TITLE 7. BANKING AND SECURITIES

PART 7. STATE SECURITIES BOARD

CHAPTER 115. SECURITIES DEALERS AND AGENTS

7 TAC §115.18

The Texas State Securities Board proposes an amendment to §115.18, Special Provisions Relating to Military Applicants. The proposed amendment is necessary to implement House Bill 5629 and Senate Bill 1818 (89th Legislature, Regular Session (2025)) which amend state law relating to occupational licensing and recognition of out-of-state occupational licenses for military service members, military veterans, and military spouses (collectively, "military applicants"). The changes further expedite and simplify the process for military applicants who seek occupational licenses in Texas.

Related forms are being concurrently proposed, as are comparable amendments to the corresponding rule for investment advisers and investment adviser representatives.

Several changes would be made to §115.18 to align with state law requirements. The section would be amended to remove certain refund and waiver conditions imposed on military applicants. The time limits for Agency staff to issue registrations or recognitions for military applicants would be reduced. The section's provisions relating to recognition of out-of-state licenses would also be amended to change the documentation requirements and extend the duration of recognition periods for military service members and spouses. A publishing error would be corrected, and other changes would be made for clarity and consistency.

Subsection (a) would be amended to change the definitions for "current registration" and "good standing" to align with amended Texas Occupations Code §55.0042.

Subsection (b)(2) would be amended to require Registration staff to register military applicants who have requested expedited review to be registered within five business days of their request for expedited review.

Currently, military applicants who are new to the industry (i.e., those who have not been previously registered in another state) are not eligible for refunds or waivers of initial registration fees or fees for the Texas securities law examination. Subsection (c), which concerns waivers and refunds of fees, would be amended to remove those qualifying conditions set forth in (c)(1)(A) and (B). This change would slightly increase the number of military applicants who are eligible for and would benefit from the waivers and refund provisions in this section.

The caption for subsection (h) would be amended to re-insert the missing word "of" after the word "Recognition" that was recently removed from the official rule text due to a publishing error. Paragraph (1) of subsection (h) would be amended to pluralize the word "procedure" for consistency and clarity.

Paragraph (2) of subsection (h) would be amended to add language to extend the duration of the recognition period of a military spouse (which would be for as long as the military spouse is located in Texas), and to state the duration of the recognition period of a former military spouse (which would be for as long as the former military spouse is located in Texas but only until the third anniversary of the recognition date). The three-year limit on the duration of the recognition period for military service members and spouses residing in Texas in the existing rule would also be removed. This change would extend the duration of the "free" recognition period for eligible military applicants who are recognized under this subsection, which would consequently result in the waiver or refund of the applicants' annual renewal fees owed during the duration of this recognition period.

Paragraph (4) of subsection (h) concerning Option 2, would be amended to align with amended Occupations Code §55.0041, which removed certain requirements for recognition, including a requirement for Registration staff to verify out-of-state licensure good standing, and replaced them with different requirements, including a new requirement for the applicant to submit a notarized affidavit as to licensure good standing status. As a result of this change to Occupations Code §55.0041, the applicant may incur a small economic cost to obtain the required notarization.

Paragraph (4)(C)(ii) of subsection (h) would be amended to reduce the number of days that action must be taken on a request for recognition from 30 days to 10 business days.

Paragraph (4)(D) of subsection (h) would be amended to make conforming amendments to the renewal of the recognition status.

Finally, new paragraph (4)(E) of subsection (h) would be added for clarity and consistency with subsection (b), which relates to expedited review of applications. The new paragraph would clarify that individuals shall be recognized despite having pending or deficient items and would address how deficiencies are to be treated and resolved.

Cristi Ramón Ochoa, Deputy Securities Commissioner; Emily Diaz, Director, Registration Division; and Tommy Green, Director, Inspections and Compliance Division, have determined that for each year of the first five years the proposed amendment is in effect there may be foreseeable fiscal implications for state, but not local government, as a result of enforcing or administering the proposed amendment.

Although there may be a state fiscal impact, it would be minimal, and it is the result of legislation (HB 5629) rather than Agency rulemaking. The Agency could potentially experience a slight loss in fee revenue as the proposal would waive or refund initial registration fees and Texas securities examination fees. In addition, the Agency could possibly experience a slight loss in renewal fee revenue as the duration of the "free" recognition period in (h) would be extended for certain military applicants. However, because no military applicants have applied for recognition under §115.18(h) or applied for any fee refunds or waivers under §115.18(c) since that subsection was enacted in 2015, the Agency anticipates that few, if any, applicants will seek recognition or request fee refunds or waivers in the future. Therefore, the Agency staff expects the fiscal impact to the Agency's fee revenue to be minimal.

Ms. Ochoa, Ms. Diaz, and Mr. Green have also determined that for each year of the first five years the proposed amendment will be in effect, the public benefit anticipated as a result of the changes will be consistency and conformity with the applicable military occupational licensing requirements under state law.

