BILL ANALYSIS Senate Research Center S.B. 1964 By: Parker Business & Commerce 4/2/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT As artificial intelligence (AI) technologies rapidly evolve, state and local governments increasingly rely on automated tools to deliver services, make decisions that affect individuals, and optimize internal processes. However, existing laws do not sufficiently address the complex issues of transparency, accountability, and the protection of individual rights arising from government use of AI systems. S.B. 1964 seeks to create a clear, enforceable framework for the procurement, development, and deployment of AI systems by government agencies in Texas. By mandating compliance with a code of ethics and minimum standards aligned with the National Institute of Standards and Technology's AI Risk Management Framework, the bill promotes responsible AI use and mitigates risks posed by automated decision-making. It empowers the Department of Information Resources to provide guidance, develop training and educational programs, and conduct statewide oversight, ensuring that new AI technologies are vetted for fairness, transparency, and security before being implemented. The inclusion of an advisory board, sandbox program, and complaint webpage fosters collaboration, public input, and accountability, while the bill's enforcement mechanisms, including contract-voiding provisions and referral to the Comptroller of Public Accounts, help guarantee adherence to these standards. Overall, the proposed regulatory structure seeks to increase government efficiency, safeguard individual rights, improve public trust in AI-driven processes, and uphold ethical and legal standards in Texas government operations. As proposed, S.B. 1964 amends current law relating to the regulation and use of artificial intelligence systems and the management of data by governmental entities. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Department of Information Resources in SECTION 5 (Sections 2054.702, 2054.703, and 2054.713, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2054.003, Government Code, by adding Subdivisions (1-a), (2-b), (6-a), and (6-b) to define "artificial intelligence system," "controlling factor," "heightened scrutiny artificial intelligence system," and "principal basis." SECTION 2. Amends Section 2054.068(b), Government Code to require the Texas Department of Information Resources (DIR) to collect from each state agency information on the status and condition of the agency's information technology infrastructure, including information regarding an inventory of the agency's servers, mainframes, cloud services, artificial intelligence (AI) systems, including heightened scrutiny artificial intelligence systems, and other information technology equipment. SECTION 3. Amends Section 2054.0965, Government Code, by amending Subsection (b) and adding Subsection (c), as follows: (b) Requires that the review completed by a state agency of the operational aspects of the agency's information resources deployment, except as otherwise modified by rules adopted by DIR, include certain information, including an inventory and identification of the AI systems and heightened scrutiny AI systems deployed by the agency, including an evaluation of the purpose of and risk mitigation measures for each system and an analysis of how each system supports the agency's strategic plan under Subchapter E (Strategic and Operating Plans; Information), and confirmation by the agency of compliance with state statutes, rules, and standards relating to information resources and AI systems, including the AI system code of ethics developed under Section 2054.702, and minimum standards developed under Section 2054.703. Makes nonsubstantive changes. (c) Requires local governments to complete a review of the deployment and use of a heightened scrutiny AI system and provide the review to DIR, in a manner described by DIR. SECTION 4. Amends Section 2054.137, Government Code, by adding Subsection (a-1) and amending Subsection (c), as follows: (a-1) Authorizes a state agency with 150 or few full-time employees to designate a full-time employee of the agency to serve as a data management officer or enter into an agreement with another state agency or agencies to jointly employ a data management officer if approved by DIR. (c) Requires the data management officer for a state agency, in accordance with DIR guidelines, to annually post on the Texas Open Data Portal established by DIR under Section 2054.070 (Central Repository for Publicly Accessible Electronic Data) at least three high-value data sets as defined by Section 2054.1265 (Posting High-Value Data Sets on Internet). SECTION 5. Amends Chapter 2054, Government Code, by adding Subchapter S, as follows: SUBCHAPTER S. ARTIFICIAL INTELLIGENCE Sec. 2054.701. DEFINITION. Defines "unlawful harm." Sec. 2054.702. ARTIFICIAL INTELLIGENCE SYSTEM CODE OF ETHICS. (a) Requires DIR by rule to establish an AI system code of ethics for use by state agencies and local governments that procure, develop, deploy, or use a heightened scrutiny AI system. (b) Requires that, at a minimum, the AI system code of ethics include certain principles for state agencies to guide the adoption of heightened scrutiny AI systems and that align with the National Institute of Standards and Technology's Artificial Intelligence Risk Management Framework. Sec. 2054.703. MINIMUM STANDARDS FOR HEIGHTENED SCRUTINY ARTIFICIAL INTELLIGENCE SYSTEMS. (a) Requires DIR by rule to develop minimum risk management and governance standards for the development, procurement, deployment, and