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 161 authorizes the Texas Attorney General to investigate and sue local governments (municipalities or counties) for violating state law. If the AG finds a violation, they may file a lawsuit, and during the case, the comptroller must withhold state funds, the local government cannot raise property tax rates above their "no-new-revenue" limit, and grant applications are denied. If the AG wins, the local government faces a five-year ban on exceeding tax rate limits or receiving state grants, plus potential penalties. The bill creates specific court procedures, assigning exclusive jurisdiction to the First Business Court Division and Fifteenth Court of Appeals.