Texas 2025 - 89th Regular

Texas Senate Bill SB778 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R10588 TYPED
2	2	By: Schwertner S.B. No. 778
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the establishment and administration of the Texas
10	10	Strategic Bitcoin Reserve; making an appropriation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. This Act may be cited as the Texas Strategic
13	13	Bitcoin Reserve Act.
14	14	SECTION 2. Chapter 403, Government Code, is amended by
15	15	adding Subchapter V to read as follows:
16	16	SUBCHAPTER V. TEXAS STRATEGIC BITCOIN RESERVE
17	17	Sec. 403.701. DEFINITIONS. In this subchapter:
18	18	(1) "Bitcoin" means a type of decentralized
19	19	cryptocurrency created by a peer-to-peer network that operates
20	20	independently of any central authority or bank.
21	21	(2) "Cold storage" means a method of storing private
22	22	keys required to engage in transactions involving bitcoin that:
23	23	(A) has a nexus to a secure physical location;
24	24	(B) is protected from unauthorized access; and
25	25	(C) is isolated from any Internet network
26	26	connections.
27	27	(3) "Cryptocurrency" means a type of virtual currency
28	28	that utilizes cryptography to secure transactions that are
29	29	digitally recorded on a distributed ledger, such as a blockchain.
30	30	(4) "Reserve" means the Texas Strategic Bitcoin
31	31	Reserve established under this subchapter.
32	32	(5) "Virtual currency" has the meaning assigned by
33	33	Section 12.001, Business & Commerce Code.
34	34	Sec. 403.702. LEGISLATIVE FINDINGS. The legislature finds
35	35	that:
36	36	(1) bitcoin is a valuable digital asset with strategic
37	37	potential for enhancing this state's financial resilience;
38	38	(2) bitcoin's decentralized nature and finite supply
39	39	are unique qualities that can serve as a hedge against inflation and
40	40	economic volatility; and
41	41	(3) the establishment of a strategic bitcoin reserve
42	42	aligns with this state's commitment to fostering innovation in
43	43	digital assets and providing enhanced financial security to
44	44	residents of this state.
45	45	Sec. 403.703. PURPOSE. The reserve is established to
46	46	allow:
47	47	(1) this state to own and hold bitcoin as a financial
48	48	asset; and
49	49	(2) persons, including residents of this state, to
50	50	donate bitcoin to the state for deposit in the reserve to promote
51	51	the shared ownership of and community investment in this state's
52	52	financial future.
53	53	Sec. 403.704. ESTABLISHMENT AND ADMINISTRATION OF RESERVE.
54	54	(a) The Texas Strategic Bitcoin Reserve is a special fund outside
55	55	the general revenue fund in the state treasury. The comptroller has
56	56	custody of and shall administer the reserve for the purpose of
57	57	holding bitcoin as a financial asset.
58	58	(b) The comptroller shall maintain custody of all bitcoin
59	59	held in the reserve.
60	60	(c) The reserve is a strategic asset of this state and may
61	61	not be used for purposes other than those authorized by this
62	62	subchapter.
63	63	Sec. 403.705. CERTAIN TRANSACTIONS PROHIBITED. The
64	64	comptroller may not enter into a transaction to acquire bitcoin to
65	65	be held in the reserve with a foreign country, an entity or
66	66	individual located outside of this state, or an entity or
67	67	individual known to engage in illegal activity.
68	68	Sec. 403.706. MANAGEMENT AND SECURITY; AUDITS. (a) The
69	69	comptroller is responsible for implementing secure storage,
70	70	management, and reporting systems for all bitcoin held in the
71	71	reserve.
72	72	(b) The comptroller shall adopt and implement policies and
73	73	procedures to ensure the security of bitcoin held in the reserve,
74	74	including policies and procedures requiring the use of secure
75	75	custodial technologies such as cold storage and best practices in
76	76	digital asset management.
77	77	(c) The comptroller may conduct regular audits of the
78	78	reserve to ensure transparency in the operation and security of the
79	79	bitcoin in the reserve.
80	80	Sec. 403.707. THIRD-PARTY CONTRACTS. The comptroller may
81	81	contract with a qualified, independent third-party entity based in
82	82	the United States to assist in the establishment, creation,
83	83	maintenance, operation, or administration of the reserve.
84	84	Sec. 403.708. TRANSFER, SALE, OR CONVERSION OF BITCOIN IN
85	85	RESERVE. (a) Bitcoin in the reserve may be transferred, sold, or
86	86	converted only in the manner authorized by this section.
87	87	(b) During a regular or special session of the legislature,
88	88	the legislature may, by adoption of a concurrent resolution
89	89	approved by a two-thirds vote of the members of each house of the
90	90	legislature, direct the comptroller to transfer, sell, or convert
91	91	bitcoin in the reserve and deposit the proceeds realized from the
92	92	transfer, sale, or conversion to the credit of a fund or account in
93	93	the state treasury as specified by the legislature in the
94	94	resolution.
95	95	(c) During any period in which the legislature is not
96	96	meeting in regular or special session, the governor or Legislative
97	97	Budget Board may by order direct the comptroller to transfer, sell,
98	98	or convert bitcoin in the reserve, provided that the governor or
99	99	board first finds that an emergency exists. The order adopted by
100	100	the governor or board must clearly state the nature of the
101	101	emergency.
102	102	(d) The comptroller shall deposit all proceeds realized
103	103	from the transfer, sale, or conversion of bitcoin under Subsection
104	104	(c) to the credit of the general revenue fund.
105	105	Sec. 403.709. VOLUNTARY DONATION OF BITCOIN TO RESERVE;
106	106	RECOGNITION PROGRAM. (a) Except as otherwise provided by this
107	107	subchapter, the comptroller may accept a gift, grant, or other
108	108	donation of bitcoin to the reserve from any public or private
109	109	source.
