SB 1700

relating to the artificial intelligence division within the
Department of Information Resources.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 2054, Government Code, is amended by
adding Subchapter S to read as follows:
SUBCHAPTER S.  ARTIFICIAL INTELLIGENCE DIVISION
Sec. 2054.701.  ESTABLISHMENT AND ADMINISTRATION OF
DIVISION.  (a)  The department shall establish an artificial
intelligence division within the department.
(b)  The executive director shall direct the administration
and oversight of the artificial intelligence division, including
the division's organization within the department.
(c)  The department may hire the personnel necessary to
administer the duties of the division, including hiring personnel
through institutions of higher education, as defined by Section
Sec. 2054.702.  GENERATIVE ARTIFICIAL INTELLIGENCE
TECHNOLOGY.  (a)  The division shall assist state agencies and other
entities that use the department's services in the implementation
of generative artificial intelligence technology for:
(1)  projects to modernize or replace legacy systems,
as defined by Section 2054.571; and
(2)  other projects appropriate for the use of
generative artificial intelligence technology as determined by the
(b)  In assisting agencies and entities with projects under
Subsection (a), the division may:
(1)  use generative artificial intelligence technology
developed or procured by the department to complete the project; or
(2)  contract with a vendor to use generative
artificial intelligence technology to complete the project.
(c)  If the division contracts with a vendor under Subsection
(b), the vendor's generative artificial intelligence technology
must complete at least 90 percent of the work required to complete
Sec. 2054.703.  COST ANALYSIS REPORT.  The division shall
prepare a cost analysis report for each project completed under
Section 2054.702 that includes:
(1)  a summary of the time, money, and resources saved
by using a generative artificial intelligence technology compared
to the time, money, and resources that would have been required
using traditional systems to perform equivalent tasks; and
(2)  a concise overview focused on information
demonstrating the cost efficiencies achieved by using generative
artificial intelligence technology, such as the amount of time and
money saved in the procurement process.
Sec. 2054.704.  RULES.  The department may adopt the rules
necessary to establish and administer the division.
SECTION 2.  As soon as practicable after the effective date
of this Act, the Department of Information Resources shall adopt
the rules necessary to implement Subchapter S, Chapter 2054,
Government Code, as added by this Act.
SECTION 3.  This Act takes effect September 1, 2025.