H.B. No. 581 aims to address the creation and publication of artificial sexual material deemed harmful to minors. The bill amends Chapter 129B of the Civil Practice and Remedies Code, changing the heading to reflect its focus on liability related to sexual material harmful to minors. It introduces the definition of "artificial sexual material harmful to minors," which refers to computer-generated sexual content that features recognizable individuals, and expands the definition of "commercial entity" to include various business structures. The bill also establishes requirements for commercial entities operating websites that provide tools for creating such material, mandating reasonable age verification methods to ensure users are 18 years or older.

Additionally, the bill outlines specific obligations for commercial entities regarding the sources of artificial sexual material, requiring that individuals depicted in such material are at least 18 years old and have consented to their likeness being used. It also clarifies that internet service providers and related entities cannot be held liable for merely providing access to harmful content, as long as they do not create it. Violations of the age verification requirements can result in significant civil penalties, including daily fines and additional penalties if minors access harmful material due to non-compliance. The act is set to take effect on September 1, 2025.

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