81R6342 KLA-F
By: Villarreal, Rodriguez, Kent H.B. No. 955
A BILL TO BE ENTITLED
AN ACT
relating to expanding the capacity of volunteer income tax
assistance programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2306, Government Code, is amended by
adding Subchapter NN to read as follows:
SUBCHAPTER NN. VOLUNTEER INCOME TAX ASSISTANCE (VITA) GRANT PROGRAM
Sec. 2306.1091. DEFINITIONS. In this subchapter:
(1) "Federal income tax filing season" means a period
of each year that begins January 2 and ends April 30.
(2) "Free File program" means the free federal income
tax preparation and electronic filing program for eligible
taxpayers that is developed through a partnership between the
Internal Revenue Service and private tax software companies.
(3) "Grant program" means the volunteer income tax
assistance grant program established under this subchapter.
(4) "Volunteer income tax assistance program" means a
program operated through a collaboration of the Internal Revenue
Service and another entity under which taxpayers eligible for the
Free File program receive free assistance in preparing federal
income tax returns.
Sec. 2306.1092. ESTABLISHMENT OF VOLUNTEER INCOME TAX
ASSISTANCE (VITA) GRANT PROGRAM. The department shall establish a
volunteer income tax assistance grant program through which the
department will award grants each year to support the
implementation and operation of volunteer income tax assistance
programs in the subsequent federal income tax filing season.
Sec. 2306.1093. ADMINISTRATION OF GRANT PROGRAM. In the
year preceding the federal income tax filing season in which grant
recipients will operate volunteer income tax assistance programs,
the department shall:
(1) issue a request for proposals to participate in
the grant program on or before June 30;
(2) select and notify grant recipients on or before
September 1; and
(3) distribute grant program money on or before
November 1.
Sec. 2306.1094. ELIGIBILITY. To be eligible for a grant, an
applicant must be located in this state and be:
(1) a nonprofit educational institution, a nonprofit
faith-based or community-based organization, or any other
nonprofit organization;
(2) a political subdivision of this state, including a
county or municipality; or
(3) a regional or local coalition that has at least one
lead organization that meets the criteria specified by Subdivision
(1) or (2).
Sec. 2306.1095. APPLICATION. An entity that meets the
eligibility requirements specified by Section 2306.1094 may apply
for a grant by submitting a written application to the department on
a form prescribed by the board. The application must include:
(1) proof of designation by the Internal Revenue
Service as a volunteer income tax assistance program sponsor;
(2) the applicant's Electronic Filing Identification
Number assigned by the Internal Revenue Service;
(3) a letter of support from the applicant's regional
Internal Revenue Service Stakeholder, Partnerships, Education, and
Communication representative;
(4) a statement that the applicant agrees to use grant
money distributed under this subchapter primarily to serve
taxpayers eligible for the Free File program; and
(5) an agreement to operate a volunteer income tax
assistance program using a mixture of funding the total operating
funds of which for any year consist of not more than 65 percent
grant program money distributed under this subchapter.
Sec. 2306.1096. ADDITIONAL CONSIDERATIONS IN AWARDING
GRANTS. In determining whether to award a grant to an applicant who
otherwise meets the eligibility requirements specified by this
subchapter, the department may give special consideration to
applicants who will:
(1) serve areas that have historically experienced:
(A) low earned income tax credit claim rates;
(B) high usage rates of refund anticipation loans
or similar products; or
(C) low participation rates, as compared to other
areas, in free tax preparation programs by families eligible for
the earned income tax credit;
(2) assist persons filing federal income tax returns
in attaining financial stability; or
(3) assist persons filing federal income tax returns
with enrolling in or contributing to college savings plans or
funds.
Sec. 2306.1097. LIMITATION. A single grant recipient may
not receive more than 25 percent of the total amount of grant
program money distributed in one year.
Sec. 2306.1098. USE OF GRANT PROGRAM MONEY. Grant program
money may be used only to pay:
(1) the wages of volunteer income tax assistance
program staff;
(2) the costs of operating the volunteer income tax
assistance program, including rent, computers, furniture, office
supplies, telephone service, and Internet service; and
(3) the costs of recruiting and training volunteers.
Sec. 2306.1099. PERFORMANCE AGREEMENT. Each grant
recipient shall enter into a performance agreement with the
department detailing the department's expectations for the use of
the grant program money and the work to be performed by the
recipient.
Sec. 2306.1100. PERFORMANCE REPORT. Each grant recipient
shall submit a performance report to the department not later than
May 30 of the year in which the recipient operates a volunteer
income tax assistance program using grant program money. The
performance report must include detailed information about:
(1) each expenditure of grant program money made by
the recipient; and
(2) the amount of earned income tax credit funds
generated directly by the volunteer income tax assistance program
operated by the recipient using grant program money.
Sec. 2306.1101. GRANT PROGRAM FUNDING. (a) To the extent
authorized by federal law and subject to appropriation for this
purpose, the department shall distribute as grants authorized by
this subchapter at least 0.25 percent of the funds received by this
state during each state fiscal biennium under the federal Temporary
Assistance for Needy Families block grant.
(b) The comptroller shall transfer funds received under the
federal Temporary Assistance for Needy Families block grant from
the Health and Human Services Commission to the department as
necessary to implement this section.
(c) In addition to funds described by Subsection (a), the
department shall distribute as grants authorized by this subchapter
other money that is:
(1) appropriated for that purpose; or
(2) designated by the department and otherwise
available for that purpose.
Sec. 2306.1102. RULES. The board shall adopt rules as
necessary to implement this subchapter.
SECTION 2. (a) In this section, "grant program" means the
volunteer income tax assistance grant program established under
Subchapter NN, Chapter 2306, Government Code, as added by this Act.
(b) Notwithstanding Section 2306.1093, Government Code, as
added by this Act, for grants awarded under the grant program in
2009 that will be used to operate volunteer income tax assistance
programs during 2010, the Texas Department of Housing and Community
Affairs shall:
(1) issue a request for proposals to participate in
the grant program on or before September 15, 2009;
(2) select and notify grant recipients on or before
November 15, 2009; and
(3) distribute grant money on or before December 15,
2009.
SECTION 3. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.