By: Frank H.B. No. 3905
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a program for assisting certain
recipients in achieving self-sufficiency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Human Resources Code, Subtitle C, is
amended by adding Chapter 37 to read as follows:
CHAPTER 37. TEXAS FAMILY ASSISTANCE PROGRAM
Sec. 37.001. PURPOSES. The purpose of the Texas Family
Assistance Program is to assist families from low-income households
to achieve self-sufficiency.
Sec. 37.002. DEFINITIONS. In this subchapter:
(1) "Account" means a Texas Family Assistance Program
electronic account established under the program.
(2) "Family service organization" means an
organization performing the powers and duties of a certified family
service organization under Section 37.014.
(3) "Family" means individuals residing in the same
household, with at least one parent or guardian and one child under
the age of twenty-one years.
(4) "Family service provider" means an entity that
provides approved services according to Section 37.015.
(5) "Program" means the Texas Family Assistance
Program established under this subchapter.
(6) "Program participant" means a family enrolled in
the program.
(7) "Grant" means the amount of money granted to the
program participant under this subchapter.
(8) "State premium tax liability" has the meaning
assigned by Section 231.001(6), Insurance Code.
(9) "Self-sufficiency" means being employed in a
position that pays a sufficient wage, having financial savings in
an amount that is equal to at least $1,000 per member of a family's
household, and maintaining a debt-to-income ratio that does not
exceed 43 percent.
Sec. 37.003. ESTABLISHMENT OF PROGRAM. (a) The
comptroller shall establish a Texas Family Assistance Program to
provide funding for approved expenses of families who are admitted
into the program under Section 37.006(a).
Sec. 37.004. TEXAS FAMILY ASSISTANCE PROGRAM FUND. (a) The
Texas Family Assistance Program fund shall be established and
administered by the comptroller.
(b) The fund is composed of:
(1) general revenue transferred to the fund;
(2) money appropriated to the fund;
(3) gifts, grants, and donations received under
Section 37.005;
(4) contributions to the Texas Family Assistance
Program fund for which an entity receives from the Comptroller
preliminary approval or final award of a credit against the state
premium tax liability under Chapter 231, Insurance Code; and
(5) any other money available for purposes of the
program.
(c) A payment under the program may not be financed using
federal funds.
(d) The comptroller shall present to the legislature an
estimate of the amount of money required for the purposes of this
section. The legislature shall appropriate amounts sufficient to
implement the Texas Family Assistance Program fund.
Sec. 37.005. GIFTS, GRANTS, AND DONATIONS. The comptroller
may solicit and accept gifts, grants, and donations from any public
or private source for any expenses related to the administration of
the program, including the initial implementation of the program.
Sec. 37.006. ELIGIBLE FAMILY. (a) To be eligible to
participate in the program a family must be a part of a household
with a total annual income that is at or below 200 percent of the
federal poverty level.
(b) A family who is admitted into the program may
participate in the program until:
(1) the youngest child's twenty-first birthday;
(2) the family is declared ineligible for the program
by the comptroller under Section 37.018; or
(3) the family reaches self-sufficiency.
Sec. 37.007. APPROVED EXPENSES. (a) The Health and Human
Services Commission shall establish rules regarding the approved
expenses, administration, procedures and implementation of the
Texas Family Assistance Program.
Sec. 37.008. AMOUNT OF ASSISTANCE AVAILABLE; FINANCING.
(a) The annual funding for each family who is admitted into the
program shall not exceed $10,000 per person.
(b) In partnership with the commission, the comptroller
shall calculate the annual assistance amount under Subsection (a).
(c) Any funds remaining in a program participant's account
at the end of a fiscal year are carried forward to the next fiscal
year unless another provision of this subchapter mandates the
closure of the account.
(d) On the date on which a program participant is no longer
eligible to participate in the program under Section 37.006(b), the
program participant's account shall be closed and any remaining
funds shall be returned to the state for deposit in the Texas Family
Assistance Program fund.
Sec. 37.009. ADMINISTRATION OF THE PROGRAM. (a) The
comptroller shall certify at least one and no more than three family
service organizations to administer the program.
(b) The comptroller shall allocate to the program
participant's account the annual amount of a grant awarded to a
program participant in equal quarterly amounts on or before the 1st
day of August, November, February, and May.
