Harrison AI Bill Gives Lab Testers Limited Legal Boundaries

The text as introduced · 2,409 words

By: Harrison
H.B. No. 3808

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the artificial intelligence advisory

council and the establishment of the artificial intelligence

learning laboratory.

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 ADVISORY COUNCIL

Sec. 2054.621. DEFINITIONS. In this subchapter:

(1) "Algorithm" means a computerized procedure

consisting of a set of steps used to accomplish a determined task.

(2) "Artificial intelligence systems" means systems

capable of:

(A) perceiving an environment through data

acquisition and processing and interpreting the derived

information to take an action or actions or to imitate intelligent

behavior given a specific goal; and

(B) learning and adapting behavior by analyzing

how the environment is affected by prior actions.

(3) "Automated decision system" means an algorithm,

including an algorithm incorporating machine learning or other

artificial intelligence techniques, that uses data-based analytics

to make or support governmental decisions, judgments, or

conclusions.

(4) "Automated final decision system" means an

automated decision system that makes final decisions, judgments, or

conclusions without human intervention.

(5) "Automated support decision system" means an

automated decision system that provides information to inform the

final decision, judgment, or conclusion of a human decision maker.

(6) "Council" means the artificial intelligence

advisory council established under this subchapter.

Sec. 2054.622. ARTIFICIAL INTELLIGENCE ADVISORY COUNCIL.

(a) The council is composed of the following seven members:

(1) one member of the house of representatives

appointed by the speaker of the house of representatives;

(2) one member of the senate appointed by the

lieutenant governor;

(3) the executive director or the executive director's

designee; and

(4) the following four members appointed by the

governor:

(A) an expert on ethics;

(B) an expert on artificial intelligence

systems;

(C) an expert on law enforcement usage of

artificial intelligence systems; and

(D) an expert on constitutional and legal rights.

(b) The council members appointed under Subsections (a)(1)

and (2) shall serve as co-chairs of the council.

(c) A member of the council is not entitled to compensation

or reimbursement for expenses.

(d) The department shall provide administrative support for

the council.

(e) The council shall meet at the call of the co-chairs. The

council may meet in person or by telephone conference call,

videoconference, or another similar telecommunication method.

Notwithstanding Chapter 551 or any other law, a meeting held by

telephone conference call, videoconference, or another similar

telecommunication method is subject to the requirements of Sections

551.125(c), (d), (e), and (f).

(f) The council shall study and monitor artificial

intelligence systems developed, employed, or procured by state

agencies. In carrying out its duties under this section, the

council shall:

(1) assess the need for a state code of ethics for

artificial intelligence systems in state government;

(2) review automated decision systems inventory

reports submitted by state agencies under Section 2054.623,

including a review of:

(A) the effect of the automated decision systems

on the constitutional or legal rights, duties, or privileges of the

residents of this state; and

(B) the potential benefits, liabilities, or

risks that this state could incur as a result of implementing the

automated decision systems; and

(3) recommend administrative actions that state

agencies may take without further legislative authorization.

(g) Not later than December 1, 2026, the council shall

submit a report to the governor and the legislature that includes:

(1) a summary of the council's findings after

reviewing:

(A) the automated decision systems inventory

reports submitted under Section 2054.623; and

(B) the results of the artificial intelligence

learning laboratory under Section 2054.624;

(2) a summary of the recommendations of any relevant

national bodies on artificial intelligence systems in state

government;

(3) an assessment of the impact of using artificial

intelligence systems in state government on the liberty, finances,

livelihood, and privacy interests of the residents of this state;

(4) recommendations of the least stringent policies

necessary to:

(A) protect the privacy and interests of the

residents of this state from any diminution caused by employment of

artificial intelligence systems by state government;

(B) ensure that the residents of this state are

free from unfair discrimination caused or compounded by the

employment of artificial intelligence systems in state government;

and

(C) promote workforce knowledge of artificial

intelligence technology and the development of ethical artificial

intelligence systems in state government; and

(5) any other information that the council considers

relevant.

(h) Section 2110.008 does not apply to the council.