use of heightened scrutiny AI systems by a state agency or local government. (b) Requires that the minimum standards be consistent with the AI Risk Management Framework (AI RMF 1.0) published by the National Institute of Standards and Technology and that they include certain provisions. (c) Requires state agencies and local governments to both adopt the code of ethics developed under Section 2054.702 and the standards developed under Subsection (b). Sec. 2054.704. EDUCATIONAL OUTREACH PROGRAM. (a) Requires DIR to develop educational materials on AI systems to promote the responsible use of the systems and awareness of the risks and benefits of system use, explain consumer rights in relation to the systems, and describe risk mitigation techniques. (b) Requires DIR to develop training materials for state and local government employees and the general public. Requires that the training materials be made available on DIR's public Internet website. (c) Require DIR to host statewide forums and training sessions on AI systems best practices for state and local government employees. (d) Authorizes DIR to use money appropriated to DIR to produce materials required by this section and contract with a vendor to produce those materials. Sec. 2054.705. PUBLIC SECTOR ARTIFICIAL INTELLIGENCE SYSTEMS ADVISORY BOARD. (a) Provides that a public sector AI systems advisory board (advisory board) is established to assist state agencies in the development, deployment, and use of AI systems. (b) Requires the advisory board to obtain and disseminate information on AI systems, including use cases, policies, and guidelines, facilitate shared resources between state agencies, and consult with DIR on AI systems issues. (c) Requires DIR to provide administrative support for the advisory board. (d) Provides that the advisory board is composed of eight members, including six members representing state agencies, one member representing an agency with fewer than 150 employees, appointed by the governor, and two public members, appointed by the governor or the governor's designee, with technology expertise. (e) Provides that advisory board members serve two-year terms. Authorizes advisory board members to be reappointed. (f) Provides that advisory board members are not entitled to compensation or reimbursement of expenses for service on the advisory board. (g) Requires the advisory to direct state agencies to identify opportunities to implement AI solutions that reduce administrative burdens, recommend the elimination of regulations that unnecessarily restrict AI innovation, and identify opportunities to streamline procurement processes to enable AI adoption. Sec. 2054.706. ARTIFICIAL INTELLIGENCE SYSTEM SANDBOX PROGRAM. (a) Defines "eligible entity," "program" and "vendor." (b) Requires DIR to establish and administer a program to support eligible entities in contracting with vendors to engage in research, development, training, testing, and other pre-deployment activities related to AI systems to effectively, efficiently, and securely assist the entity in accomplishing its public purposes. (c) Requires DIR to create an application process for vendors to apply to participate in the program. Requires that the application process include a detailed description of the AI system proposed for participation in the program and the system's intended use, a risk-assessment of the system that addresses potential impacts on the public, and a plan for mitigating any adverse consequences discovered during the system's testing phase. (d) Requires a vendor participating in the program to, with oversight by DIR, provide eligible entities with secure access to an AI system used in the program. (e) Requires DIR to provide to vendors and eligible entities participating in the program detailed guidelines regarding the exemption from compliance with otherwise applicable regulations provided by the program. (f) Requires the eligible entities and vendors to submit quarterly reports to DIR that include performance measures for the AI system, risk mitigation strategies implemented during system testing, feedback on program effectiveness and efficiency, and any additional information DIR requests. (g) Requires DIR, not later than November 30 of each even-numbered year, to produce an annual report and submit the report to the legislature summarizing the number of eligible entities and vendors participating in the program and the program outcomes and recommendations for legislative or other action. (h) Authorizes DIR, notwithstanding Section 2054.383 (Establishment of Additional Statewide Technology Centers), to operate the program as a statewide technology center under Subchapter L (Statewide Technology Centers). Sec. 2054.707. DISCLOSURE REQUIREMENTS. (a) Requires a state agency that procures, develops, deploys, or uses an AI system to provide clear disclosure of the system to the public as provided by the AI system code of ethics established under Section 2054.702. (b) Requires a vendor contracting with a state agency to deploy or operate an AI system to also provide the disclosure required under Subsection (a). Sec. 2054.708. IMPACT ASSESSMENTS. (a) Requires a state agency that deploys or uses an AI system or a vendor that contracts with a state agency for the deployment or use of a system to conduct a semiannual system assessment that outlines risks of unlawful harm, system limitations and information governance practices. (b) Requires the state agency or vendor to submit make available a copy of the assessment to DIR upon request. (c) Provides that the impact assessments created under this section are