89R26355 LRM-D
 
  By: Bhojani, Ordaz, Lujan, Harris Davila, H.B. No. 5118
      Longoria
 
  Substitute the following for H.B. No. 5118:
 
  By:  Button C.S.H.B. No. 5118
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a study on employer and state agency use of automated
  employment decision tools in assessing an applicant's suitability
  for a position.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a) In this Act:
               (1)  "Artificial intelligence system" means a system of
  machine learning and related technologies that use data to train
  statistical models for the purpose of enabling computer systems to
  perform tasks normally associated with human intelligence or
  perception, such as computer vision, speech or natural language
  processing, and content generation.
               (2)  "Automated employment decision tool" means a
  computational process or software application that uses
  algorithms, machine learning, statistical modeling, data
  analytics, or an artificial intelligence system to assess an
  applicant's suitability for a position.
               (3)  "Bias" means the use of an artificial intelligence
  system or an automated employment decision tool in an employer or
  state agency's hiring process that results in discrimination
  prohibited under Chapter 21, Labor Code, or federal
  antidiscrimination laws.   
               (4)  "Commission" means the Texas Workforce
  Commission.
               (5)  "Department" means the Department of Information
  Resources.
               (6)  "Employer" has the meaning assigned by Section
  61.001, Labor Code.
               (7)  "State agency" means a department, commission,
  board, office, or other agency in the executive branch of state
  government created by the state constitution or a state
  statute.  The term includes a university system or an institution
  of higher education as defined by Section 61.003, Education Code.
               (8)  "Study" means the study required by this section.
         (b)  The commission, in consultation and collaboration with
  the department, shall conduct a study on the use of artificial
  intelligence systems and automated employment decision tools in
  employment and hiring practices of employers, including state
  agencies.
         (c)  In conducting the study, the commission shall:
               (1)  evaluate the current and future use in hiring
  decisions of artificial intelligence systems, including automated
  employment decision tools;
               (2)  outline the methods and tools available for
  detecting and auditing bias in the deployment of artificial
  intelligence systems and automated employment decision tools in an
  employer's or state agency's hiring process;
               (3)  determine:
                     (A)  the minimum transparency and disclosure
  requirements for artificial intelligence system vendors to
  effectively audit for bias and the accountability requirements to
  redress resulting bias; and
                     (B)  the use of external, independent review for
  bias in artificial intelligence systems and automated employment
  decision tools used by employers and state agencies in hiring
  decisions;
               (4)  identify existing deficiencies in oversight,
  auditability, and regulatory protections regarding artificial
  intelligence systems and automated employment decision tools used
  in hiring decisions in this state; and
               (5)  analyze this state's ability to evaluate and
  recognize bias and other risks in the use of artificial
  intelligence systems and automated employment decision tools in
  hiring decisions.
         (d)  The department shall assist the commission in
  conducting the study by examining and providing information on:
               (1)  the use of artificial intelligence systems and
  automated employment decision tools in state agency hiring
  practices; and
               (2)  regulatory procedures that may assist in
  decreasing bias and other risks posed by state agencies deploying
  artificial intelligence systems and automated employment decision
  tools for use in hiring decisions.
         (e)  In conducting the study, the commission may consult:
               (1)  state agencies and private sector employers with
  experience in:
                     (A)  the deployment of artificial intelligence
  systems and automated employment decision tools; and
                     (B)  the ethical use of artificial intelligence
  systems and automated employment decision tools; and
               (2)  state agencies that specialize in technical
  support related to artificial intelligence security to assist with
  evaluating the use of artificial intelligence systems in hiring
  decision processes.
         (f)  In addition to any money appropriated by the
  legislature, the commission may solicit and accept federal funds
  and gifts, grants, or donations from any source to administer and
  finance the study.
         (g)  Not later than November 15, 2026, the commission shall
  submit to the governor, the lieutenant governor, the speaker of the
  house of representatives, and the chair of the standing committee
  of each house of the legislature with primary jurisdiction over the
  commission a written report that includes:
               (1)  the results of the study;
               (2)  any recommendations for legislative or other
  action to increase transparency and decrease bias in the use of
  artificial intelligence systems in employment decisions;
               (3)  a sector specific risk assessment for bias in the
  use of artificial intelligence systems in state agency hiring
  processes; and
               (4)  a proposal to establish a method of funding
  research on artificial intelligence bias.
         (h)  This Act expires September 1, 2027.
         SECTION 2.  The Texas Workforce Commission may adopt rules
  necessary to administer this Act and implement any related programs
  authorized under this Act.
         SECTION 3.  This Act takes effect September 1, 2025.