Current through Reg. 49, No. 38; September 20, 2024
(a) An application for registration may be
denied, or a registration may be revoked or suspended, if the Securities
Commissioner finds that the person has been convicted of any felony, or of a
misdemeanor offense that directly relates to its duties and responsibilities.
In determining whether a misdemeanor directly relates to such duties and
responsibilities, the Securities Commissioner shall consider each of the
following factors:
(1) the nature and
seriousness of the crime;
(2) the
relationship of the crime to the purposes for requiring registration of dealers
and agents;
(3) the extent to which
the registration applied for might offer an opportunity to engage in further
criminal activity of the same type as that in which the applicant previously
had been involved;
(4) the
relationship of the crime to the ability or capacity required to perform the
duties and discharge the responsibilities of a registered dealer or agent;
and
(5) any correlation between the
elements of the crime and its duties and responsibilities.
(b) After the Securities Commissioner has
determined the criminal conviction directly relates to the duties and
responsibilities of the license, the Securities Commissioner shall consider the
following evidence in determining whether the person is eligible for a license
issued by the Agency:
(1) The extent and
nature of the person's past criminal activity.
(2) The age of the applicant at the time of
the commission of the crime.
(3)
The amount of time that has elapsed since the applicant's last criminal
activity.
(4) The conduct and work
activity of the applicant prior to and following the criminal
activity.
(5) Evidence of the
applicant's rehabilitation or rehabilitative effort while incarcerated or
following release.
(6) Evidence of
the person's compliance with any conditions of community supervision, parole,
or mandatory supervision.
(7) Other
evidence of the applicant's present fitness, including letters of
recommendation, may be provided and considered, including letters from
prosecution, law enforcement, and correctional officers who prosecuted,
arrested, or had custodial responsibility for the applicant; the sheriff and
chief of police in the community where the applicant resides; and any other
persons in contact with the applicant.
(8) It shall be the responsibility of the
applicant to the extent possible to secure and provide to the Securities
Commissioner the letters of recommendation described by paragraph (7) of this
subsection.
(c) The
State Securities Board considers that the following misdemeanors directly
relate to the duties and responsibilities of securities dealers and agents:
(1) any criminal violation of which fraud is
an essential element or that involves wrongful taking or possession of property
or services;
(2) any criminal
violation of the securities laws or regulations of this state, or of any other
state in the United States, or of the United States, or any foreign
jurisdiction;
(3) any criminal
violation of statutes designed to protect consumers against unlawful practices
involving insurance, securities, commodities or commodity futures, real estate,
franchises, business opportunities, consumer goods, or other goods and
services; and
(4) any criminal
violation involving an assault on a person.
(d) Prior to filing an application, a person
may request a preliminary evaluation of license eligibility from the State
Securities Board by following the procedure set out in §104.7 of this
title (relating to Preliminary Evaluation of License Eligibility) and paying
the requisite fee.
(e) Prior to
taking any action under subsection (a) of this section to deny any application
for registration, the State Securities Board shall comply with the notification
requirements of Texas Occupations Code, §53.0231 Notice of Pending Denial
of License, and §53.051.
(f)
Prior to taking any action under subsection (a) of this section to revoke or
suspend any application for registration, the State Securities Board shall
comply with the notification requirements of Texas Occupations Code,
§53.051.
(g) State Auditor
Applicant Best Practices Guide.
(1) The State
Securities Board shall post a link on its website to the Applicant Best
Practices Guide, to be developed and published by the state auditor as required
by Texas Occupations Code, §53.026. This guide, which shall be posted once
it becomes available, shall set forth best practices for an applicant with a
prior conviction to use when applying for a license.
(2) In each notice to deny, revoke, or
suspend a registration or to deny a person the opportunity be examined for a
registration, the State Securities Board shall include a link to the guide as
described in paragraph (1) of this subsection.
