Monitoring the Session

HB 2818

AI Division Bill Builds A New Office With Its Own Hires

Became law, effective Sep 1, 2025

Verdict: Smells

SmellsInitial review
Rep. Giovanni CapriglioneRHouse 98
Both charges, and why
Pitch: Government growth under a conservative banner

ACTUALLY

“(c) The department may hire the personnel necessary to”…

Bill text, Senate committee report version (S)

The bill creates a new AI division at the Department of Information Resources and authorizes new hires to staff it.

Pitch: Government growth under a conservative banner
New fee, fund, board or appointees

THE TEXT

“SUBCHAPTER S. ARTIFICIAL INTELLIGENCE DIVISION”…

Bill text, Senate committee report version (S)

The bill creates a new division inside the Department of Information Resources and lets the department hire staff for it. The caption names the division, so the new body is disclosed, but it is still new government sold as efficiency.

New fee, fund, board or appointees

Initial review · graded Oct 22, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the artificial intelligence division within the Department of Information Resources.

Caption from analyzed text · version S.

Summary

The statement of intent calls it “more efficient.” Vendors’ AI must do most of the work.

The bill orders the Department of Information Resources to set up a new artificial intelligence division and lets it hire staff, including through state universities. The division helps state agencies use generative AI to replace old computer systems and on other projects, either with the department's own AI tools or through vendors whose AI must do most of the work. For each project, the division must write a cost report showing the time and money saved, starting September 1, 2025.

Receipt

The receipt

89R-HB2818 · 2025-02-13

SOLD BY

+ 3 coauthors

ITEM

relating to the artificial intelligence division within the Department of Information Resources.

WHAT IT DOES

The statement of intent calls it “more efficient.” Vendors’ AI must do most of the work.

The bill orders the Department of Information Resources to set up a new artificial intelligence division and lets it hire staff, including through state universities. The division helps state agencies use generative AI to replace old computer systems and on other projects, either with the department's own AI tools or through vendors whose AI must do most of the work. For each project, the division must write a cost report showing the time and money saved, starting September 1, 2025.

CHARGES

[x] PITCH: GOVERNMENT GROWTH UNDER A CONSERVATIVE BANNER

ACTUALLY

“(c) The department may hire the personnel necessary to”…

Bill text, Senate committee report version (S)

The bill creates a new AI division at the Department of Information Resources and authorizes new hires to staff it.

[x] NEW FEE, FUND, BOARD OR APPOINTEESanalysis confidence 75%

THE TEXT

“SUBCHAPTER S. ARTIFICIAL INTELLIGENCE DIVISION”…

Bill text, Senate committee report version (S)

The bill creates a new division inside the Department of Information Resources and lets the department hire staff for it. The caption names the division, so the new body is disclosed, but it is still new government sold as efficiency.

TOTAL

Net to General Revenue · FY 2026($3,333,999)

LBB estimate, flow · fiscal note version F · ( ) = negative · source

Sources

Fiscal note · version F · May 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB2818, As Passed 2nd House: a negative impact of ($8,140,645) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

First year · FY 2026 · ($3,333,999)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Delivery of Government Efficiency
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
  9. Considered in formal meeting
  10. Committee substitute considered in committee
  11. Reported favorably as substituted
  12. Comte report filed with Committee Coordinator
  13. Committee report distributed
  14. Committee report sent to Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Read 2nd time
  18. Amended 1-Capriglione
  19. Record vote RV#533
  20. Passed to engrossment as amended
  21. Record vote RV#534
  22. Read 3rd time
  23. Passed
  24. Record vote RV#578
  25. Statement(s) of vote recorded in Journal
  26. Reported engrossed
  27. Received from the House
  28. Read first time
  29. Referred to Business & Commerce
  30. Scheduled for public hearing on . . .
  31. Considered in public hearing
  32. Left pending in committee
  33. Considered in public hearing
  34. Vote taken in committee
  35. Reported favorably as substituted
  36. Recommended for local & uncontested calendar
  37. Committee report printed and distributed
  38. Placed on intent calendar
  39. Rules suspended-Regular order of business
  40. Read 2nd time & passed to 3rd reading
  41. Vote recorded in Journal
  42. Three day rule suspended
  43. Record vote
  44. Read 3rd time
  45. Passed
  46. Record vote
  47. Senate passage as amended reported
  48. Senate Amendments distributed
  49. Senate Amendments Analysis distributed
  50. House concurs in Senate amendment(s)
  51. Record vote RV#3989
  52. Text of Senate Amendment(s)
  53. House concurs in Senate amendment(s)-reported
  54. Reported enrolled
  55. Signed in the House
  56. Signed in the Senate
  57. Sent to the Governor
  58. Signed by the Governor
  59. Effective on 9/1/25
FILED UNDER

GOVERNMENT GROWTH UNDER A CONSERVATIVE BANNER

THE TEXT

“(c) The department may hire the personnel necessary to”…

Bill text, Senate committee report version (S)

The bill creates a new AI division at the Department of Information Resources and authorizes new hires to staff it.

SIGNED FOR BY

House · 111 yea · 14 nay

Senate · 30 yea · 1 nay

Sources

House: Final passage · Apr 25, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 26, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 31, 2024 to Oct 29, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Capital One Financial Corporation Associates Political Fund$5,000.00

Capital One Financial Corporation Associates Political Fund

$5,000.00

Cash
$5,000.00
Paid by others
$0.00
Total
$5,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 14, 2024 to Jul 14, 2025. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jul 14, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101030508.

Murt Arnold$5,000.00
Jason Itkin$5,000.00
Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Capital One Financial Corporation Associates Political Fund

$5,000.00

Cash
$5,000.00
Paid by others
$0.00
Total
$5,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Dec 14, 2024 to Jul 14, 2025. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Jul 14, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101030508.

