Relating to the regulation and reporting on the use of artificial intelligence systems by certain business entities and state agencies; providing civil penalties.

1. **ONE-SENTENCE SUMMARY:** This bill requires certain businesses in Texas to report on their use of artificial intelligence systems and establishes penalties for non-compliance. 2. **KEY REQUIREMENTS:** - Businesses using artificial intelligence systems must report their usage and practices to the state. - Ensure transparency in AI systems, including how they impact consumers and employees. - Maintain documentation of AI system operations and decision-making processes. 3. **DEADLINES:** - The bill is currently introduced and does not have an effective date yet; keep an eye on legislative updates for compliance timelines. 4. **PENALTIES:** - Businesses that fail to comply with reporting requirements may face civil penalties, though specific amounts are not detailed in the current text. 5. **SMB IMPACT:** Small businesses using AI will need to implement reporting processes and maintain transparency about their AI systems, which could require additional resources and time. Non-compliance could lead to financial penalties, so it’s essential to stay informed and prepared.