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A BILL TO BE ENTITLED
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AN ACT
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relating to a study on employer and state agency use of automated |
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employment decision tools in assessing an applicant's suitability |
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for a position. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) In this Act: |
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(1) "Artificial intelligence system" means a system of |
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machine learning and related technologies that use data to train |
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statistical models for the purpose of enabling computer systems to |
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perform tasks normally associated with human intelligence or |
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perception, such as computer vision, speech or natural language |
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processing, and content generation. |
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(2) "Automated employment decision tool" means a |
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computational process or software application that uses |
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algorithms, machine learning, statistical modeling, data |
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analytics, or an artificial intelligence system to assess an |
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applicant's suitability for a position. |
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(3) "Bias" means the use of an artificial intelligence |
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system or an automated employment decision tool in an employer or |
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state agency's hiring process that results in discrimination |
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prohibited under Chapter 21, Labor Code, or federal |
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antidiscrimination laws. |
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(4) "Commission" means the Texas Workforce |
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Commission. |
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(5) "Department" means the Department of Information |
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Resources. |
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(6) "Employer" has the meaning assigned by Section |
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61.001, Labor Code. |
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(7) "State agency" means a department, commission, |
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board, office, or other agency in the executive branch of state |
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government created by the state constitution or a state |
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statute. The term includes a university system or an institution |
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of higher education as defined by Section 61.003, Education Code. |
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(8) "Study" means the study required by this section. |
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(b) The commission, in consultation and collaboration with |
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the department, shall conduct a study on the use of artificial |
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intelligence systems and automated employment decision tools in |
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employment and hiring practices of employers, including state |
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agencies. |
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(c) In conducting the study, the commission shall: |
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(1) evaluate the current and future use in hiring |
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decisions of artificial intelligence systems, including automated |
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employment decision tools; |
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(2) outline the methods and tools available for |
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detecting and auditing bias in the deployment of artificial |
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intelligence systems and automated employment decision tools in an |
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employer's or state agency's hiring process; |
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(3) determine: |
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(A) the minimum transparency and disclosure |
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requirements for artificial intelligence system vendors to |
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effectively audit for bias and the accountability requirements to |
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redress resulting bias; and |
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(B) the use of external, independent review for |
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bias in artificial intelligence systems and automated employment |
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decision tools used by employers and state agencies in hiring |
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decisions; |
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(4) identify existing deficiencies in oversight, |
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auditability, and regulatory protections regarding artificial |
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intelligence systems and automated employment decision tools used |
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in hiring decisions in this state; and |
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(5) analyze this state's ability to evaluate and |
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recognize bias and other risks in the use of artificial |
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intelligence systems and automated employment decision tools in |
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hiring decisions. |
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(d) The department shall assist the commission in |
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conducting the study by examining and providing information on: |
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(1) the use of artificial intelligence systems and |
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automated employment decision tools in state agency hiring |
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practices; and |
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(2) regulatory procedures that may assist in |
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decreasing bias and other risks posed by state agencies deploying |
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artificial intelligence systems and automated employment decision |
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tools for use in hiring decisions. |
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(e) In conducting the study, the commission may consult: |
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(1) state agencies and private sector employers with |
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experience in: |
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(A) the deployment of artificial intelligence |
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systems and automated employment decision tools; and |
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(B) the ethical use of artificial intelligence |
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systems and automated employment decision tools; and |
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(2) state agencies that specialize in technical |
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support related to artificial intelligence security to assist with |
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evaluating the use of artificial intelligence systems in hiring |
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decision processes. |
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(f) In addition to any money appropriated by the |
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legislature, the commission may solicit and accept federal funds |
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and gifts, grants, or donations from any source to administer and |
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finance the study. |
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(g) Not later than November 15, 2026, the commission shall |
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submit to the governor, the lieutenant governor, the speaker of the |
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house of representatives, and the chair of the standing committee |
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of each house of the legislature with primary jurisdiction over the |
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commission a written report that includes: |
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(1) the results of the study; |
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(2) any recommendations for legislative or other |
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action to increase transparency and decrease bias in the use of |
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artificial intelligence systems in employment decisions; |
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(3) a sector specific risk assessment for bias in the |
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use of artificial intelligence systems in state agency hiring |
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processes; and |
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(4) a proposal to establish a method of funding |
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research on artificial intelligence bias. |
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(h) This Act expires September 1, 2027. |
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SECTION 2. The Texas Workforce Commission may adopt rules |
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necessary to administer this Act and implement any related programs |
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authorized under this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |