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A BILL TO BE ENTITLED
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AN ACT
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relating to the authorization for municipalities to hire advisors |
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authorized under the Securities Exchange Act of 1934 |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 1371, Government Code, is |
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amended by adding Section 1371.154 to read as follows: |
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Sec. 1371.154. FINANCIAL ADVISER OR INVESTMENT ADVISER |
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QUALIFICATIONS AND REQUIREMENTS FOR CERTAIN AGREEMENTS AND |
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TRANSACTIONS. (a)This section applies to a financial adviser or an |
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investment adviser who advises the issuer in connection with: |
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(1) An interest rate management agreement; |
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(2) The execution or delivery of a public security; or |
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(3) The investment of the public security proceeds. |
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(b) To be eligible to be a financial adviser or an |
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investment adviser under this subchapter, the adviser or an |
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investment adviser under this subchapter, the adviser must: |
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(1) be registered: |
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(A) as a dealer or investment adviser in |
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accordance with Section 12 or 12-1, The Securities Act (article |
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581-12 or 581-12-1, Veron's Texas Civil Statues); or |
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(B) as a municipal advisor with the United States |
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Securities and Exchange Commission under the Securities Exchange |
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Act of 1934, Section 15B; or |
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(B) (C)with the United States Securities and |
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Exchange Commission under the Investment Advisers Act of 1940 (15 |
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U.S.C. Section 80b-1 et seq.), if the adviser is providing advice on |
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the investment of bond proceeds and not on the issuance of a public |
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security or an interest rate management agreement; |
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(2) have relevant experience in providing advice to |
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issuers in connection with: |
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(A) the issuance of public securities; |
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(B) the valuation of interest rate management |
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agreement; or |
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(C) the investment of public security proceeds; |
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and |
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(3) acknowledge in writing to the issuer that in |
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connection with the transaction for which the adviser is providing |
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advice the adviser: |
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(A) is acting as the issuer's agent; and |
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(B) has complied with the requirements of the |
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subchapter. |
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SECTION 2. This Act takes effect September 1, 2015 |