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RULES AND REGULATIONSOF THETEXAS STATE SECURITIES BOARDSTATE SECURITIES BOARDBeth Ann Blackwood — Chair — Dallas, TexasE. Wally Kinney — Member — Dripping Springs, TexasDavid A. Appleby — Member — El Paso, TexasAlan Waldrop — Member — Austin, TexasMiguel Romano, Jr. — Member — Austin, TexasOFFICES OF THE STATE SECURITIES BOARD208 E. 10th Street, 5th Floor, Austin, Texas 78701-2407 (Visitors)208 East 10th Street, Room 610, Austin, Texas 78701-2407 (Deliveries: FedEx, UPS, etc.)P.O. Box 13167, Austin, Texas 78711-3167 (USPS Mail)Phone: (512) 305-8300FAX: (512) 305-8310 (Registration), (512) 305-8340 (Inspections and Compliance),(512) 305-8398 (Enforcement), (512) 305-8327 (Investor Education),(512) 305-8327 (Staff Services)606 N. Carancahua, Suite 803, Corpus Christi, Texas 78401-0659Phone: (361) 887-1085 FAX: (361) 884-78208700 North Stemmons Freeway, Suite 144, Dallas, Texas 75247-3714Phone: (214) 630-8681 FAX: (214) 630-86991919 N. Loop West, Suite 300, Houston, Texas 77008-1366Phone: (713) 426-0336 FAX: (713) 426-69654630 50th Street, Suite 614, Lubbock, Texas 79414-3520Phone: (806) 762-8010 FAX: (806) 762-6648Agency Web Page: ssb.texas.govT-1Contents Revised 12-23-2018
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TEXAS ADMINISTRATIVE CODETITLE 7BANKING AND SECURITIESPART 7STATE SECURITIES BOARDCHAPTER 101. GENERAL ADMINISTRATION.§101.1. Authority.§101.2. Classification of Regulatory Standards§101.3. Application.§101.4. Open Records Requests.§101.5. Charges for Copies of Public Records.§101.6. Historically Underutilized Business Program.CHAPTER 103. RULEMAKING PROCEDURE.§103.1. How Initiated.§103.2. Notice.§103.3. Opportunity To Be Heard.§103.4. Compliance.§103.5. Petitions.CHAPTER 104. PROCEDURE FOR REVIEW OF APPLICATIONS.§104.1. Scope.§104.2. Purpose.§104.3. Definition of Days.§104.4. Registration of Securities--Review of Applications.§104.5. Registration of Dealers and Investment Advisers--Review of Applications.§104.6. Exceeding the Time Periods.§104.7. Preliminary Evaluation of License Eligibility.CHAPTER 105. RULES OF PRACTICE IN CONTESTED CASES.§105.1. Scope.§105.2. Definitions.§105.3. Computation of Time.§105.4. Opportunity for Hearing.§105.5. Contents of Notice of Hearing.§105.6. Service.§105.7. Written Response to Notice of Hearing.§105.8. Copies to Securities Commissioner’s Representative.§105.9. Informal Disposition.§105.10. Default.§105.11. Burden of Proof.§105.12. Subpoenas and Depositions.§105.13. Assessment of Hearing Costs.§105.14. Proposal for Decision.§105.15. Orders Issued by Securities Commissioner.§105.16. Decisions; When Final.§105.17. Motion for Rehearing.§105.18. Board Action on Motion for Rehearing.TOC-1Contents Revised 06-12-2018
§105.19. Record.§105.20. Ex Parte Communications.CHAPTER 106. GUIDELINES FOR THE ASSESSMENT OF ADMINISTRATIVE FINES.§106.1. Guidelines for the Assessment of Administrative Fines.CHAPTER 107. TERMINOLOGY.§107.1. General.§107.2. Definitions.CHAPTER 109. TRANSACTIONS EXEMPT FROM REGISTRATION.§109.1. Transactions Involving Existing Security Holders.§109.2. Parent Subsidiary Transactions.§109.3. Financial Institutions under the Texas Securities Act, §5.H.§109.4. Securities Registration Exemption for Sales to Financial Institutions and Certain InstitutionalInvestors.§109.5. Dealer Registration Exemption for Sales to Financial Institutions and Certain Institutional Investors.§109.6. Investment Adviser Registration Exemption for Investment Advice to Financial Institutions andCertain Institutional Investors.§109.7. Secondary Trading Exemption under the Texas Securities Act, Section 5.O.§109.8. Initial Offering Completed.§109.9. Reserved for Expansion.§109.10. Reserved for Expansion.§109.11. Guarantee of Options.§109.12. Stock Dividends.§109.13. Limited Offering Exemptions.§109.14. Oil, Gas, and Other Mineral Interests.§109.15. Designated Matching Services.§109.16. Reserved for Expansion.§109.17. Banks under the Securities Act, §5.L.CHAPTER 111. SECURITIES EXEMPT FROM REGISTRATION.§111.1. Reserved for Expansion.§111.2. Listed and Designated Securities.CHAPTER 113. REGISTRATION OF SECURITIES.§113.1. Qualification of Securities.§113.2. Registration by Coordination.§113.3. Fair, Just, and Equitable Standards.§113.4. Application for Registration.§113.5. Financial Statements.§113.6. Renewal Update.§113.7. Reporting Changes in Filed Materials.§113.8. Notification of Status in Other States.§113.9. Securities Underlying Transferable Warrants and Employee Stock Options.§113.10. Sales Reports.§113.11. Shelf Registration of Securities.TOC-2Contents Revised 06-12-2018
