The bill, S.B. No. 395, amends the Local Government Code by adding Section 140.014, which prohibits political subdivisions from establishing or operating guaranteed income programs unless explicitly authorized by law. A "guaranteed income program" is defined as one that provides individuals with unconditional cash payments on a regular basis, without requiring them to seek employment or participate in job training. This new provision aims to restrict local governments from implementing such programs without legislative approval.

Additionally, the bill allows any existing guaranteed income programs that were in effect prior to the enactment of this law to continue operating until January 1, 2026, or until their expiration, whichever comes first. The bill is set to take effect immediately if it receives a two-thirds majority vote in both houses of the legislature; otherwise, it will take effect on September 1, 2025.

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