Texas has introduced a comprehensive AI regulation bill that could become the most stringent AI law in the United States. The Texas Responsible AI Governance Act (TRAIGA), formally introduced as HB 1709, aims to combat algorithmic discrimination and ensure ethical AI deployment. According to analysis by Dean W. Ball, the bill significantly expands upon previous state-level AI legislation attempts.
The proposed law would require AI developers, distributors, and corporate users to exercise “reasonable care” to prevent discrimination against protected classes, including race, gender, age, and disability status. Companies would need to prepare extensive compliance documents, including High-Risk Reports and Impact Assessments, for AI systems used in making “consequential decisions” about employment, education, housing, and other critical areas.
TRAIGA would establish the Texas Artificial Intelligence Council, a regulatory body with broad authority to set rules for ethical AI development and deployment. Violations could result in fines between $50,000 and $100,000 per incident, marking a substantial increase from earlier drafts.
While the bill includes exemptions for open-source AI, critics argue these provisions are impractical and poorly defined. The legislation would affect any business operating in Texas that isn’t classified as a small business by federal standards.
The bill emerged from a multi-state working group organized by the Future of Privacy Forum, drawing inspiration from European Union-style technology regulations. Despite being presented as “red state” legislation, the proposal represents a significant departure from traditional Republican deregulatory positions.
Notable changes from the original draft include a narrowed definition of “substantial factor” in decision-making, the removal of private right of action, and revised language around algorithmic discrimination. However, the core requirements for extensive documentation and compliance measures remain largely unchanged.