H.B. No. 5118 mandates a comprehensive study by the Texas Workforce Commission, in collaboration with the Department of Information Resources, on the use of artificial intelligence systems and automated employment decision tools in hiring practices by employers and state agencies. The bill defines key terms such as "artificial intelligence system," "automated employment decision tool," and "bias," and outlines the study's objectives, which include evaluating current and future uses of these technologies, identifying methods for detecting bias, and assessing regulatory protections. The commission is also tasked with consulting various stakeholders, including state agencies and private sector employers, to gather insights on ethical deployment and oversight of these tools.

The bill requires the commission to submit a report by November 15, 2026, detailing the study's findings and recommendations for legislative action aimed at increasing transparency and reducing bias in employment decisions involving artificial intelligence. Additionally, it allows the commission to seek federal funds and donations to support the study and grants the Texas Workforce Commission the authority to adopt necessary rules for implementation. The act is set to expire on September 1, 2027, and will take effect on September 1, 2025.

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