Texas Register Flag

Open Meeting Archive

Agency Name:State Securities Board
Date of Meeting:10/22/2019
Time of Meeting:10:00 AM
Board:State Securities Board
Street Location:208 E. 10th Street, Room 320
City Location:AUSTIN
State Location:TX
Status:Active
Date of Submission:10/08/2019
Additional Information Obtained From:Travis J. Iles, Securities Commissioner 208 E. 10th Street Austin Texas 78701 (512) 305-8301
Emergency Mtg:N
Agenda:1. Minutes of August 1, 2019, Board Meeting; consider excused absences, if any.

2. Rulemaking - Consideration of published rule proposals for adoption.

A. Sunset review implementation.
1. Recommendations 1.3 - Branch offices.
a. Amending 115.1(b), concerning general provisions; 115.2(c), concerning application requirements, and 115.4(a), concerning evidences of registration; to remove the registration requirement for branch offices and replace it with a notification.
b. Amending 116.1(b), concerning general provisions; 116.2(c), concerning application requirements; and 116.4(a), concerning evidences of registration; to remove the registration requirement for branch offices and replace it with a notification requirement.
2. Recommendation 1.8 - Online submission of applications and fees.
a. New 115.22, concerning electronic submission of applications and fees, to provide dealer and agent applicants with the option to submit certain documents and fees electronically.
b. New 116.22, concerning electronic submission of applications and fees, to provide investment adviser and investment adviser representative applicants with the option to submit certain documents and fees electronically.
3. Recommendation 1.9 - Notarization.
a. Amending 109.13(l)(9)(A), concerning limited offering exemptions, to remove the requirement that Form 133.29 be sworn.
b. Amending 114.4(a), (b), and (f), concerning filings and fees, to remove the requirement that these notice filings be verified under oath.
c. Amending 115.2(a)(4), concerning application requirements, to permit a dealer applicant's principal financial officer to certify that the balance sheet submitted with the dealer's application is true and correct.
d. Amending 116.2(a)(2)(B), concerning application requirements, to permit an investment adviser applicant's principal financial officer to certify that the balance sheet submitted with the adviser's application is true and correct.
e. New Forms to be signed under penalty of perjury and certified as true and correct, rather than notarized:
Form 133.5, Secondary Exemption Trading Notice;
Form 133.6, Secondary Trading Exemption Renewal Notice;
Form 133.8, Consent to Service;
Form 133.12, Renewal Application for Mutual Funds and Other Continuous Offerings;
Form 133.13, Application for Renewal Permit;
Form 133.16, Texas Crowdfunding Portal Withdrawal of Registration;
Form 133.18, Certification of Balance Sheet by Principal Financial Officer;
Form 133.26, Request for Determination of Money Market Fund Status for Federal Covered Securities;
Form 133.29, Intrastate Exemption Notice;
Form 133.30, Information Concerning Projected Market Prices and Related Market Information;
Form 133.34, Undertaking Regarding Non-Issuer Sales;
Form 133.35, Application for Designation as Matching Service Under 109.15;
Form 133.36, Request for Reduced Fees for Certain Persons Registered in Multiple Capacities.
Additionally, the title for Form 133.8 would also be changed to reflect that it operates as a consent to service, required by Section 8 of the Texas Securities Act.
f. Repeal current forms that are being replaced:
Form 133.5, Secondary Exemption Trading Notice;
Form 133.6, Secondary Trading Exemption Renewal Notice;
Form 133.8, Power of Attorney;
Form 133.12, Renewal Application for Mutual Funds and Other Continuous Offerings;
Form 133.13, Application for Renewal Permit;
Form 133.16, Texas Crowdfunding Portal Withdrawal of Registration;
Form 133.18, Certification of Balance Sheet by Principal Financial Officer;
Form 133.26, Request for Determination of Money Market Fund Status for Federal Covered Securities;
Form 133.29, Intrastate Exemption Notice;
Form 133.30, Information Concerning Projected Market Prices and Related Market Information;
Form 133.34, Undertaking Regarding Non-Issuer Sales;
Form 133.35, Application for Designation as Matching Service Under 109.15;
Form 133.36, Request for Reduced Fees for Certain Persons Registered in Multiple Capacities.
4. Recommendation 2.2 - Across-the-Board recommendation - Negotiated Rulemaking.
New 103.6. Negotiated Rulemaking.

