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A BILL TO BE ENTITLED
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AN ACT
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relating to financial advisors retained by political subdivisions |
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for the issuance of bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 2254, Government Code, is |
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amended by adding Section 2254.007 to read as follows: |
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Sec. 2254.007. RETENTION OF FINANCIAL ADVISOR BY POLITICAL |
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SUBDIVISION. (a) This section applies only to a financial advisor |
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who provides advice to a political subdivision regarding the |
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issuance of bonds by the political subdivision. |
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(b) A political subdivision may not make a contract for the |
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services of a financial advisor unless: |
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(1) the selection of the advisor is made in the manner |
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provided by Section 2254.003; and |
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(2) the financial advisor: |
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(A) holds a license issued by: |
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(i) a nationally recognized association of |
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securities dealers; and |
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(ii) the Municipal Securities Rulemaking |
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Board; and |
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(B) is in good standing with: |
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(i) the United States Securities and |
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Exchange Commission; and |
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(ii) the State Securities Board. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |