CREATION OF COUNCIL.

(a) The Texas Artificial Intelligence Council is created to:

(1) ensure artificial intelligence systems in this state are ethical and developed in the public's best interest;

(2) ensure artificial intelligence systems in this state do not harm public safety or undermine individual freedoms by finding issues and making recommendations to the legislature regarding the Penal Code and Chapter 82, Civil Practice and Remedies Code;

(3) identify existing laws and regulations that impede innovation in the development of artificial intelligence systems and recommend appropriate reforms;

(4) analyze opportunities to improve the efficiency and effectiveness of state government operations through the use of artificial intelligence systems;

(5) make recommendations to applicable state agencies regarding the use of artificial intelligence systems to improve the agencies' efficiency and effectiveness;

(6) evaluate potential instances of regulatory capture, including undue influence by technology companies or disproportionate burdens on smaller innovators caused by the use of artificial intelligence systems;

(7) evaluate the influence of technology companies on other companies and determine the existence or use of tools or processes designed to censor competitors or users through the use of artificial intelligence systems;

(8) offer guidance and recommendations to the legislature on the ethical and legal use of artificial intelligence systems;

(9) conduct and publish the results of a study on the current regulatory environment for artificial intelligence systems;

(10) receive reports from the Department of Information Resources regarding the regulatory sandbox program under Chapter 553; and

(11) make recommendations for improvements to the regulatory sandbox program under Chapter 553.

(b) The council is administratively attached to the Department of Information Resources, and the department shall provide administrative support to the council as provided by this section.

(c) The Department of Information Resources and the council shall enter into a memorandum of understanding detailing:

(1) the administrative support the council requires from the department to fulfill the council's purposes;

(2) the reimbursement of administrative expenses to the department; and

(3) any other provisions necessary to ensure the efficient operation of the council.