Texas
Learning Before Legislating in Texas’ AI Advisory Council
From controlling home environments with commands like “Siri, turn on the living room lights” to managing fraud and risk in financial institutions, artificial intelligence is integral to many products and services we use daily.
And the news cycle reminds us frequently that this is just the beginning — that the full promise and peril of AI still lies before us. This is not just technology that will allow us to do the same things in a new way; it has the potential to make us “extra” human — smarter, faster versions of ourselves.
“Every aspect of civilization will be impacted, I believe, by AI, and therefore I wanted to study it thoughtfully and thoroughly before jumping into legislation,” said Senator Tan Parker.
The Artificial Intelligence Advisory Council was established through House Bill 2060 during the 88th legislative session. Composed of founding members and Co-Chairs Senator Parker and Representative Gio Capriglione, along with five other public members, the council intends to increase the study, use, and public awareness of AI. At the heart of any successful endeavor lies collaboration. The Texas AI Council will serve as a nucleus for fostering collaboration among key stakeholders, including government agencies, industry leaders, academic institutions, and research centers.
“There are very real and concerning downsides that have to be managed when it comes to AI and as a result of that, while I am always a free-market, free-enterprise guy trying to minimize regulation, some regulation will be necessary,” said Senator Parker.
That’s why he and the AI advisory council are taking a thoughtful approach. Through public hearings and agency testimony, they will create recommendations for legislation, which they plan to issue by December 2024.
“Communication and knowledge are the cornerstones of progress, and our council will serve as the catalyst, uniting minds from all sectors to produce thoughtful policy concerning AI advancement and technology,” according to Senator Parker.
The group’s first working meeting was at the end of March, when it heard from four state agencies, including the Texas Department of Information Research (DIR) and Texas Department of Transportation (TxDOT).
“I was quite pleased, actually, with the progress and the thoughtfulness of the agencies in terms of how they’re approaching AI,” Senator Parker noted.
For example, TxDOT is using AI to cut down accident response time, process payments, manage traffic, and evaluate aging infrastructure.
The Texas Workforce Commission also testified about their chatbot named Larry being used to screen calls and efficiently connect them with the best department. Parker doesn’t envision this ever becoming an all-bot operation, saying the people of Texas are best served by man and machine working together.
“We must maintain a human touch and a human presence with regard to the workforce commission, as you have people that are struggling for work and trying to find new careers and so forth,” Senator Parker said.
The council will continue hearing from agencies and the public through the summer—information that will help inform the group’s recommendations. Parker is confident in this approach. He strongly believes in the states, particularly Texas, leading the nation on critical issues.
He pointed to Jenna’s Law. Passed in 2009 and amended in 2017, the legislation mandates K through 12 training for educators. After being passed, a study found educators reported suspected abuse almost four times more than before the training. Now, Senator Cornyn is moving that law through the U.S. Congress. Parker hopes to see it become a federal law by year’s end and believes the Lone Star State can again lead the nation on AI legislation.
Texas has long been a beacon of innovation and growth in many areas, and AI creates an unprecedented opportunity to further bolster the state’s reputation as a leader in groundbreaking research and development while increasing the benefits to Texans in their everyday lives. The council aims to support cutting-edge research initiatives and breakthroughs in AI while propelling Texas to the forefront of global innovation and efficiency.
The next AI Advisory Council meeting will be held at the Texas Capitol on May 8th. For more information, including background on council members, overall objectives, and when and where you can participate in public testimony, check out the website.
Voices contributor Nicole Ward is a data journalist for the Dallas Regional Chamber.
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Texas
SCHEELS CEDAR PARK
Texas
Phoenix Merchant Partners and Texas Capital Alternative Asset Management Form Strategic Relationship
Phoenix Merchant Partners, an independent alternative asset manager, and Texas Capital Alternative Asset Management (TCAAM), a wholly owned subsidiary of Texas Capital Bancshares, formed a strategic relationship to provide customized capital solutions and direct lending to the core middle market across a diverse range of industries.
The relationship integrates the corporate and investment banking coverage network of Texas Capital with the structuring, underwriting and multi-cycle portfolio management expertise of Phoenix. Capitalizing on this powerful combination, Phoenix will launch its first vehicle, Spurstone Credit, in Q3/26. Structured as a perpetual-life, non-traded closed-end credit fund, Spurstone will be headquartered in Dallas, Texas.
Spurstone has already attracted interest from a group of anchor institutional investors. The vehicle’s investment mandate will focus primarily on delivering senior secured financing solutions to core middle-market businesses with annual revenues between $100 million and $1 billion that are currently underserved in private credit.
“As the only full-service financial services firm headquartered in Texas, we continuously look for ways to serve the needs of companies and their owners, both in Texas and in our industries of focus across the country. Working with Phoenix expands and accelerates our ability to offer proprietary private credit financing solutions to deserving clients. The Phoenix team shares our disciplined approach to asset structuring, capital preservation and portfolio management, as well as our passion for providing exceptional client service and delivering comprehensive solutions,” Daniel Hoverman, head of corporate and investment banking at Texas Capital and president of TCAAM, said.
The vehicle’s strategy is designed to address a critical structural liquidity gap for non-sponsored, family-owned and founder-led mid-market enterprises requiring flexible, non-dilutive senior capital to fund organic growth, strategic acquisitions and balance sheet optimizations.
“Proprietary origination remains the single biggest differentiator in the private credit landscape,” Art Mbanefo, founder and CEO of Phoenix, said. “Working with TCAAM unlocks unparalleled access to high-quality, founder-owned businesses across Texas and other economic centers like California, New York and Illinois. Together, we are bridging the liquidity gap for exceptional middle-market companies.”
Spurstone will be advised by a newly formed, Phoenix-sponsored registered investment adviser, Ryestone Advisors, which is currently applying for registration with the U.S. Securities and Exchange Commission. TCAAM will be a minority economic investor in Spurstone’s investment adviser.
Texas
Texas man admits embezzling $3.2 million to pay student loans, fuel online gambling, prosecutors say
A Texas man who siphoned off millions from his employer to wipe out tens of thousands in student loan debt and bankroll extensive online gambling has pleaded guilty to federal embezzlement charges, prosecutors said.
Mitchell David Slentz, 34, of Kyle, pleaded guilty in federal court to embezzling more than $3.2 million from Austin Freight Systems, according to the U.S. Attorney’s Office for the Western District of Texas.
Financial oversight role detailed
Prosecutors said Slentz held broad responsibility for Austin Freight Systems’ finances, managing accounting operations, overseeing financial reports and internal controls, and handling vendor payment requests submitted to JPMorgan Chase.
Between October 2023 and March 2025, Slentz executed 147 fraudulent payments, diverting $3,277,937.35 into his personal accounts via interstate wire transfers. He used part of the stolen money to make two student loan payments — $25,000 and $33,887. He also gambled heavily on an online platform, depositing and winning more than $1 million, the U.S. Attorney’s Office said.
Charges and court proceedings
Slentz was charged on May 14, appeared on June 8, and pleaded guilty Monday to wire fraud and engaging in monetary transactions with criminally derived proceeds.
A federal judge will determine Slentz’s sentence based on U.S. Sentencing Guidelines and statutory factors.
Investigation led by the FBI task force
The FBI Austin White Collar Crime Task Force handled the investigation.
CBS News Texas will provide updates as more information becomes available.
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