Relating to the formation of decentralized unincorporated nonprofit associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing fees.
Bill overview
Relating to the formation of decentralized unincorporated nonprofit associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing fees.
Reference notes
HB 4518 sources, status methodology and verification
Sources
- HB 4518 official legislative recordPrimary bill-status record.
- Current official bill textOfficial bill text or printing.
Methodology
KeepTXRed treats the official legislative record and latest official action as the factual status layer for HB 4518. Status labels are normalized for browsing, while the legislative timeline and documents preserve official action text and source links. Any KeepTXRed explanation below is editorial context and remains separate from the official record.
Last verified
Legislative record synchronized September 6, 2026 at 8:55 AM UTC; latest recorded official action May 23, 2025.
Bill → law → agency context
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Official fiscal-note agency context
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KeepTXRed explanation
This reviewed explanation is separate from the official bill record and is provided for general information, not legal advice.
KeepTXRed summary
HB 4518 was a House-passed business-law proposal creating a Texas legal framework for decentralized unincorporated nonprofit associations that could use blockchain and smart contracts for governance. It did not become law.
What would change
The proposal would have recognized a qualifying decentralized nonprofit association with at least 100 members as a distinct legal entity, allowed governance through distributed-ledger technology and smart contracts, established member and administrator rules, allowed ownership and transfer of property and provided filing, authority, liability and winding-up rules.
Who may be affected
Blockchain and decentralized-organization developers, nonprofit communities, members and administrators of DAOs or similar groups, lawyers, investors, county clerks and the secretary of state.
When it would take effect
HB 4518 did not take effect. It passed the House and was referred to Senate Business & Commerce, where it was left pending on May 23, 2025.
Limits and uncertainty
Texas did not create the decentralized unincorporated nonprofit association framework proposed by HB 4518. Existing Business Organizations Code and nonprofit-association law remains controlling.
Editorial sources and review notes
Official House text, committee analysis and legislative stages reviewed.
Editorial explanation reviewed 9/6/2026.
Current status
Passed
Left pending in committee
Latest official action
Left pending in committee
May 23, 2025 · house
Who this bill may affect
A verified audience or subject classification has not been attached to this bill yet.
Use the bill overview and official documents to determine whether the proposal may apply to you, your business, or a public agency.
Sponsors
author
sponsor
Committee history
- Trade, Workforce & Economic Development
Out of committee
- Business & Commerce
In committee
Legislative timeline
Left pending in committee
house · latest_action
Official recordTestimony taken in committee
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Official recordConsidered in public hearing
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Official recordScheduled for public hearing on . . .
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Official recordReferred to Business & Commerce
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Official recordReceived from the House
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Official recordReported engrossed
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Official recordStatement(s) of vote recorded in Journal
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Official recordRecord vote
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Official recordPassed
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Official recordRead 3rd time
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Official recordStatement(s) of vote recorded in Journal
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Official recordRecord vote
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Official recordPassed to engrossment
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Official recordRead 2nd time
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Official recordPlaced on General State Calendar
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Official recordConsidered in Calendars
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Official recordCommittee report sent to Calendars
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Official recordCommittee report distributed
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Official recordComte report filed with Committee Coordinator
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Official recordReported favorably w/o amendment(s)
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Official recordConsidered in public hearing
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Official recordLeft pending in committee
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Official recordTestimony taken/registration(s) recorded in committee
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Official recordConsidered in public hearing
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Official recordScheduled for public hearing on . . .
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Official recordReferred to Trade, Workforce & Economic Development
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Official recordRead first time
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Official recordFiled
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Official record
Official bill text
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Related articles
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