TX HB4518

Creates a new legal entity type called "decentralized unincorporated nonprofit associations" (DUNAs) requiring at least 100 members joined for a common nonprofit purpose, with governance that can operate through blockchain technology and smart contracts

Establishes that members and administrators are not personally liable for association debts or obligations solely by virtue of their membership or administrative role, and members do not owe fiduciary duties to the association

Allows associations to govern through distributed ledger technology, including using smart contracts for voting on proposals, software upgrades, and governance changes, with membership interests being freely transferable unless governing principles state otherwise

Prohibits distribution of profits or dividends to members but permits reasonable compensation for services, expense reimbursement, and payments for voting and participation activities

Provides for dissolution when membership falls below 100 members, by member vote, by governing principles, or by court order, with remaining assets distributed according to governing principles or proportionally to members' interests