Texas § BC.553.051 - ESTABLISHMENT OF SANDBOX PROGRAM

§ BC.553.051. ESTABLISHMENT OF SANDBOX PROGRAM

ESTABLISHMENT OF SANDBOX PROGRAM. (a) The department, in consultation with the council, shall create a regulatory sandbox program that enables a person to obtain legal protection and limited access to the market in this state to test innovative artificial intelligence systems without obtaining a license, registration, or other regulatory authorization. (b) The program is designed to: (1) promote the safe and innovative use of artificial intelligence systems across various sectors including healthcare, finance, education, and public services; (2) encourage responsible deployment of artificial intelligence systems while balancing the need for consumer protection, privacy, and public safety; (3) provide clear guidelines for a person who develops an artificial intelligence system to test systems while certain laws and regulations related to the testing are waived or suspended; and (4) allow a person to engage in research, training, testing, or other pre-deployment activities to develop an artificial intelligence system. (c) The attorney general may not file or pursue charges against a program participant for violation of a law or regulation waived under this chapter that occurs during the testing period. (d) A state agency may not file or pursue punitive action against a program participant, including the imposition of a fine or the suspension or revocation of a license, registration, or other authorization, for violation of a law or regulation waived under this chapter that occurs during the testing period. (e) Notwithstanding Subsections (c) and (d), the requirements of Subchapter B , Chapter 552 , may not be waived, and the attorney general or a state agency may file or pursue charges or action against a program participant who violates that subchapter. Added by Acts 2025, 89th Leg., R.S., Ch. 1174 (H.B. 149 ), Sec. 4, eff. January 1, 2026.