| 6 | 5 | | A BILL TO BE ENTITLED |
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| 7 | 6 | | AN ACT |
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| 8 | 7 | | To amend Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia |
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| 9 | 8 | | 1 |
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| 10 | 9 | | Uniform Securities Act of 2008," so as to authorize the issuance of orders by the2 |
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| 11 | 10 | | Commissioner of Securities directing persons who have violated certain securities provisions3 |
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| 12 | 11 | | to return to investors, customers, or clients sums paid in connection with securities4 |
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| 13 | 12 | | purchases; to provide for related matters; to repeal conflicting laws; and for other purposes.5 |
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| 14 | 13 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 15 | 14 | | SECTION 1.7 |
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| 16 | 15 | | Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia Uniform8 |
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| 17 | 16 | | Securities Act of 2008," is amended by revising Code Section 10-5-73, relating to cease and9 |
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| 18 | 17 | | desist orders, denying, revoking, or conditioning exemptions for broker-dealers, and civil10 |
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| 19 | 18 | | penalties, as follows:11 |
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| 20 | 19 | | "10-5-73.12 |
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| 21 | 20 | | (a) If the Commissioner determines that a person has engaged, is engaging, or is about to13 |
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| 22 | 21 | | engage in an act, practice, or course of business constituting a violation of this chapter or14 |
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| 23 | 22 | | a rule adopted or order issued under this chapter or that a person has materially aided, is15 |
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| 24 | 23 | | materially aiding, or is about to materially aid an act, practice, or course of business16 |
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| 25 | 24 | | S. B. 284 |
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| 26 | 25 | | - 1 - 25 LC 55 0536 |
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| 27 | 26 | | constituting a violation of this chapter or a rule adopted or order issued under this chapter, |
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| 28 | 27 | | 17 |
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| 29 | 28 | | the Commissioner may:18 |
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| 30 | 29 | | (1) Issue an order directing the person to cease and desist from engaging in the act,19 |
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| 31 | 30 | | practice, or course of business or to take other action necessary or appropriate to comply20 |
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| 32 | 31 | | with this chapter;21 |
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| 33 | 32 | | (2) Issue an order denying, suspending, revoking, or conditioning the exemptions for a22 |
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| 34 | 33 | | broker-dealer under subparagraph (b)(1)(D) or (b)(1)(F) of Code Section 10-5-30 or an23 |
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| 35 | 34 | | investment adviser under subparagraph (b)(1)(C) of Code Section 10-5-32; or |
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| 36 | 35 | | 24 |
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| 37 | 36 | | (3) Issue an order under Code Section 10-5-13; or25 |
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| 38 | 37 | | (4) Issue an order directing the person to return to investors, customers, or clients the26 |
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| 39 | 38 | | principal dollar amount of their securities purchases, as well as all moneys collected in27 |
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| 40 | 39 | | connection with those securities purchases, if the Commissioner determines that the28 |
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| 41 | 40 | | person has engaged or is engaging in an act, practice, or course of business constituting29 |
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| 42 | 41 | | a violation of Code Section 10-5-50, 10-5-51, or 10-5-54 or that the person has materially30 |
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| 43 | 42 | | aided or is materially aiding in an act, practice, or course of business constituting a31 |
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| 44 | 43 | | violation of Code Section 10-5-50, 10-5-51, or 10-5-54.32 |
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| 45 | 44 | | (b) An order under subsection (a) of this Code section is effective on the date of issuance. 33 |
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| 46 | 45 | | Upon issuance of the order, the Commissioner shall promptly serve each person subject to34 |
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| 47 | 46 | | the order with a copy of the order and a notice that the order has been entered. The order35 |
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| 48 | 47 | | must shall include a statement whether the Commissioner will seek a civil penalty or costs36 |
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| 49 | 48 | | of the investigation, a statement of the reasons for the order, and notice that, within 30 days37 |
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| 50 | 49 | | after receipt of a request in a record from the person, the matter will be scheduled for a38 |
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| 51 | 50 | | hearing. If a person subject to the order does not request a hearing and none is ordered by39 |
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| 52 | 51 | | the Commissioner within 30 days after the date of service of the order, the order becomes40 |
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| 53 | 52 | | final as to that person by operation of law. If a hearing is requested or ordered, the41 |
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| 54 | 53 | | Commissioner, after notice of and opportunity for hearing to each person subject to the42 |
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| 55 | 54 | | order, may modify or vacate the order or extend it until final determination.43 |
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| 56 | 55 | | S. B. 284 |
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| 57 | 56 | | - 2 - 25 LC 55 0536 |
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| 58 | 57 | | (c) If a hearing is requested or ordered pursuant to subsection (b) of this Code section, a |
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| 59 | 58 | | 44 |
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| 60 | 59 | | hearing must |
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| 61 | 60 | | shall be held pursuant to the provisions of Chapter 13 of Title 50, the 'Georgia45 |
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| 62 | 61 | | Administrative Procedure Act' and this chapter. A final order may shall not be issued46 |
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| 63 | 62 | | unless the Commissioner makes findings of fact and conclusions of law in a record. The47 |
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| 64 | 63 | | final order may make final, vacate, or modify the order issued under subsection (a) of this48 |
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| 65 | 64 | | Code section.49 |
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| 66 | 65 | | (d) In a final order under subsection (c) of this Code section, the Commissioner may50 |
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| 67 | 66 | | impose a civil penalty up to $50,000.00 for a single violation or up to $500,000.00 for more51 |
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| 68 | 67 | | than one violation.52 |
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| 69 | 68 | | (e) In a final order under subsection (c) of this Code section, the Commissioner may53 |
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| 70 | 69 | | charge the actual cost of an investigation or proceeding for a violation of this chapter or a54 |
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| 71 | 70 | | rule adopted or order issued under this chapter.55 |
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| 72 | 71 | | (f) If a petition for judicial review of a final order is not filed in accordance with Code56 |
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| 73 | 72 | | Section 10-5-78, the Commissioner may file a certified copy of the final order with the57 |
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| 74 | 73 | | clerk of a court of competent jurisdiction. The order so filed has the same effect as a58 |
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| 75 | 74 | | judgment of the court and may be recorded, enforced, or satisfied in the same manner as59 |
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| 76 | 75 | | a judgment of the court.60 |
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| 77 | 76 | | (g) If a person does not comply with an order under this Code section, the Commissioner61 |
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| 78 | 77 | | may petition a court of competent jurisdiction to enforce the order. The court may shall62 |
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| 79 | 78 | | not require the Commissioner to post a bond in an action or proceeding under this Code63 |
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| 80 | 79 | | section. If the court finds, after service and opportunity for hearing, that the person was64 |
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| 81 | 80 | | not in compliance with the order, the court may adjudge the person in civil contempt of the65 |
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| 82 | 81 | | order. The court may impose a further civil penalty against the person for contempt in an66 |
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| 83 | 82 | | amount not less than $5,000.00 but not greater than $50,000.00 for each violation and may67 |
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| 84 | 83 | | grant any other relief the court determines is just and proper in the circumstances."68 |
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| 85 | 84 | | S. B. 284 |
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| 86 | 85 | | - 3 - 25 LC 55 0536 |
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| 87 | 86 | | SECTION 2. |
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| 88 | 87 | | 69 |
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| 89 | 88 | | All laws and parts of laws in conflict with this Act are repealed.70 |
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| 90 | 89 | | S. B. 284 |
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| 91 | 90 | | - 4 - |
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