SB668 - Relating to the disclosure of information with regard to artificial intelligence.

      By: Hughes S.B. No. 668     A BILL TO BE ENTITLED   AN ACT   relating to the disclosure of information with regard to artificial   intelligence.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 99, Business & Commerce Code, is amended by   adding Chapter 2003 to read as follows:   CHAPTER 2003.   DISCLOSURES RELATED TO ARTIFICIAL INTELLIGENCE           Sec.   2003.001.     DEFINITION. In this chapter, "artificial   intelligence" means a machine-based system that:                 (1)     when given a set of objectives by an individual,   makes predictions, recommendations, or decisions that influence a   real or virtual environment; and                 (2)  uses inputs from an individual or machine to:                       (A)     perceive or interpret a real or virtual   environment;                       (B)     use automation to analyze a perception or   interpretation of a real or virtual environment; or                       (C)     use models to infer or form opinions on   information or a proposed action.           Sec.   2003.002.     APPLICABILITY OF CHAPTER. (a)   This chapter   applies only to a person who:                 (1)     uses artificial intelligence to provide services   to an individual in this state, including:                       (A)  answering questions;                       (B)  gathering information;                       (C)  summarizing information;                       (D)     generating textual, audio, or visual   material; or                       (E)     providing information to be used in   connection with a lending, underwriting, risk assessment,   investing, or hiring decision; and                 (2)     generated, or is more than 25 percent owned by a   person who generated, at least $100 billion in total revenue,   including revenue generated by subsidiaries, according to   generally accepted accounting principles.           (b)     Artificial intelligence is considered to be used to   provide a service to an individual under Subsection (a)(1)   regardless of whether the individual can directly access the   artificial intelligence.           Sec.   2003.003.     DUTY TO DISCLOSE ARTIFICIAL INTELLIGENCE   INFORMATION. (a)   A person regulated by this chapter shall   disclose, on the person's Internet website or in another location   electronically accessible by an individual in this state:                 (1)     the name of each artificial intelligence model   used by the person;                 (2)     a brief description of the functions and purposes   of each model disclosed under Subdivision (1);                 (3)     to the best of the person's knowledge and belief,   the name of each public or private third party that has provided   input on an artificial intelligence model that the person has   implemented;                 (4)     a description of the specific input provided by   each third party disclosed under Subdivision (3); and                 (5)     any changes made to an artificial intelligence   model based on input provided by a third party disclosed under   Subdivision (3).           (b)     An individual who uses a service described by Section   2003.002(a)(1) who provides input on an artificial intelligence   model is not considered a third party for purposes of this section   if the individual's input was provided:                 (1)  in the individual's personal capacity; and                 (2)     based on the individual's own experience as a user   of that service.           Sec.   2003.004.     DISCRIMINATION AND RETALIATION PROHIBITED.   A person may not discipline, retaliate against, or otherwise   discriminate against an individual who in good faith reports a   suspected violation of this chapter to the attorney general or any   other appropriate authority.           Sec.   2003.005.     COOPERATION WITH ATTORNEY GENERAL. A person   shall allow the attorney general to access the records of the person   to the extent necessary to ensure the person is in substantial   compliance with this chapter.           Sec.   2003.006.     ENFORCEMENT. (a)   A violation of this   chapter is a deceptive trade practice under Subchapter E, Chapter   17, and is actionable under that subchapter.           (b)     The attorney general may issue reports to the governor,   the legislature, or any other federal, state, or local government   official regarding any information obtained investigating a person   under this chapter or enforcing a provision of this chapter.           (c)     A report under Subsection (b) may be public or   confidential.           (d)     The remedies under this section are cumulative of other   remedies provided by law.          SECTION 2.  This Act takes effect September 1, 2025.