There will be no adverse economic effect on micro or small businesses or rural communities. Because the proposed amendment will have no adverse economic effect on micro or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required.

There may be a very slight economic cost to military applicants who may apply for recognition under this section, as a result of the new statutory requirement to submit an affidavit that must be notarized. Otherwise, there is no anticipated economic cost to persons who are required to comply with the amendment as proposed.

The proposal will not affect local employment or a local economy.

For each year of the first five years the proposed amendment would be in effect, the impact on government growth is as follows:

(1) The proposal does not create or eliminate a government program;

(2) The proposal does not require the creation or elimination of existing employee positions;

(3) The proposal does not require an increase or decrease in future legislative appropriations to the Agency;

(4) The proposal does not require an increase in fees paid to the Agency; however, it would require a slight decrease in initial registration, Texas securities examination, and/or renewal fees paid to the Agency by certain military applicants;

(5) The proposal does not create a new regulation;

(6) The proposal does not repeal an existing regulation; however, it would limit an existing regulation by exempting certain military applicants from certain licensing requirements in order to comply with state law, and would expand an existing regulation by expanding certain benefits to additional, eligible military applicants;

(7) The proposal does not increase or decrease the number of individuals subject to the rule's applicability; and

(8) The proposal does not positively or negatively affect this state's economy.

The Texas State Securities Board is requesting public comments on the proposal and information related to the cost, benefit, or effect of the proposed amendment, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed amendment.

Comments and responses to the request for information may be submitted in writing and will be accepted for 30 days following the publication of this notice in the Texas Register. Written comments should be submitted to Cheryn Netz Howard, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. Comments and responses to the request for information may also be submitted electronically to proposal@ssb.texas.gov.

The amendment is proposed under the authority of the Texas Government Code, §4002.151, as adopted by HB 4171, 86th Legislature, 2019 Regular Session, effective January 1, 2022. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. The amendment is also proposed under Chapter 55 of the Texas Occupations Code, as amended by HB 5629, which requires state agencies that issue licenses to adopt rules for the recognition of out-of-state licenses for military applicants, and as amended by SB 1818, which requires state agencies to promptly issue recognitions and licenses to military applicants.

The proposal affects the following sections of the Texas Securities Act, Texas Government Code Chapter 4004, Subchapters B through F, and §§4006.001, 4006.057, and 4007.105.

§115.18. Special Provisions Relating to Military Applicants.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Current registration--A registration or license that is:

(A) issued by another state, the District of Columbia, or a territory of the United States that has registration requirements that are similar in scope of practice [substantially equivalent] to the requirements for a Texas registration in the same capacity;

(B) - (C) (No change.)

(2) Good standing--For purposes of this section, a person's registration is in good standing with another state's licensing authority if the person [A registration or license that is effective and unrestricted. A registration or license is considered to be restricted and not in good standing if it is subject to]:

(A) has a registration that is current, has not been suspended or revoked, and has not been voluntarily surrendered during an investigation for unprofessional conduct;

(B) has not been disciplined by the licensing authority with respect to the registration or person's practice of the occupation for which the registration is granted; and

(C) is not currently under investigation by the licensing authority for unprofessional conduct related to the person's registration or profession.

[(A) an undertaking, special stipulations or agreements relating to payments, limitations on activity or other restrictions;]

[(B) a pending administrative or civil action; or]

[(C) an order or other written directive issued pursuant to statutory authority and procedures, including orders of denial, suspension, or revocation.]

(3) - (8) (No change.)

(b) Expedited review of an application submitted by a military applicant as authorized by Occupations Code, §§55.004, 55.005, and 55.006.

(1) (No change.)

(2) If the military applicant is not registered within five business days of submitting an application, the military applicant may request special consideration of his or her application for registration by filing Form 133.4, Request for Consideration of a Registration Application by a Military Applicant, with the Securities Commissioner. Within five business days of receipt of the completed Form 133.4, the military applicant shall be registered [will be notified in writing of the reason(s) for the pending or deficient status assigned to the application].

(3) - (5) (No change.)

(c) Waiver or refund of initial application fee and Texas Securities Law Examination fee for a military applicant as authorized by Occupations Code, §55.009.

(1) To qualify for a fee waiver or refund, the military applicant must submit [be:]

[(A) a military applicant who holds a current registration in another jurisdiction; or]

[(B)] [a military service member or military veteran whose military service, training, or education substantially meets all the requirements for the registration sought who submits] Form 133.4, Request for Consideration of a Registration Application by a Military Applicant, with the applicant's registration application.

(2) (No change.)

(d) - (g) (No change.)

(h) Recognition of out-of-state license or registration of an individual who is either a military service member or a military spouse as authorized by Occupations Code, §55.0041.

