Texas Responsible AI Governance Act (House Bill 149)

Applies To

Overview

HB 149 represents Texas's entry into state-level AI regulation, creating a statutory framework governing how AI systems may be deployed by businesses and other covered entities operating in or affecting Texas. The Act sets out requirements for documenting AI use, assessing risks to affected individuals, and maintaining accountability structures within deploying organizations. Enforcement authority and specific penalty provisions are assigned to a designated state agency or the Texas Attorney General, consistent with Texas's existing consumer protection enforcement model. The law signals a broader trend of US state-level AI regulation in the absence of a comprehensive federal statute. Specific compliance deadlines and exemption thresholds have not been fully confirmed at the time of this entry and are subject to regulatory guidance. Enterprises operating in Texas should monitor forthcoming implementing rules for precise compliance timelines.

Key Requirements

• •Establish and maintain internal AI governance policies covering deployed AI systems that affect Texas residents
• •Conduct and document risk assessments for AI systems prior to deployment, with particular attention to high-risk use cases
• •Implement accountability mechanisms, including designation of responsible personnel for AI oversight
• •Provide transparency disclosures to affected individuals regarding material AI-driven decisions
• •Maintain records of AI system use and risk assessments sufficient for regulatory audit or inquiry
• •Comply with enforcement actions initiated by the Texas Attorney General, with civil penalty exposure for violations

What Your Organization Must Do

• →Designate a named AI Compliance Owner (e.g., Chief Compliance Officer or General Counsel) before June 1, 2026 to serve as the accountable party for all Texas-facing AI deployments and regulatory correspondence with the Texas Attorney General.
• →Inventory all AI systems currently deployed or planned for deployment that affect Texas residents, categorizing each by risk level, and complete this mapping no later than Q1 2026 to allow time for remediation before the effective date.
• →Develop and adopt written AI governance policies covering deployment standards, risk thresholds, and oversight procedures for all covered systems, ensuring policies are reviewed and approved by senior leadership prior to June 1, 2026.
• →Complete pre-deployment risk assessments for each covered AI system, prioritizing high-risk use cases, and retain documented assessment records in a centralized repository accessible for regulatory audit or Attorney General inquiry.
• →Draft and implement consumer-facing transparency disclosures for any AI-driven decisions that materially affect Texas residents, coordinating with Legal and Product teams to embed disclosures into existing customer communication workflows.
• →Monitor the Texas Attorney General's office and designated state agency for implementing rules and compliance guidance, scheduling quarterly reviews through 2026 to incorporate any updated deadlines, exemption thresholds, or penalty guidance into the internal compliance program.

Playbook Guidance

Step-by-step implementation guidance for compliance teams.

Frequently Asked Questions

Does the Texas Responsible AI Governance Act apply to companies headquartered outside Texas?

Yes. HB 149 applies to any entity deploying AI systems that affect Texas residents, regardless of where the company is headquartered. If your AI system makes decisions touching Texas residents, you are likely a covered entity and should assess your compliance obligations accordingly.

What is the effective date for HB 149 compliance?

The Act takes effect June 1, 2026. Implementing rules from the Texas Attorney General or designated state agency may clarify specific compliance deadlines, exemption thresholds, and penalty guidance ahead of that date. Companies should monitor regulatory guidance through early 2026.

Who enforces the Texas Responsible AI Governance Act and what are the penalties for non-compliance?

Enforcement authority rests with the Texas Attorney General, consistent with Texas's existing consumer protection model. Violations expose companies to civil penalties, though precise penalty amounts are subject to implementing rules. Organizations should treat AG enforcement risk as comparable to other Texas consumer protection statutes.

Does HB 149 require a pre-deployment risk assessment for every AI system?

Yes. The Act requires documented risk assessments for AI systems prior to deployment, with heightened scrutiny for high-risk use cases. Assessments must be retained in records sufficient for regulatory audit or AG inquiry, so a centralized documentation repository is advisable.

How does the Texas Responsible AI Governance Act compare to the Colorado AI Act?

Both laws impose risk assessment, transparency, and accountability obligations on AI deployers at the state level. Colorado's law focuses specifically on algorithmic discrimination in high-risk AI, while HB 149 takes a broader governance approach covering internal policies, accountability structures, and transparency disclosures for material AI-driven decisions affecting residents.

What transparency disclosures does HB 149 require when AI makes decisions affecting Texas residents?

The Act requires deployers to provide transparency disclosures to individuals subject to material AI-driven decisions. The precise format and trigger thresholds are expected to be addressed in implementing rules, but companies should begin coordinating Legal and Product teams now to embed disclosures into customer-facing workflows before the June 2026 effective date.