EveryAILaw.comTexas TRAIGA (HB 149)
Obligations Covered
Timeline
| Milestone | Date | Notes |
|---|---|---|
| Signed | Jun 22, 2025 | Governor signed |
| Effective | Jan 1, 2026 | In effect |
Related Regulations and Standards
Related instruments are selected from shared compliance obligations and jurisdiction coverage.
Provisions (1)
AI Discrimination Prohibition
Requirements
| Requirement | Details |
|---|---|
| Intentional discrimination prohibited | No person may develop or deploy an AI system with **intent** to unlawfully discriminate against a protected class |
| Disparate impact insufficient | Disparate impact alone does not establish intent to discriminate (§ 552.056(c)) |
| Subtitle applicability alternatives | Subtitle D applies only to a person who promotes, advertises, or conducts business in Texas; produces a product or service used by Texas residents; or develops or deploys an AI system in Texas (§ 551.002) |
| Insurance-services exception | Section 552.056 does not apply to an insurance entity **for purposes of providing insurance services** if it is subject to the specified laws governing unfair discrimination, competition, or deceptive practices in insurance. “Insurance entity” includes the developer of an artificial intelligence system used by a listed insurer or fraternal benefit society (§ 552.056(a)(2), (d)) |
| Banking compliance rule | A federally insured financial institution is considered compliant with § 552.056 only if it complies with **all federal and state banking laws and regulations** (§ 552.056(e)) |
| Exclusive enforcement and no private action | The attorney general has exclusive Chapter 552 enforcement authority except for the qualified state-agency route in § 552.106; Chapter 552 supplies no private right of action (§ 552.101) |
| Notice and 60-day cure | The attorney general may not sue before the **60th day** after written notice and may not sue if, before that day, the person actually cures, provides a written statement with supporting documentation showing how it cured, and makes necessary changes to internal policies to reasonably prevent recurrence (§ 552.104) |
| Uncured civil penalties | For an uncured violation, § 552.105(a) sets $10,000–$12,000 for each curable violation or breach of a cure statement, $80,000–$200,000 for each uncurable violation, and $2,000–$40,000 for each day a violation continues |
| Qualified liability defenses | A defendant may not be found liable under § 552.105(e) for another person’s prohibited use of its affiliated system. The discovery alternatives are separate: the defendant discovers a violation through feedback; through testing, including adversarial or red-team testing; by following applicable state-agency guidelines; **or through an internal review process if the defendant substantially complies** with the current NIST Generative AI Profile or another recognized AI risk-management framework. The framework-compliance condition belongs only to the internal-review route, and it is not blanket immunity |
| Undeployed-system civil-penalty limit | The attorney general may not bring an action to collect a § 552.105 civil penalty for an AI system that has not been deployed (§ 552.105(f)) |
| Qualified state-agency sanctions | A state agency may sanction a person licensed, registered, or certified by that agency only after the person has been found in violation in a § 552.105 court action and the attorney general recommends added agency enforcement. Sanctions may include suspension, probation, or revocation of a license, registration, certificate, or other authorization, plus a monetary penalty not to exceed $100,000 (§ 552.106) |
Penalties
| Violation | Fine |
|---|---|
| Curable violation or cure-statement breach, uncured | $10,000–$12,000 for each violation (§ 552.105(a)(1)) |
| Uncurable violation | $80,000–$200,000 for each violation (§ 552.105(a)(2)) |
| Continued violation | $2,000–$40,000 for each day (§ 552.105(a)(3)) |
| Qualified state-agency sanction | Up to $100,000, only after a § 552.105 violation finding and attorney-general recommendation (§ 552.106) |
Cite this regulation
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Attribution: EveryAILaw, PAICE.work PBC. “Texas TRAIGA (HB 149)”, EveryAILaw.com, May 21, 2026. https://everyailaw.com/regulation/texas-traiga/
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