88R3292 RDS-F By: Springer S.B. No. 266 A BILL TO BE ENTITLED AN ACT relating to a prohibition on the enactment of a law imposing an occupation tax on certain entities that enter into transactions conveying securities or imposing a tax on certain securities transactions. 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. LIMITATION: TAXES IMPOSED ON SECURITIES TRANSACTIONS AND ENTITIES ENGAGING IN SECURITIES TRANSACTIONS. (a) In this section: (1) "Registered securities market operator" means any of the following entities, to the extent the entity is subject to registration with and regulation by the United States Securities and Exchange Commission or the United States Commodity Futures Trading Commission, or the successor in function to either commission: (A) a self-regulatory organization, financial institution, alternative trading system, broker, dealer, clearing agency, or transfer agent, as those terms are defined by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in effect on January 1, 2023, or a regulation adopted under that Act in effect on that date; (B) an exchange that is registered as a national securities exchange under Section 6 of the Securities Exchange Act of 1934 (15 U.S.C. Section 78f); (C) a board of trade, commodity pool operator, derivatives clearing organization, electronic trading facility, or organized exchange, as those terms are defined by the Commodity Exchange Act (7 U.S.C. Section 1 et seq.) in effect on January 1, 2023; (D) an affiliate, subsidiary, or facility of an entity described by Paragraph (A), (B), or (C); or (E) an OTC reporting facility, as that term is defined by rules promulgated by the Financial Industry Regulatory Authority and in effect on January 1, 2023. (2) "Securities transaction" means the purchase or sale of a security, a contract or agreement to purchase or sell a security, or a service to facilitate, match parties to, process, report, clear, or settle the purchase or sale of a security on behalf of a customer. (3) "Security" has the meaning assigned by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) in effect on January 1, 2023. (b) Notwithstanding any other law, the legislature may not enact a law that imposes: (1) an occupation tax on a registered securities market operator; or (2) a tax on a securities transaction conducted by a registered securities market operator. (c) This section does not prohibit: (1) the imposition of: (A) a general business tax measured by business activity; (B) a tax on the production of minerals; (C) a tax on insurance premiums; (D) sales and use taxes on tangible personal property or services; or (E) a fee based on the cost of processing or creating documents; or (2) a change in the rate of a tax in existence on September 1, 2023. SECTION 2. This Act takes effect September 1, 2023.