confidential and not subject to disclosure under Chapter 552 (Public Information). Authorizes the state agency or DIR to redact or withhold the information as confidential under Chapter 552 without requesting a decision from the attorney general under Subchapter G (Attorney General Decisions), Chapter 552. (d) Requires DIR to take all necessary steps to ensure the confidentiality of submitted information, including but not limited to, restricting access to submitted information to authorized personnel only and implementing physical, electronic, and procedural safeguards to protect submitted information. Sec. 2054.710. ENFORCEMENT. (a) Requires a state agency or vendor, if the agency or vendor is made aware that a violation of this subchapter has occurred, to report the violation to DIR, if applicable, and the attorney general. (b) Requires the attorney general to review a report submitted under this section or a complaint reported through the webpage established under Section 2054.711, and determine whether to bring an action to enjoin a violation of this subchapter. (c) Requires the attorney general, if the attorney general determines that a vendor violated this subchapter, to provide the vendor with a written notice of the violation. Requires the vendor to have 30 days from the date of the notice to cure the violation. (d) Authorizes the state agency, if the vendor fails to cure the violation within the 30-day period specific in Subsection (c), to void the contract without further obligation to the vendor. Requires the state agency to provide the vendor with a 30-day notice of its intent to void the contract, during which time the vendor is authorized to address any remaining issues to the satisfaction of the state agency. (e) Authorizes the state agency, if the vendor does not satisfactorily address the issues within the 30-day notice period specified in Subsection (d), to void the contract without further obligation to the vendor. (d) Requires DIR, if DIR determines that a vendor has had more than one contract voided under Subsection (c), to refer the matter to the Comptroller of Public Accounts of the State of Texas (comptroller). Authorizes the comptroller, using procedures prescribed by Section 2155.077 (Barring Vendor from Participation in State Contracts), to bar the vendor from participating in a state agency contract. Sec. 2054.711. ARTIFICIAL INTELLIGENCE SYSTEM COMPLAINT WEBPAGE. (a) Requires the attorney general, in collaboration with DIR, to establish a webpage on the attorney general's Internet website that allows a person to report a complaint relating to artificial intelligence systems, including instances of an AI system allegedly unlawfully infringing on the person's constitutional rights or financial livelihood or the use of an AI system that allegedly results in unlawful harm. (b) Requires that a complaint submitted on the webpage created under Subsection (a) be distributed to DIR. (c) Authorizes a person who submits a complaint on the webpage created under Subsection (a) to request from DIR an explanation as provided by Section 2054.702(b)(1)(D). (d) Requires the attorney general to post on the attorney general's Internet website information that educates persons regarding the risks and benefits of AI systems and explains a person's rights in relation to AI systems. (e) Requires the attorney general, not later than November 30 of each even-numbered year, to submit to the legislature a report summarizing the complaints received under this section, the resolutions of the complaints, and any enforcement actions taken. Sec. 2054.712. STANDARDIZED NOTICE. (a) Requires each state agency and local government that deploys or uses an AI system that the public directly accesses or that is a controlling factor in any decision that has a material legal or similarly significant effect on the provision, denial, or conditions of a person's access to a government service to include a standardized notice on all related applications, Internet websites, and public computer systems. (b) Requires DIR to develop a form that agencies are required to use for the notice required under Subsection (a). Requires that the form include general information about the system, information about the data sources the system uses and measures taken to maintain compliance with information privacy laws and ethics standards. Sec. 2054.713. RULES. Requires DIR to adopt rules to implement this subchapter. SECTION 6. (a) Requires DIR, as soon as practicable after the effective date of this Act, to adopt rules necessary to implement Subchapter S, Chapter 2054 (Information Resources), Government Code, as added by this Act, and develop the outreach program and form required by Sections 2054.704 and 2054.712, Government Code, as added by this Act. (b) Requires the Office of the Attorney General, as soon as practicable after the effective date of this Act, to establish the webpage as required by Section 2054.711, Government Code, as added by this Act. SECTION 7. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1964
By: Parker
Business & Commerce
4/2/2025
As Filed
Senate Research Center
S.B. 1964
By: Parker
Business & Commerce
4/2/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
As artificial intelligence (AI) technologies rapidly evolve, state and local governments increasingly rely on automated tools to deliver services, make decisions that affect individuals, and optimize internal processes. However, existing laws do not sufficiently address the complex issues of transparency, accountability, and the protection of individual rights arising from government use of AI systems.
