Texas 2025 - 89th Regular

Texas House Bill HB3808 Compare Versions

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1	1		By: Harrison H.B. No. 3808
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the creation of the artificial intelligence advisory
7	9		council and the establishment of the artificial intelligence
8	10		learning laboratory.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Chapter 2054, Government Code, is amended by
11	13		adding Subchapter S to read as follows:
12	14		SUBCHAPTER S. ARTIFICIAL INTELLIGENCE ADVISORY COUNCIL
13	15		Sec. 2054.621. DEFINITIONS. In this subchapter:
14	16		(1) "Algorithm" means a computerized procedure
15	17		consisting of a set of steps used to accomplish a determined task.
16	18		(2) "Artificial intelligence systems" means systems
17	19		capable of:
18	20		(A) perceiving an environment through data
19	21		acquisition and processing and interpreting the derived
20	22		information to take an action or actions or to imitate intelligent
21	23		behavior given a specific goal; and
22	24		(B) learning and adapting behavior by analyzing
23	25		how the environment is affected by prior actions.
24	26		(3) "Automated decision system" means an algorithm,
25	27		including an algorithm incorporating machine learning or other
26	28		artificial intelligence techniques, that uses data-based analytics
27	29		to make or support governmental decisions, judgments, or
28	30		conclusions.
29	31		(4) "Automated final decision system" means an
30	32		automated decision system that makes final decisions, judgments, or
31	33		conclusions without human intervention.
32	34		(5) "Automated support decision system" means an
33	35		automated decision system that provides information to inform the
34	36		final decision, judgment, or conclusion of a human decision maker.
35	37		(6) "Council" means the artificial intelligence
36	38		advisory council established under this subchapter.
37	39		Sec. 2054.622. ARTIFICIAL INTELLIGENCE ADVISORY COUNCIL.
38	40		(a) The council is composed of the following seven members:
39	41		(1) one member of the house of representatives
40	42		appointed by the speaker of the house of representatives;
41	43		(2) one member of the senate appointed by the
42	44		lieutenant governor;
43	45		(3) the executive director or the executive director's
44	46		designee; and
45	47		(4) the following four members appointed by the
46	48		governor:
47	49		(A) an expert on ethics;
48	50		(B) an expert on artificial intelligence
49	51		systems;
50	52		(C) an expert on law enforcement usage of
51	53		artificial intelligence systems; and
52	54		(D) an expert on constitutional and legal rights.
53	55		(b) The council members appointed under Subsections (a)(1)
54	56		and (2) shall serve as co-chairs of the council.
55	57		(c) A member of the council is not entitled to compensation
56	58		or reimbursement for expenses.
57	59		(d) The department shall provide administrative support for
58	60		the council.
59	61		(e) The council shall meet at the call of the co-chairs. The
60	62		council may meet in person or by telephone conference call,
61	63		videoconference, or another similar telecommunication method.
62	64		Notwithstanding Chapter 551 or any other law, a meeting held by
63	65		telephone conference call, videoconference, or another similar
64	66		telecommunication method is subject to the requirements of Sections
65	67		551.125(c), (d), (e), and (f).
66	68		(f) The council shall study and monitor artificial
67	69		intelligence systems developed, employed, or procured by state
68	70		agencies. In carrying out its duties under this section, the
69	71		council shall:
70	72		(1) assess the need for a state code of ethics for
71	73		artificial intelligence systems in state government;
72	74		(2) review automated decision systems inventory
73	75		reports submitted by state agencies under Section 2054.623,
74	76		including a review of:
75	77		(A) the effect of the automated decision systems
76	78		on the constitutional or legal rights, duties, or privileges of the
77	79		residents of this state; and
78	80		(B) the potential benefits, liabilities, or
79	81		risks that this state could incur as a result of implementing the
80	82		automated decision systems; and
81	83		(3) recommend administrative actions that state
82	84		agencies may take without further legislative authorization.
