BILL ANALYSIS Senate Research Center S.B. 2010 89R3393 AMF-F By: Bettencourt Local Government 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Article III, Section 52 of the Texas Constitution prohibits the legislature from making any grant or authorizing any county, city, town, or other political corporation or subdivision of the State to make a grant of public money or thing of value to any individual, association, or corporation. Some Texas counties and cities have used federal pandemic aid assistance dollars to attempt to establish and operate a guaranteed income program, whereby cash or debit payments are distributed to individuals for unrestricted uses. S.B. 2010 seeks to ensure the state's cities and counties comply with the state's constitutional gift prohibitions by prohibiting a political subdivision from adopting or enforcing an ordinance, order, regulation, or other measure that provides for the operation of a guaranteed income program. As proposed, S.B. 2010 amends current law relating to the authority of a political subdivision to establish and operate a guaranteed income program. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 140, Local Government Code, by adding Section 140.014, as follows: Sec. 140.014. PROHIBITION ON GUARANTEED INCOME PROGRAM. (a) Defines "guaranteed income program." (b) Prohibits a political subdivision, unless explicitly authorized by law, from adopting or enforcing an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program. SECTION 2. Authorizes an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program, as defined by Section 140.014, Local Government Code, as added by this Act, in effect before the effective date of this Act, notwithstanding that section, to be enforced until the earlier of January 1, 2026, or the expiration of the ordinance, order, regulation, or other measure. SECTION 3. Effective date: upon passage or September 1, 2025. BILL ANALYSIS Senate Research Center S.B. 2010 89R3393 AMF-F By: Bettencourt Local Government 4/4/2025 As Filed Senate Research Center S.B. 2010 89R3393 AMF-F By: Bettencourt Local Government 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Article III, Section 52 of the Texas Constitution prohibits the legislature from making any grant or authorizing any county, city, town, or other political corporation or subdivision of the State to make a grant of public money or thing of value to any individual, association, or corporation. Some Texas counties and cities have used federal pandemic aid assistance dollars to attempt to establish and operate a guaranteed income program, whereby cash or debit payments are distributed to individuals for unrestricted uses. S.B. 2010 seeks to ensure the state's cities and counties comply with the state's constitutional gift prohibitions by prohibiting a political subdivision from adopting or enforcing an ordinance, order, regulation, or other measure that provides for the operation of a guaranteed income program. As proposed, S.B. 2010 amends current law relating to the authority of a political subdivision to establish and operate a guaranteed income program. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 140, Local Government Code, by adding Section 140.014, as follows: Sec. 140.014. PROHIBITION ON GUARANTEED INCOME PROGRAM. (a) Defines "guaranteed income program." (b) Prohibits a political subdivision, unless explicitly authorized by law, from adopting or enforcing an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program. SECTION 2. Authorizes an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program, as defined by Section 140.014, Local Government Code, as added by this Act, in effect before the effective date of this Act, notwithstanding that section, to be enforced until the earlier of January 1, 2026, or the expiration of the ordinance, order, regulation, or other measure. SECTION 3. Effective date: upon passage or September 1, 2025.