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Open Meeting Archive

Agency Name:State Securities Board
Date of Meeting:11/13/2018
Time of Meeting:10:00 AM
Board:State Securities Board
Street Location:208 East 10th Street, Room 320
City Location:Austin
State Location:TX
Date of Submission:10/30/2018
Additional Information Obtained From:Travis J. Iles, Securities Commissioner 208 E. 10th Street Austin, TX 78701 (512) 305-8301
Emergency Mtg:N
Agenda:1. Minutes of May 16, 2018, Board Meeting; consider excused absences, if any.

2. Rules.

A. Published rule proposals.

1. SEC Regulation D updates.
a. Amending 109.13(k), concerning limited offering exemptions, to limit its applicability to SEC Rule 506 offerings and to remove the portions applicable solely to SEC Rule 505 offerings in light of the SEC's repeal of Rule 505.
b. Amending 114.4(b) and (d), concerning filings and fees, to update a cross-reference and reflect that the EFD System is operational.
c. Amending 133.33(c), concerning uniform forms accepted, required, or recommended, to update a cross-reference and form name.

2. FINRA examination restructuring and restricted registration categories.
a. Amending 115.1, concerning general provisions, to update the definition of "crowdfunding portal," update a cross-reference to a federal statute, and to better align the restricted registration categories with the specialized knowledge examinations administered by FINRA.
b. Amending 115.3(a) and (b), concerning examination, to reflect changes in FINRA examinations and better coordinate the required examinations, especially the specialized knowledge ones, with those administered by FINRA.

3. Amending 113.5(c), concerning financial statements, to add the new crowdfunding rule (139.26) to the list of types of prior securities offerings that would not disqualify an issuer from being eligible to file reviewed financial statements in a later registered offering.

B. New Rule Proposals.

1. Intrastate crowdfunding.
a. Repeal of 139.25, Intrastate Crowdfunding Exemption.
b. Repeal of Form 133.17, Crowdfunding Exemption Notice, used to claim the exemption in 139.25.

2. Amending 113.14(b), concerning statements of policy, to update the rule to reflect recent revisions to the NASAA Statements of Policy for Corporate Securities Definitions; Loans and Other Material Transactions; Underwriting Expenses, Underwriter's Warrants, Selling Expenses and Selling Security Holders; and Unsound Financial Condition; and to correct the placement of an apostrophe.

3. Updates in connection with rule review.
a. Amending 101.6, concerning the historically underutilized business program, to update the cross-reference to the Comptroller's rules.
b. Amending 103.5, concerning petitions, to include a reference to the Texas Government Code and to collect information on the economic, fiscal, employment, and cost impact of the proposal, to the extent that such information is available to the petitioner.
c. Amending 104.5, concerning registration of dealers and investment advisers-review of applications, to update the procedures to adjust for the recent reorganization of the Registration Division and to more closely mirror the review process in 104.4.

C. Rule review pursuant to the notice published September 7, 2018:

1. Chapter 101. General Administration.

2. Chapter 103. Rulemaking Procedure.

3. Chapter 104. Procedure for Review of Applications.

3. Board preapproval of a grant and approval of two grants from the Investor Protection Trust for investor education purposes.

4. Review of the Agency's Internal Audit Report for FY 2018; recommendation from the Board's Audit Committee relating to the selection of internal auditor for the FY 2019 audit, possibly followed by a vote selecting the internal auditor for FY 2019.

5. Discussion of the Sunset Advisory Commission Staff Report on the State Securities Board; vote on recommendations.

6. Legislative and appropriations update.

7. Report on budget and performance.

8. Update on Agency operations.

9. Consider and possibly adopt a resolution honoring Letha L. Sparks, recently-retired Financial Examiner.

10. Executive session to conduct a performance review of the Securities Commissioner.

11. Possible action on matters discussed in Executive Session.

Persons with disabilities who plan to attend this meeting and require auxiliary aids or services should contact Sonia Fergerson at (512) 305-8306 at least five business days prior to the meeting so that appropriate arrangements can be made.
TRD ID:2018008936
Datestamp:10/30/2018 11:08 AM
Archive Date:11/15/2018

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