Texas Business & Commerce Code, Chapter 552 — Artificial Intelligence Protection
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Item Content Instrument HB 149 (89th Texas Legislature) — the Texas Responsible Artificial Intelligence Governance Act ("TRAIGA") Enacted text creates Business & Commerce Code Chapters 551–554; this page reproduces Chapter 552 (Artificial Intelligence Protection) in full Effective 1 January 2026 (per the enrolled act’s effective-date provision) Structure Chapter 552: 16 sections (552.001–552.003 general; 552.051–552.057 protections; 552.101–552.106 enforcement) Official text Enrolled bill text (HB 149) ｜ codified chapter Scope note This page covers Chapter 552 only. The same act also creates Chapter 551 (general provisions), Chapter 553 (AI regulatory sandbox programme) and Chapter 554 (Texas Artificial Intelligence Council) — those chapters are not reproduced here. Chinese version No official Chinese text. A Chinese translation by our editorial team, marked non-official, is available → 中文全文 Retrieval & verification Retrieved 2026-09-22 from the enrolled bill text published by the Texas Legislature; section numbering (552.001–552.106) and subsection markers checked against the published text.
CHAPTER 552. ARTIFICIAL INTELLIGENCE PROTECTION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 552.001. DEFINITIONS. In this chapter:
(1) “Deployer” means a person who deploys an
artificial intelligence system for use in this state.
(2) “Developer” means a person who develops an
artificial intelligence system that is offered, sold, leased,
given, or otherwise provided in this state.
(3) “Governmental entity” means any department,
commission, board, office, authority, or other administrative unit
of this state or of any political subdivision of this state, that
exercises governmental functions under the authority of the laws of
this state. The term does not include:
(A) a hospital district created under the Health
and Safety Code or Article IX, Texas Constitution; or
(B) an institution of higher education, as
defined by Section 61.003, Education Code, including any university
system or any component institution of the system.
Sec. 552.002. CONSTRUCTION OF CHAPTER. This chapter may
not be construed to:
(1) impose a requirement on a person that adversely
affects the rights or freedoms of any person, including the right of
free speech; or
(2) authorize any department or agency other than the
Department of Insurance to regulate or oversee the business of
insurance.
Sec. 552.003. LOCAL PREEMPTION. This chapter supersedes
and preempts any ordinance, resolution, rule, or other regulation
adopted by a political subdivision regarding the use of artificial
intelligence systems.
SUBCHAPTER B. DUTIES AND PROHIBITIONS ON USE OF ARTIFICIAL
INTELLIGENCE
**Sec. 552.051. DISCLOSURE TO CONSUMERS.
(a) In this**
section, “health care services” means services related to human
health or to the diagnosis, prevention, or treatment of a human
disease or impairment provided by an individual licensed,
registered, or certified under applicable state or federal law to
provide those services.
(b) A governmental agency that makes available an
artificial intelligence system intended to interact with consumers
shall disclose to each consumer, before or at the time of
interaction, that the consumer is interacting with an artificial
intelligence system.
(c) A person is required to make the disclosure under
Subsection
(b) regardless of whether it would be obvious to a
reasonable consumer that the consumer is interacting with an
artificial intelligence system.
(d) A disclosure under Subsection (b):
(1) must be clear and conspicuous;
(2) must be written in plain language; and
(3) may not use a dark pattern, as that term is defined
by Section 541.001.
(e) A disclosure under Subsection
(b) may be provided by
using a hyperlink to direct a consumer to a separate Internet web
page.
(f) If an artificial intelligence system is used in relation
to health care service or treatment, the provider of the service or
treatment shall provide the disclosure under Subsection
(b) to the
recipient of the service or treatment or the recipient’s personal
representative not later than the date the service or treatment is
first provided, except in the case of emergency, in which case the
provider shall provide the required disclosure as soon as
reasonably possible.
Sec. 552.052. MANIPULATION OF HUMAN BEHAVIOR. A person may
not develop or deploy an artificial intelligence system in a manner
that intentionally aims to incite or encourage a person to:
(1) commit physical self-harm, including suicide;
(2) harm another person; or
(3) engage in criminal activity.
