Committee Approves Bill to Move Securities Oversight to Department of Banking and Finance

ATLANTA — The Banking and Finance Committee on Friday advanced House Bill 934, a proposal to transfer regulation of securities and commodities from the Secretary of State’s office to the Department of Banking and Finance, after members debated implementation risks, fiscal effects and recent investor losses tied to First Liberty.

Assistant Commissioner Nuala Zahara of the Secretary of State’s office told the committee the move is “a complex process” that could create operational and technological disruptions and risk loss of institutional knowledge. Zahara urged legislators to require a fiscal note and convene a study committee of stakeholders from both agencies to evaluate legal, operational and budgetary impacts before consolidation.

“Moving an agency to a new parent entity is a complex process,” Zahara said. She recommended a cost-benefit analysis and interagency agreements to avoid duplicative expenses and preserve continuity.

Lawmakers pressing for the transfer cited the recent enforcement action tied to First Liberty Building and Loan, which several members said produced large investor losses. Member (Speaker 4) asked aloud how the Secretary of State’s “tireless” investor protection could be reconciled with what he described as “$140,000,000 of investor harm.” Other members argued that placing securities oversight under an appointed banking commissioner — who cannot accept campaign contributions — would reduce political influence over regulation.

Supporters emphasized experience at the Department of Banking and Finance and said many states use a combined regulator. Opponents and some committee members urged caution, warning that agency moves require careful planning for staff transfers, IT and data migration and potential fiscal costs. Assistant Commissioner Zahara said the Secretary of State’s division for securities, commodities, charities and cemeteries operates on roughly $1,200,000 in legislative funding and noted that system platforms belong to the Secretary of State, which could complicate transfer.

Chair (Speaker 1) presented the bill (LC 620362S), which would transfer duties and ongoing investigations effective July 1, 2026; convert employees in affected roles to Department of Banking and Finance positions on that date; and authorize the banking commissioner to appoint an advisory board of up to 12 members, at least one with securities regulation experience.

After brief additional discussion about administrative costs and IT compatibility, the committee moved, seconded and approved the bill by voice vote. The committee did not record a roll-call tally in the hearing; the action was advanced from committee for further consideration.

The Secretary of State’s office and the Department of Banking and Finance discussed coordination during the hearing; Zahara said the offices already work with federal partners including the SEC and Department of Justice and will follow up on any outstanding referrals or calls identified during the committee’s questioning. The committee did not adopt an amendment on the floor.