(1) An individual who is a resident of Texas and who is either a military service member or a military spouse may use the procedures [procedure] set out in this subsection if the individual holds a current registration in another jurisdiction;

(2) The period covered by this subsection is only for the time during which the military service member is stationed at a military installation in Texas. In the case of a military spouse, the period covered by this subsection is for the time that the military spouse is a resident of Texas and is married to his or her respective military service member who is a military service member stationed at a military installation in Texas. Notwithstanding, if the individual is a military spouse, in the event of a divorce or other event that affects the individual's status as a military spouse, the recognition period covered by this subsection for such former spouse may continue until the third anniversary of the date the former spouse submitted the form and other documentation required by paragraph (4) of this subsection. [may continue, but for all individuals using the procedure set out in this subsection, this recognition period may not exceed three years from the date the individual:]

[(A) first becomes registered in Texas under Option 1, set out in paragraph (3) of this subsection; or]

[(B) first receives the confirmation from the Registration Division under Option 2, set out in paragraph (4)(C)(ii) of this subsection.]

(3) (No change.)

(4) Option 2: recognition of out-of-state registration [notification and authorization of activity] without Texas registration. Upon recognition [confirmation] under subparagraph (C) or (D) of this paragraph, the individual will be considered to be notice filed in Texas. Such notice filing expires at the end of the calendar year.

(A) (No change.)

(B) An individual who becomes ineligible under Occupations Code, §55.0041, or paragraph (1) or (2) of this subsection [prior to the three year period identified in paragraph (2) of this subsection,] must notify the Securities Commissioner of such ineligibility within 30 days and immediately cease activity until such time as the individual is registered in the appropriate capacity to conduct activity in Texas.

(C) Before engaging in an activity requiring registration in Texas, the individual must initially:

(i) submit to [provide notice of the individual's intent to engage in activity in Texas and specify the type of activity by filing with] the Securities Commissioner:

(I) (No change.)

(II) a copy of the member's military orders showing relocation to [proof of the individual's residency in] Texas; [(a permanent change of station (PCS) order may serve as proof of residency); and]

(III) a copy of the individual's marriage license if the applicant is a military spouse; and [military identification card.]

(IV) a notarized affidavit as required by Occupations Code §55.0041(b), included as part of Form 133.23, which affirms under penalty of perjury that the applicant is the person described and identified in the form; all statements in the application are true, correct, and complete; the applicant understands the scope of practice for the applicable registration in this state and will not perform outside that scope of practice; and the applicant is in good standing in each state in which the applicant holds or has held an applicable registration.

(ii) receive notification [confirmation] that the Registration Division[:]

[(I)] has recognized [verified] the individual's license in another jurisdiction, which the Registration Division shall provide such notice [complete such verification] no later than the 10th business [30th] day after the date the individual [provides the notice and] submits the information required by subparagraph (C)(i) of this paragraph.[; and]

[(II) authorizes the individual to engage in the specified activity.]

(D) To continue to conduct business in Texas without registration under Option 2, [after the expiration of the initial confirmation under subparagraph (C)(ii) of this paragraph,] the individual must renew recognition annually on the same schedule as renewals of registration. This enables the Registration Division to determine that the individual remains eligible under Occupations Code, §55.0041, to continue to conduct securities activities in Texas without being registered.

(i) (No change.)

(ii) A renewal is not effective until the Registration Division receives the documents identified in subparagraph (C)(i) of this paragraph. [individual receives confirmation that the Registration Division:]

[(I) has verified the individual's license in another jurisdiction; and]

[(II) authorizes the individual to engage in specified activity.]

(E) An individual proceeding under this paragraph shall be recognized despite having pending and/or deficient items ("deficiencies"). The deficiencies will be communicated to the individual in writing or by electronic means within five business days from the date of the notice of recognition under this paragraph. Such deficiencies must be resolved by the individual within a 12-month period. Failure to resolve outstanding deficiencies will cause the recognition granted under this paragraph or any renewal of such recognition to automatically terminate 12 months after the date the individual was notified of the recognition pursuant to this paragraph.

(i) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 10, 2025.

TRD-202504067

Travis J. Iles

Securities Commissioner

State Securities Board

Earliest possible date of adoption: December 21, 2025

For further information, please call: (512) 305-8303

CHAPTER 116. INVESTMENT ADVISERS AND INVESTMENT ADVISER REPRESENTATIVES

7 TAC §116.18

The Texas State Securities Board proposes an amendment to §116.18, Special Provisions Relating to Military Applicants. The proposed amendment is necessary to implement House Bill 5629 and Senate Bill 1818 (89th Legislature, Regular Session (2025)) which amend state law relating to occupational licensing and recognition of out-of-state occupational licenses for military service members, military veterans, and military spouses (collectively, "military applicants"). The changes further expedite and simplify the process for military applicants who seek occupational licenses in Texas.