S.B. 1964 seeks to create a clear, enforceable framework for the procurement, development, and deployment of AI systems by government agencies in Texas. By mandating compliance with a code of ethics and minimum standards aligned with the National Institute of Standards and Technology's AI Risk Management Framework, the bill promotes responsible AI use and mitigates risks posed by automated decision-making. It empowers the Department of Information Resources to provide guidance, develop training and educational programs, and conduct statewide oversight, ensuring that new AI technologies are vetted for fairness, transparency, and security before being implemented. The inclusion of an advisory board, sandbox program, and complaint webpage fosters collaboration, public input, and accountability, while the bill's enforcement mechanisms, including contract-voiding provisions and referral to the Comptroller of Public Accounts, help guarantee adherence to these standards. Overall, the proposed regulatory structure seeks to increase government efficiency, safeguard individual rights, improve public trust in AI-driven processes, and uphold ethical and legal standards in Texas government operations.
As proposed, S.B. 1964 amends current law relating to the regulation and use of artificial intelligence systems and the management of data by governmental entities.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Department of Information Resources in SECTION 5 (Sections 2054.702, 2054.703, and 2054.713, Government Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2054.003, Government Code, by adding Subdivisions (1-a), (2-b), (6-a), and (6-b) to define "artificial intelligence system," "controlling factor," "heightened scrutiny artificial intelligence system," and "principal basis."
SECTION 2. Amends Section 2054.068(b), Government Code to require the Texas Department of Information Resources (DIR) to collect from each state agency information on the status and condition of the agency's information technology infrastructure, including information regarding an inventory of the agency's servers, mainframes, cloud services, artificial intelligence (AI) systems, including heightened scrutiny artificial intelligence systems, and other information technology equipment.
SECTION 3. Amends Section 2054.0965, Government Code, by amending Subsection (b) and adding Subsection (c), as follows:
(b) Requires that the review completed by a state agency of the operational aspects of the agency's information resources deployment, except as otherwise modified by rules adopted by DIR, include certain information, including an inventory and identification of the AI systems and heightened scrutiny AI systems deployed by the agency, including an evaluation of the purpose of and risk mitigation measures for each system and an analysis of how each system supports the agency's strategic plan under Subchapter E (Strategic and Operating Plans; Information), and confirmation by the agency of compliance with state statutes, rules, and standards relating to information resources and AI systems, including the AI system code of ethics developed under Section 2054.702, and minimum standards developed under Section 2054.703. Makes nonsubstantive changes.
(c) Requires local governments to complete a review of the deployment and use of a heightened scrutiny AI system and provide the review to DIR, in a manner described by DIR.
SECTION 4. Amends Section 2054.137, Government Code, by adding Subsection (a-1) and amending Subsection (c), as follows:
(a-1) Authorizes a state agency with 150 or few full-time employees to designate a full-time employee of the agency to serve as a data management officer or enter into an agreement with another state agency or agencies to jointly employ a data management officer if approved by DIR.
(c) Requires the data management officer for a state agency, in accordance with DIR guidelines, to annually post on the Texas Open Data Portal established by DIR under Section 2054.070 (Central Repository for Publicly Accessible Electronic Data) at least three high-value data sets as defined by Section 2054.1265 (Posting High-Value Data Sets on Internet).
SECTION 5. Amends Chapter 2054, Government Code, by adding Subchapter S, as follows:
SUBCHAPTER S. ARTIFICIAL INTELLIGENCE
Sec. 2054.701. DEFINITION. Defines "unlawful harm."
Sec. 2054.702. ARTIFICIAL INTELLIGENCE SYSTEM CODE OF ETHICS. (a) Requires DIR by rule to establish an AI system code of ethics for use by state agencies and local governments that procure, develop, deploy, or use a heightened scrutiny AI system.
(b) Requires that, at a minimum, the AI system code of ethics include certain principles for state agencies to guide the adoption of heightened scrutiny AI systems and that align with the National Institute of Standards and Technology's Artificial Intelligence Risk Management Framework.
