Insights
Dated developments, their legal status and related reading.
Law checked through
When Texas Law Requires an AI Disclosure
Business and Commerce Code § 552.051 reaches governmental agencies and health care providers. It does not impose a general labeling rule on private chatbots.
AI Data Duties in Texas Processor Contracts
HB 149 added AI to a processor’s security assistance duty under the TDPSA. It did not add a new mandatory contract clause.
The TRAIGA Complaint Portal Is Open
The Attorney General’s online complaint mechanism, required by HB 149, is the first step in TRAIGA enforcement.
Portal verified available:
Heppner and Privilege for Consumer AI Research
A federal court held that a defendant’s own research with a consumer AI tool was neither privileged nor work product.
Comet v. XP Power and the Burden on Ascertainability
Under the federal trade secret statute, the plaintiff must prove its information was not readily ascertainable. A jury instruction that said otherwise cost the plaintiff its verdict.
xAI v. OpenAI and Coordinated Departures
The June 15 dismissal required allegations connecting the hiring company to the asserted trade-secret misconduct.
The FTC’s Proposed Policy Statement on AI Accuracy
The FTC proposed a statement on how Section 5 applies to suppressing accuracy in AI systems, with implications for state laws.
SB 2420 at the Fifth Circuit and the Supreme Court
The June 4 stay allowed enforcement of the app-store law; the July 6 Supreme Court order left that stay in place.
The 2027 Texas Session: Calendar and What to Watch
The 90th Legislature convenes January 12, 2027. This page will track AI bills as they are filed.
Session convenes:
TAKE IT DOWN Act Platform Duties Are Now Enforceable
Covered platforms must remove nonconsensual intimate images, including AI forgeries, within 48 hours of a valid request.
Federal AI Hiring Priorities Changed; Title VII Still Applies
Executive Order 14281 changes federal enforcement priorities without removing Title VII’s disparate-impact provision.
SB 815 Limits Automated Adverse Determinations
Texas utilization review agents may not use automated decision systems to make adverse determinations.
Proposed Federal Evidence Rule 707 Returns for Further Study
The released proposal was withdrawn; modified text remains under committee study.
TDI Bulletin B-0003-26 on Insurers’ Use of AI
The Texas Department of Insurance expects human review of consequential AI-supported decisions and governance of AI systems.
DIR Adopts a Statewide AI Code of Ethics
DIR’s AI rules took effect March 18, 2026, with coverage that differs by entity and system.