Section 44 permits the portal operations to be subcontracted out to a third party, as permitted by Board rule. 
Subsection (h) imposes certain conditions on such a subcontracting arrangement. First, since the Third Party Operator will be performing certain portal functions and will likely have required records, it should be located in the state so the Agency has ready access to the records. 
(Since the Third Party Operator is not registered with us as a dealer, the Agency would lack inspection authority over them.)

Second, there must be a written agreement between the Registered Small Business Development Entity and the Third Party Operator that specifies certain terms, including: 
(1) the scope of work to be performed by the Third Party Operator; 
(2) business offices and records reflecting the activities of the portal must be located in Texas and identified in the agreement; and 
(3) the division of responsibility between the Registered Small Business Development Entity and the Third Party Operator for maintaining records and instituting procedures to comply with requirements imposed by rule upon the portal.  A copy of this written agreement must be filed with the Securities Commissioner at least 10 days before the Third Party Operator can begin work operating the web portal. When registering a crowdfunding portal under §115.19, the Registration Division looks at how the portal functions will be performed. Accordingly, if a Third Party Operator is used, it will need to be identified during the registration process and the functioning of the website available for review by Staff as is the case with portals registered under §115.19. The Section 44 portal would be responsible for providing the Commissioner access to the records and website.
Comments on the proposal must be in writing and will be accepted for 30 days following publication of the proposed section in the Texas Register. 
Written comments should be submitted to 
Marlene K. Sparkman, General Counsel, State Securities Board, P.O. Box 13167, Austin, Texas 78711 3167 or faxed to (512) 305 8336. 
Comments may also be submitted electronically to
 [email protected] 
In order to be considered by the Board at adoption, comments must be received no later than 30 days following publication.
Texas Administrative Code     RULE §115.19Texas Crowdfunding Portal Registration and Activities