WeVote
Log In

Bill

Bill

HB 4518

Relating to the formation of decentralized unincorporated nonprofit associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing fees.

89th Legislature (2025) Introduced by Tan Parker

HB 4518 permits Texas decentralized unincorporated nonprofits using blockchain technology and establishes associated regulatory fees.

Left pending in committee
#assets(s0416) #business&commerce--general(i0050) #computers&software(s2425) #charitable&nonprofitorganizations(i0055) #electronicinformationsystems(i0311) #propertyinterests--personalproperty(i0600) #propertyinterests--realproperty(i0595) #recordsmanagement(s0205) #secretaryofstate(v0042)
0
WeVote Research Nonpartisan
Bill Summary · HB 4518

Legislative bill overview

HB 4518 authorizes the formation of decentralized unincorporated nonprofit associations in Texas and permits the use of distributed ledger or blockchain technology for certain business operations. The bill also establishes a framework for related fees associated with these new organizational structures.

Why is this important

This legislation would position Texas to accommodate emerging organizational models that rely on blockchain and decentralized governance, potentially attracting tech-forward nonprofits and businesses. The bill reflects an attempt to modernize nonprofit law to address technological innovation while maintaining regulatory clarity around how such entities operate and are taxed.

Potential points of contention

  • Regulatory clarity gaps: Decentralized organizations by design lack traditional hierarchical governance; the bill may create ambiguity about liability, accountability, and member protections compared to conventional nonprofits
  • IRS compliance uncertainty: Federal nonprofit tax-exempt status requirements may conflict with decentralized governance structures, creating practical obstacles that state law alone cannot resolve
  • Fee structure fairness: Authorization of fees for blockchain-based entities raises questions about whether these costs are proportionate and whether they create barriers for smaller organizations or subsidy advantages for larger entities

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

Sign in to ask a question.