| 1 | 1 | | 89R16705 BCH-D |
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| 2 | 2 | | By: Bhojani H.B. No. 5496 |
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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 disclosure and use of artificial intelligence. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Title 12, Business & Commerce Code, is amended by |
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| 12 | 12 | | adding Chapter 611 to read as follows: |
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| 13 | 13 | | CHAPTER 611. ARTIFICIAL INTELLIGENCE TRANSPARENCY |
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| 14 | 14 | | Sec. 611.001. DEFINITION. In this chapter, "artificial |
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| 15 | 15 | | intelligence" means a machine-based system that: |
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| 16 | 16 | | (1) when given a set of objectives by an individual, |
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| 17 | 17 | | makes predictions, recommendations, or decisions that influence a |
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| 18 | 18 | | real or virtual environment; and |
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| 19 | 19 | | (2) uses inputs from an individual or machine to: |
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| 20 | 20 | | (A) perceive or interpret a real or virtual |
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| 21 | 21 | | environment; |
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| 22 | 22 | | (B) use automation to analyze a perception or |
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| 23 | 23 | | interpretation of a real or virtual environment; or |
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| 24 | 24 | | (C) use models to infer or form opinions on |
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| 25 | 25 | | information or a proposed action. |
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| 26 | 26 | | Sec. 611.002. PROVISION OF INFORMATION BY AND DUTIES OF |
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| 27 | 27 | | USER OF ARTIFICIAL INTELLIGENCE. (a) A person who uses artificial |
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| 28 | 28 | | intelligence in conducting business or otherwise providing a good |
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| 29 | 29 | | or service, including operating or providing access to a social |
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| 30 | 30 | | media platform, creating or distributing political advertising, or |
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| 31 | 31 | | providing financial services, to a resident of this state shall: |
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| 32 | 32 | | (1) implement and maintain standards representing the |
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| 33 | 33 | | best practices of the artificial intelligence industry; |
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| 34 | 34 | | (2) provide a tool for an individual to whom the person |
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| 35 | 35 | | is providing a good or service that enables the individual to detect |
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| 36 | 36 | | the use of artificial intelligence; |
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| 37 | 37 | | (3) make available to any individual affected by a |
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| 38 | 38 | | decision made by artificial intelligence an explanation of how and |
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| 39 | 39 | | why the artificial intelligence reached that decision; and |
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| 40 | 40 | | (4) ensure that artificial intelligence does not |
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| 41 | 41 | | demonstrate bias or discriminate against an individual on the basis |
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| 42 | 42 | | of any legally protected classification. |
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| 43 | 43 | | (b) Artificial intelligence is considered to be used to |
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| 44 | 44 | | provide a good or service to an individual under Subsection (a) |
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| 45 | 45 | | regardless of whether the individual can directly access the |
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| 46 | 46 | | artificial intelligence. |
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| 47 | 47 | | Sec. 611.003. ENFORCEMENT. A violation of this chapter is a |
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| 48 | 48 | | deceptive trade practice under Subchapter E, Chapter 17, and is |
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| 49 | 49 | | actionable under that subchapter. |
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| 50 | 50 | | SECTION 2. This Act takes effect September 1, 2025. |
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