§113.12. Applicability of Statements of Policy to Exempt Offerings.§113.13. Multijurisdictional Disclosure System--MJDS Offerings.§113.14. Statements of Policy.CHAPTER 114. FEDERAL COVERED SECURITIES§114.1. Introduction.§114.2. Definitions.§114.3. Consents to Service of Process.§114.4. Filings and Fees.CHAPTER 115. SECURITIES DEALERS AND AGENTS.§115.1. General Provisions.§115.2. Application Requirements.§115.3. Examination.§115.4. Evidences of Registration.§115.5. Minimum Records.§115.6. Registration of Persons with Criminal Backgrounds.§115.7. Maintenance and Inspection of Records.§115.8. Fee Requirements.§115.9. Post-Registration Reporting Requirements.§115.10. Supervisory Requirements.§115.11. Finder Registration and Activities.§115.12. Reserved for Expansion.§115.13. Reserved for Expansion.§115.14. Reserved for Expansion.§115.15. Reserved for Expansion.§115.16. Use of Senior-Specific Certifications and Professional Designations.§115.17. Reserved for Expansion.§115.18. Special Provisions Relating to Military Applicants.§115.19. Texas Crowdfunding Portal Registration and Activities.§115.20. Texas Crowdfunding Portal Registration and Activities of Small Business Development Entities.§115.21. Syste Addressing Suspected Financial Exploitation of Vulnerable Customers Pursuant to theTexas Securities Act, Section 45.CHAPTER 116. INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES.§116.1. General Provisions.§116.2. Application Requirements.§116.3. Examination.§116.4. Evidences of Registration.§116.5. Minimum Records.§116.6. Registration of Persons with Criminal Backgrounds.§116.7. Maintenance and Inspection of Records.§116.8. Fee Requirements.§116.9. Post-Registration Reporting Requirements.§116.10. Supervisory Requirements.§116.11. Disclosure Requirement/Brochure Rule.§116.12. Advisory Contract Requirements.TOC-3Contents Revised 06-12-2018
.18.§116.19.§116.20.§116.21.Advisory Fee Requirements.Prevention of Misuse of Nonpublic Information.Advertising Restrictions.Use of Senior-Specific Certifications and Professional Designations.Custody of Funds or Securities of Clients by Registered Investment Advisers.Special Provisions Relating to Military Applicants.Reserved for Expansion.Reserved for Expansion.System Addressing Suspected Financial Exploitation of Vulnerable Customers Pursuant to theTexas Securities Act, Section 45.CHAPTER 123. ADMINISTRATIVE GUIDELINES FOR REGISTRATION OF OPEN-END INVESTMENTCOMPANIES.§123.1. Reserved for Expansion.§123.2. Reserved for Expansion.§123.3. Conditional Exemption for Money Market Funds.CHAPTER 125 MINIMUM DISCLOSURES IN CHURCH AND NONPROFIT INSTITUTION BOND ISSUES.§125.1. Introduction.§125.2. Name.§125.3. The Issuer.§125.4. Description of Terms of Security Offered.§125.5. Plan of Distribution.§125.6. Financial Information.§125.7. Risk Factors.§125.8. Litigation and Other Material Transactions.CHAPTER 127. MISCELLANEOUS.§127.1. Enforcement.§127.2. Reserved for Expansion.§127.3. Seal of the State.CHAPTER 131. GUIDELINES FOR CONFIDENTIALITY OF INFORMATION.§131.1. Information Sharing.CHAPTER 133. FORMS§133.1. Reserved for Expansion.§133.2. Public Information Charges--Billing Detail.§133.3. The State Securities Board Adopts by Reference the ADA Accommodations Request Form.§133.4. Request for Consideration of a Registration Application by a Military Applicant.§133.5. Secondary Trading Exemption Notice.§133.6. Secondary Trading Exemption Renewal Notice.§133.7. Application for Registration of Securities.§133.8. Power of Attorney.§133.9. Notice Filing for Third Party Brokerage Arrangements on Financial Entity Premises.§133.10. Investment Company Report of Sales.§133.11. Sales Report for Non-continuous Offerings.TOC-4Contents Revised 06-12-2018
