89R16705 BCH-D
 
  By: Bhojani H.B. No. 5496
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the disclosure and use of artificial intelligence.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 12, Business & Commerce Code, is amended by
  adding Chapter 611 to read as follows:
  CHAPTER 611.  ARTIFICIAL INTELLIGENCE TRANSPARENCY
         Sec. 611.001.  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. 611.002.  PROVISION OF INFORMATION BY AND DUTIES OF
  USER OF ARTIFICIAL INTELLIGENCE. (a)  A person who uses artificial
  intelligence in conducting business or otherwise providing a good
  or service, including operating or providing access to a social
  media platform, creating or distributing political advertising, or
  providing financial services, to a resident of this state shall:
               (1)  implement and maintain standards representing the
  best practices of the artificial intelligence industry;
               (2)  provide a tool for an individual to whom the person
  is providing a good or service that enables the individual to detect
  the use of artificial intelligence;
               (3)  make available to any individual affected by a
  decision made by artificial intelligence an explanation of how and
  why the artificial intelligence reached that decision; and
               (4)  ensure that artificial intelligence does not
  demonstrate bias or discriminate against an individual on the basis
  of any legally protected classification.
         (b)  Artificial intelligence is considered to be used to
  provide a good or service to an individual under Subsection (a)
  regardless of whether the individual can directly access the
  artificial intelligence.
         Sec. 611.003.  ENFORCEMENT.  A violation of this chapter is a
  deceptive trade practice under Subchapter E, Chapter 17, and is
  actionable under that subchapter.
         SECTION 2.  This Act takes effect September 1, 2025.