Bill > HB294

This bill adds a new subchapter to the Texas Government Code that grants the Attorney General expanded authority to investigate and take legal action against local governments (defined as municipalities or counties) for alleged law violations. Under this legislation, the Attorney General may investigate potential violations and file a lawsuit on behalf of the state if an investigation finds evidence of wrongdoing. During such legal proceedings, the local government faces significant penalties, including having state funds withheld, being prohibited from adopting tax rates above the "no-new-revenue tax rate" (a calculated baseline tax rate), and being ineligible for state grant funds. If the Attorney General prevails in the lawsuit, the local government will face additional five-year restrictions on tax rates and grant funding, and the court will require the local government to forfeit the balance of its suspense account to the state's general revenue fund. The bill specifies that the First Business Court Division has exclusive original jurisdiction over such cases, and the Fifteenth Court of Appeals has exclusive appellate jurisdiction. Conversely, if the local government prevails, it will immediately receive the balance of its suspense account. The legislation applies only to law violations occurring on or after its effective date, which is 91 days after the end of the legislative session.

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=891&Bill=HB294