Sec. 552.053. SOCIAL SCORING. A governmental entity may
not use or deploy an artificial intelligence system that evaluates
or classifies a natural person or group of natural persons based on
social behavior or personal characteristics, whether known,
inferred, or predicted, with the intent to calculate or assign a
social score or similar categorical estimation or valuation of the
person or group of persons that results or may result in:
(1) detrimental or unfavorable treatment of a person
or group of persons in a social context unrelated to the context in
which the behavior or characteristics were observed or noted;
(2) detrimental or unfavorable treatment of a person
or group of persons that is unjustified or disproportionate to the
nature or gravity of the observed or noted behavior or
characteristics; or
(3) the infringement of any right guaranteed under the
United States Constitution, the Texas Constitution, or state or
federal law.
**Sec. 552.054. CAPTURE OF BIOMETRIC DATA.
(a) In this**
section, “biometric data” means data generated by automatic
measurements of an individual’s biological characteristics. The
term includes a fingerprint, voiceprint, eye retina or iris, or
other unique biological pattern or characteristic that is used to
identify a specific individual. The term does not include a
physical or digital photograph or data generated from a physical or
digital photograph, a video or audio recording or data generated
from a video or audio recording, or information collected, used, or
stored for health care treatment, payment, or operations under the
Health Insurance Portability and Accountability Act of 1996 (42
U.S.C. Section 1320d et seq.).
(b) A governmental entity may not develop or deploy an
artificial intelligence system for the purpose of uniquely
identifying a specific individual using biometric data or the
targeted or untargeted gathering of images or other media from the
Internet or any other publicly available source without the
individual’s consent, if the gathering would infringe on any right
of the individual under the United States Constitution, the Texas
Constitution, or state or federal law.
(c) A violation of Section 503.001 is a violation of this
section.
**Sec. 552.055. CONSTITUTIONAL PROTECTION.
(a) A person may**
not develop or deploy an artificial intelligence system with the
sole intent for the artificial intelligence system to infringe,
restrict, or otherwise impair an individual’s rights guaranteed
under the United States Constitution.
(b) This section is remedial in purpose and may not be
construed to create or expand any right guaranteed by the United
States Constitution.
**Sec. 552.056. UNLAWFUL DISCRIMINATION.
(a) In this**
section:
(1) “Financial institution” has the meaning assigned
by Section 201.101, Finance Code.
(2) “Insurance entity” means:
(A) an entity described by Section 82.002(a),
Insurance Code;
(B) a fraternal benefit society regulated under
Chapter 885, Insurance Code; or
(C) the developer of an artificial intelligence
system used by an entity described by Paragraph (A) or (B).
(3) “Protected class” means a group or class of
persons with a characteristic, quality, belief, or status protected
from discrimination by state or federal civil rights laws, and
includes race, color, national origin, sex, age, religion, or
disability.
(b) A person may not develop or deploy an artificial
intelligence system with the intent to unlawfully discriminate
against a protected class in violation of state or federal law.
(c) For purposes of this section, a disparate impact is not
sufficient by itself to demonstrate an intent to discriminate.
(d) This section does not apply to an insurance entity for
purposes of providing insurance services if the entity is subject
to applicable statutes regulating unfair discrimination, unfair
methods of competition, or unfair or deceptive acts or practices
related to the business of insurance.
(e) A federally insured financial institution is considered
to be in compliance with this section if the institution complies
with all federal and state banking laws and regulations.
Sec. 552.057. CERTAIN SEXUALLY EXPLICIT CONTENT AND CHILD
PORNOGRAPHY. A person may not:
(1) develop or distribute an artificial intelligence
system with the sole intent of producing, assisting or aiding in
producing, or distributing:
(A) visual material in violation of Section
43.26, Penal Code; or
(B) deep fake videos or images in violation of
Section 21.165, Penal Code; or
(2) intentionally develop or distribute an artificial
intelligence system that engages in text-based conversations that
simulate or describe sexual conduct, as that term is defined by
Section 43.25, Penal Code, while impersonating or imitating a child
younger than 18 years of age.
SUBCHAPTER C. ENFORCEMENT
**Sec. 552.101. ENFORCEMENT AUTHORITY.
(a) The attorney**
general has exclusive authority to enforce this chapter, except to
the extent provided by Section 552.106.
(b) This chapter does not provide a basis for, and is not
subject to, a private right of action for a violation of this
chapter or any other law.
Sec. 552.102. INFORMATION AND COMPLAINTS. The attorney
general shall create and maintain an online mechanism on the
attorney general’s Internet website through which a consumer may
submit a complaint under this chapter to the attorney general.
