October 21, 2022

TITLE 7. BANKING AND SECURITIES

PART 7. STATE SECURITIES BOARD

CHAPTER 133. FORMS

7 TAC §§133.2 - 133.4, 133.9 - 133.11, 133.14, 133.15, 133.19 - 133.23

The Texas State Securities Board proposes the repeal of thirteen rules, concerning forms adopted by reference. These forms would be repealed, and new replacement forms are being currently proposed that are updated to standardize and improve the forms through nonsubstantive changes. Specifically, the State Securities Board proposes the repeal of §133.2, a form concerning Public Information Charges--Billing Detail; §133.3, a form concerning The State Securities Board Adopts by Reference the ADA Accommodations Request Form; §133.4, a form concerning Request for Consideration of a Registration Application by a Military Applicant; §133.9, a form concerning Notice Filing for Third Party Brokerage Arrangements on Financial Entity Premises; §133.10, a form concerning Investment Company Report of Sales; §133.11, a form concerning Sales Report for Non-continuous Offerings; §133.14, a form concerning Consent of Independent Accountants; §133.15, a form concerning Texas Crowdfunding Portal Registration; §133.19, a form concerning Waiver or Refund Request by a Military Applicant; §133.20, a form concerning Texas Crowdfunding Portal Registration by an Authorized Small Business Development Entity; §133.21, a form concerning Crowdfunding Exemption Notice (SEC Rule 147A Offerings using §139.26); §133.22, a form concerning Waiver or Refund Request by a Military Spouse for a Renewal Fee; and §133.23, a form concerning Request for Recognition of Out-Of-State License or Registration by a Military Spouse.

Clint Edgar, Deputy Securities Commissioner; and Emily Diaz and Shaun Yarroll, Assistant Directors, Registration Division, have determined that for the first five-year period the repeals are in effect, there will be no foreseeable fiscal implications for state or local government as a result of administering the repeals.

Mr. Edgar, Ms. Diaz, and Mr. Yarroll have also determined that for each year of the first five years the proposed repeals are in effect the public benefit expected as a result of adoption of the proposed repeals will be that forms that are no longer needed will be eliminated. There will be no adverse economic effect on micro- or small businesses or rural communities. Since the proposed repeals will have no adverse economic effect on micro- or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed. There is no anticipated impact on local employment.

Mr. Edgar, Ms. Diaz, and Mr. Yarroll have also determined that for the first five-year period the proposed repeals of the rules adopting by reference the forms are in effect: they do not create or eliminate a government program; they do not require the creation or elimination of existing employee positions; they do not require an increase or decrease in future legislative appropriations to this agency; they do not require an increase or decrease in fees paid to this agency; they do not increase or decrease the number of individuals subject to the rule's applicability; they do not positively or negatively affect the state's economy; and they do not create a new regulation, or expand, limit, or repeal an existing regulation. Although the rulemaking involves repealing existing forms, the net effect is to merely replace the forms with new forms that are being concurrently proposed, while leaving the scope and the content of the current regulations that relate to these forms unchanged.

Comments on the proposal must be in writing and will be accepted for 30 days following publication of the proposed repeals in the Texas Register. Written comments should be submitted to Marlene K. Sparkman, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711‑3167 or faxed to (512) 305‑8336. Comments may also be submitted electronically to proposal@ssb.texas.gov. In order to be considered by the Board at adoption, comments must be received no later than 30 days following publication.

The repeals are proposed under the authority of the Texas Government Code, §4002.151. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. The repeal of rule §133.3 is also proposed under the authority of the Texas Occupations Code, §54.003, which provides that agencies shall adopt rules to provide reasonable examination accommodations to examinees diagnosed as having dyslexia for each licensing examination administered by the agency. The repeals of rules §§133.4 and 133.19 are also proposed under the authority of Chapter 55 of the Texas Occupations Code, which authorizes the agency to adopt rules for licensure or registration of a person who is a military spouse, military service member, or military veteran who meets certain criteria. The repeal of rule §133.20 is also proposed under the authority of the Texas Government Code, §4003.252(a), which provides the Board with the authority to adopt rules to regulate and facilitate online intrastate crowdfunding by authorized small business development entities. The repeals of rules §§133.22 and 133.23 are also proposed under the authority of the Texas Occupations Code, §55.0041, which requires a state agency that issues a license to adopt rules to implement §55.0041 and authorizes a state agency to adopt rules to provide for the issuance of a license to a military spouse to whom the agency provides confirmation under subsection (b)(3) of §55.0041.

The proposal affects Chapters 4003 to 4006 of the Texas Government Code, particularly the statutes contained in Chapter 4003, Subchapters A and F; Chapter 4004, Subchapters A-D and F; Chapter 4005, Subchapter A; and Chapter 4006, Subchapters A-C and E; as well as Texas Government Code, §4007.105.

§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.

§133.9.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.

§133.14.Consent of Independent Accountants.

§133.15.Texas Crowdfunding Portal Registration.

§133.19.Waiver or Refund Request by a Military Applicant.

§133.20.Texas Crowdfunding Portal Registration by an Authorized Small Business Development Entity.

§133.21.Crowdfunding Exemption Notice (SEC Rule 147A Offerings using §139.26).

