Enrolled Bill Summary

Senate Bill 1964 amends the Government Code to set out provisions relating to the regulation and use of artificial intelligence (AI) systems and the management of data by governmental entities. The bill requires the Department of Information Resources (DIR) to do the following:

• establish an AI system code of ethics and minimum risk management and governance standards for required use by applicable state agencies and local governments;
• develop educational and training materials on AI systems for state and local government employees and the general public; and
• establish and administer a sandbox program to support eligible entities in contracting with vendors to engage in research, development, training, testing, and other pre-deployment activities related to AI systems.

The bill establishes a public sector AI systems advisory board, administratively supported by DIR, to assist state agencies in the development, deployment, and use of AI systems. The bill requires applicable state agencies to provide clear disclosure to the public of interaction with public-facing AI systems and conduct confidential AI system impact assessments.

Senate Bill 1964 provides for the enforcement of its provisions, a web page for complaints relating to AI systems, and educational information regarding the risks and benefits of AI systems posted on the attorney general's website. Among other provisions, the bill expands the information that DIR is required to collect from each state agency to include information regarding an agency's AI systems and requires an agency's biennial information resources deployment review to include certain information relating to AI systems. The bill requires local governments to complete a review of the deployment and use of heightened scrutiny AI systems and, on request, provide the review to DIR and authorizes the designation of a data management officer by an applicable state agency.