By: Paddie, Meyer, Tinderholt H.B. No. 3702
(Senate Sponsor - Springer)
(In the Senate - Received from the House May 5, 2021;
May 13, 2021, read first time and referred to Committee on Finance;
May 21, 2021, reported favorably by the following vote: Yeas 12,
Nays 0; May 21, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the enactment of a law that imposes a tax on
certain transactions that either convey a security or involve
specified derivative contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 101, Tax Code, is amended by adding
Section 101.010 to read as follows:
Sec. 101.010. PROVISIONS RELATING TO SECURITIES MARKET
OPERATORS. (a) After January 1, 2022, no law may be enacted that
imposes an occupation tax on a registered securities market
operator or a tax on a securities transaction of a registered
securities market operator.
(b) The term "registered securities market operator" means
a self-regulatory organization, national securities exchange,
financial institution, alternative trading system, trade reporting
facility, broker, dealer, clearing agency, or transfer agent, as
those terms are defined in the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.) or a board of trade, commodities pool operator,
derivatives clearing organization, electronic trading facility, or
organized exchange, as that term is defined in the Commodity
Exchange Act (7 U.S.C. Section 1 et seq.), or an affiliate,
subsidiary, or facility thereof, to the extent that such regulated
securities market operator is subject to registration with and
regulation by the U.S. Securities and Exchange Commission or the
U.S. Commodities Futures Trading Commission.
(c) The term "security" or "securities" means the
definition of that term set forth in the Securities Exchange Act of
1934 (15 U.S.C. Section 78c(a)(10)).
(d) The term "securities transaction" means the purchase or
sale of securities by a registered securities market operator on
behalf of a customer, any contract or agreement to do the same, and
any service by a registered securities market operator to
facilitate, match parties to, process, report, clear, or settle the
purchase or sale of securities on behalf of a customer.
(e) This section does not prohibit:
(1) the imposition of a general business tax measured
by business activity;
(2) the imposition of a tax on the production of
minerals;
(3) the imposition of a tax on insurance premiums;
(4) the imposition of a general sales tax on tangible
personal property or services;
(5) the imposition of a fee based on the cost of
processing documents; or
(6) the change of a rate of a tax in existence on
January 1, 2022.
SECTION 2. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, to authorize the legislature to prohibit the
enactment of a law that imposes a tax on certain transactions that
either convey a security or involve specified derivative contracts
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.
* * * * *