110	110	(b) The comptroller by rule shall adopt and implement a
111	111	process for the donation of bitcoin to the reserve and establish
112	112	eligibility requirements for potential donors. The rules adopted
113	113	by the comptroller must establish a process by which the
114	114	comptroller may return bitcoin donated to the reserve by a person
115	115	determined to be ineligible to make a donation of bitcoin under this
116	116	subchapter before the bitcoin is deposited in the reserve.
117	117	(c) All donations of bitcoin deposited to the reserve by the
118	118	comptroller:
119	119	(1) become property of this state; and
120	120	(2) shall be deposited and held in the reserve and,
121	121	except as otherwise provided by this subchapter, managed in the
122	122	same manner as any other asset in the state treasury.
123	123	(d) The comptroller may issue a certificate of
124	124	acknowledgment to a person that donates bitcoin to the reserve if
125	125	the person requests the certificate.
126	126	(e) The comptroller may establish a recognition program to
127	127	publicly honor significant contributions of bitcoin to the reserve.
128	128	Sec. 403.710. APPROPRIATIONS TO PURCHASE BITCOIN FOR
129	129	RESERVE. (a) The legislature may appropriate money to the
130	130	comptroller for the purpose of purchasing bitcoin for deposit in
131	131	the reserve.
132	132	(b) An appropriation to the comptroller for the purpose
133	133	described by Subsection (a) may be made as a dollar amount or as a
134	134	percentage of the unencumbered and unexpended balance of the
135	135	general revenue fund on the date the appropriation is made.
136	136	(c) An appropriation described by Subsection (a) may not
137	137	exceed one percent of the unencumbered and unexpended balance of
138	138	the general revenue fund for any biennial cycle.
139	139	Sec. 403.711. TEXAS STRATEGIC BITCOIN RESERVE ADVISORY
140	140	COMMITTEE. (a) In this section, "committee" means the Texas
141	141	Strategic Bitcoin Reserve advisory committee.
142	142	(b) The committee is composed of the following five members:
143	143	(1) the chair of the house committee on
144	144	appropriations;
145	145	(2) the chair of the senate committee on finance;
146	146	(3) the comptroller;
147	147	(4) one member of the senate appointed by the
148	148	lieutenant governor; and
149	149	(5) one member of the house of representatives
150	150	appointed by the speaker of the house of representatives.
151	151	(c) A member of the committee appointed under Subsection
152	152	(b)(4) or (5) serves at the will of the appointing authority.
153	153	(d) The lieutenant governor and speaker of the house of
154	154	representatives shall each designate one member of the committee as
155	155	a co-chair of the committee.
156	156	(e) The committee may hold public hearings, formal
157	157	meetings, and work sessions. Either co-chair of the committee may
158	158	call a public hearing, formal meeting, or work session of the
159	159	committee at any time. The committee may not take formal action at
160	160	a public hearing, formal meeting, or work session unless a quorum of
161	161	the committee is present.
162	162	(f) Except as otherwise provided by this subsection, a
163	163	member of the committee is not entitled to receive compensation for
164	164	service on the committee or reimbursement for expenses incurred in
165	165	the performance of official duties as a member of the committee.
166	166	Service on the committee by a member of the senate or house of
167	167	representatives is considered legislative service for which the
168	168	member is entitled to reimbursement and other benefits in the same
169	169	manner and to the same extent as for other legislative service.
170	170	(g) The committee:
171	171	(1) may provide comments and recommendations to the
172	172	comptroller for consideration in adopting rules regarding the use
173	173	of the reserve or on any other matter related to the reserve; and
174	174	(2) shall review the overall operation, function, and
175	175	structure of the reserve at least semiannually.
176	176	(h) The advisory committee may adopt rules, procedures, and
177	177	policies as needed to administer this section and perform its
178	178	duties under this section.
179	179	(i) Chapter 2110 does not apply to the size, composition, or
180	180	duration of the committee.
181	181	(j) The committee is subject to Chapter 325 (Texas Sunset
182	182	Act). Unless continued in existence as provided by that chapter,
183	183	the committee is abolished September 1, 2035.
184	184	Sec. 403.712. BIENNIAL REPORT. (a) The comptroller shall
185	185	prepare a biennial report that includes:
186	186	(1) the total amount of bitcoin held in the reserve;
187	187	(2) an estimate of the monetary value of the total
188	188	amount of bitcoin held in the reserve, expressed in dollars;
189	189	(3) the growth, if any, in the amount and estimated
190	190	monetary value of bitcoin in the reserve since the date the previous
191	191	report required under this section was published;
192	192	(4) all transactions and expenditures, if any, related
193	193	to the reserve made since the date the previous report required
194	194	under this section was published; and
195	195	(5) any security threats made against the reserve
196	196	since the date the previous report required under this section was
197	197	published.
198	198	(b) Not later than December 31 of each even-numbered year,
199	199	the comptroller shall electronically publish the report prepared
200	200	under Subsection (a) on the comptroller's Internet website and
201	201	notify each member of the legislature of the report's availability
202	202	on that website.
203	203	Sec. 403.713. RULES. The comptroller may adopt rules as
204	204	necessary to administer this subchapter, including rules related to
205	205	security protocols, reporting standards, and donation procedures
206	206	for the reserve.
207	207	SECTION 3. This Act takes effect immediately if it receives
208	208	a vote of two-thirds of all the members elected to each house, as
209	209	provided by Section 39, Article III, Texas Constitution. If this
210	210	Act does not receive the vote necessary for immediate effect, this
211	211	Act takes effect September 1, 2025.