Texas Register, Volume 38, Number 40, Pages 6747-6996, October 4, 2013 Page: 6,783
6747-6996 p. ; 28 cm.View a full description of this periodical.
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A related form is being concurrently proposed as is a compara-
ble amendment for dealer and agent applications.
Subsection (a) would be changed to add definitions for "military
service member" and "military veteran" and amend the definition
for "military spouse" to comport with the definitions added by SB
162.
The procedure in the current rule is preserved in subsection (b).
It allows a military spouse to request special consideration of
his or her application if the application is not processed within
five calendar days of submission. Applicants going forward un-
der this procedure would have to meet all the requirements to
obtain a registration; they would "jump to the head of the line"
in the review process so deficiencies would be identified earlier
and addressed. A change is being made to give the staff five
business days, rather than five calendar days, to respond to the
applicant.
Subsection (c) addresses the new procedure, added by SB 162,
that would also be applicable to military spouses. It would apply
to a military spouse licensed in another jurisdiction or through a
branch of the armed forces as long as the requirements for that li-
cense are substantially equivalent to the Texas requirements. An
applicant who qualifies for special consideration under this provi-
sion would be registered despite having deficiencies that would
hold up a regular registration. Staff will notify the military spouse
of all deficiencies within five business days from approval of the
registration. The applicant then has a 12-month "grace period"
to remedy the deficiencies. The registration of an applicant who
has failed to resolve the deficiencies at the end of the 12-month
period will be automatically terminated.
Staff does not anticipate many applicants will use this procedure.
The most common deficiency seen at registration is a lack of re-
quired examinations. Since most other states require the same
examinations for investment adviser/investment adviser repre-
sentative registration as Texas, the prerequisite that the appli-
cant be licensed in another state will mean that they will likely
already have taken and passed the examinations required for
Texas registration.
Subsection (d) sets out the new procedure, added by SB 162, for
military service members and military veterans. The new proce-
dure allows comparable military service, training, or education
to be credited towards the registration requirements, except for
an examination requirement. Staff is not currently aware of any
military experience that would be eligible for such credit. This
procedure would not be available to military service members
or veterans whose registration in another state is not in good
standing or who have been convicted of a crime that could be
the grounds for denial of registration under 14.A of the Texas
Securities Act.
The provisions in subsection (e) are relocated from other provi-
sions in the existing rule and made applicable to all of the special
circumstances addressed in subsections (b) through (d).
Subsection (f) allows for additional information requests for ap-
plicants receiving special consideration. Although not exhaus-
tive, an applicant may be required to provide documentation to
demonstrate his or her military status that qualifies the applicant
for special consideration under the rule, information on training
or other competency that would substitute for an application re-
quirement, or information to assist staff in determining financial
responsibility, business repute, or qualifications.The requests for special consideration under this section would
be made on new Form 133.4, Request for Special Considera-
tion of a Registration Application by a Military Spouse, Military
Service Member, or Military Veteran, which would replace the
current Form 133.4, Military Spouse Request for Expedited Re-
view.
Patricia Loutherback, Director, Registration Division, and Tommy
Green, Director, Inspections and Compliance Division, have de-
termined that for the first five-year period the rule is in effect,
there will be no foreseeable fiscal implications for state or local
government as a result of enforcing or administering the rule.
Ms. Loutherback and Mr. Green also have determined that for
each year of the first five years the rule is in effect, the public ben-
efit anticipated as a result of enforcing the rule will be that a mil-
itary spouse already licensed in another jurisdiction can receive
special consideration when applying for registration in Texas and
a military service member or veteran can receive credit for com-
parable military service, training or education when applying for
Texas registration. There will be no effect on micro- or small
businesses. There is no anticipated economic cost to persons
who are required to comply with the rule as proposed. There is
no anticipated impact on local employment.
Comments on the proposal to be considered by the Board should
be submitted in writing within 30 days after publication of the
proposed section in the Texas Register. Comments should be
sent to Marlene K. Sparkman, General Counsel, State Securities
Board, P.O. Box 13167, Austin, Texas 78711-3167 or sent by
facsimile to (512) 305-8336.
The amendment is proposed under Texas Civil Statutes, Article
581-28-1 and Chapter 55 of the Texas Occupations Code. Sec-
tion 28-1 provides the Board with the authority to adopt rules
and regulations necessary to carry out and implement the pro-
visions of the Texas Securities Act, including rules and regula-
tions governing registration statements and applications; defin-
ing 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 per-
son who is a military spouse, military service member, or military
veteran who meets certain criteria.
The proposal affects Texas Civil Statutes, Articles 581-12, 581-
13, 581-14, 581-15, and 581-18.
116.18. Special Application Provisions Available to a [Qualified]
Military Spouse, Military Service Member, or Military Veteran
[Request forw ~peditedReview of an Application fr Registration].
(a) Definitions. The following words and terms, when used
in this section, shall have the following meanings, unless the context
clearly indicates otherwise.
(1) Current registration--A registration or license that is:
(A) issued by another state, the District of Columbia, or
a territory of the United States that has registration requirements that
are substantially equivalent to the requirements for a Texas registration
in the same capacity;
(B)- (C) (No change.)
(2) (No change.)
(3) [Qualified] Military spouse--An applicant who is
married to a military service member who is currently [the spouse
f an individual serving] on active duty. [as a member of the armedPROPOSED RULES October 4, 2013 38 TexReg 6783
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Texas. Secretary of State. Texas Register, Volume 38, Number 40, Pages 6747-6996, October 4, 2013, periodical, October 4, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth342082/m1/37/: accessed May 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.