HB5118 - Relating to a study on employer and state agency use of automated employment decision tools in assessing an applicant's suitability for a position.

  89R26355 LRM-D     By: Bhojani, Ordaz, Lujan, Harris Davila, H.B. No. 5118       Longoria     Substitute the following for H.B. No. 5118:     By:  Button C.S.H.B. No. 5118       A BILL TO BE ENTITLED   AN ACT   relating to a study on employer and state agency use of automated   employment decision tools in assessing an applicant's suitability   for a position.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  (a) In this Act:                (1)  "Artificial intelligence system" means a system of   machine learning and related technologies that use data to train   statistical models for the purpose of enabling computer systems to   perform tasks normally associated with human intelligence or   perception, such as computer vision, speech or natural language   processing, and content generation.                (2)  "Automated employment decision tool" means a   computational process or software application that uses   algorithms, machine learning, statistical modeling, data   analytics, or an artificial intelligence system to assess an   applicant's suitability for a position.                (3)  "Bias" means the use of an artificial intelligence   system or an automated employment decision tool in an employer or   state agency's hiring process that results in discrimination   prohibited under Chapter 21, Labor Code, or federal   antidiscrimination laws.                   (4)  "Commission" means the Texas Workforce   Commission.                (5)  "Department" means the Department of Information   Resources.                (6)  "Employer" has the meaning assigned by Section   61.001, Labor Code.                (7)  "State agency" means a department, commission,   board, office, or other agency in the executive branch of state   government created by the state constitution or a state   statute.  The term includes a university system or an institution   of higher education as defined by Section 61.003, Education Code.                (8)  "Study" means the study required by this section.          (b)  The commission, in consultation and collaboration with   the department, shall conduct a study on the use of artificial   intelligence systems and automated employment decision tools in   employment and hiring practices of employers, including state   agencies.          (c)  In conducting the study, the commission shall:                (1)  evaluate the current and future use in hiring   decisions of artificial intelligence systems, including automated   employment decision tools;                (2)  outline the methods and tools available for   detecting and auditing bias in the deployment of artificial   intelligence systems and automated employment decision tools in an   employer's or state agency's hiring process;                (3)  determine:                      (A)  the minimum transparency and disclosure   requirements for artificial intelligence system vendors to   effectively audit for bias and the accountability requirements to   redress resulting bias; and                      (B)  the use of external, independent review for   bias in artificial intelligence systems and automated employment   decision tools used by employers and state agencies in hiring   decisions;                (4)  identify existing deficiencies in oversight,   auditability, and regulatory protections regarding artificial   intelligence systems and automated employment decision tools used   in hiring decisions in this state; and                (5)  analyze this state's ability to evaluate and   recognize bias and other risks in the use of artificial   intelligence systems and automated employment decision tools in   hiring decisions.          (d)  The department shall assist the commission in   conducting the study by examining and providing information on:                (1)  the use of artificial intelligence systems and   automated employment decision tools in state agency hiring   practices; and                (2)  regulatory procedures that may assist in   decreasing bias and other risks posed by state agencies deploying   artificial intelligence systems and automated employment decision   tools for use in hiring decisions.          (e)  In conducting the study, the commission may consult:                (1)  state agencies and private sector employers with   experience in:                      (A)  the deployment of artificial intelligence   systems and automated employment decision tools; and                      (B)  the ethical use of artificial intelligence   systems and automated employment decision tools; and                (2)  state agencies that specialize in technical   support related to artificial intelligence security to assist with   evaluating the use of artificial intelligence systems in hiring   decision processes.          (f)  In addition to any money appropriated by the   legislature, the commission may solicit and accept federal funds   and gifts, grants, or donations from any source to administer and   finance the study.          (g)  Not later than November 15, 2026, the commission shall   submit to the governor, the lieutenant governor, the speaker of the   house of representatives, and the chair of the standing committee   of each house of the legislature with primary jurisdiction over the   commission a written report that includes:                (1)  the results of the study;                (2)  any recommendations for legislative or other   action to increase transparency and decrease bias in the use of   artificial intelligence systems in employment decisions;                (3)  a sector specific risk assessment for bias in the   use of artificial intelligence systems in state agency hiring   processes; and                (4)  a proposal to establish a method of funding   research on artificial intelligence bias.          (h)  This Act expires September 1, 2027.          SECTION 2.  The Texas Workforce Commission may adopt rules   necessary to administer this Act and implement any related programs   authorized under this Act.          SECTION 3.  This Act takes effect September 1, 2025.