Texas 2009 - 81st Regular

Texas House Bill HB955 Compare Versions

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1	1	81R6342 KLA-F
2	2	By: Villarreal, Rodriguez, Kent H.B. No. 955
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to expanding the capacity of volunteer income tax
8	8	assistance programs.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 2306, Government Code, is amended by
11	11	adding Subchapter NN to read as follows:
12	12	SUBCHAPTER NN. VOLUNTEER INCOME TAX ASSISTANCE (VITA) GRANT PROGRAM
13	13	Sec. 2306.1091. DEFINITIONS. In this subchapter:
14	14	(1) "Federal income tax filing season" means a period
15	15	of each year that begins January 2 and ends April 30.
16	16	(2) "Free File program" means the free federal income
17	17	tax preparation and electronic filing program for eligible
18	18	taxpayers that is developed through a partnership between the
19	19	Internal Revenue Service and private tax software companies.
20	20	(3) "Grant program" means the volunteer income tax
21	21	assistance grant program established under this subchapter.
22	22	(4) "Volunteer income tax assistance program" means a
23	23	program operated through a collaboration of the Internal Revenue
24	24	Service and another entity under which taxpayers eligible for the
25	25	Free File program receive free assistance in preparing federal
26	26	income tax returns.
27	27	Sec. 2306.1092. ESTABLISHMENT OF VOLUNTEER INCOME TAX
28	28	ASSISTANCE (VITA) GRANT PROGRAM. The department shall establish a
29	29	volunteer income tax assistance grant program through which the
30	30	department will award grants each year to support the
31	31	implementation and operation of volunteer income tax assistance
32	32	programs in the subsequent federal income tax filing season.
33	33	Sec. 2306.1093. ADMINISTRATION OF GRANT PROGRAM. In the
34	34	year preceding the federal income tax filing season in which grant
35	35	recipients will operate volunteer income tax assistance programs,
36	36	the department shall:
37	37	(1) issue a request for proposals to participate in
38	38	the grant program on or before June 30;
39	39	(2) select and notify grant recipients on or before
40	40	September 1; and
41	41	(3) distribute grant program money on or before
42	42	November 1.
43	43	Sec. 2306.1094. ELIGIBILITY. To be eligible for a grant, an
44	44	applicant must be located in this state and be:
45	45	(1) a nonprofit educational institution, a nonprofit
46	46	faith-based or community-based organization, or any other
47	47	nonprofit organization;
48	48	(2) a political subdivision of this state, including a
49	49	county or municipality; or
50	50	(3) a regional or local coalition that has at least one
51	51	lead organization that meets the criteria specified by Subdivision
52	52	(1) or (2).
53	53	Sec. 2306.1095. APPLICATION. An entity that meets the
54	54	eligibility requirements specified by Section 2306.1094 may apply
55	55	for a grant by submitting a written application to the department on
56	56	a form prescribed by the board. The application must include:
57	57	(1) proof of designation by the Internal Revenue
58	58	Service as a volunteer income tax assistance program sponsor;
59	59	(2) the applicant's Electronic Filing Identification
60	60	Number assigned by the Internal Revenue Service;
61	61	(3) a letter of support from the applicant's regional
62	62	Internal Revenue Service Stakeholder, Partnerships, Education, and
63	63	Communication representative;
64	64	(4) a statement that the applicant agrees to use grant
65	65	money distributed under this subchapter primarily to serve
66	66	taxpayers eligible for the Free File program; and
67	67	(5) an agreement to operate a volunteer income tax
68	68	assistance program using a mixture of funding the total operating
69	69	funds of which for any year consist of not more than 65 percent
70	70	grant program money distributed under this subchapter.
71	71	Sec. 2306.1096. ADDITIONAL CONSIDERATIONS IN AWARDING
72	72	GRANTS. In determining whether to award a grant to an applicant who
73	73	otherwise meets the eligibility requirements specified by this
74	74	subchapter, the department may give special consideration to
75	75	applicants who will:
76	76	(1) serve areas that have historically experienced:
77	77	(A) low earned income tax credit claim rates;
78	78	(B) high usage rates of refund anticipation loans
79	79	or similar products; or
80	80	(C) low participation rates, as compared to other
81	81	areas, in free tax preparation programs by families eligible for
82	82	the earned income tax credit;
83	83	(2) assist persons filing federal income tax returns
84	84	in attaining financial stability; or
85	85	(3) assist persons filing federal income tax returns
86	86	with enrolling in or contributing to college savings plans or
87	87	funds.