33.34.§133.35.§133.36.Renewal Application for Mutual Funds and Other Continuous Offerings.Application for Renewal Permit.Consent of Independent Accountants.Texas Crowdfunding Portal Registration.Texas Crowdfunding Portal Withdrawal of Registration.Crowdfunding Exemption Notice.Certification of Balance Sheet by Principal Financial Officer.Waiver or Refund Request by a Military Applicant.Texas Crowdfunding Portal Registration by an Authorized Small Business Development Entity.Crowdfunding Exemption Notice (SEC Rule 147A Offerings Using §139.26).Reserved for Expansion.Reserved for Expansion.Reserved for Expansion.Reserved for Expansion.Request for Determination of Money Market Fund Status for Federal Covered Securities.Year-End Report of Sales of Federal Covered Securities by a Money Market Fund (Pursuant to§123.3).Reserved for Expansion.Intrastate Exemption Notice.Information Concerning Projected Market Prices and Related Market Information.Reserved for Expansion.Reserved for Expansion.Uniform Forms Accepted, Required, or Recommended.Undertaking Regarding Non-issuer Sales.Application for Designation as Matching Service under §109.15.Request for Reduced Fees for Certain Persons Registered in Multiple Capacities.CHAPTER 135. INDUSTRIAL DEVELOPMENT CORPORATIONS AND AUTHORITIES.§135.1. Exemption.§135.2. Dealer and Agent Registration.§135.3. Anti-fraud Provisions.CHAPTER 137. ADMINISTRATIVE GUIDELINES FOR REGULATION OF OFFERS.§137.1. Application.§137.2. Filing Requirements.§137.3. Preliminary Prospectus.§137.4. Tombstone Advertisements.§137.5. Materials for Dealer Use.§137.6. Standards for Supplemental Advertising.§137.7. Advertisements in Texas Publications.CHAPTER 139. EXEMPTIONS BY RULE OR ORDER.§139.1. Policies.§139.2. Professional Associations.§139.3. Blue Chip Exemption.§139.4. Mexican Securities.§139.5. Canadian Securities.TOC-5Contents Revised 06-12-2018
butions by Liquidating Trustees.Sale of Securities to Nonresidents.Sales to Underwriters.Bank Holding Companies.Exchange Offers.Transactions in United States Savings Bonds.Oil and Gas Auction Exemption.Resales under SEC Rule 144 and Rule 145(d).Non-Issuer Sales.Credit Enhancements.Sales to Individual Accredited Investors.Offers Disseminated Through the Internet.Dealer and Investment Adviser Use of the Internet To Disseminate Information on Products andServices.Accredited Investor Exemption.Third Party Brokerage Arrangements on Financial Entity Premises.Dealer, Agent, and Securities Exemptions for Canadian Accounts.Exemption for Investment Adviser to a High Net Worth Family Entity.Registration Exemption for Investment Advisers to Private Funds.Charitable Organizations Assisting Economically Disadvantaged Clients with TexasQualified Tuition Program Plans.Intrastate Crowdfunding Exemption (for SEC Rule 147 Offerings).Intrastate Crowdfunding Exemption for SEC Rule 147A Offerings.Mergers and Acquisitions Dealer Exemption.The next page is FEE-1.TOC-6Contents Revised 06-12-2018
SECURITIESREGISTRATION, NOTICE FILING, AND EXEMPTION FEESActionFee (beginning July 1, 2018)Fee (through June 30, 2018)Filing an original, amended,or renewal application to sellor dispose of securities 70Act Section 35.A(1)1 100Act Section 35.A(1)1Examination of an original oramended application filedunder Section 7.A, 7.B, or7.C1/10 of 1% of the aggregateamount of securitiesdescribed and proposed tobe sold to persons locatedwithin this state based uponthe price at which suchsecurities are to be offered tothe publicAct Section 35.B(2)1/10 of 1% of the aggregateamount of securitiesdescribed and proposed tobe sold to persons locatedwithin this state based uponthe price at which suchsecurities are to be offered tothe publicAct Section 35.B(2)VariesAct Sections 35.A(1)1,35.B(2), 35.B(7), and/or35.B(6); Board Rule 114.4VariesAct Sections 35.A(1)1,35.B(2), 35.B(7), and/or35.B(6); Board Rule 114.4Filing of an initial noticerequired by theCommissioner to claim alimited offering exemption1/10 of 1% of the aggregateamount of securitiesdescribed as being offeredfor sale, but in no case morethan 500Act Section 35.B(7); BoardRule 109.131/10 of 1% of the aggregateamount of securitiesdescribed as being offeredfor sale, but in no case morethan 500Act Section 35.B(7); BoardRule 