TITLE 7. BANKING AND SECURITIES

PART 7. STATE SECURITIES BOARD

CHAPTER 113. REGISTRATION OF SECURITIES

7 TAC §113.1

The Texas State Securities Board adopts an amendment to §113.1, concerning qualification of securities, without changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6805).

A reference was added to §114.4, relating to filings and fees for federal covered securities, to the section that discusses Regulation A offerings. Section 114.4(a) operates to require a notice filing, payment of the fee that would have been paid if the securities had been registered, and, if applicable, a consent to service for federal covered securities that are offered and sold pursuant to Tier 2 of Regulation A.

Readers of the rule will be apprised that some Regulation A offerings may involve federal covered securities, rather than registered securities in Texas, and directed to the provisions that relate to filings and fees for federal covered securities.

No comments were received regarding adoption of the amendment.

The amendment is adopted 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 adopted amendment affects Texas Civil Statutes, Article 581-7.

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 February 4, 2016.

TRD-201600552

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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

CHAPTER 115. SECURITIES DEALERS AND AGENTS
7 TAC §§115.4, 115.8, 115.18

The Texas State Securities Board adopts amendments to §115.4, concerning evidences of registration, §115.8, concerning fee requirements, and §115.18, concerning special provisions relating to military applicants, without changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6806).

Portions of subsection (e) of §115.4 were amended to move the substantive portions relating to registration renewals by military service members to §115.18.

The amendment to subsection (d) of §115.8 removed the reference to the $200 professional fee in Section 41 of the Texas Securities Act, which was repealed by the 84th Texas Legislature. Subsection (b)(3) of §115.8 was restructured so the fee reduction applies to the second set of Section 35.A fees (relating to registration as an investment adviser or investment adviser representative) resulting in a reduction in fees for a small business registered in multiple capacities.

Amendments to §115.18 incorporated statutory changes passed by the 84th Legislature contained in Senate Bill 1307 and Senate Bill 807 and moved other provisions related to renewals by military service members into §115.18 from §115.4.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Civil Statutes, Article 581-28-1 and Chapter 55 of the Texas Occupations Code. 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. Chapter 55 of the Texas Occupations Code 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 adopted amendments affect Texas Civil Statutes, Articles 581-12, 581-13, 581-14, 581-15, and 581-18.

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 February 4, 2016.

TRD-201600553

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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

CHAPTER 116. INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES
7 TAC §§116.4, 116.8, 116.18

The Texas State Securities Board adopts amendments to §116.4, concerning evidences of registration, §116.8, concerning fee requirements, and §116.18, concerning special provisions relating to military applicants, without changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6809).

Portions of subsection (e) of §116.4 were amended to move the substantive portions relating to registration renewals by military service members to §116.18.

The amendment to subsection (d) of §116.8 removed the reference to the $200 professional fee in Section 41 of the Texas Securities Act, which was repealed by the 84th Texas Legislature. Subsection (b)(3) of §116.8 was restructured so the fee reduction applies to the second set of Section 35.A fees (relating to registration as an investment adviser or investment adviser representative) resulting in a reduction in fees for a small business registered in multiple capacities.

Amendments to §116.18 incorporated statutory changes passed by the 84th Legislature contained in Senate Bill 1307 and Senate Bill 807 and moved other provisions related to renewals by military service members into §116.18 from §116.4.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Texas Civil Statutes, Article 581-28-1 and Chapter 55 of the Texas Occupations Code. 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. Chapter 55 of the Texas Occupations Code 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 adopted amendments affect Texas Civil Statutes, Articles 581-12, 581-13, 581-14, 581-15, and 581-18.

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 February 4, 2016.

TRD-201600554

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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

CHAPTER 133. FORMS
7 TAC §133.4

The Texas State Securities Board adopts the repeal of §133.4, which adopts by reference a form concerning request for special consideration of a registration application by a military spouse, military service member, or military veteran, without changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6813).

The repeal allows a new form to be adopted.

An outdated form has been eliminated.

No comments were received regarding adoption of the repeal.

