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      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.