TITLE 7. BANKING AND SECURITIES
PART 7. STATE SECURITIES BOARD
CHAPTER 101. GENERAL ADMINISTRATION
7 TAC §101.2
The Texas State Securities Board adopts an amendment to §101.2, concerning Classification of Regulatory Standards, without changes to the proposed text as published in the April 7, 2023, issue of the Texas Register (48 TexReg 1793). The amended rule will not be republished.
Subsection (e) is amended to conform terminology to the Texas Securities Act and existing rules, and the statutory reference in subsection (f) is updated to refer to the codified version of the Act, which became effective January 1, 2022. Subsection (f) is also reorganized, and language concerning a fee that is duplicative of a section in the Act is replaced with a reference to the statutory provision setting the amount of the fee.
The rule is current and accurate, and it conforms to §4006.058 of the Act, which promotes transparency and efficient regulation.
No comments were received regarding adoption of the amendment.
The amendment is adopted under the authority of the Texas Government Code, Section 4002.151. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.
The adopted amendment affects Texas Government Code §4006.058.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 16, 2023.
TRD-202302179
Travis J. Iles
Securities Commissioner
State Securities Board
Effective date: July 6, 2023
Proposal publication date: April 7, 2023
For further information, please call: (512) 305-8303
7 TAC §103.6
The Texas State Securities Board adopts an amendment to §103.6, concerning Negotiated Rulemaking, without changes to the proposed text as published in the April 7, 2023, issue of the Texas Register (48 TexReg 1794). The amended rule will not be republished.
A typographical error in the rule has been corrected.
The rule will be clear and accurate.
No comments were received regarding adoption of the amendment.
STATUTORY AUTHORITY
The amendment is adopted under the authority of the Texas Government Code, Sections 4002.151 and 4002.1535. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. Section 4002.1535 requires the Board to develop a policy to encourage the use of negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of Board rules; and appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the Board's jurisdiction.
The adopted amendment affects Chapter 2008 of the Texas Government Code and the Texas Securities Act, Texas Government Code Sections 4001.001-4008.105.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 16, 2023.
TRD-202302180
Travis J. Iles
Securities Commissioner
State Securities Board
Effective date: July 6, 2023
Proposal publication date: April 7, 2023
For further information, please call: (512) 305-8303
7 TAC §§104.2, 104.3, 104.6
The Texas State Securities Board adopts amendments to §104.2, concerning Purpose; §104.3, concerning Definition of Days; and §104.6, concerning Exceeding the Time Periods, with changes to the proposed text as published in the April 7, 2023, issue of the Texas Register (48 TexReg 1794). The amendments will be republished.
The changes made consist of the addition of a parenthetical in each rule after each cross-reference to multiple sections to include the names of the sections being referenced. These nonsubstantive changes to the rule text were made at the request of the Texas Register editors when the notice of the rule adoptions were submitted for publication.
Sections 104.2, 104.3, and 104.6 of this title are amended to more accurately refer to the relevant sections in the Chapter, and the reference to a section of the Texas Securities Act in subsection (f) of 104.6 is updated to refer to the codified version of the Texas Securities Act in the Texas Government Code, which became effective January 1, 2022.
References to other rules in the Chapter are clarified and a statutory reference conforms to the codified version of the Act which promotes transparency and efficient regulation.
No comments were received regarding adoption of the amendments.
The amendments are adopted under the authority of the Texas Government Code, Section 4002.151. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.
The adopted amendments affect Texas Government Code §2005.003, and the following sections of the Texas Securities Act: Texas Government Code §4002.154; Chapter 4003, Subchapters A, B, and C; and Chapter 4004, Subchapters A-G.
§104.2.Purpose.
Sections 104.2 - 104.6 of this title (relating to Purpose, Definition of Days, Registration of Securities--Review of Applications, Registration of Dealers and Investment Advisers--Review of Applications, and Exceeding the Time Periods, respectively) are intended to implement the provisions of Texas Government Code, Chapter 2005. 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.
§104.3.Definition of Days.
For purposes of §§104.2 - 104.6 of this title (relating to Purpose, Definition of Days, Registration of Securities--Review of Applications, Registration of Dealers and Investment Advisers--Review of Applications, and Exceeding the Time Periods, respectively) "days" means each calendar day without any exclusions.
§104.6.Exceeding the Time Periods.
(a) The Agency may exceed the time periods set forth in §104.4 or §104.5 of this title (relating to Registration of Securities--Review of Applications and Registration of Dealers and Investment Advisers--Review of Applications, respectively) if:
(1) the number of permits and registration authorizations exceeds by 15% or more the number processed in the same calendar quarter of the preceding year;
(2) the Securities and Exchange Commission, CRD, IARD, or another public or private entity, including the applicant itself, causes the delay;
(3) the applicant requests delay; or
(4) other conditions exist that give the Agency good cause for exceeding the established time periods.
(b) If it appears to the applicant that for reasons other than those set forth in subsection (a)(2) of this section, the Agency exceeded the time periods, the applicant may appeal by filing a complaint in writing with the Deputy Commissioner who shall provide the staff with a copy of the complaint immediately.
(c) If the Agency's staff believes that the time periods were not exceeded for the reasons alleged in the complaint, the staff may file with the deputy commissioner a written response to the complaint within five days of receipt by the Agency of the complaint.
(d) The deputy commissioner shall render a decision and communicate it to the applicant within 10 days of receipt of the applicant's complaint, whether or not a response is filed by the staff.
(e) If the complaint is decided in favor of the applicant, the applicant shall receive full reimbursement of all filing fees paid by the applicant.
(f) If the complaint is decided in favor of the staff, the applicant may appeal the decision by requesting a hearing before the Commissioner pursuant to the Texas Securities Act, §4007.107(a).
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on June 16, 2023.
TRD-202302181
Travis J. Iles
Securities Commissioner
State Securities Board
Effective date: July 6, 2023
Proposal publication date: April 7, 2023