TITLE 7.BANKING AND SECURITIES

Part 7. STATE SECURITIES BOARD

Chapter 101. GENERAL ADMINISTRATION

7 TAC §101.1

The State Securities Board adopts an amendment to §101.1, concerning authority, without changes to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2153).

This rule separates the responsibilities of the Agency's Board and the Securities Commissioner.

The amendment implements new §2-4 of the Texas Securities Act requiring the Board to develop and implement policies that clearly separate the policymaking responsibilities of the Board from the management responsibilities of the Securities Commissioner and the employees of the Board.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203207

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 305-8300


Chapter 107. TERMINOLOGY

7 TAC §107.2

The State Securities Board adopts an amendment to §107.2, concerning definitions, without changes to the proposed text as published in the December 14, 2001, issue of the Texas Register (26 TexReg 10195). A corresponding amendment to §109.13, concerning limited offering exemptions, was concurrently adopted.

The amendment places the defined terms in alphabetical order, conforms terminology to the Texas Securities Act, eliminates duplications, and expands a definition to include email.

The amendment provides for consistent terminology and updates a provision.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203208

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: December 14, 2001

For further information, please call: (512) 305-8300


Chapter 109. TRANSACTIONS EXEMPT FROM REGISTRATION

7 TAC §109.13

The State Securities Board adopts an amendment to §109.13, concerning limited offering exemptions without changes to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2154). This amendment coordinates with an amendment to §107.2, which was concurrently adopted.

Definitions are relocated to the specific provisions within the section to which they relate and coordinate with recent changes to the Texas Securities Act, §5.I(b).

The amendment uses terminology consistently; coordinates an exemption more closely with its federal counterpart; and defines terminology associated with the exemption so that it can be more easily located by persons utilizing the exemption.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Articles 581-28-1 and 581-5.T. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. Section 5.T provides that the Board may prescribe new exemptions by rule.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203209

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 305-8300


Chapter 115. SECURITIES DEALERS AND AGENTS

7 TAC §115.2

The State Securities Board adopts an amendment to §115.2, concerning application requirements, without changes to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2156).

A paper filing requirement is removed in light of the recently enacted Uniform Electronic Transactions Act and uniformity is furthered.

The amendment eliminates an unnecessary filing requirement.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203210

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 305-8300


Chapter 131. GUIDELINES FOR CONFIDENTIALITY OF INFORMATION

7 TAC §131.1

The State Securities Board adopts an amendment to §131.1, concerning general provisions relating to confidential information, with a change to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2156). A cross-reference to subsection (a) was added in subsection (b) when the rule was adopted. A related repeal of §131.2 was concurrently adopted.

Two sections are combined and the provisions conform to recent changes to the Texas Securities Act, §28.

The Commissioner can share confidential information with regulatory authorities and associations of governmental or regulatory authorities to assist in the detection and prevention of violations of the law and further administrative, civil, and criminal actions.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Articles 581-28-1 and 581-28.B. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. Section 28.B provides that the Board approve governmental and regulatory authorities and associations of governmental and regulatory authorities to which the Commissioner may disclose confidential information at the Commissioner's discretion.

§131.1.Information Sharing.

(a) Pursuant to the authority given to the State Securities Board under the Texas Securities Act, §28, the Board, recognizing the need for cooperative law enforcement among agencies responsible for prevention, detection, and prosecution of white collar crime, for the regulation and policing of persons who offer and sell securities, and for the regulation of offerings of securities, and recognizing the policies underlying §28, authorizes the Securities Commissioner in his or her discretion to supply any confidential information in the Commissioner's possession to any governmental or regulatory authority or association of governmental or regulatory authorities, or any receiver appointed under the Act, §25-1.

(b) Disclosure for limited purposes. Disclosure of the confidential information referred to in subsection (a) of this section will be made only for the purpose(s) of assisting in the detection or prevention of violations of law or to further administrative, civil, or criminal action.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203211

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 305-8300


7 TAC §131.2

The State Securities Board adopts the repeal of §131.2, concerning disclosure for limited purposes, without changes to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2157). A related amendment to §131.1 was concurrently adopted.

The repeal eliminates provisions that have been moved to another rule.

A duplicate provision was eliminated.

No comments were received regarding adoption of the repeal.

The repeal is adopted under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203212

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 305-8300


Chapter 139. EXEMPTIONS BY RULE OR ORDER

7 TAC §139.12

The State Securities Board adopts an amendment to §139.12, concerning oil and gas auction exemption, without changes to the proposed text as published in the March 22, 2002, issue of the Texas Register (27 TexReg 2158).

A cross-reference is updated and terminology conformed within.

Persons using the exemption can easily locate other relevant provisions in Texas law and terminology is used consistently.

No comments were received regarding adoption of the amendment.

The amendment is adopted under Texas Civil Statutes, Articles 581-28-1, 581-5.T, and 581-12.C. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. Section 5.T provides that the Board may prescribe new exemptions by rule. Section 12.C provides the Board with the authority to prescribe new dealer/agent registration exemptions by rule.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 23, 2002.

TRD-200203213

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Effective date: June 12, 2002

Proposal publication date: March 22, 2002

For further information, please call: (512) 305-8300