Texas House Bill 1709 (HB 1709), known as the Texas Responsible Artificial Intelligence Governance Act, proposes one of the most comprehensive regulatory frameworks for artificial intelligence (AI) in the U. S. , set to take effect in September 2025. The bill aims to balance innovation with fairness, transparency, and accountability, especially as AI increasingly impacts significant decisions in areas such as hiring and employment background checks. Employers should start aligning their systems and policies with these forthcoming requirements. **Defining High-Risk AI** The bill specifies "high-risk AI systems" as those significantly influencing important decisions that affect access to opportunities like employment and healthcare. For example, AI tools used for resume screening are categorized as high-risk, while programs for cybersecurity and fraud detection are generally excluded unless they directly affect consequential decisions. A "substantial factor" in decision-making is defined as a critical element that meaningfully influences outcomes. "Consequential decisions" are actions that materially affect a person's access to services, underscoring the importance of ensuring fairness and transparency in AI processes. **Key Provisions of the Bill** 1. **Transparency and Disclosure:** Employers must inform individuals impacted by high-risk AI about its use in hiring, including its purpose, factors considered, human oversight, and contact details for the deploying party. 2. **Impact Assessments:** Employers are mandated to conduct annual impact assessments for their high-risk AI systems, updating them within 90 days after major changes—focusing on risks like algorithmic discrimination and data usage. 3.

**Bias Mitigation:** Employers must address and mitigate risks of algorithmic discrimination against protected classes and respond promptly to any identified biases. 4. **Vendor Accountability:** AI developers must provide detailed reports to employers, including metrics on accuracy and bias prevention measures. **Implications for Employment Decisions** HB 1709 will impose significant responsibilities on employers using AI in hiring, prioritizing accountability and fairness. Companies must conduct due diligence to ensure compliance with HB 1709’s requirements, including verifying vendor documentation on performance, bias mitigation, and training data. Non-compliance poses serious risks, including fines up to $200, 000 per incident for discriminatory outcomes and potential legal challenges. The bill’s transparency requirements aim to build trust but may also lead to increased scrutiny from applicants. The legislation also aims to simplify compliance by standardizing rules, thereby lessening the regulatory burden on employers operating in various Texas jurisdictions. **Preparing for Compliance** As HB 1709 is likely to be part of the legislative discussions starting January 14, 2025, employers should begin preparations now. Key steps include: - **Evaluating Vendor Compliance:** Engage with AI providers to ensure their systems meet the new standards. - **Updating Hiring Policies:** Revise internal policies to include disclosure and assessment obligations. - **Training HR Teams:** Educate teams about AI capabilities, limitations, and the necessity of human oversight. - **Legal and Technical Reviews:** Consult with experts to ensure compliance and navigate regulatory complexities. By taking these proactive steps, employers can better position themselves for compliance and ethical AI practices. **Conclusion** Texas HB 1709 establishes a comprehensive framework for regulating high-risk AI, emphasizing transparency, fairness, and accountability. If passed, it will reshape how Texas employers utilize AI in hiring, potentially serving as a model for other jurisdictions considering similar regulations. As the bill progresses, employers should evaluate their AI tools and processes to ensure compliance and promote responsible AI practices.