UNLAWFUL DISCRIMINATION

(a) In this section: (1) "Financial institution" has the meaning assigned by Section 201.101, Finance Code. (2) "Insurance entity" means: (A) an entity described by Section 82.002(a), Insurance Code; (B) a fraternal benefit society regulated under Chapter 885, Insurance Code; or (C) the developer of an artificial intelligence system used by an entity described by Paragraph (A) or (B). (3) "Protected class" means a group or class of persons with a characteristic, quality, belief, or status protected from discrimination by state or federal civil rights laws, and includes race, color, national origin, sex, age, religion, or disability. (b) A person may not develop or deploy an artificial intelligence system with the intent to unlawfully discriminate against a protected class in violation of state or federal law. (c) For purposes of this section, a disparate impact is not sufficient by itself to demonstrate an intent to discriminate. (d) This section does not apply to an insurance entity for purposes of providing insurance services if the entity is subject to applicable statutes regulating unfair discrimination, unfair methods of competition, or unfair or deceptive acts or practices related to the business of insurance. (e) A federally insured financial institution is considered to be in compliance with this section if the institution complies with all federal and state banking laws and regulations.