reglab/statecodes huggingface dataset:
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter B. Exempt Securities › Section 4005.055. Commercial Paper

Sec. 4005.055.  COMMERCIAL PAPER.  The exemption provided by Section 4005.051 applies to:
(1)  commercial paper that:
(A)  arises out of a current transaction or the proceeds of which have been or are to be used for current transactions; and
(B)  evidences an obligation to pay cash not later than the ninth month after the issuance date of the commercial paper, not including days of grace;
(2)  a renewal of commercial paper described by Subdivision (1) that is similarly limited; or
(3)  a guarantee of commercial paper described by Subdivision (1) or of a renewal described by Subdivision (2).
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter B. Exempt Securities › Section 4005.056. Secured Debt

Sec. 4005.056.  SECURED DEBT.  The exemption provided by Section 4005.051 applies to notes, bonds, or other evidence of indebtedness or certificates of ownership that:
(1)  are equally and proportionately secured without reference of priority of one over another; and
(2)  by the terms of the instrument creating the lien, continue to be secured by the deposit with a trustee of recognized responsibility approved by the commissioner of any of the securities specified in:
(A)  Section 4005.017, if the deposited securities have an aggregate par value of not less than 110 percent of the par value of the securities being secured; or
(B)  Section 4005.052, if the deposited securities have an aggregate par value of not less than 125 percent of the par value of the securities being secured.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter B. Exempt Securities › Section 4005.057. Nonprofit Debt

Sec. 4005.057.  NONPROFIT DEBT.  The exemption provided by Section 4005.051 applies to notes, bonds, or other evidence of indebtedness of a religious, charitable, or benevolent corporation.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter B. Exempt Securities › Section 4005.058. Suspension of Exempt Status of Trading System

Sec. 4005.058.  SUSPENSION OF EXEMPT STATUS OF TRADING SYSTEM.  (a)  The commissioner, by the same procedures described by Section 4005.105, may at any time suspend the exempt status of any trading system exempted by the legislature on or after January 1, 1989, if at the time of the hearing the trading system does not meet the applicable standards for approval of exchanges provided by this title.
(b)  The suspension of a trading system under Subsection (a) has the same effect as the withdrawal of approval of a stock exchange under Section 4005.105.
(c)  The suspension under Subsection (a) remains in effect until the commissioner by order determines that the trading system:
(1)  has corrected each deficiency on which the suspension was based; and
(2)  maintains standards and procedures that provide reasonable protection to the public.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter C. Procedures for Approval of Stock Exchange › Section 4005.101. Application for Approval

Sec. 4005.101.  APPLICATION FOR APPROVAL.  An organized stock exchange may apply to the commissioner for approval in the manner and on the forms the commissioner prescribes.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter C. Procedures for Approval of Stock Exchange › Section 4005.102. Approval of Stock Exchange

Sec. 4005.102.  APPROVAL OF STOCK EXCHANGE.  The commissioner may approve a stock exchange only if the commissioner finds that the facts and data provided with the application establish that:
(1)  the requirements for the listing of securities on the exchange seeking approval provide reasonable protection to the public; and
(2)  the governing constitution, bylaws, or regulations of the exchange require:
(A)  an adequate examination into the affairs of the issuer of the securities to be listed on the exchange before permitting trading on the exchange;
(B)  that the issuer of the securities, while the securities are listed on the exchange, shall periodically prepare, make public, and provide promptly to the exchange appropriate income, profit and loss, and other financial statements;
(C)  that securities listed and traded on the exchange be restricted to securities of ascertained, sound asset or income value; and
(D)  a reasonable surveillance of the exchange's members, including a requirement for periodical financial statements, a determination of the members' financial responsibility, and the right and obligation of the exchange's governing body to suspend or expel any member found:
(i)  to be financially embarrassed or irresponsible; or
(ii)  guilty of misconduct in the member's business dealings or of conduct prejudicial to the rights and interests of the member's customers.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter C. Procedures for Approval of Stock Exchange › Section 4005.103. Investigation and Hearing