**Sec. 552.103. INVESTIGATIVE AUTHORITY.
(a) If the**
attorney general receives a complaint through the online mechanism
under Section 552.102 alleging a violation of this chapter, the
attorney general may issue a civil investigative demand to
determine if a violation has occurred. The attorney general shall
issue demands in accordance with and under the procedures
established under Section 15.10.
(b) The attorney general may request from the person
reported through the online mechanism, pursuant to a civil
investigative demand issued under Subsection (a):
(1) a high-level description of the purpose, intended
use, deployment context, and associated benefits of the artificial
intelligence system with which the person is affiliated;
(2) a description of the type of data used to program
or train the artificial intelligence system;
(3) a high-level description of the categories of data
processed as inputs for the artificial intelligence system;
(4) a high-level description of the outputs produced
by the artificial intelligence system;
(5) any metrics the person uses to evaluate the
performance of the artificial intelligence system;
(6) any known limitations of the artificial
intelligence system;
(7) a high-level description of the post-deployment
monitoring and user safeguards the person uses for the artificial
intelligence system, including, if the person is a deployer, the
oversight, use, and learning process established by the person to
address issues arising from the system’s deployment; or
(8) any other relevant documentation reasonably
necessary for the attorney general to conduct an investigation
under this section.
Sec. 552.104. NOTICE OF VIOLATION; OPPORTUNITY TO CURE
(a) If the attorney general determines that a person has violated
or is violating this chapter, the attorney general shall notify the
person in writing of the determination, identifying the specific
provisions of this chapter the attorney general alleges have been
or are being violated.
(b) The attorney general may not bring an action against the
person:
(1) before the 60th day after the date the attorney
general provides the notice under Subsection (a); or
(2) if, before the 60th day after the date the attorney
general provides the notice under Subsection (a), the person:
(A) cures the identified violation; and
(B) provides the attorney general with a written
statement that the person has:
(i) cured the alleged violation;
(ii) provided supporting documentation to
show the manner in which the person cured the violation; and
(iii) made any necessary changes to
internal policies to reasonably prevent further violation of this
chapter.
**Sec. 552.105. CIVIL PENALTY; INJUNCTION.
(a) A person who**
violates this chapter and does not cure the violation under Section
552.104 is liable to this state for a civil penalty in an amount of:
(1) for each violation the court determines to be
curable or a breach of a statement submitted to the attorney general
under Section 552.104(b)(2), not less than $10,000 and not more
than $12,000;
(2) for each violation the court determines to be
uncurable, not less than $80,000 and not more than $200,000; and
(3) for a continued violation, not less than $2,000
and not more than $40,000 for each day the violation continues.
(b) The attorney general may bring an action in the name of
this state to:
(1) collect a civil penalty under this section;
(2) seek injunctive relief against further violation
of this chapter; and
(3) recover attorney’s fees and reasonable court costs
or other investigative expenses.
(c) There is a rebuttable presumption that a person used
reasonable care as required under this chapter.
(d) A defendant in an action under this section may seek an
expedited hearing or other process, including a request for
declaratory judgment, if the person believes in good faith that the
person has not violated this chapter.
(e) A defendant in an action under this section may not be
found liable if:
(1) another person uses the artificial intelligence
system affiliated with the defendant in a manner prohibited by this
chapter; or
(2) the defendant discovers a violation of this
chapter through:
(A) feedback from a developer, deployer, or other
person who believes a violation has occurred;
(B) testing, including adversarial testing or
red-team testing;
(C) following guidelines set by applicable state
agencies; or
(D) if the defendant substantially complies with
the most recent version of the “Artificial Intelligence Risk
Management Framework: Generative Artificial Intelligence Profile”
published by the National Institute of Standards and Technology or
another nationally or internationally recognized risk management
framework for artificial intelligence systems, an internal review
process.
(f) The attorney general may not bring an action to collect
a civil penalty under this section against a person for an
artificial intelligence system that has not been deployed.
**Sec. 552.106. ENFORCEMENT ACTIONS BY STATE AGENCIES.
(a) A**
state agency may impose sanctions against a person licensed,
registered, or certified by that agency for a violation of
Subchapter B if:
(1) the person has been found in violation of this
chapter under Section 552.105; and
(2) the attorney general has recommended additional
enforcement by the applicable agency.
(b) Sanctions under this section may include:
(1) suspension, probation, or revocation of a license,
registration, certificate, or other authorization to engage in an
activity; and
(2) a monetary penalty not to exceed $100,000.