IN BRIEF: Texas’ Responsible Artificial Intelligence Governance Act
On June 22, 2025, the Texas governor signed House Bill 149, the Texas Responsible Artificial Intelligence Governance Act (“TRAIGA”) to set standards geared towards ensuring responsible use of AI as it rapidly evolves. New restrictions and prohibitions on certain uses of AI will be in effect for both government agencies and private companies starting January 1, 2026, requiring businesses to reevaluate current policies and procedures.
Key Components
TRAIGA is applicable to private sector companies developing, marketing, selling, or otherwise providing AI-generated content or services to Texas residents and to government agencies using AI to interact with the public.
The Act prohibits AI from being used to intentionally:
- Incite or encourage self-harm, violence, or illegal activity;
- Infringe, restrict, or otherwise impair an individual’s rights guaranteed under the U.S. Constitution;
- Discriminate against a protected class in violation of state or federal law; and
- Produce or aid in the producing or distributing of certain sexually explicit content or child pornography, including deep fakes.
TRAIGA imposes specific requirements on government agencies, including the obligation to make clear and conspicuous disclosures before and during interactions to inform each consumer that they are engaging with AI. Further, government entities are prohibited from using AI for certain things, such as using AI to uniquely identify individuals using biometric data without their consent.
Texas has established a regulatory sandbox program for individuals and organizations that want to develop and test AI systems in a controlled environment. This program allows participants to operate under certain legal protections and relaxed regulatory constraints during development and testing. Texas is also launching the Texas Artificial Intelligence Council, which will provide AI training programs, issue reports, and advise on AI-related policy. However, the Council will not have rulemaking authority.
Enforcement
The Texas attorney general has sole enforcement power under TRAIGA. Upon notice of an alleged violation, the accused has 60 days to cure the violation, document the remediation, and update internal policies to prevent future violations. Civil penalties range from $10,000 to $12,000 per curable violation, $80,000 to $200,000 per uncurable violation, and $2,000 to $40,000 per day for ongoing violations.
If the violator is licensed, registered, or certified by a state agency, the attorney general may recommend further enforcement action, including license suspension or revocation and fines up to $100,000.
Defenses
TRAIGA provides several defenses against liability. First, a person is not liable under the Act if an end user or third party misuses the AI system in a way that violates TRAIGA. Second, liability does not apply if the person discovers a violation through testing or a good-faith auditing procedure. Third, a person is not liable if they substantially comply with the National Institute of Standards and Technology’s AI Risk Management Framework or other comparable and widely recognized standards.
If you or your business may be affected by these changes, please contact Kessler Collins to assist you in navigating these challenges and protecting your interests.
