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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a bitcoin reserve within the state |
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treasury and the management of cryptocurrencies by governmental |
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entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. This Act may be cited as the Texas Strategic |
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Bitcoin Reserve Act. |
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SECTION 2. Chapter 403, Government Code, is amended by |
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adding Subchapter U to read as follows: |
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SUBCHAPTER U. TEXAS STRATEGIC BITCOIN RESERVE |
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Sec. 403.701. DEFINITIONS. In this subchapter: |
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(1) "Bitcoin" means the decentralized digital asset |
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created by a peer-to-peer network, which operates with no central |
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authority or banks. |
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(2) "Cold storage" means a method of storing private |
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keys required to transact in Bitcoin, with a nexus to a secure |
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physical location, protected from unauthorized access and isolated |
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from any network connections. |
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(3) "Cryptocurrency" means a type of virtual currency |
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that utilizes cryptography to secure transactions that are |
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digitally recorded on a distributed ledger, such as a blockchain. |
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(4) "Custody" means the holding, safeguarding, and |
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managing of Bitcoin assets by the state treasury. |
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(5) "Donor" means a Texas resident who gifts, grants, |
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donates, bequests, or devises Bitcoin to the Texas Strategic |
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Bitcoin Reserve. |
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Sec. 403.702. LEGISLATIVE FINDINGS. The legislature finds |
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that: |
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(1) the legislature recognizes Bitcoin as a valuable |
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digital asset with strategic potential for enhancing the state's |
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fiscal resilience; |
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(2) Bitcoin's decentralized nature and finite supply |
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provide unique qualities that can serve as a hedge against |
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inflation and economic volatility; and |
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(3) A strategic Bitcoin reserve aligns with Texas's |
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commitment to fostering innovation in digital assets and providing |
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Texans with enhanced financial security. |
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Sec. 403.703. PURPOSE. This fund allows the state to own |
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Bitcoin as a financial asset and for Texans to voluntarily donate |
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Bitcoin to promote a shared ownership and community investment in |
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Texas's financial future. |
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Sec. 403.704. ADMINISTRATION OF RESERVE. (a) The Texas |
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Strategic Bitcoin Reserve is a special fund in the state treasury |
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outside the general revenue fund in the custody of the comptroller |
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for the purpose of holding Bitcoin as a financial asset. |
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(b) The comptroller shall maintain custody of all Bitcoin |
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held in the Reserve and is responsible for implementing secure |
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storage, management, and reporting systems for these assets. |
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(c) The Reserve is designated as a strategic asset for the |
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State of Texas and may not be used for purposes other than those |
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outlined in this subchapter. |
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(d) The comptroller may accept gifts, grants, and donations |
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of Bitcoin from certain Texas residents or a governmental entity as |
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defined by Section 2252.001, Government Code. |
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(e) The comptroller shall store all Bitcoin for a duration |
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of at least five years from the date that the Bitcoin enters the |
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state's custody. After this mandatory period, the Bitcoin may be |
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transferred, sold, appropriated, or converted to another |
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cryptocurrency as directed by the comptroller. |
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Sec. 403.705. MANAGEMENT AND SECURITY. (a) The |
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comptroller shall develop policies and protocols to ensure the |
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secure storage and protection of Bitcoin held in the Reserve, |
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including the use of secure custodial technologies, cold storage, |
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and best practices in digital asset management. |
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(b) The comptroller shall prohibit transactions involving |
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foreign countries, entities or individuals outside of Texas, or |
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entities or individuals known to engage in illegal activities. |
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(c) The comptroller may contract with a qualified, |
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independent, United States-based third-party cryptocurrency entity |
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to assist in the creation, maintenance, operation, or |
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administration of the Reserve's security. |
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(d) The comptroller may conduct regular audits of the |
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Reserve to ensure transparency and security. |
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Sec. 403.706. BIENNIAL REPORTS. (a) The comptroller shall |
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prepare a biennial report including: |
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(1) the total amount of Bitcoin held in the reserve; |
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(2) details of the equivalent value of the reserve in |
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dollars; |
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(3) the growth of the account since the previous |
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report; |
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(4) any transactions or expenditures related to the |
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Reserve since the previous report; |
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(6) any security threats experienced since the |
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previous report; and |
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(5) the amount of Bitcoin that, after the mandatory |
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five-year holding period, is eligible to be converted or |