B. Updates in connection with rule review.
1. Chapter 113:
Amending 113.1, concerning qualification of securities, to delete the reference to SEC Regulation B, which has been repealed. Amending 113.4(c), concerning application for registration, to eliminate paragraph (3) relating to the Securities Registration Depository ("SRD") System and remove a cross-reference to the eliminated paragraph. Amending 113.11(b)(1), concerning shelf registration of securities, to remove the reference to SEC Form S-2, which the SEC no longer uses.
2. Chapter 114:
a. Chapter 114:
Amending 114.3, concerning consents to service of process, to remove subsection (c) relating to the SRD System.
Amending 114.4(a) and (b), concerning filings and fees, to permit unit investment trusts to file Form NF electronically through the EFD System, and to add a new paragraph (b)(5) to specifically address federal covered securities offered pursuant to SEC Regulation A, Tier II ("Regulation A+").
b. Amending 133.33, concerning uniform forms accepted, required, or recommended, to add the Regulation A - Tier 2 form to the list of uniform forms accepted.

C. Rulemaking implementing other/non-Sunset changes by the 2019 Legislature.
1. Occupations Code, Chapter 55 - military spouses (Senate Bill 1200).
a. Amending 115.18 concerning special provisions relating to military applicants, to implement SB 1200 relating to military spouses.
b. Amending 116.18, concerning special provisions relating to military applicants, to implement SB 1200 relating to military spouses.
c. New Forms 133.22, Waiver or Refund Request by a Military Spouse for a Renewal Fee, and 133.23, Request for Recognition of Out-Of-State License or Registration by a Military Spouse.
2. Occupations Code, Chapter 53 - consideration of criminal convictions of applicants for registration and registrants (House Bill 1342).
a. Amending 115.6, concerning registration of persons with criminal backgrounds, to implement HB 1342.
b. Amending 116.6, concerning registration of persons with criminal backgrounds, to implement HB 1342.
c. Amending 104.7, concerning preliminary consideration of license eligibility, to implement HB 1342.

3. Rulemaking - Consideration of new rule proposals for publication and comment.
A. Sunset review implementation.
1. Recommendation 1.1 - Prosecutorial Assistance.
New 127.4. Prosecutorial Assistance.
2. Recommendation 1.5 - Complaint Process.
New Chapter 102. Complaint Process.
102.1, Policy.
102.2. Definitions.
102.3. Filing Complaints.
102.4. Processing Complaints.
102.5. Prioritization of Complaint Investigations.
102.6. Complaint Resolution.
3. Recommendation 2.2 - Across-the-Board recommendation - Alternative Dispute Resolution.
New 127.2. Alternative Dispute Resolution.
B. Cybersecurity breach notification.
1. New 115.23, Cybersecurity Breach Notification.
2. New 116.23, Cybersecurity Breach Notification.

4. Rule review - Pursuant to the notice published September 6, 2019:
A. Chapter 109. Transactions Exempt from Registration.
B. Chapter 111. Securities Exempt from Registration.
C. Chapter 139. Exemptions by Rule or Order.

5. Board acceptance of a grant and preapproval of a grant from the Investor Protection Trust for investor education purposes.

6. Review of the internal audit report for FY 2019; recommendation from the Board's Audit Committee related to the selection of an internal auditor for the FY 2020 audit, possibly followed by a vote selecting the internal auditor for FY 2020.

7. Review of Section 35.A fees; possible action to set Section 35.A fees.

8. Report on budget and performance.

9. Update on Agency operations.

10. Consider and possibly adopt a resolution honoring Beth Ann Blackwood, former chair and member of the State Securities Board.



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:2019005981
Datestamp:10/08/2019 02:01 PM
Archive Date:10/24/2019


link to Texas Secretary of State Home page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page