Do you sue the state of Texas in district court county which reside?

It depends on the specific circumstances of your case and the nature of the claim you are making against the state of Texas. As a general rule, federal district courts have exclusive jurisdiction over cases involving federal questions, bankruptcy proceedings, and diversity of citizenship cases where the amount in controversy exceeds $75,000. For matters that are not federal in nature, state courts generally have concurrent jurisdiction with federal courts, and the appropriate venue may depend on the specific laws of the state of Texas and the nature of your claim. It is always advisable to consult with a qualified attorney who is licensed in the state of Texas to determine the appropriate court and venue for your case and to ensure that your rights and interests are protected.