1 | 1 | | 89R6316 PRL-F |
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2 | 2 | | By: Bucy H.B. No. 5352 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the establishment of the State Blockchain Technology |
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10 | 10 | | Pilot Program by the Department of Information Resources. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Chapter 2054, Government Code, is amended by |
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13 | 13 | | adding Subchapter T to read as follows: |
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14 | 14 | | SUBCHAPTER T. STATE BLOCKCHAIN TECHNOLOGY PILOT PROGRAM |
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15 | 15 | | Sec. 2054.701. DEFINITIONS. In this subchapter: |
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16 | 16 | | (1) "Blockchain" means a distributed ledger |
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17 | 17 | | technology that records transactions in a verifiable and immutable |
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18 | 18 | | manner, shared across multiple nodes in a network, ensuring |
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19 | 19 | | transparency and security. |
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20 | 20 | | (2) "Program" means the State Blockchain Technology |
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21 | 21 | | Pilot Program established under Section 2054.702. |
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22 | 22 | | (3) "Program participant" means the state agency |
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23 | 23 | | selected by the governor to participate in the program under |
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24 | 24 | | Section 2054.703. |
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25 | 25 | | Sec. 2054.702. ESTABLISHMENT OF PROGRAM. (a) The board |
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26 | 26 | | shall establish a pilot program to explore the application and |
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27 | 27 | | benefits of the use of blockchain technology by the program |
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28 | 28 | | participant for the purpose of improving transparency, security, |
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29 | 29 | | and efficiency in government operations. |
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30 | 30 | | (b) The program shall study the use of blockchain by the |
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31 | 31 | | program participant: |
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32 | 32 | | (1) to streamline the secure storage and retrieval of |
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33 | 33 | | records and documents; |
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34 | 34 | | (2) to improve the transparency of procurement |
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35 | 35 | | processes and tracking of goods or services utilized by the program |
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36 | 36 | | participant; |
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37 | 37 | | (3) to test secure methods for identity verification |
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38 | 38 | | of: |
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39 | 39 | | (A) employees of the program participant; |
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40 | 40 | | (B) contractors of the program participant; and |
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41 | 41 | | (C) citizens that interact with the program |
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42 | 42 | | participant; |
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43 | 43 | | (4) to enhance mechanisms for fraud detection and |
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44 | 44 | | prevention; and |
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45 | 45 | | (5) for any other application to improve public |
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46 | 46 | | services or administrative efficiency, as determined by the program |
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47 | 47 | | participant, the governor, or the department. |
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48 | 48 | | (c) In administering the program, the department shall |
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49 | 49 | | ensure compliance with cybersecurity and privacy measures. |
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50 | 50 | | Sec. 2054.703. SELECTION OF PROGRAM PARTICIPANT. (a) The |
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51 | 51 | | governor shall select a state agency to serve as the program |
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52 | 52 | | participant. |
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53 | 53 | | (b) The board shall provide the governor with |
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54 | 54 | | recommendations on the selection of the program participant based |
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55 | 55 | | on: |
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56 | 56 | | (1) the feasibility of implementing the program by the |
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57 | 57 | | program participant; |
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58 | 58 | | (2) the budget appropriated by the legislature to the |
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59 | 59 | | department for the program; |
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60 | 60 | | (3) the anticipated disruption to existing services of |
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61 | 61 | | the program participant; |
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62 | 62 | | (4) the anticipated efficacy of the program on |
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63 | 63 | | existing services of the program participant; and |
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64 | 64 | | (5) cybersecurity and confidentiality concerns. |
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65 | 65 | | Sec. 2054.704. REPORT. (a) Not later than January 1, 2029, |
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66 | 66 | | the department shall submit to the governor, lieutenant governor, |
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67 | 67 | | and members of the legislature a report documenting the outcomes of |
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68 | 68 | | the program. The report must include: |
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69 | 69 | | (1) an evaluation of the benefits and challenges of |
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70 | 70 | | implementing blockchain technology in the program participant's |
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71 | 71 | | operations; |
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72 | 72 | | (2) an assessment of the cost-effectiveness of the |
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73 | 73 | | blockchain solution compared to existing systems of the program |
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74 | 74 | | participant; |
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75 | 75 | | (3) a determination of feasibility on whether |
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76 | 76 | | blockchain should be expanded to other state agencies or |
