By: Hughes S.B. No. 668
(In the Senate - Filed December 19, 2024; February 3, 2025,
read first time and referred to Committee on Business & Commerce;
April 9, 2025, reported favorably by the following vote: Yeas 10,
Nays 0; April 9, 2025, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of information with regard to artificial
intelligence.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 99, Business & Commerce Code, is amended by
adding Chapter 2003 to read as follows:
CHAPTER 2003. DISCLOSURES RELATED TO ARTIFICIAL INTELLIGENCE
Sec. 2003.001. DEFINITION. In this chapter, "artificial
intelligence" means a machine-based system that:
(1) when given a set of objectives by an individual,
makes predictions, recommendations, or decisions that influence a
real or virtual environment; and
(2) uses inputs from an individual or machine to:
(A) perceive or interpret a real or virtual
environment;
(B) use automation to analyze a perception or
interpretation of a real or virtual environment; or
(C) use models to infer or form opinions on
information or a proposed action.
Sec. 2003.002. APPLICABILITY OF CHAPTER. (a) This chapter
applies only to a person who:
(1) uses artificial intelligence to provide services
to an individual in this state, including:
(A) answering questions;
(B) gathering information;
(C) summarizing information;
(D) generating textual, audio, or visual
material; or
(E) providing information to be used in
connection with a lending, underwriting, risk assessment,
investing, or hiring decision; and
(2) generated, or is more than 25 percent owned by a
person who generated, at least $100 billion in total revenue,
including revenue generated by subsidiaries, according to
generally accepted accounting principles.
(b) Artificial intelligence is considered to be used to
provide a service to an individual under Subsection (a)(1)
regardless of whether the individual can directly access the
artificial intelligence.
Sec. 2003.003. DUTY TO DISCLOSE ARTIFICIAL INTELLIGENCE
INFORMATION. (a) A person regulated by this chapter shall
disclose, on the person's Internet website or in another location
electronically accessible by an individual in this state:
(1) the name of each artificial intelligence model
used by the person;
(2) a brief description of the functions and purposes
of each model disclosed under Subdivision (1);
(3) to the best of the person's knowledge and belief,
the name of each public or private third party that has provided
input on an artificial intelligence model that the person has
implemented;
(4) a description of the specific input provided by
each third party disclosed under Subdivision (3); and
(5) any changes made to an artificial intelligence
model based on input provided by a third party disclosed under
Subdivision (3).
(b) An individual who uses a service described by Section
2003.002(a)(1) who provides input on an artificial intelligence
model is not considered a third party for purposes of this section
if the individual's input was provided:
(1) in the individual's personal capacity; and
(2) based on the individual's own experience as a user
of that service.
Sec. 2003.004. DISCRIMINATION AND RETALIATION PROHIBITED.
A person may not discipline, retaliate against, or otherwise
discriminate against an individual who in good faith reports a
suspected violation of this chapter to the attorney general or any
other appropriate authority.
Sec. 2003.005. COOPERATION WITH ATTORNEY GENERAL. A person
shall allow the attorney general to access the records of the person
to the extent necessary to ensure the person is in substantial
compliance with this chapter.
Sec. 2003.006. ENFORCEMENT. (a) A violation of this
chapter is a deceptive trade practice under Subchapter E, Chapter
17, and is actionable under that subchapter.
(b) The attorney general may issue reports to the governor,
the legislature, or any other federal, state, or local government
official regarding any information obtained investigating a person
under this chapter or enforcing a provision of this chapter.
(c) A report under Subsection (b) may be public or
confidential.
(d) The remedies under this section are cumulative of other
remedies provided by law.
SECTION 2. This Act takes effect September 1, 2025.
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