109.13Filing an initial noticerequired by theCommissioner to claim asecondary tradingexemption 500Act Section 35.B(6) 500Act Section 35.B(6)Filing a secondary tradingexemption renewal notice 500Act Section 35.B(6) 500Act Section 35.B(6)A notice filing for federalcovered securities Checks should be made payable to the “State Securities Board.”1This fee was set by the Board at its July 24, 2009 meeting so that effective September 1, 2009, this fee wasincreased by 60. Previously, at its June 24, 2003 meeting, the Board had increased this fee by 30. These fee increases were notmandated by the Texas Legislature. This notification is made pursuant to the General Appropriations Act, Article IX, Section 6.16.At its May 16, 2018 meeting, the Board reduced this fee by 30, effective July 1, 2018.FEE-1Contents Revised 06-12-2018
DEALER / AGENT, INVESTMENT ADVISER / INVESTMENT ADVISERREPRESENTATIVE REGISTRATION AND NOTICE FILING FEESFee ActionFiling an original application for dealer or investmentadviser registration 75Act Section 35.A(2)Filing a renewal application for dealer or investmentadviser registration 40Act Section 35.A(3)Notice filing for a federal covered investment adviser 75Act Section 35.A(2)Renewal notice filing for a federal covered investmentadviser 40Act Section 35.A(3)Filing an original application for each agent, officer, orinvestment adviser representative 35Act Section 35.A(4)Filing a renewal application for each agent, officer, orinvestment adviser representative 20Act Section 35.A(5)Notice filing for each representative of a federal coveredinvestment adviser 35Act Section 35.A(4)Renewal notice filing for a representative of a federalcovered investment adviser 20Act Section 35.A(5)Amendment to a registration certificate of a dealer orinvestment adviser or evidence of registration of an agentor investment adviser representative 25Act Section 35.B(1)Issuance of a duplicate certificate or evidence ofregistration 25Act Section 35.B(1)Filing a branch office registration 25Act Section 35.B(1)Filing a request to take the Texas Securities LawExamination 35Act Section 35.B(5) Checks should be made payable to the “State Securities Board.”FEE-2Contents Revised 06-12-2018
MISCELLANEOUS FEESFee ActionCopies of a public record of the AgencyVariesBoard Rule 101.5Certified copies of any papers filed in the officeof the Commissioner 1 per page plus a 15 certification feeAct Section 35.B(3)2; Board Rule 101.5Filing for an interpretation by the Board’sGeneral Counsel of the Texas Securities Act ora rule adopted under the Act 100Act Section 35.B(8)Filing an application for approval of a stockexchange 10,000Act Section 35.B(4) Checks should be made payable to the “State Securities Board.”2This fee was set by the Board at its April 27, 2011 meeting so that effective June 21, 2011, this fee was increasedby 5. Previously at its June 24, 2003 meeting, the Board had increased this fee by 5. These fee increases were not mandatedby the Texas Legislature. This notification is made pursuant to the General Appropriations Act, Article IX, Section 6.16.FEE-3Contents Revised 06-12-2018
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TEXAS ADMINISTRATIVE CODETITLE 7BANKING AND SECURITIESPART 7STATE SECURITIES BOARDCHAPTER 6.GENERAL ADMINISTRATION.Authority.Classification of Regulatory Standards.Application.Open Records Requests.Charges for Copies of Public Records.Historically Underutilized Business Program.§101.1.Authority.(a)Introduction. Pursuant to the authority granted by the Texas Securities Act and theAdministrative Procedure Act, Texas Government Code, Chapter 2001, the State Securities Board prescribesthe following sections regarding the administration and implementation of the Texas Securities Act, and theprocedure and practice before the Texas Securities Commissioner.(b)Objective. The intent of the board is to supplant unwritten policies and guidelines withwritten rules, and to revise existing sections to better reflect the realities of current financial, commercial, andregulatory principles and practices.