Sec. 4005.103.  INVESTIGATION AND HEARING.  The commissioner may approve a stock exchange only after a reasonable investigation and hearing.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter C. Procedures for Approval of Stock Exchange › Section 4005.104. Order of Approval

Sec. 4005.104.  ORDER OF APPROVAL.  The commissioner's approval of a stock exchange must be made by a written order based on a finding of fact substantially in accordance with the requirements of Sections 4005.101 and 4005.102.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4005 - Exemptions › Subchapter C. Procedures for Approval of Stock Exchange › Section 4005.105. Withdrawal of Approval

Sec. 4005.105.  WITHDRAWAL OF APPROVAL.  At any time, the commissioner, on 10 days' notice and hearing, may withdraw approval of a stock exchange that at the time of the hearing does not meet the standards for approval under this title.  On the withdrawal of approval, securities listed on the exchange are not exempt from this title until the commissioner issues an order approving the exchange.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter A. Certain Registration and Notice Filing Fees › Section 4006.001. Certain Registration and Notice Filing Fees

Sec. 4006.001.  CERTAIN REGISTRATION AND NOTICE FILING FEES.  The board shall establish the following fees 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 title:
(1)  for filing an original, amended, or renewal application or registration statement to sell or dispose of securities, an amount not to exceed $100;
(2)  for filing an original application of a dealer or investment adviser or submitting a notice filing for a federal covered investment adviser, an amount not to exceed $100;
(3)  for filing a renewal application of a dealer or investment adviser or submitting a renewal notice filing for a federal covered investment adviser, an amount not to exceed $100;
(4)  for filing an original application for each agent, officer, or investment adviser representative or submitting a notice filing for each representative of a federal covered investment adviser, an amount not to exceed $100; and
(5)  for filing a renewal application for each agent, officer, or investment adviser representative or submitting a renewal notice filing for each representative of a federal covered investment adviser, an amount not to exceed $100.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.051. Notice for Secondary Trading Exemption

Sec. 4006.051.  NOTICE FOR SECONDARY TRADING EXEMPTION.  The commissioner or board shall charge and collect:
(1)  a fee of $500 for filing an initial notice required by the commissioner to claim a secondary trading exemption; and
(2)  a fee of $500 for filing a secondary trading exemption renewal notice.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.052. Notice for Limited Offering Exemption

Sec. 4006.052.  NOTICE FOR LIMITED OFFERING EXEMPTION.  (a)  Subject to Subsection (b), for filing an initial notice required by the commissioner to claim a limited offering exemption, the commissioner or board shall charge and collect a fee of one-tenth of one percent of the aggregate amount of securities described as being offered for sale.
(b)  A fee charged under this section may not exceed $500.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.053. Application for Approval of Stock Exchange

Sec. 4006.053.  APPLICATION FOR APPROVAL OF STOCK EXCHANGE.  The commissioner or board shall charge and collect a fee of $10,000 for filing an application for approval of a stock exchange.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.054. Amendment or Duplicate of Registration Certificate or Evidence of Registration

Sec. 4006.054.  AMENDMENT OR DUPLICATE OF REGISTRATION CERTIFICATE OR EVIDENCE OF REGISTRATION.  The commissioner or board shall charge and collect a fee of $25 for a filing to:
(1)  amend the registration certificate of a dealer or investment adviser or the evidence of registration of an agent or investment adviser representative; or
(2)  issue a duplicate certificate or evidence of registration.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 9.107, eff. January 1, 2022.
Sec. 4006.055.  EXAMINATION OF CERTAIN APPLICATIONS OR REGISTRATION STATEMENTS.  (a)  For the examination of an original or amended application or registration statement filed under Subchapter A, B, or C, Chapter 4003, the commissioner or board shall charge and collect a fee of one-tenth of one percent of the aggregate amount of securities described and proposed to be sold to persons located in this state based on the price at which the securities will be offered to the public.
(b)  A fee under this section applies regardless of whether the application or registration statement is denied, abandoned, withdrawn, or approved.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.056. Certified Copies

