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.

SB 2963 gives Texas's Attorney General new authority to investigate and sue local governments (municipalities or counties) that violate state law. If the Attorney General finds a violation after an investigation, they can file a lawsuit to enforce compliance. During such lawsuits, the bill requires withholding state payments to the local government, prohibits exceeding tax rate limits, and blocks grant funding. This law directly affects local governments by creating specific enforcement mechanisms and shifting the burden of proof to them to demonstrate legal compliance.