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final version significantly narrowed its scope
webLegal analysis from K&L Gates law firm on a US state AI law relevant to AI governance practitioners tracking the evolving US regulatory landscape; notable for its rollback from stricter proposed requirements.
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Summary
Analysis of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA/HB 149), signed June 22, 2025, which takes effect January 1, 2026. The final version significantly narrowed its scope from the original bill, eliminating most private sector obligations and focusing primarily on government agency AI use and narrow prohibitions like social scoring and manipulation to incite violence.
Key Points
- •TRAIGA was signed into law June 22, 2025, effective January 1, 2026, but is far narrower than the originally proposed comprehensive AI bill (HB 1709).
- •Private employers are NOT required to disclose AI use to employees or job applicants; disclosure obligations apply only to state agencies and healthcare providers.
- •Only intentional unlawful discrimination using AI is prohibited; disparate impact alone is insufficient to establish an intent to discriminate.
- •Employers are no longer required to conduct AI impact assessments, a key obligation removed from the original bill.
- •TRAIGA prohibits specific harmful AI uses: social scoring and manipulation to incite violence, self-harm, or criminal activity, applicable to all covered entities.
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Pared Back Version of the Texas Responsible Artificial Intelligence Governance Act Signed Into Law | HUB | K&L Gates
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Pared Back Version of the Texas Responsible Artificial Intelligence Governance Act Signed Into Law
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Date: 25 June 2025
US Labor, Employment, and Workplace Safety Alert
By:
Brent D. Hockaday , Gregory T. Lewis
On 22 June 2025, the Texas Responsible Artificial Intelligence Governance Act (TRAIGA) (HB 149) was signed into law by Governor Greg Abbott. 1 TRAIGA takes effect on 1 January 2026.
Originally introduced in late 2024 as HB 1709 and touted as the most comprehensive pieces of artificial intelligence (AI) legislation in the country (the Original Bill), 2 TRAIGA, in its final form, significantly reduces the law’s regulatory scheme—eliminating most of the private sector obligations contained in the Original Bill and focusing on government agencies’ use of AI systems and the use of AI for certain, limited purposes, such as social scoring and to manipulate human behavior to incite violence, self-harm, or engage in criminal activities.
TRAIGA regulates those who (1) deploy or develop “artificial intelligence systems” in the Texas; (2) produce a product or service used by Texas residents; or (3) promote, advertise, or conduct business in the state.
Under TRAIGA, “artificial intelligence system” means “any machine-based system that, for any explicit or implicit objective, infers from the inputs the system receives how to generate outputs, including content, decisions, predictions, or recommendations, that can influence physical or virtual environments.”
Although this definition is broad, the obligations TRAIGA imposes on private employers are much more limited than in the Original Bill.
Key Provisions for Private Employers 3
Eliminates Disclosure Obligations
Under TRAIGA, covered private employers are not required to disclose their use of AI, including to job applicants or employees, as they were under the Original Bill. Instead, only state agencies are required to disclose to “consumers” 4 that they are interacting with AI and health care service providers are required to disclose to patients when they are using AI systems in treatment.
Only Prohibits Intentional Unlawful Discrimination
Consistent with Executive Order 14281, TRAIGA only prohibits the use of AI systems that are developed or deployed “with the intent to unlawfully discriminate against a protected class” (emphasis added). Disparate impact alone cannot s
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