Current through Reg. 49, No. 38; September 20, 2024
(a)
Definitions. The following words and terms, when used in this section, shall
have the following meanings unless the context clearly indicates otherwise.
(1) Charitable organization--A 501(c)(3)
nonprofit organization located in Texas that provides services to economically
disadvantaged individuals and families.
(2) Client--An individual receiving services
from a financial coach or counselor of a charitable organization relating to a
Texas qualified tuition program plan.
(3) Economically disadvantaged--Eligible for
services based on criteria established by a charitable organization using the
poverty guidelines updated periodically in the Federal
Register by the U.S. Department of Health and Human Services under the
authority of
RSA
9902(2).
(4) Financial coach or counselor--An
individual acting on behalf of a charitable organization in counseling or
providing services to economically disadvantaged clients of the charitable
organization.
(5) Texas qualified
tuition program plan--A fund or plan established under the Texas Education
Code, Chapter 54, Subchapter G, H, or I, as amended.
(b) Exemption from dealer, agent, investment
adviser, and investment adviser representative registration. The State
Securities Board, pursuant to the Texas Securities Act, § 12.C, exempts a
charitable organization and its financial coaches and counselors from the
dealer, agent, investment adviser, and investment adviser representative
registration requirements of the Texas Securities Act, when their
securities-related activities are limited to:
(1) assisting economically disadvantaged
clients with completing documentation necessary to enroll or make a
contribution to a Texas qualified tuition program plan; and
(2) providing materials relating to a Texas
qualified tuition program plan that have been prepared on behalf of or approved
by the plan manager or administrator of a Texas qualified tuition program plan,
Texas Prepaid Higher Education Tuition Board, Office of the Comptroller of
Public Accounts, Texas State Securities Board, Texas Match the Promise
Foundation, or a tax-exempt charitable organization established by law to
implement the Texas Save and Match Program.
(c) Prohibited activities. A charitable
organization and its financial coaches and counselors are prohibited from the
following activities in connection with a client's enrollment in or
contribution to a Texas qualified tuition program plan:
(1) selecting or recommending a particular
investment option; or
(2) receiving
a commission or other remuneration.
