WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
(a)(1) "Artificial intelligenceArtificial intelligence"Artificial intelligence" means the use 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, including computer vision, speech or natural language processing, and content generation.Tex. Bus. & Com. Code § 503.001(a)(1)" means the use 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, including computer vision, speech or natural language processing, and content generation.
(a)(2) "Biometric identifierBiometric identifier"Biometric identifier" means a retina or iris scan, fingerprint, voiceprint, or record of hand or face geometry.Tex. Bus. & Com. Code § 503.001(a)(2)" means a retina or iris scan, fingerprint, voiceprint, or record of hand or face geometry.
Section 1 of the bill amends subsection (a) of Tex. Bus. & Com. Code § 503.001 to restructure the existing definitions and add a new definition of artificial intelligence. The definition of biometric identifier is substantively unchanged but is renumbered as paragraph (2). These definitions establish the operative scope for the new AI exemption in subsection (f).
(f) 1 This section does not apply to artificial intelligenceArtificial intelligence"Artificial intelligence" means the use 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, including computer vision, speech or natural language processing, and content generation.Tex. Bus. & Com. Code § 503.001(a)(1) or related training, processing, or storage, unless performed for the purpose of uniquely identifying a specific individual. If a biometric identifierBiometric identifier"Biometric identifier" means a retina or iris scan, fingerprint, voiceprint, or record of hand or face geometry.Tex. Bus. & Com. Code § 503.001(a)(2) captured for the commercial purpose of artificial intelligenceArtificial intelligence"Artificial intelligence" means the use 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, including computer vision, speech or natural language processing, and content generation.Tex. Bus. & Com. Code § 503.001(a)(1) is used for another and separate commercial purpose, the person possessing the biometric identifierBiometric identifier"Biometric identifier" means a retina or iris scan, fingerprint, voiceprint, or record of hand or face geometry.Tex. Bus. & Com. Code § 503.001(a)(2) is subject to this section's provisions for the possession and destruction of a biometric identifierBiometric identifier"Biometric identifier" means a retina or iris scan, fingerprint, voiceprint, or record of hand or face geometry.Tex. Bus. & Com. Code § 503.001(a)(2) and the associated penalties.
New subsection (f) is the operative heart of the bill. It creates a conditional exemption from the biometric identifier statute for artificial intelligence activities — specifically AI training, processing, and storage of biometric identifiers — unless the AI use is for the purpose of uniquely identifying a specific individual. This carve-out significantly narrows CUBI's reach for entities using biometric data in AI model development where individual identification is not the objective.
The second sentence addresses repurposing: if a biometric identifier originally captured for AI purposes is later used for a separate commercial purpose, the possessor becomes subject to the statute's existing requirements for possession, destruction, and associated penalties. This prevents entities from using the AI exemption as a backdoor to avoid CUBI obligations when they subsequently deploy biometric data for non-AI commercial identification or other regulated uses.
This Act takes effect September 1, 2025.
Section 2 sets the effective date at September 1, 2025, the standard Texas legislative effective date for the 89th Regular Session.