Texas Vernon's Texas Civil Statutes - Article 581-2. Creating The State Securities Board And Providing For Appointment Of Securities Commissioner
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Art. 581-2. CREATING THE STATE SECURITIES BOARD AND
PROVIDING FOR APPOINTMENT OF SECURITIES COMMISSIONER. A. The
State Securities Board is hereby created. The Board shall consist
of five citizens of the state appointed by the governor with the
advice and consent of the Senate. Members of the Board serve for
staggered terms of six years, with as near as possible to one-third
of the members' terms expiring January 20 of each odd-numbered
year. Vacancies shall be filled by the Governor for the unexpired
term. Members shall be eligible for reappointment. Appointments
to the Board shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the
appointees.
B. Board members must be members of the general public. A
person is not eligible for appointment as a member if the person or
the person's spouse:
(1) is registered as a dealer, agent, investment adviser, or
investment adviser representative;
(2) has an active notice filing under this Act to engage in
business in this state as an investment adviser or investment
adviser representative;
(3) is employed by or participates in the management of a
business entity engaged in business as a securities dealer or
investment adviser; or
(4) has, other than as a consumer, a financial interest in a
business entity engaged in business as a securities dealer or
investment adviser.
D. Each member of the Board is entitled to 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.
E. It is a ground for removal from the Board that a member:
(1) does not have at the time of taking office the
qualifications required by Subsection A or B of this section for
appointment to the Board;
(2) does not maintain during service on the Board the
qualifications required by Subsection A or B of this section for
appointment to the Board;
(3) is ineligible for membership under Subsection B of this
section or Subsection B or C of Section 2-1 of this Act;
(4) cannot, because of illness or disability, discharge the
member's duties for a substantial part of the member's term; or
(5) is absent from more than half of the regularly scheduled
Board meetings that the member is eligible to attend during a
calendar year without an excuse approved by a majority vote of the
Board.
F. The validity of an action of the Board is not affected by
the fact that it is taken when a ground for removal of a Board member
exists. If the Commissioner has knowledge that a potential ground
for removal exists, the Commissioner shall notify the presiding
officer of the Board of the potential ground. The presiding officer
shall then notify the Governor and the attorney general that a
potential ground for removal exists. If the potential ground for
removal involves the presiding officer, the Commissioner shall
notify the next highest ranking officer of the Board, who shall then
notify the Governor and the attorney general that a potential
ground for removal exists.
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.
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.
H. The Commissioner, with the consent of the Board, may
designate a Deputy Securities Commissioner who shall perform all
the duties required by law to be performed by the Securities
Commissioner when the said Commissioner is absent or unable to act
for any reason. The Commissioner shall appoint other persons as
necessary to carry out the powers and duties of the Commissioner
under this Act and other laws granting jurisdiction or applicable
to the Board or the Commissioner. The Commissioner may delegate to
the other persons appointed under this subsection powers and duties
of the Commissioner as the Commissioner considers necessary.
I. Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(48).
J. On or before January 1 of each year, the Board, with the
advice of the Commissioner, shall report to the Governor and the
presiding officer of each house of the Legislature as to its
administration of this Act, as well as plans and needs for future
securities regulation. The report must include a detailed
accounting of all funds received and disbursed by the Board during
the preceding year.
K. 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.
L. The Board shall prepare information of consumer interest
describing the regulatory functions of the Board and Commissioner
and describing the Board's and Commissioner's procedures by which
consumer complaints are filed with and resolved by the Board or
Commissioner. The Board shall make the information available to
the general public and appropriate state agencies. There shall be
prominently displayed at all times in the place of business of each
dealer, agent, investment adviser, or investment adviser
representative regulated under this Act, a sign containing the
name, mailing address, and telephone number of the Board and a
statement informing consumers that complaints against a dealer,
agent, investment adviser, or investment adviser representative
may be directed to the Board.
M. The financial transactions of the Board are subject to
audit by the state auditor in accordance with Chapter 321,
Government Code.
N. The Board and Commissioner are subject to Chapters 551,
2001, and 2002, Government Code.
O. The State Securities Board is subject to Chapter 325,
Government Code (Texas Sunset Act). Unless continued in existence
as provided by that chapter, the board is abolished and this Act
expires September 1, 2013 .
Acts 1957, 55th Leg., p. 575, ch. 269, Sec. 2.
Subsec. F added by Acts 1977, 65th Leg., p. 1841, ch. 735, Sec.
2.066, eff. Aug. 29, 1977. Amended by Acts 1983, 68th Leg., p.
2688, ch. 465, Sec. 1, eff. Sept. 1, 1983. Subsec. C amended by Acts
1985, 69th Leg., ch. 479, Sec. 5, eff. Sept. 1, 1985; Subsec. O
amended by Acts 1985, 69th Leg., ch. 479, Sec. 83, eff. Sept. 1,
1985; Subsec. M amended by Acts 1989, 71st Leg., ch. 584, Sec. 13,
eff. Sept. 1, 1989; Subsec. O amended by Acts 1991, 72nd Leg., 1st
C.S., ch. 17, Sec. 5.07, eff. Nov. 12, 1991; Subsec. N amended by
Acts 1995, 74th Leg., ch. 228, Sec. 1, eff. Sept. 1, 1995. Amended
by Acts 2001, 77th Leg., ch. 1091, Sec. 1.01, eff. Sept. 1, 2001;
Subsec. I amended by Acts 2003, 78th Leg., ch. 285, Sec. 31(48),
eff. Sept. 1, 2003.
Article: 196 197i 326k-90 581-1 581-2 581-2-1 581-2-2 581-2-3 581-2-4 581-2-5 581-2-6 581-2-7
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Last modified: August 10, 2007
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