Sec. 4006.056.  CERTIFIED COPIES.  (a)  For a certified copy of any papers filed in the office of the commissioner, the commissioner shall charge and collect a fee that is reasonably related to the costs of producing the certified copy.
(b)  A fee charged under this section may not be more than a fee that the secretary of state is authorized to charge for a similar service.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.057. Request to Take Examination

Sec. 4006.057.  REQUEST TO TAKE EXAMINATION.  The commissioner or board shall charge and collect a fee of $35 for filing a request to take the Texas Securities Law Examination.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter B. Exemption Fees and Other Fees › Section 4006.058. Interpretation by General Counsel

Sec. 4006.058.  INTERPRETATION BY GENERAL COUNSEL.  (a)  Except as provided by Subsection (b), the commissioner or board shall charge and collect a fee of $100 for an interpretation by the board's general counsel of this title or a rule adopted under this title.
(b)  An officer or employee of a governmental entity and the entity that the officer or employee represents are exempt from the fee under this section if the officer or employee is conducting official business of the entity.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter C. Provisions Applicable to Certain Fees › Section 4006.101. Reasonable and Necessary Requirement

Sec. 4006.101.  REASONABLE AND NECESSARY REQUIREMENT.  Subject to Subchapter A, the board shall set a fee under Subchapters A and B in an amount that is reasonable and necessary to defray costs.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter C. Provisions Applicable to Certain Fees › Section 4006.102. Reduced Fees

Sec. 4006.102.  REDUCED FEES.  (a)  The board by rule may adopt reduced fees under Section 4006.001 for original and renewal applications of dealers, agents, officers, investment advisers, or investment adviser representatives who have assumed inactive status as defined by the board.
(b)  The board by rule may adopt reduced fees under Section 4006.001 as appropriate to accommodate a small business required by this title to register in two or more of the following capacities:
(1)  dealer;
(2)  agent;
(3)  investment adviser;
(4)  investment adviser representative; or
(5)  officer.
(c)  A person is not required to pay more than one fee required under Section 4006.001 to engage in business in this state concurrently for the same person or company as:
(1)  a dealer and an investment adviser; or
(2)  an agent and investment adviser representative.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter C. Provisions Applicable to Certain Fees › Section 4006.103. Payment of Certain Costs

Sec. 4006.103.  PAYMENT OF CERTAIN COSTS.  A cost incurred by the board in administering this title may be paid only from a fee collected under Section 4006.001.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter C. Provisions Applicable to Certain Fees › Section 4006.104. Refund of Registration Fee

Sec. 4006.104.  REFUND OF REGISTRATION FEE.  If the commissioner or board determines that all or part of a registration fee should be refunded, the commissioner may make the refund by warrant on the state treasury from money appropriated from the general revenue fund for that purpose.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter D. Fees for Certain Sales or Offers of Securities › Section 4006.151. Fee for Sale of Excess Securities

Sec. 4006.151.  FEE FOR SALE OF EXCESS SECURITIES.  (a)  An offeror who sells securities in this state in excess of the aggregate amount of securities registered for the offering may apply to register the excess securities by paying:
(1)  three times the difference between the initial fee paid and the fee required under Section 4006.055 for the securities sold to persons in this state;
(2)  if the registration is no longer in effect, interest on that amount computed at the rate provided by Section 302.002, Finance Code, from the date the registration was no longer in effect until the date the subsequent application is filed; and
(3)  the amendment fee prescribed by Section 4006.001(1).
(b)  If an application to register excess securities is granted under Subsection (a), the registration of the excess securities is effective retroactively to the effective date of the initial registration for the offering.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter D. Fees for Certain Sales or Offers of Securities › Section 4006.152. Fee for Exceeding Limited Offering Exemption

