By: Cain H.B. No. 274
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of the District of Austin as the seat
  of state government.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 1, Local Government Code, is amended by
  adding Chapter 2 to read as follows:
  CHAPTER 2.  DISTRICT OF AUSTIN
         Sec. 2.001.  DISTRICT ESTABLISHED. (a) The District of
  Austin is created from the City of Austin in Travis County as the
  seat of state government.
         (b)  In this chapter, "district" means the District of
  Austin.
         (c)  A reference in law to the City of Austin means the
  district.
         Sec. 2.002.  DISTRICT TERRITORY.  (a) The territory of the
  district is initially composed of the territory in the boundaries
  of the City of Austin as those boundaries existed on January 1,
  2025.
         (b)  The boundaries of the district may be modified by the
  governing body of the district in the manner provided by law for a
  home-rule municipality.
         Sec. 2.003.  GOVERNANCE AND POWERS. (a)  The charter of the
  City of Austin and all ordinances adopted by the city and in effect
  as of January 1, 2026, are adopted as the initial laws of the
  district.
         (b)  The district has the powers of a home-rule municipality.
  The district charter has the same force and effect and shall be
  treated the same in all respects as the charter of a home-rule
  municipality.
         Sec. 2.004.  TRANSFERS AND ASSUMPTIONS.  (a) Any action or
  proceeding before the City of Austin as of January 1, 2026, is
  transferred without change in status to the district, and the
  district assumes, without a change in status, the position of the
  city in any action or proceeding to which the city is a party.
         (b)  All money, contracts, leases, and rights of the City of
  Austin held as of January 1, 2026, are transferred to the district.
         (c)  All property, including records, in the custody of the
  City of Austin as of January 1, 2026, becomes the property of the
  district.
         (d)  The district assumes all outstanding debts of the City
  of Austin as of January 1, 2026.
         Sec. 2.005.  LEGISLATIVE OVERSIGHT.  The governing body of
  the district shall submit to the lieutenant governor and the
  speaker of the house of representatives notice of each action taken
  by the governing body that adopts or amends the district's charter
  or an ordinance of the district.
         SECTION 2.  This Act takes effect January 1, 2026, but only
  if the constitutional amendment proposed by the 89th Legislature,
  Regular Session, 2025, allowing the legislature to establish from
  all or part of Travis County the District of Austin to be the seat of
  state government is approved by the voters. If that amendment is
  not approved by the voters, this Act has no effect.