The bill, 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 study aims to evaluate the current and future applications of these technologies, identify methods for detecting and auditing bias, and establish transparency and accountability requirements for vendors of such systems. Additionally, it seeks to assess the state's capacity to recognize and mitigate bias in hiring decisions influenced by these tools.

The commission is required to submit a report by November 15, 2026, detailing the study's findings, recommendations for legislative action to enhance transparency and reduce bias, a risk assessment specific to state agency hiring processes, and a proposal for funding research on artificial intelligence bias. The bill also allows the commission to accept federal funds and donations to support the study and grants the Texas Workforce Commission the authority to adopt necessary rules for its implementation. The act is set to expire on September 1, 2027, and will take effect on September 1, 2025.

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