83	85		(g) Not later than December 1, 2026, the council shall
84	86		submit a report to the governor and the legislature that includes:
85	87		(1) a summary of the council's findings after
86	88		reviewing:
87	89		(A) the automated decision systems inventory
88	90		reports submitted under Section 2054.623; and
89	91		(B) the results of the artificial intelligence
90	92		learning laboratory under Section 2054.624;
91	93		(2) a summary of the recommendations of any relevant
92	94		national bodies on artificial intelligence systems in state
93	95		government;
94	96		(3) an assessment of the impact of using artificial
95	97		intelligence systems in state government on the liberty, finances,
96	98		livelihood, and privacy interests of the residents of this state;
97	99		(4) recommendations of the least stringent policies
98	100		necessary to:
99	101		(A) protect the privacy and interests of the
100	102		residents of this state from any diminution caused by employment of
101	103		artificial intelligence systems by state government;
102	104		(B) ensure that the residents of this state are
103	105		free from unfair discrimination caused or compounded by the
104	106		employment of artificial intelligence systems in state government;
105	107		and
106	108		(C) promote workforce knowledge of artificial
107	109		intelligence technology and the development of ethical artificial
108	110		intelligence systems in state government; and
109	111		(5) any other information that the council considers
110	112		relevant.
111	113		(h) Section 2110.008 does not apply to the council.
112	114		Sec. 2054.623. AUTOMATED DECISION SYSTEMS INVENTORY
113	115		REPORT. (a) Not later than July 1, 2026, each agency in the
114	116		executive and legislative branches of state government, using money
115	117		appropriated to the agency by this state, shall submit an inventory
116	118		report of all automated decision systems that are being developed,
117	119		employed, or procured by the agency. For each automated decision
118	120		system, the inventory report must include a description of:
119	121		(1) the name and vendor of the automated decision
120	122		system, if any;
121	123		(2) the automated decision system's general
122	124		capabilities, including:
123	125		(A) reasonably foreseeable capabilities outside
124	126		the scope of the agency's proposed use; and
125	127		(B) whether the automated decision system is used
126	128		or may be used for independent decision-making powers and the
127	129		impact of those decisions on the residents of this state;
128	130		(3) the types of data inputs that the technology uses;
129	131		(4) how the data described by Subdivision (3) is
130	132		generated, collected, and processed;
131	133		(5) the types of data the automated decision system is
132	134		reasonably likely to generate;
133	135		(6) whether the automated decision system has been
134	136		tested by an independent third party, has a known bias, or is
135	137		untested for bias;
136	138		(7) the purpose and proposed use of the automated
137	139		decision system, including:
138	140		(A) the decisions the automated decision system
139	141		will be used to make or support;
140	142		(B) whether the automated decision system is an
141	143		automated final decision system or an automated support decision
142	144		system; and
143	145		(C) the automated decision system's intended
144	146		benefits, including any data or research relevant to the outcome of
145	147		those results;
146	148		(8) how automated decision system data is securely
147	149		stored and processed and whether the agency intends to share access
148	150		to the automated decision system or data from that automated
149	151		decision system with any other entity, and why; and
150	152		(9) the information technology fiscal impacts of the
151	153		automated decision system, including:
152	154		(A) initial acquisition costs and ongoing
153	155		operating costs, such as maintenance, licensing, personnel, legal
154	156		compliance, use auditing, data retention, and security costs;
155	157		(B) any cost savings that would be achieved
156	158		through the use of the technology; and
157	159		(C) any current or potential sources of funding,
158	160		including any subsidies or free products being offered by vendors
159	161		or governmental entities.
160	162		(b) Not later than March 1, 2026, the council, in
161	163		consultation with the department, shall prescribe the form,
162	164		contents, and manner of submission of the automated decision
163	165		systems inventory report required under this section.
164	166		(c) Each agency shall submit the report required under this
165	167		section to the:
166	168		(1) department;
167	169		(2) council; and
168	170		(3) standing committees of the senate and house of
169	171		representatives with primary jurisdiction over state agency
170	172		information technology.
171	173		Sec. 2054.624. ARTIFICIAL INTELLIGENCE LEARNING
172	174		LABORATORY. (a) In this section:
173	175		(1) "Learning laboratory" means the artificial
174	176		intelligence learning laboratory established under this section.
