Texas 2025 - 89th Regular

Texas House Bill HB5352 Compare Versions

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11 89R6316 PRL-F
22 By: Bucy H.B. No. 5352
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the establishment of the State Blockchain Technology
1010 Pilot Program by the Department of Information Resources.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Chapter 2054, Government Code, is amended by
1313 adding Subchapter T to read as follows:
1414 SUBCHAPTER T. STATE BLOCKCHAIN TECHNOLOGY PILOT PROGRAM
1515 Sec. 2054.701. DEFINITIONS. In this subchapter:
1616 (1) "Blockchain" means a distributed ledger
1717 technology that records transactions in a verifiable and immutable
1818 manner, shared across multiple nodes in a network, ensuring
1919 transparency and security.
2020 (2) "Program" means the State Blockchain Technology
2121 Pilot Program established under Section 2054.702.
2222 (3) "Program participant" means the state agency
2323 selected by the governor to participate in the program under
2424 Section 2054.703.
2525 Sec. 2054.702. ESTABLISHMENT OF PROGRAM. (a) The board
2626 shall establish a pilot program to explore the application and
2727 benefits of the use of blockchain technology by the program
2828 participant for the purpose of improving transparency, security,
2929 and efficiency in government operations.
3030 (b) The program shall study the use of blockchain by the
3131 program participant:
3232 (1) to streamline the secure storage and retrieval of
3333 records and documents;
3434 (2) to improve the transparency of procurement
3535 processes and tracking of goods or services utilized by the program
3636 participant;
3737 (3) to test secure methods for identity verification
3838 of:
3939 (A) employees of the program participant;
4040 (B) contractors of the program participant; and
4141 (C) citizens that interact with the program
4242 participant;
4343 (4) to enhance mechanisms for fraud detection and
4444 prevention; and
4545 (5) for any other application to improve public
4646 services or administrative efficiency, as determined by the program
4747 participant, the governor, or the department.
4848 (c) In administering the program, the department shall
4949 ensure compliance with cybersecurity and privacy measures.
5050 Sec. 2054.703. SELECTION OF PROGRAM PARTICIPANT. (a) The
5151 governor shall select a state agency to serve as the program
5252 participant.
5353 (b) The board shall provide the governor with
5454 recommendations on the selection of the program participant based
5555 on:
5656 (1) the feasibility of implementing the program by the
5757 program participant;
5858 (2) the budget appropriated by the legislature to the
5959 department for the program;
6060 (3) the anticipated disruption to existing services of
6161 the program participant;
6262 (4) the anticipated efficacy of the program on
6363 existing services of the program participant; and
6464 (5) cybersecurity and confidentiality concerns.
6565 Sec. 2054.704. REPORT. (a) Not later than January 1, 2029,
6666 the department shall submit to the governor, lieutenant governor,
6767 and members of the legislature a report documenting the outcomes of
6868 the program. The report must include:
6969 (1) an evaluation of the benefits and challenges of
7070 implementing blockchain technology in the program participant's
7171 operations;
7272 (2) an assessment of the cost-effectiveness of the
7373 blockchain solution compared to existing systems of the program
7474 participant;
7575 (3) a determination of feasibility on whether
7676 blockchain should be expanded to other state agencies or
7777 operations; and
7878 (4) any identified risks, security concerns, or
7979 regulatory barriers encountered during the program.
8080 (b) The department may contract with a private entity to
8181 prepare the report required under this section.
8282 Sec. 2054.705. COLLABORATION. (a) For the purposes of
8383 satisfying the requirements of Section 2054.702, the department
8484 shall collaborate with a state university that operates:
8585 (1) a statewide technology center for data established
8686 under Section 2054.382; and
8787 (2) a regional network security center established
8888 under Section 2059.202.
8989 (b) The department may collaborate or contract with private
9090 technology firms or consultants for technical expertise or
9191 assistance in implementing the program.
9292 Sec. 2054.706. FUNDING. (a) Funding for the program
9393 consists of:
9494 (1) money appropriated by the legislature for the
9595 purposes of the program;
9696 (2) gifts, grants, and donations received under
9797 Subsection (c); and
9898 (3) any other money available for the purposes of the
9999 program.
100100 (b) If the amount available under Subsection (a) is less
101101 than the costs to administer the program, the governor and the
102102 Legislative Budget Board may transfer or repurpose money under a
103103 proposal under Chapter 317 to provide additional funding to
104104 administer the program.
105105 (c) The department may solicit and accept gifts, grants, and
106106 donations from any public or private source.
107107 (d) Not later than January 1, 2029, the department shall
108108 transfer all unspent funds to the general revenue fund.
109109 Sec. 2054.707. RULES. The department shall adopt rules
110110 necessary to administer the pilot program.
111111 Sec. 2054.708. EXPIRATION. This subchapter expires
112112 September 1, 2029.
113113 SECTION 2. (a) Not later than December 1, 2025, the
114114 Department of Information Resources shall adopt rules necessary to
115115 implement and administer the State Blockchain Technology Pilot
116116 Program established under Section 2054.702, Government Code, as
117117 added by this Act.
118118 (b) As soon as practicable after the effective date of this
119119 Act, the Department of Information Resources shall prepare and
120120 submit the list of recommended state agencies required by Section
121121 2054.703, Government Code, as added by this Act.
122122 (c) Not later than 15 business days after receiving the list
123123 of recommended state agencies, the governor shall select a state
124124 agency to participate in the State Blockchain Technology Pilot
125125 Program as required by Section 2054.703, Government Code, as added
126126 by this Act.
127127 SECTION 3. It is the intent of the legislature that every
128128 provision, section, subsection, sentence, clause, phrase, or word
129129 in this Act, and every application of the provisions in this Act to
130130 every person, group of persons, or circumstances, is severable from
131131 each other. If any application of any provision in this Act to any
132132 person, group of persons, or circumstances is found by a court to be
133133 invalid for any reason, the remaining applications of that
134134 provision to all other persons and circumstances shall be severed
135135 and may not be affected.
136136 SECTION 4. This Act takes effect immediately if it receives
137137 a vote of two-thirds of all the members elected to each house, as
138138 provided by Section 39, Article III, Texas Constitution. If this
139139 Act does not receive the vote necessary for immediate effect, this
140140 Act takes effect September 1, 2025.