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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance and regulation of an oil-backed |
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stablecoin; authorizing a fee; authorizing an administrative |
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penalty. |
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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 Oil-Backed |
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Stablecoin Act. |
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SECTION 2. (a) The legislature finds that: |
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(1) Texas is a global leader in oil production, |
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refining, and innovation in energy markets; |
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(2) stablecoins and other blockchain-based digital |
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assets present opportunities for more efficient, transparent, and |
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cost-effective financial transactions, enhancing competitiveness |
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in global markets; |
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(3) a stablecoin fully backed by oil or oil-derived |
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products can expand investment opportunities, increase tax |
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revenue, attract technology development, and support the state's |
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energy industry; and |
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(4) it is in the public interest to establish a stable |
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regulatory framework for a commodity-backed stablecoin issued in |
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this state. |
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(b) The purpose of this Act is to: |
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(1) authorize and regulate the issuance of a |
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commodity-backed stablecoin anchored by oil or oil products; |
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(2) ensure that each stablecoin issued under this Act |
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is fully backed by, and redeemable for, a defined quantity of oil or |
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oil products; |
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(3) provide oversight, licensing, consumer |
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protection, and transparency measures to safeguard the public |
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interest; and |
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(4) facilitate responsible innovation and economic |
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growth within this state. |
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SECTION 3. Subtitle Z, Title 3, Finance Code, is amended by |
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adding Chapter 282 to read as follows: |
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CHAPTER 282. OIL-BACKED STABLECOIN |
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Sec. 282.001. DEFINITIONS. In this chapter: |
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(1) "Custodial reserve" means the pool of oil or oil |
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products held in trust or under sub-custodial contracts for the |
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sole purpose of fully backing all units of the oil-backed |
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stablecoin in circulation. |
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(2) "Department" means the Texas Department of |
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Banking. |
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(3) "Finance commission" means the Finance Commission |
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of Texas. |
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(4) "Issuer" means any person authorized by the |
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department to create, manage, or redeem an oil-backed stablecoin |
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under this chapter. |
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(5) "Oil-backed stablecoin" means a stablecoin |
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authorized under this chapter that is redeemable for a specific |
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quantity of oil or refined oil products measured in British thermal |
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units or another appropriate standard specified by the department. |
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(6) "Oil company sub-custodian" or "sub-custodian" |
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means a state-approved or licensed oil producer, refiner, or |
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storage entity that allocates crude or refined product to the |
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custodial reserve under this chapter. |
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(7) "Stablecoin" means a digital asset: |
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(A) whose value is pegged to a specific commodity |
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or currency; and |
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(B) that is redeemable on demand for that |
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commodity or currency. |
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Sec. 282.002. LICENSE REQUIRED; FEES. (a) The department |
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shall issue licenses to eligible applicants to authorize the |
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applicant to be an issuer of oil-backed stablecoin. |
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(b) A person may not issue or offer for sale oil-backed |
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stablecoin described by this chapter unless the person holds a |
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license issued by the department under this section. |
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(c) The finance commission by rule shall establish |
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application requirements, licensing fees, background check |
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requirements, and other conditions for license eligibility under |
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this section. |
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(d) An issuer issued a license under this chapter must |
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comply with all applicable rules adopted by the finance commission |
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regarding consumer disclosures, anti-money laundering standards, |
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and know-your-customer requirements. |
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(e) The department may charge a reasonable fee for the |
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issuance of a license under this chapter in an amount sufficient to |
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allow the department to recover all reasonable costs associated |
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with administering and enforcing this chapter. |
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Sec. 282.003. CUSTODIAL RESERVE REQUIRED. (a) Each unit of |
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oil-backed stablecoin in circulation must be backed at all times by |
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a corresponding quantity of oil or oil products, measured in |
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million British thermal units or another standard specified by the |
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department. |
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(b) The issuer shall maintain a custodial reserve at or |
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above a one-to-one ratio between the total amount of the oil-backed |
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stablecoin outstanding and the total amount of oil or oil products |
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allocated for that purpose, subject to any discount or |
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overcollateralization requirements established by finance |
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commission rule. |
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(c) A custodial reserve may include crude oil, refined |
