Texas TRAIGA Sandbox — a 36-Month, Licence-Waiver AI Testing Programme Run by the State's IT Agency

The Texas Responsible Artificial Intelligence Governance Act (TRAIGA, HB 149), effective 1 January 2026, creates a regulatory sandbox administered by the Department of Information Resources (DIR) in consultation with the state AI Council.
Approved participants may test an AI system for up to 36 months (extendable by DIR for good cause) without obtaining otherwise applicable state licences. Applicants must describe the system and submit a benefit assessment, a risk-mitigation plan and proof of federal-law compliance. During testing the Attorney General and state agencies cannot take punitive action for the waived requirements.
Safeguards: participants file quarterly performance reports including consumer and stakeholder feedback, and DIR reports annually to the legislature. TRAIGA's core prohibitions (behavioural manipulation, constitutional-rights infringement, intentional unlawful discrimination, child sexual content) stay enforceable, with AG penalties from $10,000 up to $200,000 per violation.
Caution: as of mid-2026 secondary sources report no public confirmation of accepted participants, so effects on safety or innovation are unevaluated.

Read the full analysis: https://www.bakerbotts.com/thought-leadership/publications/2025/july/texas-enacts-responsible-ai-governance-act-what-companies-need-to-know