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  89R16486 SRA-F     By: Capriglione, Button H.B. No. 3684     Substitute the following for H.B. No. 3684:     By:  Vasut C.S.H.B. No. 3684       A BILL TO BE ENTITLED   AN ACT   relating to the exclusion of certain securities transaction   payments from the total revenue of a taxable entity that is a   registered securities market operator.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 171.0001(13-a), Tax Code, is amended to   read as follows:                (13-a)  "Security," for purposes of Sections   171.1011(g), 171.1011(g-2), 171.1011(y), 171.1011(z), and   171.106(f) only, has the meaning assigned by Section 475(c)(2),   Internal Revenue Code, and includes instruments described by   Sections 475(e)(2)(B), (C), and (D) of that code.          SECTION 2.  Section 171.1011, Tax Code, is amended by adding   Subsections (y) and (z) to read as follows:           (y)     A taxable entity that is a registered securities market   operator shall exclude from its total revenue transaction rebate   payments made by the operator to a broker or dealer as part of a   securities transaction.           (z)  For purposes of Subsection (y):                 (1)     "Broker" has the meaning assigned by 15 U.S.C.   Section 78c(a)(4).                 (2)     "Dealer" has the meaning assigned by 15 U.S.C.   Section 78c(a)(5).                 (3)     "Registered securities market operator"   means an   entity that is:                       (A)     engaged in activities described in category   523210 of the 2022 North American Industry Classification System;   and                       (B)     subject to registration with and regulation   by the United States Securities and Exchange Commission or the   United States Commodity Futures Trading Commission.                 (4)     "Securities transaction" means the purchase or   sale of a security by a broker or dealer.                 (5)     "Transaction rebate payment" means an amount paid   to incentivize a broker or dealer to provide liquidity to the   market.          SECTION 3.  This Act applies only to a report originally due   on or after the effective date of this Act.          SECTION 4.  This Act takes effect January 1, 2026.