TX HB149

Defines "artificial intelligence system" as any machine-based system that infers from inputs how to generate outputs including content, decisions, predictions, or recommendations that can influence physical or virtual environments

Prohibits developing or deploying AI systems that intentionally incite self-harm, harm to others, or criminal activity; bans government use of AI for "social scoring" based on social behavior or personal characteristics

Requires government agencies using consumer-facing AI systems to disclose before or at time of interaction that consumers are interacting with an AI system; healthcare providers must disclose AI use in treatment

Establishes civil penalties enforced exclusively by the attorney general: $10,000-$12,000 for curable violations, $80,000-$200,000 for uncurable violations, and $2,000-$40,000 per day for continued violations, with a 60-day cure period before enforcement action

Creates the Texas Artificial Intelligence Council (7 members appointed by governor, lieutenant governor, and speaker) and a regulatory sandbox program through the Department of Information Resources allowing limited AI system testing for up to 36 months without full licensing requirements