88R19089 CXP-F     By: Capriglione, Lalani H.B. No. 2060     Substitute the following for H.B. No. 2060:     By:  Turner C.S.H.B. No. 2060       A BILL TO BE ENTITLED   AN ACT   relating to the creation of the artificial intelligence advisory   council.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 2054, Government Code, is amended by   adding Subchapter S to read as follows:   SUBCHAPTER S. ARTIFICIAL INTELLIGENCE ADVISORY COUNCIL          Sec. 2054.621.  DEFINITIONS. In this subchapter:                (1)  "Algorithm" means a computerized procedure   consisting of a set of steps used to accomplish a determined task.                (2)  "Artificial intelligence systems" means systems   capable of:                      (A)  perceiving an environment through data   acquisition and processing and interpreting the derived   information to take an action or actions or to imitate intelligent   behavior given a specific goal; and                      (B)  learning and adapting behavior by analyzing   how the environment is affected by prior actions.                (3)  "Automated decision system" means an algorithm,   including an algorithm incorporating machine learning or other   artificial intelligence techniques, that uses data-based analytics   to make or support governmental decisions, judgments, or   conclusions.                (4)  "Automated final decision system" means an   automated decision system that makes final decisions, judgments, or   conclusions without human intervention.                (5)  "Automated support decision system" means an   automated decision system that provides information to inform the   final decision, judgment, or conclusion of a human decision maker.                (6)  "Council" means the artificial intelligence   advisory council established under this subchapter.                (7)  "Public or private institution of higher   education" means:                      (A)  an institution of higher education, as   defined by Section 61.003, Education Code; or                      (B)  a private or independent institution of   higher education, as defined by Section 61.003, Education Code.          Sec. 2054.622.  ARTIFICIAL INTELLIGENCE ADVISORY COUNCIL.   (a) The council is composed of the following seven members:                (1)  one member of the house of representatives   appointed by the speaker of the house of representatives;                (2)  one member of the senate appointed by the   lieutenant governor;                (3)  the executive director or the executive director's   designee; and                (4)  the following four members appointed by the   governor:                      (A)  an academic professional specializing in   ethics who is employed by a public or private institution of higher   education;                      (B)  an academic professional specializing in   artificial intelligence systems who is employed by a public or   private institution of higher education;                       (C)  an expert on law enforcement usage of   artificial intelligence systems; and                      (D)  an expert in constitutional and legal rights.          (b)  The council members appointed under Subsections (a)(1)   and (2) shall serve as co-chairs of the council.          (c)  A member of the council is not entitled to compensation   or reimbursement for expenses.          (d)  The department shall provide administrative support for   the council.          (e)  The council shall meet at the call of the co-chairs.  The   council may meet in person or by telephone conference call,   videoconference, or another similar telecommunication method.     Notwithstanding Chapter 551 or any other law, a meeting held by   telephone conference call, videoconference, or another similar   telecommunication method is subject to the requirements of Sections   551.125(c), (d), (e), and (f).          (f)  The council shall study and monitor artificial   intelligence systems developed, employed, or procured by state   agencies. In carrying out its duties under this section, the   council shall:                (1)  assess the need for a state code of ethics for   artificial intelligence systems in state government;                (2)  review automated decision systems inventory   reports submitted by state agencies under Section 2054.623,   including a review of:                      (A)  the effect of the automated decision systems   on the constitutional or legal rights, duties, or privileges of the   residents of this state; and                      (B)  the potential benefits, liabilities, or   risks that this state could incur as a result of implementing the   automated decision systems; and                (3)  recommend administrative actions that state   agencies may take without further legislative authorization.          (g)  Not later than December 1, 2024, the council shall   submit a report to the legislature that includes:                (1)  a summary of the council's findings after   reviewing the automated decision systems inventory reports   submitted under Section 2054.623;                (2)  a summary of the recommendations of any relevant   national bodies on artificial intelligence systems in state   government;                (3)  an assessment of the impact of using artificial   intelligence systems in state government on the liberty, finances,   livelihood, and privacy interests of the residents of this state;                (4)  recommendations of any policies necessary to:                      (A)  protect the privacy and interests of the   residents of this state from any diminution caused by employment of   artificial intelligence systems by state government;                      (B)  ensure that the residents of this state are   free from unfair discrimination caused or compounded by the   employment of artificial intelligence systems in state government;   and                      (C)  promote the development of ethical   artificial intelligence systems in state government; and                (5)  any other information that the council considers   relevant.          Sec. 2054.623.  AUTOMATED DECISION SYSTEMS INVENTORY   REPORT. (a) Not later than July 1, 2024, each agency in the   executive and legislative branches of state government, using money   appropriated to the agency by this state, shall submit an inventory   report of all automated decision systems that are being developed,   employed, or procured by the agency. For each automated decision   system, the inventory report must include a description of:                 (1)  the name and vendor of the automated decision   system, if any;                (2)  the automated decision system's general   capabilities, including:                      (A)  reasonably foreseeable capabilities outside   the scope of the agency's proposed use; and                      (B)  whether the automated decision system is used   or may be used for independent decision-making powers and the   impact of those decisions on the residents of this state;                (3)  the types of data inputs that the technology uses;                (4)  how the data described by Subdivision (3) is   generated, collected, and processed;                (5)  the types of data the automated decision system is   reasonably likely to generate;                (6)  whether the automated decision system has been   tested by an independent third party, has a known bias, or is   untested for bias;                (7)  the purpose and proposed use of the automated   decision system, including:                      (A)  the decisions the automated decision system   will be used to make or support;                      (B)  whether the automated decision system is an   automated final decision system or an automated support decision   system; and                       (C)  the automated decision system's intended   benefits, including any data or research relevant to the outcome of   those results;                (8)  how automated decision system data is securely   stored and processed and whether the agency intends to share access   to the automated decision system or data from that automated   decision system with any other entity, and why; and                (9)  the information technology fiscal impacts of the   automated decision system, including:                      (A)  initial acquisition costs and ongoing   operating costs, such as maintenance, licensing, personnel, legal   compliance, use auditing, data retention, and security costs;                      (B)  any cost savings that would be achieved   through the use of the technology; and                      (C)  any current or potential sources of funding,   including any subsidies or free products being offered by vendors   or governmental entities.          (b)  Not later than March 1, 2024, the council, in   consultation with the department, shall prescribe the form,   contents, and manner of submission of the automated decision   systems inventory report required under this section.          (c)  Each agency shall submit the report required under this   section to the:                (1)  department;                (2)  council; and                (3)  standing committees of the senate and house of   representatives with primary jurisdiction over state agency   information technology.          Sec. 2054.624.  COUNCIL ABOLISHED; EXPIRATION OF   SUBCHAPTER. The council is abolished and this subchapter expires   January 1, 2025.          SECTION 2.  (a) As soon as practicable after the effective   date of this Act but not later than October 1, 2023, the appropriate   appointing authorities shall appoint the members to the artificial   intelligence advisory council as required by Section 2054.622,   Government Code, as added by this Act.          (b)  Not later than November 1, 2023, the advisory council   established under Subchapter S, Chapter 2054, Government Code, as   added by this Act, shall hold its initial meeting.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2023.