BILL ANALYSIS

S.B. 2010

By: Bettencourt

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

There currently exists no prohibition under the Local Government Code on political entities in Texas creating guaranteed income programs. The bill sponsor has informed the committee that these programs redistribute taxpayer funds unfairly, ultimately undermining their intended purpose by pulling resources from the very communities they aim to support, exacerbating poverty rather than alleviating it. S.B. 2010 seeks to avoid the inappropriate expenditure of taxpayer money by prohibiting political subdivisions from using state or local public funds to operate a guaranteed income program.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 2010 amends the Local Government Code to prohibit 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. The bill prohibits, if such a guaranteed income program is explicitly authorized by federal law, state and local public funds from being used to fund, administer, or support the operation of the program in any capacity. The bill defines "guaranteed income program" as direct or indirect financial assistance to an individual, including cash payments, gift cards, or equivalent monetary transfers, whether recurring or structured as separate distributions. The bill establishes that its provisions do 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.

S.B. 2010 establishes that an ordinance, order, regulation, or other measure that establishes or provides for the operation of a guaranteed income program in effect before the bill's effective date may be enforced until the earlier of January 1, 2026, or the expiration of the ordinance, order, regulation, or other measure.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.