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Artificial intelligence (AI) regulation has quickly become one of the most contested policy debates in state legislatures across the United States. As lawmakers attempt to address concerns about privacy, data use, and technological disruption, hundreds of proposals regulating artificial intelligence systems have been introduced nationwide. Texas joined that debate during the 89th Legislative Session (2025) with House Bill 149 (HB 149), known as the Texas Responsible Artificial Intelligence Governance Act (TRIAGA), authored by State Rep. Giovanni Capriglione (R-Southlake).
Texas Policy Research (TPR) analyzed HB 149 during the legislative process and ultimately recommended that lawmakers vote against the proposal unless substantial amendments were adopted. The organization raised concerns that the bill could expand the regulatory state, impose significant taxpayer costs, and create barriers for innovation in one of Texas’ fastest growing industries.
Those concerns have now been echoed by a newly released national policy report examining artificial intelligence regulation across the country. The report, titled The AI Terrible Ten: The Worst State AI Policies and Four Better Models to Balance Safety and Innovation, identifies several state policies that illustrate the risks of overregulating emerging technologies. The report specifically references TRIAGA as part of the broader trend toward expansive state-level AI regulation.
The report offers an opportunity to revisit the policy debate surrounding HB 149 and examine what Texas lawmakers can learn as AI legislation continues to evolve.
The Rapid Expansion of State AI Regulation
Artificial intelligence policy has quickly moved from a niche technology issue to a central focus of state policymaking. Legislators across the country have introduced hundreds of bills attempting to regulate the development, deployment, and use of AI systems.
According to the national report examining state AI laws, more than 600 AI bills were introduced in state legislatures in 2024. The number of proposals doubled in 2025, with more than 1,200 bills filed nationwide. Another 1,200 AI-related proposals were already pending early in 2026.
While many of these bills never become law, the surge reflects growing political pressure to regulate emerging technologies. Issues such as facial recognition, algorithmic bias, automated decision-making, and AI-generated media have sparked concerns among policymakers and advocacy groups.
The report warns, however, that the growing wave of legislation risks creating a fragmented regulatory environment. When different states adopt conflicting definitions, compliance standards, and enforcement mechanisms, businesses that develop artificial intelligence systems may face dramatically different legal obligations depending on where they operate.
This patchwork of regulatory regimes can increase compliance costs, create legal uncertainty, and discourage investment in innovative technologies.
HB 149 and the Texas AI Governance Framework
House Bill 149 represented one of the most ambitious attempts to regulate AI at the state level during the 89th Texas Legislative Session (2025). The bill proposed a comprehensive framework governing how AI systems could be developed and deployed in Texas.
Among its most significant provisions were new legal rules governing the use of biometric data in artificial intelligence applications. The bill clarified that publicly available images or recordings could not automatically be treated as consent for the commercial use of biometric identifiers such as facial recognition or voice data.
The legislation also created the Texas Artificial Intelligence Council, a state oversight body tasked with advising policymakers on AI-related issues and monitoring compliance with the bill’s regulatory framework. In addition, the proposal expanded enforcement authority for the Texas Attorney General to investigate potential misuse of artificial intelligence systems and pursue civil penalties when violations occurred.
Supporters argued that these provisions would help protect consumers and prevent harmful uses of emerging technologies. They emphasized that artificial intelligence systems increasingly influence areas such as employment, financial services, healthcare, and online speech. Critics, however, warned that the legislation risked creating a sweeping regulatory structure before policymakers fully understood how artificial intelligence technologies would develop in the coming years.
Texas Policy Research (TPR) ultimately concluded that the bill’s regulatory architecture could expand government authority while imposing high costs on taxpayers and private sector innovators.
National AI Policy Experts Highlight the Risks of Expansive State Regulation
The national report examining state AI policies places HB 149 within a broader pattern of regulatory expansion occurring across the country.
In discussing emerging AI governance frameworks, the report notes that Texas passed legislation known as the Texas Responsible Artificial Intelligence Governance Act. The authors observe that the original version of the bill closely resembled broader regulatory proposals seen in other states before lawmakers ultimately revised the measure during the legislative process.
Even with those revisions, the report argues that state-level regulatory frameworks like HB 149 illustrate the growing tendency of legislatures to build complex compliance systems around emerging technologies.
The authors warn that these frameworks often introduce new reporting obligations, regulatory oversight bodies, and enforcement mechanisms that can slow innovation and create legal uncertainty for businesses developing artificial intelligence tools.
