19 records related to securities and commodities regulation for th e department to fulfill its20 duties.21 (c) On and after July 1, 2026, any ongoing securities and commodities investigations with22 the office of the Secretary of State shall immediately transfer to the department.23 7-1-1141.24 (a) The commissioner shall appoint an advisory board, consisti ng of up to 12 members. 25 Of such members, at least one member shall have securities regulation experience and at26 least one member shall have commodities regulation experience. The remaining members27 shall have such qualifications as the commissioner may determine. The members of the28 advisory board shall serve at the pleasure of the commissioner.29 (b) The role of the advisory board shall be to provide ongoing advisement and consultation30 to the commissioner with respect to the duties required pursuan t to this article and31 Chapters 5 and 5A of Title 10. The function of the board shall be advisory only.32 7-1-1142.33 The commissioner is authorized and directed to promulgate such rules and regulations as34 necessary to implement the provisions of this article.35 H. B. 934 (SUB) - 2 - 26 LC 62 0362S 7-1-1143.36 (a) The department shall succeed to all rules, regulations, po licies, and administrative37 orders of the Secretary of State that are in effect on June 30, 2026, or are set to go into38 effect on or after July 1, 2026, and which relate to the functi ons transferred to the39 department pursuant to subsection (a) of Code Section 7-1-1140 and shall further succeed40 to any rights, privileges, entitlements, obligations, and duties of the Secretary of State that41 are in effect on June 30, 2026, and which relate to the functio ns transferred to the42 department pursuant to subsection (a) of Code Section 7-1-1140. Such rules, regulations,43 policies, procedures, and administrative orders shall remain in effect until amended,44 repealed, superseded, or nullified by the department by proper authority or otherwise45 provided by law.46 (b) The rights, privileges, entitlements, and duties of partie s to contracts, leases,47 agreements, and other transactions entered into before July 1, 2026, by the Secretary of48 State which relate to the functions transferred to the department pursuant to subsection (a)49 of Code Section 7-1-1140 shall continue to exist; and none of t hese rights, privileges,50 entitlements, and duties are impaired or diminished by reason o f the transfer of the51 functions to the department. In all such instances, the department shall be substituted for52 the Secretary of State and the department shall succeed to the rights and duties under such53 contracts, leases, agreements, and other transactions.54 (c) All persons employed by the Secretary of State in capaciti es which relate to the55 functions transferred to the department pursuant to subsection (a) of Code Section 7-1-114056 on June 30, 2026, shall, on July 1, 2026, become employees of the department in similar57 capacities, as determined by the commissioner. Such employees shall be subject to the58 employment practices and policies of the department on and afte r July 1, 2026, but the59 compensation and benefits of such transferred employees shall not be reduced as a result60 of such transfer. Employees who are subject to the rules of the State Personnel Board and61 who are transferred to the department shall retain all existing rights under such rules. 62 H. B. 934 (SUB) - 3 - 26 LC 62 0362S Accrued annual and sick leave possessed by the transferred employees on June 30, 2026,63 shall be retained by such employees as employees of the department.64 (d) On July 1, 2026, the department shall receive custody of the state owned real property65 in the custody of the Secretary of State on June 30, 2026, and which pertains to the66 functions transferred to the department pursuant to subsection (a) of Code67 Section 7-1-1140."68 SECTION 2.69 Title 10 of the Official Code of Georgia Annotated, relating to commerce and trade, is70 amended in Chapter 5, relating to Georgia uniform securities, by revising paragraph (6) of71 Code Section 10-5-2, relating to definitions, as follows:72 "(6) 'Commissioner' means the Secretary of State of Georgia commissioner of banking73 and finance."74 SECTION 3.75 Said title is further amended in said chapter by revising subse ction (a) of Code76 Section 10-5-70, relating to administration of chapter, commiss ioner of securities, and77 authority, as follows:78 "(a) The administration of this chapter shall be vested in the Secretary of State79 commissioner of banking and finance , who is designated as the Commissioner of80 Securities."81 SECTION 4.82 Said title is further amended in Chapter 5A, relating to commod ities and commodity83 contracts and options, by revising subsection (a) of Code Secti on 10-5A-24, relating to84 Commissioner of Securities, employees, compensation and expenses, assistant commissioner,85 prohibited use of information, and confidential information, as follows:86 H. B. 934 (SUB) - 4 - 26 LC 62 0362S "(a) This chapter shall be administered by the office of the Secretary of State commissioner87 of banking and finance, who is designated as the Commissioner of Securities."88 SECTION 5.89 Title 45 of the Official Code of Georgia Annotated, relating to public officers and employees,90 is amended in Chapter 13, relating to Secretary of State, by revising subsection (a) of Code91 Section 45-13-26, relating to designation of employees as agents to accept service of process,92 powers of designees, and fees for acceptance of process, as follows:93 "(a) The Secretary of State is authorized to designate one or more of his or her employees94 as an agent for accepting service of summons or other process under any statute providing95 for service of summons or other process upon the Secretary of State or the Commissioner96 of Securities. Such designation shall be in writing, and all acts relative to such service by97 any such designee shall be as valid and binding as though perfo rmed in person by the98 Secretary of State or the Commissioner of Securities, as the case may be. The power and99 authority of any such designee shall cease immediately upon such designee's ceasing to be100 an employee of the Secretary of State."101 SECTION 6.102 This Act shall become effective on July 1, 2026.103 SECTION 7.104 All laws and parts of laws in conflict with this Act are repealed.105 H. B. 934 (SUB) - 5 -