Part 7.
STATE SECURITIES BOARD
Chapter 101.
GENERAL ADMINISTRATION
7 TAC §§101.1, 101.5, 101.6
The State Securities Board proposes amendments to §§101.1,
101.5, and 101.6 concerning general administrative matters. Specifically,
grammatical errors in §101.1 would be corrected and §101.5 and §101.6
would be amended to correctly identify a successor agency and its rules. An
additional change to §101.5(b) would increase the certification fee charged
for copies from five to ten dollars. This brings the certification fee charged
by the agency in line with the equivalent fee charged by the Secretary of
State.
Micheal Northcutt, Director, Registration Division and Don Raschke, Chief
Financial Officer, have determined that for the first five-year period that §101.1
and §101.6 are in effect there will be no foreseeable implications for
state or local government as a result of enforcing or administering these
rules. Mr. Northcutt and Mr. Raschke have determined that there will be fiscal
implications as a result of enforcing or administering 101.5.
The effect on state government for the first five year period that amendment
to subsection (b) is in effect will be an increase in revenue for each of
those years at $180.
Mr. Northcutt and Mr. Raschke also have determined that for each year of
the first five years the rules are in effect the public benefit anticipated
as a result of enforcing the rules will be that persons requesting copies
will be apprised of the corresponding charges and that cross-references contained
in the Board's rules will be accurate. There will be no fiscal implications
for micro- or small businesses. There is no anticipated economic costs to
persons who are required to comply with rules as proposed except for the minimal
increase, described above, to be paid by persons requesting copies be certified.
There is no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should be submitted
in writing within 30/45 days after publication of the proposed sections in
the
Texas Register
. Comments should be sent
to David Weaver, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167,
or sent by facsimile to (512) 305-8310.
The amendments are proposed 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.
Statutes and codes affected: Texas Civil Statutes, Article 581-35.F.
§101.1.Authority.
(a)-(e)
(No change.)
(f)
Severability. If any provision of these sections be held
invalid, such invalidity shall not affect other provisions
that
[
§101.5.Charges for Copies of Public Records.
(a)
The cost to any person requesting copies of any public
record of the State Securities Board pursuant to the open records provisions
of the Texas Government Code, Title 5, Chapter 552, will be the applicable
charge established by the
Texas Building and Procurement
[
(b)
For certified copies the charge shall be $1.00 per page
plus a
$10.00
[
§101.6.Historically Underutilized Business Program. The
State Securities Board adopts by reference the rules established by
the
Texas Building and Procurement
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 19, 2003.
TRD-200301830
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 4, 2003
For further information, please call: (512) 305-8300
7 TAC §§104.1, 104.2, 104.4 - 104.6
The State Securities Board proposes nonsubstantive amendments
to §§104.1, 104.2, 104.4, 104.5, and 104.6, concerning the procedure
for review of applications. Specifically, an outdated qualifier would be eliminated
from §104.1; a statutory reference would be updated in §104.2; changes
in §104.6 would recognize the Central Registration Depository (CRD) and
the Investment Adviser Registration Depository (IARD); and changes would be
made in §104.4 and §104.5 to recognize an internal reorganization
creating a single Registration Division within the Agency.
Micheal Northcutt, Director, Registration Division, has determined that
for the first five-year period the rules are in effect there will be no foreseeable
fiscal implications for state or local government as a result of enforcing
or administering the rules.
Mr. Northcutt also has determined that for each year of the first five
years the rules are in effect the public benefit anticipated as a result of
enforcing the rules will be that the language will reflect current terminology
and practice and conform to other Board rules and the Texas Securities Act.
There will be no effect on micro- or small businesses. There is no anticipated
economic cost to persons who are required to comply with the rules as proposed.
There is no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should be submitted
in writing within 30/45 days after publication of the proposed sections in
the
Texas Register
. Comments should be sent
to David Weaver, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167,
or sent by facsimile to (512) 305-8310.
The amendments are proposed 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.
The proposed amendments affect Texas Civil Statutes, Articles 581-7, 581-10,
581-13, and 581-15, and Texas Government Code, §2005.003.
§104.1.Scope.
These rules of procedure are generally applicable to the review of
applications and the agency's decision whether to grant, deny, or allow withdrawal
of applications. [
§104.2.Purpose.
These sections are intended to implement the provisions of
Texas
Government Code, Chapter 2005
[
§104.4.[
(a)
Within seven days of receipt by the Agency of an application
to register securities, if the application does not contain all required information,
the [
(b)
Within 45 days of receipt by the Agency of all requested
items and exhibits necessary in order to analyze the offering, the [
(c)
Upon request of the applicant, comments may be transmitted
at the applicant's expense by telephone,
facsimile
[
(d)-(e)
(No change.)