(c)Responsibilities of the Board. The Board is the governing body of the Agency. TheBoard formulates policy objectives, oversees implementation of these objectives, and is responsible for theproposal, adoption, amendment and repeal of Board rules. The Board appoints the Securities Commissioner,who serves at the pleasure of the Board, to implement the policies of the Board, administer the provisions ofthe Texas Securities Act, and to manage the day-to-day operations of the Agency.(d)Responsibilities of the Securities Commissioner. The Securities Commissionerimplements the policies of the Board, administers the provisions of the Texas Securities Act, and manages theday-to-day operations of the Agency. It is the duty of the Securities Commissioner to see that the provisionsof the Texas Securities Act are at all times obeyed and to take such measures and to make such investigationsas will prevent or detect the violation of any provision thereof. The Commissioner appoints other persons asnecessary to carry out the powers and duties of the Commissioner under the Texas Securities Act and otherlaws granting jurisdiction or applicable to the Board or the Commissioner. The Commissioner may delegate tothe other persons appointed such powers and duties of the Commissioner as the Commissioner considersnecessary.(e)Delegated authority. The Board hereby delegates to the Commissioner the authority towaive requirements contained in the Board’s rules, as the Commissioner may, from time to time, deemappropriate.101-1Chapter Revised 06-09-2015
(f)Severability. If any provision of these sections be held invalid, such invalidity shall notaffect other provisions that can be given effect without the invalid provision, and to this end the provisions ofthese sections are declared to be severable.Source Note: The provisions of this §101.1 adopted to be effective January 1, 1976; amended to be effectiveMarch 14, 1999, 24 TexReg 1768; amended to be effective June 12, 2002, 27 TexReg 4933; amended to beeffective August 10, 2003, 28 TexReg 5991.§101.2.Classification of Regulatory Standards.(a)Rules. Rules are regulatory standards adopted and promulgated as herein required andshall be considered the highest level of policy applied by the Board.(b)Written administrative guidelines. Written administrative guidelines are of the same levelof policy as rules and will be adopted in the same manner and have the same effect as rules.(c)Forms. Forms are regulatory standards adopted for the purpose of implementing theTexas Securities Act by prescribing initial basic requirements for completing various applications and reportsfiled with the Commissioner. The forms required by the Commissioner are set forth in Chapter 133 of this title(relating to Forms) and have the same force and effect as rules.(d)Preliminary administrative suggestions. The commissioner may also adopt preliminaryadministrative suggestions which will represent those standards which are newly developed, only recentlyreduced to writing, in the process of being modified, or otherwise considered by the commissioner to be notyet suitable for general application and promulgation and publication as rules or written administrativeguidelines. Such preliminary administrative suggestions may be implemented at any time without publicationor other notice and may be immediately applied by the commissioner in the public interest or for the protectionof investors.(e)Opinions. Statements made and opinions expressed orally or in writing by personnel ofthe Securities Board in response to inquiries or otherwise, and not specifically identified and promulgated asrules shall not be considered regulatory standards of the board and shall not be considered binding upon thecommissioner in connection with specific adjudications undertaken by the commissioner thereafter. Thecommissioner may refuse to answer any question based upon a hypothetical fact situation.(f)Interpretations by General Counsel.(1)The Board’s General Counsel may respond to inquiries concerning interpretationsof the Texas Securities Act or these sections, provided sufficient relevant facts are given and the situation isnot hypothetical. A nonrefundable fee of 100 must accompany each inquiry. The General Counsel may refuseto respond to any inquiry. Responses to inquiries may take the following forms:situation;(A)an opinion that no exemption appears available in the specific fact101-2Chapter Revised 06-09-2015