Related forms are being concurrently proposed, as are comparable amendments to the corresponding rule for dealers and agents.

Several changes would be made to §116.18 to align with state law requirements. The section would be amended to remove certain refund and waiver conditions imposed on military applicants. The time limits for Agency staff to issue registrations or recognitions for military applicants would be reduced. The section's provisions relating to recognition of out-of-state licenses would also be amended to change the documentation requirements and extend the duration of recognition periods for military service members and spouses. Other changes would be made for clarity and consistency.

Subsection (a) would be amended to change the definitions for "current registration" and "good standing" to align with amended Texas Occupations Code §55.0042.

Subsection (b)(2) would be amended to require Registration staff to register military applicants who have requested expedited review to be registered within five business days of their request for expedited review.

Currently, military applicants who are new to the industry (i.e., those who have not been previously registered in another state) are not eligible for refunds or waivers of initial registration fees or fees for the Texas securities law examination. Subsection (c), which concerns waivers and refunds of fees, would be amended to remove those qualifying conditions set forth in (c)(1)(A) and (B). This change would slightly increase the number of military applicants who are eligible for and would benefit from the waivers and refund provisions in this section.

Paragraph (1) of subsection (h) would be amended to pluralize the word "procedure" for consistency and clarity.

Paragraph (2) of subsection (h) would be amended to add language to extend the duration of the recognition period of a military spouse (which would be for as long as the military spouse is located in Texas), and to state the duration of the recognition period of a former military spouse (which would be for as long as the former military spouse is located in Texas but only until the third anniversary of the recognition date). The three-year limit on the duration of the recognition period for military service members and spouses residing in Texas in the existing rule would also be removed. This change would extend the duration of the "free" recognition period for eligible military applicants who are recognized under this subsection, which would consequently result in the waiver or refund of the applicants' annual renewal fees owed during the duration of this recognition period.

Paragraph (4) of subsection (h) concerning Option 2, would be amended to align with amended Occupations Code §55.0041 which removed certain requirements for recognition, including a requirement for Registration staff to verify out-of-state licensure good standing, and replaced them with different requirements, including a new requirement for the applicant to submit a notarized affidavit as to licensure good standing status. As a result of this change to Occupations Code §55.0041, the applicant may incur a small economic cost to obtain the required notarization.

Paragraph (4)(C)(ii) of subsection (h) would be amended to reduce the number of days that action must be taken on a request for recognition from 30 days to 10 business days.

Paragraph (4)(D) of subsection (h) would be amended to make conforming amendments to the renewal of the recognition status.

Finally, new paragraph (4)(E) of subsection (h) would be added for clarity and consistency with subsection (b), which relates to expedited review of applications. The new paragraph would clarify that individuals shall be recognized despite having pending or deficient items and would address how deficiencies are to be treated and resolved.

Cristi Ramón Ochoa, Deputy Securities Commissioner; Emily Diaz, Director, Registration Division; and Tommy Green, Director, Inspections and Compliance Division, have determined that for each year of the first five years the proposed amendment is in effect there may be foreseeable fiscal implications for state, but not local government, as a result of enforcing or administering the proposed amendment.

Although there may be a state fiscal impact, it would be minimal, and it is the result of legislation (HB 5629) rather than Agency rulemaking. The Agency could potentially experience a slight loss in fee revenue as the proposal would waive or refund initial registration fees and Texas securities examination fees. In addition, the Agency could possibly experience a slight loss in renewal fee revenue as the duration of the "free" recognition period in (h) would be extended for certain military applicants. However, because no military applicants have applied for recognition under §116.18(h), and only two military applicants have applied for any fee refunds under §116.18(c) since that subsection was enacted in 2015, the Agency anticipates that few, if any, applicants will seek recognition or request fee refunds or waivers in the future. Therefore, the Agency staff expects the fiscal impact to the Agency's fee revenue to be minimal.

Ms. Ochoa, Ms. Diaz, and Mr. Green have also determined that for each year of the first five years the proposed amendment will be in effect, the public benefit anticipated as a result of the changes will be consistency and conformity with the applicable military occupational licensing requirements under state law.

There will be no adverse economic effect on micro or small businesses or rural communities. Because the proposed amendment will have no adverse economic effect on micro or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required.

There may be a very slight economic cost to military applicants who may apply for recognition under this section, as a result of the new statutory requirement to submit an affidavit that must be notarized. Otherwise, there is no anticipated economic cost to persons who are required to comply with the amendment as proposed.

The proposal will not affect local employment or a local economy.

