Texas 2021 - 87th Regular

Texas House Bill HB3702 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Paddie, Meyer, Tinderholt H.B. No. 3702
2		-	(Senate Sponsor - Springer)
3		-	(In the Senate - Received from the House May 5, 2021;
4		-	May 13, 2021, read first time and referred to Committee on Finance;
5		-	May 21, 2021, reported favorably by the following vote: Yeas 12,
6		-	Nays 0; May 21, 2021, sent to printer.)
7		-	Click here to see the committee vote
	1	+	By: Paddie, Meyer, et al. H.B. No. 3702
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9	3
10	4		A BILL TO BE ENTITLED
11	5		AN ACT
12	6		relating to prohibiting the enactment of a law that imposes a tax on
13	7		certain transactions that either convey a security or involve
14	8		specified derivative contracts.
15	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	10		SECTION 1. Chapter 101, Tax Code, is amended by adding
17	11		Section 101.010 to read as follows:
18	12		Sec. 101.010. PROVISIONS RELATING TO SECURITIES MARKET
19	13		OPERATORS. (a) After January 1, 2022, no law may be enacted that
20	14		imposes an occupation tax on a registered securities market
21	15		operator or a tax on a securities transaction of a registered
22	16		securities market operator.
23	17		(b) The term "registered securities market operator" means
24	18		a self-regulatory organization, national securities exchange,
25	19		financial institution, alternative trading system, trade reporting
26	20		facility, broker, dealer, clearing agency, or transfer agent, as
27	21		those terms are defined in the Securities Exchange Act of 1934 (15
28	22		U.S.C. 78a et seq.) or a board of trade, commodities pool operator,
29	23		derivatives clearing organization, electronic trading facility, or
30	24		organized exchange, as that term is defined in the Commodity
31	25		Exchange Act (7 U.S.C. Section 1 et seq.), or an affiliate,
32	26		subsidiary, or facility thereof, to the extent that such regulated
33	27		securities market operator is subject to registration with and
34	28		regulation by the U.S. Securities and Exchange Commission or the
35	29		U.S. Commodities Futures Trading Commission.
36	30		(c) The term "security" or "securities" means the
37	31		definition of that term set forth in the Securities Exchange Act of
38	32		1934 (15 U.S.C. Section 78c(a)(10)).
39	33		(d) The term "securities transaction" means the purchase or
40	34		sale of securities by a registered securities market operator on
41	35		behalf of a customer, any contract or agreement to do the same, and
42	36		any service by a registered securities market operator to
43	37		facilitate, match parties to, process, report, clear, or settle the
44	38		purchase or sale of securities on behalf of a customer.
45	39		(e) This section does not prohibit:
46	40		(1) the imposition of a general business tax measured
47	41		by business activity;
48	42		(2) the imposition of a tax on the production of
49	43		minerals;
50	44		(3) the imposition of a tax on insurance premiums;
51	45		(4) the imposition of a general sales tax on tangible
52	46		personal property or services;
53	47		(5) the imposition of a fee based on the cost of
54	48		processing documents; or
55	49		(6) the change of a rate of a tax in existence on
56	50		January 1, 2022.
57	51		SECTION 2. This Act takes effect January 1, 2022, but only
58	52		if the constitutional amendment proposed by the 87th Legislature,
59	53		Regular Session, 2021, to authorize the legislature to prohibit the
60	54		enactment of a law that imposes a tax on certain transactions that
61	55		either convey a security or involve specified derivative contracts
62	56		is approved by the voters. If that amendment is not approved by the
63	57		voters, this Act has no effect.
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