§ 2054.705 — RULES.

Texas § 2054.705

• Jurisdiction: Texas
• Code GV: Government Code

Text

Sec. 2054.705. RULES. The department may adopt the rules necessary to establish and administer the division.
Subchapter S, consisting of Secs. 2054.701 to 2054.713, was added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5.
For another Subchapter S, consisting of Secs. 2054.651 to 2054.654, added by Acts 2025, 89th Leg., R.S., Ch. 951 (H.B. 5195 ), Sec. 1, see Sec. 2054.651 et seq., post.
For another Subchapter S, consisting of Secs. 2054.701 to 2054.705, added by Acts 2025, 89th Leg., R.S., Ch. 1079 (H.B. 2818 ), Sec. 1, see Sec. 2054.701 et seq., post.
SUBCHAPTER S. ARTIFICIAL INTELLIGENCE
Sec. 2054.701. DEFINITION. In this subchapter, "unlawful harm" means any condition in which the use of an artificial intelligence system results in a consequential decision that causes harm to an individual who is a member of a state or federally protected class in violation of law. The term does not include a developer's or deployer's offer, license, or use of a heightened scrutiny artificial intelligence system for the sole purpose of testing the system before deployment to identify, mitigate, or otherwise ensure compliance with state and federal law.
Sec. 2054.702. ARTIFICIAL INTELLIGENCE SYSTEM CODE OF ETHICS. (a) The department by rule shall establish an artificial intelligence system code of ethics for use by state agencies and local governments that procure, develop, deploy, or use artificial intelligence systems.
(b) At a minimum, the artificial intelligence system code of ethics must include guidance for the deployment and use of artificial intelligence systems and heightened scrutiny artificial intelligence systems that aligns with the Artificial Intelligence Risk Management Framework (AI RMF 1.0) published by the National Institute of Standards and Technology. The guidance must address:
(1) human oversight and control;
(2) fairness and accuracy;
(3) transparency, including consumer disclosures;
(4) data privacy and security;
(5) public and internal redress, including accountability and liability; and
(6) the frequency of evaluations and documentation of improvements.
(c) State agencies and local governments shall adopt the code of ethics developed under this section.
Sec. 2054.703. MINIMUM STANDARDS FOR HEIGHTENED SCRUTINY ARTIFICIAL INTELLIGENCE SYSTEMS. (a) The department by rule shall develop minimum risk management and governance standards for the development, procurement, deployment, and use of heightened scrutiny artificial intelligence systems by a state agency or local government.
(b) The minimum standards must be consistent with the Artificial Intelligence Risk Management Framework (AI RMF 1.0) published by the National Institute of Standards and Technology and must:
(1) establish accountability measures, such as required reports describing the use of, limitations of, and safeguards for the heightened scrutiny artificial intelligence system;
(2) require the assessment and documentation of the heightened scrutiny artificial intelligence system's known security risks, performance metrics, and transparency measures:
(A) before deploying the system; and
(B) at the time any material change is made to:
(i) the system;
(ii) the state or local data used by the system; or
(iii) the intended use of the system;
(3) provide to local governments resources that advise on managing, procuring, and deploying a heightened scrutiny artificial intelligence system, including data protection measures and employee training; and
(4) establish guidelines for:
(A) risk management frameworks, acceptable use policies, and training employees; and
(B) mitigating the risk of unlawful harm by contractually requiring vendors to implement risk management frameworks when deploying heightened scrutiny artificial intelligence systems on behalf of state agencies or local governments.
(c) State agencies and local governments shall adopt the standards developed under Subsection (a).
Sec. 2054.704. EDUCATIONAL OUTREACH PROGRAM. (a) The department shall develop educational materials on artificial intelligence systems to promote the responsible use of the systems and awareness of the risks and benefits of system use, explain consumer rights in relation to the systems, and describe risk mitigation techniques.
(b) The department shall develop training materials for state and local government employees and the general public. The training materials must be made available on the department's public Internet website.
(c) The department shall host statewide forums and training sessions on artificial intelligence systems best practices for state and local government employees.
(d) The department may:
(1) use money appropriated to the department to produce materials required by this section; and
(2) contract with a vendor to produce those materials.
Sec. 2054.705. PUBLIC SECTOR ARTIFICIAL INTELLIGENCE SYSTEMS ADVISORY BOARD. (a) A public sector artificial intelligence systems advisory board is established to assist state agencies in the development, deployment, and use of artificial intelligence systems.
(b) The advisory board shall:
(1) obtain and disseminate information on artificial intelligence systems, including use cases, policies, and guidelines;
(2) facilitate shared resources between state agencies;
(3) consult with the department on artificial intelligence systems issues;
(4) identify opportunities:
(A) for state agencies to implement artificial intelligence systems to reduce administrative burdens; and
(B) to streamline the state procurement process for artificial intelligence systems; and
(5) recommend elimination of rules that restrict the innovation of artificial intelligence systems.
(c) The department shall provide administrative support for the advisory board.
(d) The advisory board is composed of eight members as follows:
(1) six members representing state agencies, including one member representing an agency with fewer than 150 employees, appointed by the governor or the governor's designee; and
(2) two public members with expertise in technology, appointed by the governor or the governor's designee.
(e) Advisory board members serve two-year terms. Advisory board members may be reappointed.
(f) Advisory board members are not entitled to compensation or reimbursement of expenses for service on the advisory board.

Legislative History

Added by Acts 2025, 89th Leg., R.S., Ch. 1079 (H.B. 2818 ), Sec. 1, eff. September 1, 2025. Added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5, eff. September 1, 2025. Added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5, eff. September 1, 2025. Added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5, eff. September 1, 2025. Added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5, eff. September 1, 2025. Added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5, eff. September 1, 2025.