88	88	Sec. 2306.1097. LIMITATION. A single grant recipient may
89	89	not receive more than 25 percent of the total amount of grant
90	90	program money distributed in one year.
91	91	Sec. 2306.1098. USE OF GRANT PROGRAM MONEY. Grant program
92	92	money may be used only to pay:
93	93	(1) the wages of volunteer income tax assistance
94	94	program staff;
95	95	(2) the costs of operating the volunteer income tax
96	96	assistance program, including rent, computers, furniture, office
97	97	supplies, telephone service, and Internet service; and
98	98	(3) the costs of recruiting and training volunteers.
99	99	Sec. 2306.1099. PERFORMANCE AGREEMENT. Each grant
100	100	recipient shall enter into a performance agreement with the
101	101	department detailing the department's expectations for the use of
102	102	the grant program money and the work to be performed by the
103	103	recipient.
104	104	Sec. 2306.1100. PERFORMANCE REPORT. Each grant recipient
105	105	shall submit a performance report to the department not later than
106	106	May 30 of the year in which the recipient operates a volunteer
107	107	income tax assistance program using grant program money. The
108	108	performance report must include detailed information about:
109	109	(1) each expenditure of grant program money made by
110	110	the recipient; and
111	111	(2) the amount of earned income tax credit funds
112	112	generated directly by the volunteer income tax assistance program
113	113	operated by the recipient using grant program money.
114	114	Sec. 2306.1101. GRANT PROGRAM FUNDING. (a) To the extent
115	115	authorized by federal law and subject to appropriation for this
116	116	purpose, the department shall distribute as grants authorized by
117	117	this subchapter at least 0.25 percent of the funds received by this
118	118	state during each state fiscal biennium under the federal Temporary
119	119	Assistance for Needy Families block grant.
120	120	(b) The comptroller shall transfer funds received under the
121	121	federal Temporary Assistance for Needy Families block grant from
122	122	the Health and Human Services Commission to the department as
123	123	necessary to implement this section.
124	124	(c) In addition to funds described by Subsection (a), the
125	125	department shall distribute as grants authorized by this subchapter
126	126	other money that is:
127	127	(1) appropriated for that purpose; or
128	128	(2) designated by the department and otherwise
129	129	available for that purpose.
130	130	Sec. 2306.1102. RULES. The board shall adopt rules as
131	131	necessary to implement this subchapter.
132	132	SECTION 2. (a) In this section, "grant program" means the
133	133	volunteer income tax assistance grant program established under
134	134	Subchapter NN, Chapter 2306, Government Code, as added by this Act.
135	135	(b) Notwithstanding Section 2306.1093, Government Code, as
136	136	added by this Act, for grants awarded under the grant program in
137	137	2009 that will be used to operate volunteer income tax assistance
138	138	programs during 2010, the Texas Department of Housing and Community
139	139	Affairs shall:
140	140	(1) issue a request for proposals to participate in
141	141	the grant program on or before September 15, 2009;
142	142	(2) select and notify grant recipients on or before
143	143	November 15, 2009; and
144	144	(3) distribute grant money on or before December 15,
145	145	2009.
146	146	SECTION 3. If before implementing any provision of this Act
147	147	a state agency determines that a waiver or authorization from a
148	148	federal agency is necessary for implementation of that provision,
149	149	the agency affected by the provision shall request the waiver or
150	150	authorization and may delay implementing that provision until the
151	151	waiver or authorization is granted.
152	152	SECTION 4. This Act takes effect immediately if it receives
153	153	a vote of two-thirds of all the members elected to each house, as
154	154	provided by Section 39, Article III, Texas Constitution. If this
155	155	Act does not receive the vote necessary for immediate effect, this
156	156	Act takes effect September 1, 2009.