Record STMT-W726555Legally binding

S.B. No. 1964

Legislation State lawNorthern America · USadopted

This Texas state legislation regulates the use of artificial intelligence systems and data management by governmental entities. It requires state agencies and local governments to maintain inventories of AI systems, adopt an AI code of ethics aligned with the NIST AI RMF 1.0, and implement minimum risk management standards for heightened scrutiny AI systems. The act also establishes an advisory board, a testing sandbox program, public disclosure and impact assessment requirements, and a complaint web page managed by the attorney general.

Summary and content fields are drawn from the document text and are pending editorial review.

Who issued it

Legislature of the State of TexasLegislature · US

Lead issuer

Legal forceLegally binding

Under whose authorityState law

Judged fromfull text

Who it governs

State or provincial governmentGeneral publicRegulatorsPublic sector bodiesAI developers and providersAI deployers and users

This act is for Texas state agencies, local governments, public sector officials, vendors contracting with the state, and the general public interacting with government AI systems.

Sectors

Public administration · government entities and state agencies

What the document contains

What's covered

The document covers the procurement, development, deployment, and use of artificial intelligence systems by Texas state agencies and local governments. It establishes governance frameworks, mandatory inventories, ethics codes, heightened scrutiny standards, impact assessments, a sandbox testing program, and enforcement mechanisms through the attorney general.

What's missing

The text does not regulate private sector commercial AI development or deployment unrelated to government contracts or public-facing interactions with state entities.

Key takeaways

State agencies and local governments must inventory and review their deployed artificial intelligence systems and heightened scrutiny AI systems.
The Department of Information Resources must establish an AI code of ethics and minimum risk management standards aligned with the NIST AI RMF 1.0.
State agencies deploying public-facing AI or systems making consequential decisions must provide clear public disclosures and standardized notices.
Vendors deploying heightened scrutiny AI systems must conduct impact assessments for risks of unlawful harm and maintain compliance.
The attorney general and the Department of Information Resources will establish a complaint web page for public reporting of AI-related harms.

Principles it states

Human oversight and controlFairness and accuracyTransparency, including consumer disclosuresData privacy and securityPublic and internal redress, including accountability and liability

Outline

· SECTION 1. Definitions
· SECTION 2. Information technology infrastructure inventory
· SECTION 3. Agency and local government review requirements
· SECTION 4. Data management officers and open data
· SECTION 5. Subchapter S. Artificial Intelligence
  - Sec. 2054.701. Definition
  - Sec. 2054.702. Artificial Intelligence System Code of Ethics
  - Sec. 2054.703. Minimum Standards for Heightened Scrutiny Artificial Intelligence Systems
  - Sec. 2054.704. Educational Outreach Program
  - Sec. 2054.705. Public Sector Artificial Intelligence Systems Advisory Board
  - Sec. 2054.706. Artificial Intelligence System Sandbox Program
  - Sec. 2054.707. Disclosure Requirements
  - Sec. 2054.708. Impact Assessments
  - Sec. 2054.709. Enforcement
  - Sec. 2054.710. Artificial Intelligence System Complaint Web Page
  - Sec. 2054.711. Standardized Notice
  - Sec. 2054.712. Efficient Use of Resources
  - Sec. 2054.713. Rules
· SECTION 6. Implementation duties
· SECTION 7. Effective date

Issued30 May 2025

Length3,429 words · 17 pages

FormatNot recorded

Scopesubnational

How it scores

Pending review

Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.

Accountability

4/5

Clear responsibility for AI outcomes

establish accountability measures, such as required reports describing the use of, limitations of, and safeguards for the heightened scrutiny artificial intelligence system

Sec. 2054.703. MINIMUM STANDARDS FOR HEIGHTENED SCRUTINY ARTIFICIAL INTELLIGENCE SYSTEMS.

screening score · 2026-10-24

Human Dignity

0/5

Respect for the inherent worth of persons

screening score · 2026-10-24

Enforcement

4/5

Consequences and compliance mechanisms with real force

If the vendor fails to cure the violation before the 31st day after the date the vendor receives the notice of intent to void the contract under Subsection (d), the state agency may void the contract without further obligation to the vendor.

Sec. 2054.709. ENFORCEMENT.

screening score · 2026-10-24

Impact Assessment

4/5

Required assessment of an AI system's risks/impacts before or during use

A state agency that deploys or uses a heightened scrutiny artificial intelligence system or a vendor that contracts with a state agency for the deployment or use of a heightened scrutiny artificial intelligence system shall conduct a system assessment that outlines

Sec. 2054.708. IMPACT ASSESSMENTS.

screening score · 2026-10-24

Topics

artificial_intelligence public_sector risk_management transparency compliance procurement