BILL ANALYSIS Senate Research Center S.B. 2778 89R4154 MCF-D By: Hinojosa, Adam Local Government 4/22/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2778 aims to modernize the outdated $2,000 spending cap for emergency services districts (ESDs) in Texas, which has not been updated since 1989. Due to inflation and rising costs, routine expenses like fuel, repairs, and equipment now often exceed that amount, slowing emergency response times by requiring board approval for basic purchases. The bill would raise the cap to $50,000, allowing each ESD board to set their own limit up to that amount through public meetings. As proposed, S.B. 2778 amends current law relating to the amount of an expenditure that may be paid by an emergency services district employee without board approval. 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 Section 775.073(b), Health and Safety Code, to prohibit an expenditure of more than $50,000, rather than $2,000, from being paid unless the expenditure is presented to the board of emergency services commissioners (board) and the board approves the expenditure. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 2025. BILL ANALYSIS Senate Research Center S.B. 2778 89R4154 MCF-D By: Hinojosa, Adam Local Government 4/22/2025 As Filed Senate Research Center S.B. 2778 89R4154 MCF-D By: Hinojosa, Adam Local Government 4/22/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2778 aims to modernize the outdated $2,000 spending cap for emergency services districts (ESDs) in Texas, which has not been updated since 1989. Due to inflation and rising costs, routine expenses like fuel, repairs, and equipment now often exceed that amount, slowing emergency response times by requiring board approval for basic purchases. The bill would raise the cap to $50,000, allowing each ESD board to set their own limit up to that amount through public meetings. As proposed, S.B. 2778 amends current law relating to the amount of an expenditure that may be paid by an emergency services district employee without board approval. 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 Section 775.073(b), Health and Safety Code, to prohibit an expenditure of more than $50,000, rather than $2,000, from being paid unless the expenditure is presented to the board of emergency services commissioners (board) and the board approves the expenditure. SECTION 2. Makes application of this Act prospective. SECTION 3. Effective date: September 1, 2025.