89R3016 MLH-D
 
  By: Hughes S.B. No. 668
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the disclosure of information with regard to artificial
  intelligence.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 99, Business & Commerce Code, is amended by
  adding Chapter 2003 to read as follows:
  CHAPTER 2003.  DISCLOSURES RELATED TO ARTIFICIAL INTELLIGENCE
         Sec. 2003.001.  DEFINITION. In this chapter, "artificial
  intelligence" means a machine-based system that:
               (1)  when given a set of objectives by an individual,
  makes predictions, recommendations, or decisions that influence a
  real or virtual environment; and
               (2)  uses inputs from an individual or machine to:
                     (A)  perceive or interpret a real or virtual
  environment;
                     (B)  use automation to analyze a perception or
  interpretation of a real or virtual environment; or
                     (C)  use models to infer or form opinions on
  information or a proposed action.
         Sec. 2003.002.  APPLICABILITY OF CHAPTER. (a)  This chapter
  applies only to a person who:
               (1)  uses artificial intelligence to provide services
  to an individual in this state, including:
                     (A)  answering questions;
                     (B)  gathering information;
                     (C)  summarizing information;
                     (D)  generating textual, audio, or visual
  material; or
                     (E)  providing information to be used in
  connection with a lending, underwriting, risk assessment,
  investing, or hiring decision; and
               (2)  generated, or is more than 25 percent owned by a
  person who generated, at least $100 billion in total revenue,
  including revenue generated by subsidiaries, according to
  generally accepted accounting principles.
         (b)  Artificial intelligence is considered to be used to
  provide a service to an individual under Subsection (a)(1)
  regardless of whether the individual can directly access the
  artificial intelligence.
         Sec. 2003.003.  DUTY TO DISCLOSE ARTIFICIAL INTELLIGENCE
  INFORMATION. (a)  A person regulated by this chapter shall
  disclose, on the person's Internet website or in another location
  electronically accessible by an individual in this state:
               (1)  the name of each artificial intelligence model
  used by the person;
               (2)  a brief description of the functions and purposes
  of each model disclosed under Subdivision (1);
               (3)  to the best of the person's knowledge and belief,
  the name of each public or private third party that has provided
  input on an artificial intelligence model that the person has
  implemented;
               (4)  a description of the specific input provided by
  each third party disclosed under Subdivision (3); and
               (5)  any changes made to an artificial intelligence
  model based on input provided by a third party disclosed under
  Subdivision (3).
         (b)  An individual who uses a service described by Section
  2003.002(a)(1) who provides input on an artificial intelligence
  model is not considered a third party for purposes of this section
  if the individual's input was provided:
               (1)  in the individual's personal capacity; and
               (2)  based on the individual's own experience as a user
  of that service.
         Sec. 2003.004.  DISCRIMINATION AND RETALIATION PROHIBITED.
  A person may not discipline, retaliate against, or otherwise
  discriminate against an individual who in good faith reports a
  suspected violation of this chapter to the attorney general or any
  other appropriate authority.
         Sec. 2003.005.  COOPERATION WITH ATTORNEY GENERAL. A person
  shall allow the attorney general to access the records of the person
  to the extent necessary to ensure the person is in substantial
  compliance with this chapter.
         Sec. 2003.006.  ENFORCEMENT. (a)  A violation of this
  chapter is a deceptive trade practice under Subchapter E, Chapter
  17, and is actionable under that subchapter.
         (b)  The attorney general may issue reports to the governor,
  the legislature, or any other federal, state, or local government
  official regarding any information obtained investigating a person
  under this chapter or enforcing a provision of this chapter.
         (c)  A report under Subsection (b) may be public or
  confidential.
         (d)  The remedies under this section are cumulative of other
  remedies provided by law.
         SECTION 2.  This Act takes effect September 1, 2025.