I 
117TH CONGRESS 
1ST SESSION H. R. 1584 
To impose a limitation on taxation and fees on transactions by certain 
securities industry participants, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2021 
Mr. MCHENRY (for himself and Mr. HUIZENGA) introduced the following bill; 
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 participants, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting Retirement 
Savers and Everyday Investors Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The United States capital markets are so-
phisticated, complex, diverse, and highly inter-
connected interstate marketplaces that effect and 
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process millions of trades daily for the benefit of in-
dividual and institutional investors throughout the 
United States, including the retirement accounts of 
union members, pensioners, teachers, policemen, 
firemen, first responders, and other working Ameri-
cans, as well as the endowments of colleges and uni-
versities and charitable organizations. 
(2) The United States capital markets are the 
deepest, most liquid markets in the world in large 
measure because of the low transaction costs that in-
vestors pay to trade securities. 
(3) Under the Federal securities laws, the Secu-
rities and Exchange Commission serves as the pri-
mary supervisor and regulator of the United States 
capital markets (with the assistance of other Federal 
regulators), while under State securities laws, State 
regulators serve a secondary function of helping to 
protect investors with respect to securities offered 
and sold within their States. 
(4) Also pursuant to the Federal securities 
laws, 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 markets. 
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(5) Some States have proposed taxes and fees 
that are based on securities transactions and proc-
essing activity related thereto from investors from 
other States and would raise costs for all United 
States investors, even investors outside of the States 
levying the taxes and fees. 
SEC. 3. LIMITATION ON TAXATION AND FEES ON TRANS-
ACTIONS BY CERTAIN SECURITIES INDUSTRY 
PARTICIPANTS. 
(a) IN GENERAL.—The Dodd-Frank Wall Street Re-
form and Consumer Protection Act is amended by adding 
at the end the following new title: 
‘‘TITLE 
XVII—LIMITATION 
ON 
TAXATION 
AND 
FEES 
ON 
TRANSACTIONS BY CERTAIN 
SECURITIES INDUSTRY PAR-
TICIPANTS 
‘‘SEC. 1701. LIMITATION. 
‘‘(a) IN GENERAL.—No State or political subdivision 
thereof may impose a direct or indirect tax upon a securi-
ties industry participant where that tax is based upon— 
‘‘(1) the number or volume of securities trans-
actions that the securities industry participant con-
summates or processes, in whole or in part, within 
that State or political subdivision or by utilizing per-
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sonnel, resources, systems, facilities, vendors, tech-
nology, or infrastructure that are located in or that 
traverse that State or political subdivision; or 
‘‘(2) the value of such securities transactions. 
‘‘(b) PRESERVATION OF STATE AND LOCAL TAXING 
AUTHORITY.—Except as provided in this section, nothing 
in this title shall be construed to modify, impair, or super-
sede, or authorize the modification, impairment, or super-
seding of, 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 Act. 
‘‘(c) EXCEPTION.— 
‘‘(1) IN GENERAL.—Individual States may im-
pose taxes and collections of those taxes on covered 
persons for transactions, which may have occurred 
within the national market system, to buy or sell se-
curities of their own accord. 
‘‘(2) COVERED
PERSON
DEFINED.—For pur-
poses of paragraph (1) and with respect to a State, 
the term ‘covered person’ means— 
‘‘(A) an individual with primary residence 
and domicile in that State; and 
‘‘(B) businesses, corporations, and other 
entities that— 
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‘‘(i) are not part of the national mar-
ket system; and 
‘‘(ii) are domiciled in and subject to 
that State’s legal requirements. 
‘‘(d) DEFINITIONS.—For purposes of this section: 
‘‘(1) ALTERNATIVE
TRADING
SYSTEM.—The 
term ‘alternative trading system’ shall have the 
meaning set forth in section 242.300 of title 17, 
Code of Federal Regulations. 
‘‘(2) COMMODITY.—The term ‘commodity’ shall 
have the meaning set forth in section 1a of the Com-
modity Exchange Act (7 U.S.C. 1a(9)). 
‘‘(3) NATIONAL SECURITIES EXCHANGE.—The 
term ‘national securities exchange’ shall have the 
meaning given such term under section 6 of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78f(a)). 
‘‘(4) PROCESS.—The term ‘process’ shall in-
clude all activities involved directly or indirectly in 
effectuating a securities transaction, including enter-
ing, transmitting, routing, matching, and executing 
orders in securities, as well as clearing, settling, re-
porting, and consolidation and dissemination of data 
and any other incidental activity relating to securi-
ties transactions, including to the maintenance and 
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operation of backup and disaster recovery facilities 
and systems. 
‘‘(5) SECURITIES
INDUSTRY
PARTICIPANT.— 
The term ‘securities industry participant’ means a 
federally regulated self-regulatory organization, na-
tional securities exchange, alternative trading sys-
tem, securities information processor, commodities 
exchange, clearing agency, trade reporting facility, 
broker, dealer, or securities trading system or plat-
form owned or operated by a broker or dealer. 
‘‘(6) SECURITIES TRANSACTION.—The term ‘se-
curities transaction’ means the purchase or sale of 
a security. 
‘‘(7) OTHER
SECURITIES
DEFINITIONS.—The 
terms ‘broker’, ‘clearing agency’, ‘dealer’, ‘exchange’, 
‘securities information processor’, ‘security’, and 
‘self-regulatory organization’ shall have the mean-
ings given those terms, respectively, under section 
3(a) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)).’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
under section 1(b) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act is amended by adding at 
the end the following: 
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‘‘TITLE XVII—LIMITATION ON TAXATION AND FEES ON TRANS-
ACTIONS BY CERTAIN SECURITIES INDUSTRY PAR-
TICIPANTS. 
‘‘Sec. 1701. Limitation.’’. 
Æ 
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