§ 1371.155 — REQUIREMENTS.

Texas § 1371.155

• Jurisdiction: Texas
• Code GV: Government Code

Text

Sec. 1371.155. REQUIREMENTS. (a) An adviser, including an adviser that is not required to be registered under Section 1371.154 (b)(1)(A), shall comply with the following with respect to all services contemplated under this subchapter to be provided in this state:
(1) in conducting services as an adviser of the issuer, the adviser shall deal fairly with all persons and may not engage in any deceptive, dishonest, or unfair practice;
(2) in recommending to an issuer any transaction involving the issuance of public securities, the execution and delivery of interest rate management agreements, or the investment of proceeds of securities, the adviser shall have reasonable grounds for making the recommendation based on the information made available by the issuer or information the adviser otherwise knows about the issuer;
(3) the adviser may not in any year, directly or indirectly, give or permit to be given to an employee or an elected or appointed official of an issuer gifts or services of value, including gratuities, that have a total cumulative value of more than $100;
(4) the adviser may not, directly or indirectly, provide or agree to provide payment to a person who is not affiliated with the adviser for a solicitation of advisory business for the adviser; and
(5) the adviser may not act as adviser to an issuer before the second anniversary of the date of making a contribution to an official of the issuer if the contribution is made by:
(A) the adviser;
(B) a municipal finance professional associated with the adviser; or
(C) a political action committee controlled by the adviser or by a municipal finance profession associated with the adviser.
(b) Notwithstanding Subsection (a)(3), this section does not prohibit an adviser, including an adviser that is not required to be registered under Section 1371.154 (b)(1)(A), from:
(1) giving an employee or an elected or appointed official of an issuer occasional gifts of meals or tickets to theatrical, sporting, or other entertainments hosted by the adviser;
(2) sponsoring legitimate business functions for the issuer that are recognized by the Internal Revenue Service as deductible business expenses; or
(3) providing to the issuer or an employee or elected or appointed official of the issuer gifts of reminder advertising.
(c) A gift or sponsorship given or provided by an adviser, including an adviser that is not required to be registered under Section 1371.154 (b)(1)(A), to an issuer under Subsection (b) may not be so frequent or so extensive that a question of impropriety is raised.
(d) Notwithstanding Subsection (a)(5), this section does not prohibit an adviser, including an adviser that is not required to be registered under Section 1371.154 (b)(1)(A), from acting as an adviser to an issuer if the only contributions made to an official of the issuer before the second anniversary of the date of making a contribution described by Subsection (a)(5):
(1) were made by municipal finance professionals who were entitled to vote; and
(2) were not in excess of $250 for each election.

Legislative History

Added by Acts 2007, 80th Leg., R.S., Ch. 991 (S.B. 1332 ), Sec. 7, eff. September 1, 2007.