Sec. 4006.152.  FEE FOR EXCEEDING LIMITED OFFERING EXEMPTION.  (a)  This section applies only to an offeror who:
(1)  has filed a notice to claim a limited offering exemption;
(2)  paid less than the maximum fee prescribed by Section 4006.052; and
(3)  offered a greater amount of securities in the offering than authorized pursuant to the formula prescribed by Section 4006.052.
(b)  An offeror may:
(1)  file an amended notice disclosing the amount of securities offered; and
(2)  pay:
(A)  three times the difference between the fee initially paid and the fee that should have been paid; and
(B)  interest on that amount computed at the rate provided by Section 302.002, Finance Code, from the date the commissioner received the original notice until the date the commissioner received the amended notice.
(c)  An amended notice filed under Subsection (b) is retroactive to the date of the initial filing of the notice to claim the exemption.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter D. Fees for Certain Sales or Offers of Securities › Section 4006.153. Fee for Sales of Unregistered Securities

Sec. 4006.153.  FEE FOR SALES OF UNREGISTERED SECURITIES.  (a)  If, after notice and hearing, the commissioner or a court finds that an offeror has sold securities in this state pursuant to an offering no part of which has been registered under Chapter 4003 and for which the transactions or securities are not exempt under Chapter 4005, the commissioner or court may impose a fee equal to:
(1)  six times the amount that would have been paid if the issuer had filed an application or registration statement to register the securities and paid the fee required under Section 4006.055 based on the aggregate amount of sales made in this state in the preceding three years; and
(2)  interest on that amount at the rate provided by Section 302.002, Finance Code, from the date of the first such sale made in this state until the date the fee is paid.
(b)  Payment of the fee prescribed by this section does not effect registration of the securities or affect the application of any other provision of this title.
(c)  Payment of the fee prescribed by this section is not an admission that the transactions or securities were not exempt and is not admissible as evidence in a suit or proceeding for failure to register the securities.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter E. Miscellaneous Fees › Section 4006.201. Renewal of Registration by Notification

Sec. 4006.201.  RENEWAL OF REGISTRATION BY NOTIFICATION.  A registration of securities by notification may be renewed as provided by Section 4003.058, which includes the payment of the renewal fee in the amount prescribed by that section.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter F. Deposit of Fees › Section 4006.251. Deposit of Fees to General Revenue Fund

Sec. 4006.251.  DEPOSIT OF FEES TO GENERAL REVENUE FUND.  The commissioner or board shall deposit money received from fees under this title to the credit of the general revenue fund.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4006 - Fees › Subchapter F. Deposit of Fees › Section 4006.252. Daily Deposit of Certain Fees

Sec. 4006.252.  DAILY DEPOSIT OF CERTAIN FEES.  The commissioner or board shall deposit daily all fees received under Subchapter B to the credit of the general revenue fund.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter A. Authority to Enforce Title › Section 4007.002. Means of Enforcement Not Exclusive

Sec. 4007.002.  MEANS OF ENFORCEMENT NOT EXCLUSIVE.  The commissioner may use any or all penalties, sanctions, remedies, or relief that the commissioner considers necessary.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.051. Complaints Filed With Commissioner or Board

Sec. 4007.051.  COMPLAINTS FILED WITH COMMISSIONER OR BOARD.  (a) The commissioner or the commissioner's designee shall maintain a system to promptly and efficiently act on complaints filed with the commissioner or board concerning a person registered under this title. The commissioner or the commissioner's designee shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition.
(b)  The commissioner or the commissioner's designee shall  make information available describing the board's procedures for complaint investigation and resolution.
(c)  The commissioner or the commissioner's designee shall periodically notify the complaint parties of the status of the complaint until final disposition unless the notice would jeopardize a law enforcement investigation.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 9.103, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.052. Inspections

Sec. 4007.052.  INSPECTIONS.  (a)  The commissioner without notice may inspect a registered dealer or registered investment adviser as necessary to ensure compliance with this title and board rules.
(b)  The commissioner, during regular business hours, may enter the business premises of a registered dealer or registered investment adviser and examine and copy books and records pertinent to the inspection.
(c)  During the inspection, the registered dealer or registered investment adviser shall:
(1)  provide to the commissioner or the commissioner's authorized representative immediate and complete access to the registered dealer's or registered investment adviser's office, place of business, files, safe, and any other location at which books and records pertinent to the inspection are located; and
(2)  allow the commissioner or the commissioner's authorized representative to make photostatic or electronic copies of books or records subject to inspection.
(d)  A registered dealer or registered investment adviser may not charge a fee for copying information under this section.
(e)  Information obtained under this section and any intra-agency or interagency notes, memoranda, reports, or other communications consisting of advice, analyses, opinions, or recommendations that are made in connection with the inspection are confidential.  The commissioner may not disclose to the public or release documents or other information made confidential by this subsection except to the same extent provided for the release or disclosure of confidential documents or other information made or obtained in connection with an investigation under Section 4007.053.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.053. Investigative Authority

