| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to filing requirements for a dealer in securities. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. The Securities Act (Article 581-1 et seq., |
|
|
Vernon's Texas Civil Statutes) is amended by adding Section 11-1 to |
|
|
read as follows: |
|
|
Sec. 11-1. FILING REQUIREMENTS FOR DEALERS. A. On filing |
|
|
with the Securities and Exchange Commission or a self-regulatory |
|
|
organization a record created and maintained in accordance with 17 |
|
|
C.F.R. Section 240.17a-3(a)(4)(v) or on filing a record that |
|
|
contains or includes that information, including a filing under 17 |
|
|
C.F.R. Section 240.17a-25, a dealer shall contemporaneously file a |
|
|
copy of the record in the same form with the Commissioner. |
|
|
B. On filing with the Securities and Exchange Commission or a |
|
|
self-regulatory organization a short interest report, including a |
|
|
periodic short interest report, or a record that contains that |
|
|
information, a dealer shall contemporaneously file with the |
|
|
Commissioner a copy of the short interest report or the record. The |
|
|
Commissioner by rule shall prescribe the format and manner in which |
|
|
the information must be filed. In adopting rules under this |
|
|
subsection, the Commissioner shall ensure that the format and other |
|
|
filing procedures conform, to the extent possible, to the format |
|
|
and other filing procedures required by the Securities and Exchange |
|
|
Commission or self-regulatory organization and that the reports and |
|
|
other information are, to the extent possible, submitted in a |
|
|
commonly used electronic format. |
|
|
C. A dealer shall file quarterly with the Commissioner all |
|
|
ledgers or other records showing securities failed to receive and |
|
|
failed to deliver, as of the end of the reporting period, that are |
|
|
maintained in accordance with 17 C.F.R. Section |
|
|
240.17a-3(a)(4)(v). |
|
|
D. The Commissioner shall maintain for a period of at least |
|
|
three years each record filed under Subsection A, B, or C of this |
|
|
section. The records must be maintained in an easily accessible |
|
|
location for the first two years. |
|
|
E. The Commissioner shall make the records maintained under |
|
|
Subsection D of this section available for inspection and copying, |
|
|
at the requestor's expense, to a person or company who makes a |
|
|
written request to the Commissioner for inspection. The |
|
|
Commissioner shall adopt rules to establish the format for requests |
|
|
made under this subsection. |
|
|
F. In addition to any other remedy available in equity or |
|
|
law, a dealer who does not timely file information as required by |
|
|
Subsection A, B, or C of this section is, after notice and hearing, |
|
|
subject to an administrative fine of $10,000 for each business day |
|
|
of noncompliance. The fine may be assessed beginning with the first |
|
|
business day after the date the information was required to be |
|
|
filed. An administrative fine assessed under this section is in |
|
|
addition to any other penalty or fine assessed under or provided by |
|
|
this Act or other law. |
|
|
G. A person who is not a governmental entity may bring an |
|
|
action to enforce the filing of the information required under this |
|
|
section and the assessment of a fine under Subsection F of this |
|
|
section. In an action brought under this subsection, the court may |
|
|
waive all or part of the fine if the dealer shows reasonable cause |
|
|
for failing to file the information. A person who brings an action |
|
|
under this subsection and who prevails in the action is entitled to |
|
|
recover court costs and reasonable attorney's fees and to receive |
|
|
50 percent of the recovered amount. |
|
|
SECTION 2. This Act takes effect September 1, 2007. |