H.B. No. 149, the Texas Responsible Artificial Intelligence Governance Act, seeks to regulate artificial intelligence (AI) systems in Texas and establish civil penalties for violations. The bill amends the Business & Commerce Code to define AI systems and biometric identifiers, requiring individuals to be informed and give consent for the capture or storage of their biometric data for commercial purposes, particularly when sourced from publicly available media. It outlines exceptions for certain uses, such as by financial institutions, and imposes penalties for unauthorized commercial use of biometric identifiers. The legislation also introduces a new subtitle dedicated to AI protection, emphasizing consumer disclosures, prohibitions against manipulating human behavior, and restrictions on social scoring by government entities.

Additionally, the bill establishes a regulatory sandbox program for testing AI systems without licensing requirements, fostering innovation while ensuring compliance with legal standards. It creates the Texas Artificial Intelligence Council to oversee ethical AI development and deployment, recommend reforms, and evaluate government operations through AI. The bill also amends the Government Code to enhance criteria for reviewing state agencies, including assessments of cybersecurity practices and AI usage. It specifies that agencies are not required to implement provisions without appropriated funds and must certify any lack of funding in their budget requests. The bill is set to take effect on January 1, 2026.

Statutes affected:
Introduced: Commerce Code 503.001, Government Code 325.011, Government Code 2054.068, Government Code 2054.0965 (Commerce Code 503, Government Code 325, Government Code 2054)
House Committee Report: Commerce Code 503.001, Commerce Code 541.104, Government Code 325.011, Government Code 2054.068, Government Code 2054.0965 (Commerce Code 503, Government Code 325, Commerce Code 541, Government Code 2054)
Engrossed: Commerce Code 503.001, Commerce Code 541.104, Government Code 325.011, Government Code 2054.068, Government Code 2054.0965 (Commerce Code 503, Government Code 325, Commerce Code 541, Government Code 2054)
Senate Committee Report: Commerce Code 503.001, Commerce Code 541.104, Government Code 325.011, Government Code 2054.068, Government Code 2054.0965 (Commerce Code 503, Government Code 325, Commerce Code 541, Government Code 2054)
Enrolled: Commerce Code 503.001, Commerce Code 541.104, Government Code 325.011, Government Code 2054.068, Government Code 2054.0965 (Commerce Code 503, Government Code 325, Commerce Code 541, Government Code 2054)