For each year of the first five years the proposed amendment would be in effect, the impact on government growth is as follows:

(1) The proposal does not create or eliminate a government program;

(2) The proposal does not require the creation or elimination of existing employee positions;

(3) The proposal does not require an increase or decrease in future legislative appropriations to the Agency;

(4) The proposal does not require an increase in fees paid to the Agency; however, it would require a slight decrease in initial registration, Texas securities examination, and/or renewal fees paid to the Agency by certain military applicants;

(5) The proposal does not create a new regulation;

(6) The proposal does not repeal an existing regulation; however, it would limit an existing regulation by exempting certain military applicants from certain licensing requirements in order to comply with state law, and would expand an existing regulation by expanding certain benefits to additional, eligible military applicants;

(7) The proposal does not increase or decrease the number of individuals subject to the rule's applicability; and

(8) The proposal does not positively or negatively affect this state's economy.

The Texas State Securities Board is requesting public comments on the proposal and information related to the cost, benefit, or effect of the proposed amendment, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed amendment.

Comments and responses to the request for information may be submitted in writing and will be accepted for 30 days following the publication of this notice in the Texas Register. Written comments should be submitted to Cheryn Netz Howard, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. Comments and responses to the request for information may also be submitted electronically to proposal@ssb.texas.gov.

The amendment is proposed under the authority of the Texas Government Code, §4002.151, as adopted by HB 4171, 86th Legislature, 2019 Regular Session, effective January 1, 2022. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. The amendment is also proposed under Chapter 55 of the Texas Occupations Code, as amended by HB 5629, which requires state agencies that issue licenses to adopt rules for the recognition of out-of-state licenses for military applicants, and as amended by SB 1818, which requires state agencies to promptly issue recognitions and licenses to military applicants.

The proposal affects the following sections of the Texas Securities Act, Texas Government Code Chapter 4004, Subchapters B through F, and §§4006.001, 4006.057, and 4007.105.

§116.18. Special Provisions Relating to Military Applicants.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Current registration--A registration or license that is:

(A) issued by another state, the District of Columbia, or a territory of the United States that has registration requirements that are similar in scope of practice [substantially equivalent] to the requirements for a Texas registration in the same capacity;

(B) - (C) (No change.)

(2) Good standing--For purposes of this section, a person's registration is in good standing with another state's licensing authority if the person [A registration or license that is effective and unrestricted. A registration or license is considered to be restricted and not in good standing if it is subject to]:

(A) has a registration that is current, has not been suspended or revoked, and has not been voluntarily surrendered during an investigation for unprofessional conduct;

[(A) an undertaking, special stipulations or agreements relating to payments, limitations on activity or other restrictions;]

(B) has not been disciplined by the licensing authority with respect to the registration or person's practice of the occupation for which the registration is granted; and

[(B) a pending administrative or civil action; or]

(C) is not currently under investigation by the licensing authority for unprofessional conduct related to the person's registration or profession.

[(C) an order or other written directive issued pursuant to statutory authority and procedures, including orders of denial, suspension, or revocation.]

(3) - (8) (No change.)

(b) Expedited review of an application submitted by a military applicant as authorized by Occupations Code, §§55.004, 55.005, and 55.006.

(1) (No change.)

(2) If the military applicant is not registered within five business days of submitting an application, the military applicant may request special consideration of his or her application for registration by filing Form 133.4, Request for Consideration of a Registration Application by a Military Applicant, with the Securities Commissioner. Within five business days of receipt of the completed Form 133.4, the military applicant shall be registered [will be notified in writing of the reason(s) for the pending or deficient status assigned to the application].

(3) - (5) (No change.)

(c) Waiver or refund of initial application fee and Texas Securities Law Examination fee for a military applicant as authorized by Occupations Code, §55.009.

(1) To qualify for a fee waiver or refund, the military applicant must submit [be:]

[(A) a military applicant who holds a current registration in another jurisdiction; or]

[(B)] [a military service member or military veteran whose military service, training, or education substantially meets all the requirements for the registration sought who submits] Form 133.4, Request for Consideration of a Registration Application by a Military Applicant, with the applicant's registration application.

(2) (No change.)

(d) - (g) (No change.)

(h) Recognition of out-of-state license or registration of an individual who is either a military service member or a military spouse as authorized by Occupations Code, §55.0041.

(1) An individual who is a resident of Texas and who is either a military service member or a military spouse may use the procedures [procedure] set out in this subsection if the individual holds a current registration in another jurisdiction.

(2) The period covered by this subsection is only for the time during which the military service member is stationed at a military installation in Texas. In the case of a military spouse, the period covered by this subsection is for the time that the military spouse is a resident of Texas and is married to his or her respective military service member who is a military service member stationed at a military installation in Texas. Notwithstanding, if the individual is a military spouse, in the event of a divorce or other event that affects the individual's status as a military spouse, the recognition period covered by this subsection for such former spouse may continue until the third anniversary of the date the former spouse submitted the form and other documentation required by paragraph (4) of this subsection. [may continue, but for all individuals using the procedure set out in this subsection, this recognition period may not exceed three years from the date the individual:]

[(A) first becomes registered, or makes a notice filing pursuant to §116.1(b)(2) of this chapter (relating to general provisions), in Texas under Option 1, set out in paragraph (3) of this subsection; or]

[(B) first receives the confirmation from the Registration Division under Option 2, set out in paragraph (4)(C)(ii) of this subsection.]