(c) Each quarter, the comptroller may deduct an amount from
the Texas Family Assistance Program Fund to cover the comptroller's
cost of administering the program. The annual amount deducted may
not exceed three percent of the fund for the fiscal year.
(d) Each quarter, the comptroller shall disburse to the
family service organization an amount from the Texas Family
Assistance Program fund to cover the organization's cost of
administering the program. The annual amount disbursed between all
of the family service organizations may not exceed five percent of
the fund for the fiscal year.
(e) The comptroller or family service organization(s) shall
publish on their website an application for family service
providers to apply and be verified to participate in the program.
If a family service provider satisfies the requirements under
Section 37.015, the comptroller or family service organization
shall verify the applicant and share the verified family service
provider's information with the family service organization in
accordance with Section 37.015(d).
Sec. 37.010. ENROLLMENT IN PROGRAM. (a) An eligible family
may apply to a family service organization to enroll in the program.
(b) Family service organizations shall create an enrollment
form for the program and make the enrollment form readily available
to interested families through various sources, including the
organization's website. An enrollment form for the program may be
submitted to a family service organization electronically.
(c) Family service organizations shall post on the
organization's website and provide to each family who submits an
enrollment form a publication that describes the operation of the
program, including:
(1) expenses allowed under the program under Section
37.007;
(2) expense reporting requirements established by the
family service organization;
(3) a description of the responsibilities of program
participants, including those under Section 37.011; and
(4) the duties of family service organizations under
this subchapter.
(d) Family service organizations shall provide annually to
each program participant the information required under Subsection
(c). Information may be provided electronically.
Sec. 37.011. PARTICIPATION IN PROGRAM. (a) A program
participant must agree to:
(1) direct program funds only for allowed expenses;
(2) notify their family service organization within 30
days if they are no longer eligible for the program.
(b) The program participant shall provide their family
service organization any information needed to determine program
eligibility.
(c) No member of the program participant's immediate family
or household may be hired to serve as their family service provider
under this program.
Sec. 37.012. CERTIFICATION OF FAMILY SERVICE ORGANIZATION.
(a) An organization may apply to the comptroller for certification
to be a family service organization for the program during an
application period provided by the comptroller.
(b) To be eligible for certification, the organization
must:
(A) have the ability to award grants to program
participants and pay verified family service providers;
(B) be exempt from federal tax under Section
501(a) of the Internal Revenue Code of 1986 by being recognized as
an exempt organization in Section 501(c)(3) of that code;
(C) be in good standing with the state; and
(D) be able to administer the program, including:
(i) accept, process, and track applications
for grants; and
(ii) award grants to families.
Sec. 37.013. ALLOCATION OF MONEY DESIGNATED FOR GRANTS.
(a) Of the amount required to be allocated as provided by Section
37.008, the family service organization shall use:
(1) at least 95 percent to award grants to families who
are admitted into the program; and
(2) not more than five percent for fees for the
management of the program.
Sec. 37.014. FAMILY SERVICE ORGANIZATION POWERS AND DUTIES.
(a) A family service organization shall create and publish on their
website an application form for families interested in enrolling in
the program. The form may be filled out and submitted
electronically.
(b) As long as funds are available, a family service
organization shall admit into the program families who applied to
the program if the family service organization finds the family to
be eligible under Section 37.006.
(c) Family service organizations shall award a grant to each
program participant in the amount as applicable by Section 37.008.
(d) Family service organizations shall give first priority
for program participation to eligible families who received a grant
during the previous year.
(e) Except as provided in subsection (d), family service
organizations shall give priority for program participation to
eligible families who demonstrate the greatest financial need.
(f) The family service organizations shall post all
entities which the organization has been notified under Section
37.015 that are eligible to receive program funds. No family
service provider shall be preferred over any other family service
provider.
Sec. 37.015. FAMILY SERVICE PROVIDER REQUIREMENTS. (a)
All family service providers must apply to and be verified by the
comptroller to be eligible to receive funds under the program. In
partnership with the Health and Human Services Commission, the
Comptroller shall establish rules regarding the family service
provider requirements and verification. If the family service
provider meets the requirements, the comptroller may not refuse to
verify that family service provider.
(b) any family service providers that provide services or
materials that qualify as an approved expense under Section 37.007
shall present any necessary supporting documents concerning their
qualification to serve program participants.