The repeal is adopted under Texas Civil Statutes, Article 581-28-1 and Chapter 55 of the Texas Occupations Code. 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. Chapter 55 of the Texas Occupations Code 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 adopted repeal affects Texas Civil Statutes, Articles 581-12, 581-13, 581-14, 581-15, and 581-18.

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 February 4, 2016.

TRD-201600555

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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

7 TAC §133.4

The Texas State Securities Board adopts new §133.4, which adopts by reference a form concerning request for consideration of a registration application by a military applicant, without changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6813).

The form allows a military service member, military spouse, or military veteran (collectively, military applicants) licensed in another jurisdiction or with comparable military service, training, or education to request special consideration or credit for such licensure or experience as well as expedited review of an application for registration pursuant to §115.18 or §116.18, which are being concurrently amended. Also concurrent with this adoption is repeal of existing form §133.4.

A military applicant licensed in another jurisdiction or with comparable military service, training, or education can complete the form to request special consideration or credit for such licensure or experience as well as expedited review of an application for registration pursuant to §115.18 or §116.18.

No comments were received regarding adoption of the new rule.

The new rule is adopted under Texas Civil Statutes, Article 581-28-1 and Chapter 55 of the Texas Occupations Code. 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. Chapter 55 of the Texas Occupations Code 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 new rule affects Texas Civil Statutes, Articles 581-12, 581-13, 581-14, 581-15, and 581-18.

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 February 4, 2016.

TRD-201600556

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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

7 TAC §133.19

The Texas State Securities Board adopts new §133.19, which adopts by reference a form concerning waiver or refund request by a military applicant, with changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6814). A slight change was made to the explanatory material that appears in italics on the first page below the form title to remove a phrase that mistakenly appeared twice.

The form allows a military service member, military spouse, or military veteran (collectively, military applicants) to request a waiver or refund of the initial registration application fee or the fee to take the Texas Securities Law Examination under the new procedures in §115.18 and §116.18, which are being concurrently amended.

A military applicant eligible for a waiver or refund of the initial application fee or the fee to take the Texas Securities Law Examination can complete the form to obtain the waiver or refund.

No comments were received regarding adoption of the new rule.

The new rule is adopted under Texas Civil Statutes, Article 581-28-1 and Chapter 55 of the Texas Occupations Code. 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. Chapter 55 of the Texas Occupations Code 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 new rule affects Texas Civil Statutes, Articles 581-12, 581-13, 581-15, and 581-18.

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

The State Securities Board adopts by reference Form 133.19, Waiver or Refund Request by a Military Applicant. This form is available from the State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167 and at www.ssb.state.tx.us.

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 February 4, 2016.

TRD-201600557

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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

CHAPTER 139. EXEMPTIONS BY RULE OR ORDER
7 TAC §139.12

The Texas State Securities Board adopts an amendment to §139.12, concerning oil and gas auction exemption, without changes to the proposed text as published in the October 2, 2015, issue of the Texas Register (40 TexReg 6814).

The rule adds "associate auctioneer," a new type of registration under the Texas Occupations Code added by House Bill 2481, effective September 1, 2015. An "associate auctioneer" is an individual who, for compensation, is employed by and under the direct supervision of a licensed auctioneer to sell or offer to sell property at an auction. The rule also eliminates the reference to an "auction company" licensed by the Texas Department of Licensing and Regulation since there is no such equivalent license in Chapter 1802 of the Texas Occupations Code.

Licensed persons who may act as an auctioneer for purposes of the exemption will be correctly identified.

No comments were received regarding adoption of the amended rule.

The amendment is adopted under Texas Civil Statutes, Articles 581-5.T and Article 581-28-1. Section 5.T provides that the Board may prescribe new exemptions by rule. 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 adopted amendment affects Texas Civil Statutes, Articles 581-5, 581-7, and 581-12.

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 February 4, 2016.

TRD-201600558

John Morgan

Securities Commissioner

State Securities Board

Effective date: February 24, 2016

Proposal publication date: October 2, 2015

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