(f)
Within 14 days of the division staff's recommendation the
application shall be reviewed by the Director (or Assistant Director) of the
[
(g)
The final decision to grant, deny, or allow withdrawal
of the application must be made and communicated to the applicant within 14
days of the latter of:
(1)
the division staff's recommendation
,
[
(2)
the receipt by the Agency of complete responses
to any additional comments raised pursuant to subsection (f) of this section.
§104.5.[
(a)
Within 14 days of receipt by the Agency of an application
and a fee that is sufficient for registration as a dealer
or investment
adviser
, the [
(1)-(2)
(No change.)
(b)
Within 14 days of receipt by the Agency of all requested
items and exhibits, the division staff shall review the file and, if necessary,
shall send by United States mail at the Agency's expense a comment letter
setting forth any deviations from the substantive requirements of the Texas
Securities Act or Board rules relating to the registration of dealers
or investment advisers
. This process may be repeated to raise subsequent
comments.
(c)-(d)
(No change.)
(e)
Within 14 days of the division staff's recommendation,
any remaining issues shall be addressed by the director of the [
(f)
The final decision to grant, deny, or allow withdrawal
of the application must be made and communicated to the applicant within 14
days of the latter of:
(1)
the division's recommendation
,
[
(2)
receipt by the Agency of complete responses
to any remaining comments.
§104.6.Exceeding the Time Periods.
(a)
The Agency may exceed the time periods set forth in these
sections if:
(1)
(No change.)
(2)
the Securities and Exchange Commission
, CRD, IARD,
or another public or private entity, including the applicant itself,
causes the delay;
(3)-(4)
(No change.)
(b)-(f)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 19, 2003.
TRD-200301831
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 4, 2003
For further information, please call: (512) 305-8300
7 TAC §113.4
The State Securities Board proposes an amendment to §113.4,
concerning consent to service of process. The amendment would eliminate the
requirement that a resolution be filed with the consent of service in connection
with an application to register securities. Changes made to the Texas Securities
Act, §8, in the last legislative session eliminated this requirement
from the statute.
Micheal Northcutt, Director, Registration Division, has determined that
for the first five-year period the rule is in effect there will be no foreseeable
fiscal implications for state or local government as a result of enforcing
or administering the rule.
Mr. Northcutt also has determined that for each year of the first five
years the rule is in effect the public benefit anticipated as a result of
enforcing the rule will be to eliminate an unnecessary filing. There will
be no effect on micro- or small businesses. There is no anticipated economic
cost to persons who are required to comply with the rule as proposed. There
is no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should be submitted
in writing within 30/45 days after publication of the proposed section in
the
Texas Register
. Comments should be sent
to David Weaver, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167,
or sent by facsimile to (512) 305-8310.
The amendment is proposed under Texas Civil Statutes, Articles
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.
The proposed amendment affects Texas Civil Statutes, Article 581-7.
§113.4.Application for Registration.
(a)-(b)
(No change.)
(c)
Consents to service of process.
(1)
Except as provided in paragraphs (2) and (3) of this subsection,
all applications to register securities issued by an issuer which is organized
under the laws of any other state, territory, or government, or domiciled
in any state other than Texas, must include with the application a written
consent to service of process duly executed by an authorized agent of the
issuer [
(2)-(3)
(No change.)
(d)-(e)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 19, 2003.
TRD-200301832
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 4, 2003
For further information, please call: (512) 305-8300
7 TAC §114.3
The State Securities Board proposes an amendment to §114.3,
concerning consents to service of process. The amendment would eliminate the
requirement that a resolution be filed with the consent of service in connection
with a notice filing for federal covered securities. Changes made to the Texas
Securities Act, §8, in the last legislative session eliminated this requirement
from the statute.
Micheal Northcutt, Director, Registration Division, has determined that
for the first five-year period the rule is in effect there will be no foreseeable
fiscal implications for state or local government as a result of enforcing
or administering the rule.
Mr. Northcutt also has determined that for each year of the first five
years the rule is in effect the public benefit anticipated as a result of
enforcing the rule will be to eliminate an unnecessary filing. There will
be no effect on micro- or small businesses. There is no anticipated economic
cost to persons who are required to comply with the rule as proposed. There
is no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should be submitted
in writing within 30/45 days after publication of the proposed section in
the
Texas Register
. Comments should be sent
to David Weaver, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167,
or sent by facsimile to (512) 305-8310.
The amendment is proposed 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.
The proposed amendment Texas Civil Statutes, Articles 581-5, 581-6, and
581-7.
§114.3.Consents to Service of Process.
(a)
Unless otherwise provided in
subsection (b) of
this
section, a consent to service of process is required from an issuer of federal
covered securities that is organized under the laws of any other state, territory,
or government, or domiciled in any state other than Texas. The written consent
to service of process must be duly executed by an authorized agent of the
issuer [
(b)-(c)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on March 19, 2003.
