Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the SB284 Restitution And School Procurement topic
No spam. Unsubscribe anytime.
Committee advances bill to let securities division order restitution for fraud victims and ease school roofing procurement
Summary
The House Government Affairs Committee gave a do-pass recommendation to Senate Bill 284, which would let the state securities division order dollar-for-dollar repayment to victims of securities fraud and adds a provision allowing school systems to use cooperative-purchasing suppliers for roof repairs that can qualify for capital outlay reimbursements for low-wealth schools.
The House Government Affairs Committee advanced Senate Bill 284 after a presentation from the bill’s sponsor, who said the measure is intended to speed restitution to victims of securities fraud.
The presenter told the committee that fraud is increasing and that current enforcement under the Georgia Uniform Securities Act limits regulators to civil fines—fines that the presenter described as capped at $50,000 per violation and $500,000 in total—often leaving victims without prompt recovery. “This allows the securities division to get back dollar for dollar the fraud money that was lost,” the presenter said, arguing the measure would allow the agency to issue orders requiring repayment and, if necessary, seek court enforcement so victims need not pursue expensive private litigation to attempt recovery.
Section 2 of the bill incorporates language from a previously considered House bill to allow school systems to purchase roofing improvements using suppliers identified through cooperative purchasing agreements. The presenter said that change would also make qualifying roof work eligible for capital outlay reimbursements for Low Wealth Schools and cited a Ware County roofing problem as an example of the issue the provision aims to address.
A representative asked whether the restitution provision would apply to banks or only to other actors; the presenter replied it applies to anyone subject to the Georgia Uniform Securities Act—businesses or individuals—who is found in violation and that an agency order could require repayment to victims.
The committee then moved and seconded a do-pass recommendation on SB 284 and voted by voice; the chair declared the motion carried.
The bill text makes the act effective on the governor’s signature, the presenter said, so that restitution orders could be issued promptly if the bill becomes law. The committee recorded no roll-call vote on the record in the transcript and no individual vote tallies were provided.
