Texas Senate Bill SB622

Texas 2019 - 86th Regular

Caption

Relating to the continuation and functions of the State Securities Board.

Impact

This legislation seeks to modify existing statutes found in the Securities Act to ensure ongoing oversight of the Board’s activities. Notably, by amending training requirements for Board members, the bill elevates the qualifications and knowledge base necessary for effective regulation of the securities market. The introduction of procedures for refunds to clients, rather than solely penalizing with administrative penalties, reflects a more consumer-centric approach to enforcement and aims at restoring confidence in the securities operations monitored by the Board.

Summary

Senate Bill 622 pertains to the continuation and functions of the State Securities Board in Texas. One of the central themes of the bill is the requirement for the board to report annually to the Governor and legislative leadership on its administration efforts, also detailing financial transactions and progress on criminal prosecutions related to securities violations. The bill advances governance by enforcing accountability and transparency measures, thus aiming to enhance the operational efficacy of the State Securities Board in regulating securities operations statewide.

Contention

While the core intent of SB 622 is to streamline and strengthen the functions of the State Securities Board, the changes proposed may trigger debates regarding the allocation of resources for training and compliance. Moreover, the enforcement of refunds in lieu of administrative penalties could lead to contention over perceived leniency or inadequacies in accountability measures. Stakeholders within the financial sector may raise concerns about how these legislative adaptations will affect their operations and compliance obligations going forward.