§133.22.Waiver or Refund Request by a Military Spouse for a Renewal Fee.

§133.23.Request for Recognition of Out-Of-State License or Registration by a Military Spouse.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 10, 2022.

TRD-202204042

Travis J. Iles

Securities Commissioner

State Securities Board

Earliest possible date of adoption: November 20, 2022

For further information, please call: (512) 305-8303

7 TAC §§133.2 - 133.4, 133.9 - 133.11, 133.14, 133.15, 133.19 - 133.23

The Texas State Securities Board proposes thirteen new rules, concerning forms adopted by reference. Specifically, the State Securities Board proposes new §133.2, a form concerning Public Information Charges - Billing Detail; §133.3, a form concerning ADA Accommodations Request; §133.4, a form concerning Request for Consideration of a Registration Application by a Military Applicant; §133.9, a form concerning Notice Filing for Third Party Brokerage Arrangements on Financial Entity Premises; §133.10, a form concerning Investment Company Report of Sales in the State of Texas; §133.11, a form concerning Sales Report for Non-continuous Offerings; §133.14, a form concerning Consent of Independent Accountants; §133.15, a form concerning Texas Crowdfunding Portal Registration; §133.19, a form concerning Waiver or Refund Request by a Military Applicant; §133.20, a form concerning Texas Crowdfunding Portal Registration by an Authorized Small Business Development Entity; §133.21, a form concerning Crowdfunding Exemption Notice; §133.22, a form concerning Waiver or Refund Request by a Military Spouse for a Renewal Fee; and §133.23, a form concerning Request for Recognition of Out-Of-State License or Registration by a Military Spouse.

The new sections would adopt by reference forms that would be updated to standardize and improve the forms through nonsubstantive changes. Additionally, the names of three forms would be changed: the name of Form 133.3 would be changed to more concisely describe the form; the name of Form 133.10 would be changed to add "in the State of Texas" to remind the reporting party that only sales in Texas need be included in the report; and Form 133.21 would be changed to remove an unnecessary parenthetical. Existing forms §§133.2, 133.3, 133.4, 133.9, 133.10, 133.11, 133.14, 133.15, 133.19, 133.20, 133.21, 133.22, and 133.23 are being concurrently proposed for repeal.

Clint Edgar, Deputy Securities Commissioner; and Emily Diaz and Shaun Yarroll, Assistant Directors, Registration Division, have determined that for the first five-year period the proposed forms are used there will be no foreseeable fiscal implications for state or local government as a result of using the proposed forms.

Mr. Edgar, Ms. Diaz, and Mr. Yarroll have also determined that for each year of the first five years the proposed forms are used the public benefit expected as a result of adoption of the proposed forms will be that outdated forms will be replaced with new, improved, and updated forms. There will be no adverse economic effect on micro- or small businesses or rural communities. Since the proposed forms will have no adverse economic effect on micro- or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required. There is no anticipated economic cost to persons who are required to use the forms as proposed. There is no anticipated impact on local employment.

Mr. Edgar, Ms. Diaz, and Mr. Yarroll have also determined that for the first five-year period the proposed rules adopting by reference the forms are in effect: they do not create or eliminate a government program; they do not require the creation or elimination of existing employee positions; they do not require an increase or decrease in future legislative appropriations to this agency; they do not require an increase or decrease in fees paid to this agency; they do not increase or decrease the number of individuals subject to the rules' applicability; they do not positively or negatively affect the state's economy; and they do not create a new regulation, or expand, limit or repeal an existing regulation. Although the rulemaking involves the creation of new forms, there would be no new regulation created since the net effect is to merely replace forms that are being concurrently proposed for repeal, while leaving the scope and the content of the current regulations that relate to these forms unchanged.

Comments on the proposal must be in writing and will be accepted for 30 days following publication of the proposed sections in the Texas Register. Written comments should be submitted to Marlene K. Sparkman, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711‑3167 or faxed to (512) 305‑8336. Comments may also be submitted electronically to proposal@ssb.texas.gov. In order to be considered by the Board at adoption, comments must be received no later than 30 days following publication.

The new rules are proposed under the authority of the Texas Government Code, §4002.151. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. New rule §133.3 is also proposed under the authority of the Texas Occupations Code, §54.003, which provides that agencies shall adopt rules to provide reasonable examination accommodations to examinees diagnosed as having dyslexia for each licensing examination administered by the agency. New rules §§133.4 and 133.19 are also proposed under the authority of Chapter 55 of the Texas Occupations Code, which authorizes the agency to adopt rules for licensure or registration of a person who is a military spouse, military service member, or military veteran who meets certain criteria. New rule §133.20 is also proposed under the authority of the Texas Government Code, §4003.252(a), which provides the Board with the authority to adopt rules to regulate and facilitate online intrastate crowdfunding by authorized small business development entities. New rules §§133.22 and 133.23 are also proposed under the authority of the Texas Occupations Code, §55.0041, which requires a state agency that issues a license to adopt rules to implement §55.0041 and authorizes a state agency to adopt rules to provide for the issuance of a license to a military spouse to whom the agency provides confirmation under subsection (b)(3) of §55.0041.

§133.2.Public Information Charges - Billing Detail.