| 1 | 1 | | 88R3290 RDS-F |
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| 2 | 2 | | By: Springer S.J.R. No. 24 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A JOINT RESOLUTION |
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| 6 | 6 | | proposing a constitutional amendment prohibiting the enactment of a |
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| 7 | 7 | | law imposing an occupation tax on certain entities that enter into |
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| 8 | 8 | | transactions conveying securities or imposing a tax on certain |
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| 9 | 9 | | securities transactions. |
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| 10 | 10 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Article VIII, Texas Constitution, is amended by |
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| 12 | 12 | | adding Section 30 to read as follows: |
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| 13 | 13 | | Sec. 30. (a) In this section: |
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| 14 | 14 | | (1) "Registered securities market operator" means any |
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| 15 | 15 | | of the following entities, to the extent the entity is subject to |
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| 16 | 16 | | registration with and regulation by the United States Securities |
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| 17 | 17 | | and Exchange Commission or the United States Commodity Futures |
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| 18 | 18 | | Trading Commission, or the successor in function to either |
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| 19 | 19 | | commission: |
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| 20 | 20 | | (A) a self-regulatory organization, financial |
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| 21 | 21 | | institution, alternative trading system, broker, dealer, clearing |
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| 22 | 22 | | agency, or transfer agent, as those terms are defined by the |
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| 23 | 23 | | Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in |
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| 24 | 24 | | effect on January 1, 2023, or a regulation adopted under that Act in |
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| 25 | 25 | | effect on that date; |
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| 26 | 26 | | (B) an exchange that is registered as a national |
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| 27 | 27 | | securities exchange under Section 6 of the Securities Exchange Act |
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| 28 | 28 | | of 1934 (15 U.S.C. Section 78f); |
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| 29 | 29 | | (C) a board of trade, commodity pool operator, |
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| 30 | 30 | | derivatives clearing organization, electronic trading facility, or |
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| 31 | 31 | | organized exchange, as those terms are defined by the Commodity |
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| 32 | 32 | | Exchange Act (7 U.S.C. Section 1 et seq.) in effect on January 1, |
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| 33 | 33 | | 2023; |
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| 34 | 34 | | (D) an affiliate, subsidiary, or facility of an |
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| 35 | 35 | | entity described by Paragraph (A), (B), or (C); or |
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| 36 | 36 | | (E) an OTC reporting facility, as that term is |
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| 37 | 37 | | defined by rules promulgated by the Financial Industry Regulatory |
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| 38 | 38 | | Authority and in effect on January 1, 2023. |
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| 39 | 39 | | (2) "Securities transaction" means the purchase or |
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| 40 | 40 | | sale of a security, a contract or agreement to purchase or sell a |
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| 41 | 41 | | security, or a service to facilitate, match parties to, process, |
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| 42 | 42 | | report, clear, or settle the purchase or sale of a security on |
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| 43 | 43 | | behalf of a customer. |
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| 44 | 44 | | (3) "Security" has the meaning assigned by the |
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| 45 | 45 | | Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in |
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| 46 | 46 | | effect on January 1, 2023. |
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| 47 | 47 | | (b) The legislature may not enact a law that imposes: |
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| 48 | 48 | | (1) an occupation tax on a registered securities |
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| 49 | 49 | | market operator; or |
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| 50 | 50 | | (2) a tax on a securities transaction conducted by a |
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| 51 | 51 | | registered securities market operator. |
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| 52 | 52 | | (c) This section does not prohibit: |
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| 53 | 53 | | (1) the imposition of: |
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| 54 | 54 | | (A) a general business tax measured by business |
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| 55 | 55 | | activity; |
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| 56 | 56 | | (B) a tax on the production of minerals; |
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| 57 | 57 | | (C) a tax on insurance premiums; |
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| 58 | 58 | | (D) sales and use taxes on tangible personal |
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| 59 | 59 | | property or services; or |
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| 60 | 60 | | (E) a fee based on the cost of processing or |
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| 61 | 61 | | creating documents; or |
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| 62 | 62 | | (2) a change in the rate of a tax in existence on |
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| 63 | 63 | | January 1, 2024. |
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| 64 | 64 | | SECTION 2. This proposed constitutional amendment shall be |
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| 65 | 65 | | submitted to the voters at an election to be held November 7, 2023. |
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| 66 | 66 | | The ballot shall be printed to provide for voting for or against the |
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| 67 | 67 | | proposition: "The constitutional amendment prohibiting the |
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| 68 | 68 | | legislature from enacting a law imposing an occupation tax on |
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| 69 | 69 | | certain entities that enter into transactions conveying securities |
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| 70 | 70 | | or imposing a tax on certain securities transactions." |
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