In a landmark move, the Texas Legislature has passed the Texas Responsible AI Governance Act (TRAIGA), positioning itself as a national leader in state-level artificial intelligence regulation. The bill is currently sitting on Governor Abbott’s desk and if signed it is set to take effect on January 1, 2026. TRAIGA introduces a framework that balances innovation with ethical oversight—without imposing heavy burdens on businesses.  

What Is TRAIGA?

TRAIGA, officially House Bill 149, is a comprehensive yet business-friendly AI governance law introduced by Rep. Giovanni Capriglione. It replaces an earlier, more stringent version of the bill and reflects extensive input from tech industry stakeholders, legal experts, and civil rights advocates.  

The law aims to ensure that AI technologies used in Texas are transparent, non-discriminatory, and aligned with public interest. Unlike some other state laws, TRAIGA avoids overregulation by focusing on clear, enforceable principles rather than prescriptive technical standards.

Key Provisions

  1. Anti-Discrimination Safeguards: Prohibits the intentional use of AI systems to discriminate against protected classes such as race, gender, religion, or disability. However, it notably excludes “disparate impact” claims—meaning unintentional bias alone is not grounds for legal action. 
  2. Ban on Manipulative AI: Outlaws AI applications that manipulate human behavior to incite violence, self-harm, or criminal activity. It also bans social scoring systems and AI tools that suppress political speech or infringe on freedom of expression.
  3. Transparency Requirements: Requires state government agencies to disclose to consumers when they are interacting with an AI system, regardless of whether it seems obvious they are doing so.
  4. Biometric Collection: Imposes restrictions on the collection and use of biometric data without consent but includes exemptions for certain uses: like AI training (not to identify individuals), financial institutions, and for security or legal compliance. 
  5. Sandbox Program: The law allows businesses to test innovative AI systems in a controlled environment without full regulatory compliance for up to 36 months.
  6. Regulatory Oversight: Establishes a state-level AI advisory council to monitor implementation, recommend updates, and coordinate with federal and international bodies. However, it stops short of creating a dedicated enforcement agency. 

Why Texas? 

Historically, California has typically led the way on tech regulations. But in this case, Texas beat California to the punch and has signaled to the rest of the country that it wants to be to be the policy leader in AI. 

Unfortunately, with this race between the states to regulate AI, AI governance is starting to look a lot like data privacy, which consists of a patch work of state laws. However, if the U.S. Congress passes national legislation with the inclusion of preemptive language, laws like this Texas law and other state laws would be wiped off the books. You can read more about that potential U.S Congress proposal here. 

Top 5 Steps Companies Can Take Now? 

  • Audit AI Systems: Identify and assess all AI tools in use for potential risks like bias or manipulation.
  • Enhance Transparency: Plan to clearly disclose when users are interacting with AI, especially in sensitive areas.
  • Develop Governance Policies: Establish internal guidelines and assign responsibility for AI oversight and compliance.
  • Train Teams: Educate staff on ethical AI practices and the requirements of the new law.
  • Engage Legal & Vendors: Consult legal counsel and review third-party AI tools for compliance readiness.

Potential Impacts for Oregon Companies: 

  • Cross-State Compliance Pressure: Oregon companies that serve customers or employ people in Texas may need to comply with TRAIGA’s requirements—such as disclosing AI use, avoiding manipulative practices, and ensuring non-discriminatory outcomes. 
  • Precedent for Oregon Legislature: TRAIGA may influence Oregon lawmakers as they shape their own AI regulations. If Oregon follows suit with similar transparency and anti-discrimination rules, local businesses could face a dual compliance burden. 
  • Vendor and Supply Chain Impacts: Oregon-based vendors providing AI tools to Texas clients may be asked to certify compliance with TRAIGA. This could affect product design, documentation, and customer support practices.

Final Thoughts

TRAIGA’s general soft-touch approach means that companies won’t face immediate compliance costs akin to those under the EU’s AI Act or California’s more aggressive proposals. Instead, Texas offers a model of “responsible innovation” that could influence future federal legislation. 

TRAIGA marks a pivotal moment in the evolution of AI governance in the U.S. While Texas has set a precedent for how states can regulate emerging technologies, for other states and companies alike, the message is clear: ethical AI is no longer optional, it’s the new standard.

About the Author: 

Alex Tkacz is the Associate General Counsel at Resource Innovations, Inc., where he supports the company on various legal matters including intellectual property, commercial agreements, corporate matters, mergers and acquisitions, litigation management, and compliance.