TX HB5118

Texas Workforce Commission, in consultation with the Department of Information Resources, must conduct a study on the use of artificial intelligence systems and automated employment decision tools in hiring practices by both private employers and state agencies

The study must evaluate current and future AI use in hiring, outline methods for detecting and auditing bias, determine minimum transparency and disclosure requirements for AI vendors, and identify existing deficiencies in oversight and regulatory protections

"Bias" is defined as AI or automated tool use in hiring that results in discrimination prohibited under Texas Labor Code Chapter 21 or federal antidiscrimination laws

The commission must submit a written report by November 15, 2026, to the governor, lieutenant governor, speaker of the house, and relevant committee chairs, including study results, legislative recommendations, sector-specific risk assessments, and a proposal for funding ongoing AI bias research

The commission may accept federal funds, gifts, grants, or donations to finance the study; the Act expires September 1, 2027