Sec. 4007.053.  INVESTIGATIVE AUTHORITY.  (a)  The commissioner shall conduct investigations as the commissioner considers necessary to prevent or detect a violation of this title or a board rule or order.
(b)  For the purpose of conducting an investigation under this section, the commissioner may:
(1)  administer oaths;
(2)  sign subpoenas;
(3)  issue subpoenas or summons to compel the attendance and testimony of witnesses and the production of all records, electronic or otherwise, relating to any matter that the commissioner has the authority under this title to consider or investigate;
(4)  examine witnesses; and
(5)  receive evidence.
(c)  During an investigation, the commissioner may cause the deposition of witnesses residing inside or outside this state to be taken in the manner prescribed by the laws of this state for taking a deposition in a civil action.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.054. Service of Subpoena, Summons, or Other Process

Sec. 4007.054.  SERVICE OF SUBPOENA, SUMMONS, OR OTHER PROCESS.  (a)  The commissioner may serve a subpoena, summons, or other process issued by the commissioner or have the subpoena, summons, or other process served by an authorized agent of the commissioner, a sheriff, or a constable.
(b)  The sheriff's or constable's fee for serving the subpoena is the same as the fee paid the sheriff or constable for similar services.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.055. Enforcement of Subpoena; Contempt

Sec. 4007.055.  ENFORCEMENT OF SUBPOENA; CONTEMPT.  (a)  If a person disobeys a subpoena or if a witness appearing before the commissioner refuses to give evidence, the commissioner may petition the district court of a jurisdiction in which the person or witness may be found, and the court on this petition may issue an order requiring the person or witness to, as applicable, obey the subpoena, testify, or produce a book, an account, a record, a paper, and correspondence relating to the matter in question.
(b)  The district court may punish as contempt the failure to obey an order under Subsection (a).
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.056. Confidentiality of Investigative Information

Sec. 4007.056.  CONFIDENTIALITY OF INVESTIGATIVE INFORMATION.  (a)  All information received in connection with an investigation under Section 4007.053 and all internal notes, memoranda, reports, or communications made in connection with an investigation under that section are confidential.
(b)  The commissioner may not disclose a document or other information made confidential by Subsection (a) unless the disclosure is made:
(1)  to the public under court order for good cause shown; or
(2)  at the commissioner's discretion, as part of an administrative proceeding or a civil or criminal action to enforce this title.
(c)  The commissioner, at the commissioner's discretion, may disclose confidential information in the commissioner's possession to:
(1)  a governmental or regulatory authority or any association of governmental or regulatory authorities approved by board rule; or
(2)  any receiver appointed under Section 4007.151.
(d)  Disclosure of information under Subsection (c) does not violate any other provision of this title or Chapter 552.
(e)  This section may not be interpreted to prohibit or limit the publication of rulings or decisions of the commissioner.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.057. Compensation of Witnesses

Sec. 4007.057.  COMPENSATION OF WITNESSES.  (a)  A witness required to attend a hearing before the commissioner shall receive for each day's attendance a fee in an amount set by board rule.
(b)  A disbursement made in payment of a fee under this section shall be:
(1)  made in accordance with board rule; and
(2)  included in, and paid in the same manner that is provided for, the payment of other expenses incurred in the administration and enforcement of this title.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.058. Imposition of Costs on Parties

Sec. 4007.058.  IMPOSITION OF COSTS ON PARTIES.  The commissioner may impose on a party of record fees, expenses, or costs incurred in connection with a hearing or may divide the fee, expense, or cost among any or all parties of record as determined by the commissioner.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter B. Inspections and Investigations › Section 4007.059. Assistance to Securities Regulators in Other Jurisdictions

