HB 274

relating to the establishment of the District of Austin as the seat
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:
Sec. 2.001.  DISTRICT ESTABLISHED.  (a)  The District of
Austin is created from the City of Austin in Travis County as the
(b)  In this chapter, "district" means the District of
(c)  A reference in law to the City of Austin means the
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,
(b)  The boundaries of the district may be modified by the
governing body of the district in the manner provided by law for a
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
(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
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
(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.