October 30, 2022

TITLE 7. BANKING AND SECURITIES

PART 7. STATE SECURITIES BOARD

CHAPTER 101. GENERAL ADMINISTRATION

7 TAC §101.9

The Texas State Securities Board adopts new rule §101.9, concerning Vendor Protest Procedures, without changes to the proposed text as published in the June 24, 2022, issue of the Texas Register (47 TexReg 3613). The new rule will not be republished.

The new rule establishes the Agency's protest review and appeal process and identifies the rules and requirements of both Agency staff and the protesting party as required by §2155.076 of the Government Code.

The rule provides consistent standards for filing and resolving a vendor protest.

No comments were received regarding adoption of the new rule.

The new rule is adopted under the authority of the Texas Government Code, §§4002.151 and 2155.076. 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. Section 2155.076 requires state agencies to adopt by rule vendor protest procedures.

The adopted new rule affects: none applicable.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

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

TRD-202204043

Travis J. Iles

Securities Commissioner

State Securities Board

Effective date: October 30, 2022

Proposal publication date: June 24, 2022

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


CHAPTER 133. FORMS

7 TAC §§133.5 - 133.7, 133.12, 133.13, 133.16, 133.18, 133.26, 133.27, 133.29, 133.30, 133.34, 133.36

The Texas State Securities Board adopts the repeal of thirteen rules, concerning forms adopted by reference. Specifically, the Board adopts the repeal of §133.5, a form concerning Secondary Trading Exemption Notice; §133.6, a form concerning Secondary Trading Exemption Renewal Notice; §133.7, a form concerning Application for Registration of Securities; §133.12, a form concerning Renewal Application for Mutual Funds and Other Continuous Offerings; §133.13, a form concerning Application for Renewal Permit; §133.16, a form concerning Texas Crowdfunding Portal Withdrawal of Registration; §133.18, a form concerning Certification of Balance Sheet by Principal Financial Officer; §133.26, a form concerning Request for Determination of Money Market Fund Status for Federal Covered Securities; §133.27, a form concerning Year-End Report of Sales of Federal Covered Securities by a Money Market Fund (Pursuant to §123.3); §133.29, a form concerning Intrastate Exemption Notice; §133.30, a form concerning Information Concerning Projected Market Prices and Related Market Information; §133.34, a form concerning Undertaking Regarding Non-Issuer Sales; and §133.36, a form concerning Request for Reduced Fees for Certain Persons Registered in Multiple Capacities, without changes to the proposed text as published in the June 24, 2022, issue of the Texas Register (47 TexReg 3614). The repealed rules will not be republished.

The repealed forms contain references to the former version of the Texas Securities Act (formerly located in Vernon's Civil Statutes). New replacement forms that contain references to both the former version of the Act and to the codified version are being currently adopted.

Thirteen existing forms containing outdated references to the former version of the Act have been eliminated so they can be replaced.

No comments were received regarding adoption of the repeals.

The repeals are adopted 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 §133.36 is also adopted under the authority of the Texas Government Code, §4006.102(b). Section 4006.102(b) provides the Board with the authority to adopt rules reducing fees for persons registered in two or more capacities.

The repeals affect Chapters 4003 and 4004 of the Texas Government Code, and Subchapter A of Chapter 4005 of the Texas Government Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

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

TRD-202204046

Travis J. Iles

Securities Commissioner

State Securities Board

Effective date: October 30, 2022

Proposal publication date: June 24, 2022

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


7 TAC §§133.5 - 133.7, 133.12, 133.13, 133.16, 133.18, 133.26, 133.27, 133.29, 133.30, 133.34, 133.36

The Texas State Securities Board adopts thirteen rules, concerning forms adopted by reference. Specifically, the State Securities Board adopts new §133.5, a form concerning Secondary Trading Exemption Notice; §133.6, a form concerning Secondary Trading Exemption Renewal Notice; §133.7, a form concerning Securities Application; §133.12, a form concerning Renewal Application for Mutual Funds and Other Continuous Offerings; §133.13, a form concerning Application for Renewal Permit; §133.16, a form concerning Texas Crowdfunding Portal Withdrawal of Registration; §133.18, a form concerning Certification of Balance Sheet by Principal Financial Officer; §133.26, a form concerning Request for Determination of Money Market Fund Status for Federal Covered Securities; §133.27, a form concerning Year-End Report of Sales of Federal Covered Securities by a Money Market Fund; §133.29, a form concerning Intrastate Exemption Notice; §133.30, a form concerning Information Concerning Projected Market Prices and Related Market Information; §133.34, a form concerning Undertaking Regarding Non-Issuer Sales; and §133.36, a form concerning Request for Reduced Fees for Certain Persons Registered in Multiple Capacities, without changes to the proposed text as published in the June 24, 2022, issue of the Texas Register (47 TexReg 3615). The new rules will not be republished.

The new sections adopt by reference forms that are updated to add references to the forms to the codified version of the Texas Securities Act in the Government Code, which became effective on January 1, 2022, so that the new forms contain references to both the former version of the Act (formerly located in Vernon's Civil Statutes) and to the codified version. Other non-substantive changes are made to the sections and the forms, and the name of Form 133.7 is changed to be more descriptive of its use. In addition, the name of Form 133.27 is also changed to remove an unnecessary parenthetical. Existing forms §§133.5, 133.6, 133.7, 133.12, 133.13, 133.16, 133.18, 133.26, 133.27, 133.29, 133.30, 133.34, and 133.36 are being concurrently adopted for repeal.

The thirteen new forms assist the public in navigating the transition from the former version of the Act to the current Government Code version of the Act.

No comments were received regarding adoption of the new rules.

The new rules are adopted 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 §133.36 is also adopted under the authority of the Texas Government Code, §4006.102(b). Section 4006.102(b) provides the Board with the authority to adopt rules reducing fees for persons registered in two or more capacities.

The new rules affect Chapters 4003 and 4004 of the Texas Government Code, and Subchapter A of Chapter 4005 of the Texas Government Code.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

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

TRD-202204044

Travis J. Iles

Securities Commissioner

State Securities Board

Effective date: October 30, 2022

Proposal publication date: June 24, 2022

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