(B)an opinion that the availability of specific exemption(s) is questionableor doubtful in the specific fact situation;(C)an opinion that, under the facts as stated by the inquiring party, a specificexemption appears to be available; this opinion must be followed by a caveat that:(i)the agency does not grant nor confer the exemption in question;(ii)the exemption’s availability depends entirely upon the fullcompliance with the language of the exemption;(iii)on the party claiming the exemption; andthe Texas Securities Act, Section 37, places the burden of proof(iv)opinions expressed are not binding upon civil litigants in futureproceedings;rules;fact situation;(D)an explanation of relevant provisions of the Texas Securities Act or Board(E)a statement that no interpretation will be expressed with regard to a given(F)a statement that the staff of the State Securities Board will recommendno action to require registration in the specific fact situation.Source Note: The provisions of this §101.2 adopted to be effective January 1, 1976; amended to be effectiveOctober 30, 1985, 10 TexReg 4080; amended to be effective March 14, 1999, 24 TexReg 1768.§101.3.Application.(a)Generally. All rules shall be applied collectively, to the extent relevant, in connection withspecific adjudications made by the Commissioner in the course of his or her regulatory functions. TheCommissioner will make his or her determination on the basis of specific characteristics and circumstances ofthe individual adjudications under consideration and in light of the basic statutory purposes for regulation in theparticular area. The Commissioner may, in his or her discretion, waive any requirement of any rule in situationswhere, in his or her opinion, such requirement is not necessary in the public interest or for the protection ofinvestors. The captions of the various rules are for convenience only. Should there be a conflict between thecaption of a rule and the text of the rule, the text will be controlling. Material denoted by a cross referencecaption is not a rule or part of a rule.(b)Investor protection standard. Within the confines of statutory authority, conflicts betweenthe industry and the best interest of the investing public will be resolved in favor of the investing public.101-3Chapter Revised 06-09-2015
Likewise, conflicts between existing securities holders and the best interest of the prospective investor will beresolved in favor of the prospective investor.(c)Precedent. Because rules cannot adequately anticipate all potential applicationrequirements, the failure to satisfy all regulatory standards of the Board will not necessarily foreclose thepossibility of a favorable disposition of the matter pending before the Commissioner, and, similarly, thesatisfaction of all such regulatory standards will not necessarily preclude an unfavorable disposition if thespecific characteristics and circumstances so warrant. For this reason, the nature of the disposition of anyparticular matter pending before the Commissioner is not necessarily of meaningful precedential value, andthe Commissioner shall not be bound by the precedent of any previous adjudication in the subsequentdisposition of any pending matter.Source Note: The provisions of this §101.3 adopted to be effective January 1, 1976; amended to be effectiveMay 17, 1976, 1 TexReg 1179; amended to be effective November 7, 1999, 24 TexReg 9607.§101.4.Open Records Requests. Requests for agency records will be handled pursuant to the openrecords provisions of the Public Information Act, Texas Government Code, Title 5, Chapter 552. The requestingparty shall indicate in writing the specific nature of the documents requested for examination or duplication.Source Note: The provisions of this §101.4 adopted to be effective January 1, 1976; amended to be effectiveFebruary 19, 1992, 17 TexReg 1087; amended to be effective March 17, 1994, 19 TexReg 1542; amended tobe effective June 9, 2015, 40 TexReg 3563.§101.5.Charges for Copies of Public Records.