Title BC, Business and Commerce Code

Sec. 553.051. ESTABLISHMENT OF SANDBOX PROGRAM. (a) The department, in consultation with the council, shall create a regulatory sandbox program that enables a person to obtain legal protection and limited access to the market in this state to test innovative artificial intelligen…

Sec. 553.052. APPLICATION FOR PROGRAM PARTICIPATION. (a) A person must obtain approval from the department and any applicable agency before testing an artificial intelligence system under the program. (b) The department by rule shall prescribe the application form. The form must …

Sec. 553.053. DURATION AND SCOPE OF PARTICIPATION. (a) A program participant approved by the department and each applicable agency may test and deploy an artificial intelligence system under the program for a period of not more than 36 months. (b) The department may extend a test…

Sec. 553.054. EFFICIENT USE OF RESOURCES. The department shall coordinate the activities under this subchapter and any other law relating to artificial intelligence systems to ensure efficient system implementation and to streamline the use of department resources, including info…

Sec. 553.101. COORDINATION WITH APPLICABLE AGENCY. (a) The department shall coordinate with all applicable agencies to oversee the operation of a program participant. (b) The council or an applicable agency may recommend to the department that a program participant be removed fro…

Sec. 553.102. PERIODIC REPORT BY PROGRAM PARTICIPANT. (a) A program participant shall provide a quarterly report to the department. (b) The report shall include: (1) metrics for the artificial intelligence system's performance; (2) updates on how the artificial intelligence syste…

Sec. 553.103. ANNUAL REPORT BY DEPARTMENT. (a) The department shall submit an annual report to the legislature. (b) The report shall include: (1) the number of program participants testing an artificial intelligence system in the program; (2) the overall performance and impact of…

Sec. 554.001. CREATION OF COUNCIL. (a) The Texas Artificial Intelligence Council is created to: (1) ensure artificial intelligence systems in this state are ethical and developed in the public's best interest; (2) ensure artificial intelligence systems in this state do not harm p…

Sec. 554.002. COUNCIL MEMBERSHIP. (a) The council is composed of seven members as follows: (1) three members of the public appointed by the governor; (2) two members of the public appointed by the lieutenant governor; and (3) two members of the public appointed by the speaker of …

Sec. 554.003. QUALIFICATIONS. Members of the council must be Texas residents and have knowledge or expertise in one or more of the following areas: (1) artificial intelligence systems; (2) data privacy and security; (3) ethics in technology or law; (4) public policy and regulatio…

Sec. 554.004. STAFF AND ADMINISTRATION. The council may hire an executive director and other personnel as necessary to perform its duties. Added by Acts 2025, 89th Leg., R.S., Ch. 1174 (H.B. 149), Sec. 4, eff. January 1, 2026. SUBCHAPTER B. POWERS AND DUTIES OF COUNCIL

Sec. 554.101. ISSUANCE OF REPORTS. (a) The council may issue reports to the legislature regarding the use of artificial intelligence systems in this state. (b) The council may issue reports on: (1) the compliance of artificial intelligence systems in this state with the laws of t…

Sec. 554.102. TRAINING AND EDUCATIONAL OUTREACH. The council shall conduct training programs for state agencies and local governments on the use of artificial intelligence systems. Added by Acts 2025, 89th Leg., R.S., Ch. 1174 (H.B. 149), Sec. 4, eff. January 1, 2026.