(c) The comptroller shall maintain, post on the
comptroller's website, and provide to the family service
organizations a list of all family service providers which have
sought to participate in the program and which the comptroller has
verified or found to be eligible under Section 37.015 to receive
program funds
(d) A family service provider may not charge a family
participating in the program an amount greater than the standard
amount charged for that service by the provider.
(e) A family service provider receiving program funds may
not in any manner rebate, refund, credit to, or share with a program
participant, or any person on behalf of a program participant, any
program funds paid or owed by the program participant to the family
service provider.
Sec. 37.016. SERVICE PROVIDERS AUTONOMY. (a) A family
service provider that receives program funds is not an agent of the
state or federal government.
(b) The program does not expand the regulatory authority of
the state to impose any additional regulation on an family service
provider except those reasonably necessary to maintain the program
as provided by this subchapter.
(c) Family service providers may not be required to modify
their creed, practices, or operations to receive funds distributed
under the program.
(d) In any proceeding challenging a rule adopted by a state
commission or officer under this subchapter, the commission or
officer has the burden of proof to establish that the rule:
(1) is necessary to implement or maintain the program
as provided by this subchapter; and
(2) does not impose an undue burden on a program
participant or a family service provider that receives or seeks to
receive funds distributed under the program.
Sec. 37.017. RANDOM AUDITING. (a) The comptroller may
contract with a private entity to randomly audit family service
organizations as necessary to ensure compliance with the
requirements of the program.
(b) In auditing, the comptroller or private entity may
require that a program participant or family service organization
provide further information and documentation regarding any
payment from the Texas Family Assistance Program fund.
(c) The private entity shall report to the comptroller any
violation of this subchapter or other relevant law found by the
entity during an audit conducted under this section.
(d) A finding that program funds were used for an expense
not allowed under Section 37.007 does not affect the validity of any
payment made for an expense that is allowed under Section 37.007.
Sec. 37.018. SUSPENSION OF ACCOUNT. (a) If the comptroller
determines a program participant has failed to comply with
applicable law or a requirement of the program the comptroller or
the family service organization shall suspend the account of a
program participant.
(b) On suspension of an account under Subsection (a), the
comptroller or family service organization shall notify the program
participant in writing that the account has been suspended and that
no further payments shall be made from the account. The
notification must specify the grounds for the suspension and state
that the program participant has 10 business days to respond and
take any corrective action required by the comptroller or family
service organization.
(c) On the expiration of the 10-day period under Subsection
(b), the comptroller or family service organization shall:
(1) order permanent closure of the suspended account
and declare the program participant ineligible for the program;
(2) order temporary reinstatement of the account,
conditioned on the performance of a specified action by the program
participant; or
(3) order full reinstatement of the account.
(d) The comptroller or family service organization may
recover funds distributed under the program that were used for
expenses not allowed under Section 37.007 from the program
participant or the family service provider that received the funds
if the program participant's account is suspended or closed under
this section.
Sec. 37.019. REFERRAL TO THE ATTORNEY GENERAL. (a) If the
comptroller or family service organization obtains evidence of
fraudulent use of an account, the comptroller or family service
organization may refer the case to the attorney general for
investigation.
(b) With the consent of the appropriate local county or
district attorney, the attorney general has concurrent
jurisdiction with the consenting local prosecutor to prosecute an
offense referred to the attorney general under Subsection (a).
Sec. 37.020. TAX CREDIT ADMINISTRATION DUITIES. (a) The
comptroller shall give each donor who provides notice under Section
231.051(c), Insurance Code, a receipt for money contributed to the
organization that includes the name of the organization, the name
of the donor, the amount of the contribution, the information
required by Section 231.051(c), and any other information required
by the comptroller.
(i) The comptroller shall disburse within two academic
years of receipt contributions to the Texas Family Assistance
Program fund for which an entity receives from the comptroller
preliminary approval or final award of a credit against the state
premium tax liability under Chapter 231, Insurance Code.
Sec. 37.021. RULES; PROCEDURES. (a) The comptroller shall
adopt rules and procedures only as necessary to implement,
administer, and enforce this chapter.
(b) A rule adopted under Subsection (a) is binding on an
organization that applies for certification as an family service
organization, an entity that applies for a credit, and a state or
local governmental entity, including a political subdivision, as
necessary to implement, administer, and enforce this chapter.
SECTION 2. Subtitle B, Title 3, Insurance Code, is amended
by adding Chapter 231 to read as follows:
CHAPTER 231. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO
TEXAS FAMILY ASSISTANCE PROGRAM FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 231.001. DEFINITIONS. In this chapter:
(1) "Family service organization" has the meaning
assigned by Sec. 37.002(2), Human Resources Code.
