HB 405

Relating to requiring a business in this state to disclose the use of certain personalized dynamic pricing models.

Filed

Verdict: Smells

SmellsInitial review

Rep. Mary E. GonzálezDHouse 75

Both charges, and why

Dragnet

THE CAPTION

…“of certain personalized dynamic pricing models.”

Caption, introduced version (I)

THE TEXT

…“or service based on variables related to the market or a consumer.”

Bill text, introduced version (I)

The caption targets personalized pricing, but the definition also covers any model that sets prices from market variables, so ordinary AI-driven market pricing that is not personalized to the shopper is swept into the disclosure duty.

Dragnet

The hole

THE TEXT

…“determine the price of a good must disclose use of the model to each”…

Bill text, introduced version (I)

The definition covers goods or services, but the duty only applies to pricing of a good, so AI pricing of services escapes the disclosure.

The hole

Initial review · graded Nov 9, 2026 · How we grade

Caption

relating to requiring a business in this state to disclose the use of certain personalized dynamic pricing models.

Caption from analyzed text · version I.

Summary

The bill makes any business that sets the price of a good with a pricing model run by artificial intelligence tell each customer that it does so.

The bill makes any business that sets the price of a good with a pricing model run by artificial intelligence tell each customer that it does so. The notice must be clear, must explain how the model uses AI to set the price, and must appear at the point of sale in a store or as an on-screen notice the shopper has to acknowledge before buying online. A business that skips the notice can be pursued under the state's deceptive trade practices law starting September 1, 2027.

Receipt

The receipt

90R-HB405 · 2026-11-09

SOLD BY

Rep. Mary E. GonzálezDHouse 75

ITEM

relating to requiring a business in this state to disclose the use of certain personalized dynamic pricing models.

WHAT IT DOES

The bill makes any business that sets the price of a good with a pricing model run by artificial intelligence tell each customer that it does so.

CHARGES

[x] DRAGNETanalysis confidence 50%

THE CAPTION

…“of certain personalized dynamic pricing models.”

Caption, introduced version (I)

THE TEXT

…“or service based on variables related to the market or a consumer.”

Bill text, introduced version (I)

[x] THE HOLEanalysis confidence 40%

THE TEXT

…“determine the price of a good must disclose use of the model to each”…

Bill text, introduced version (I)

The definition covers goods or services, but the duty only applies to pricing of a good, so AI pricing of services escapes the disclosure.

TOTAL

No fiscal note in the loaded record.

HISTORY

Nov 9, 2026Filed

FILED UNDER

No verified beat found.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Mary E. González

Donors

Texas Trial Lawyers Association PAC$10K Coalition for Working Families PAC$10K Texas Sands PAC$8K

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 16, 2024 to Jun 13, 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.

Texas Trial Lawyers Association PAC$10,000.00

Texas Trial Lawyers Association PAC

$10,000.00

Cash: $10,000.00
Paid by others: $0.00
Total: $10,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 11, 2024 to Mar 30, 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.

Report IDs: 100985912, 101032788, 101058648.

Coalition for Working Families PAC$10,000.00

Coalition for Working Families PAC

$10,000.00

Cash: $10,000.00
Paid by others: $0.00
Total: $10,000.00

Also funds 24 other sitting lawmakers.

Derived recipient stock · Dec 25, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · on Jan 5, 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.

Report IDs: 101058648.

Texas Sands PAC$8,000.00

Texas Sands PAC

$8,000.00

Cash: $8,000.00
Paid by others: $0.00
Total: $8,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jul 22, 2024 to Dec 9, 2024. 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: 100985912.

Money

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

Texas Trial Lawyers Association PAC

$10,000.00

Cash: $10,000.00
Paid by others: $0.00
Total: $10,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Dec 11, 2024 to Mar 30, 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.

Report IDs: 100985912, 101032788, 101058648.

Coalition for Working Families PAC

$10,000.00

Cash: $10,000.00
Paid by others: $0.00
Total: $10,000.00

Also funds 24 other sitting lawmakers.

Derived recipient stock · Dec 25, 2025 to Oct 15, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · on Jan 5, 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.

Report IDs: 101058648.

Texas Sands PAC

$8,000.00

Cash: $8,000.00
Paid by others: $0.00
Total: $8,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jul 22, 2024 to Dec 9, 2024. 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: 100985912.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by a super-expensive superintelligence, Nov 9, 2026, against the published rubric.

Sources

Texas House · Filed Nov 9, 2026

11/09/2026 H Filed

Texas Legislature Online · Introduced

Data snapshot Nov 10, 2026 at 2:33 AM CST. Grades, charges, quotes and corrections follow the published record.

Subjects

Artificial Intelligence (IQ7C5)

Business & Commerce--General

Financial--General

Text

The text as introduced · 345 words

90R1467 MLH-D

By: González of El Paso
H.B. No. 405

A BILL TO BE ENTITLED

AN ACT

relating to requiring a business in this state to disclose the use

of certain personalized dynamic pricing models.

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

SECTION 1. Subtitle C, Title 5, Business & Commerce Code, is

amended by adding Chapter 125 to read as follows:

CHAPTER 125. PERSONALIZED DYNAMIC PRICING

Sec. 125.001. DEFINITIONS. In this chapter:

(1) "Artificial intelligence system" means any

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

infers from the inputs the system receives how to generate outputs,

including content, decisions, predictions, or recommendations,

that can influence physical or virtual environments.

(2) "Dynamic pricing model" means a pricing model that

uses an algorithm or other metric to determine the price of a good

or service based on variables related to the market or a consumer.

Sec. 125.002. APPLICABILITY. This chapter applies to any

retailer that conducts business in this state, regardless of

whether the retailer uses a machine-based system to identify the

price of a good.

Sec. 125.003. DISCLOSURE REQUIREMENT FOR CERTAIN DYNAMIC

PRICING MODELS. (a) A person that uses a dynamic pricing model to

determine the price of a good must disclose use of the model to each

consumer if the model uses an artificial intelligence system.

(b) A disclosure required by this section must:

(1) be clear and conspicuous;

(2) include a description of the model and the manner

in which it uses an artificial intelligence system to determine the

price of a good; and

(3) be:

(A) made at the point of sale, if the person

conducts business on a physical premises; or

(B) presented to the consumer in a manner that

requires the consumer to acknowledge the disclosure before

proceeding to complete the purchase, if the person conducts

business using an Internet website.

Sec. 125.004. ENFORCEMENT. A violation of this chapter is a

deceptive trade practice under Subchapter E, Chapter 17, and is

actionable under that subchapter.

SECTION 2. This Act takes effect September 1, 2027.