Budget & Taxes (Audits & Accountability)

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.

HB 132 repeals the Texas Advanced Nuclear Energy Office, established by HB 14 in the 2025 legislative session. It directs the comptroller to transfer all funds previously allocated to this office to the Texas Education Agency. The funds will be used to reduce the state's compression percentage under the education funding formula, which lowers the amount the state must contribute to public school budgets. This change directly affects state budget allocations for public education by redirecting previously designated funds. The bill does not create new policy but modifies existing financial mechanisms.