(3) (No change.)

(4) Option 2: recognition of out of state registration [notification and authorization of activity] without Texas registration, or notice filing pursuant to §116.1(b)(2) of this chapter. Upon confirmation under subparagraph (C) or (D) of this paragraph, the individual will be considered to be notice filed in Texas. Such notice filing expires at the end of the calendar year.

(A) (No change.)

(B) An individual who becomes ineligible under Occupations Code, §55.0041, or paragraph (1) or (2) of this subsection [prior to the three year period identified in paragraph (2) of this subsection,] must notify the Securities Commissioner of such ineligibility within 30 days and immediately cease activity until such time as the individual is registered in Texas, or makes a notice filing pursuant to §116.1(b)(2) of this chapter, in the appropriate capacity to conduct activity in Texas.

(C) Before engaging in an activity in Texas requiring registration, or a notice filing pursuant to §116.1(b)(2) of this chapter, the individual must initially:

(i) submit to [provide notice of the individual's intent to engage in activity in Texas and specify the type of activity by filing with] the Securities Commissioner:

(I) (No change.)

(II) a copy of the member's military orders showing relocation to [proof of the individual's residency in] Texas [(a permanent change of station (PCS) order may serve as proof of residency)]; [and]

(III) a copy of the individual's marriage license if the applicant is a military spouse; and [military identification card.]

(IV) a notarized affidavit as required by Occupations Code §55.0041(b), included as part of Form 133.23, which affirms under penalty of perjury that the applicant is the person described and identified in the form; all statements in the application are true, correct, and complete; the applicant understands the scope of practice for the applicable registration in this state and will not perform outside that scope of practice; and the applicant is in good standing in each state in which the applicant holds or has held an applicable registration.

(ii) receive notification [confirmation] that the Registration Division[:]

[(I)] has recognized [verified] the individual's license in another jurisdiction, which the Registration Division shall provide such notice [complete such verification] no later than the 10th business [30th] day after the date the individual [provides the notice and] submits the information required by subparagraph (C)(i) of this paragraph.[; and]

[(II) authorizes the individual to engage in the specified activity.]

(D) To continue to conduct business in Texas without registration, or a notice filing pursuant to §116.1(b)(2) of this chapter, under Option 2, [after the expiration of the initial confirmation under subparagraph (C)(ii) of this paragraph,] the individual must renew recognition annually on the same schedule as renewals of registration. This enables the Registration Division to determine that the individual remains eligible under Occupations Code, §55.0041, to continue to conduct securities activities in Texas without being registered.

(i) (No change.)

(ii) A renewal is not effective until the Registration Division receives the documents identified in subparagraph (C)(i) of this paragraph. [individual receives confirmation that the Registration Division:]

[(I) has verified the individual's license in another jurisdiction; and]

[(II) authorizes the individual to engage in specified activity.]

(E) An individual proceeding under this paragraph shall be recognized despite having pending and/or deficient items ("deficiencies"). The deficiencies will be communicated to the individual in writing or by electronic means within five business days from the date of the notice of recognition under this paragraph. Such deficiencies must be resolved by the individual within a 12-month period. Failure to resolve outstanding deficiencies will cause the recognition granted under this paragraph or any renewal of such recognition to automatically terminate 12 months after the date the individual was notified of the recognition pursuant to this paragraph.

(i) (No change.)

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 10, 2025.

TRD-202504071

Travis J. Iles

Securities Commissioner

State Securities Board

Earliest possible date of adoption: December 21, 2025

For further information, please call: (512) 305-8303

CHAPTER 133. FORMS

7 TAC §133.19, §133.23

The Texas State Securities Board proposes the repeal of two rules concerning forms adopted by reference. Specifically, the State Securities Board proposes the repeal of §133.19, a form concerning Waiver or Refund Request by a Military Applicant; and §133.23, a form concerning Request for Recognition of Out-Of-State License or Registration Pursuant to Occupations Code §55.0041.

The two sections proposed for repeal adopt by reference forms that implement portions of §115.18 and §116.18. New forms §133.19 and §133.23 are being concurrently proposed to implement amendments to §115.18 and §116.18, which are also being concurrently proposed, and are necessary to implement House Bill 5629 and Senate Bill 1818 (89th Legislature, Regular Session (2025)) which amend state law relating to occupational licensing and recognition of out-of-state occupational licenses for military service members, military veterans, and military spouses (collectively, "military applicants"). The changes further expedite and simplify the process for military applicants who seek occupational licenses in Texas.

