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 restrictions under disaster remediation contracts. Under the provisions of the bill, a disaster remediation contractor who requires payment before beginning work or partial payment exceeding an amount reasonably proportionate to the work performed as outlined in the bill would commit a Class B misdemeanor or third degree felony offense depending on the specific circumstances. Under existing statute, deceptive trade practices offenses are punishable as misdemeanors.   

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.

Creating an offense for which a criminal penalty is applied is expected to result in additional demands upon the correctional resources of counties or of the State due to an increase in the number of individuals placed under supervision in the community or sentenced to a term of confinement within state correctional institutions. From fiscal years 2018 through 2020, fewer than ten people were arrested, placed onto community supervision, or admitted into a state correctional institution for deceptive trade practices offenses under existing statute. This analysis assumes implementing the provisions of the bill addressing felony sanctions would not result in a significant impact on state correctional populations or on the demand for state correctional resources.