BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.J.R. 24 is the constitutional amendment for the enabling legislation of S.B. 266. This amendment will protect the free enterprise of business relating to any registered securities market operator and promote the growth of financial institutions in the state that will serve the financial health of our economy. As an ancillary benefit, this bill would lower investment costs for those Texans who retired on fixed-income investments.

S.J.R. 24 proposes a constitutional amendment prohibiting 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.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article VIII, Texas Constitution, by adding Section 30, as follows:

Sec. 30. (a) Defines "registered securities market operator," "securities transaction," and "security."

(b) Prohibits the legislature from enacting 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) Provides that 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 January 1, 2024.

SECTION 2. Requires that the proposed constitutional amendment be submitted to the voters at an election to be held November 7, 2023. Sets forth the required language of the ballot.