Sec. 4007.059.  ASSISTANCE TO SECURITIES REGULATORS IN OTHER JURISDICTIONS.  (a) On request from a securities regulator of another state or of a foreign jurisdiction, the commissioner may provide assistance to the regulator in conducting an investigation to determine whether a person has violated, is violating, or is about to violate a law or rule of the other state or foreign jurisdiction relating to a securities matter that the regulator is authorized to administer or enforce.
(b)  The commissioner may provide assistance under this section through the use of the authority to investigate and any other power conferred by this section or Section 4007.054, 4007.055, 4007.056, or 4007.057, as the commissioner determines to be necessary and appropriate.
(c)  In determining whether to provide assistance under this section, the commissioner may consider whether:
(1)  the securities regulator is permitted and has agreed to provide assistance within the regulator's jurisdiction to the commissioner reciprocally and at the commissioner's request concerning securities matters;
(2)  compliance with the request for assistance would violate or otherwise prejudice the public policy of this state;
(3)  the conduct described in the request would also constitute a violation of this title or another law of this state had the conduct occurred in this state; and
(4)  board employees and board or commissioner resources necessary to carry out the request for assistance are available.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.101. Cease and Desist Order: Offer or Sale of Securities

Sec. 4007.101.  CEASE AND DESIST ORDER: OFFER OR SALE OF SECURITIES.  (a)  The commissioner may hold a hearing as provided by this section if at any time it appears to the commissioner that the sale, proposed sale, or method of sale of securities, regardless of whether exempt:
(1)  is a fraudulent practice;
(2)  does not comply with this title;
(3)  would tend to work a fraud on any purchaser of the securities; or
(4)  would not be fair, just, or equitable to any purchaser of the securities.
(b)  The commissioner may hold a hearing under this section on a date set by the commissioner that is not later than the 30th day after the date the issuer or registrant of the securities, the person on whose behalf the securities are being or will be offered, or any person that is acting as a dealer or agent in violation of this title, as applicable:
(1)  receives actual notice; or
(2)  is provided notice by registered or certified mail to the person's last known address.
(c)  If the commissioner determines at the hearing that the sale, proposed sale, or method of sale of the securities is a fraudulent practice, does not comply with this title, would tend to work a fraud on any purchaser of the securities, or would not be fair, just, or equitable to any purchaser of the securities, the commissioner may issue a written cease and desist order:
(1)  prohibiting or suspending the sale of the securities;
(2)  denying or revoking the registration of the securities;
(3)  prohibiting an unregistered person from acting as a dealer or agent; or
(4)  prohibiting the fraudulent conduct.
(d)  After the issuance of a cease and desist order under Subsection (c), a dealer or agent may not knowingly sell or offer for sale any security named in the order.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.102. Cease and Desist Order: Investment Adviser or Investment Adviser Representative

Sec. 4007.102.  CEASE AND DESIST ORDER: INVESTMENT ADVISER OR INVESTMENT ADVISER REPRESENTATIVE.  (a)  Notwithstanding any provision of this title to the contrary, the commissioner may hold a hearing as provided by this section if at any time it appears to the commissioner that:
(1)  an investment adviser or investment adviser representative is engaging or is likely to engage in fraud or a fraudulent practice with respect to rendering services as an investment adviser or investment adviser representative; or
(2)  a person is acting as an investment adviser or investment adviser representative in violation of this title.
(b)  A hearing under this section must be held not later than the 30th day after the date the person described by Subsection (a):
(1)  receives actual notice; or
(2)  is provided notice by registered or certified mail, return receipt requested, to the person's last known address.
(c)  After the hearing, the commissioner shall issue or decline to issue a cease and desist order.  An order issued under this subsection must:
(1)  require the investment adviser or investment adviser representative to immediately cease and desist from the fraudulent conduct; or
(2)  prohibit an unregistered or other unauthorized person who is not exempt from the registration or notice filing requirements of this title from acting as an investment adviser or investment adviser representative in violation of this title.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.103. Cease Publication Order

