By: Capriglione H.B. No. 149
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of the use of artificial intelligence
systems in this state; providing civil penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Texas Responsible
Artificial Intelligence Governance Act
SECTION 2. Title 11, Business & Commerce Code, is amended by
adding Subtitle D to read as follows:
SUBTITLE D. ARTIFICIAL INTELLIGENCE PROTECTION
CHAPTER 551. ARTIFICIAL INTELLIGENCE PROTECTION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 551.001. DEFINITIONS. In this chapter:
(1) "Artificial intelligence system" means the use of
machine learning and related technologies that use data to train
statistical models for the purpose of enabling computer systems to
perform tasks normally associated with human intelligence or
perception, such as computer vision, speech or natural language
processing, and content generation.
(2) "Biometric identifier" means a retina or iris
scan, fingerprint, voiceprint, or record of hand or face geometry.
(3) "Council" means the Artificial Intelligence
Council established under Chapter 553.
(4) "Consumer" means an individual who is a resident
of this state acting only in an individual or household context.
The term does not include an individual acting in a commercial or
employment context.
(5) "Deploy" means to put into effect or
commercialize.
(6) "Deployer" means a person doing business in this
state that deploys an artificial intelligence system.
(7) "Developer" means a person doing business in this
state that develops an artificial intelligence system.
(8) "Distributor" means a person, other than the
Developer or Deployer, that makes an artificial intelligence system
available in the market for a commercial purpose.
(9) "Health care service or treatment" means a health
care treatment, service, or procedure designed to maintain, treat,
diagnose, prevent, alleviate, cure, or heal a patient's physical or
mental condition, illness, injury, or disease, including
preventative care.
(10) "Interactive computer service" has the meaning
assigned by Section 323.001, Business and Commerce Code.
(11) "Personal data" has the meaning assigned to it by
Section 541.001, Business and Commerce Code.
(12) "Personal data" has the meaning assigned to it by
Section 541.001, Business and Commerce Code.
(13) "Political viewpoint discrimination" means the
intentional limitation of a person's ability to express or receive
the expression of another person based solely on the person's
political beliefs, opinions, or affiliation.
(14) "Sensitive personal attribute" means race,
political opinions, religious or philosophical beliefs, ethnic
orientation, mental health diagnosis, or sex. The term does not
include conduct that would be classified as an offense under
Chapter 21, Penal Code.
Sec. 551.002. APPLICABILITY OF CHAPTER. This chapter
applies to a person that:
(1) conducts business, promotes, or advertises in this
state or produces a product or service consumed by residents of this
state; or
(2) engages in the development, distribution, or
deployment of an artificial intelligence system in this state; and
Sec. 551.003. SANDBOX PROGRAM EXCEPTION. Excluding
violations of Subchapter B, this chapter does not apply to the
development of an artificial intelligence system that is used
exclusively for research, training, testing, or other
pre-deployment activities performed by active participants of the
sandbox program in compliance with Chapter 552.
Sec. 551.004. DISCLOSURE OF AN ARTIFICIAL INTELLIGENCE
SYSTEM TO CONSUMERS. (a) A government agency that makes available
an artificial intelligence system that is intended to interact with
consumers shall disclose to each consumer, before or at the time of
interaction:
(1) that the consumer is interacting with an
artificial intelligence system;
(b) Disclosure is required under subsection (a) of this
section regardless of whether it would be obvious to a reasonable
person that the person is interacting with an artificial
intelligence system.
(c) All disclosures under subsection (a) shall be clear and
conspicuous and written in plain language, and avoid the use of a
dark pattern as defined by 541.001, Business & Commerce Code.
(d) All disclosures under subsection (a) may be linked to a
separate webpage of the developer or deployer.
(e) Any requirement in this section that may conflict with
state or federal law may be exempt.
(f) Any disclosure in a Health care service or treatment may
be prescribed to a consumer through entry waiver forms.
SUBCHAPTER B. PROHIBITED USES
Sec. 551.051. MANIPULATION OF HUMAN BEHAVIOR TO INCITE HARM
OR CRIMINALITY. An artificial intelligence system shall not be
intentionally developed or deployed to incite or encourage a person
to:
(1) commit physical self-harm, including suicide;
(2) harm another person; or
(3) engage in criminal activity.
