By:  Solomons, et al. (Senate Sponsor - Janek)                    H.B. No. 1840
	(In the Senate - Received from the House May 1, 2003; 
May 6, 2003, read first time and referred to Committee on Business 
and Commerce; May 23, 2003, reported favorably by the following 
vote:  Yeas 9, Nays 0; May 23, 2003, sent to printer.)

A BILL TO BE ENTITLED
AN ACT
relating to a fee established and set by the State Securities Board. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 35, The Securities Act (Article 581-35, Vernon's Texas Civil Statutes), is amended to read as follows: Sec. 35. FEES. A. 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 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. The Commissioner or Board shall charge and collect the following fees and shall daily pay all fees received into the State Treasury: (1) for [A. 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, Seventy-five Dollars ($75.00), and 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, Forty Dollars ($40.00); [B. 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, Thirty-five Dollars ($35.00), and 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, Twenty Dollars ($20.00); [C. 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 [Twenty-five Dollars ($25.00)]; (2) for [D. For the filing of any original, amended or renewal application to sell or dispose of securities, Ten Dollars ($10.00); [E. 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 [F. 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 [G. 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 [Ten Thousand Dollars ($10,000.00)]; (5) for [H. For] the filing of a request to take the Texas Securities Law Examination, $35 [Thirty-five Dollars ($35.00)]; (6) for [I. For] the filing of an initial notice required by the Commissioner to claim a secondary trading exemption, a fee of $500 [Five Hundred Dollars ($500.00)], and for the filing of a secondary trading exemption renewal notice, a fee of $500 [Five Hundred Dollars ($500.00)]; (7) for [J. 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 [Five Hundred Dollars ($500.00)]; and (8) for [K. For] an interpretation by the Board's general counsel of this Act or a rule adopted under this Act, a fee of $100 [One Hundred Dollars ($100.00)], 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. C. Subject to Subsection A of this section, the Board shall set a fee under this section in an amount that is reasonable and necessary to defray costs. D. A cost incurred by the Board in administering this Act may be paid only from a fee collected under Subsection A of this section. SECTION 2. Section 35-1, The Securities Act (Article 581-35-1, Vernon's Texas Civil Statutes), is amended to read as follows: Sec. 35-1. FEES FOR SALES 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 three times the difference between the initial fee paid and the fee required under Subsection B(2) [E] of Section 35, plus, 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, for the securities sold to persons within this State, plus the amendment fee prescribed by Subsection A(1) [D] of Section 35. Registration of the excess securities, if granted, shall be effective retroactively to the effective date of the initial registration for the offering. B. An offeror who has filed a notice to claim a limited offering exemption, who paid less than the maximum fee prescribed in Subsection B(7) [J] of Section 35, and who offered a greater amount of securities in the offering than authorized pursuant to the formula prescribed in Subsection B(7) [J] of Section 35, may file an amended notice disclosing the amount of securities offered and paying three times the difference between the fee initially paid and the fee which should have been paid, plus interest on that amount computed at the rate provided by Section 302.002, Finance Code, from the date the original notice was received by the Commissioner until the date the amended notice is received by the Commissioner. The amended notice shall be retroactive to the date of the initial filing. SECTION 3. Section 35-2, The Securities Act (Article 581-35-2, Vernon's Texas Civil Statutes), is amended to read as follows: Sec. 35-2. FEES FOR SALES OF UNREGISTERED SECURITIES. If, after notice and hearing, the commissioner or any court of competent jurisdiction finds that an offeror has sold securities in this State pursuant to an offering no part of which has been registered under Section 7 or 10 of this Act and for which the transactions or securities are not exempt under Section 5 or 6 of this Act, the commissioner or said court may impose a fee equal to six times the amount that would have been paid if the issuer had filed an application to register the securities and paid the fee prescribed by Subsection B(2) [E] of Section 35 based on the aggregate amount of sales made in this State within the prior three years, plus 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. The payment of the fee prescribed by this Section does not effect registration of the securities or affect the application of any other Section of this Act. The 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. SECTION 4. This Act applies only to a fee that becomes due on or after the effective date of this Act. The amount of a fee that becomes due before the effective date of this Act is governed by the law in effect when the fee becomes due, and that law is continued in effect for that purpose. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.
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