By: Estes S.B. No. 1279
A BILL TO BE ENTITLED
AN ACT
relating to the members of the State Securities Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections B and E, Section 2, The Securities
Act (Article 581-2, Vernon's Texas Civil Statutes), are amended to
read as follows:
B. Two members of the Board must be persons who are each
registered as a dealer, agent, investment adviser, or investment
adviser representative and who are not employed by a commercial
bank or nonbank affiliate. Three members of the Board [members]
must be members of the general public. A person is not eligible for
appointment as a public member if the person or the person's spouse:
(1) is registered as a dealer, agent, investment
adviser, or investment adviser representative;
(2) has an active notice filing under this Act to
engage in business in this state as an investment adviser or
investment adviser representative;
(3) is employed by or participates in the management
of a business entity engaged in business as a securities dealer or
investment adviser; or
(4) has, other than as a consumer, a financial
interest in a business entity engaged in business as a securities
dealer or investment adviser.
E. It is a ground for removal from the Board that a member:
(1) does not have at the time of taking office the
qualifications required by Subsection A or B of this section for
appointment to the Board;
(2) does not maintain during service on the Board the
qualifications required by Subsection A or B of this section for
appointment to the Board;
(3) [is ineligible for membership under Subsection B
of this section or Subsection B or C of Section 2 1 of this Act;
[(4)] cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(4) [(5)] is absent from more than half of the
regularly scheduled Board meetings that the member is eligible to
attend during a calendar year without an excuse approved by a
majority vote of the Board.
SECTION 2. (a) The change in law made by this Act to
Subsection B, Section 2, The Securities Act (Article 581-2,
Vernon's Texas Civil Statutes), as amended by this Act, does not
affect the eligibility of a member of the State Securities Board
appointed before September 1, 2011, to continue to serve the term
that began before that date.
(b) Each of the first two persons appointed to the State
Securities Board on or after September 1, 2011, must be a dealer,
agent, investment adviser, or investment adviser representative
registered under The Securities Act (Article 581-1 et seq.,
Vernon's Texas Civil Statutes), as amended by this Act, and not
employed by a commercial bank or nonbank affiliate.
SECTION 3. This Act takes effect September 1, 2011.