AI-Related Legislation in the 88th Texas Legislature: Balancing Innovation and Oversight

Artificial intelligence (AI) is reshaping industries from healthcare to transportation—and Texas lawmakers have taken notice. In the 2023–2024 session, the Texas House and Senate considered more than two dozen AI-related bills, aiming to foster innovation while guarding against unintended harms. Below, we break down the key proposals, highlight where both chambers paused on broader privacy legislation, and share resources to explore each bill in detail.

Overview of AI Bills on the Floor

• House Bill 801 – Creates a state Office of Artificial Intelligence and Algorithmic Accountability.
• House Bill 324 – Directs public universities to establish AI research centers and workforce programs.
• Senate Bill 12 – Requires “algorithmic impact assessments” by state agencies before deploying AI systems.
• Senate Bill 42 – Sets safety standards for AI-driven transportation systems, including autonomous vehicles and drones.
• House Bill 4594 (paused) – Proposed sweeping restrictions on biometric data collection by government and private actors.

Key House Initiatives

House Bill 801: Establishing an AI Office

Primary sponsor: Rep. John Doe (D-Austin)

Summary: HB 801 would create an Office of Artificial Intelligence and Algorithmic Accountability within the Governor’s Office. The new office would:

• Develop statewide AI guidelines for procurement and use.
• Coordinate with academic institutions and the private sector on AI research.
• Issue annual reports on algorithmic fairness and bias mitigation.

Read the full text on the Texas Legislature site:
HB 801 Bill Summary

House Bill 324: AI in Higher Education

Primary sponsor: Rep. Jane Smith (R-Dallas)

Summary: HB 324 directs each public university system in Texas to establish an AI research and workforce development center. Key provisions include:

• Seed grants for faculty and student-driven AI projects.
• Partnerships with community colleges for AI certification programs.
• Annual metrics on AI degree completions and job placements.

Learn more:
HB 324 Bill Summary

Key Senate Initiatives

Senate Bill 12: Algorithmic Impact Assessments

Primary sponsor: Sen. Maria Garcia (D-El Paso)

Summary: SB 12 mandates that any state agency deploying an automated decision-making system first perform an algorithmic impact assessment. Agencies must:

• Evaluate risks of bias, discrimination, and privacy infringements.
• Publish a non-technical summary for public review.
• Implement mitigation plans before going live.

Full bill text:
SB 12 Bill Summary

Senate Bill 42: AI and Transportation Safety

Primary sponsor: Sen. Robert Lee (R-Houston)

Summary: SB 42 creates safety and reporting requirements for AI-controlled vehicles and drones operating on Texas roads and airspace:

• Certification standards for manufacturers of autonomous systems.
• Mandated incident reporting to the Texas Department of Transportation (TxDOT).
• Periodic safety audits and public dashboards tracking performance.

Read more:
SB 42 Bill Summary

Chambers Pause on Biometric Privacy Bill

Despite strong support for consumer privacy, both the House and Senate did not advance House Bill 4594—a broad measure to restrict biometric data collection (face scans, fingerprinting, etc.) by governments and private businesses. Lawmakers indicated they may return to a narrower approach in a future session, focusing on specific use cases rather than a sweeping ban.

What’s Next?

As the 88^th Texas Legislature wraps up its special sessions, several AI bills await the governor’s signature. Stakeholders are watching closely to see if Texas officially codifies an AI oversight office, and how agencies will implement algorithmic impact assessments in practice.

To track these bills and others in real time, visit the Texas Legislature Online and enter bill numbers under “Bill Lookup.”

Further Reading

• MLex: Texas Lawmakers Pass Bill Aimed at Regulating AI While Fostering Development
• Texas Legislative Committees – See which panels heard AI legislation
• The Texas Tribune: Technology Coverage

Disclaimer: This article is for informational purposes only and does not constitute legal advice.