Monitoring the Session

SB 2966

Rules for company AI decisions

Died in committee

Verdict: No flags

No flagsReviewed
Sen. Charles SchwertnerRSenate 5

Editor's call: No flags. On Nov 1, 2026 the editor checked this charge against the bill's caption and removed it.

Corrected Nov 1, 2026

Corrected Nov 1, 2026 · We checked this summary against the bill text and fixed it.

Reviewed · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

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.

Caption from analyzed text · version I.

Summary

Companies using AI for consequential decisions must create a consumer-protection framework.

The bill tells any private company that uses a machine learning-based system to make a decision with a material, legal or similarly significant effect on a consumer that it must set up a framework to govern that use. It never says what the framework must contain, who checks it, or what a consumer can do if it fails. The only consequence is a civil penalty that cannot exceed one dollar, so almost nothing changes for companies or consumers.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 14, 2025 and referred to the Senate Business & Commerce committee. No public hearing. The bill died.

Receipt

The receipt

89R-SB2966 · 2025-03-14

SOLD BY

Sen. Charles SchwertnerRSenate 5

ITEM

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.

WHAT IT DOES

Companies using AI for consequential decisions must create a consumer-protection framework.

The bill tells any private company that uses a machine learning-based system to make a decision with a material, legal or similarly significant effect on a consumer that it must set up a framework to govern that use. It never says what the framework must contain, who checks it, or what a consumer can do if it fails. The only consequence is a civil penalty that cannot exceed one dollar, so almost nothing changes for companies or consumers.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Business & Commerce
FILED UNDER

No verified beat found.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Charles Schwertner

Donors

Donors report through Texans for Charles Schwertner.

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 · Jul 1, 2024 to Oct 24, 2026. 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.

Money

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

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

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

Confirming read by claude-fable-5-1 at high effort: sent to the editor.

Opus 5.5 reviewed the candidate before Fable's confirmation read.

Analysis of text version I by claude-fable-5-1, Oct 21, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 14, 2025

04/07/2025 S Referred to Business & Commerce

Texas Legislature Online · Introduced

Data snapshot Nov 1, 2026 at 10:30 AM CST. Grades, charges, quotes and corrections follow the published record.

Senate committee · Business & Commerce · Final status: Died in committee

Subjects

Artificial Intelligence (IQ7C5)

Business & Commerce--General

Consumer Protection

Occupational Regulation--Other Trades & Professions

Text

The text as introduced · 208 words

89R17835 SCR-D

By: Schwertner
S.B. No. 2966

A BILL TO BE ENTITLED

AN ACT

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.

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

SECTION 1. Subtitle C, Title 11, Business & Commerce Code,

is amended by adding Chapter 551 to read as follows:

CHAPTER 551. ALGORITHMIC ARTIFICIAL INTELLIGENCE SYSTEMS

Sec. 551.001. DEFINITIONS. In this chapter:

(1) "Artificial intelligence system" means any

machine learning-based system that, for any explicit or implicit

objective, infers from the inputs such system receives how to

generate outputs, including content, decisions, predictions, and

recommendations, that can influence physical or virtual

environments.

(2) "Consequential decision" means any decision that

has a material, legal, or similarly significant effect on a

consumer.

Sec. 551.002. ARTIFICIAL INTELLIGENCE FRAMEWORK. A private

company that uses an artificial intelligence system to make a

consequential decision shall establish a framework to govern the

use of the system to ensure protection of consumers.

Sec. 551.003. CIVIL PENALTY. A private company that

violates this section is liable for a civil penalty not to exceed

one dollar.

SECTION 2. This Act takes effect September 1, 2025.