Relating to artificial intelligence training programs for certain employees and officials of state agencies and local governments.
ModeratePlan for compliance
Low Cost
Effective:2025-06-20
Enforcing Agencies
Department of Information Resources (DIR) • Criminal Justice Division (Grant Compliance) • Legislative Budget Board • Governor's Office
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date:June 20, 2025 (Law is currently in effect).
Compliance Deadline:Contingent on DIR Action. While the obligation is immediate, operational compliance cannot begin until the Department of Information Resources (DIR) publishes the list of certified training programs. Expect enforcement to begin Q1 2026.
Agency Rulemaking: The DIR is required to adopt rules and certify at least five training programs "as soon as practicable." We are currently in a Regulatory Gray Zone: the mandate exists, but the mechanism to fulfill it does not.
Immediate Action Plan
Audit Personnel: Generate a list of all staff/contractors deployed to government clients who meet the 25% computer usage threshold.
Monitor DIR: Assign a compliance officer to monitor the DIR website weekly for the release of certified AI training programs.
Update Grant Workflows: If you assist clients with grant writing or are a sub-recipient of state funds, ensure the new AI certification attachment is added to your application templates immediately.
Vendor Opportunity: If you are an EdTech or training vendor, prepare curriculum now to apply for DIR certification as one of the five required state providers.
Operational Changes Required
Contracts
Government Contractors/MSPs: Review Master Services Agreements (MSAs) with state and local agencies. Expect amendments requiring you to warrant that assigned staff have completed DIR-certified AI training.
Indemnification Clauses: Local governments face a "clawback" of Chapter 772 grant funds if they fail compliance audits. Do not accept broad indemnification clauses that would make your firm liable for a municipality's loss of grant funding due to training lapses.
Hiring/Training
Staff Audits: You must immediately identify which employees or deployed contractors utilize a computer for at least 25% of their required duties. These individuals are legally required to undergo training.
Onboarding: Update onboarding protocols to include AI training alongside existing cybersecurity modules. This is now an annual requirement, not a one-time event.
Reporting & Record-Keeping
Grant Applications: Any application for Criminal Justice Division (Chapter 772) grants now requires a written certification of AI training compliance. Applications submitted without this are statutorily incomplete.
Verification Forms: The DIR will release a specific form for reporting completion percentages. Integrate this form into your document retention policies immediately upon release.
Fees & Costs
Direct Costs: Low. Training programs will likely be low-cost or provided by the state.
Indirect Costs: Administrative burden of tracking compliance and potential legal costs associated with grant clawback liability.
Strategic Ambiguities & Considerations
"Literacy" Definition: The law requires training on "AI literacy," but fails to define the technical depth. Watch for DIR Rulemaking to see if this requires simple awareness or technical proficiency.
Contractor Applicability: The bill specifies "employees," but Texas agencies routinely interpret "employee" to include contractors with access to state systems (mirroring cybersecurity statutes). Assume contractors are included until DIR issues guidance to the contrary.
The 25% Threshold: The requirement applies to staff using computers for "at least 25% of duties." This is subjective and difficult to audit. Best Practice: If an employee uses a computer daily, train them. Do not split hairs on percentages; the risk of audit failure outweighs the cost of training.
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
Artificial Intelligence systems have grown in size and usage over the past few years, with many industries adopting this technology to help with professional workflow. The Texas Tribune has reported that more than a third of state agencies are currently using AI, including in roles of customer service, translation, and cybersecurity. However, many people are unaware of how to leverage AI technology in ways that are accurate and useful to their needs, leading to the risk of this technology being used incorrectly.
H.B. 3512 seeks to address these issues by requiring applicable state employees to take AI literacy training in a manner similar to the current cybersecurity training required for state employees. The bill requires the Department of Information Resources to certify and periodically update the AI training and applicable employees to annually complete the training.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Department of Information Resources in SECTION 9 of this bill.
ANALYSIS
H.B. 3512 amends the Government Code to require the Department of Information Resources (DIR), in consultation with interested persons and the cybersecurity council established by the state cybersecurity coordinator, to do the following annually:
·certify at least five artificial intelligence (AI) training programs for state and local government employees;
·update standards for maintenance of certification by the AI training programs; and
·ensure that the AI training programs are equal in length to the cybersecurity training programs certified under current law.
The bill requires an AI training program, in order to be certified by DIR, to focus on forming an understanding of how AI technology may be used in relation to a state employee's responsibilities and duties and to teach best practices on literacy in deploying and operating the AI technologies. The bill authorizes DIR to identify and certify training programs provided by state agencies and local governments that satisfy those training requirements and to contract with an independent third party to certify an AI training program. The bill requires DIR to annually publish the list of certified AI training programs on the DIR website and to adopt the rules necessary to develop and implement the AI training programs as soon as practicable after the bill's effective date.
H.B. 3512 includes AI training and training programs in the scope of the following provisions currently applicable with respect to cybersecurity training and training programs:
·requirements relating to a local government's duty to include a written certification of its compliance with such a program with a grant application submitted under provisions relating to governmental planning;
·requirements for certain state agency and local government employees and elected or appointed officers of the agency or with access to a local government computer system or database to annually complete such a training program;
·requirements relating to the duty of the governing body of such a local government and the executive head of such a state agency to verify and report on completion of such a training program by applicable employees; and
·the requirement for the strategic plan of a state agency to include a written certification of the agency's compliance with the training unless modified by the Legislative Budget Board and the governor's office.
H.B. 3512 amends the Education Code to include AI training in the scope of the provision requiring only the cybersecurity coordinator of a school district to complete cybersecurity training on an annual basis and any other district employee required to complete the training to do so as determined by the district, in consultation with the district's cybersecurity coordinator.
Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3512 by Capriglione (Relating to artificial intelligence training programs for certain employees and officials of state agencies and local governments.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would create a state-certified artificial intelligence (AI) training program and establish training requirements for local governments and certain school district and state employees. It is assumed that any related costs could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
242 State Commission on Judicial Conduct, 304 Comptroller of Public Accounts, 313 Department of Information Resources, 320 Texas Workforce Commission, 352 Bond Review Board, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 529 Health and Human Services Commission, 582 Commission on Environmental Quality, 601 Department of Transportation, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
LBB Staff: b > td >
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Effective June 20, 2025, HB3512 mandates annual Artificial Intelligence (AI) training for state and local government employees who use computers for at least 25% of their duties. While the statutory mandate targets public entities, government contractors and grant recipients face immediate downstream compliance risks, including contract termination and mandatory repayment of state grant funds for non-compliance. Implementation Timeline Effective Date: June 20, 2025 (Law is currently in effect).
Q
Who authored HB3512?
HB3512 was authored by Texas Representative Giovanni Capriglione during the Regular Session.
Q
When was HB3512 signed into law?
HB3512 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB3512?
HB3512 is enforced by Department of Information Resources (DIR), Criminal Justice Division (Grant Compliance), Legislative Budget Board and Governor's Office.
Q
How urgent is compliance with HB3512?
The compliance urgency for HB3512 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB3512?
The cost impact of HB3512 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB3512 address?
HB3512 addresses topics including artificial intelligence, city government, city government--general, county government and county government--general.
Legislative data provided by LegiScanLast updated: November 25, 2025
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