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77 | 77 | | operations; and |
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78 | 78 | | (4) any identified risks, security concerns, or |
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79 | 79 | | regulatory barriers encountered during the program. |
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80 | 80 | | (b) The department may contract with a private entity to |
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81 | 81 | | prepare the report required under this section. |
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82 | 82 | | Sec. 2054.705. COLLABORATION. (a) For the purposes of |
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83 | 83 | | satisfying the requirements of Section 2054.702, the department |
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84 | 84 | | shall collaborate with a state university that operates: |
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85 | 85 | | (1) a statewide technology center for data established |
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86 | 86 | | under Section 2054.382; and |
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87 | 87 | | (2) a regional network security center established |
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88 | 88 | | under Section 2059.202. |
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89 | 89 | | (b) The department may collaborate or contract with private |
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90 | 90 | | technology firms or consultants for technical expertise or |
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91 | 91 | | assistance in implementing the program. |
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92 | 92 | | Sec. 2054.706. FUNDING. (a) Funding for the program |
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93 | 93 | | consists of: |
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94 | 94 | | (1) money appropriated by the legislature for the |
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95 | 95 | | purposes of the program; |
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96 | 96 | | (2) gifts, grants, and donations received under |
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97 | 97 | | Subsection (c); and |
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98 | 98 | | (3) any other money available for the purposes of the |
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99 | 99 | | program. |
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100 | 100 | | (b) If the amount available under Subsection (a) is less |
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101 | 101 | | than the costs to administer the program, the governor and the |
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102 | 102 | | Legislative Budget Board may transfer or repurpose money under a |
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103 | 103 | | proposal under Chapter 317 to provide additional funding to |
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104 | 104 | | administer the program. |
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105 | 105 | | (c) The department may solicit and accept gifts, grants, and |
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106 | 106 | | donations from any public or private source. |
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107 | 107 | | (d) Not later than January 1, 2029, the department shall |
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108 | 108 | | transfer all unspent funds to the general revenue fund. |
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109 | 109 | | Sec. 2054.707. RULES. The department shall adopt rules |
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110 | 110 | | necessary to administer the pilot program. |
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111 | 111 | | Sec. 2054.708. EXPIRATION. This subchapter expires |
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112 | 112 | | September 1, 2029. |
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113 | 113 | | SECTION 2. (a) Not later than December 1, 2025, the |
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114 | 114 | | Department of Information Resources shall adopt rules necessary to |
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115 | 115 | | implement and administer the State Blockchain Technology Pilot |
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116 | 116 | | Program established under Section 2054.702, Government Code, as |
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117 | 117 | | added by this Act. |
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118 | 118 | | (b) As soon as practicable after the effective date of this |
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119 | 119 | | Act, the Department of Information Resources shall prepare and |
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120 | 120 | | submit the list of recommended state agencies required by Section |
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121 | 121 | | 2054.703, Government Code, as added by this Act. |
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122 | 122 | | (c) Not later than 15 business days after receiving the list |
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123 | 123 | | of recommended state agencies, the governor shall select a state |
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124 | 124 | | agency to participate in the State Blockchain Technology Pilot |
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125 | 125 | | Program as required by Section 2054.703, Government Code, as added |
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126 | 126 | | by this Act. |
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127 | 127 | | SECTION 3. It is the intent of the legislature that every |
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128 | 128 | | provision, section, subsection, sentence, clause, phrase, or word |
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129 | 129 | | in this Act, and every application of the provisions in this Act to |
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130 | 130 | | every person, group of persons, or circumstances, is severable from |
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131 | 131 | | each other. If any application of any provision in this Act to any |
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132 | 132 | | person, group of persons, or circumstances is found by a court to be |
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133 | 133 | | invalid for any reason, the remaining applications of that |
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134 | 134 | | provision to all other persons and circumstances shall be severed |
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135 | 135 | | and may not be affected. |
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136 | 136 | | SECTION 4. This Act takes effect immediately if it receives |
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137 | 137 | | a vote of two-thirds of all the members elected to each house, as |
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138 | 138 | | provided by Section 39, Article III, Texas Constitution. If this |
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139 | 139 | | Act does not receive the vote necessary for immediate effect, this |
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140 | 140 | | Act takes effect September 1, 2025. |
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