85R3236 CLG-F
By: Parker H.B. No. 823
A BILL TO BE ENTITLED
AN ACT
relating to the self-directed and semi-independent status of the
State Securities Board; authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 472.001, Government Code, is amended to
read as follows:
Sec. 472.001. APPLICABILITY OF CHAPTER. This chapter
applies to:
(1) the Texas State Board of Public Accountancy;
(2) the Texas Board of Professional Engineers; [and]
(3) the Texas Board of Architectural Examiners; and
(4) the State Securities Board.
SECTION 2. The Securities Act (Article 581-1 et seq.,
Vernon's Texas Civil Statutes) is amended by adding Sections 45,
46, 47, and 48 to read as follows:
Sec. 45. SELF-DIRECTED AND SEMI-INDEPENDENT STATUS. The
State Securities Board has self-directed and semi-independent
status as provided under Chapter 472, Government Code.
Sec. 46. REPORT TO BOARD. Periodically, the Commissioner
shall submit to the members of the Board, as directed by the Board
members, a report of the receipts and expenditures of the agency.
Sec. 47. REFUND OF CERTAIN REGISTRATION FEES. If the
Commissioner or Board determines that all or part of a registration
fee deposited to the general revenue fund should be refunded, the
refund shall be paid from the general revenue fund.
Sec. 48. REPRESENTATION BY ATTORNEY GENERAL. The attorney
general may assess and collect from the Commissioner or the Board
reasonable attorney's fees associated with any legal
representation requested by the Commissioner and provided by the
attorney general. Notwithstanding any other law, a requirement that
the attorney general represent an agency in any litigation does not
apply to a proceeding under this Act that is governed by Chapter
2001, Government Code.
SECTION 3. Subsections D, G, and K, Section 2, The
Securities Act (Article 581-2, Vernon's Texas Civil Statutes), are
amended to read as follows:
D. Each member of the Board is entitled to reimbursement for
travel expenses incurred [per diem as set by legislative
appropriation] for each day that the member engages in the business
of the Board.
The Governor shall designate a member of the Board as the
presiding officer of the Board to serve in that capacity at the will
of the Governor. A majority of the members shall constitute a quorum
for the transaction of any business.
G. The Board shall appoint a Securities Commissioner who
serves at the pleasure of the Board and who shall, under the
supervision of the Board, administer the provisions of this Act.
The Board shall determine the Commissioner's salary. Each member of
the Board shall have access to all offices and records under his
supervision, and the Board, or a majority thereof, may exercise any
power or perform any act authorized to the [Securities]
Commissioner by the provisions of this Act.
K. The Commissioner shall determine the number of Board
employees and the employees' salaries. The Commissioner or his
designee shall develop an intraagency career ladder program, one
part of which shall be the intraagency posting of all nonentry level
positions for at least ten (10) days before any public posting. The
Commissioner or his designee shall develop a system of annual
performance evaluations based on measurable job tasks. All merit
pay for Board employees must be based on the system established
under this section.
SECTION 4. Subsection C, Section 2-3, The Securities Act
(Article 581-2-3, Vernon's Texas Civil Statutes), is amended to
read as follows:
C. A person appointed to the Board is entitled to
reimbursement[, as provided by the General Appropriations Act,] for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 5. Subsections A, B, and D, Section 35, The
Securities Act (Article 581-35, Vernon's Texas Civil Statutes), are
amended to read as follows:
A. The Board shall establish the following fees to produce
[in amounts so that the aggregate amount that exceeds the amount of
the fees on September 1, 2002, produces] sufficient revenue to
cover the costs of administering and enforcing this Act:
(1) for the filing of any original, amended, or
renewal application to sell or dispose of securities[, an amount
not to exceed $100];
(2) for the filing of any original application of a
dealer or investment adviser or for the submission of a notice
filing for a federal covered investment adviser[, an amount not to
exceed $100];
(3) for the filing of any renewal application of a
dealer or investment adviser or for the submission of a renewal
notice filing for a federal covered investment adviser[, an amount
not to exceed $100];
(4) for the filing of any original application for
each agent, officer, or investment adviser representative or for
the submission of a notice filing for each representative of a
federal covered investment adviser[, an amount not to exceed $100];
and
(5) for the filing of any renewal application for each
agent, officer, or investment adviser representative or for the
submission of a renewal notice filing for each representative of a
federal covered investment adviser[, an amount not to exceed $100].
