Legislatures and governments have been using XML in a variety of ways. One way would be to actually draft legislation in XML. This is discussed in an American context here.
Another way is to use XML as a means of promoting open government. This is discussed here (beginning on page 119).
There is also some very interesting stuff going on in Europe right now using XML in a multilingual setting where multiple drafts are needed of multiple versions of bills in many official languages. See here.
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