Texas Responsible AI Governance Act (TRAIGA)

Effective Date: January 1, 2026

Overview

The Texas Responsible Artificial Intelligence Governance Act (TRAIGA) was enacted as HB 149 (89th Texas Legislature, Regular Session), signed by Governor Abbott on June 22, 2025, with an effective date of January 1, 2026. TRAIGA is codified principally at Texas Business and Commerce Code Chapter 552.

Important — the enacted version is significantly narrower than the original 2024 draft. Earlier versions of the bill (HB 1709 in 2024 and the early 2025 version) contained a broad private-sector AI risk-governance framework with documentation, impact assessment, consumer-facing disclosure, and human-alternative obligations. Those provisions were stripped out before passage. The enacted TRAIGA focuses on:

1. Specific prohibited AI practices, primarily by Texas government agencies but also reaching certain private-sector uses, including:
   • Social scoring by government
   • AI designed to incite self-harm, violence, or criminal activity
   • AI developed or deployed with the sole intent to infringe constitutional rights
   • Certain unlawful biometric identifier capture
2. Texas government agency AI use restrictions and disclosure requirements
3. Healthcare entity disclosure obligations
4. A regulatory sandbox program and a Texas Artificial Intelligence Council
5. Texas Attorney General exclusive enforcement with a 60-day right to cure

The enacted TRAIGA does NOT impose the broad private-sector AI documentation, risk assessment, governance framework, or consumer rights (right to disclosure, right to human alternative, right to correction of AI decisions) that the early drafts contained. References to those provisions in earlier compliance materials reflect the unenacted draft and should not be relied upon as a description of current Texas law.

Kids on the Yard's AI practices on this page are presented as best practice and voluntary alignment with the principles of responsible AI governance, not as a direct compliance obligation under the enacted TRAIGA. Kids on the Yard does not engage in any of the prohibited AI practices listed in the enacted statute and is not a Texas government agency or covered Texas healthcare entity.

Applicability to Kids on the Yard

Kids on the Yard is operated by Limitless Virtue LLC, a Florida limited liability company headquartered in Miami Shores, Florida. Based on the applicability criteria of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA, HB 149) described above, Kids on the Yard does not currently meet the criteria for direct application of this law, as Kids on the Yard does not engage in any of the artificial intelligence practices specifically prohibited by the enacted version of HB 149 and is not a Texas government agency or covered healthcare entity.

Although Kids on the Yard is not directly subject to the Texas Responsible Artificial Intelligence Governance Act (TRAIGA, HB 149) as a matter of statutory obligation, we have voluntarily adopted the rights, disclosures, and practices described on this page as a matter of best practice and out of respect for the privacy expectations of our families. The rights described above are honored by Kids on the Yard regardless of statutory applicability, through the contact procedures listed below.

If Kids on the Yard's circumstances change such that the Texas Responsible Artificial Intelligence Governance Act (TRAIGA, HB 149) does directly apply, the obligations described here will become legally binding rather than voluntary, and this section will be updated accordingly. Nothing in this voluntary framework limits or waives any rights you may have under the Texas Responsible Artificial Intelligence Governance Act (TRAIGA, HB 149) in the event the law does directly apply to Kids on the Yard.

Scope and Applicability of the Enacted TRAIGA

The enacted TRAIGA primarily applies to:

• Texas government agencies that develop, procure, or deploy AI systems
• Healthcare entities subject to specific TRAIGA disclosure requirements
• Persons doing business in Texas that engage in the specific prohibited practices enumerated in HB 149

The enacted TRAIGA does NOT impose general AI documentation, governance, or risk-assessment obligations on every private-sector business that uses AI. The early drafts (HB 1709) that contained those broader obligations did not pass.

Kids on the Yard is a private out-of-state tutoring company headquartered in Florida. Kids on the Yard is not a Texas government agency, not a Texas healthcare entity, and does not engage in any of the AI practices specifically prohibited by HB 149. As a result, the enacted TRAIGA does not impose direct compliance obligations on Kids on the Yard.

