January 31, 2014



7 TAC §113.14

The Texas State Securities Board proposes an amendment to §113.14, concerning Statements of Policy. The amendment would adopt by reference certain updated North American Securities Administrators Association ("NASAA") statements of policy ("SOPs") that were amended on May 6, 2012. These SOPs include cross-reference sheets and the 2012 amendment revised the cross-reference sheets to correspond to earlier changes in the SOPs.

Patricia Loutherback, 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.

Ms. Loutherback 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 that review of applications to register securities will be facilitated by having the cross-reference sheets correspond to the uniform SOPs used in this and other states. There will be no effect on micro- or small businesses. Since the rule will have no adverse economic effect on micro- or small businesses, preparation of an economic impact statement and a regulatory flexibility analysis is not required. 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 days after publication of the proposed amendment in the Texas Register. Comments should be sent to Marlene K. Sparkman, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167 or sent by facsimile to (512) 305-8336.

The amendment 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.

The proposal affects Texas Civil Statutes, Article 581-7.

§113.14.Statements of Policy.

(a) (No change.)

(b) In order to promote uniform regulation, the following NASAA Statements of Policy shall apply to the registration of securities:

(1) - (13) (No change.)

(14) Oil and Gas Programs, as amended by NASAA on May 6, 2012 [7, 2007];

(15) Asset-backed Securities, as amended by NASAA on May 6, 2012 [7, 2007];

(16) Equipment Programs, as amended by NASAA on May 6, 2012 [7, 2007];

(17) - (19) (No change.)

(20) Registration of Commodity Pool Programs, as amended by NASAA on May 6, 2012 [7, 2007].

(c) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 16, 2014.


John Morgan

Securities Commissioner

State Securities Board

Earliest possible date of adoption: March 2, 2014

For further information, please call: (512) 305-8303