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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the State Blockchain Technology |
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Pilot Program by the Department of Information Resources. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2054, Government Code, is amended by |
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adding Subchapter T to read as follows: |
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SUBCHAPTER T. STATE BLOCKCHAIN TECHNOLOGY PILOT PROGRAM |
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Sec. 2054.701. DEFINITIONS. In this subchapter: |
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(1) "Blockchain" means a distributed ledger |
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technology that records transactions in a verifiable and immutable |
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manner, shared across multiple nodes in a network, ensuring |
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transparency and security. |
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(2) "Program" means the State Blockchain Technology |
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Pilot Program established under Section 2054.702. |
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(3) "Program participant" means the state agency |
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selected by the governor to participate in the program under |
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Section 2054.703. |
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Sec. 2054.702. ESTABLISHMENT OF PROGRAM. (a) The board |
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shall establish a pilot program to explore the application and |
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benefits of the use of blockchain technology by the program |
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participant for the purpose of improving transparency, security, |
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and efficiency in government operations. |
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(b) The program shall study the use of blockchain by the |
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program participant: |
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(1) to streamline the secure storage and retrieval of |
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records and documents; |
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(2) to improve the transparency of procurement |
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processes and tracking of goods or services utilized by the program |
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participant; |
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(3) to test secure methods for identity verification |
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of: |
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(A) employees of the program participant; |
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(B) contractors of the program participant; and |
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(C) citizens that interact with the program |
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participant; |
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(4) to enhance mechanisms for fraud detection and |
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prevention; and |
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(5) for any other application to improve public |
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services or administrative efficiency, as determined by the program |
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participant, the governor, or the department. |
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(c) In administering the program, the department shall |
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ensure compliance with cybersecurity and privacy measures. |
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Sec. 2054.703. SELECTION OF PROGRAM PARTICIPANT. (a) The |
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governor shall select a state agency to serve as the program |
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participant. |
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(b) The board shall provide the governor with |
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recommendations on the selection of the program participant based |
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on: |
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(1) the feasibility of implementing the program by the |
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program participant; |
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(2) the budget appropriated by the legislature to the |
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department for the program; |
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(3) the anticipated disruption to existing services of |
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the program participant; |
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(4) the anticipated efficacy of the program on |
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existing services of the program participant; and |
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(5) cybersecurity and confidentiality concerns. |
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Sec. 2054.704. REPORT. (a) Not later than January 1, 2029, |
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the department shall submit to the governor, lieutenant governor, |
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and members of the legislature a report documenting the outcomes of |
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the program. The report must include: |
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(1) an evaluation of the benefits and challenges of |
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implementing blockchain technology in the program participant's |
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operations; |
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(2) an assessment of the cost-effectiveness of the |
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blockchain solution compared to existing systems of the program |
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participant; |
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(3) a determination of feasibility on whether |
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blockchain should be expanded to other state agencies or |
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operations; and |
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(4) any identified risks, security concerns, or |
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regulatory barriers encountered during the program. |
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(b) The department may contract with a private entity to |
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prepare the report required under this section. |
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Sec. 2054.705. COLLABORATION. (a) For the purposes of |
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satisfying the requirements of Section 2054.702, the department |
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shall collaborate with a state university that operates: |
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(1) a statewide technology center for data established |
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under Section 2054.382; and |
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(2) a regional network security center established |
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under Section 2059.202. |
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(b) The department may collaborate or contract with private |
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technology firms or consultants for technical expertise or |
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assistance in implementing the program. |
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Sec. 2054.706. FUNDING. (a) Funding for the program |
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consists of: |
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(1) money appropriated by the legislature for the |
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purposes of the program; |
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(2) gifts, grants, and donations received under |
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Subsection (c); and |
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(3) any other money available for the purposes of the |
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program. |
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(b) If the amount available under Subsection (a) is less |
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than the costs to administer the program, the governor and the |
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Legislative Budget Board may transfer or repurpose money under a |
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proposal under Chapter 317 to provide additional funding to |
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administer the program. |
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(c) The department may solicit and accept gifts, grants, and |
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donations from any public or private source. |
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(d) Not later than January 1, 2029, the department shall |
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transfer all unspent funds to the general revenue fund. |
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Sec. 2054.707. RULES. The department shall adopt rules |
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necessary to administer the pilot program. |
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Sec. 2054.708. EXPIRATION. This subchapter expires |
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September 1, 2029. |
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SECTION 2. (a) Not later than December 1, 2025, the |
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Department of Information Resources shall adopt rules necessary to |
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implement and administer the State Blockchain Technology Pilot |
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Program established under Section 2054.702, Government Code, as |
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added by this Act. |
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(b) As soon as practicable after the effective date of this |
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Act, the Department of Information Resources shall prepare and |
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submit the list of recommended state agencies required by Section |
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2054.703, Government Code, as added by this Act. |
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(c) Not later than 15 business days after receiving the list |
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of recommended state agencies, the governor shall select a state |
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agency to participate in the State Blockchain Technology Pilot |
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Program as required by Section 2054.703, Government Code, as added |
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by this Act. |
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SECTION 3. It is the intent of the legislature that every |
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provision, section, subsection, sentence, clause, phrase, or word |
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in this Act, and every application of the provisions in this Act to |
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every person, group of persons, or circumstances, is severable from |
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each other. If any application of any provision in this Act to any |
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person, group of persons, or circumstances is found by a court to be |
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invalid for any reason, the remaining applications of that |
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provision to all other persons and circumstances shall be severed |
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and may not be affected. |
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SECTION 4. 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. |