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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of an automated employment decision tool by an |
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employer to assess a job applicant's fitness for a position; |
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imposing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 2, Labor Code, is amended by adding |
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Subtitle F to read as follows: |
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SUBTITLE F. PROVISIONS REGARDING JOB APPLICANT SCREENING |
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CHAPTER 95. USE OF AUTOMATED EMPLOYMENT DECISION TOOL |
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Sec. 95.001. DEFINITIONS. In this chapter: |
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(1) "Algorithm" means a computerized procedure |
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consisting of a set of steps used to accomplish a determined task. |
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(2) "Applicant" means a person applying for a job |
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offered by an employer. |
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(3) "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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(4) "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 fitness for a position. |
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(5) "Employer" has the meaning assigned by Section |
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61.001. |
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Sec. 95.002. USE OF AUTOMATED EMPLOYMENT DECISION TOOL. |
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(a) An employer may not use or deploy, or authorize a third party to |
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use or deploy, an automated employment decision tool in violation |
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of this chapter or a rule adopted under this chapter. |
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(b) It is a violation of this chapter for an employer to use |
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an automated employment decision tool that includes, as a factor in |
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the assessment of fitness for purposes of recruitment, hiring, |
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promotion, renewal of employment, selection for training or |
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apprenticeship, discharge, discipline, tenure, or the terms, |
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privileges, or conditions of employment, status in a protected |
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class under state or federal law, or the residential zip code of the |
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applicant. |
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Sec. 95.003. DISCLOSURE AND CONSENT REQUIRED. An employer |
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may not use an automated employment decision tool in regard to an |
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applicant unless the employer: |
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(1) notifies the applicant that an automated |
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employment decision tool may be used to assess the applicant's |
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fitness for the position; |
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(2) provides the applicant with information |
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describing how the automated employment decision tool will be used |
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to assess the applicant's fitness for the position, including what |
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characteristics may be evaluated for that purpose; and |
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(3) before using the automated employment decision |
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tool, obtains the applicant's written consent for that use. |
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Sec. 95.004. SHARING OF AUTOMATED EMPLOYMENT DECISION TOOL |
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ASSESSMENT. An employer may not share an assessment of an applicant |
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made by an automated employment decision tool authorized under this |
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chapter with any person other than a person whose knowledge and |
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skill is necessary in order to ensure the tool is correctly |
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processing the applicant's data. |
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Sec. 95.005. DESTRUCTION OF AUTOMATED EMPLOYMENT DECISION |
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TOOL ASSESSMENT. (a) Not later than the 30th day after the date an |
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employer uses an automated employment decision tool to assess an |
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applicant's fitness for a position as authorized under this |
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chapter, an employer must: |
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(1) make all reasonable efforts to destroy any hard |
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copy and erase any electronic data file of the assessment; and |
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(2) instruct any other person with whom the employer |
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shared the assessment under Section 95.004 to make all reasonable |
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efforts to destroy any hard copy and erase any electronic data file |
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of the assessment. |
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(b) A person who is instructed by an employer to destroy an |
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assessment under Subsection (a)(2) shall, as soon as practicable, |
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make all reasonable efforts to destroy any hard copy and erase any |
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electronic data file of the assessment. |
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Sec. 95.006. ENFORCEMENT; ADMINISTRATIVE PENALTY. (a) An |
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applicant who has reason to believe that an employer has violated |
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this chapter or a rule adopted under this chapter may file a |
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complaint with the commission. |
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(b) On receipt of a complaint under this section, the |
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commission shall investigate and dispose of the complaint in the |
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manner prescribed by Subchapter F, Chapter 21, for a complaint of an |
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unlawful employment practice under that chapter. |
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(c) The commission shall assess an administrative penalty |
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in an amount that is not less than $2,500 and not more than $7,500 |
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against an employer for each violation of this chapter or a rule |
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adopted under this chapter. |
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Sec. 95.007. RULES. The commission shall adopt rules for |
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the administration of this chapter. |
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SECTION 2. This Act takes effect September 1, 2025. |