Sec. 2054.623. AUTOMATED DECISION SYSTEMS INVENTORY

REPORT. (a) Not later than July 1, 2026, each agency in the

executive and legislative branches of state government, using money

appropriated to the agency by this state, shall submit an inventory

report of all automated decision systems that are being developed,

employed, or procured by the agency. For each automated decision

system, the inventory report must include a description of:

(1) the name and vendor of the automated decision

system, if any;

(2) the automated decision system's general

capabilities, including:

(A) reasonably foreseeable capabilities outside

the scope of the agency's proposed use; and

(B) whether the automated decision system is used

or may be used for independent decision-making powers and the

impact of those decisions on the residents of this state;

(3) the types of data inputs that the technology uses;

(4) how the data described by Subdivision (3) is

generated, collected, and processed;

(5) the types of data the automated decision system is

reasonably likely to generate;

(6) whether the automated decision system has been

tested by an independent third party, has a known bias, or is

untested for bias;

(7) the purpose and proposed use of the automated

decision system, including:

(A) the decisions the automated decision system

will be used to make or support;

(B) whether the automated decision system is an

automated final decision system or an automated support decision

system; and

(C) the automated decision system's intended

benefits, including any data or research relevant to the outcome of

those results;

(8) how automated decision system data is securely

stored and processed and whether the agency intends to share access

to the automated decision system or data from that automated

decision system with any other entity, and why; and

(9) the information technology fiscal impacts of the

automated decision system, including:

(A) initial acquisition costs and ongoing

operating costs, such as maintenance, licensing, personnel, legal

compliance, use auditing, data retention, and security costs;

(B) any cost savings that would be achieved

through the use of the technology; and

(C) any current or potential sources of funding,

including any subsidies or free products being offered by vendors

or governmental entities.

(b) Not later than March 1, 2026, the council, in

consultation with the department, shall prescribe the form,

contents, and manner of submission of the automated decision

systems inventory report required under this section.

(c) Each agency shall submit the report required under this

section to the:

(1) department;

(2) council; and

(3) standing committees of the senate and house of

representatives with primary jurisdiction over state agency

information technology.

Sec. 2054.624. ARTIFICIAL INTELLIGENCE LEARNING

LABORATORY. (a) In this section:

(1) "Learning laboratory" means the artificial

intelligence learning laboratory established under this section.

(2) "Participant" means an entity selected by the

council to participate in the artificial intelligence learning

laboratory established under this section, including a state

agency, a business entity, a nonprofit organization, or an open

source project.

(3) "Regulatory mitigation agreement" means an

agreement between the council and a participant for the purpose of

permitting the participant to use and test artificial intelligence

systems with limited legal and regulatory boundaries.

(4) "State agency" means, notwithstanding Section

2054.003, an agency in the legislative or executive branch of state

government.

(b) The council shall, with assistance from the department,

establish the artificial intelligence learning laboratory. The

council shall operate the learning laboratory to:

(1) evaluate the benefits, risks, and impact of

regulations on artificial intelligence;

(2) encourage the development of artificial

intelligence in state agencies; and

(3) produce recommendations for the least stringent

legislation on or regulation of artificial intelligence.

(c) The council shall set, and update as necessary, a

learning agenda for the learning laboratory to establish specific

areas of artificial intelligence policy to study. The learning

agenda must outline the parameters for the type of artificial

intelligence systems to be tested by a participant. In setting the

learning agenda, the council may consult state agencies, industry

leaders, and other key stakeholders the council considers

appropriate.

(d) The council shall establish an application process and

criteria to select participants for the learning laboratory. The

council shall, in selecting participants, consider:

(1) the relevance and utility of the applicant's

artificial intelligence technology to the learning agenda;

(2) the applicant's expertise and knowledge specific

to the learning agenda;

(3) the applicant's plan to monitor and minimize use

when testing the artificial intelligence systems;

(4) whether the applicant is eligible for regulatory

mitigation as described by Section 2054.626; and

(5) any other factor the council determines relevant.

(e) In collaboration with each participant, the council

shall establish benchmarks and assess outcomes of participation in

the learning laboratory.

(f) An applicant approved for participation must enter into

a regulatory mitigation agreement under Section 2054.625.

(g) A participant of the learning laboratory shall conduct

experiments using artificial intelligence systems, automated

decision systems, automated final decision systems, or automated

support decision systems that fall within the scope of the learning

agenda.