175	177		(2) "Participant" means an entity selected by the
176	178		council to participate in the artificial intelligence learning
177	179		laboratory established under this section, including a state
178	180		agency, a business entity, a nonprofit organization, or an open
179	181		source project.
180	182		(3) "Regulatory mitigation agreement" means an
181	183		agreement between the council and a participant for the purpose of
182	184		permitting the participant to use and test artificial intelligence
183	185		systems with limited legal and regulatory boundaries.
184	186		(4) "State agency" means, notwithstanding Section
185	187		2054.003, an agency in the legislative or executive branch of state
186	188		government.
187	189		(b) The council shall, with assistance from the department,
188	190		establish the artificial intelligence learning laboratory. The
189	191		council shall operate the learning laboratory to:
190	192		(1) evaluate the benefits, risks, and impact of
191	193		regulations on artificial intelligence;
192	194		(2) encourage the development of artificial
193	195		intelligence in state agencies; and
194	196		(3) produce recommendations for the least stringent
195	197		legislation on or regulation of artificial intelligence.
196	198		(c) The council shall set, and update as necessary, a
197	199		learning agenda for the learning laboratory to establish specific
198	200		areas of artificial intelligence policy to study. The learning
199	201		agenda must outline the parameters for the type of artificial
200	202		intelligence systems to be tested by a participant. In setting the
201	203		learning agenda, the council may consult state agencies, industry
202	204		leaders, and other key stakeholders the council considers
203	205		appropriate.
204	206		(d) The council shall establish an application process and
205	207		criteria to select participants for the learning laboratory. The
206	208		council shall, in selecting participants, consider:
207	209		(1) the relevance and utility of the applicant's
208	210		artificial intelligence technology to the learning agenda;
209	211		(2) the applicant's expertise and knowledge specific
210	212		to the learning agenda;
211	213		(3) the applicant's plan to monitor and minimize use
212	214		when testing the artificial intelligence systems;
213	215		(4) whether the applicant is eligible for regulatory
214	216		mitigation as described by Section 2054.626; and
215	217		(5) any other factor the council determines relevant.
216	218		(e) In collaboration with each participant, the council
217	219		shall establish benchmarks and assess outcomes of participation in
218	220		the learning laboratory.
219	221		(f) An applicant approved for participation must enter into
220	222		a regulatory mitigation agreement under Section 2054.625.
221	223		(g) A participant of the learning laboratory shall conduct
222	224		experiments using artificial intelligence systems, automated
223	225		decision systems, automated final decision systems, or automated
224	226		support decision systems that fall within the scope of the learning
225	227		agenda.
226	228		(h) A participant shall retain all records and provide
227	229		requested information and findings to the council. A participant
228	230		shall submit a report to the council, including:
229	231		(1) a summary of the proposed artificial intelligence
230	232		systems;
231	233		(2) the results from operating the artificial
232	234		intelligence systems; and
233	235		(3) any other information the council determines as
234	236		necessary and relevant.
235	237		(i) The council shall submit to the legislature, the
236	238		standing committees of each house with jurisdiction over artificial
237	239		intelligence systems, and the governor a report containing the
238	240		results of the learning laboratory findings and suggestions of the
239	241		least stringent legal and regulatory policies in relation to the
240	242		artificial intelligence systems studied by the learning
241	243		laboratory.
242	244		(j) The department may adopt rules to implement this
243	245		section.
244	246		Sec. 2054.625. REGULATORY MITIGATION AGREEMENTS. (a) A
245	247		participant in the learning laboratory shall enter into an
246	248		agreement as provided by this section.