Sec. 551.052. MANIPULATION OF HUMAN BEHAVIOR TO CIRCUMVENT
INFORMED DECISION-MAKING. An artificial intelligence system shall
not intentionally use Deceptive Trade Practices, as defined by
Chapter 17 of the Texas Business and Commerce Code
Sec.551.053. SOCIAL SCORING. (a) The use by a government
entity of AI systems for the evaluation or classification of
natural persons or groups of persons over a certain period of time
based on their social behavior or known, inferred or predicted
personal or personality characteristics, with the social score
leading to all of the following shall be prohibited:
(i) detrimental or unfavorable treatment of certain
natural persons or groups of persons in social contexts that are
unrelated to the contexts in which the data was originally
generated or collected;
(ii) detrimental or unfavorable treatment of certain
natural persons or groups of persons that is unjustified or
disproportionate to their social behavior or its gravity; and
(iii) infringement, constraining, or otherwise
chilling of any right guaranteed under the United States
Constitution, the Texas Constitution, federal law, or Texas law.
(b) This section applies to government entities using
artificial intelligence systems to constrain civil liberties, not
any artificial intelligence system developed or deployed for
commercial purposes.
Sec. 551.054. CAPTURE OF BIOMETRIC IDENTIFIERS USING
ARTIFICIAL INTELLIGENCE. (a) A government entity in this state
shall not develop or deploy an artificial intelligence system
developed with biometric identifiers of individuals and the
targeted or untargeted gathering of images or other media from the
internet or any other publicly available source shall not be
deployed for the purpose of uniquely identifying a specific
individual, if it would infringe, constrain, or otherwise chill any
right guaranteed under the United States Constitution, the Texas
Constitution, federal law, or Texas law.
(b) An individual is not considered to be informed nor to
have provided consent for such purpose pursuant to Section 503.001,
Business and Commerce Code, based solely upon the existence on the
internet, or other publicly available source, of an image or other
media containing one or more biometric identifiers.
(c) This section applies to systems designed for government
entities to constrain civil liberties, not any artificial
intelligence system developed or deployed for commercial purposes
or any other government entity purpose.
Sec. 551.056. POLITICAL VIEWPOINT DISCRIMINATION. (a) An
artificial intelligence system shall not be developed or deployed
in a manner that intentionally results in political viewpoint
discrimination or otherwise intentionally infringes upon a
person's freedom of association or ability to freely express the
person's beliefs or opinions.
(b) An interactive computer service may not, through the use
of an artificial intelligence system:
(1) block, ban, remove, de-platform, demonetize,
debank, de-boost, restrict, or otherwise discriminate against a
user based on the user's political speech; or
(2) modify or manipulate a user's content or posting
for the purpose of censoring the user's political speech.
(c) The prohibitions in subsection (b) apply regardless of
whether the actions of the interactive computer service are
automated or conducted with human oversight.
(d) This section does not apply to speech that:
(1) is illegal under federal or state law;
(2) constitutes a credible threat of violence or
incitement to imminent lawless action;
(3) contains obscene material as defined by Section
43.21, Penal Code;
(4) Contains unlawful deep fake video or image in
violation of Section 21.165, Penal Code; or
(5) violates intellectual property rights under
applicable law.
(e) This section shall be construed to be consistent with
applicable federal law, including 47 U.S.C. Section 230, and the
United States Constitution.
Sec. 551.058. UNLAWFUL DISCRIMINATION. An artificial
intelligence system shall not be developed or deployed with the
intent to unlawfully discriminate against a protected class in
violation of the laws of this state or federal law. Disparate impact
alone is not sufficient to show intent to discriminate.
Sec. 551.061. CERTAIN SEXUALLY EXPLICIT VIDEOS, IMAGES, AND
CHILD PORNOGRAPHY. An artificial intelligence system shall not be
developed or deployed with the sole intent of producing, assisting
or aiding in producing, or distributing unlawful visual material in
violation of Section 43.26, Penal Code or an unlawful deep fake
video or image in violation of Section 21.165, Penal Code. Factors
to be considered in evaluating the primary purpose or function of an
artificial intelligence system shall include marketing materials
and terms of use associated with the system.
