HB 5496

relating to the disclosure and use of artificial intelligence.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Title 12, Business & Commerce Code, is amended by
adding Chapter 611 to read as follows:
CHAPTER 611.  ARTIFICIAL INTELLIGENCE TRANSPARENCY
Sec. 611.001.  DEFINITION.  In this chapter, "artificial
intelligence" means a machine-based system that:
(1)  when given a set of objectives by an individual,
makes predictions, recommendations, or decisions that influence a
real or virtual environment; and
(2)  uses inputs from an individual or machine to:
(A)  perceive or interpret a real or virtual
(B)  use automation to analyze a perception or
interpretation of a real or virtual environment; or
(C)  use models to infer or form opinions on
information or a proposed action.
Sec. 611.002.  PROVISION OF INFORMATION BY AND DUTIES OF
USER OF ARTIFICIAL INTELLIGENCE.  (a)  A person who uses artificial
intelligence in conducting business or otherwise providing a good
or service, including operating or providing access to a social
media platform, creating or distributing political advertising, or
providing financial services, to a resident of this state shall:
(1)  implement and maintain standards representing the
best practices of the artificial intelligence industry;
(2)  provide a tool for an individual to whom the person
is providing a good or service that enables the individual to detect
the use of artificial intelligence;
(3)  make available to any individual affected by a
decision made by artificial intelligence an explanation of how and
why the artificial intelligence reached that decision; and
(4)  ensure that artificial intelligence does not
demonstrate bias or discriminate against an individual on the basis
of any legally protected classification.
(b)  Artificial intelligence is considered to be used to
provide a good or service to an individual under Subsection (a)
regardless of whether the individual can directly access the
Sec. 611.003.  ENFORCEMENT.  A violation of this chapter is a
deceptive trade practice under Subchapter E, Chapter 17, and is
actionable under that subchapter.
SECTION 2.  This Act takes effect September 1, 2025.