B. Notwithstanding Section 472.110, Government Code, the
[The] Commissioner or Board shall charge and collect the following
fees and shall deposit daily [pay] all fees received to [into] the
general revenue fund [State Treasury]:
(1) for any filing to amend the registration
certificate of a dealer or investment adviser or evidence of
registration of an agent or investment adviser representative,
issue a duplicate certificate or evidence of registration, or
register a branch office, $25;
(2) for the examination of any original or amended
application filed under Subsection A, B, or C of Section 7 of this
Act, regardless of whether the application is denied, abandoned,
withdrawn, or approved, a fee of one-tenth (1/10) of one percent
(1%) of the aggregate amount of securities described and proposed
to be sold to persons located within this state based upon the price
at which such securities are to be offered to the public;
(3) for certified copies of any papers filed in the
office of the Commissioner, the Commissioner shall charge such fees
as are reasonably related to costs; however, in no event shall such
fees be more than those which the Secretary of State is authorized
to charge in similar cases;
(4) for the filing of any application for approval of a
stock exchange so that securities fully listed thereon will be
exempt, a fee of $10,000;
(5) for the filing of a request to take the Texas
Securities Law Examination, $35;
(6) for the filing of an initial notice required by the
Commissioner to claim a secondary trading exemption, a fee of $500,
and for the filing of a secondary trading exemption renewal notice,
a fee of $500;
(7) for the filing of an initial notice required by the
Commissioner to claim a limited offering exemption, a fee of
one-tenth (1/10) of one percent (1%) of the aggregate amount of
securities described as being offered for sale, but in no case more
than $500; and
(8) for an interpretation by the Board's general
counsel of this Act or a rule adopted under this Act, a fee of $100,
except that an officer or employee of a governmental entity and the
entity that the officer or employee represents are exempt from the
fee under this subsection when the officer or employee is
conducting official business of the entity.
D. A cost incurred by the Board in administering or
enforcing this Act may be paid only from a fee collected under
Subsection A of this section.
SECTION 6. The following provisions of The Securities Act
(Article 581-l et seq., Vernon's Texas Civil Statutes) are
repealed:
(1) Subsections J, M, and N, Section 2;
(2) Subsection C, Section 35; and
(3) Section 36.
SECTION 7. Subject to Chapter 472, Government Code, the
appropriations made by an Act of the 85th Legislature, Regular
Session, 2017, may be spent by the State Securities Board as the
Securities Commissioner directs. The board shall repay to the
general revenue fund the appropriation made to the agency for the
state fiscal year ending August 31, 2018, not later than that date
and as funds become available. The board shall repay to the general
revenue fund the appropriation made to the board for the state
fiscal year ending August 31, 2019, not later than that date and as
funds become available.
SECTION 8. The transfer of the State Securities Board to
self-directed and semi-independent status under this Act, and the
expiration of self-directed and semi-independent status may not act
to cancel, suspend, or prevent:
(1) any debt owed to or by the State Securities Board;
(2) any fine, tax, penalty, or obligation of any
party;
(3) any contract or other obligation of any party; or
(4) any action taken by the State Securities Board,
the Securities Commissioner, or the board's employees in the
administration or enforcement of the agency's duties.
SECTION 9. The State Securities Board shall continue to
have and exercise the powers and duties allocated to the board in
the board's enabling legislation, except as specifically amended by
this Act.
SECTION 10. Title to or ownership of all supplies,
materials, records, equipment, books, papers, and furniture used by
the State Securities Board is transferred to the State Securities
Board in fee simple. This Act does not affect any property owned by
the State Securities Board on or before the effective date of this
Act.
SECTION 11. Beginning September 1, 2017, the State
Securities Board shall pay rent to this state in a reasonable amount
to be determined by the Texas Facilities Commission for its use and
occupancy of state-owned office space.
SECTION 12. This Act takes effect September 1, 2017.