Sec. 2054.703. MINIMUM STANDARDS FOR HEIGHTENED SCRUTINY ARTIFICIAL INTELLIGENCE SYSTEMS. (a) Requires DIR by rule to develop minimum risk management and governance standards for the development, procurement, deployment, and use of heightened scrutiny AI systems by a state agency or local government.
(b) Requires that the minimum standards be consistent with the AI Risk Management Framework (AI RMF 1.0) published by the National Institute of Standards and Technology and that they include certain provisions.
(c) Requires state agencies and local governments to both adopt the code of ethics developed under Section 2054.702 and the standards developed under Subsection (b).
Sec. 2054.704. EDUCATIONAL OUTREACH PROGRAM. (a) Requires DIR to develop educational materials on AI systems to promote the responsible use of the systems and awareness of the risks and benefits of system use, explain consumer rights in relation to the systems, and describe risk mitigation techniques.
(b) Requires DIR to develop training materials for state and local government employees and the general public. Requires that the training materials be made available on DIR's public Internet website.
(c) Require DIR to host statewide forums and training sessions on AI systems best practices for state and local government employees.
(d) Authorizes DIR to use money appropriated to DIR to produce materials required by this section and contract with a vendor to produce those materials.
Sec. 2054.705. PUBLIC SECTOR ARTIFICIAL INTELLIGENCE SYSTEMS ADVISORY BOARD. (a) Provides that a public sector AI systems advisory board (advisory board) is established to assist state agencies in the development, deployment, and use of AI systems.
(b) Requires the advisory board to obtain and disseminate information on AI systems, including use cases, policies, and guidelines, facilitate shared resources between state agencies, and consult with DIR on AI systems issues.
(c) Requires DIR to provide administrative support for the advisory board.
(d) Provides that the advisory board is composed of eight members, including six members representing state agencies, one member representing an agency with fewer than 150 employees, appointed by the governor, and two public members, appointed by the governor or the governor's designee, with technology expertise.
(e) Provides that advisory board members serve two-year terms. Authorizes advisory board members to be reappointed.
(f) Provides that advisory board members are not entitled to compensation or reimbursement of expenses for service on the advisory board.
(g) Requires the advisory to direct state agencies to identify opportunities to implement AI solutions that reduce administrative burdens, recommend the elimination of regulations that unnecessarily restrict AI innovation, and identify opportunities to streamline procurement processes to enable AI adoption.
Sec. 2054.706. ARTIFICIAL INTELLIGENCE SYSTEM SANDBOX PROGRAM. (a) Defines "eligible entity," "program" and "vendor."
(b) Requires DIR to establish and administer a program to support eligible entities in contracting with vendors to engage in research, development, training, testing, and other pre-deployment activities related to AI systems to effectively, efficiently, and securely assist the entity in accomplishing its public purposes.
(c) Requires DIR to create an application process for vendors to apply to participate in the program. Requires that the application process include a detailed description of the AI system proposed for participation in the program and the system's intended use, a risk-assessment of the system that addresses potential impacts on the public, and a plan for mitigating any adverse consequences discovered during the system's testing phase.
(d) Requires a vendor participating in the program to, with oversight by DIR, provide eligible entities with secure access to an AI system used in the program.
(e) Requires DIR to provide to vendors and eligible entities participating in the program detailed guidelines regarding the exemption from compliance with otherwise applicable regulations provided by the program.
(f) Requires the eligible entities and vendors to submit quarterly reports to DIR that include performance measures for the AI system, risk mitigation strategies implemented during system testing, feedback on program effectiveness and efficiency, and any additional information DIR requests.
(g) Requires DIR, not later than November 30 of each even-numbered year, to produce an annual report and submit the report to the legislature summarizing the number of eligible entities and vendors participating in the program and the program outcomes and recommendations for legislative or other action.
(h) Authorizes DIR, notwithstanding Section 2054.383 (Establishment of Additional Statewide Technology Centers), to operate the program as a statewide technology center under Subchapter L (Statewide Technology Centers).
Sec. 2054.707. DISCLOSURE REQUIREMENTS. (a) Requires a state agency that procures, develops, deploys, or uses an AI system to provide clear disclosure of the system to the public as provided by the AI system code of ethics established under Section 2054.702.
(b) Requires a vendor contracting with a state agency to deploy or operate an AI system to also provide the disclosure required under Subsection (a).
