87R6666 SMT-D By: Schofield H.B. No. 2289 A BILL TO BE ENTITLED AN ACT relating to the establishment of the State District 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. STATE DISTRICT Sec. 2.001. DISTRICT ESTABLISHED. (a) The State District is created from the City of Austin in Travis County as the seat of state government. (b) In this chapter, "district" means the State District. Sec. 2.002. DISTRICT TERRITORY. (a) The territory of the district is initially composed of the territory in the following boundaries: (1) on the north, the southern edge of Martin Luther King, Jr., Boulevard; (2) on the east, the western edge of Trinity Street; (3) on the south, the northern edge of 10th Street; and (4) on the west, the eastern edge of Lavaca Street. (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. (c) A charter provision or ordinance of the City of Austin remains in effect in the State District until a charter is adopted under this chapter. On the adoption of the charter, the area in the district is removed from the City of Austin. Sec. 2.003. POWERS AND GOVERNANCE. (a) 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. (b) The district is governed by a board of five directors at large appointed by the governor with the advice and consent of the senate. (c) To qualify to serve as a director, a person must be a resident of this state. (d) Directors serve staggered two-year terms. (e) If a vacancy occurs on the board, the governor shall appoint a director with the advice and consent of the senate for the remainder of the unexpired term. (f) A board member is not entitled to compensation but is entitled to reimbursement for actual and necessary expenses. (g) The governor shall designate from the members of the board a presiding officer. The board shall designate from the members of the board other officers the board considers necessary. Sec. 2.004. ADOPTION OF CHARTER. Not later than the 90th day after the date the initial board is appointed, the board shall adopt a charter to govern the operations of the district. Sec. 2.005. POWERS. On the adoption of a charter under this chapter, the district has the powers of a home-rule municipality. The 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. 2.006. TRANSFERS AND ASSUMPTIONS. (a) On the adoption of a charter under this chapter, all money, real property, contracts, leases, and rights of the City of Austin existing on the date of the charter adoption that relate to the territory included in the district are transferred to the district. (b) On the adoption of a charter under this chapter, the district assumes a pro rata share of the indebtedness of the City of Austin existing on the date of the charter adoption. The district annually shall pay to the city an amount to be applied exclusively to the payment of the district's share of that indebtedness until the district's share is paid in full. Sec. 2.007. STATE OFFICES AND FUNCTIONS. A state office required to be located in or a state function required to occur in the City of Austin by other law may be located or occur in the district. SECTION 2. Section 411.066, Government Code, is amended to read as follows: Sec. 411.066. JURISDICTION. The [municipal court of a municipality and the] justice courts of a county in which an offense under Section 411.065 was committed have [concurrent] original jurisdiction over such an offense. SECTION 3. Section 411.062(f), Government Code, is repealed. SECTION 4. This Act takes effect January 1, 2022, but only if the constitutional amendment proposed by the 87th Legislature, Regular Session, 2021, allowing the legislature to establish from part of the City of Austin the State District 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.