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TX SB2966: Relating to establishing a framework to govern the use of artificial intelligence systems in critical decision-making by private companies and ensure…

Dead/Failed Texas · 2025–2026 session

Last verified Oct 10, 2026 · official bill text

SB2966 · where it stands

This bill did not become law (dead/failed) · last action Apr 7, 2025.

What do these statuses mean?
Introduced
Filed in the legislature; may be waiting for a committee hearing.
Passed a chamber
Approved by one or both chambers; awaiting further action.
Enacted
Signed into law, or became law without a signature or over a veto.
Effective date
The date the law says it takes effect. Once it has passed, the page shows "Effective" and the date. A court order can still block a law; if we know of one, the summary says so.
Dead / vetoed
Vetoed, failed, or the session ended without action.
View full title

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.

In one paragraph

Texas SB 2966 (2025), as introduced, would have added Business & Commerce Code Chapter 551 requiring a private company that uses an AI system to make a consequential decision, meaning one with a material, legal or similarly significant effect on a consumer, to establish a framework to govern the system's use to protect consumers. A company that violates it would be liable for a civil penalty not to exceed one dollar. No enrolled version exists, so it died June 2, 2025.

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

What it means for business

No duties for businesses because the bill died. Had it passed, private companies using AI in consequential consumer decisions would have had to create a governance framework, with a civil penalty of at most one dollar.

Key provisions

  1. Sec. 551.001: 'consequential decision' means 'any decision that has a material, legal, or similarly significant effect on a consumer'
  2. Sec. 551.002: a private company using AI for a consequential decision 'shall establish a framework to govern the use of the system to ensure protection of consumers'
  3. Sec. 551.003: a violating company 'is liable for a civil penalty not to exceed one dollar'
  4. The text does not define 'private company' or 'consumer', does not say what the framework must contain, and names no enforcing agency
  5. Section 2: would have taken effect September 1, 2025; no enrolled version exists

Latest legislative action

Apr 7, 2025. Referred to Business & Commerce

Sponsors

NameRoleDistrict
R Sponsor SD-005

Topics and industries

Related topics

Automated Decision-MakingComprehensive AIAI Liability

Affected industries

TechnologyConsumer ProtectionFinance

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

Related AI laws in Texas

All Texas bills →
HB1709 Relating to the regulation and reporting on the use of artificial intelligence s HB5496 Relating to the disclosure and use of artificial intelligence. SB2373 Relating to financial exploitation or financial abuse using artificially generat HB2060 Relating to the creation of the artificial intelligence advisory council. SB1964 Relating to the regulation and use of artificial intelligence systems and the ma HB149 Relating to regulation of the use of artificial intelligence systems in this sta

Same topic in other states

Colorado SB189 Automated Decision-Making Technology Maryland SB936 Consumer Protection - High-Risk Artificial Intelligence - Developer and Deployer Montana SB212 Creating the Right to Compute Act and requiring a risk management policy for cri California SCR17 Artificial intelligence. New York A09654 Enacts the New York Artificial Intelligence Civil Rights Act establishing protec Massachusetts H97 Protecting consumers in interactions with artificial intelligence systems