In one paragraph
Texas's HB 2818 requires the Department of Information Resources (DIR) to establish an artificial intelligence division. The division must help state agencies and other entities that use DIR's services implement generative AI for projects to modernize or replace legacy systems and other projects DIR finds appropriate, using DIR's own generative AI or contracting with a vendor, whose generative AI must then complete a majority of the project work. For each completed project, the division must prepare a cost analysis report on the time, money and resources saved compared with traditional systems. Signed June 20, 2025; effective September 1, 2025.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
No duties for businesses. The division may contract with AI vendors for generative AI projects; a vendor's generative AI must then complete a majority of the project work.
Key provisions
- DIR must establish an AI division, administered and overseen by DIR's executive director; DIR may hire the personnel needed, including through institutions of higher education (new Gov't Code Subchapter S, Chapter 2054, § 2054.701)
- The division must assist state agencies and other entities that use DIR's services in implementing generative AI for projects to modernize or replace legacy systems (as defined in § 2054.571) and other projects DIR determines are appropriate (§ 2054.702(a))
- The division may use generative AI developed or procured by DIR, or contract with a vendor to use generative AI; a vendor's generative AI technology must complete a majority of the work required for the project (§ 2054.702(b), (c))
- For each completed project, the division must prepare a cost analysis report summarizing the time, money and resources saved compared with traditional systems and showing the cost and time efficiencies achieved (§ 2054.703)
- DIR must coordinate the division's work with its other AI duties to streamline resources, may adopt rules to establish and administer the division, and must adopt implementing rules as soon as practicable (§§ 2054.704, 2054.705; Section 2)
- Signed by the Governor June 20, 2025 (Chapter 1079); effective September 1, 2025
Latest legislative action
Jun 20, 2025. Signed by the Governor; effective on 9/1/25
Sponsors (showing 5 of 15)
| Name | Role |
|---|---|
| Bernal | Primary |
| Cain | Primary |
| Capriglione | Primary |
| King, Tracy O. | Primary |
| Lucio | Primary |
Roll call votes (showing 3 of 4)
passage May 28, 2025
105 yea32 nay2 otherPassed
Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSHB 2818 be placed on its third reading and final passage. May 26, 2025
30 yea1 nayPassed
passage Apr 25, 2025
111 yea14 nay1 otherPassed
Topics and industries
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Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error