HB 274 establishes the "District of Austin" as the designated seat of state government in Texas, formed from the current City of Austin in Travis County. The bill creates a new governing body for this district, with powers equivalent to a home-rule municipality. It adopts the City of Austin's charter and ordinances as the initial laws of the district and transfers all assets, liabilities, contracts, and legal proceedings from the City of Austin to the newly created district, effective January 1, 2026. The act also requires legislative oversight for amendments to the district’s charter or ordinances. This bill is contingent upon voter approval of a constitutional amendment that allows for the creation of the District of Austin as the seat of state government​.