7 Tex. Admin. Code § 115.6 - Registration of Persons with Criminal Backgrounds
(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
provides a link on its website to the Applicant Best Practices Guide, which is published by the state auditor as required by Texas Occupations Code,
§
53.026. This guide
setsforth 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.
Notes
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