AI Risk Governance Framework

1. Risk Identification

We identify and categorize AI risks including:

2. Documentation Requirements

We maintain documentation for each AI system including:

• Purpose and intended use
• Data inputs and sources
• Decision-making logic (where explainable)
• Known limitations and risks
• Testing and validation results
• Ongoing monitoring procedures

3. Governance Structure

Our AI governance includes:

• Designated AI oversight responsibility
• Regular review of AI systems
• Incident response procedures
• Staff training on AI ethics
• Third-party audit capability

Transparency Obligations

Consumer Disclosure

We inform Texas users when:

• AI is used in service delivery
• AI influences recommendations or decisions
• Automated processing affects their experience

Disclosure Methods

• In-app notifications
• Privacy policy disclosures
• Point-of-interaction notices
• Response to direct inquiries

Available Information

Upon request, we provide:

• General description of AI use
• Types of decisions AI influences
• Human oversight processes
• How to request human review

Voluntary Consumer Practices Modeled on Responsible AI Principles

These are not statutory rights under the enacted TRAIGA. The "Right to Disclosure," "Right to Human Alternative," and "Right to Correction" described below were proposed in earlier drafts of HB 149 but were removed before the bill was enacted. The enacted TRAIGA does not create these rights for private-sector AI uses. Kids on the Yard voluntarily adopts these practices as a matter of responsible AI principles, not as a TRAIGA compliance obligation.

Right to Disclosure

Texas consumers can request information about:

• Whether AI was used in their interactions
• How AI influenced decisions affecting them
• What data was used by AI systems

Right to Human Alternative

Where feasible, Texas consumers may request:

• Human review of AI decisions
• Human-only service option
• Explanation of AI vs. human process

Right to Correction

If AI-influenced decisions contain errors:

• Request review and correction
• Provide additional information
• Receive updated decision

AI System Standards

Development Standards

Our AI systems are developed with:

• Clear purpose and scope definition
• Representative and unbiased training data
• Testing for accuracy and fairness
• Documentation of design decisions

Deployment Standards

Before deployment, AI systems undergo:

• Functionality testing
• Bias and fairness evaluation
• Security assessment
• Privacy impact review

Monitoring Standards

Deployed AI systems are monitored for:

• Performance degradation
• Emerging biases
• User complaints
• Unexpected outcomes

TRAIGA-Prohibited AI Practices (Enacted HB 149)

The enacted TRAIGA specifically prohibits certain AI practices. Kids on the Yard does NOT engage in any of these prohibited practices:

• Social scoring by government (TRAIGA's primary prohibition; KOTY is not a Texas government agency in any case)
• AI designed to incite self-harm, violence, or criminal activity
• AI developed or deployed with the sole intent to infringe a person's constitutional rights
• Unlawful capture of biometric identifiers without consent in violation of Texas Capture or Use of Biometric Identifier Act

In addition, as a matter of voluntary best practice (not TRAIGA-mandated), Kids on the Yard does NOT use AI to:

• Discriminate based on protected characteristics
• Manipulate users through deceptive design
• Make fully automated consequential decisions affecting students without human oversight
• Process student or family data beyond the purposes disclosed in our Privacy Statement

Incident Response

Reporting AI Issues

If you experience problems with our AI systems:

1. Contact [email protected]
2. Describe the issue and impact
3. We investigate within 10 business days
4. Resolution or explanation provided

Internal Response

When AI issues are identified:

• Immediate assessment of scope
• System adjustment or suspension if needed
• Root cause analysis
• Preventive measures implemented
• Documentation updated

Compliance Verification

Internal Audits

• Quarterly review of AI system performance
• Annual comprehensive AI governance audit
• Documentation of findings and remediation

External Assessment

• Third-party audits when appropriate
• Industry best practice benchmarking
• Regulatory guidance monitoring

Contact Information

For AI governance questions or concerns:

AI Governance Team Kids on the Yard Limitless Virtue LLC 9701 NE 2nd Ave, Suite #1069 Miami Shores, Florida 33138 U.S.A

Related Policies

• AI Disclosure Policy
• Privacy Policy
• Texas Data Privacy and Security Act
• Terms of Service

Last Updated: January 1, 2026