Senate Bill No. 1964, introduced by Senator Parker, seeks to regulate the use of artificial intelligence (AI) systems and data management by governmental entities in Texas. The bill amends the Government Code to include definitions for terms such as "artificial intelligence system," "consequential decision," and "heightened scrutiny artificial intelligence system." It establishes a framework for the oversight of AI systems that can autonomously make consequential decisions affecting individuals' access to government services. State agencies are mandated to collect and report information on their AI systems, including risk mitigation measures and adherence to ethical standards. A new subchapter dedicated to AI will also introduce a code of ethics and minimum standards for heightened scrutiny AI systems, along with educational materials and training for government employees and the public.

Furthermore, the bill proposes a program for the temporary testing of AI systems in a controlled environment, allowing for limited compliance with existing regulations. This program will be administered by the department, which will assist eligible entities in contracting with registered vendors for AI-related activities. Disclosure and assessment requirements are also introduced, mandating state agencies to inform the public about their interactions with AI systems and requiring vendors to conduct impact assessments. A web page for reporting complaints related to AI systems will be established, with the attorney general overseeing enforcement actions for violations. The provisions of this act are set 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)