Texas Takes Steps to Regulate AI and Biometric Data with House Bill 3755
On March 4, 2025, Texas Representative Giovanni Capriglione introduced House Bill 3755 (HB 3755), aiming to set a regulatory framework for the use of biometric identifiers within AI applications. This initiative marks a significant move towards balancing the rapid advancements in technology with the need to safeguard personal privacy and prevent the misuse of sensitive data.
What Is HB 3755 All About?
The proposed legislation seeks to amend the Texas Business & Commerce Code to clarify how biometric identifiers can be utilized in AI contexts. But what exactly does “AI” mean in this framework? The bill defines AI as systems that leverage machine learning to process data and train statistical models, enabling computers to handle tasks usually associated with human intelligence. This includes various applications like computer vision, speech recognition, and even content generation.
Key Provisions of the Bill
A notable feature of HB 3755 is its clear explanation regarding existing regulations on biometric data. Currently, laws governing the capture and usage of biometric identifiers do not cover AI-related activities if they aren’t aimed at uniquely identifying individuals. However, should a biometric identifier collected for AI purposes be used for any commercial activities beyond that scope, the organization must comply with existing rules concerning the possession and destruction of such data, along with its associated penalties.
A Step Toward Ethical AI Governance
Capriglione’s introduction of HB 3755 aligns with a wider legislative movement in Texas to tackle the ethical dilemmas and regulatory challenges associated with AI technology. In December 2024, he also proposed the Texas Responsible Artificial Intelligence Governance Act (TRAIGA). This act aimed to create a comprehensive governance framework for the ethical and transparent deployment of AI systems, particularly concerning high-risk sectors like healthcare and finance. TRAIGA sought to ban AI systems that pose an "unacceptable risk," such as those engaging in unauthorized biometric capturing or social scoring.
Legislative efforts like these showcase Texas lawmakers’ commitment to fostering innovation while ensuring the privacy rights of its citizens are respected. This carefully balanced approach mirrors the political trends seen during the Trump administration regarding the need for AI regulations.
Concerns About Innovation and Compliance
Despite the legislative intentions, organizations such as the Reason Foundation have voiced concerns regarding the potential drawbacks of HB 3755. They argue that the bill could stifle growth and investment by enforcing a regulatory framework that might hinder innovation. The organization highlights that any AI tools engaged in critical sectors like finance or healthcare could be burdened with extensive compliance requirements, deterring startups and medium-sized companies from adopting AI solutions.
They caution that TRAIGA’s broad scope may lead tech firms to reconsider their operations in Texas, shifting to states with more lenient regulations, ultimately reducing competitiveness in the AI landscape.
Implications for Industries Leveraging AI
The ramifications of HB 3755 extend across various industries reliant on biometric data for AI applications. By outlining the acceptable use of biometric information, this bill aims to protect individuals’ privacy while fostering public trust in AI technologies—an essential factor for their broader acceptance and utilization.
Global Policy Watch has noted that should HB 3755 pass, Texas would become the second state to adopt industry-agnostic, risk-based AI legislation, stepping forth as a leader in responsible AI governance.
As of now, HB 3755 is awaiting further legislative action. Stakeholders—including businesses, advocacy groups, and the general public—are encouraged to engage in the legislative process, ensuring that the bill truly addresses the complexities of using biometric data in AI applications.
In the absence of cohesive federal AI regulations, states like Texas are paving the way with their own laws, which could lead to a patchwork of regulations across the country.
Conclusion
As the conversation around AI and biometric data evolves, Texas is making significant strides toward creating a robust regulatory environment. By balancing the potential of technological innovation with the imperative of protecting individual privacy, the Lone Star State is positioning itself as a key player in the conversation on AI governance.
The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.
