DIR must run an AI regulatory sandbox letting state agencies test systems outside normal rules
The Department of Information Resources is required to establish a program letting eligible public entities contract with registered vendors to test AI systems before deployment. That testing is expressly without full compliance with otherwise applicable regulations. Vendors apply, and participants file quarterly reports. The department must report to the Legislature by November 30th of each even numbered year. That makes November 30th, 2026 the first reporting date.
How to take part
The application process runs to vendors registered with DIR rather than to the general public. The statute provides no public comment step. The public visibility point is the report the department owes the Legislature by November 30th, 2026. A reader can ask DIR for the vendor application process and for any quarterly reports already filed.
Where
Statewide. This decision applies across Texas rather than to a named county.
Dates
| Date | What | Note |
|---|---|---|
| 2025-09-01 | effective | SB 1964 took effect |
| 2026-11-30 | statutory deadline | Department report to the Legislature due, per Sec. 2054.706(g) |
The evidence
Every fact above rests on one of these. The words are the source's own.
"Program" means the program established by this section that is designed to allow temporary testing of an artificial intelligence system in a controlled, limited manner without requiring full compliance with otherwise applicable regulations.Texas Government Code Sec. 2054.706(a)(2), Artificial Intelligence System Sandbox Program Primary source, official
(b) The department shall establish and administer a program to support eligible entities in contracting with vendors to engage in research, development, training, testing, and other pre-deployment activities related to artificial intelligence systemsTexas Government Code Sec. 2054.706(b) Primary source, official
(2) a risk assessment of the system that addresses potential impacts on the public; and (3) a plan for mitigating any adverse consequences discovered during the system's testing phase.Texas Government Code Sec. 2054.706(c) Primary source, official
(g) Not later than November 30 of each even-numbered year, the department shall produce an annual report and submit the report to the legislature summarizing:Texas Government Code Sec. 2054.706(g) Primary source, official
Added by Acts 2025, 89th Leg., R.S., Ch. 1148 (S.B. 1964 ), Sec. 5, eff. September 1, 2025.Texas Government Code Chapter 2054 Subchapter S, source note Primary source, official