|(a) Definitions. The following words and terms, when
used in this section, shall have the following meanings unless the
context clearly indicates otherwise.
(1) Charitable organization--A 501(c)(3) nonprofit
organization located in Texas that provides services to economically
disadvantaged individuals and families.
(2) Client--An individual receiving services from a
financial coach or counselor of a charitable organization relating
to a Texas qualified tuition program plan.
(3) Economically disadvantaged--Eligible for services
based on criteria established by a charitable organization using the
poverty guidelines updated periodically in the Federal
Register by the U.S. Department of Health and Human Services
under the authority of 42 U.S.C. 9902(2).
(4) Financial coach or counselor--An individual acting
on behalf of a charitable organization in counseling or providing
services to economically disadvantaged clients of the charitable organization.
(5) Texas qualified tuition program plan--A fund or
plan established under the Texas Education Code, Chapter 54, Subchapter
G, H, or I, as amended.
(b) Exemption from dealer, agent, investment adviser,
and investment adviser representative registration. The State Securities
Board, pursuant to the Texas Securities Act, §12.C, exempts a
charitable organization and its financial coaches and counselors from
the dealer, agent, investment adviser, and investment adviser representative
registration requirements of the Texas Securities Act, when their
securities-related activities are limited to:
(1) assisting economically disadvantaged clients with
completing documentation necessary to enroll or make a contribution
to a Texas qualified tuition program plan; and
(2) providing materials relating to a Texas qualified
tuition program plan that have been prepared on behalf of or approved
by the plan manager or administrator of a Texas qualified tuition
program plan, Texas Prepaid Higher Education Tuition Board, Office
of the Comptroller of Public Accounts, Texas State Securities Board,
Texas Match the Promise Foundation, or a tax-exempt charitable organization
established by law to implement the Texas Save and Match Program.
(c) Prohibited activities. A charitable organization
and its financial coaches and counselors are prohibited from the following
activities in connection with a client's enrollment in or contribution
to a Texas qualified tuition program plan:
(1) selecting or recommending a particular investment
(2) receiving a commission or other remuneration.