Relating to the funding of law enforcement agencies in certain counties.

Contracts

Review "Contract Deputy" Agreements: Entities contracting with the Harris County Sheriff or Constables (under Local Government Code 85.025 or 86.026) must audit their agreements.

• Non-Substitution Mandate: Ensure your contract acknowledges that payments are credited directly to the specific agency's account.
• Service Level Verification: Since the County cannot reduce base funding due to your contract, your payments should result in a net increase in presence. If your contract payments remain steady but service levels drop due to "budget cuts," the County is likely in violation of the new statute.

Hiring/Training

• N/A for Private Entities: This bill regulates government finance. However, businesses should expect fewer delays in the deployment of officers, as the County Auditor’s ability to block "lawful" expenditures for equipment and training has been statutorily removed.

Reporting & Record-Keeping

Segregated Payment Ledgers:

• Maintain precise records of all payments made for law enforcement services.
• Do not rely solely on County invoices. Track your payments against the specific Constable Precinct’s operational output. If a dispute arises regarding "defunding," your payment history will be the primary evidence required by the Governor’s Office to trigger an investigation.

Fees & Costs

Tax Rate Volatility:

• No Direct Fee Increase: The bill does not mandate fee hikes.
• Indirect Fiscal Risk: If Harris County is found in violation (e.g., by reducing LE funding without voter approval), the County is penalized with a "No-New-Revenue" tax rate cap. This severe fiscal constraint could lead to service reductions in *other* county departments (permitting, inspections, roads) that your business relies on.