The provisions of the bill addressing felony sanctions are the subject of this analysis.  The bill would amend the Business and Commerce Code as it relates to disaster remediation contracts.  Under the provisions of the bill, for a disaster remediation contractor to require prepayment for services would, under certain circumstances, be punishable as a Class B misdemeanor in the absence of intent to defraud, or, with intent to defraud, as a third degree felony.

A third degree felony is punishable by confinement in prison for a term from 2 to 10 years and, in addition to confinement, an optional fine not to exceed $10,000. A Class B misdemeanor is punishable by confinement in county jail for a term not to exceed 180 days and in addition to confinement, an optional fine not to exceed $2,000. 

This analysis assumes the provisions of the bill would not result in a significant impact on the demand for state correctional resources.