BILL ANALYSIS Senate Research Center C.S.S.B. 2010 89R23425 DNC-F By: Bettencourt Local Government 4/10/2025 Committee Report (Substituted) 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. (Original Author's/Sponsor's Statement of Intent) C.S.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 federal law, from adopting or enforcing an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program for individuals. (c) Prohibits state and local public funds, if explicitly authorized by federal law, from being used to fund, administer, or support the operation of a guaranteed income program in any capacity. (d) Provides that this section does not apply to a short-term program that is limited in duration and nonrenewable under which an individual is required to seek employment, perform work, or attend meaningful and verifiable career or job trainings as a condition for receiving a payment. 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 C.S.S.B. 2010 89R23425 DNC-F By: Bettencourt Local Government 4/10/2025 Committee Report (Substituted) Senate Research Center C.S.S.B. 2010 89R23425 DNC-F By: Bettencourt Local Government 4/10/2025 Committee Report (Substituted) 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. (Original Author's/Sponsor's Statement of Intent) C.S.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 federal law, from adopting or enforcing an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program for individuals. (c) Prohibits state and local public funds, if explicitly authorized by federal law, from being used to fund, administer, or support the operation of a guaranteed income program in any capacity. (d) Provides that this section does not apply to a short-term program that is limited in duration and nonrenewable under which an individual is required to seek employment, perform work, or attend meaningful and verifiable career or job trainings as a condition for receiving a payment. 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.