Sec. 2054.708. IMPACT ASSESSMENTS. (a) Requires a state agency that deploys or uses an AI system or a vendor that contracts with a state agency for the deployment or use of a system to conduct a semiannual system assessment that outlines risks of unlawful harm, system limitations and information governance practices.
(b) Requires the state agency or vendor to submit make available a copy of the assessment to DIR upon request.
(c) Provides that the impact assessments created under this section are confidential and not subject to disclosure under Chapter 552 (Public Information). Authorizes the state agency or DIR to redact or withhold the information as confidential under Chapter 552 without requesting a decision from the attorney general under Subchapter G (Attorney General Decisions), Chapter 552.
(d) Requires DIR to take all necessary steps to ensure the confidentiality of submitted information, including but not limited to, restricting access to submitted information to authorized personnel only and implementing physical, electronic, and procedural safeguards to protect submitted information.
Sec. 2054.710. ENFORCEMENT. (a) Requires a state agency or vendor, if the agency or vendor is made aware that a violation of this subchapter has occurred, to report the violation to DIR, if applicable, and the attorney general.
(b) Requires the attorney general to review a report submitted under this section or a complaint reported through the webpage established under Section 2054.711, and determine whether to bring an action to enjoin a violation of this subchapter.
(c) Requires the attorney general, if the attorney general determines that a vendor violated this subchapter, to provide the vendor with a written notice of the violation. Requires the vendor to have 30 days from the date of the notice to cure the violation.
(d) Authorizes the state agency, if the vendor fails to cure the violation within the 30-day period specific in Subsection (c), to void the contract without further obligation to the vendor. Requires the state agency to provide the vendor with a 30-day notice of its intent to void the contract, during which time the vendor is authorized to address any remaining issues to the satisfaction of the state agency.
(e) Authorizes the state agency, if the vendor does not satisfactorily address the issues within the 30-day notice period specified in Subsection (d), to void the contract without further obligation to the vendor.
(d) Requires DIR, if DIR determines that a vendor has had more than one contract voided under Subsection (c), to refer the matter to the Comptroller of Public Accounts of the State of Texas (comptroller). Authorizes the comptroller, using procedures prescribed by Section 2155.077 (Barring Vendor from Participation in State Contracts), to bar the vendor from participating in a state agency contract.
Sec. 2054.711. ARTIFICIAL INTELLIGENCE SYSTEM COMPLAINT WEBPAGE. (a) Requires the attorney general, in collaboration with DIR, to establish a webpage on the attorney general's Internet website that allows a person to report a complaint relating to artificial intelligence systems, including instances of an AI system allegedly unlawfully infringing on the person's constitutional rights or financial livelihood or the use of an AI system that allegedly results in unlawful harm.
(b) Requires that a complaint submitted on the webpage created under Subsection (a) be distributed to DIR.
(c) Authorizes a person who submits a complaint on the webpage created under Subsection (a) to request from DIR an explanation as provided by Section 2054.702(b)(1)(D).
(d) Requires the attorney general to post on the attorney general's Internet website information that educates persons regarding the risks and benefits of AI systems and explains a person's rights in relation to AI systems.
(e) Requires the attorney general, not later than November 30 of each even-numbered year, to submit to the legislature a report summarizing the complaints received under this section, the resolutions of the complaints, and any enforcement actions taken.
Sec. 2054.712. STANDARDIZED NOTICE. (a) Requires each state agency and local government that deploys or uses an AI system that the public directly accesses or that is a controlling factor in any decision that has a material legal or similarly significant effect on the provision, denial, or conditions of a person's access to a government service to include a standardized notice on all related applications, Internet websites, and public computer systems.
(b) Requires DIR to develop a form that agencies are required to use for the notice required under Subsection (a). Requires that the form include general information about the system, information about the data sources the system uses and measures taken to maintain compliance with information privacy laws and ethics standards.
Sec. 2054.713. RULES. Requires DIR to adopt rules to implement this subchapter.
SECTION 6. (a) Requires DIR, as soon as practicable after the effective date of this Act, to adopt rules necessary to implement Subchapter S, Chapter 2054 (Information Resources), Government Code, as added by this Act, and develop the outreach program and form required by Sections 2054.704 and 2054.712, Government Code, as added by this Act.
(b) Requires the Office of the Attorney General, as soon as practicable after the effective date of this Act, to establish the webpage as required by Section 2054.711, Government Code, as added by this Act.
SECTION 7. Effective date: September 1, 2025.