(2) "Family service provider" has the meaning assigned
by Sec. 37.002(4), Human Resources Code.
(3) "Program" has the meaning assigned by Sec.
37.002(5), Human Resources Code.
(4) "Program participant" has the meaning assigned by
Sec. 37.002(6), Human Resources Code.
(5) "Grant" has the meaning assigned by Sec.
37.002(7), Human Resources Code.
(6) "State premium tax liability" means any liability
incurred by an entity under Chapters 221 through 226.
Sec. 231.002. RULES; PROCEDURES. (a) The comptroller shall
adopt rules and procedures only as necessary to implement,
administer, and enforce this chapter.
(b) A rule adopted under Subsection (a) is binding on an
organization that applies for certification as a family service
organization under Sec. 37.012, Human Resources Code, an entity
that applies for a credit, and a state or local governmental entity,
including a political subdivision, as necessary to implement,
administer, and enforce this chapter.
SUBCHAPTER B. CREDIT
Sec. 231.051. CREDIT FOR CONTRIBUTIONS. (a) An entity may
apply for a credit under this chapter only for money contributed to
the comptroller and designated for the Texas Family Assistance
Program fund for use by program participants.
(b) An entity may not apply for a credit under this chapter
for a contribution made to the comptroller if:
(1) the entity requires that the contribution benefit
a particular program participant or family service provider; or
(2) the contribution is designated to provide a grant
for an entity employee or for a spouse or dependent of an entity
employee.
(c) The comptroller shall indicate on the receipt required
under Sec. 37.020, Human Resources Code, that the entity made the
notification under this subsection.
Sec. 231.052. CREDIT. An entity may apply for a credit
against the entity's state premium tax liability in the amount and
under the conditions and limitations provided by this chapter. The
comptroller shall award credits as provided by Section 231.055.
Sec. 231.053. AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)
Subject to Subsections (b) and (c), the amount of an entity's credit
is equal to the lesser of the amount of the qualifying contributions
made to the comptroller for the program or 50 percent of the
entity's state premium tax liability.
(b) Subject to Subsection (c), the total amount of tax
credits that may be awarded under this chapter for a state fiscal
year may not exceed $10 million.
(c) In the 2022 state fiscal year and each state fiscal year
thereafter, the tax credit cap amount is the tax credit cap amount
in the prior state fiscal year. However, when the total annual tax
credits awarded by the comptroller under Section 231.055(c) for the
prior state fiscal year is equal to or greater than 90 percent of
the tax credit cap amount applicable to that state fiscal year, the
tax credit cap amount shall increase by 25 percent. The comptroller
shall provide notice on the comptroller's website when the tax
credit cap amount is increased pursuant to this subparagraph.
(d) The comptroller by rule shall prescribe procedures by
which the comptroller may allocate credits under this chapter. The
procedures must provide that credits are first allocated to
entities that were granted preliminary approval for a credit under
Section 231.054 in the amount that was preliminarily approved. The
procedures must provide that any remaining credits are allocated on
a first-come, first-served basis, based on the date the
contribution was initially made.
(e) The comptroller may require an entity to notify the
comptroller of the amount the entity intends or expects to apply for
under this chapter before the beginning of a state fiscal year or at
any other time required by the comptroller.
Sec. 231.054. PRELIMINARY APPROVAL FOR CREDIT. (a) Before
making a contribution to the comptroller, an entity may apply to the
comptroller for preliminary approval of a credit under this chapter
for the contribution.
(b) An entity must apply for preliminary approval of a
credit on a form provided by the comptroller that includes the
amount the entity expects to contribute and any other information
required by the comptroller.
(c) The comptroller shall grant preliminary approval for
credits under this chapter on a first-come, first-served basis,
based on the date the application for preliminary approval is
received by the comptroller.
(d) The comptroller shall grant preliminary approval for a
credit under this chapter if the total amount of credits
preliminarily approved under this chapter does not exceed the
amount provided by Section 231.053(b).
(e) A credit for which the comptroller grants preliminary
approval remains subject to the limitation under Section 231.053(a)
and any other limitations prescribed by this chapter.
