Bucy Blockchain Bill Could Run Citizen Identity Checks

The text as introduced · 980 words

89R6316 PRL-F

By: Bucy
H.B. No. 5352

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of the State Blockchain Technology

Pilot Program by the Department of Information Resources.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 2054, Government Code, is amended by

adding Subchapter T to read as follows:

SUBCHAPTER T. STATE BLOCKCHAIN TECHNOLOGY PILOT PROGRAM

Sec. 2054.701. DEFINITIONS. In this subchapter:

(1) "Blockchain" means a distributed ledger

technology that records transactions in a verifiable and immutable

manner, shared across multiple nodes in a network, ensuring

transparency and security.

(2) "Program" means the State Blockchain Technology

Pilot Program established under Section 2054.702.

(3) "Program participant" means the state agency

selected by the governor to participate in the program under

Section 2054.703.

Sec. 2054.702. ESTABLISHMENT OF PROGRAM. (a) The board

shall establish a pilot program to explore the application and

benefits of the use of blockchain technology by the program

participant for the purpose of improving transparency, security,

and efficiency in government operations.

(b) The program shall study the use of blockchain by the

program participant:

(1) to streamline the secure storage and retrieval of

records and documents;

(2) to improve the transparency of procurement

processes and tracking of goods or services utilized by the program

participant;

(3) to test secure methods for identity verification

of:

(A) employees of the program participant;

(B) contractors of the program participant; and

(C) citizens that interact with the program

participant;

(4) to enhance mechanisms for fraud detection and

prevention; and

(5) for any other application to improve public

services or administrative efficiency, as determined by the program

participant, the governor, or the department.

(c) In administering the program, the department shall

ensure compliance with cybersecurity and privacy measures.

Sec. 2054.703. SELECTION OF PROGRAM PARTICIPANT. (a) The

governor shall select a state agency to serve as the program

participant.

(b) The board shall provide the governor with

recommendations on the selection of the program participant based

on:

(1) the feasibility of implementing the program by the

program participant;

(2) the budget appropriated by the legislature to the

department for the program;

(3) the anticipated disruption to existing services of

the program participant;

(4) the anticipated efficacy of the program on

existing services of the program participant; and

(5) cybersecurity and confidentiality concerns.

Sec. 2054.704. REPORT. (a) Not later than January 1, 2029,

the department shall submit to the governor, lieutenant governor,

and members of the legislature a report documenting the outcomes of

the program. The report must include:

(1) an evaluation of the benefits and challenges of

implementing blockchain technology in the program participant's

operations;

(2) an assessment of the cost-effectiveness of the

blockchain solution compared to existing systems of the program

participant;

(3) a determination of feasibility on whether

blockchain should be expanded to other state agencies or

operations; and

(4) any identified risks, security concerns, or

regulatory barriers encountered during the program.

(b) The department may contract with a private entity to

prepare the report required under this section.

Sec. 2054.705. COLLABORATION. (a) For the purposes of

satisfying the requirements of Section 2054.702, the department

shall collaborate with a state university that operates:

(1) a statewide technology center for data established

under Section 2054.382; and

(2) a regional network security center established

under Section 2059.202.

(b) The department may collaborate or contract with private

technology firms or consultants for technical expertise or

assistance in implementing the program.

Sec. 2054.706. FUNDING. (a) Funding for the program

consists of:

(1) money appropriated by the legislature for the

purposes of the program;

(2) gifts, grants, and donations received under

Subsection (c); and

(3) any other money available for the purposes of the

program.

(b) If the amount available under Subsection (a) is less

than the costs to administer the program, the governor and the

Legislative Budget Board may transfer or repurpose money under a

proposal under Chapter 317 to provide additional funding to

administer the program.

(c) The department may solicit and accept gifts, grants, and

donations from any public or private source.

(d) Not later than January 1, 2029, the department shall

transfer all unspent funds to the general revenue fund.

Sec. 2054.707. RULES. The department shall adopt rules

necessary to administer the pilot program.

Sec. 2054.708. EXPIRATION. This subchapter expires

September 1, 2029.

SECTION 2. (a) Not later than December 1, 2025, the

Department of Information Resources shall adopt rules necessary to

implement and administer the State Blockchain Technology Pilot

Program established under Section 2054.702, Government Code, as

added by this Act.

(b) As soon as practicable after the effective date of this

Act, the Department of Information Resources shall prepare and

submit the list of recommended state agencies required by Section

2054.703, Government Code, as added by this Act.

(c) Not later than 15 business days after receiving the list

of recommended state agencies, the governor shall select a state

agency to participate in the State Blockchain Technology Pilot

Program as required by Section 2054.703, Government Code, as added

by this Act.

SECTION 3. It is the intent of the legislature that every

provision, section, subsection, sentence, clause, phrase, or word

in this Act, and every application of the provisions in this Act to

every person, group of persons, or circumstances, is severable from

each other. If any application of any provision in this Act to any

person, group of persons, or circumstances is found by a court to be

invalid for any reason, the remaining applications of that

provision to all other persons and circumstances shall be severed

and may not be affected.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.