| 7 | 5 | | |
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| 8 | 6 | | |
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| 9 | 7 | | A BILL TO BE ENTITLED |
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| 10 | 8 | | AN ACT |
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| 11 | 9 | | relating to the disclosure of information with regard to artificial |
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| 12 | 10 | | intelligence. |
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| 13 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 12 | | SECTION 1. Title 99, Business & Commerce Code, is amended by |
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| 15 | 13 | | adding Chapter 2003 to read as follows: |
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| 16 | 14 | | CHAPTER 2003. DISCLOSURES RELATED TO ARTIFICIAL INTELLIGENCE |
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| 17 | 15 | | Sec. 2003.001. DEFINITION. In this chapter, "artificial |
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| 18 | 16 | | intelligence" means a machine-based system that: |
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| 19 | 17 | | (1) when given a set of objectives by an individual, |
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| 20 | 18 | | makes predictions, recommendations, or decisions that influence a |
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| 21 | 19 | | real or virtual environment; and |
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| 22 | 20 | | (2) uses inputs from an individual or machine to: |
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| 23 | 21 | | (A) perceive or interpret a real or virtual |
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| 24 | 22 | | environment; |
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| 25 | 23 | | (B) use automation to analyze a perception or |
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| 26 | 24 | | interpretation of a real or virtual environment; or |
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| 27 | 25 | | (C) use models to infer or form opinions on |
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| 28 | 26 | | information or a proposed action. |
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| 29 | 27 | | Sec. 2003.002. APPLICABILITY OF CHAPTER. (a) This chapter |
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| 30 | 28 | | applies only to a person who: |
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| 31 | 29 | | (1) uses artificial intelligence to provide services |
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| 32 | 30 | | to an individual in this state, including: |
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| 33 | 31 | | (A) answering questions; |
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| 34 | 32 | | (B) gathering information; |
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| 35 | 33 | | (C) summarizing information; |
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| 36 | 34 | | (D) generating textual, audio, or visual |
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| 37 | 35 | | material; or |
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| 38 | 36 | | (E) providing information to be used in |
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| 39 | 37 | | connection with a lending, underwriting, risk assessment, |
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| 40 | 38 | | investing, or hiring decision; and |
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| 41 | 39 | | (2) generated, or is more than 25 percent owned by a |
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| 42 | 40 | | person who generated, at least $100 billion in total revenue, |
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| 43 | 41 | | including revenue generated by subsidiaries, according to |
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| 44 | 42 | | generally accepted accounting principles. |
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| 45 | 43 | | (b) Artificial intelligence is considered to be used to |
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| 46 | 44 | | provide a service to an individual under Subsection (a)(1) |
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| 47 | 45 | | regardless of whether the individual can directly access the |
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| 48 | 46 | | artificial intelligence. |
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| 49 | 47 | | Sec. 2003.003. DUTY TO DISCLOSE ARTIFICIAL INTELLIGENCE |
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| 50 | 48 | | INFORMATION. (a) A person regulated by this chapter shall |
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| 51 | 49 | | disclose, on the person's Internet website or in another location |
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| 52 | 50 | | electronically accessible by an individual in this state: |
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| 53 | 51 | | (1) the name of each artificial intelligence model |
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| 54 | 52 | | used by the person; |
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| 55 | 53 | | (2) a brief description of the functions and purposes |
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| 56 | 54 | | of each model disclosed under Subdivision (1); |
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| 57 | 55 | | (3) to the best of the person's knowledge and belief, |
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| 58 | 56 | | the name of each public or private third party that has provided |
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| 59 | 57 | | input on an artificial intelligence model that the person has |
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| 60 | 58 | | implemented; |
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| 61 | 59 | | (4) a description of the specific input provided by |
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| 62 | 60 | | each third party disclosed under Subdivision (3); and |
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| 63 | 61 | | (5) any changes made to an artificial intelligence |
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| 64 | 62 | | model based on input provided by a third party disclosed under |
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| 65 | 63 | | Subdivision (3). |
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| 66 | 64 | | (b) An individual who uses a service described by Section |
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| 67 | 65 | | 2003.002(a)(1) who provides input on an artificial intelligence |
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| 68 | 66 | | model is not considered a third party for purposes of this section |
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| 69 | 67 | | if the individual's input was provided: |
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| 70 | 68 | | (1) in the individual's personal capacity; and |
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| 71 | 69 | | (2) based on the individual's own experience as a user |
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| 72 | 70 | | of that service. |
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| 73 | 71 | | Sec. 2003.004. DISCRIMINATION AND RETALIATION PROHIBITED. |
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| 74 | 72 | | A person may not discipline, retaliate against, or otherwise |
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| 75 | 73 | | discriminate against an individual who in good faith reports a |
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| 76 | 74 | | suspected violation of this chapter to the attorney general or any |
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| 77 | 75 | | other appropriate authority. |
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| 78 | 76 | | Sec. 2003.005. COOPERATION WITH ATTORNEY GENERAL. A person |
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| 79 | 77 | | shall allow the attorney general to access the records of the person |
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| 80 | 78 | | to the extent necessary to ensure the person is in substantial |
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| 81 | 79 | | compliance with this chapter. |
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| 82 | 80 | | Sec. 2003.006. ENFORCEMENT. (a) A violation of this |
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| 83 | 81 | | chapter is a deceptive trade practice under Subchapter E, Chapter |
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| 84 | 82 | | 17, and is actionable under that subchapter. |
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| 85 | 83 | | (b) The attorney general may issue reports to the governor, |
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| 86 | 84 | | the legislature, or any other federal, state, or local government |
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| 87 | 85 | | official regarding any information obtained investigating a person |
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| 88 | 86 | | under this chapter or enforcing a provision of this chapter. |
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| 89 | 87 | | (c) A report under Subsection (b) may be public or |
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| 90 | 88 | | confidential. |
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| 91 | 89 | | (d) The remedies under this section are cumulative of other |
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| 92 | 90 | | remedies provided by law. |
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| 93 | 91 | | SECTION 2. This Act takes effect September 1, 2025. |
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