Relating to the authority of the attorney general to investigate violations of law by certain local governments and to take action against those local governments to enforce the law.

HB 294 gives Texas' attorney general the power to investigate and sue local governments (municipalities or counties) for violating state law. If the attorney general determines a violation, they can file a lawsuit to enforce compliance. During such cases, the comptroller must withhold state payments due to the local government, the government cannot raise property tax rates above its "no-new-revenue" limit, and it cannot receive state grant funds. Local governments must prove they followed the law by a preponderance of evidence, and cases are handled by specialized courts with strict deadlines.