TITLE 7. BANKING AND SECURITIES

PART 7. STATE SECURITIES BOARD

CHAPTER 101. GENERAL ADMINISTRATION
7 TAC §101.4

The Texas State Securities Board proposes an amendment to §101.4, concerning examination of records. The amendment would change the name of the section to clarify that it refers to open records requests and would omit references to Form 133.1, the repeal of which is also being proposed. The Texas Public Information Act ("TPIA") requires that record requests be made in writing. A form is not required, and Form 133.1 is seldom used. The amendment also notifies the public that requests are processed in accordance with the requirements of the TPIA. "Photocopying" has been replaced with "duplication" to more accurately reflect the variety of ways that records can be furnished to requestors, including in electronic format.

Marlene K. Sparkman, General Counsel, has determined that for the first five-year period the rule is in effect there will be no foreseeable fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Sparkman also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be the accurate reflection in the Agency's rules of the Agency's requirements for and procedures related to open records requests. There will be no effect on micro- or small businesses. Since the rule will have no adverse economic effect on micro- or small businesses, 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 rule as proposed. There is no anticipated impact on local employment.

Comments on the proposal must be in writing and will be accepted for 45 days following publication of the proposed section 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 45 days following publication.

The amendment is proposed under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

Cross-reference to Statute: Texas Government Code, Chapter 552.

§101.4.Open [Examination of] Records Requests.

Requests [Upon receipt of a request] for agency [examination of] records will be handled pursuant to the open records provisions of the Public Information Act, Texas Government Code, Title 5, Chapter 552[, Form 133.1 will be furnished to the party requesting the examination]. The requesting party shall indicate in writing [on the form] the specific nature of the documents requested for examination or duplication [photocopying, and if photocopying is desired the appropriate fee must accompany the request].

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 January 27, 2015.

TRD-201500200

John Morgan

Securities Commissioner

State Securities Board

Earliest possible date of adoption: March 15, 2015

For further information, please call: (512) 305-8301

CHAPTER 103. RULEMAKING PROCEDURE
7 TAC §103.2, §103.4

The Texas State Securities Board proposes amendments to §103.2, concerning notice, and §103.4, concerning compliance. The amendment to §103.2 would eliminate the requirement that notices of rulemaking proceedings be mailed. Generally, notices of Board meetings and of proposed and adopted rulemaking are delivered by email but may be sent by facsimile or U.S. mail on request. The amendment to §103.4 would simplify the rule by stating generally that agency rulemaking procedure will comply with the related provisions in the Texas Government Code.

Marlene K. Sparkman, General Counsel, has determined that for the first five-year period the rules are in effect there will be no foreseeable fiscal implications for state or local government as a result of enforcing or administering the rules.

Ms. Sparkman also has determined that for each year of the first five years the rules are in effect the public benefit anticipated as a result of enforcing the rules will be the accurate reflection in the Agency's rules of the Agency's procedures as they relate to rulemaking. There will be no effect on micro- or small businesses. Since the rules will have no adverse economic effect on micro- or small businesses, 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 rules as proposed. There is no anticipated impact on local employment.

Comments on the proposal must be in writing and will be accepted for 45 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 45 days following publication.

The amendments are proposed under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

The proposals affect Texas Civil Statutes, Articles 581-2-5, 581-4.N, 581-4.P, 581-5.T, 581-7.A, 581-8, 581-12.C, 581-12-1.B, 581-13.D, 581-19.B, 581-28, 581-28-1, and 581-42.

§103.2.Notice.

General notice of the adoption, amendment, or repeal of any rule shall be given as required by law and shall be sent [mailed] to all persons who have made timely written requests for advanced notice of rulemaking proceedings. However, failure to send[mail] such notice will not invalidate any actions taken or rules adopted.

§103.4.Compliance.

No rule hereafter adopted will be valid unless adopted in substantial compliance with the rulemaking provisions of the Texas Government Code, Title 10, Chapter 2001 [these procedures, and no rule, order, or decision made or issued will be valid until it has been indexed and made available for public inspection as required by law].

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 January 27, 2015.

TRD-201500202

John Morgan

Securities Commissioner

State Securities Board

Earliest possible date of adoption: March 15, 2015

For further information, please call: (512) 305-8301

CHAPTER 133. FORMS
7 TAC §133.1

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the State Securities Board or in the Texas Register office, James Earl Rudder Building, 1019 Brazos Street, Austin, Texas.)

The Texas State Securities Board proposes the repeal of §133.1, which adopts by reference a form concerning Texas public information request. The Texas Public Information Act requires that record requests be made in writing. A form is not required, and Form 133.1 is seldom used.

Marlene K. Sparkman, General Counsel, has determined that for the first five-year period the rule is in effect there will be no foreseeable fiscal implications for state or local government as a result of enforcing or administering the rule.

Ms. Sparkman also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be the elimination an unnecessary form. There will be no effect on micro- or small businesses. Since the rule will have no adverse economic effect on micro- or small businesses, 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 rule as proposed. There is no anticipated impact on local employment.

Comments on the proposal must be in writing and will be accepted for 45 days following publication of the proposed section 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 45 days following publication.

The repeal is proposed under Texas Civil Statutes, Article 581-28-1. Section 28-1 provides the Board with the authority to adopt rules and regulations necessary to carry out and implement the provisions of the Texas Securities Act, including rules and regulations governing registration statements and applications; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes.

Cross-reference to Statute: Texas Government Code, Chapter 552.

§133.1.Texas Publication Information Request.

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 January 27, 2015.

TRD-201500201

John Morgan

Securities Commissioner

State Securities Board

Earliest possible date of adoption: March 15, 2015

For further information, please call: (512) 305-8301