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Bill

HB 4395

Relating to electronic submission and delivery of public securities and records of proceedings for those securities.

89th Legislature (2025) Introduced by Ben Bumgarner and 2 co-sponsors

HB 4395 permits Texas public entities to electronically submit and deliver securities documents and proceeding records, modernizing outdated paper-based requirements effective January 1, 2026.

Effective on 1/1/26
#attorneygeneral(v2811) #comptrollerofpublicaccounts(v2608) #digitalsignatures(s0144) #electronicinformationsystems(i0311) #statefinances--management&control(i0748)
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Bill Summary · HB 4395

Legislative bill overview

HB 4395 modernizes Texas law to permit electronic submission and delivery of public securities documentation and official proceedings records related to those securities. The bill removes outdated requirements for physical documents, allowing governments and public entities to conduct securities transactions entirely through electronic means while maintaining legal validity and compliance.

Why is this important

This modernization reduces administrative costs and processing times for Texas municipalities, counties, and other public entities that issue bonds and securities. It aligns state law with current digital business practices and federal securities regulations, making it easier for public entities to access capital markets efficiently while reducing paper waste and storage requirements.

Potential points of contention

  • Implementation variability: Different public entities may adopt electronic systems at different rates, potentially creating inconsistent practices across Texas government
  • Security and authenticity concerns: Electronic systems require robust cybersecurity measures; inadequate implementation could expose sensitive financial documents or create authentication vulnerabilities
  • Legal interpretation ambiguity: Courts may need to clarify what constitutes valid "electronic submission" and whether existing case law on document authenticity applies to digital versions

Compiled from official sources — confirm details with the bill’s official record.

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