The bill, H.B. No. 294, seeks to enhance the authority of the Texas Attorney General to investigate and take action against local governments for violations of law. It introduces a new Subchapter E to Chapter 402 of the Government Code, which defines "local government" as municipalities or counties and establishes the procedures for the Attorney General's investigations and enforcement actions. The Attorney General is granted the power to investigate alleged violations and, if warranted, bring legal action against the local government. During the pendency of such actions, specific restrictions are placed on the local government, including the withholding of state funds and limitations on tax rates.

Additionally, the bill outlines the burden of proof for local governments defending against these actions, requiring them to demonstrate compliance with the law. It specifies that the First Business Court Division will have exclusive original jurisdiction over these cases, while the Fifteenth Court of Appeals will handle appeals. If the Attorney General prevails, the local government will face penalties, including restrictions on tax rates and state funding for five years. Conversely, if the local government wins, it will receive any withheld funds. The provisions of this bill apply only to violations occurring after its effective date, which is set for 91 days following the end of the legislative session.

Statutes affected:
Introduced: ()