Votes7

House May 28, 2025

Yea
105
Nay
32
Present, not voting
2
Absent
1
Excused
10
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3989

Representative Capriglione moved to concur in the senate amendments to HB 2818. The motion to concur in the senate amendments to HB 2818 prevailed by (Record 3989): 105 Yeas, 32 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 105 (published)
  • Nay: 32 (published)
  • Present, not voting: 2 (published)
  • Absent: 1 (derived from named list)
  • Excused: 10 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea
30
Nay
1
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 1. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 1 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea
30
Nay
1
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Parker moved that 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. The motion prevailed by the following vote: Yeas 30, Nays 1.

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 1 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 26, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

Senator Parker moved to suspend the regular order of business to take up for consideration CSHB 2818 at this time on its second reading: CSHB 2818, Relating to the artificial intelligence division within the Department of Information Resources. The motion prevailed. Senator Middleton asked to be recorded as voting "Nay" on suspension of the regular order of business. The bill was read second time and was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House Apr 25, 2025

Yea
111
Nay
14
Present, not voting
1
Absent
4
Excused
20
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 578

HB 2818 was passed by (Record 578): 111 Yeas, 14 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 111 (published)
  • Nay: 14 (published)
  • Present, not voting: 1 (published)
  • Absent: 4 (derived from named list)
  • Excused: 20 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House Apr 24, 2025

Yea
137
Nay
10
Present, not voting
1
Absent
1
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 534

CSHB 2818, as amended, was passed to engrossment by (Record 534): 137 Yeas, 10 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 137 (published)
  • Nay: 10 (published)
  • Present, not voting: 1 (published)
  • Absent: 1 (derived from named list)
  • Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House Apr 24, 2025

Yea
136
Nay
10
Present, not voting
1
Absent
2
Excused
1
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 533

Amendment No. 1 was adopted by (Record 533): 136 Yeas, 10 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 136 (published)
  • Nay: 10 (published)
  • Present, not voting: 1 (published)
  • Absent: 2 (derived from named list)
  • Excused: 1 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses13
For
9
Against
0
On
4
Names

For

  • AARP Texas1 registration
  • City of Houston1 registration
  • Self2 registrations
  • TechNet2 registrations
  • Texas 20362 registrations
  • Texas Association of Business1 registration

On

  • Department of Informatin Resources1 registration
  • Department of Information Resources1 registration
  • Texas Department of Information Resources1 registration
  • Texas Dept of Information Resources1 registration
Sources

13 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal
Net to General Revenue · FY 2026($3,333,999)

LBB estimate, flow · fiscal note version F · ( ) = negative · source

Sources

Fiscal note · version F · May 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB2818, As Passed 2nd House: a negative impact of ($8,140,645) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

First year · FY 2026 · ($3,333,999)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Adversarial review by claude-opus-5-5 at high effort: sent to the editor.

Analysis of text version S by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Feb 13, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors
Sponsors

House committee · Delivery of Government Efficiency · Committee vote 12 aye, 0 nay, 1 absent · Out of committee

Senate committee · Business & Commerce · Committee vote 11 aye, 0 nay · Out of committee

Companion

SB 1700 by Parker (identical)

Subjects

Artificial Intelligence (IQ7C5)

Purchasing--State

State Agencies, Boards & Commissions

INFORMATION RESOURCES, DEPARTMENT OF

Text

The text as introduced · 418 words

89R11852 LRM-D

By: Capriglione
H.B. No. 2818

A BILL TO BE ENTITLED

AN ACT

relating to the artificial intelligence division within the

Department of Information Resources.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 2054, Government Code, is amended by

adding Subchapter S to read as follows:

SUBCHAPTER S. ARTIFICIAL INTELLIGENCE DIVISION

Sec. 2054.701. ESTABLISHMENT AND ADMINISTRATION OF

DIVISION. (a) The department shall establish an artificial

intelligence division within the department.

(b) The executive director shall direct the administration

and oversight of the artificial intelligence division, including

the division's organization within the department.

(c) The department may hire the personnel necessary to

administer the duties of the division, including hiring personnel

through institutions of higher education, as defined by Section

61.003, Education Code.

Sec. 2054.702. GENERATIVE ARTIFICIAL INTELLIGENCE

TECHNOLOGY. (a) The division shall assist state agencies and other

entities that use the department's services in the implementation

of generative artificial intelligence technology for:

(1) projects to modernize or replace legacy systems,

as defined by Section 2054.571; and

(2) other projects appropriate for the use of

generative artificial intelligence technology as determined by the

department.

(b) In assisting agencies and entities with projects under

Subsection (a), the division may:

(1) use generative artificial intelligence technology

developed or procured by the department to complete the project; or

(2) contract with a vendor to use generative

artificial intelligence technology to complete the project.

(c) If the division contracts with a vendor under Subsection

(b), the vendor's generative artificial intelligence technology

must complete at least 90 percent of the work required to complete

the contract.

Sec. 2054.703. COST ANALYSIS REPORT. The division shall

prepare a cost analysis report for each project completed under

Section 2054.702 that includes:

(1) a summary of the time, money, and resources saved

by using a generative artificial intelligence technology compared

to the time, money, and resources that would have been required

using traditional systems to perform equivalent tasks; and

(2) a concise overview focused on information

demonstrating the cost efficiencies achieved by using generative

artificial intelligence technology, such as the amount of time and

money saved in the procurement process.

Sec. 2054.704. RULES. The department may adopt the rules

necessary to establish and administer the division.

SECTION 2. As soon as practicable after the effective date

of this Act, the Department of Information Resources shall adopt

the rules necessary to implement Subchapter S, Chapter 2054,

Government Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2025.