United States of America: Texas Responsible Artificial Intelligence Governance Bill (HB 149) including testing requirements enters into force

On 1 January 2026, the Responsible Artificial Intelligence Governance Bill (HB 149) enters into force. The Bill establishes a regulatory sandbox programme under Chapter 553 of the Business and Commerce Code, enabling the unlicensed testing of artificial intelligence systems for up to 36 months, with possible extensions granted by the Texas Department of Information Resources. Applicants must provide detailed descriptions of the system and its intended use, a benefit-risk assessment covering potential impacts on consumers and public safety, and mitigation strategies for foreseeable harms. Compliance with applicable federal artificial intelligence laws must also be demonstrated. During the testing period, participants are subject to testing requirements, including the submission of quarterly reports that document system performance, applied risk control mechanisms, and stakeholder feedback. The Department protects trade secrets and proprietary information but may terminate participation if the system presents undue safety risks or breaches mandatory provisions of Subchapter B, Chapter 552. While the sandbox provides immunity from enforcement by the Attorney General or state agencies during testing, this exemption applies only if all testing activities comply with the programme’s requirements.