Relating to establishing a framework to govern the use of artificial intelligence systems in critical decision-making by private companies and ensure consumer protections; authorizing a civil penalty.

SB 2966 would require private companies using artificial intelligence systems to make consequential decisions - such as those affecting credit, employment, or housing - to establish a consumer protection framework. The bill defines "consequential decisions" as those with material legal or significant effects on consumers and mandates companies to create governance structures for AI systems used in such decisions. Violations would trigger a civil penalty of up to one dollar per violation. The bill is pending in the Texas Legislature and would take effect September 1, 2025, if enacted.