Sec. 554.103. LIMITATION OF AUTHORITY. The council may not: (1) adopt rules or promulgate guidance that is binding for any entity; (2) interfere with or override the operation of a state agency; or (3) perform a duty or exercise a power not granted by this chapter. Added by Acts …

Sec. 601.001. DEFINITIONS. In this chapter: (1) "Consumer" means an individual who seeks or acquires real property, money or other personal property, services, or credit for personal, family, or household purposes. (2) "Consumer transaction" means a transaction between a merchant…

Sec. 601.002. APPLICABILITY OF CHAPTER; EXCEPTION. (a) This chapter applies only to a consumer transaction in which: (1) the merchant or the merchant's agent engages in a personal solicitation of a sale to the consumer at a place other than the merchant's place of business; (2) t…

Sec. 601.051. CONSUMER'S RIGHT TO CANCEL. In addition to any other rights or remedies available, a consumer may cancel a consumer transaction not later than midnight of the third business day after the date the consumer signs an agreement or offer to purchase. Added by Acts 2007,…

Sec. 601.052. NOTICE OF CONSUMER'S RIGHT TO CANCEL REQUIRED. (a) A merchant must provide a consumer with a complete receipt or copy of a contract pertaining to the consumer transaction at the time of its execution. (b) The document provided under Subsection (a) must: (1) be in th…

Sec. 601.053. COMPLETED CANCELLATION FORM REQUIRED. (a) A merchant that provides a document under Section 601.052 must attach to the document a completed notice of cancellation form in duplicate. The form must: (1) be easily detachable; (2) be in the same language as the document…

Sec. 601.054. USE OF FORMS AND NOTICES PRESCRIBED BY THE FEDERAL TRADE COMMISSION AUTHORIZED. The use of the forms and notices of the right to cancel prescribed by the Federal Trade Commission's trade-regulation rule providing a cooling-off period for door-to-door sales constitut…

Sec. 601.055. ALTERNATIVE NOTICE AUTHORIZED FOR CERTAIN CONSUMER TRANSACTIONS. A consumer transaction in which the contract price does not exceed $200 complies with the notice requirements of Sections 601.052 and 601.053 if: (1) the consumer may at any time cancel the order, refu…

Sec. 601.101. MERCHANT'S COMPENSATION. A merchant is not entitled to compensation for services performed under a consumer transaction canceled under this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Sec. 601.102. CONSUMER'S RETENTION OF GOODS OR TITLE TO REAL PROPERTY AUTHORIZED. Until a merchant has complied with this chapter, a consumer with possession of goods or the right or title to real property delivered by the merchant: (1) may retain possession of the goods or the r…

Sec. 601.103. CONSUMER'S DUTIES WITH RESPECT TO DELIVERED GOODS OR REAL PROPERTY. (a) Within a reasonable time after a cancellation under this chapter, the consumer must, on demand, tender to the merchant any goods or any right or title to real property delivered by the merchant …

Sec. 601.151. CONFESSION OF JUDGMENT OR WAIVER OF RIGHTS. A merchant may not include in a contract or receipt pertaining to a consumer transaction a confession of judgment or a waiver of any of the rights to which the consumer is entitled under this chapter. Added by Acts 2007, 8…

Sec. 601.152. FAILURE TO INFORM OR MISREPRESENTATION OF RIGHT TO CANCEL. A merchant may not: (1) at the time the consumer signs the contract pertaining to a consumer transaction or purchases the goods, services, or real property, fail to inform the consumer orally of the right to…

Sec. 601.153. TRANSFER OF INDEBTEDNESS DURING CERTAIN PERIOD. A merchant may not negotiate, transfer, sell, or assign a note or other evidence of indebtedness to a finance company or other third party before midnight of the fifth business day after the date the contract pertainin…

Sec. 601.154. FAILURE TO TAKE CERTAIN ACTIONS FOLLOWING RECEIPT OF NOTICE OF CANCELLATION. A merchant may not: (1) fail to notify the consumer before the end of the 10th business day after the date the merchant receives the notice of cancellation whether the merchant intends to r…

Sec. 601.201. CERTAIN SALES OR CONTRACTS VOID. A sale or contract entered into under a consumer transaction in violation of Section 601.053(b) or Subchapter D is void. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Sec. 601.202. LIABILITY FOR DAMAGES. A merchant who violates this chapter is liable to the consumer for: (1) actual damages suffered by the consumer as a result of the violation; (2) reasonable attorney's fees; and (3) court costs. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.…

