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A BILL TO BE ENTITLED
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AN ACT
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relating to establishing a framework to govern the use of |
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artificial intelligence systems in critical decision-making by |
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private companies and ensure consumer protections; authorizing a |
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civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 11, Business & Commerce Code, |
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is amended by adding Chapter 551 to read as follows: |
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CHAPTER 551. ALGORITHMIC ARTIFICIAL INTELLIGENCE SYSTEMS |
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Sec. 551.001. DEFINITIONS. In this chapter: |
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(1) "Artificial intelligence system" means any |
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machine learning-based system that, for any explicit or implicit |
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objective, infers from the inputs such system receives how to |
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generate outputs, including content, decisions, predictions, and |
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recommendations, that can influence physical or virtual |
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environments. |
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(2) "Consequential decision" means any decision that |
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has a material, legal, or similarly significant effect on a |
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consumer. |
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Sec. 551.002. ARTIFICIAL INTELLIGENCE FRAMEWORK. A private |
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company that uses an artificial intelligence system to make a |
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consequential decision shall establish a framework to govern the |
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use of the system to ensure protection of consumers. |
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Sec. 551.003. CIVIL PENALTY. A private company that |
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violates this section is liable for a civil penalty not to exceed |
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one dollar. |
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SECTION 2. This Act takes effect September 1, 2025. |