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product, or in-ground reserves documented in accordance with rules |
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adopted by the finance commission, provided the oil or oil product: |
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(1) is readily auditable; |
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(2) is located or verifiably allocated within this |
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state; and |
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(3) is able to be delivered or monetized in a timely |
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manner in compliance with redemption obligations under this |
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chapter. |
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Sec. 282.004. OIL COMPANY SUB-CUSTODIANS. (a) An oil |
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company sub-custodian may enter into a contractual agreement with |
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an issuer to allocate oil or oil products to the issuer's custodial |
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reserve. |
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(b) A sub-custodian must meet eligibility requirements |
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established by finance commission rule, including requirements |
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relating to financial stability, operational capacity, and |
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location of the allocated oil or oil product. |
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(c) A sub-custodian shall allow the issuer or the department |
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to examine any records necessary to verify the quantity, quality, |
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and location of the allocated oil or oil product. |
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Sec. 282.005. CREATION AND REDEMPTION OF OIL-BACKED |
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STABLECOIN. (a) The issuer may create additional units of the |
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oil-backed stablecoin only if the custodial reserve is |
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proportionately increased in accordance with Section 282.003. |
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(b) The issuer shall redeem the oil-backed stablecoin on the |
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request of an oil-backed stablecoin holder who surrenders the |
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digital asset in exchange for: |
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(1) an equivalent quantity of cash proceeds derived |
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from the issuer's custodial reserve; or |
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(2) a direct oil product withdrawal, if permitted by |
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rule. |
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(c) On redemption of oil-backed stablecoin, or under other |
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circumstances requiring a reduction in total oil-backed stablecoin |
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units in circulation, the issuer shall remove the corresponding |
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units from circulation on the blockchain ledger. |
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Sec. 282.006. RULES. (a) The finance commission shall |
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adopt rules to implement and enforce this chapter, including: |
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(1) standards for custodial reserve liquidity and |
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tiered collateral arrangements; |
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(2) required disclosures to purchasers or holders of |
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the oil-backed stablecoin, including redemption procedures and |
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associated risks; |
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(3) recordkeeping, reporting, and auditing standards |
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for issuers and sub-custodians; and |
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(4) any additional consumer protection measures the |
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finance commission considers necessary. |
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(b) The finance commission may adopt rules to coordinate |
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with federal authorities or comply with federal regulations |
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regarding commodity-backed digital assets. |
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Sec. 282.007. AUDITS AND PERIODIC REPORTS. (a) The issuer |
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shall publish or file with the department quarterly, or at another |
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interval prescribed by finance commission rule: |
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(1) a comprehensive reserve attestation performed by |
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an independent certified public accountant; |
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(2) a comparison of the total number of stablecoin |
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units outstanding to the total volume of oil or oil products |
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allocated to the custodial reserve; and |
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(3) a report of any material changes to sub-custodian |
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agreements. |
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(b) The department may require the issuer or a sub-custodian |
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to submit to periodic or special audits, including on-site |
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inspections, to ensure compliance with this chapter. |
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Sec. 282.008. VIOLATIONS; ENFORCEMENT. The department may |
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impose an administrative penalty, seek injunctive relief, or take |
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other enforcement action against a person who violates this chapter |
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or a rule adopted under this chapter. |
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Sec. 282.009. CONSUMER PROTECTIONS. (a) An issuer may not |
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engage in unfair or deceptive acts or practices regarding the |
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issuance or marketing of an oil-backed stablecoin. |
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(b) A person who suffers damages because of a violation of |
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this chapter or a rule adopted under this chapter may seek any |
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remedy available under state law. |
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Sec. 282.010. TRANSACTIONAL FEES AND ASSESSMENTS. The |
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department may charge a regulatory fee or assessment for each |
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transaction of the oil-backed stablecoin, provided that the amount |
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of the fee or assessment does not unreasonably restrict adoption or |
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usage of oil-backed stablecoin. |
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Sec. 282.011. TAX TREATMENT. (a) Any tax on the issuance, |
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holding, transfer, or redemption of oil-backed stablecoin is |
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governed by provisions of the Tax Code generally applicable to |
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commodity transactions, unless otherwise provided by law. |
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(b) The department and the comptroller shall consult as |
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necessary to ensure that state tax treatment of oil-backed |
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stablecoin is administered in a manner that does not subject |
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holders to duplicative or inconsistent taxation. |
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SECTION 4. This Act takes effect September 1, 2025. |