The report identifies several categories of state policies that it considers particularly problematic. These include laws regulating algorithmic pricing, taxes on automation technologies, and broad regulatory frameworks governing artificial intelligence development. While the report highlights examples from states such as Colorado, California, and New York, it also points to Texas’ legislation as part of the broader regulatory trend.
Innovation and Free Enterprise Concerns in AI Regulation
One of the central concerns raised during the debate over HB 149 involved its potential impact on innovation and economic competition.
Artificial intelligence development is driven by experimentation, open collaboration, and rapid iteration. Many of the most important breakthroughs in artificial intelligence have come from small research teams, startups, and open source developers rather than large corporations.
When governments introduce complex regulatory frameworks governing how artificial intelligence systems may be developed or deployed, those compliance requirements can disproportionately affect smaller firms.
The national report highlights this challenge by noting that regulatory paperwork and compliance obligations often advantage large corporations with extensive legal teams while creating barriers for smaller innovators attempting to enter the market.
This dynamic can unintentionally consolidate market power among the largest technology companies while reducing opportunities for new competitors.
Texas has long cultivated a reputation as a pro-innovation environment that attracts entrepreneurs and technology investment. Critics of HB 149 argued that the bill risked undermining that reputation by introducing regulatory uncertainty into one of the most dynamic sectors of the state’s economy.
The Fiscal Cost of AI Oversight in Texas
Beyond its regulatory implications, HB 149 also carried high fiscal costs for Texas taxpayers.
According to the Legislative Budget Board (LBB), implementing the bill was projected to cost more than $25 million during the 2026 and 2027 biennium. The proposal also included recurring annual costs exceeding $10 million in subsequent years.
Much of this cost stemmed from the creation of the Texas Artificial Intelligence Council and the expansion of enforcement responsibilities within existing state agencies. Implementing the regulatory framework would require the hiring of approximately twenty new state employees, along with the development of new technology systems for regulatory oversight and investigations.
While the legislation authorized the Attorney General to collect civil penalties for violations, the fiscal analysis noted that these revenues were uncertain and unlikely to offset the overall cost of the new regulatory framework.
For policymakers concerned about limited government and fiscal responsibility, the creation of a permanent regulatory infrastructure for AI raised serious questions about long-term taxpayer obligations.
AI Regulation and the Expansion of the Administrative State
The debate surrounding HB 149 also reflects a broader question about the appropriate role of government in regulating emerging technologies.
Artificial intelligence is still an evolving field, and many of its future applications remain unknown. Critics of sweeping regulatory frameworks argue that governments should proceed cautiously when attempting to regulate technologies that are developing rapidly.
The national report emphasizes that artificial intelligence innovation does not occur in a legal vacuum. Existing laws governing consumer protection, civil rights, fraud, and privacy already apply to many of the potential harms associated with AI systems.
From this perspective, creating entirely new regulatory structures may duplicate existing legal protections while expanding the administrative state.
This concern was central to the TPR recommendation that lawmakers vote against HB 149 unless significant amendments were adopted to narrow its scope and limit the expansion of government authority.
What Texas Lawmakers Should Learn From the National AI Policy Debate
The emergence of AI legislation in Texas reflects the growing importance of AI technologies in modern society. Policymakers understandably want to ensure that these tools are used responsibly and that individuals are protected from potential abuses.
At the same time, the national debate over AI regulation highlights the risks of acting too quickly or too broadly when crafting policy for rapidly evolving technologies.
The inclusion of Texas’ HB 149 in a national analysis of problematic AI policy frameworks illustrates how easily well-intentioned legislation can contribute to a complex and fragmented regulatory environment.
As AI continues to reshape industries ranging from healthcare and finance to transportation and education, Texas lawmakers will likely revisit these issues in future legislative sessions. The challenge will be ensuring that Texas remains both a leader in technological innovation and a protector of individual liberty. Achieving that balance will require policymakers to approach artificial intelligence legislation with humility, restraint, and a clear understanding of the long term consequences of regulatory expansion.
For TPR, the experience of HB 149 underscores a fundamental lesson in technology policy. Emerging technologies may present new challenges, but the principles of sound governance remain the same. Regulation should be limited, transparent, and narrowly tailored to address clearly defined harms without stifling the innovation that drives economic growth and opportunity in Texas.
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