,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hfie ,,in ,,the ,,house ,,of ,,representatives ,october #bg1 #bjbj,mr4 ,mc,henry 7for himself and ,mr4 ,huizenga7 introduced the following bill2 which was referred to the ,committee on the ,judiciary ,a ,,bill ,to impose a limitation on taxation and fees on transactions by certain securities industry participants1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,protecting ,retirement ,savers and ,everyday ,investors ,act4 #b4 ,findings ,congress finds the following3 7#a7 ,the ,united ,states capital markets are sophisticated1 complex1 diverse1 and highly interconnected interstate marketplaces that effect and process millions of trades daily for the benefit of individual and institutional investors throughout the ,united ,states1 including the retirement accounts of union members1 pensioners1 teachers1 policemen1 firemen1 first responders1 and other working ,americans1 as well as the endowments of colleges and universities and charitable organizations4 7#b7 ,the ,united ,states capital markets are the deepest1 most liquid markets in the world in large measure because of the low transaction costs that investors pay to trade securities4 7#c7 ,under the ,federal securities laws1 the ,securities and ,exchange ,commission serves as the primary supervisor and regulator of the ,united ,states capital markets 7with the assistance of other ,federal regulators71 while under ,state securities laws1 ,state regulators serve a secondary function of helping to protect investors with respect to securities offered and sold within their ,states4 7#d7 ,also pursuant to the ,federal securities laws1 ,congress directs the ,securities and ,exchange ,commission to assess transaction fees upon the ,united ,states capital markets that are designed to recover the ,commission's costs of supervising and regulating the ,united ,states capital markets4 7#e7 ,some ,states have proposed taxes and fees that are based on securities transactions and processing activity related thereto from investors from other ,states and would raise costs for all ,united ,states investors1 even investors outside of the ,states levying the taxes and fees4 #c4 ,limitation on taxation and fees on transactions by certain securities industry participants 7a7 ,in general ,the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended by adding at the end the following new title3 ,,xvii ,,limitation ,,on ,,taxation ,,and ,,fees ,,on ,,transactions ,,by ,,certain ,,securities ,,industry ,,participants #agja4 ,limitation 7a7 ,in general ,no ,state or political subdivision thereof may impose a direct or indirect tax upon a securities industry participant where that tax is based upon-- 7#a7 the number or volume of securities transactions that the securities industry participant consummates or processes1 in whole or in part1 within that ,state or political subdivision or by utilizing personnel1 resources1 systems1 facilities1 vendors1 technology1 or infrastructure that are located in or that traverse that ,state or political subdivision2 or 7#b7 the value of such securities transactions4 7b7 ,preservation of ,state and local taxing authority ,except as provided in this section1 nothing in this title shall be construed to modify1 impair1 or supersede1 or authorize the modification1 impairment1 or superseding of1 any ,state or local law pertaining to taxation that is otherwise permissible by or under the ,constitution of the ,united ,states or other ,federal law and in effect on the date of enactment of this ,act4 7c7 ,exception 7#a7 ,in general ,individual ,states may impose taxes and collections of those taxes on covered persons for transactions1 which may have occurred within the national market system1 to buy or sell securities of their own accord4 7#b7 ,covered person defined ,for purposes of paragraph 7#a7 and with respect to a ,state1 the term covered person means-- 7,a7 an individual with primary residence and domicile in that ,state2 and 7,b7 businesses1 corporations1 and other entities that-- 7i7 are not part of the national market system2 and 7ii7 are domiciled in and subject to that ,state's legal requirements4 7d7 ,definitions ,for purposes of this section3 7#a7 ,alternative trading system ,the term alternative trading system shall have the meaning set forth in section #bdb4cjj of title #ag1 ,code of ,federal ,regulations4 7#b7 ,commodity ,the term commodity shall have the meaning set forth in section #a;a of the ,commodity ,exchange ,act 7#g ,u4,s4,c4 #a;a7#i774 7#c7 ,national securities exchange ,the term national securities exchange shall have the meaning given such term under section #f of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;f7a774 7#d7 ,process ,the term process shall include all activities involved directly or indirectly in effectuating a securities transaction1 including entering1 transmitting1 routing1 matching1 and executing orders in securities1 as well as clearing1 settling1 reporting1 and consolidation and dissemination of data and any other incidental activity relating to securities transactions1 including to the maintenance and operation of backup and disaster recovery facilities and systems4 7#e7 ,securities industry participant ,the term securities industry participant means a federally regulated self-regulatory organization1 national securities exchange1 alternative trading system1 securities information processor1 commodities exchange1 clearing agency1 trade reporting facility1 broker1 dealer1 or securities trading system or platform owned or operated by a broker or dealer4 7#f7 ,securities transaction ,the term securities transaction means the purchase or sale of a security4 7#g7 ,other securities definitions ,the terms broker1 clearing agency1 dealer1 exchange1 securities information processor1 security1 and self-regulatory organization shall have the meanings given those terms1 respectively1 under section #c7;a7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c7a774 4 7b7 ,clerical amendment ,the table of contents under section #a7;b7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended by adding at the end the following3 ,,title ,,xvii--,,limitation ,,on ,,taxation ,,and ,,fees ,,on ,,transactions ,,by ,,certain ,,securities ,,industry ,,participants4 ,sec4 #agja4 ,limitation4 4