Sec. 4007.103.  CEASE PUBLICATION ORDER.  (a)  Notwithstanding any provision of this title to the contrary, the commissioner may issue a cease publication order if at any time it appears to the commissioner that an offer contains any statement that is materially false or misleading or is otherwise likely to deceive the public.
(b)  A person may not make an offer that is prohibited by an order issued under Subsection (a).
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.104. Emergency Cease and Desist Order

Sec. 4007.104.  EMERGENCY CEASE AND DESIST ORDER.  (a) On the commissioner's determination that the conduct, act, or practice threatens immediate and irreparable public harm, the commissioner may issue an emergency cease and desist order to a person who the commissioner reasonably believes:
(1)  is engaging in or is about to engage in fraud or a fraudulent practice in connection with:
(A)  the offer for sale or sale of a security; or
(B)  the rendering of services as an investment adviser or investment adviser representative;
(2)  has made an offer containing a statement that is materially misleading or is otherwise likely to deceive the public; or
(3)  is engaging or is about to engage in an act or practice that violates this title or a board rule.
(b)  The emergency order must:
(1)  be sent on issuance to each person affected by the order by personal delivery or registered or certified mail, return receipt requested, to the person's last known address;
(2)  state the specific charges and require the person to immediately cease and desist from the unauthorized activity; and
(3)  contain a notice that a request for a hearing may be filed under this section.
(c)  Unless a person against whom the emergency order is directed requests a hearing in writing before the 31st day after the date the order is served on the person, the emergency order is final and nonappealable as to that person.  A request for a hearing must:
(1)  be in writing and directed to the commissioner; and
(2)  state the grounds for the request to set aside or modify the order.
(d)  On receiving a request for a hearing, the commissioner shall serve notice of the time and place of the hearing by personal delivery or registered or certified mail, return receipt requested.  The hearing must be held not later than the 10th day after the date the commissioner receives the request for a hearing unless the parties agree to a later hearing date.  At the hearing, the commissioner has the burden of proof and must present evidence in support of the emergency order.
(e)  After the hearing, the commissioner shall affirm, modify, or set aside, wholly or partly, the emergency order.  An order affirming or modifying the emergency order is immediately final for purposes of enforcement and appeal.
(f)  An emergency order continues in effect unless the order is stayed by the commissioner.  The commissioner may impose any condition before granting a stay of the order.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.106. Assessment of Administrative Fine

Sec. 4007.106.  ASSESSMENT OF ADMINISTRATIVE FINE.  (a)  In addition to any other remedies, the commissioner, after giving notice and opportunity for a hearing, may issue an order that assesses an administrative fine against a person or company found to have:
(1)  engaged in fraud or a fraudulent practice in connection with:
(A)  the offer for sale or sale of a security; or
(B)  the rendering of services as an investment adviser or investment adviser representative;
(2)  made an offer containing a statement that is materially misleading or is otherwise likely to deceive the public;
(3)  engaged in an act or practice that violates this title or a board rule or order; or
(4)  with intent to deceive or defraud or with reckless disregard for the truth or the law, materially aided any person in engaging in an act or practice described by Subdivision (1), (2), or (3).
(b)  An administrative fine assessed under this section when added to the amount of any civil penalty previously awarded under Section 4007.154 must be in an amount that does not exceed:
(1)  the greater of:
(A)  $20,000 per violation; or
(B)  the gross amount of any economic benefit gained by the person or company as a result of the act or practice for which the fine was assessed; and
(2)  if the act or practice was committed against a person 65 years of age or older, an additional amount of not more than $250,000.
(c)  For purposes of determining the amount of an administrative fine assessed under this section, the commissioner shall consider factors set out in guidelines established by the board.
(d)  For purposes of private civil litigation, the payment of a fine assessed in an agreed order under this title does not constitute an admission of any misconduct described in the order.
(e)  A proceeding for the assessment of an administrative fine must be commenced within five years after the violation occurs.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.107. Hearings on Certain Matters

