HB 149 Imposes Comprehensive Regulations Addressing the Development, Use, and Deployment of Artificial Intelligence Systems

Artificial Intelligence (AI) has been a hot topic in policymaking, and Texas recently took action to address the expanding practice. HB 149 was signed into law on June 22, 2025, and will take effect January 1, 2026. The new law will impose comprehensive regulations addressing the development, use, and deployment of AI systems in Texas. Here, we explore various provisions of the bill that attempt to protect privacy rights promote transparency, ensure a unified, statewide approach to AI regulation, and establish appropriate limitations for the development and deployment of AI systems.

The Capture and Use of Biometric Identifiers

Once in effect, HB 149 will prohibit the capture of biometric identifiers from publicly available images or media, clarifying that the appearance of biometric identifiers in such images or media does not constitute consent for use unless the identified individual made the image media publicly available themselves. While there are exceptions for biometric identifiers used to train AI systems, this section seeks to ensure that biometric identifiers are not arbitrarily captured and used for commercial purposes, safeguarding the privacy rights of individuals identified in publicly available images or media.

Local Preemption and Regulations Impacting Governmental Entities

HB 149 includes a local preemption, barring the adoption of local rules regarding the use of AI systems in an attempt to ensure a unified, statewide approach to the regulation of AI systems. Next, HB 149 outlines an extensive regulatory framework addressing many pressing concerns surrounding the rapid evolution and expansion of AI systems.

In an effort to promote transparency, the new law will require governmental agencies deploying consumer-facing AI systems to disclose to consumers when they are interacting with an AI system before or at the time of interaction.

The new law will also prohibit governmental entities from using AI systems to socially score individuals or groups—a practice that could result in arbitrary and exclusionary ranking of individuals or groups using social characteristics and behavior—and from developing or deploying an AI system to uniquely identify individuals using biometric data. Both these sections attempt to safeguard privacy rights and prevent governmental entities from exploiting new technology in a detrimental, targeted manner.

Protecting Rights, Preventing Discrimination, and Promoting Public Safety

Finally, the new law includes several additional sections specifically intending to protect civil rights, prevent discrimination, and promote public safety.

First, considering the potential negative mental health impacts associated with AI use, the new law will prohibit the development or deployment of an AI system that intends to incite or encourage a person to harm themselves, others, or engage in criminal activity.

Next, HB 149 will also prohibit the development or deployment of an AI system with the “sole intent” of infringing, restricting, or otherwise impairing an individual’s constitutional rights. Additionally, the new law will bar the development and deployment of an AI system “with the intent to unlawfully discriminate against a protected class in violation of state or federal law.” Lastly, HB 149 includes a key section addressing the use of AI in sexually explicit content and child pornography, under which the new law will prohibit the use of AI systems to produce or distribute unlawful, sexually-explicit visual material or deep fake videos, including child pornography.

The remaining provisions of HB 149 address the enforcement of the new law, as well as oversight and compliance regulations relating to the continued development and deployment of AI systems.

Conclusion

New technology should always be developed, deployed, and used responsibly, guided by regulations that protect the rights and well-being of users. Moreover, as we all attempt to navigate the increasing integration of AI systems into daily activities, concerns for both consumers and AI developers and deployers must be addressed. HB 149 attempts to do just that by establishing a cohesive and comprehensive regulatory framework prioritizing transparency, privacy rights, and public safety. So, while AI systems continue to evolve rapidly, it is important to understand the regulatory framework under which they will expand, operate, and be incorporated into everyday life.

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