| 1 | | - | By: Parker, Blanco S.B. No. 1058 |
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| 1 | + | By: Parker S.B. No. 1058 |
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| 2 | + | (In the Senate - Filed February 3, 2025; February 24, 2025, |
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| 3 | + | read first time and referred to Committee on Business & Commerce; |
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| 4 | + | March 31, 2025, reported adversely, with favorable Committee |
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| 5 | + | Substitute by the following vote: Yeas 10, Nays 0; March 31, 2025, |
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| 6 | + | sent to printer.) |
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| 7 | + | Click here to see the committee vote |
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| 8 | + | COMMITTEE SUBSTITUTE FOR S.B. No. 1058 By: Campbell |
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| 4 | 9 | | |
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| 5 | 10 | | |
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| 6 | 11 | | A BILL TO BE ENTITLED |
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| 7 | 12 | | AN ACT |
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| 8 | 13 | | relating to the exclusion of certain securities transaction |
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| 9 | 14 | | payments from the total revenue of a taxable entity that is a |
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| 10 | 15 | | registered securities market operator. |
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| 11 | 16 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 17 | | SECTION 1. Section 171.0001(13-a), Tax Code, is amended to |
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| 13 | 18 | | read as follows: |
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| 14 | 19 | | (13-a) "Security," for purposes of Sections |
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| 15 | 20 | | 171.1011(g), 171.1011(g-2), 171.1011(y), 171.1011(z), and |
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| 16 | 21 | | 171.106(f) only, has the meaning assigned by Section 475(c)(2), |
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| 17 | 22 | | Internal Revenue Code, and includes instruments described by |
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| 18 | 23 | | Sections 475(e)(2)(B), (C), and (D) of that code. |
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| 19 | 24 | | SECTION 2. Section 171.1011, Tax Code, is amended by adding |
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| 20 | 25 | | Subsections (y) and (z) to read as follows: |
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| 21 | 26 | | (y) A taxable entity that is a registered securities market |
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| 22 | 27 | | operator shall exclude from its total revenue transaction rebate |
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| 23 | 28 | | payments made by the operator to a broker or dealer as part of a |
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| 24 | 29 | | securities transaction. |
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| 25 | 30 | | (z) For purposes of Subsection (y): |
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| 26 | 31 | | (1) "Broker" has the meaning assigned by 15 U.S.C. |
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| 27 | 32 | | Section 78c(a)(4). |
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| 28 | 33 | | (2) "Dealer" has the meaning assigned by 15 U.S.C. |
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| 29 | 34 | | Section 78c(a)(5). |
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| 30 | 35 | | (3) "Registered securities market operator" means an |
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| 31 | 36 | | entity that is: |
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| 32 | 37 | | (A) engaged in activities described in category |
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| 33 | 38 | | 523210 of the 2022 North American Industry Classification System; |
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| 34 | 39 | | and |
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| 35 | 40 | | (B) subject to registration with and regulation |
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| 36 | 41 | | by the United States Securities and Exchange Commission or the |
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| 37 | 42 | | United States Commodity Futures Trading Commission. |
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| 38 | 43 | | (4) "Securities transaction" means the purchase or |
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| 39 | 44 | | sale of a security by a broker or dealer. |
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| 40 | 45 | | (5) "Transaction rebate payment" means an amount paid |
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| 41 | 46 | | to incentivize a broker or dealer to provide liquidity to the |
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| 42 | 47 | | market. |
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| 43 | 48 | | SECTION 3. This Act applies only to a report originally due |
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| 44 | 49 | | on or after the effective date of this Act. |
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| 45 | 50 | | SECTION 4. This Act takes effect January 1, 2026. |
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