Relating to the exclusion of certain securities transaction payments from the total revenue of a taxable entity that is a registered securities market operator.

HB 3684 modifies Texas franchise tax rules to exclude specific payments from taxable revenue for securities exchanges and their members. It requires exchanges to exclude transaction rebate payments made to members for securities transactions (buying/selling securities on an exchange), and members to exclude similar payments received from exchanges. These excluded payments are defined as compensation for providing market liquidity. The change applies only to franchise tax reports due on or after January 1, 2026, and affects entities operating as registered securities market operators.