(a)The cost to any person requesting copies of any public record of the State SecuritiesBoard pursuant to the open records provisions of the Texas Government Code, Title 5, Chapter 552, will bethe applicable charge established by the Office of the Attorney General in Title 1, Part 3, Chapter 70, of theTexas Administrative Code, which is reflected in Form 133.2.(b)For certified copies the charge shall be 1.00 per page plus a 15.00 certification fee.Source Note: The provisions of this §101.5 adopted to be effective February 19, 1992, 17 TexReg 1087;amended to be effective December 20, 1993, 18 TexReg 9093; amended to be effective September 14, 1994,19 TexReg 6841; amended to be effective April 21, 1995, 20 TexReg 2619; amended to be effective March14, 1999, 24 TexReg 1768; amended to be effective August 10, 2003, 28 TexReg 5991; amended to beeffective April 19, 2007, 32 TexReg 2135; amended to be effective June 21, 2011, 36 TexReg 3713.101-4Chapter Revised 06-09-2015
§101.6.Historically Underutilized Business Program.The State Securities Board adopts by reference the rules of the Comptroller of Public Accounts relating to theHistorically Underutilized Business Program, contained in Title 34, Part 1, Chapter 20, Subchapter B, of theTexas Administrative Code.Source Note: The provisions of this §101.6 adopted to be effective August 12, 2001, 26 TexReg 5786;amended to be effective August 10, 2003, 28 TexReg 5991; amended to be effective June 21, 2011, 36TexReg 3713.101-5Chapter Revised 06-09-2015
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TEXAS ADMINISTRATIVE CODETITLE 7BANKING AND SECURITIESPART 7STATE SECURITIES BOARDCHAPTER KING PROCEDURE.How Initiated.Notice.Opportunity To Be Heard.Compliance.Petitions.§103.1.How Initiated. Proceedings for the promulgation, adoption, repeal, or revision of rules shall beinitiated by the securities commissioner.Source Note: The provisions of this §103.1 adopted to be effective January 1, 1976.§103.2.Notice. General notice of the adoption, amendment, or repeal of any rule shall be given asrequired by law and shall be sent by U.S. mail, or by email if the requestor has provided an email address, toall persons who have made timely written requests for advanced notice of rulemaking proceedings. However,failure to send such notice will not invalidate any actions taken or rules adopted.Source Note: The provisions of this §103.2 adopted to be effective January 1, 1976; amended to be effectiveJune 9, 2015, 40 TexReg 3563.§103.3.Opportunity To Be Heard. Reasonable opportunity will be afforded all interested persons tosubmit data, views, or arguments, orally or in writing. The commissioner may use informal conferences andconsultations as a means of obtaining the viewpoints and advice of interested persons.Source Note: The provisions of this §103.3 adopted to be effective January 1, 1976.§103.4.Compliance. No rule hereafter adopted will be valid unless adopted in substantial compliance withthe rulemaking provisions of the Texas Government Code, Title 10, Chapter 2001.Source Note: The provisions of this §103.4 adopted to be effective January 1, 1976; amended to be effectiveJune 9, 2015, 40 TexReg 3563.§103.5.Petitions. Any interested person may petition the Commissioner requesting the adoption of a rule,and within 60 days the Commissioner will initiate rulemaking proceedings, or deny the petition in writing, statinghis or her reasons therefor. The petition must set forth the following:103-1Chapter Revised 06-09-2015
rule relates.(1)The text of the proposed rule and a brief explanation thereof.(2)A statement of the statutory or other authority under which the rule is proposed.(3)A statement of the particular statute or statutes and sections thereof to which the proposed(4)A concise statement of the principal reasons for adoption of the rule; and the datesubmitted and by whom.Source Note: The provisions of this §103.5 adopted to be effective January 1, 1976; amended to be effect
RULES AND REGULATIONS OF THE TEXAS STATE SECURITIES BOARD STATE SECURITIES BOARD Beth Ann Blackwood — Chair — Dallas, Texas E. Wally Kinney — Member — Dripping Springs, Texas David A. Appleby — Member — El Paso, Texas Alan Waldrop — Member — Austin, Texas Miguel Romano, Jr. — Member — Austin, Texas OFFICES OF THE STATE .