SUBCHAPTER C. ENFORCEMENT AND CONSUMER PROTECTIONS
Sec. 551.101. CONSTRUCTION AND APPLICATION. (a) This
chapter shall be broadly construed and applied to promote its
underlying purposes, which are:
(1) to facilitate and advance the responsible
development and use of artificial intelligence systems;
(2) to protect individuals and groups of individuals
from known, and unknown but reasonably foreseeable, risks
associated with artificial intelligence;
(3) to provide transparency regarding those risks in
the development, deployment, or use of artificial intelligence
systems; and
(4) to provide reasonable notice regarding the use of
artificial intelligence systems by state agencies.
Sec. 551.102. ENFORCEMENT AUTHORITY. The attorney general
has authority to enforce this chapter. Excluding, researching,
training, testing, or the conducting of other pre-deployment or
post-deployment activities by active participants of the sandbox
program, in compliance with Chapter 552, does not subject a
developer or deployer to penalties or actions.
Sec. 551.103. INTERNET WEBSITE AND COMPLAINT MECHANISM.
The attorney general shall post on the attorney general's Internet
website an online mechanism through which a consumer may submit a
complaint under this chapter to the attorney general.
Sec. 551.104. INVESTIGATIVE AUTHORITY. (a) If the
attorney general receives a complaint alleging a violation of this
chapter through the online mechanism established under Section
551.103, the attorney general may issue a civil investigative
demand. The attorney general shall issue such demands in
accordance with and under the procedures established under Section
15.10.
(b) The attorney general may request from the associated
party, pursuant to a civil investigative demand issued under
Subsection (a), any one of the following;
(1) A High Level Statement disclosing the purpose,
intended use cases, and deployment context of, and benefits
afforded by, the artificial intelligence system;
(2) a High Level description of the categories of data
the artificial intelligence system processes as inputs and the
outputs the artificial intelligence system produces;
(3) any metrics used to evaluate the performance and
known limitations of the artificial intelligence system;
(4) a High Level description of the post-deployment
monitoring and user safeguards provided concerning the artificial
intelligence system, including the oversight, use, and learning
process established by the deployer to address issues arising from
the deployment of the artificial intelligence system;
(5) a high-level summary of the type of data used to
program or train the artificial intelligence system; or
(6) Any other relevant documentation reasonably
necessary for the attorney general to conduct an investigation and
determine liability or fault of the offender.
(c) The attorney general may not institute an action for a
civil penalty against a developer or deployer for artificial
intelligence systems that remain isolated from customer
interaction in a pre-deployment environment.
Sec. 551.105. NOTICE OF VIOLATION OF CHAPTER; OPPORTUNITY
TO CURE. (a) Before bringing an action under Section 551.106, the
attorney general shall notify a developer, distributor, or deployer
in writing, not later than the 60th day before bringing the action,
identifying the specific provisions of this chapter the attorney
general alleges have been or are being violated. The attorney
general may not bring an action against the developer or deployer
if:
(1) within the 60-day period, the developer or
deployer cures the identified violation; and
(2) the developer or deployer provides the attorney
general a written statement that the developer or deployer:
(A) cured the alleged violation;
(B) notified the consumer, if technically
feasible, and the council that the developer or deployer's
violation was addressed, if the consumer's contact information has
been made available to the developer or deployer and the attorney
general;
(C) provided supportive documentation to show
how the violation was cured; and
(D) made changes to internal policies, if
necessary, to reasonably ensure that no such further violations are
likely to occur.
(b) In any action brought forward by the attorney general or
any violation of this chapter, it shall be an affirmative defense
that the developer, deployer, or other person:
(1) discovers and cures an identified violation under
Subchapter B through:
(A) feedback that the developer, deployer, or
other person encourages deployers or users to provide to such
developer, deployer, or other person;
(B) testing, such as adversarial testing or
red-teaming;
(C) an internal review process; and is otherwise
in compliance with the latest version of the Artificial
Intelligence Risk Management Framework published by the National
Institute of Standards and Technology, ISO/IEC 42001, or another
nationally or internationally recognized risk management framework
for artificial intelligence systems; or
(D) following guidelines set by state agencies as
appropriate.
