89R16156 LRM-D By: Menéndez S.B. No. 2473 A BILL TO BE ENTITLED AN ACT relating to the use of an automated employment decision tool by a state agency to assess a job applicant's fitness for a position. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 656, Government Code, is amended by adding Subchapter E to read as follows: SUBCHAPTER E. PROVISIONS REGARDING JOB APPLICANT SCREENING; USE OF AUTOMATED EMPLOYMENT DECISION TOOL Sec. 656.201. DEFINITIONS. In this subchapter: (1) "Algorithm" means a computerized procedure consisting of a set of steps used to accomplish a determined task. (2) "Applicant" means a person applying for a job offered by a state agency. (3) "Artificial intelligence system" means a system 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. (4) "Automated employment decision tool" means a computational process or software application that uses algorithms, machine learning, statistical modeling, data analytics, or an artificial intelligence system to assess an applicant's fitness for a position. (5) "State agency" has the meaning assigned by Section 656.021. Sec. 656.202. USE OF AUTOMATED EMPLOYMENT DECISION TOOL. A state agency may not use or deploy an automated employment decision tool in violation of this subchapter. Sec. 656.203. DISCLOSURE REQUIRED. A state agency may not use an automated employment decision tool in regard to an applicant unless the state agency: (1) notifies the applicant that an automated employment decision tool may be used to assess the applicant's fitness for the position; and (2) provides the applicant with information describing how the automated employment decision tool will be used to assess the applicant's fitness for the position, including what characteristics may be evaluated for that purpose. Sec. 656.204. DISCRIMINATION PROHIBITED. A state agency shall take measures to mitigate biases in any automated employment decision tool used or deployed by the state agency to ensure the tool does not discriminate on the basis of a state or federal protected class in violation of law. SECTION 2. This Act takes effect September 1, 2025.