(h) A participant shall retain all records and provide

requested information and findings to the council. A participant

shall submit a report to the council, including:

(1) a summary of the proposed artificial intelligence

systems;

(2) the results from operating the artificial

intelligence systems; and

(3) any other information the council determines as

necessary and relevant.

(i) The council shall submit to the legislature, the

standing committees of each house with jurisdiction over artificial

intelligence systems, and the governor a report containing the

results of the learning laboratory findings and suggestions of the

least stringent legal and regulatory policies in relation to the

artificial intelligence systems studied by the learning

laboratory.

(j) The department may adopt rules to implement this

section.

Sec. 2054.625. REGULATORY MITIGATION AGREEMENTS. (a) A

participant in the learning laboratory shall enter into an

agreement as provided by this section.

(b) The agreement must provide:

(1) limitations on the artificial intelligence

systems to be tested, including:

(A) the number and types of users;

(B) geographic limitations; and

(C) any other limitation the department

considers advisable;

(2) procedures to protect the health and safety of

this state during the testing period;

(3) that the participant does not have any expectation

of a property right or license to participate in the learning

laboratory;

(4) that committing certain violations of law or a

violation of the agreement, as determined by the department, is

grounds for removal from the learning laboratory;

(5) that participation in the learning laboratory does

not constitute an endorsement by the state and is not a factor in

any criminal or civil proceeding;

(6) that the state is not responsible for any claims,

liabilities, damages, losses, or expenses arising out of the

participant's involvement in the learning laboratory; and

(7) that the participant will:

(A) provide information to the department and any

other state agency the department considers necessary to

successfully test artificial intelligence systems under the

learning laboratory program; and

(B) report to the department under the terms

acceptable to the department.

(c) An agreement under this section may be entered into by a

participant, the department, and other state agencies the

department considers necessary for regulatory mitigation as

described by Subsection (d). The department shall consult with

other state agencies on appropriate terms of regulatory mitigation

to provide under Subsection (d).

(d) An agreement under this section may provide for the

following regulatory mitigation measures:

(1) circumstances under which a participant:

(A) is or is not required to provide restitution

to a user of the artificial intelligence system under testing;

(B) may have an opportunity to correct any

violations of law that occur from using the system described by this

section before penalties are imposed by the state; and

(C) may be entitled to reduced civil penalties

during the period in which the agreement is in effect; and

(2) any other measures to address risks that the

department considers advisable.

(e) An agreement under this section has a term of one year

and may be extended on request by the participant for an additional

year, if the request is submitted not later than 30 days before the

date that the agreement's term ends. The department shall approve

or deny the request before the date that the agreement's term ends.

Sec. 2054.626. ELIGIBILITY. An applicant for participation

in the learning laboratory is eligible for regulatory mitigation as

described by Section 2054.625 if:

(1) the applicant has the technical expertise and

capability to responsibly deploy and test the proposed artificial

intelligence systems;

(2) the applicant has sufficient financial resources

to meet obligations during the testing period;

(3) the proposed artificial intelligence systems

provide substantial consumer benefits that may outweigh identified

risks from permitting regulatory mitigation;

(4) the applicant has an effective plan to monitor and

minimize identified risks from testing; and

(5) the scale, scope, and duration of proposed testing

is appropriately limited based on risk assessments.

Sec. 2054.627. COUNCIL ABOLISHED; EXPIRATION OF

SUBCHAPTER. The council is abolished and this subchapter expires

September 1, 2029.

SECTION 2. (a) As soon as practicable after the effective

date of this Act but not later than October 1, 2025, the appropriate

appointing authorities shall appoint the members to the artificial

intelligence advisory council as required by Section 2054.622,

Government Code, as added by this Act.

(b) Not later than November 1, 2025, the advisory council

established under Subchapter S, Chapter 2054, Government Code, as

added by this Act, shall hold its initial meeting.

(c) Not later than December 1, 2025, the advisory council

established under Subchapter S, Chapter 2054, Government Code, as

added by this Act, shall establish the artificial intelligence

learning laboratory as required by Section 2054.624, Government

Code, as added by this Act.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.