Sec. 551.106. CIVIL PENALTY; INJUNCTION. (a) The attorney
general may bring an action in the name of this state to restrain or
enjoin the person from violating this chapter and seek injunctive
relief.
(b) The attorney general may recover reasonable attorney's
fees and other reasonable expenses incurred in investigating and
bringing an action under this section.
(c) The attorney general may assess and collect an
administrative fine against a developer or deployer who fails to
timely cure a violation or who breaches a written statement
provided to the attorney general, of not less than $10,000 and not
more than $12,000 per uncured violation.
(d) The attorney general may assess and collect an
administrative fine against a developer or deployer who fails to
timely cure a violation that is determined to be uncurable, of not
less than $80,000 and not more than $200,000 per violation after
conviction of such violation.
(e) A developer or deployer who was found in violation of
and continues to operate with the provisions of this chapter shall
be assessed an administrative fine of not less than $2,000 and not
more than $40,000 per day.
(f) There is a rebuttable presumption that a developer,
distributor, or deployer used reasonable care as required under
this chapter if the developer, distributor, or deployer complied
with their duties in preventing violations under Subchapter B.
(g) A developer, distributor, or deployer may seek an
expedited hearing or other process, including a request for
declaratory judgment, if the developer, distributor, or deployer
believes its actions have not violated this chapter.
Sec. 551.107. ENFORCEMENT ACTIONS BY STATE AGENCIES. (a) A
state agency may sanction an individual licensed, registered, or
certified by that agency for violations of Subchapter B, including:
(1) the suspension, probation, or revocation of a
license, registration, certificate, or other form of permission to
engage in an activity; and
(2) monetary penalties up to $100,000.
(b) a state agency may not sanction an individual that is
licensed, registered, or certified by that agency for violations of
Subchapter B until individuals or entities have been sentenced for
violations of this chapter, and received recommendations from the
attorney general for subsequent enforcement.
Sec. 551.108. CONSUMER RIGHTS AND REMEDIES. A consumer may
appeal decision made by an artificial intelligence system which has
an adverse impact on their health, welfare, safety, or fundamental
rights, and shall have the right to obtain from the deployer clear
and meaningful explanations of the role of the artificial
intelligence system in the decision-making procedure and the main
elements of the decision taken.
SUBCHAPTER D. CONSTRUCTION OF CHAPTER; LOCAL PREEMPTION
Sec. 551.151. CONSTRUCTION OF CHAPTER. This chapter may
not be construed as imposing a requirement on a developer, a
deployer, or other person that adversely affects the rights or
freedoms of any person, including the right of free speech.
Sec. 551.152. LOCAL PREEMPTION. This chapter supersedes
and preempts any ordinance, resolution, rule, or other regulation
adopted by a political subdivision regarding the use of artificial
intelligence systems.
CHAPTER 552. ARTIFICIAL INTELLIGENCE REGULATORY SANDBOX PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 552.001. DEFINITIONS. In this chapter:
(1) "Applicable agency" means a state agency
responsible for regulating a specific sector impacted by an
artificial intelligence system.
(2) "Consumer" means a person who engages in
transactions involving an artificial intelligence system or is
directly affected by the use of such a system.
(3) "Council" means the Artificial Intelligence
Council established by Chapter 553.
(4) "Department" means the Texas Department of
Information Resources
(5) "Program participant" means a person or business
entity approved to participate in the sandbox program.
(6) "Sandbox program" means the regulatory framework
established under this chapter that allows temporary testing of
artificial intelligence systems in a controlled, limited manner
without full regulatory compliance.
SUBCHAPTER B. SANDBOX PROGRAM FRAMEWORK
Sec. 552.051. ESTABLISHMENT OF SANDBOX PROGRAM. (a) The
department, in coordination with the council, shall administer the
Artificial Intelligence Regulatory Sandbox Program to facilitate
the development, testing, and deployment of innovative artificial
intelligence systems in Texas.
(b) The sandbox program is designed to:
(1) promote the safe and innovative use of artificial
intelligence across various sectors including healthcare, finance,
education, and public services;
(2) encourage the responsible deployment of
artificial intelligence systems while balancing the need for
consumer protection, privacy, and public safety; and
(3) provide clear guidelines for artificial
intelligence developers to test systems while temporarily exempt
from certain regulatory requirements.
