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 for the enforcement of any existing guaranteed income programs that were established before the effective date of this Act until January 1, 2026, or until the expiration of those programs, whichever comes first. The Act will 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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