88(R) HB 3768 - Engrossed version - Bill Text
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
relating to the formation of decentralized unincorporated
 
associations and the use of distributed ledger or blockchain
 
technology for certain business purposes; authorizing a fee.
 
             BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 
             SECTION  1.    Section 1.002, Business Organizations Code, is
 
amended by adding Subdivisions (15-a), (16-a), (78-b), and (82-b)
 
and amending Subdivisions (78-a), (82-a), and (89) to read as
 
follows:
 
                         (15-a)     "Digital asset" means an electronic record in
 
which a person has a right or interest. The term does not include an
 
underlying asset, unless the asset is itself an electronic record.
 
                         (16-a)     "Distributed ledger technology" means a
 
distributed ledger protocol that:
 
                                     (A)     is a designated regulatory model of software
 
that governs the rules, operations, and communication between
 
intersection and connection points in a telecommunications network
 
and supporting infrastructure;
 
                                     (B)     includes the computer software or hardware,
 
or collections of computer software or hardware, that use or enable
 
a distributed ledger, including blockchain; and
 
                                     (C)     uses a distributed, shared, and replicated
 
ledger, which may:
 
                                                 (i)    be public or private;
 
                                                 (ii)    be permissioned or permissionless; and
 
                                                 (iii)     include the use of a digital asset as
 
a medium of electronic exchange.
 
                         (78-a)    "Record" means information that is inscribed on
 
a tangible medium or that is stored in an electronic or other medium
 
and is retrievable in a perceivable form, including information
 
inscribed on blockchain or distributed ledger technology.
 
                         (78-b)    "Registered series" means a series of a
 
domestic limited liability company that is formed as a registered
 
series in accordance with Section 101.602.
 
                         (82-a)    "Smart contract" means an event-driven
 
computer program that executes on distributed ledger technology
 
used to automate a transaction, including a transaction that:
 
                                     (A)     takes custody over and instructs transfer of
 
assets on that ledger;
 
                                     (B)    creates and transmits digital assets;
 
                                     (C)    synchronizes information; or
 
                                     (D)     authenticates user rights and conveys access
 
to software applications.
 
                         (82-b)    "Social purposes" means one or more purposes of
 
a for-profit corporation that are specified in the corporation's
 
certificate of formation and consist of promoting one or more
 
positive impacts on society or the environment or of minimizing one
 
or more adverse impacts of the corporation's activities on society
 
or the environment. Those impacts may include:
 
                                     (A)    providing low-income or underserved
 
individuals or communities with beneficial products or services;
 
                                     (B)    promoting economic opportunity for
 
individuals or communities beyond the creation of jobs in the
 
normal course of business;
 
                                     (C)    preserving the environment;
 
                                     (D)    improving human health;
 
                                     (E)    promoting the arts, sciences, or advancement
 
of knowledge;
 
                                     (F)    increasing the flow of capital to entities
 
with a social purpose; and
 
                                     (G)    conferring any particular benefit on society
Statutes affected: Introduced: Business Organizations Code 1.002, Business Organizations Code 6.002, Business Organizations Code 101.052, Business Organizations Code 101.501 (Business Organizations Code 6, Business Organizations Code 101, Business Organizations Code 1) House Committee Report: Business Organizations Code 1.002, Business Organizations Code 6.002, Business Organizations Code 101.052, Business Organizations Code 101.501 (Business Organizations Code 6, Business Organizations Code 101, Business Organizations Code 1) Engrossed: Business Organizations Code 1.002, Business Organizations Code 6.002, Business Organizations Code 101.052, Business Organizations Code 101.501 (Business Organizations Code 6, Business Organizations Code 101, Business Organizations Code 1)