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