Sec. 552.052. APPLICATION PROCESS. (a) A person or
business entity seeking to participate in the sandbox program must
submit an application to the council.
(b) The application must include:
(1) a detailed description of the artificial
intelligence system and its intended use;
(2) a benefit assessment that addresses potential
impacts on consumers, privacy, or public safety;
(3) a plan for mitigating any adverse consequences
during the testing phase; and
(4) proof of compliance with federal artificial
intelligence laws and regulations, where applicable.
Sec. 552.053. DURATION AND SCOPE OF PARTICIPATION. A
participant may test and deploy an artificial intelligence system
under the sandbox program for a period of up to 36 months, unless
extended by the department for good cause.
SUBCHAPTER C. OVERSIGHT AND COMPLIANCE
Sec. 552.101. AGENCY COORDINATION. (a) The department
shall coordinate with all relevant state regulatory agencies to
oversee the operations of the sandbox participants.
(b) The council or a relevant agency may recommend to the
department that a participant's sandbox privileges be revoked if
the artificial intelligence system:
(1) poses undue risk to public safety or welfare;
(2) violates any federal or state laws that the
sandbox program cannot override.
Sec. 552.102. REPORTING REQUIREMENTS. (a) Each sandbox
participant must submit quarterly reports to the department, which
shall include:
(1) system performance metrics;
(2) updates on how the system mitigates any risks
associated with its operation; and
(3) feedback from consumers and affected stakeholders
that are using a product that has been deployed from this section.
(b) The department must submit an annual report to the
legislature detailing:
(1) the number of participants in the sandbox program;
(2) the overall performance and impact of artificial
intelligence systems tested within the program; and
(3) recommendations for future legislative or
regulatory reforms.
(c) The council shall maintain the confidentiality of the
intellectual property, trade secrets, and other sensitive
information of the sandbox.
CHAPTER 553. TEXAS ARTIFICIAL INTELLIGENCE COUNCIL
SUBCHAPTER A. CREATION AND ORGANIZATION OF COUNCIL
Sec. 553.001. CREATION OF COUNCIL. (a) The Artificial
Intelligence Council is administratively attached to the Texas
Department of Information Resources, and the office shall provide
administrative support to the council as provided by this section.
(b) The office and the council shall enter into a memorandum
of understanding detailing:
(1) the administrative support the council requires
from the office to fulfill the purposes of this chapter;
(2) the reimbursement of administrative expenses to
the office; and
(3) any other provisions available by law to ensure
the efficient operation of the council as attached to the office.
(c) The purpose of the council is to:
(1) ensure artificial intelligence systems are
ethical and in the public's best interest and do not harm public
safety or undermine individual freedoms by finding gaps in the
Penal Code and Chapter 82, Civil Practice and Remedies Code and
making recommendations to the Legislature.
(2) identify existing laws and regulations that impede
innovation in artificial intelligence development and recommend
appropriate reforms;
(3) analyze opportunities to improve the efficiency
and effectiveness of state government operations through the use of
artificial intelligence systems and make recommendations to
applicable state agencies regarding the use of artificial
intelligence to improve the efficiency and effectiveness of agency
operations;
(4) investigate and evaluate potential instances of
regulatory capture, including undue influence by technology
companies or disproportionate burdens on smaller innovators
through the use of artificial intelligence systems;
(5) investigate and evaluate the influence of
technology companies on other companies and determine the existence
or use of tools or processes designed to censor competitors or users
through the use of artificial intelligence systems;
(6) offer guidance and recommendations to the state
legislature on the ethical and legal use of artificial
intelligence;
(7) conduct and publish a study of the current
artificial intelligence regulatory environment; and
(8) in coordination with the Department of Information
Resources, monitor the Artificial Intelligence Regulatory Sandbox
Program established under Chapter 552 and make recommendations for
improvements to the program.
