HB149 - Relating to regulation of the use of artificial intelligence systems in this state; providing civil penalties.

      H.B. No. 149         AN ACT   relating to regulation of the use of artificial intelligence   systems in this state; providing civil penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act may be cited as the Texas Responsible   Artificial Intelligence Governance Act.          SECTION 2.  Section 503.001, Business & Commerce Code, is   amended by amending Subsections (a) and (e) and adding Subsections   (b-1) and (f) to read as follows:          (a)  In this section :                 (1)     "Artificial intelligence system" has the meaning   assigned by Section 551.001.                 (2)  "Biometric [ , "biometric ] identifier" means a   retina or iris scan, fingerprint, voiceprint, or record of hand or   face geometry.           (b-1)     For purposes of Subsection (b), an individual has not   been informed of and has not provided consent for the capture or   storage of a biometric identifier of an individual for a commercial   purpose based solely on the existence of an image or other media   containing one or more biometric identifiers of the individual on   the Internet or other publicly available source unless the image or   other media was made publicly available by the individual to whom   the biometric identifiers relate.          (e)  This section does not apply to :                 (1)   voiceprint data retained by a financial   institution or an affiliate of a financial institution, as those   terms are defined by 15 U.S.C. Section 6809 ;                 (2)     the training, processing, or storage of biometric   identifiers involved in developing, training, evaluating,   disseminating, or otherwise offering artificial intelligence   models or systems, unless a system is used or deployed for the   purpose of uniquely identifying a specific individual; or                 (3)     the development or deployment of an artificial   intelligence model or system for the purposes of:                       (A)     preventing, detecting, protecting against,   or responding to security incidents, identity theft, fraud,   harassment, malicious or deceptive activities, or any other illegal   activity;                       (B)     preserving the integrity or security of a   system; or                       (C)     investigating, reporting, or prosecuting a   person responsible for a security incident, identity theft, fraud,   harassment, a malicious or deceptive activity, or any other illegal   activity .           (f)     If a biometric identifier captured for the purpose of   training an artificial intelligence system is subsequently used for   a commercial purpose not described by Subsection (e), the person   possessing the biometric identifier is subject to:                 (1)     this section's provisions for the possession and   destruction of a biometric identifier; and                 (2)     the penalties associated with a violation of this   section.          SECTION 3.  Section 541.104(a), Business & Commerce Code, is   amended to read as follows:          (a)  A processor shall adhere to the instructions of a   controller and shall assist the controller in meeting or complying   with the controller's duties or requirements under this chapter,   including:                (1)  assisting the controller in responding to consumer   rights requests submitted under Section 541.051 by using   appropriate technical and organizational measures, as reasonably   practicable, taking into account the nature of processing and the   information available to the processor;                (2)  assisting the controller with regard to complying   with requirements [ the requirement ] relating to the security of   processing personal data , and if applicable, the personal data   collected, stored, and processed by an artificial intelligence   system, as that term is defined by Section 551.001, and to the   notification of a breach of security of the processor's system   under Chapter 521, taking into account the nature of processing and   the information available to the processor; and                (3)  providing necessary information to enable the   controller to conduct and document data protection assessments   under Section 541.105.          SECTION 4.  Title 11, Business & Commerce Code, is amended by   adding Subtitle D to read as follows:   SUBTITLE D.   ARTIFICIAL INTELLIGENCE PROTECTION   CHAPTER 551.   GENERAL PROVISIONS           Sec. 551.001.  DEFINITIONS. In this subtitle:                 (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)     "Consumer" means an individual who is a resident   of this state acting only in an individual or household context.     The term does not include an individual acting in a commercial or   employment context.                 (3)     "Council" means the Texas Artificial Intelligence   Council established under Chapter 554.           Sec.   551.002.     