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AUSTIN (Nexstar) — Candidates for one of Texas’ seats in the U.S. Senate called for guardrails on artificial intelligence this week, after OpenAI said one of its AI models allegedly gained access to an AI firm’s systems during a security evaluation.
Democratic U.S. Senate candidate James Talarico said Wednesday that the state should balance the needs of its residents while also allowing for innovation in AI.
“I think we have to strike a balance between being a leader in technology and innovation as our state has always been and protecting working people from the harms of these data centers,” he said.
Talarico’s opponent, Ken Paxton, says he also wants to see guardrails on AI.
“I want technological innovation. I want companies to be successful. I want them to come to Texas and provide jobs and create wealth opportunities for the entire state,” Paxton said on the podcast It’s A Numbers Game with Ryan Girdusky. “We have to compete against China; we have to go forward with AI, but we do need to make sure that people are protected from the downsides as best we can do that.”
Utility commission moves to lower electricity costs, prepare for data centers
The Public Utility Commission of Texas filed a memo to Gov. Greg Abbott that details its plans to protect Texans from rising costs due to data centers. It also, per the governor’s request, detailed ongoing projects and needs from the 2027 legislative session.
“There’ll probably be 181 members that will file 181 best practices bills for data centers,” said State Sen. Charles Perry, R-Lubbock. “The PUC has over 200 data center applications, the bulk of them will never see the light of day.”
PUC Chairman Thomas Gleeson said in the letter that he agrees the state should prioritize affordability and reliability of the electric grid. The commission already requires new large load customers like data centers to provide their own power, and is focused on making them pay for interconnection up front.
It also requested clarity over its authority to regulate data centers and for the legislature to add data centers to the Lone Star Infrastructure Protection Act, intended to protect Texas infrastructure from foreign adversaries.
Hinojosa pushes for pause as Abbott shifts stance on data centers
Gina Hinojosa, the Democratic Party candidate for Texas Governor, on Wednesday called on Gov. Greg Abbott to immediately halt new data center development in Texas, arguing he should use his executive authority until lawmakers can pass statewide regulations.
“I am calling on Greg Abbott to issue a moratorium on any new data centers with an emergency executive order,” Hinojosa said.
The former lawmaker said Texas residents are concerned about the rapid growth of data centers, particularly in rural communities. She argued the pause should remain in place until the Legislature can establish protections requiring greater transparency, local input, licensed labor and safeguards for water and electric resources.
Some state leaders have actively promoted Texas as a hub for artificial intelligence investment, which has led some Republicans and Democrats to advocate for increased oversight of the rapidly expanding industry.
Abbott previously supported data center expansion, but has recently shifted his position.
Last month, he called for prohibiting new AI data centers in rural Texas neighborhoods while continuing to support the industry’s growth elsewhere under stricter regulations. Abbott has also proposed eliminating some tax incentives and requiring data centers pay for their own infrastructure, provide their own power generation, reuse water, and reduce electricity costs for Texans.
Texas Medical Association calls for guardrails on prediction market apps
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A new proposal from the Texas Medical Association takes aim at online prediction market platforms and calls on state lawmakers to implement guardrails to protect young users from potentially addictive behavior.
One such safeguard would be for a minimum age of 21 for prediction market apps. Users of these apps can wager money on the potential outcome of future events, including sports and elections. The group also called for restrictions on advertising the apps, such as banning ads near schools and parks, or on social media and gaming platforms.
Prediction market platforms, including Kalshi and Polymarket, are not legally classified the same way as traditional gambling.
However, medical leaders argue they can have similar psychological effects, especially for adolescents and young adults.
“It is not considered gambling [by legal definition], although it has all of the psychological trappings of gambling,” said Dr. Lindy McGee, former chair of TMA’s committee on child and adolescent health. “The adolescent brain is primed to take risks, making them susceptible to anything addictive like nicotine or alcohol – or gambling. The younger you start, the more likely you are to become addicted to it.”
KXAN revisits ‘TxTag Troubles’ toll bill investigation
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Auto-payment issues, double billing, incorrect statements and customer service runaround — those were just some of the complaints KXAN received in 2023, by the hundreds, from users of Texas Department of Transportation toll roads and TxTag.
KXAN Investigates uncovered problems with Texas’ toll system for nearly a decade, during which time the state agency repeatedly vowed to improve and fix those problems.
During our reporting, the Texas Department of Transportation reached out to viewers who contacted KXAN about their issues, and state lawmakers renewed efforts towards fixing future TxTag problems.
After our investigations, TxTag billing and operations moved to a regional transit authority to streamline the process for customers.
Midland ISD files lawsuit in challenge to Texas school funding system
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A West Texas school district is challenging Texas’ school finance system with a lawsuit that argues the state has too much control over local property taxes.
The Midland ISD Board of Trustees on Tuesday authorized the lawsuit against the State of Texas and Texas Education Commissioner Mike Morath.
KXAN reached out Thursday afternoon to Morath’s office for its response to the lawsuit, but has not yet received a reply.
The lawsuit asks a Travis County court to determine if Texas school funding system violates the state constitution by shifting control over local school property taxes to the state. The district claims that local school boards no longer have discretion over maintenance and operations tax rates, or over how much tax revenue they can keep.
Under Texas’ recapture system, districts with high property values must send a portion of locally collected property taxes back to the state. The Texas Education Agency, led by Morath, redistributes the “recaptured” money to districts with lower property values to help equalize school funding across Texas.
KXAN digital reporter Cora Neas compiled and edited this week’s edition of State of Texas.
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