Texas 2025 - 89th Regular

Texas Senate Bill SB21 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Schwertner, et al. S.B. No. 21
2		-
3		-
	1	+	By: Schwertner, Parker S.B. No. 21
	2	+	(In the Senate - Filed February 12, 2025;
	3	+	February 13, 2025, read first time and referred to Committee on
	4	+	Business & Commerce; March 4, 2025, reported adversely, with
	5	+	favorable Committee Substitute by the following vote: Yeas 10,
	6	+	Nays 0; March 4, 2025, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 21 By: Campbell
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the establishment and administration of the Texas
9	14		Strategic Bitcoin Reserve for the purpose of investing in
10	15		cryptocurrency and the investment authority of the comptroller of
11	16		public accounts over the reserve and certain other state funds.
12	17		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	18		SECTION 1. This Act may be cited as the Texas Strategic
14	19		Bitcoin Reserve and Investment Act.
15	20		SECTION 2. Chapter 403, Government Code, is amended by
16	21		adding Subchapter V to read as follows:
17	22		SUBCHAPTER V. TEXAS STRATEGIC BITCOIN RESERVE
18	23		Sec. 403.701. DEFINITIONS. In this subchapter:
19	24		(1) "Airdrop" means a gratuitous distribution of
20	25		cryptocurrency to persons who hold cryptocurrency, generally made
21	26		in a broad, equitable, and nondiscretionary manner.
22	27		(2) "Bitcoin" means a type of decentralized
23	28		cryptocurrency created by a peer-to-peer network that operates
24	29		independently of any central authority or bank.
25	30		(3) "Cold storage" means a method of storing private
26	31		keys required to engage in transactions involving cryptocurrency
27	32		that:
28	33		(A) has a nexus to a secure physical location;
29	34		(B) is protected from unauthorized access; and
30	35		(C) is isolated from any Internet network
31	36		connections.
32	37		(4) "Cryptocurrency" means a type of virtual currency
33	38		that utilizes cryptography to secure transactions that are
34	39		digitally recorded on a distributed ledger, such as a blockchain.
35	40		(5) "Fork" means a change to the consensus mechanism
36	41		of a distributed ledger that creates a separate ledger, which may
37	42		result in a new cryptocurrency that shares a common transaction
38	43		history with the previous cryptocurrency up to the point of the
39	44		change.
40	45		(6) "Qualified custodian" means a state or federally
41	46		chartered financial institution or other entity regulated by this
42	47		state that has custody of a virtual currency.
43	48		(7) "Reserve" means the Texas Strategic Bitcoin
44	49		Reserve established under this subchapter.
45	50		(8) "Virtual currency" has the meaning assigned by
46	51		Section 12.001, Business & Commerce Code.
47	52		Sec. 403.702. LEGISLATIVE FINDINGS; PURPOSE. The
48	53		legislature finds that:
49	54		(1) bitcoin and other cryptocurrencies are assets with
50	55		strategic potential for enhancing this state's financial
51	56		resilience;
52	57		(2) bitcoin and other cryptocurrencies can serve as a
53	58		hedge against inflation and economic volatility; and
54	59		(3) the establishment of a strategic bitcoin reserve
55	60		serves the public purpose of providing enhanced financial security
56	61		to residents of this state.
57	62		Sec. 403.703. ESTABLISHMENT AND ADMINISTRATION OF RESERVE.
58	63		(a) The Texas Strategic Bitcoin Reserve is established as a special
59	64		fund outside the state treasury. The comptroller has custody of and
60	65		shall administer and manage the reserve. The reserve consists of:
61	66		(1) money transferred or deposited to the credit of
62	67		the reserve by legislative appropriation;
63	68		(2) revenue that the legislature by general law
64	69		dedicates for deposit to the credit of the reserve;
65	70		(3) subject to Section 403.704, bitcoin and other
66	71		cryptocurrency purchased using money in or received by the reserve,
67	72		including any cryptocurrency:
68	73		(A) derived from the fork of a distributed
69	74		ledger; or
70	75		(B) distributed pursuant to an airdrop to the
71	76		state's cryptocurrency addresses; and
72	77		(4) investment earnings and interest or rewards earned
73	78		on assets in the reserve.
74	79		(b) In its administration and management of the reserve, the
75	80		comptroller may acquire, exchange, sell, supervise, manage, or
76	81		retain any kind of investment that a prudent investor exercising
77	82		reasonable care, skill, and caution would acquire, exchange, sell,
78	83		supervise, manage, or retain in light of the purposes, terms,
79	84		distribution requirements, and other circumstances then prevailing
80	85		for the reserve, taking into consideration the investment of all
81	86		the assets of the reserve rather than a single investment.
82	87		(c) The legislature may appropriate funds for deposit to the
83	88		credit of the reserve for the purposes of:
84	89		(1) investing in bitcoin or other cryptocurrency; and
85	90		(2) administering and managing the reserve.
86	91		(d) The comptroller may spend bitcoin or other
87	92		cryptocurrency in the reserve or use the net proceeds from the sale
88	93		of bitcoin or other cryptocurrency in the reserve to pay the
89	94		reasonable costs associated with administering and managing the
90	95		reserve.
91	96		(e) Money in the reserve may be invested with the state
92	97		treasury pool.
