| 1 | 1 | | 89R16717 SCR-D |
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| 2 | 2 | | By: Bhojani H.B. No. 5118 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the use of an automated employment decision tool by an |
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| 10 | 10 | | employer to assess a job applicant's fitness for a position. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Title 2, Labor Code, is amended by adding |
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| 13 | 13 | | Subtitle F to read as follows: |
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| 14 | 14 | | SUBTITLE F. PROVISIONS REGARDING JOB APPLICANT SCREENING |
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| 15 | 15 | | CHAPTER 95. USE OF AUTOMATED EMPLOYMENT DECISION TOOL |
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| 16 | 16 | | Sec. 95.001. DEFINITIONS. In this chapter: |
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| 17 | 17 | | (1) "Algorithm" means a computerized procedure |
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| 18 | 18 | | consisting of a set of steps used to accomplish a determined task. |
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| 19 | 19 | | (2) "Applicant" means a person applying for a job |
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| 20 | 20 | | offered by an employer. |
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| 21 | 21 | | (3) "Artificial intelligence system" means a system of |
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| 22 | 22 | | machine learning and related technologies that use data to train |
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| 23 | 23 | | statistical models for the purpose of enabling computer systems to |
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| 24 | 24 | | perform tasks normally associated with human intelligence or |
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| 25 | 25 | | perception, such as computer vision, speech or natural language |
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| 26 | 26 | | processing, and content generation. |
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| 27 | 27 | | (4) "Automated employment decision tool" means a |
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| 28 | 28 | | computational process or software application that uses |
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| 29 | 29 | | algorithms, machine learning, statistical modeling, data |
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| 30 | 30 | | analytics, or an artificial intelligence system to assess an |
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| 31 | 31 | | applicant's fitness for a position. |
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| 32 | 32 | | (5) "Commission" means the Texas Workforce |
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| 33 | 33 | | Commission. |
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| 34 | 34 | | (6) "Employer" has the meaning assigned by Section |
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| 35 | 35 | | 61.001. |
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| 36 | 36 | | Sec. 95.002. BIAS AUDIT REQUIRED. An employer may not use an |
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| 37 | 37 | | automated employment decision tool in regard to an applicant |
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| 38 | 38 | | unless: |
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| 39 | 39 | | (1) a bias audit of the automated employment decision |
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| 40 | 40 | | tool has been conducted by an impartial, independent auditor at the |
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| 41 | 41 | | employer's request to determine whether the data incorporated into |
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| 42 | 42 | | the automated employment decision tool may have the effect of |
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| 43 | 43 | | causing discrimination prohibited under Chapter 21 or federal |
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| 44 | 44 | | antidiscrimination laws; and |
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| 45 | 45 | | (2) the employer has posted on the employer's publicly |
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| 46 | 46 | | accessible Internet website the results of the bias audit conducted |
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| 47 | 47 | | under Subdivision (1). |
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| 48 | 48 | | Sec. 95.003. DISCLOSURE REQUIRED. An employer may not use |
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| 49 | 49 | | an automated employment decision tool in regard to an applicant |
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| 50 | 50 | | unless the employer: |
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| 51 | 51 | | (1) notifies the applicant that an automated |
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| 52 | 52 | | employment decision tool may be used to assess the applicant's |
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| 53 | 53 | | fitness for the position; and |
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| 54 | 54 | | (2) provides the applicant with information |
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| 55 | 55 | | describing how the automated employment decision tool will be used |
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| 56 | 56 | | to assess the applicant's fitness for the position, including what |
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| 57 | 57 | | characteristics may be evaluated for that purpose. |
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| 58 | 58 | | Sec. 95.004. RULES. The commission shall adopt rules for |
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| 59 | 59 | | the administration of this chapter. |
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| 60 | 60 | | SECTION 2. This Act takes effect September 1, 2025. |
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