Sec. 231.055. APPLICATION FOR CREDIT. (a) An entity must
apply for a credit under this chapter on or with the tax return for
the taxable year and submit with the application each receipt
issued under Sec. 37.020 Human Resources Code, that includes the
information required by Section 231.051(c).
(b) The comptroller shall adopt a form for the application
for the credit. An entity must use this form in applying for the
credit.
(c) The comptroller may award a credit to an entity that
applies for the credit under Subsection (a) if the entity is
eligible for the credit and the credit is available under Section
231.053(b). The comptroller has broad discretion in determining
whether to grant or deny an application for a credit.
(d) The comptroller shall notify an entity in writing of the
comptroller's decision to grant or deny the application under
Subsection (a). If the comptroller denies an entity's application,
the comptroller shall include in the notice of denial the reasons
for the comptroller's decision.
(e) If the comptroller denies an entity's application under
Subsection (a), the entity may request in writing a reconsideration
of the application not later than the 10th day after the date of the
notice under Subsection (d). If the entity does not request a
reconsideration of the application on or before that date, the
comptroller's decision is final.
(f) An entity that requests a reconsideration under
Subsection (e) may submit to the comptroller not later than the 30th
day after the date the request for reconsideration is submitted
additional information and documents to support the entity's
request for reconsideration.
(g) The comptroller's reconsideration of an application
under this section is not a contested case under Chapter 2001,
Government Code. The comptroller's decision on a request for
reconsideration of an application is final and is not appealable.
(h) This section does not create a cause of action to
contest a decision of the comptroller to deny an application for a
credit under this chapter.
Sec. 231.056. ASSIGNMENT PROHIBITED; EXCEPTION. An entity
may not convey, assign, or transfer the credit allowed under this
chapter to another entity unless all of the assets of the entity are
conveyed, assigned, or transferred in the same transaction.
Sec. 231.057. NOTICE OF AVAILABILITY OF CREDIT. The
comptroller shall provide notice of the availability of the credit
under this chapter on the comptroller's website, in the
instructions for insurance premium tax report forms, and in any
notice sent to an entity concerning the requirement to file an
insurance premium tax report.
SECTION 3. Not later than 45 days after the effective date
of this Act the comptroller of public accounts and the commission
shall adopt rules necessary to implement the Texas Family
Assistance Program established under Chapter 37, Human Resources
Code, as added by this Act.
SECTION 4. (a) If some or all of the provisions of this Act
are ever temporarily or permanently restrained or enjoined by
judicial order, all other provisions of the Act shall be enforced as
though the restrained or enjoined provisions had not been adopted;
provided, however, that whenever the temporary or permanent
restraining order or injunction is stayed or dissolved, or
otherwise ceases to have effect, the provisions shall have full
force and effect.
(b) It is the intent of the legislature that every
provision, section, subsection, sentence, clause, phrase, or word
in this Act, and every application of the provisions in this Act,
are severable from each other. If any application of any provision
in this Act to any person, group of persons, or circumstances is
found by any court to be invalid, the remaining applications of that
provision to all other persons and circumstances shall be severed
and may not be affected. All constitutionally valid applications of
this Act shall be severed from any applications that a court finds
to be invalid, leaving the valid applications in force, because it
is the legislature's intent and priority that the valid
applications be allowed to stand alone. Even if a reviewing court
finds a provision of this Act to impose an undue burden in a large or
substantial fraction of relevant cases, the applications that do
not present an undue burden shall be severed from the remaining
provisions and shall remain in force, and shall be treated as if the
legislature had enacted a statute limited to the persons, group of
persons, or circumstances for which the statute's application does
not present an undue burden. The legislature further declares that
it would have passed this Act, and each provision, section,
subsection, sentence, clause, phrase, or word, and all
constitutional applications of this Act, irrespective of the fact
that any provision, section, subsection, sentence, clause, phrase,
or word, or applications of this Act, were to be declared
unconstitutional or to represent an undue burden.
(c) If any provision of this Act is found by any court to be
unconstitutionally vague, then the applications of that provision
that do not present constitutional vagueness problems shall be
severed and remain in force.
SECTION 5. Except as otherwise provided by this Act:
(1) 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; and
(2) if this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2021.
SECTION 6. An entity may apply for a credit under Chapter
231, Insurance Code, as added by this Act, only for an expenditure
made on or after September 1, 2020.
SECTION 7. Chapter 231, Insurance Code, as added by this
Act, applies only to a report originally due on or after September
1, 2020.