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TX SB2966
Bill
Status
3/14/2025
Primary Sponsor
Charles Schwertner
Click for details
AI Summary
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Requires private companies using artificial intelligence systems to make "consequential decisions" (those with material, legal, or significant effects on consumers) to establish a governance framework ensuring consumer protection
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Defines "artificial intelligence system" as any machine learning-based system that infers from inputs how to generate outputs including content, decisions, predictions, and recommendations affecting physical or virtual environments
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Establishes a civil penalty not to exceed $1 for private companies that violate the framework requirement
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Adds new Chapter 551 (Algorithmic Artificial Intelligence Systems) to Subtitle C, Title 11 of the Texas Business & Commerce Code
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Takes effect September 1, 2025
Legislative Description
Relating to establishing a framework to govern the use of artificial intelligence systems in critical decision-making by private companies and ensure consumer protections; authorizing a civil penalty.
Business & Commerce
Last Action
Referred to Business & Commerce
4/7/2025