Existing Form 133.19, which would be repealed, may be filed by a military applicant to request a waiver or a refund of an initial registration fee and/or a fee to take the Texas securities law examination. New Form 133.19, concurrently proposed, would perform the same function as the existing form, but certain requirements for waiver or refund eligibility would be removed from the form to implement the requirements of Occupations Code §55.009 as amended by HB 5629.

Existing Form 133.23, which would be repealed, may be filed by a military service member or military spouse eligible for non-registration under Texas Occupations Code §55.0041, to provide the Agency with information needed to determine eligibility for such treatment. New Form 133.23, concurrently proposed, would perform the same function as the existing form but would require the applicant to provide a notarized affidavit as to the applicant's good standing status in another jurisdiction as well as to require military orders, in lieu of providing proof of Texas residency and a military identification card, and, as applicable, a marriage license.

Cristi Ramón Ochoa, Deputy Securities Commissioner; Emily Diaz, Director, Registration Division; and Tommy Green, Director, Inspections and Compliance Division, have determined that for each year of the first five years the proposed repeals are in effect there will be no foreseeable fiscal implications for state or local government, as a result of administering the proposed repeals.

Ms. Ochoa, Ms. Diaz, and Mr. Green have also determined that for each year of the first five years the proposed repeals will be in effect the public benefit anticipated as a result of adoption of the proposed repeals will be that current forms can be replaced with new forms that comply with new statutory requirements.

There will be no adverse economic effect on micro or small businesses or rural communities. Because the proposed repeals will have no adverse economic effect on micro or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required. There is no anticipated economic cost to persons who are required to comply with the repeals as proposed.

The proposed repeals will not affect local employment or a local economy.

For each year of the first five years the proposed amendment would be in effect, the impact on government growth is as follows:

(1) The proposed repeals do not create or eliminate a government program;

(2) The proposed repeals do not require the creation or elimination of existing employee positions;

(3) The proposed repeals do not require an increase or decrease in future legislative appropriations to this agency;

(4) The proposed repeals do not require an increase or decrease in fees paid to this agency;

(5) The proposed repeals do not create a new regulation;

(6) The proposed repeals do not expand or limit an existing regulation;

(7) The proposed repeals do not increase or decrease the number of individuals subject to the forms' applicability; and

(8) The proposed repeals do not positively or negatively affect the state's economy.

The rulemaking involves repealing two existing forms to replace them with two new forms that are being concurrently proposed, as part of the implementation of HB5629 and SB1818.

The Texas State Securities Board is requesting public comments on the proposed repeals and information related to the cost, benefit, or effect of the proposed repeals, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed repeals.

Comments and responses to the request for information may be submitted in writing and will be accepted for 30 days following the publication of this notice in the Texas Register. Written comments should be submitted to Cheryn Netz Howard, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. Comments and responses to the request for information may also be submitted electronically to proposal@ssb.texas.gov.

The repeals are proposed under the authority of the Texas Government Code, §4002.151, as adopted by HB 4171, 86th Legislature, 2019 Regular Session, effective January 1, 2022. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. The repeals are also proposed under Chapter 55 of the Texas Occupations Code, as amended by HB 5629, which requires state agencies that issue licenses to adopt rules for the recognition of out-of-state licenses for military applicants, and as amended by SB 1818, which requires state agencies to promptly issue recognitions and licenses to military applicants.

The proposal affects the following sections of the Texas Securities Act, Texas Government Code Chapter 4004, Subchapters B through F, and §§4006.001, 4006.057, and 4007.105.

§133.19. Waiver or Refund Request by a Military Applicant.

§133.23. Request for Recognition of Out-Of-State License or Registration Pursuant to Occupations Code §55.0041.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 10, 2025.

TRD-202504074

Travis J. Iles

Securities Commissioner

State Securities Board

Earliest possible date of adoption: December 21, 2025

For further information, please call: (512) 305-8303

7 TAC §133.19, §133.23

The Texas State Securities Board proposes new §133.19, a form concerning Waiver or Refund Request by a Military Applicant; and new §133.23, a form concerning Request for Recognition of Out-Of-State License or Registration Pursuant to Occupations Code §55.0041.

The new sections would adopt by reference forms that would be created to implement amendments to §115.18 and §116.18, which are being concurrently proposed, and are necessary to implement House Bill 5629 and Senate Bill 1818 (89th Legislature, Regular Session (2025)) which amend state law relating to occupational licensing and recognition of out-of-state occupational licenses for military service members, military veterans, and military spouses (collectively, "military applicants"). The changes further expedite and simplify the process for military applicants who seek occupational licenses in Texas.

Existing forms §133.19 and §133.23 are being concurrently proposed for repeal.

