TX HB149: Relating to regulation of the use of artificial intelligence systems in this state; providing civil penalties.

In one paragraph

Texas's HB 149, the Texas Responsible Artificial Intelligence Governance Act, bars developing or deploying AI intended to incite self-harm, harm to others or crime, with intent to unlawfully discriminate against a protected class (disparate impact alone is not enough), or solely to infringe U.S. constitutional rights, and making or distributing AI solely to produce or spread child pornography or unlawful sexual deep fakes. Government entities may not use AI for harmful social scoring or rights-infringing biometric ID. Agencies must tell consumers they are dealing with AI; health care providers must tell patients. AG enforcement; 60-day cure. Signed June 22, 2025; effective January 1, 2026.

Plain-English summary, written with AI assistance. The official text controls.

What it means for business

AI developers and deployers in Texas may not act with the banned intents (inciting harm, unlawful discrimination, infringing U.S. constitutional rights, child pornography or sexual deep fakes); health care providers must disclose AI use to patients. AG enforcement, 60-day cure period.

Key provisions

1. 1Applies to anyone who promotes, advertises or conducts business in Texas, produces a product or service used by Texas residents, or develops or deploys an AI system in Texas; the chapter preempts local ordinances, rules and regulations on the use of AI (Bus. & Com. Code §§ 551.002, 552.003)
2. 2No person may develop or deploy AI in a manner that intentionally aims to incite or encourage self-harm (including suicide), harm to another person or criminal activity; with the sole intent to infringe, restrict or impair federal constitutional rights; or with the intent to unlawfully discriminate against a protected class, where disparate impact alone does not show intent (insurance entities, including developers of AI they use, are exempt when providing insurance services if subject to insurance laws on unfair discrimination, unfair competition or deceptive practices; federally insured financial institutions complying with banking laws are deemed compliant) (§§ 552.052, 552.055, 552.056)
3. 3No person may develop or distribute AI with the sole intent of producing or distributing child pornography or sexually explicit deep fakes in violation of the Penal Code, or intentionally develop or distribute AI that engages in sexual text conversations while impersonating or imitating a child under 18 (§ 552.057)
4. 4Governmental entities (not hospital districts or higher education institutions) may not use AI to assign social scores that result or may result in unjustified, disproportionate or unrelated detrimental treatment or infringe rights, or develop or deploy AI to uniquely identify a person through biometric data or images gathered from the internet without consent if that would infringe the person's rights (§§ 552.053, 552.054)
5. 5Disclosure: a governmental agency offering AI meant to interact with consumers must tell each consumer that they are interacting with AI, before or at the time of interaction and even if it would be obvious, clearly and conspicuously, in plain language and without dark patterns (a hyperlink may be used); when AI is used in relation to a health care service or treatment, the provider must disclose it to the patient or their representative by the date the service is first provided (in an emergency, as soon as reasonably possible) (§ 552.051)
6. 6Enforcement: the Attorney General has exclusive authority (except licensing-agency sanctions under § 552.106), with no private right of action; an online complaint mechanism (due by September 1, 2026) and civil investigative demands on complaints received through it; written notice and no suit for 60 days, or at all if the person cures and gives the AG a written statement with supporting documentation and policy changes. Penalties: $10,000-$12,000 per curable violation or breached cure statement, $80,000-$200,000 per uncurable violation, $2,000-$40,000 per day of continued violation; the AG may also seek injunctions, attorney's fees, court costs and investigative expenses; a licensing agency may sanction a licensee found in violation, including a penalty of up to $100,000, if the AG recommends it. A rebuttable presumption of reasonable care applies; no liability if another person misuses the system or the defendant finds the violation through feedback, testing (including adversarial or red-team testing), state agency guidelines, or internal review while substantially complying with NIST's AI RMF Generative AI Profile or another nationally or internationally recognized AI risk management framework; no penalty action over an undeployed system (§§ 552.101-552.106)
7. 7Also: a Department of Information Resources regulatory sandbox lets approved participants test AI without a state license for up to 36 months (extendable for good cause), with quarterly reports (Chapter 552's Subchapter B duties and prohibitions cannot be waived); a seven-member Texas Artificial Intelligence Council (three appointed by the governor, two by the lieutenant governor, two by the speaker) that must train state agencies and local governments on AI but cannot issue binding rules or guidance (Chs. 553, 554); and biometric-identifier law changes: it no longer applies to training, processing or storing biometric identifiers to develop, train, evaluate or offer AI unless the system is used to uniquely identify a specific individual, or to developing or deploying AI to prevent, detect or respond to security incidents, identity theft, fraud, harassment or other illegal activity; identifiers captured for AI training and later used for another commercial purpose are subject to the law's possession, destruction and penalty rules; and an image online does not by itself establish notice and consent unless the person made it public (§ 503.001)
8. 8Signed by the Governor June 22, 2025 (Chapter 1174); effective January 1, 2026

Latest legislative action

Jun 22, 2025. Signed by the Governor; effective on 1/1/26

Sponsors (showing 5 of 36)

Roll call votes (showing 3 of 5)