S.B. No. 1964 is a legislative bill in Texas that aims to regulate the use of artificial intelligence (AI) systems by governmental entities. It introduces new definitions related to AI, such as "artificial intelligence system," "consequential decision," and "heightened scrutiny artificial intelligence system." The bill mandates state agencies to collect information on their AI systems and requires local governments to review their deployment. It also establishes a code of ethics and minimum standards for heightened scrutiny AI systems, aligning them with national risk management frameworks. Additionally, the bill creates a Public Sector Artificial Intelligence Systems Advisory Board and an AI Sandbox Program for controlled testing of AI systems, emphasizing educational outreach and training for government employees and the public.

Furthermore, the bill establishes a program within the Department of Information Resources to assist eligible entities in contracting with vendors for AI-related activities. It defines "vendor" and outlines an application process that includes risk assessments and mitigation plans. State agencies using public-facing AI systems are required to disclose interactions with the public, conduct impact assessments, and create a complaint web page. The bill also includes enforcement provisions by the attorney general for violations and mandates standardized notices about AI systems in public-facing applications. It is set to take effect on September 1, 2025, detailing the responsibilities of the Department of Information Resources and the attorney general in its implementation.

Statutes affected:
Introduced: Government Code 2054.003, Government Code 2054.068, Government Code 2054.0965, Government Code 2054.137 (Government Code 2054)
Senate Committee Report: Government Code 2054.003, Government Code 2054.068, Government Code 2054.0965, Government Code 2054.137 (Government Code 2054)
Engrossed: Government Code 2054.003, Government Code 2054.068, Government Code 2054.0965, Government Code 2054.137 (Government Code 2054)
House Committee Report: Government Code 2054.003, Government Code 2054.068, Government Code 2054.0965, Government Code 2054.137 (Government Code 2054)
Enrolled: Government Code 2054.003, Government Code 2054.068, Government Code 2054.0965, Government Code 2054.137 (Government Code 2054)