Texas Senate Bill SB1281

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/11/11
• Introduced: 3/8/11
• Voted on by Senate: 4/20/11
• Refer: 3/16/11
• Out of House Committee: 5/2/11
• Report Pass: 4/11/11
• Engrossed: 4/20/11
• Refer: 4/26/11
• Report Pass: 4/28/11

Caption

Relating to certain violations of and offenses under The Securities Act; providing penalties.

Impact

The bill's adjustments to penalties serve to enhance the enforcement framework of The Securities Act. By allowing administrative fines to reach up to $20,000 per violation—and an additional maximum of $250,000 if the violation affects a person aged 65 or older—the bill underscores the serious nature of securities fraud and its potential impact on individuals. This not only aims to deter misconduct among securities dealers and investment advisers but also highlights the legislative intent to provide enhanced protective measures for older individuals, ensuring they are safeguarded from fraudulent practices.

Summary

Senate Bill 1281 aims to amend certain provisions under The Securities Act of Texas, particularly focusing on offenses related to fraudulent practices in the sale of securities and investment advisory services. The proposed bill includes specific stipulations for administrative fines, particularly increasing penalties for violations involving persons who are 65 years of age or older. The legislation emphasizes the need for more stringent oversight of fraudulent activities in the securities market and aims to protect vulnerable populations, notably the elderly, who may be more susceptible to investment fraud.

Contention

The legislative discussions surrounding SB 1281 have pointed to a broader discourse on the need for robust regulatory mechanisms against fraud in the investment sector. Supporters argue that the increased penalties align with the goals of consumer protection and the integrity of financial markets. However, concerns have been raised about the adequacy of the current enforcement measures and whether they effectively address the complexities involved in securities trading. Critics suggest these changes could impose excessive burdens on registered advisers and could lead to unintended consequences in compliance and operational costs for investment firms.