7 TAC §139.16
(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repeal will not be published.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 Texas State Securities Board proposes the repeal
of §139.16, concerning sales to individual accredited investors. Subsequent
to the Board's adoption of §139.16 in 1995, the North American Securities
Administrators Association (NASAA) developed a Model Accredited Investor Exemption.
The NASAA model exemption was adopted by the Board in 1997 as §139.19
and, to date, 27 other jurisdictions have adopted the NASAA model rule. The
exemption provided by §139.16 and §139.19 apply to the same types
of transactions and have substantially similar terms.
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 exemption that is no longer
needed in light of the Board's adoption of the NASAA model rule. 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 days after publication of the proposed repeal 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.
Statutory authority: 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.
Cross-reference to Statute: Texas Civil Statutes, Article 581-5.
Statutes and codes affected: Texas Civil Statutes, Article 581-7.
§139.16.Sales to Individual Accredited Investors.
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 April 7, 2004.
TRD-200402368
Denise Voigt Crawford
Securities Commissioner
State Securities Board
Earliest possible date of adoption: May 23, 2004
For further information, please call: (512) 305-8300