A meeting of the State Securities Board was held on August 25, 2015, in Room 320, Thomas Jefferson Rusk State Office Building, at 10:15 a.m. Those present were: Beth Ann Blackwood, Chair; E. Wally Kinney, Member; David A. Appleby, Member; John Morgan, Securities Commissioner; Ronak V. Patel, Deputy Securities Commissioner; Tommy Green, Director, Inspections and Compliance Division; Derek Lauterjung, Director, Staff Services Division; Patty Loutherback, Director, Registration Division; Joseph J. Rotunda, Director, Enforcement Division; Marlene K. Sparkman, General Counsel; Oscar Gonzalez, Assistant Director, Registration Division; Stephanie Tourk, Assistant General Counsel; Robert Elder, Communications; Shaun Yarroll, Financial Examiner; and Sonia Fergerson, Executive Assistant. Also attending were Miguel Romano, Jr. and Vik Vad.
Chair Blackwood called the meeting to order at 10:20 a.m.
Minutes of the May 13, 2015, meeting were approved.
The Board voted to adopt the following proposed rules:
1. Amending §104.4, concerning registration of securities--review of applications, and §104.5, concerning registration of dealers and investment advisers--review of applications, to eliminate the requirement that deficiency and comment letters be sent via U.S. mail and recognize the use of alternative methods of communication with
2. Amending §115.2(a) and §116.2(a), concerning application requirements, to specify the requirements for an applicant’s balance sheet and the form to be used when the balance sheet is certified by the applicant’s principal financial officer.
3. New Form 133.18, certification of balance sheet by an applicant’s principal financial officer.
The Board voted to publish for public comment the following new rule proposals:
1. Amending §113.1, concerning qualification of securities.
2. Amending §115.4(e) and §116.4(e), concerning evidences of registration, to relocate detailed provisions relating to renewals by military service members to §115.18 and
§116.18 and implement changes made to the Occupations Code by Senate Bill 1307.
3. Amending §115.8 and §116.8, concerning fee requirements, to implement changes made to the Occupations Code by Senate Bill 807 and to provide for a fee reduction for small businesses registered in multiple capacities following the repeal of Section 41 of the Texas Securities Act in House Bill 7.
4. Amending §115.18 and §116.18, concerning special application provisions available to a military spouse, military service member, or military veteran, to implement changes made to the Occupations Code by Senate Bill 1307 and Senate Bill 807 relating to military applicants, and to relocate provisions from other sections that relate to military applicants.
5. Repealing Form 133.4, concerning request for special consideration of a registration application by a military spouse, military service member, or military veteran.
6. Adopting new Form 133.4, concerning request for consideration of a registration application by a military applicant.
7. Adopting new Form 133.19, concerning waiver or refund request by a military applicant.
8. Amending §139.12, concerning oil and gas auction exemption, to add “associate auctioneer” to the definition of “auctioneer” to recognize this new type of registration
added by House Bill 2481.
The Board voted to re-adopt the following rule chapters:
1. Chapter 107. Terminology.
2. Chapter 127. Miscellaneous.
3. Chapter 131. Guidelines for Confidentiality of Information.
The Board voted to set Section 35.A fees for the upcoming biennium. Fees for registration renewal applications for securities dealers and investment advisers were reduced from $70 to $40. Fees for original applications for agents, officers, and investment adviser representatives were reduced from $85 to $35. Fees for renewal applications for agents, officers, and investment adviser representatives were reduced from $75 to $20. Fees for notice filers were also reduced.
The Board’s Audit Committee gave a status update on the fiscal year 2015 internal audit.
The Board acknowledged and accepted a grant from the Investor Protection Trust in the amount of $40,780 for updating and expanding the Texas Investor Guide: Strategies for Investing Wisely and Avoiding Fraud. The Commissioner provided a summary of IPT grants accepted by the Board since 2006.
The Commissioner provided an update on the conclusion of the 84th Legislative Session, including the Agency’s appropriations for the next biennium.
The Commissioner gave a report on the Agency’s budget and performance measures.
The Commissioner gave a general update on Agency operations.
The meeting was then adjourned.