Sec. 553.002. COUNCIL MEMBERSHIP. (a) The council is
composed of 10 members as follows:
(1) four members of the public appointed by the
governor;
(2) two members of the public appointed by the
lieutenant governor;
(3) two members of the public appointed by the speaker
of the house of representatives;
(4) one senator appointed by the lieutenant governor
as a nonvoting member; and
(5) one member of the house of representatives
appointed by the speaker of the house of representatives as a
nonvoting member.
(b) Voting members of the council serve staggered four-year
terms, with the terms of four members expiring every two years.
(c) The governor shall appoint a chair from among the
members, and the council shall elect a vice chair from its
membership.
(d) The council may establish an advisory board composed of
individuals from the public who possess expertise directly related
to the council's functions, including technical, ethical,
regulatory, and other relevant areas.
Sec. 553.003. QUALIFICATIONS. (a) Members of the council
must be Texas residents and have knowledge or expertise in one or
more of the following areas:
(1) artificial intelligence technologies;
(2) data privacy and security;
(3) ethics in technology or law;
(4) public policy and regulation;
(5) risk management related to artificial
intelligence systems;
(6) expertise in improving the efficiency and
effectiveness of government operations; or
(7) expertise in anti-competitive practices and
market fairness.
Sec. 553.004. STAFF AND ADMINISTRATION. (a) The council
may employ an executive director and other personnel as necessary
to perform its duties.
(b) The council, its administration, and its staff must not
account for more than 4% of the budget of the department of
information resources.
SUBCHAPTER B. POWERS AND DUTIES OF THE COUNCIL
Sec. 553.101. ISSUANCE OF ADVISORY REPORTS. (a) The
council may issue reports to the state legislature regarding the
use of artificial intelligence systems in the state.
(b) The council may issue reports on state use of artificial
intelligence systems regarding:
(1) the compliance of artificial intelligence systems
with Texas law;
(2) the ethical implications of artificial
intelligence deployments in the state;
(3) data privacy and security concerns related to
artificial intelligence systems; or
(4) potential liability or legal risks associated with
the use of AI.
Sec. 553.102. TRAINING AND EDUCATIONAL OUTREACH. The
council shall conduct training programs for state agencies and
local governments on the use of artificial intelligence systems.
Sec. 553.103. LIMITATION OF AUTHORITY. (a) The council may
not:
(1) Promulgate rules, regulations, binding guidance, or
anything construed as regulations or guidance on any entity or
agency; or
(2) Interfere with or override state agency operations.
(b) The council's duties are limited to providing evaluations,
SECTION 3. Section 503.001, Business & Commerce Code is
amended by adding Subsection (c-3) to read as follows:
(c-3) This section does not apply to the training,
processing, or storage of biometric identifiers involved in
artificial intelligence systems, as defined by Section 551.001,
unless performed for the purpose of uniquely identifying a specific
individual. If a biometric identifier captured for the purpose of
training an artificial intelligence system is subsequently used for
a commercial purpose, the person possessing the biometric
identifier is subject to this section's provisions for the
possession and destruction of a biometric identifier and the
associated penalties.
SECTION 4. Sec.541.104(a), Business & Commerce Code is
amended to read as follows:
Sec. 541.104. DUTIES OF PROCESSOR. (a) A processor shall
adhere to the instructions of a controller and shall assist the
controller in meeting or complying with the controller's duties or
requirements under this chapter, including:
(1) assisting the controller in responding to consumer
rights requests submitted under Section 541.051 by using
appropriate technical and organizational measures, as reasonably
practicable, taking into account the nature of processing and the
information available to the processor;
(2) assisting the controller with regard to complying
with the [requirement]requirements relating to the security of
processing personal data, and if applicable, the data collected,
stored, and processed by artificial intelligence systems and to the
notification of a breach of security of the processor's system
under Chapter 521, taking into account the nature of processing and
the information available to the processor; and
(3) providing necessary information to enable the
controller to conduct and document data protection assessments
under Section 541.105.
