TX Government AI Governance (Subchapter S / SB 1964)
Texas Government Code Chapter 2054, Subchapter S — Regulation and Use of Artificial Intelligence Systems by Governmental Entities (Senate Bill 1964)
Texas · Tex. S.B. 1964, 89th Leg., R.S. (2025); Tex. Gov't Code ch. 2054, subch. S
- Status
- In effect
- Took effect
- September 1, 2025
- Applies to
- Texas state agencies and other covered governmental entities that procure, develop, deploy, or use AI systems, plus their AI vendors.
- Enforced by
- Texas Attorney General (with oversight roles for the Department of Information Resources)
Texas now requires state agencies to catalog the artificial intelligence systems they use and to give extra review to higher-risk systems that influence consequential decisions about people. The state's Department of Information Resources must publish a statewide AI code of ethics and set baseline rules for managing AI risk and governance, and agencies must run assessments on their highest-scrutiny systems. When a member of the public interacts with a government AI system, the agency has to tell them they are dealing with AI. If an agency or its vendor breaks these rules, the attorney general can go to court to stop the violation and can void a vendor's contract that caused it.
Who is protected: Members of the public who interact with or are affected by AI systems operated by Texas state governmental entities.
Legal detail
S.B. 1964 (89th Leg., R.S.) adds Subchapter S (Secs. 2054.701 et seq.) to Chapter 2054 of the Texas Government Code, mandating agency AI inventories, heightened-scrutiny review and assessments, a DIR-issued statewide AI code of ethics and minimum risk-management/governance standards, consumer disclosure of AI interaction, and attorney-general enforcement via injunction and contract voiding.
Key facts
| Jurisdiction | Texas |
|---|---|
| Level | State |
| Strength | Limited |
| Enacted | June 20, 2025 |
| Citation | Tex. S.B. 1964, 89th Leg., R.S. (2025); Tex. Gov't Code ch. 2054, subch. S |
| Private right of action | No, agency enforcement only |
| Penalties | The attorney general may seek a court order to halt a violation and may void a vendor contract that caused a violation if the vendor fails to cure after notice; repeat voided contracts may lead the Comptroller to bar the vendor from future state contracts. |
| Topics | government use of AI · AI disclosure and transparency · automated decision-making |
| Bill text | Texas Legislature Online — S.B. 1964, 89th Legislature (R.S.), Bill History |
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Related government use of AI rules elsewhere
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- WA SB 5982 (Data Center / Clean Energy) · In effect
- Arkansas public entity AI/ADS policy mandate (Act 848, 2025) · In effect
- Inver Grove Heights MN data center moratorium amended under lawsuit (2026) · In effect
- FERC order directing PJM and other grid operators to reform tariffs on… · Enacted (not yet in effect)
- San Marcos citywide data center ban (Land Use Matrix amendment) · In effect
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