247	249		(b) The agreement must provide:
248	250		(1) limitations on the artificial intelligence
249	251		systems to be tested, including:
250	252		(A) the number and types of users;
251	253		(B) geographic limitations; and
252	254		(C) any other limitation the department
253	255		considers advisable;
254	256		(2) procedures to protect the health and safety of
255	257		this state during the testing period;
256	258		(3) that the participant does not have any expectation
257	259		of a property right or license to participate in the learning
258	260		laboratory;
259	261		(4) that committing certain violations of law or a
260	262		violation of the agreement, as determined by the department, is
261	263		grounds for removal from the learning laboratory;
262	264		(5) that participation in the learning laboratory does
263	265		not constitute an endorsement by the state and is not a factor in
264	266		any criminal or civil proceeding;
265	267		(6) that the state is not responsible for any claims,
266	268		liabilities, damages, losses, or expenses arising out of the
267	269		participant's involvement in the learning laboratory; and
268	270		(7) that the participant will:
269	271		(A) provide information to the department and any
270	272		other state agency the department considers necessary to
271	273		successfully test artificial intelligence systems under the
272	274		learning laboratory program; and
273	275		(B) report to the department under the terms
274	276		acceptable to the department.
275	277		(c) An agreement under this section may be entered into by a
276	278		participant, the department, and other state agencies the
277	279		department considers necessary for regulatory mitigation as
278	280		described by Subsection (d). The department shall consult with
279	281		other state agencies on appropriate terms of regulatory mitigation
280	282		to provide under Subsection (d).
281	283		(d) An agreement under this section may provide for the
282	284		following regulatory mitigation measures:
283	285		(1) circumstances under which a participant:
284	286		(A) is or is not required to provide restitution
285	287		to a user of the artificial intelligence system under testing;
286	288		(B) may have an opportunity to correct any
287	289		violations of law that occur from using the system described by this
288	290		section before penalties are imposed by the state; and
289	291		(C) may be entitled to reduced civil penalties
290	292		during the period in which the agreement is in effect; and
291	293		(2) any other measures to address risks that the
292	294		department considers advisable.
293	295		(e) An agreement under this section has a term of one year
294	296		and may be extended on request by the participant for an additional
295	297		year, if the request is submitted not later than 30 days before the
296	298		date that the agreement's term ends. The department shall approve
297	299		or deny the request before the date that the agreement's term ends.
298	300		Sec. 2054.626. ELIGIBILITY. An applicant for participation
299	301		in the learning laboratory is eligible for regulatory mitigation as
300	302		described by Section 2054.625 if:
301	303		(1) the applicant has the technical expertise and
302	304		capability to responsibly deploy and test the proposed artificial
303	305		intelligence systems;
304	306		(2) the applicant has sufficient financial resources
305	307		to meet obligations during the testing period;
306	308		(3) the proposed artificial intelligence systems
307	309		provide substantial consumer benefits that may outweigh identified
308	310		risks from permitting regulatory mitigation;
309	311		(4) the applicant has an effective plan to monitor and
310	312		minimize identified risks from testing; and
311	313		(5) the scale, scope, and duration of proposed testing
312	314		is appropriately limited based on risk assessments.
313	315		Sec. 2054.627. COUNCIL ABOLISHED; EXPIRATION OF
314	316		SUBCHAPTER. The council is abolished and this subchapter expires
315	317		September 1, 2029.
316	318		SECTION 2. (a) As soon as practicable after the effective
317	319		date of this Act but not later than October 1, 2025, the appropriate
318	320		appointing authorities shall appoint the members to the artificial
319	321		intelligence advisory council as required by Section 2054.622,
320	322		Government Code, as added by this Act.
321	323		(b) Not later than November 1, 2025, the advisory council
322	324		established under Subchapter S, Chapter 2054, Government Code, as
323	325		added by this Act, shall hold its initial meeting.
324	326		(c) Not later than December 1, 2025, the advisory council
325	327		established under Subchapter S, Chapter 2054, Government Code, as
326	328		added by this Act, shall establish the artificial intelligence
327	329		learning laboratory as required by Section 2054.624, Government
328	330		Code, as added by this Act.
329	331		SECTION 3. This Act takes effect immediately if it receives
330	332		a vote of two-thirds of all the members elected to each house, as
331	333		provided by Section 39, Article III, Texas Constitution. If this
332	334		Act does not receive the vote necessary for immediate effect, this
333	335		Act takes effect September 1, 2025.