SB2991 - Relating to the use of an automated employment decision tool by an employer to assess a job applicant's fitness for a position; imposing an administrative penalty.

      By: Johnson S.B. No. 2991               A BILL TO BE ENTITLED   AN ACT   relating to the use of an automated employment decision tool by an   employer to assess a job applicant's fitness for a position;   imposing an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 2, Labor Code, is amended by adding   Subtitle F to read as follows:   SUBTITLE F.   PROVISIONS REGARDING JOB APPLICANT SCREENING   CHAPTER 95.   USE OF AUTOMATED EMPLOYMENT DECISION TOOL           Sec. 95.001.  DEFINITIONS. In this chapter:                 (1)     "Algorithm" means a computerized procedure   consisting of a set of steps used to accomplish a determined task.                 (2)     "Applicant" means a person applying for a job   offered by an employer.                 (3)     "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.                 (4)     "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 fitness for a position.                 (5)     "Employer" has the meaning assigned by Section   61.001.           Sec.   95.002.     USE OF AUTOMATED EMPLOYMENT DECISION TOOL.   (a) An employer may not use or deploy, or authorize a third party to   use or deploy, an automated employment decision tool in violation   of this chapter or a rule adopted under this chapter.           (b)     It is a violation of this chapter for an employer to use   an automated employment decision tool that includes, as a factor in   the assessment of fitness for purposes of recruitment, hiring,   promotion, renewal of employment, selection for training or   apprenticeship, discharge, discipline, tenure, or the terms,   privileges, or conditions of employment, status in a protected   class under state or federal law, or the residential zip code of the   applicant.             Sec.   95.003.     DISCLOSURE AND CONSENT REQUIRED. An employer   may not use an automated employment decision tool in regard to an   applicant unless the employer:                 (1)     notifies the applicant that an automated   employment decision tool may be used to assess the applicant's   fitness for the position;                 (2)     provides the applicant with information   describing how the automated employment decision tool will be used   to assess the applicant's fitness for the position, including what   characteristics may be evaluated for that purpose; and                 (3)     before using the automated employment decision   tool, obtains the applicant's written consent for that use.           Sec.   95.004.     SHARING OF AUTOMATED EMPLOYMENT DECISION TOOL   ASSESSMENT. An employer may not share an assessment of an applicant   made by an automated employment decision tool authorized under this   chapter with any person other than a person whose knowledge and   skill is necessary in order to ensure the tool is correctly   processing the applicant's data.           Sec.   95.005.     DESTRUCTION OF AUTOMATED EMPLOYMENT DECISION   TOOL ASSESSMENT. (a) Not later than the 30th day after the date an   employer uses an automated employment decision tool to assess an   applicant's fitness for a position as authorized under this   chapter, an employer must:                 (1)     make all reasonable efforts to destroy any hard   copy and erase any electronic data file of the assessment; and                 (2)     instruct any other person with whom the employer   shared the assessment under Section 95.004 to make all reasonable   efforts to destroy any hard copy and erase any electronic data file   of the assessment.           (b)     A person who is instructed by an employer to destroy an   assessment under Subsection (a)(2) shall, as soon as practicable,   make all reasonable efforts to destroy any hard copy and erase any   electronic data file of the assessment.           Sec.   95.006.     ENFORCEMENT; ADMINISTRATIVE PENALTY. (a) An   applicant who has reason to believe that an employer has violated   this chapter or a rule adopted under this chapter may file a   complaint with the commission.           (b)     On receipt of a complaint under this section, the   commission shall investigate and dispose of the complaint in the   manner prescribed by Subchapter F, Chapter 21, for a complaint of an   unlawful employment practice under that chapter.           (c)     The commission shall assess an administrative penalty   in an amount that is not less than $2,500 and not more than $7,500   against an employer for each violation of this chapter or a rule   adopted under this chapter.           Sec.   95.007.     RULES. The commission shall adopt rules for   the administration of this chapter.          SECTION 2.  This Act takes effect September 1, 2025.