TRD-200301833
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 4, 2003
For further information, please call: (512) 305-8300
7 TAC §133.8
(Editor's note: The text of the following section proposed for
repeal will not be published. The section may be examined in the offices of
the State Securities Board or in the Texas Register office, Room 245, James
Earl Rudder Building, 1019 Brazos Street, Austin.)
The State Securities Board proposes the repeal of §133.8,
a form concerning power of attorney. The repeal of this form will allow for
the simultaneous adoption of a new §133.8 Power of Attorney form, which
is being concurrently proposed.
Micheal Northcutt, Director, Registration Division, has determined that
for the first five-year period the repeal is in effect there will be no foreseeable
fiscal implications for state or local government as a result of enforcing
or administering the repeal.
Mr. Northcutt also has determined that for each year of the first five
years the repeal is in effect the public benefit anticipated as a result of
enforcing the repeal will be the elimination of an outdated form. There will
be no effect on micro- or small businesses. There is no anticipated economic
cost to persons who are required to comply with the repeal as proposed. There
is no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should be submitted
in writing within 30/45 days after publication of the proposed section in
the
Texas Register
. Comments should be sent
to David Weaver, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167,
or sent by facsimile to (512) 305-8310.
The repeal is proposed 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.
Statutes and codes affected: none applicable.
§133.8.Power of Attorney.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on March 19, 2003.
TRD-200301834
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 4, 2003
For further information, please call: (512) 305-8300
which
] can be given effect without the invalid provision, and to this
end the provisions of these sections are declared to be severable.
General Services
] Commission
in Title 1, Part 5, Chapter 111, Subchapter
C, of the Texas Administrative Code, which is
[
as
] reflected
in Form 133.2.
$5.00
] certification fee.
General Services
]
Commission relating to the Historically Underutilized Business Program, contained
in Title 1, Part 5, Chapter 111, Subchapter B, of the Texas Administrative
Code.
Chapter 104.
PROCEDURE FOR REVIEW OF APPLICATIONS
The sections apply only to applications covered by
such rules that are first received by the agency on or after January 1, 1988.
]
House Bill 5, 70th Legislature,
1987
]. They are not intended to supersede any substantive requirement
of the Texas Securities Act or Board rules. If a provision under one of these
sections would cause such a conflict, the provision will not be given effect
under the particular circumstances giving rise to the conflict.
Securities ] Registration of Securities --Review of Applications.
Securities
] Registration Division will send by United States
mail at the Agency's expense a deficiency letter to the applicant setting
forth a list of items or exhibits
that
[
which
] have
not been filed and
that
[
which
], pursuant to requirements
of the Texas Securities Act or Board rules, must be filed with the Agency.
Securities
] Registration Division shall review the application and shall
send by United States mail at the Agency's expense an initial comment letter
setting forth deviations from the substantive requirements of the Act or Board
rules relating to the registration of securities. This process may be repeated
if the applicant suggests that alternatives be considered, or the applicant's
response does not resolve substantive issues.
graphic
scanning
], or other more timely means of communication.
Securities
] Registration Division and the Deputy Commissioner
and/or Securities Commissioner. Additional comments, if any, raised at these
stages of review must be communicated to the applicant immediately.
;
] or
Dealer ] Registration of Dealers and Investment Advisers --Review of Applications.
Dealer
] Registration Division shall send by
United States mail at the Agency's expense, a deficiency letter to the applicant
setting forth a list of items or exhibits
that
[
which
]
either have not been filed or that contain errors or omissions. If the applicant
is filing through the Central Registration Depository
(CRD) or the Investment
Adviser Registration Depository (IARD)
, deficiency corrections of a
procedural, non-disciplinary nature will be handled by the
CRD or IARD
[
central registration depository
].
Dealer
] Registration Division. Additional comments, if any, raised at this
stage of review must be communicated to the applicant immediately.
;
] or
Chapter 113.
REGISTRATION OF SECURITIES
, under proper resolution or authority of the appropriate governing
body,
] appointing the Securities Commissioner irrevocably its true and
lawful attorney upon whom process in any action or proceeding against such
issuer arising out of any transaction subject to the Texas Securities Act
may be served with the same effect as if such issuer were organized or created
under the laws of Texas and had been lawfully served with process herein.
Chapter 114.
FEDERAL COVERED SECURITIES
, under proper resolution or authority of the appropriate governing
body,
] and irrevocably appoint the Securities Commissioner as the issuer's
true and lawful attorney upon whom all process may be served in any action
or proceeding against such issuer arising out of any transaction subject to
the Texas Securities Act with the same effect as if such issuer were organized
or created under the laws of Texas and had been lawfully served with process
therein.
Chapter 133.
FORMS