(Texas Scorecard) – Gov. Greg Abbott signed into law several pieces of legislation to increase regulatory oversight and strengthen the development of artificial intelligence and quantum industries in the state.
House Bill 149 by State Rep. Giovanni Capriglione (R–Southlake), also known as the Texas Responsible Artificial Intelligence Act, imposes several restrictions on the market.
“This is probably one of the biggest AI frameworks that any state will pass.” Capriglione claimed.
Artificial Intelligence is rapidly reshaping how we live, work, and interact with our world. While this technology offers great promise, it also brings with it serious risks that can harm consumers, compromise privacy, and erode public trust.
AI regulation received some national attention recently when the U.S. Senate removed a provision from President Trump’s “Big Beautiful Bill” that would have prevented states from regulating AI for 10 years.
Notably, the proposal would have prevented several new Texas laws from taking effect, such as House Bill 149.
Capriglione said, “House Bill 149 will create a comprehensive framework around AI that will allow for clear legal pathway[s] and protections for consumers [who] are harmed.”
He described how the framework ensures these protections for consumers. “[House Bill 149] avoids the common trap of over-regulating the technical inputs of artificial intelligence and instead focus[es] on outcomes—what AI systems can and cannot do. It sets clear guard rails to prevent misuse while allowing innovation to thrive.”
Such innovation would permeate every sector, including healthcare, education, and manufacturing.
State Sen. Charles Schwertner (R–Georgetown), who carried the bill in the Senate, described House Bill 149 as an “outcomes-based approach.”
One of the most highly received regulations in House Bill 149 is a ban on AI systems intentionally developed to produce, deploy, or distribute sexually explicit nonconsensual deepfake images and videos, child pornography, and sexually explicit text-based conversations that impersonate or imitate children.
“This bill puts a ban on intentionally generated child porn, systems that are used in violent or financial crimes, preventing the encouragement of self-harm, and quite importantly, prevents the implementation of AI driven social scoring,” Capriglione highlighted.
He added that House Bill 149 “makes sure that we provide constitutional protection saying that a person may not develop or deploy an AI system with the sole intent for the AI to infringe on our individual rights guaranteed under the U.S. Constitution.”
Developers may be fined by the attorney general a maximum of $200,000 for incurable offenses and $12,000 for curable offenses. For every day a violation remains uncured, the maximum penalty the AG can impose on violators is $40,000.
However, the act does clarify that developers are not liable if someone uses their AI in an unintended way, making it essential for parents to remain vigilant when their child is online.
House Bill 149 also includes certain restrictions on state agencies. The disclosure clause requires state agencies to clearly inform consumers when they are interacting with an AI system designed for interaction.
Healthcare providers are also required to clearly and openly disclose if they use AI systems in a patient’s treatment.
Two significant additions to online confidentiality and information security are provisions related to social scoring and biometric data.
The social scoring provision bans state agencies from developing or deploying AI systems intended to create a social scoring system that detrimentally affects individuals, including by removing their rights.
The biometric data clause prohibits state agencies from developing or deploying AI systems that use biometric data from publicly available sources to uniquely identify individuals without their consent.
Biometric data includes an individual’s voice, eyes, fingerprint, or any other unique biological pattern used to identify them. Publicly available sources include photos or any other online media that could be used for identification.
In addition to regulations, the act creates the Artificial Intelligence Sandbox Program and the Texas Artificial Intelligence Council.
The Artificial Intelligence Sandbox Program will provide limited market access for up to 3 years, allowing developers to publish an AI system for testing without any limitations or risk of violating regulations.
To maintain the safety and security of Texans, the Texas Department of Information Resources will oversee the Sandbox program. Developers must apply to the department, which, after consulting the Texas Artificial Intelligence Council, may approve their AI system for the program.
The Texas Artificial Intelligence Council, or Texas AI Council, is intended to ensure ethicality, protect individual freedoms as risks emerge, and recommend reforms to laws that limit innovation.
Part of its duties will be to assess regulatory capture and any disproportionate burdens placed on start-ups and small developers by large technology companies—an effort aimed at preventing anti-competitive practices and promoting market fairness.
The council will also organize “training programs for state agencies and local governments on the use of artificial intelligence systems.”
House Bill 3512 by Capriglione enables this training by requiring state agencies and local governments to complete an AI usage training that the Department of Information Resources has certified.
Another piece of legislation that Capriglione authored, House Bill 2818, creates an Artificial Intelligence Division inside the Department of Information Resources.
The purpose of the AI division is to assist state and local governments with replacing legacy systems and facilitating new projects with AI tools.
The division is allowed to contract with AI system vendors to complete projects. However, a vendor’s AI system must complete a majority of the work in a project to be eligible.
Other pieces of AI legislation passed this most recent session pertain to online and personal information security.
Senate Bill 2373 by State Sen. Nathan Johnson (D–Dallas) extends the definition of financial exploitation to include phishing communications and artificially generated media.
Those who use artificial intelligence to create deceptive or manipulative media or who employ phishing tactics would, at most, face a misdemeanor charge if the total damages are below $750.
Those who incur damages above $750 will face a felony charge.
Another measure to bolster online and personal information security is House Bill 3185 by State Rep. Will Metcalf (R–Montgomery).
This law establishes a new process for subpoenaing online information, requiring confidentiality unless the information is part of a criminal investigation.
It also creates a new definition of “cybercrime” to distinguish between crimes committed in person and those committed using the internet or an electronic service account.
One of the most highly anticipated pieces of legislation for advanced technology enthusiasts is House Bill 4751 by Capriglione, which establishes the Texas Quantum Initiative.
To accelerate Texas’ advancement in quantum computing and manufacturing, the initiative will establish an executive committee to consist of quantum manufacturing and computing experts appointed by the governor.
The committee is charged with developing an extensive plan detailing potential projects, federal grant opportunities, research initiatives, and available external funding sources.
It further administers the Quantum University and Business Innovation for Texas Fund. The fund’s purpose is to offer matching funds and grants to state entities, businesses, or higher education institutions.
In 2018, President Trump signed the National Quantum Initiative Act into law, authorizing additional research and funding for quantum programs.
Last year, several states passed legislation and various initiatives to bolster their quantum industries, including Colorado and South Dakota, which declared it a state emergency.
This legislative session marks an ambitious attempt to balance innovation in artificial intelligence with regulations to protect children and constitutional rights.