S.B. No. 1964 is a legislative bill in Texas that seeks to regulate the use of artificial intelligence (AI) systems by governmental entities. It introduces new definitions for terms related to AI, such as "artificial intelligence system" 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 to ensure responsible development and compliance with laws. Additionally, the bill creates a Public Sector Artificial Intelligence Systems Advisory Board and an Artificial Intelligence System Sandbox Program for controlled testing of AI systems.

Furthermore, the bill outlines a program administered by the Department of Information Resources to assist eligible entities in contracting with vendors for various AI-related activities. It defines "vendor" and sets an application process that includes risk assessments and mitigation plans. The bill also imposes disclosure requirements and impact assessments for AI systems used by state agencies, tasks the attorney general with managing complaints related to AI, and mandates standardized notices regarding AI systems. The act is scheduled to take effect on September 1, 2025.

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)