APPLICABILITY OF SUBTITLE. This subtitle   applies only to a person who:                 (1)     promotes, advertises, or conducts business in this   state;                 (2)     produces a product or service used by residents of   this state; or                 (3)     develops or deploys an artificial intelligence   system in this state.           Sec.   551.003.     CONSTRUCTION AND APPLICATION OF SUBTITLE.   This subtitle shall be broadly construed and applied to promote its   underlying purposes, which are to:                 (1)     facilitate and advance the responsible   development and use of artificial intelligence systems;                 (2)     protect individuals and groups of individuals from   known and reasonably foreseeable risks associated with artificial   intelligence systems;                 (3)     provide transparency regarding risks in the   development, deployment, and use of artificial intelligence   systems; and                 (4)     provide reasonable notice regarding the use or   contemplated use of artificial intelligence systems by state   agencies.   CHAPTER 552.   ARTIFICIAL INTELLIGENCE PROTECTION   SUBCHAPTER A.   GENERAL PROVISIONS           Sec. 552.001.  DEFINITIONS. In this chapter:                 (1)     "Deployer" means a person who deploys an   artificial intelligence system for use in this state.                 (2)     "Developer" means a person who develops an   artificial intelligence system that is offered, sold, leased,   given, or otherwise provided in this state.                 (3)     "Governmental entity" means any department,   commission, board, office, authority, or other administrative unit   of this state or of any political subdivision of this state, that   exercises governmental functions under the authority of the laws of   this state.   The term does not include:                       (A)     a hospital district created under the Health   and Safety Code or Article IX, Texas Constitution; or                       (B)     an institution of higher education, as   defined by Section 61.003, Education Code, including any university   system or any component institution of the system.           Sec.   552.002.     CONSTRUCTION OF CHAPTER. This chapter may   not be construed to:                 (1)     impose a requirement on a person that adversely   affects the rights or freedoms of any person, including the right of   free speech; or                 (2)     authorize any department or agency other than the   Department of Insurance to regulate or oversee the business of   insurance.           Sec.   552.003.     LOCAL PREEMPTION. This chapter supersedes   and preempts any ordinance, resolution, rule, or other regulation   adopted by a political subdivision regarding the use of artificial   intelligence systems.   SUBCHAPTER B. DUTIES AND PROHIBITIONS ON USE OF ARTIFICIAL   INTELLIGENCE           Sec.   552.051.     DISCLOSURE TO CONSUMERS. (a)   In this   section, "health care services"   means services related to human   health or to the diagnosis, prevention, or treatment of a human   disease or impairment provided by an individual licensed,   registered, or certified under applicable state or federal law to   provide those services.           (b)     A governmental agency that makes available an   artificial intelligence system intended to interact with consumers   shall disclose to each consumer, before or at the time of   interaction, that the consumer is interacting with an artificial   intelligence system.           (c)     A person is required to make the disclosure under   Subsection (b) regardless of whether it would be obvious to a   reasonable consumer that the consumer is interacting with an   artificial intelligence system.           (d)  A disclosure under Subsection (b):                 (1)  must be clear and conspicuous;                 (2)  must be written in plain language; and                 (3)     may not use a dark pattern, as that term is defined   by Section 541.001.           (e)     A disclosure under Subsection (b) may be provided by   using a hyperlink to direct a consumer to a separate Internet web   page.           (f)     If an artificial intelligence system is used in relation   to health care service or treatment, the provider of the service or   treatment shall provide the disclosure under Subsection (b) to the   recipient of the service or treatment or the recipient's personal   representative not later than the date the service or treatment is   first provided, except in the case of emergency, in which case the   provider shall provide the required disclosure as soon as   reasonably possible.           Sec.   552.052.     MANIPULATION OF HUMAN BEHAVIOR. A person may   not develop or deploy an artificial intelligence system in a manner   that intentionally aims to incite or encourage a person to:                 (1)  commit physical self-harm, including suicide;            &#xA [Text truncated for display. Full text available on Congress.gov.]