Existing Form 133.19 may be filed by a military applicant to request a waiver or a refund of an initial registration fee and/or a fee to take the Texas securities law examination. New Form 133.19 would perform the same function as the existing form, but certain requirements for waiver or refund eligibility would be removed from the form to implement the requirements of Occupations Code §55.009 as amended by HB 5629.

Existing Form 133.23 may be filed by a military service member or military spouse eligible for non-registration under Texas Occupations Code §55.0041, to provide the Agency with information needed to determine eligibility for such treatment. New Form 133.23 would perform the same function as the existing form but would require the applicant to provide a notarized affidavit as to the applicant's good standing status in another jurisdiction as well as to require miliary orders, in lieu of providing proof of Texas residency and a military identification card, and, as applicable, a marriage license. The form would need to be resubmitted annually during the period that the individual qualifies for unique treatment under Texas Occupations Code §55.0041. Upon issuance of the confirmation by the Registration Division for the initial or a renewal filing, the individual would be considered to be notice filed for purposes of recordkeeping and certification.

Cristi Ramón Ochoa, Deputy Securities Commissioner; Emily Diaz, Director, Registration Division; and Tommy Green, Director, Inspections and Compliance Division, have determined that for each year of the first five years the proposed forms are used there will be no foreseeable fiscal implications for state or local government as a result of using the proposed forms.

Ms. Ochoa, Ms. Diaz, and Mr. Green have also determined that for each year of the first five years the proposed forms are used the public benefit anticipated as a result of adoption of the proposed forms will be that an eligible military applicant can complete the forms adopted by reference to either obtain a waiver or refund or to practice securities business in Texas without being registered.

There will be no adverse economic effect on micro or small businesses or rural communities. Because the proposed forms will have no adverse economic effect on micro or small businesses or rural communities, preparation of an economic impact statement and a regulatory flexibility analysis is not required.

There may be a very slight economic cost to military applicants who may apply for recognition under §115.18 and §116.18 using the forms that would be adopted by reference in the proposed new rules, as a result of the new statutory requirement to submit an affidavit that must be notarized. Otherwise, there is no anticipated economic cost to persons who are required to use the forms as proposed.

The proposal will not affect local employment or a local economy.

For each year of the first five years the proposed new rules adopting by reference the forms would be in effect, the impact on government growth is as follows:

(1) The proposal does not create or eliminate a government program;

(2) The proposal does not require the creation or elimination of existing employee positions;

(3) The proposal does not require an increase or decrease in future legislative appropriations to the Agency;

(4) The proposal does not require an increase or decrease in fees paid to the Agency;

(5) The proposal does not create a new regulation;

(6) The proposal does not expand, limit, or repeal an existing regulation;

(7) The proposal does not increase or decrease the number of individuals subject to the rules' applicability; and

(8) The proposal does not positively or negatively affect this state's economy.

Although the rulemaking involves the creation of new forms, the forms are created as part of the implementation of HB5629 and SB1818.

The Texas State Securities Board is requesting public comments on the proposal and information related to the cost, benefit, or effect of the proposed new rules, including any applicable data, research, or analysis. Any information that is submitted in response to this request must include an explanation of how and why the submitted information is specific to the proposed new rules.

Comments and responses to the request for information may be submitted in writing and will be accepted for 30 days following the publication of this notice in the Texas Register. Written comments should be submitted to Cheryn Netz Howard, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167. Comments and responses to the request for information may also be submitted electronically to proposal@ssb.texas.gov.

The new rules are proposed under the authority of the Texas Government Code, §4002.151, as adopted by HB 4171, 86th Legislature, 2019 Regular Session, effective January 1, 2022. Section 4002.151 provides the Board with the authority to adopt rules as necessary to implement the provisions of the Texas Securities Act, including rules governing registration statements, applications, notices, and reports; defining terms; classifying securities, persons, and matters within its jurisdiction; and prescribing different requirements for different classes. The new rules are also proposed under Chapter 55 of the Texas Occupations Code, as amended by HB 5629, which requires state agencies that issue licenses to adopt rules for the recognition of out-of-state licenses for military applicants, and as amended by SB 1818, which requires state agencies to promptly issue recognitions and licenses to military applicants.

The proposal affects the following sections of the Texas Securities Act, Texas Government Code Chapter 4004, Subchapters B through F, and §§4006.001, 4006.057, and 4007.105.

§133.19. Waiver or Refund Request by a Military Applicant.

This form is available from the State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167 and at www.ssb.texas.gov.

§133.23. Request for Recognition of Out-Of-State License or Registration Pursuant to Occupations Code §55.0041.

This form is available from the State Securities Board, P.O. Box 13167, Austin, Texas 78711-3167 and at www.ssb.texas.gov.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on November 10, 2025.

TRD-202504073

Travis J. Iles

Securities Commissioner

State Securities Board

Earliest possible date of adoption: December 21, 2025

For further information, please call: (512) 305-8303