Regular Session
Government Affairs & Regulatory Compliance Analysis
SB2373 establishes strict civil and criminal liability for the use of "artificially generated media" (AI) and "phishing" communications intended to deceive or manipulate consumers for financial gain. While targeting fraud, the broad statutory definition of "phishing"—which includes attempts to "manipulate" a person—creates immediate operational risks for legitimate businesses utilizing AI in marketing, automated collections, and customer service.
Sen. Nathan Johnson·Senate Bill·Regular Session
Local Prosecutors • Texas Attorney General • Texas District Courts
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
The following statutory terms are vague and pose high litigation risk until defined by Texas courts:
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation 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.
This bill's path through the Texas Legislature
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Common questions about SB2373
SB2373 establishes strict civil and criminal liability for the use of "artificially generated media" (AI) and "phishing" communications intended to deceive or manipulate consumers for financial gain. While targeting fraud, the broad statutory definition of "phishing"—which includes attempts to "manipulate" a person—creates immediate operational risks for legitimate businesses utilizing AI in marketing, automated collections, and customer service.
SB2373 was authored by Texas Senator Nathan Johnson during the Regular Session.
SB2373 was signed into law by Governor Greg Abbott on June 20, 2025.
SB2373 is enforced by Local Prosecutors, Texas Attorney General and Texas District Courts.
The regulatory priority for SB2373 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB2373 is estimated as "low". This may vary based on industry and implementation requirements.
SB2373 addresses topics including artificial intelligence, civil remedies & liabilities, crimes, crimes--against persons and crimes--against persons--general.
Key dates for SB2373: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.
SB2373 establishes the following penalties: civil penalty of Actual damages, mental anguish, disgorgement of profits, court costs, and attorney's fees for Knowing or intentional dissemination of artificially generated media or phishing communication for financial exploitation (Private Right of Action); civil penalty of Up to $1,000 per day per dissemination for Knowing or intentional dissemination of artificially generated media or phishing communication for financial exploitation (Action by Attorney General); criminal penalty of Class B Misdemeanor to 1st Degree Felony (based on value of property involved) for Financial abuse using artificially generated media or phishing. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
