S.B. No. 2010 introduces a new section to the Local Government Code, specifically Section 140.014, which prohibits political subdivisions from establishing or operating guaranteed income programs unless explicitly authorized by federal law. The bill defines a "guaranteed income program" as any form of direct or indirect financial assistance to individuals, including cash payments and gift cards. If such programs are authorized by federal law, the bill stipulates that state and local public funds cannot be used to support or administer them. However, the prohibition does not apply to short-term programs that require individuals to seek employment or participate in job training as a condition for receiving payments.

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 from both houses of the legislature; otherwise, it will take effect on September 1, 2025.

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