TexasSB 196489th Legislature Regular SessionSenate

Relating to the regulation and use of artificial intelligence systems and the management of data by governmental entities.

Sponsored By: Giovanni Capriglione, Tan Parker (Republican)

Signed by Governor

Artificial IntelligenceCity Government--GeneralCounty Government--GeneralEthicsGovernorPurchasing--StateState Agencies, Boards & Commissions--Admin. ProcedureState Agencies, Boards & Commissions--Newly ProposedState Finances--Management & ControlPUBLIC NOTICESTAFF DEVELOPMENT & TRAININGATTORNEY GENERALINFORMATION RESOURCES, DEPARTMENT OFPUBLIC SECTOR ARTIFICIAL INTELLIGENCE SYSTEMS ADVISORY BOARD

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 0 costs, 2 mixed.

AI violations can end state contracts

Beginning September 1, 2025, agencies and vendors must report known violations to the attorney general and, when applicable, the department. The attorney general must confirm a vendor violation after consulting the department before issuing written notice. Vendors have until the 31st day after receiving that notice to respond or cure before an agency issues notice of intent to void. Vendors then have until the 31st day after receiving the intent notice to respond and seek to cure. If the violation remains uncured by that deadline, the agency may void the contract without further obligation. After more than one contract is voided through this process, the department must refer the vendor to the comptroller, who may bar state contracts.

New board guides state agency AI

Beginning September 1, 2025, a new board helps Texas agencies develop, deploy, and use artificial intelligence (AI). It shares information and resources, advises the Department of Information Resources, and identifies ways to streamline work and purchasing. It also recommends removing rules that unduly restrict AI innovation. The governor or designee appoints six agency representatives and two public technology experts; one agency representative must come from an agency with fewer than 150 employees. Members serve two-year terms, may be reappointed, and receive no pay or expense reimbursement; the department provides administrative support.

Government must disclose covered AI use

Beginning September 1, 2025, Texas state agencies must clearly disclose public-facing AI interactions unless a reasonable person already knows it is AI. State and local governments must also put standard notices on related applications, websites, and public computer systems. This notice covers public-facing AI and AI that is a controlling factor in an important decision about someone. The department develops the notice, which describes the system, data sources, and steps to meet privacy laws and ethics standards. Academic medical centers, state-owned or public hospitals, and hospital districts may instead put a general AI treatment statement in patient consent forms.

People can report AI harms online

Beginning September 1, 2025, the attorney general must work with the department to create an AI complaint webpage. Complaints can allege unlawful interference with constitutional rights or financial livelihood, or unlawful harm from AI. The page must explain AI risks, benefits, and individual rights; the attorney general must send complaints to the department. People who complain can request an explanation from the department. The attorney general may pursue enforcement after consulting the department and finding both a supported complaint and an AI-law violation.

Government AI testing gets limited exemptions

Beginning September 1, 2025, the Department of Information Resources must run a program supporting eligible entities contracting with AI vendors. It covers research, development, training, testing, and other work before deployment. Temporary, controlled testing can proceed without full compliance with otherwise applicable regulations. Vendors must apply, explain intended uses, assess public impacts, plan to reduce harm, and provide secure access under department oversight. Vendors and participating entities must report quarterly; the department reports to lawmakers by November 30 of each even-numbered year.

State AI risk reviews stay confidential

Beginning September 1, 2025, state agencies and their contractors must assess AI systems subject to heightened scrutiny that they deploy or use. Reviews must cover risks of unlawful harm, system limits, and how information is managed. Unlawful harm concerns AI-driven decisions that harm people in classes protected by state or federal law. Agencies and vendors must provide reviews to the Department of Information Resources on request. The reviews are confidential, exempt from public disclosure, and must be protected by the department.

Sponsors & Cosponsors

Sponsors

  • Giovanni Capriglione

    House

  • Tan Parker

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 275 • No: 30

Senate vote • 5/30/2025

Record vote

Yes: 30 • No: 1

House vote • 5/28/2025

Record vote

Yes: 104 • No: 6

House vote • 5/27/2025

Record vote

Yes: 119 • No: 23

Senate vote • 4/28/2025

Record vote

Yes: 0 • No: 0

Senate vote • 4/28/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Delivery of Government Efficiency

Yes: 11 • No: 0

Senate vote • Unknown

Committee vote: Business & Commerce

Yes: 11 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House
  2. Signed by the Governor

    6/20/2025House
  3. Sent to the Governor

    6/3/2025House
  4. Signed in the House

    6/2/2025House
  5. Signed in the Senate

    6/2/2025Senate
  6. Reported enrolled

    6/2/2025Senate
  7. House adopts resolution for tech. correction (SCR 55)

    6/2/2025House
  8. Senate adopts resolution for tech. correction (SCR 55)

    6/1/2025Senate
  9. Senate concurs in House amendment(s)-reported

    5/31/2025House
  10. Record vote

    5/30/2025Senate
  11. Senate concurs in House amendment(s)

    5/30/2025Senate
  12. Read

    5/30/2025Senate
  13. House amendment(s) laid before the Senate

    5/30/2025Senate
  14. House passage as amended reported

    5/28/2025Senate
  15. Statement(s) of vote recorded in Journal

    5/28/2025House
  16. Record vote (RV#3940)

    5/28/2025House
  17. Passed as amended

    5/28/2025House
  18. Amended (1-Capriglione)

    5/28/2025House
  19. Laid out as postponed business

    5/28/2025House
  20. Postponed (5/28/25 3:15 PM)

    5/28/2025House
  21. Read 3rd time

    5/28/2025House
  22. Statement(s) of vote recorded in Journal

    5/27/2025House
  23. Record vote (RV#3790)

    5/27/2025House
  24. Passed to 3rd reading as amended

    5/27/2025House
  25. Amended (2-Capriglione)

    5/27/2025House

Bill Text

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