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A BILL TO BE ENTITLED
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AN ACT
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relating to the members of the State Securities Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsections B and E, Section 2, The Securities |
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Act (Article 581-2, Vernon's Texas Civil Statutes), are amended to |
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read as follows: |
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B. Two members of the Board must be persons who are each |
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registered as a dealer, agent, investment adviser, or investment |
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adviser representative and who are not employed by a commercial |
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bank or nonbank affiliate. Three members of the Board [members] |
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must be members of the general public. A person is not eligible for |
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appointment as a public member if the person or the person's spouse: |
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(1) is registered as a dealer, agent, investment |
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adviser, or investment adviser representative; |
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(2) has an active notice filing under this Act to |
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engage in business in this state as an investment adviser or |
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investment adviser representative; |
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(3) is employed by or participates in the management |
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of a business entity engaged in business as a securities dealer or |
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investment adviser; or |
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(4) has, other than as a consumer, a financial |
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interest in a business entity engaged in business as a securities |
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dealer or investment adviser. |
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E. It is a ground for removal from the Board that a member: |
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(1) does not have at the time of taking office the |
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qualifications required by Subsection A or B of this section for |
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appointment to the Board; |
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(2) does not maintain during service on the Board the |
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qualifications required by Subsection A or B of this section for |
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appointment to the Board; |
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(3) [is ineligible for membership under Subsection B
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of this section or Subsection B or C of Section 2-1 of this Act;
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[(4)] cannot, because of illness or disability, |
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discharge the member's duties for a substantial part of the member's |
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term; or |
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(4) [(5)] is absent from more than half of the |
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regularly scheduled Board meetings that the member is eligible to |
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attend during a calendar year without an excuse approved by a |
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majority vote of the Board. |
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SECTION 2. (a) The change in law made by this Act to |
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Subsection B, Section 2, The Securities Act (Article 581-2, |
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Vernon's Texas Civil Statutes), as amended by this Act, does not |
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affect the eligibility of a member of the State Securities Board |
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appointed before September 1, 2011, to continue to serve the term |
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that began before that date. |
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(b) Each of the first two persons appointed to the State |
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Securities Board on or after September 1, 2011, must be a dealer, |
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agent, investment adviser, or investment adviser representative |
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registered under The Securities Act (Article 581-1 et seq., |
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Vernon's Texas Civil Statutes), as amended by this Act, and not |
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employed by a commercial bank or nonbank affiliate. |
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SECTION 3. This Act takes effect September 1, 2011. |