93	98		(f) Except as provided by Section 403.706, the comptroller
94	99		may not transfer money in the reserve to the state treasury unless
95	100		authorized by the legislature in the General Appropriations Act or
96	101		another law.
97	102		Sec. 403.704. MARKET CAPITALIZATION REQUIREMENT. Bitcoin
98	103		or other cryptocurrency purchased using money in the reserve must
99	104		have an average market capitalization of at least $500 billion over
100	105		the most recent 12-month period.
101	106		Sec. 403.705. THIRD-PARTY CONTRACTS; AUDITS. (a) The
102	107		comptroller may contract with one or more third-party entities for
103	108		the administration or management of the reserve, including
104	109		contracting with a qualified custodian who employs secure custodial
105	110		technologies, including cold storage.
106	111		(b) The comptroller may contract with a certified public
107	112		accountant to perform an independent audit of the reserve.
108	113		Sec. 403.706. TEMPORARY TRANSFER FOR CASH MANAGEMENT. (a)
109	114		The comptroller may liquidate the reserve's assets and temporarily
110	115		transfer money from the reserve to the state treasury if necessary
111	116		for the purposes described by Section 403.092.
112	117		(b) The comptroller shall, as soon as practicable after the
113	118		date of a transfer under Subsection (a), return the transferred
114	119		money to the reserve along with the interest, if any, earned on the
115	120		money while held in the state treasury.
116	121		Sec. 403.707. TEXAS STRATEGIC BITCOIN RESERVE ADVISORY
117	122		COMMITTEE. (a) In this section, "committee" means the Texas
118	123		Strategic Bitcoin Reserve advisory committee.
119	124		(b) The committee is composed of the following five members:
120	125		(1) the comptroller;
121	126		(2) one member of the comptroller's investment
122	127		advisory board established under Section 404.028, appointed by the
123	128		comptroller; and
124	129		(3) three members with expertise in cryptocurrency
125	130		investments, appointed by the comptroller.
126	131		(c) The committee shall advise the comptroller regarding
127	132		the administration and management of the reserve, including:
128	133		(1) recommendations for valuing assets in the reserve;
129	134		and
130	135		(2) the establishment of prudent investment policies
131	136		relating to the investment objectives of and asset allocation in
132	137		the reserve.
133	138		(d) A member of the committee is not entitled to receive
134	139		compensation for service on the committee or reimbursement for
135	140		expenses incurred in the performance of official duties as a member
136	141		of the committee.
137	142		(e) Members of the committee appointed by the comptroller
138	143		serve at the will of the comptroller.
139	144		(f) Chapter 2110 does not apply to the committee.
140	145		Sec. 403.708. BIENNIAL REPORT. Not later than December 31
141	146		of each even-numbered year, the comptroller shall publish on the
142	147		comptroller's Internet website and submit to the legislature a
143	148		report that includes:
144	149		(1) the amount of bitcoin and other cryptocurrency
145	150		held in the reserve on the last day of the preceding state fiscal
146	151		biennium;
147	152		(2) an estimate of the monetary value of the bitcoin
148	153		and other cryptocurrency held in the reserve on the last day of the
149	154		preceding state fiscal biennium;
150	155		(3) the changes, if any, in the amount and estimated
151	156		monetary value of bitcoin and other cryptocurrency in the reserve
152	157		during the period the cryptocurrency has been held in the reserve,
153	158		disaggregated by cryptocurrency type; and
154	159		(4) a description of the actions taken by the
155	160		comptroller to administer and manage the reserve during the
156	161		preceding state fiscal biennium.
157	162		Sec. 403.709. RULES. The comptroller may adopt rules as
158	163		necessary to administer this subchapter.
159	164		SECTION 3. Section 2256.004(a), Government Code, is amended
160	165		to read as follows:
161	166		(a) This subchapter does not apply to:
162	167		(1) a public retirement system as defined by Section
163	168		802.001;
164	169		(2) state funds invested by the comptroller [as
165	170		authorized by Section 404.024];
166	171		(3) an institution of higher education having total
167	172		endowments of at least $150 million in book value on September 1,
168	173		2017;
169	174		(4) funds invested by the Veterans' Land Board as
170	175		authorized by Chapter 161, 162, or 164, Natural Resources Code;
171	176		(5) registry funds deposited with the county or
172	177		district clerk under Chapter 117, Local Government Code; or
173	178		(6) a deferred compensation plan that qualifies under
174	179		either Section 401(k) or 457 of the Internal Revenue Code of 1986
175	180		(26 U.S.C. Section 1 et seq.), as amended.
176	181		SECTION 4. As soon as possible after the effective date of
177	182		this Act, the comptroller of public accounts shall:
178	183		(1) adopt rules as necessary to implement this Act;
179	184		and
180	185		(2) appoint members to the Texas Strategic Bitcoin
181	186		Reserve advisory committee as required by Section 403.707,
182	187		Government Code, as added by this Act.
183	188		SECTION 5. This Act takes effect immediately if it receives
184	189		a vote of two-thirds of all the members elected to each house, as
185	190		provided by Section 39, Article III, Texas Constitution. If this
186	191		Act does not receive the vote necessary for immediate effect, this
187	192		Act takes effect September 1, 2025.
	193	+	* * * * *