On 23 April 2025, the Texas Responsible Artificial Intelligence Governance Bill (HB 149) was passed by the State House. The regulatory sandbox programme established under Chapter 553 enables unlicensed testing of artificial intelligence (AI) systems for a period not exceeding 36 months, with potential extensions subject to approval by the Texas Department of Information Resources (DIR). Prospective participants must submit documentation, including a detailed description of the AI system and its intended applications, along with a risk-benefit analysis evaluating potential effects on consumers and public safety. Applications must also outline specific mitigation strategies for addressing possible adverse outcomes and demonstrate compliance with applicable federal artificial intelligence regulations. Programme participants are required to file quarterly reports documenting system performance metrics, implemented risk control measures, and feedback from relevant stakeholders. The DIR ensures protection of confidential business information and trade secrets submitted by participants throughout the programme duration. However, the department retains authority to terminate participation if an AI system is found to present unacceptable safety risks or violate non-waivable provisions of state law, such as those contained in Subchapter B of Chapter 552. The programme provides immunity from enforcement actions by the Attorney General or other state agencies for violations arising from sandbox activities, provided all testing is conducted in accordance with the established programme requirements and guidelines.
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