Relating to a study on employer and state agency use of automated employment decision tools in assessing an applicant's suitability for a position.

89(R) HB 5118 - House Committee Report version - Bill Text

89R26355 LRM-D

By: Bhojani, Ordaz, Lujan, Harris Davila,

H.B. No. 5118

Longoria

Substitute the following for H.B. No. 5118:

By: Button

C.S.H.B. No. 5118

A BILL TO BE ENTITLED

AN ACT

relating to a study on employer and state agency use of automated

employment decision tools in assessing an applicant's suitability

for a position.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. (a) In this Act:

(1) "Artificial intelligence system" means a system of

machine learning and related technologies that use data to train

statistical models for the purpose of enabling computer systems to

perform tasks normally associated with human intelligence or

perception, such as computer vision, speech or natural language

processing, and content generation.

(2) "Automated employment decision tool" means a

computational process or software application that uses

algorithms, machine learning, statistical modeling, data

analytics, or an artificial intelligence system to assess an

applicant's suitability for a position.

(3) "Bias" means the use of an artificial intelligence

system or an automated employment decision tool in an employer or

state agency's hiring process that results in discrimination

prohibited under Chapter 21, Labor Code, or federal

antidiscrimination laws.

(4) "Commission" means the Texas Workforce

Commission.

(5) "Department" means the Department of Information

Resources.

(6) "Employer" has the meaning assigned by Section

61.001, Labor Code.

(7) "State agency" means a department, commission,

board, office, or other agency in the executive branch of state

government created by the state constitution or a state

statute. The term includes a university system or an institution

of higher education as defined by Section 61.003, Education Code.

(8) "Study" means the study required by this section.

(b) The commission, in consultation and collaboration with

the department, shall conduct a study on the use of artificial

intelligence systems and automated employment decision tools in

employment and hiring practices of employers, including state

agencies.

(c) In conducting the study, the commission shall:

(1) evaluate the current and future use in hiring

decisions of artificial intelligence systems, including automated

employment decision tools;

(2) outline the methods and tools available for

detecting and auditing bias in the deployment of artificial

intelligence systems and automated employment decision tools in an

employer's or state agency's hiring process;

(3) determine:

(A) the minimum transparency and disclosure

requirements for artificial intelligence system vendors to

effectively audit for bias and the accountability requirements to

redress resulting bias; and

(B) the use of external, independent review for

bias in artificial intelligence systems and automated employment

decision tools used by employers and state agencies in hiring

decisions;

(4) identify existing deficiencies in oversight,

auditability, and regulatory protections regarding artificial

intelligence systems and automated employment decision tools used

in hiring decisions in this state; and

(5) analyze this state's ability to evaluate and

recognize bias and other risks in the use of artificial

intelligence systems and automated employment decision tools in

hiring decisions.

(d) The department shall assist the commission in

conducting the study by examining and providing information on:

(1) the use of artificial intelligence systems and

automated employment decision tools in state agency hiring

practices; and

(2) regulatory procedures that may assist in

decreasing bias and other risks posed by state agencies deploying

artificial intelligence systems and automated employment decision

tools for use in hiring decisions.

(e) In conducting the study, the commission may consult:

(1) state agencies and private sector employers with

experience in:

(A) the deployment of artificial intelligence

systems and automated employment decision tools; and

(B) the ethical use of artificial intelligence

systems and automated employment decision tools; and

(2) state agencies that specialize in technical

support related to artificial intelligence security to assist with

evaluating the use of artificial intelligence systems in hiring

decision processes.

(f) In addition to any money appropriated by the

legislature, the commission may solicit and accept federal funds

and gifts, grants, or donations from any source to administer and

finance the study.

(g) Not later than November 15, 2026, the commission shall

submit to the governor, the lieutenant governor, the speaker of the

house of representatives, and the chair of the standing committee

of each house of the legislature with primary jurisdiction over the

commission a written report that includes:

(1) the results of the study;

(2) any recommendations for legislative or other

action to increase transparency and decrease bias in the use of

artificial intelligence systems in employment decisions;

(3) a sector specific risk assessment for bias in the

use of artificial intelligence systems in state agency hiring

processes; and

(4) a proposal to establish a method of funding

research on artificial intelligence bias.

(h) This Act expires September 1, 2027.

SECTION 2. The Texas Workforce Commission may adopt rules

necessary to administer this Act and implement any related programs

authorized under this Act.

SECTION 3. This Act takes effect September 1, 2025.