SECTION 5. Section 325.011, Government Code, is amended to
read as follows:
Sec. 325.011. CRITERIA FOR REVIEW. The commission and its
staff shall consider the following criteria in determining whether
a public need exists for the continuation of a state agency or its
advisory committees or for the performance of the functions of the
agency or its advisory committees:
(1) the efficiency and effectiveness with which the
agency or the advisory committee operates;
(2)(A) an identification of the mission, goals, and
objectives intended for the agency or advisory committee and of the
problem or need that the agency or advisory committee was intended
to address; and
(B) the extent to which the mission, goals, and
objectives have been achieved and the problem or need has been
addressed;
(3)(A) an identification of any activities of the
agency in addition to those granted by statute and of the authority
for those activities; and
(B) the extent to which those activities are
needed;
(4) an assessment of authority of the agency relating
to fees, inspections, enforcement, and penalties;
(5) whether less restrictive or alternative methods of
performing any function that the agency performs could adequately
protect or provide service to the public;
(6) the extent to which the jurisdiction of the agency
and the programs administered by the agency overlap or duplicate
those of other agencies, the extent to which the agency coordinates
with those agencies, and the extent to which the programs
administered by the agency can be consolidated with the programs of
other state agencies;
(7) the promptness and effectiveness with which the
agency addresses complaints concerning entities or other persons
affected by the agency, including an assessment of the agency's
administrative hearings process;
(8) an assessment of the agency's rulemaking process
and the extent to which the agency has encouraged participation by
the public in making its rules and decisions and the extent to which
the public participation has resulted in rules that benefit the
public;
(9) the extent to which the agency has complied with:
(A) federal and state laws and applicable rules
regarding equality of employment opportunity and the rights and
privacy of individuals; and
(B) state law and applicable rules of any state
agency regarding purchasing guidelines and programs for
historically underutilized businesses;
(10) the extent to which the agency issues and
enforces rules relating to potential conflicts of interest of its
employees;
(11) the extent to which the agency complies with
Chapters 551 and 552 and follows records management practices that
enable the agency to respond efficiently to requests for public
information;
(12) the effect of federal intervention or loss of
federal funds if the agency is abolished;
(13) the extent to which the purpose and effectiveness
of reporting requirements imposed on the agency justifies the
continuation of the requirement; [and]
(14) an assessment of the agency's cybersecurity
practices using confidential information available from the
Department of Information Resources or any other appropriate state
agency; and
(15) an assessment, using information available from
the Department of Information Resources, the Attorney General, or
any other appropriate state agency, of the agency's use of
artificial intelligence systems in its operations and its oversight
of the use of artificial intelligence systems by entities or
persons under the agency's jurisdiction, and any related impact on
the agency's ability to achieve its mission, goals, and objectives.
SECTION 6. Section 2054.068(b), Government Code, is amended
to read as follows:
(b) The department shall collect from each state agency
information on the status and condition of the agency's information
technology infrastructure, including information regarding:
(1) the agency's information security program;
(2) an inventory of the agency's servers, mainframes,
cloud services, and other information technology equipment;
(3) identification of vendors that operate and manage
the agency's information technology infrastructure; [and]
(4) any additional related information requested by
the department; and
(5) an evaluation of the use, or considered use, of
artificial intelligence systems by each state agency.
SECTION 7. Section 2054.0965(b), Government Code, is
amended to read as follows:
Sec. 2054.0965. INFORMATION RESOURCES DEPLOYMENT REVIEW.
(b) Except as otherwise modified by rules adopted by the
department, the review must include:
(1) an inventory of the agency's major information
systems, as defined by Section 2054.008, and other operational or
logistical components related to deployment of information
resources as prescribed by the department;
(2) an inventory of the agency's major databases,
artificial intelligence systems, and applications;
(3) a description of the agency's existing and planned
telecommunications network configuration;
(4) an analysis of how information systems,
components, databases, applications, and other information
resources have been deployed by the agency in support of:
(A) applicable achievement goals established
under Section 2056.006 and the state strategic plan adopted under
Section 2056.009;
(B) the state strategic plan for information
resources; and
(C) the agency's business objectives, mission,
and goals;
(5) agency information necessary to support the state
goals for interoperability and reuse; and
(6) confirmation by the agency of compliance with
state statutes, rules, and standards relating to information
resources.
SECTION 8. Not later than September 1, 2026, the attorney
general shall post on the attorney general's Internet website the
online mechanism required by Section 551.041, Business & Commerce
Code, as added by this Act.
SECTION 9. This Act takes effect January 1, 2026.