Sec. 4007.107.  HEARINGS ON CERTAIN MATTERS.  (a)  A person or company may request a hearing to dispute the commissioner's:
(1)  failure or refusal to:
(A)  register and issue a certificate of registration for a dealer or investment adviser under Section 4004.054; or
(B)  register and issue evidence of registration for an agent or investment adviser representative under Section 4004.104;
(2)  issuance of an order under Section 4007.101, 4007.102, 4007.103, or 4007.104; or
(3)  taking of an action in any other particular matter for which no other procedure is specified by this title.
(b)  A hearing under Subsection (a) must be held before the commissioner or a hearings officer as required by law.
(c)  On complaint by a person aggrieved by the denial of a permit qualifying securities for sale under Subchapter A, Chapter 4003, or by the failure or refusal to register securities under Subchapter B or C, Chapter 4003, the board or a hearings officer, as required by law, shall conduct a hearing.
(d)  A hearing under this section is subject to Chapter 2001.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter C. Administrative Actions › Section 4007.108. Refund

Sec. 4007.108.  REFUND.  (a)  Subject to Subsection (b), the commissioner may order a dealer, agent, investment adviser, or investment adviser representative regulated under this title to pay a refund to a client or a purchaser of securities or services from the person or company as provided in an agreed order or an enforcement order instead of or in addition to imposing an administrative penalty or other sanctions.
(b)  The amount of a refund ordered as provided in an agreed order or an enforcement order may not exceed the amount the client or purchaser paid to the dealer, agent, investment adviser, or investment adviser representative for a service or transaction regulated by the board. The commissioner may not require payment of other damages or estimate harm in a refund order.
Added by Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 9.109, eff. January 1, 2022.
2023 Texas Statutes › Government Code › Title 12 - Securities Act › Chapter 4007 - Enforcement › Subchapter D. Civil Proceedings › Section 4007.152. Injunctive Relief

Sec. 4007.152.  INJUNCTIVE RELIEF.  (a)  The commissioner may request the attorney general to bring an action as provided by this section against a person or company if it appears to the commissioner, on complaint or otherwise, that the person or company:
(1)  has engaged, is engaging, or is about to engage in fraud or a fraudulent practice in connection with the sale of a security;
(2)  has engaged, is engaging, or is about to engage in fraud or a fraudulent practice in rendering services as an investment adviser or investment adviser representative;
(3)  has made an offer containing a statement that is materially misleading or is otherwise likely to deceive the public; or
(4)  has engaged, is engaging, or is about to engage in an act or practice that violates this title or a board rule or order.
(b)  On the commissioner's request under Subsection (a), the attorney general, in addition to other remedies, may bring an action in the name and on behalf of the state:
(1)  against:
(A)  a person or company described by Subsection (a);
(B)  any person who, with intent to deceive or defraud or with reckless disregard for the truth or the law, has materially aided, is materially aiding, or is about to materially aid the person or company; and
(C)  any other person concerned with or in any manner participating in or about to participate in the acts or practices described by Subsection (a); and
(2)  to enjoin the person or company and any other person described by Subdivision (1) from continuing the acts or practices that are the subject of the action for injunctive relief or from doing any act to further the acts or practices.
(c)  The facts contained in an application for injunctive relief must be verified by the commissioner on information and belief.
(d)  The attorney general may apply for and, on proper showing, is entitled to have a subpoena issued by the court that requires:
(1)  the appearance, without delay, of a defendant and any employee or agent of the defendant to testify and give evidence concerning the acts, conduct, or other matters complained about in the application for injunctive relief; and
(2)  the production of documents, books, and records that may be necessary for the hearing on the action.
(e)  A district court in any county in which it is shown that the acts that are the subject of the application for injunctive relief have been or are about to be committed or a district court in Travis County has jurisdiction and venue of an action brought under this section.  This subsection is superior to any provision establishing jurisdiction or venue with regard to an action for an injunction.
(f)  The commissioner or attorney general shall not be required to give a bond for injunction in an action brought under this section.
Added by Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 1.01, eff. January 1, 2022.