Sec. 601.203. ALTERNATIVE RECOVERY UNDER CERTAIN CIRCUMSTANCES. If the merchant fails to tender goods or property traded to the merchant in substantially the same condition as when received by the merchant, the consumer may elect to recover an amount equal to the trade-in allowan…

Sec. 601.204. DECEPTIVE TRADE PRACTICE. A violation of this chapter is a false, misleading, or deceptive act or practice as defined by Section 17.46(b). In addition to any remedy under this chapter, a remedy under Subchapter E, Chapter 17, is also available for a violation of thi…

Sec. 601.205. INJUNCTION. If the attorney general believes that a person is violating or about to violate this chapter, the attorney general may bring an action in the name of the state to restrain or enjoin the person from violating this chapter. Added by Acts 2007, 80th Leg., R…

Sec. 602.001. INAPPLICABILITY OF CHAPTER TO SUBSTITUTED GOODS. This chapter does not apply to goods substituted for goods ordered or solicited by the recipient of the goods. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Sec. 602.002. ACTIONS AUTHORIZED ON DELIVERY OF UNSOLICITED GOODS. Unless otherwise agreed, a person to whom unsolicited goods are delivered: (1) is entitled to refuse to accept delivery of the goods; and (2) is not required to return the goods to the sender. Added by Acts 2007, …

Sec. 602.003. CERTAIN UNSOLICITED GOODS CONSIDERED GIFT. (a) Unsolicited goods that are addressed to or intended for the recipient are considered a gift to the recipient. (b) The recipient may use or dispose of goods described by Subsection (a) in any manner without obligation to…

Sec. 602.004. MISTAKEN DELIVERY. A person who receives unsolicited goods as the result of a bona fide mistake shall return the goods. The sender has the burden of proof as to the mistake. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Sec. 603.001. DEFINITIONS. Unless the context requires a different definition, the definitions provided by Chapter 3 apply to this chapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009.

Sec. 603.002. APPLICABILITY OF CHAPTER. (a) Except as provided by Subsection (b), this chapter applies only to a person who solicits business in this state by mailing an individual a check or other draft payable to that individual. (b) This chapter does not apply to a financial i…

Sec. 603.051. REQUIRED DISCLOSURE ON CHECK OR OTHER DRAFT. (a) A person who makes an offer that the recipient may accept by endorsing and negotiating a check or other draft shall disclose on the check or other draft that by signing and negotiating the instrument, the depositor ag…

Sec. 603.052. REQUIRED NOTICE OF RIGHT TO TERMINATE ACCEPTANCE OF OFFER. (a) If an offer described by Section 603.051 includes a free membership period, trial period, or other incentive with a time limit, and if the offer results in a contract unless the recipient terminates the …

Sec. 603.053. EFFECT OF NONCOMPLIANCE. (a) An offer described by Section 603.051 is void if the offeror: (1) does not make the disclosure required by that section; (2) does not send notice as required by Section 603.052, if applicable; or (3) provides an incentive with a time lim…

Sec. 603.101. DECEPTIVE TRADE PRACTICE. A violation of this chapter is a deceptive trade practice in addition to the practices described by Subchapter E, Chapter 17, and is actionable under that subchapter. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff.…

Sec. 604.001. DEFINITION OF STORED VALUE CARD. In this chapter, "stored value card": (1) means a record, as defined by Section 322.002, including a record that contains a microprocessor chip, magnetic strip, or other means of storing information: (A) that evidences a promise made…

Sec. 604.002. INAPPLICABILITY OF CHAPTER. This chapter does not apply to a stored value card that: (1) is issued by: (A) a financial institution acting as a financial agent of the United States or this state; (B) a federally insured financial institution, as defined by Section 20…

Sec. 604.003. CAUSE OF ACTION NOT CREATED. This chapter does not create a cause of action against a person who issues or sells a stored value card. Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.01, eff. April 1, 2009. SUBCHAPTER B. PERMISSIBLE FEES