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transferred. |
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(b) Not later than December 31 of each even-numbered year, |
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the comptroller shall electronically publish the report on the |
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comptroller's Internet website and notify each member of the |
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legislature that the report is available on the website. |
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Sec. 403.707. VOLUNTARY DONATIONS OF BITCOIN BY TEXAS |
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RESIDENTS. |
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(a) The Texas Strategic Bitcoin Reserve may accept a gift, |
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grant, donation, bequest, or devise of Bitcoin from Texas |
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residents. |
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(b) The comptroller shall develop a straightforward |
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donation process to facilitate Bitcoin contributions from Texans. |
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(c) All Bitcoin donations shall be held in the Texas |
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Strategic Bitcoin Reserve and managed under the same protocols as |
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other assets in the treasury. |
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(d) Upon request, the comptroller may issue a certificate of |
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acknowledgment to individuals or organizations donating Bitcoin to |
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the Reserve. |
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(e) The treasury may also establish a recognition program to |
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publicly honor significant contributions made by Texans. |
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(f) The comptroller shall have the discretion to determine |
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the eligibility of donors. If the comptroller determines that a |
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donor is ineligible, the comptroller may establish a process to |
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return any Bitcoin transferred to the reserve to the ineligible |
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donor. |
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Sec. 403.708. RULEMAKING. The comptroller may adopt rules |
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as necessary to administer this subchapter, including but not |
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limited to security protocols, reporting standards, and donation |
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procedures. |
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Sec. 403.709. EXPIRATION. This subchapter expires |
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September 1, 2035. |
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SECTION 3. The heading to Section 403.023, Government Code, |
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is amended to read as follows: |
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Sec. 403.023. CREDIT, CHARGE, CRYPTOCURRENCY, AND DEBIT |
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CARDS. |
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SECTION 4. Section 403.023, Government Code, is amended to |
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read as follows: |
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(a) The comptroller may adopt rules relating to the |
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acceptance of credit, charge, certain cryptocurrencies, and debit |
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cards for the payment of fees, taxes, and other charges assessed by |
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state agencies. The rules may: |
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(1) authorize a state agency to accept credit, charge, |
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certain cryptocurrencies, or debit cards for a payment if the |
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comptroller determines the best interests of the state would be |
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promoted; |
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(2) authorize or require a person that uses a credit, |
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charge, or debit card to pay a processing fee to the state agency |
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that accepts the card for a payment; and |
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(3) authorize a particular state agency to accept |
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credit, charge, certain cryptocurrencies, or debit cards for a |
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payment without providing the same authorization to other state |
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agencies. |
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(b) The comptroller may adopt rules relating to the use of |
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credit or charge cards by state agencies to pay for purchases. The |
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rules may: |
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(1) authorize a state agency to use credit or charge |
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cards if the comptroller determines the best interests of the state |
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would be promoted; |
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(2) authorize a state agency to use credit or charge |
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cards to pay for purchases without providing the same authorization |
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to other state agencies; and |
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(3) authorize a state agency to use credit or charge |
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cards to pay for purchases that otherwise may be paid out of the |
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agency's petty cash accounts under Subchapter K. |
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(c) The comptroller may not adopt rules about a particular |
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state agency's acceptance of credit or charge cards for a payment if |
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the rules would affect a contract that the agency has entered into |
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that is in effect on September 1, 1993. The comptroller may not |
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adopt rules about a particular state agency's acceptance of charge |
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or debit cards for a payment if the rules would affect a contract |
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that the agency has entered into that is in effect on September 1, |
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1999. |
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(d) The comptroller may not adopt rules about a particular |
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state agency's acceptance or use of credit, charge, cryptocurrency, |
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or debit cards if another law specifically authorizes, requires, |
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prohibits, or otherwise regulates the acceptance or use. |
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(e) State agencies that accept cryptocurrencies shall first |
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convert the accepted cryptocurrencies to an equivalent value of |
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Bitcoin, if necessary, before depositing the Bitcoin to the credit |
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of the Texas Strategic Bitcoin Reserve. |
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(f) The comptroller shall establish rules to compensate |
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departments or agencies for the equivalent value of United States |
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dollars of the Bitcoin received. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |