| 1 | 1 | | 88R3753 JCG-D |
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| 2 | 2 | | By: Johnson of Dallas, Wilson, Bumgarner, H.B. No. 3031 |
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| 3 | 3 | | Garcia, et al. |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to a grant program for members of the Texas military forces |
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| 9 | 9 | | experiencing financial hardship caused by a tax withholding error. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter E, Chapter 437, Government Code, is |
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| 12 | 12 | | amended by adding Section 437.233 to read as follows: |
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| 13 | 13 | | Sec. 437.233. GRANT PROGRAM FOR FINANCIAL HARDSHIP CAUSED |
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| 14 | 14 | | BY TAX WITHHOLDING ERROR. (a) The department shall establish and |
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| 15 | 15 | | administer a grant program to assist members of the Texas military |
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| 16 | 16 | | forces who experience financial hardship caused by a federal tax |
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| 17 | 17 | | withholding error in connection with the compensation paid to |
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| 18 | 18 | | members who served in Operation Lone Star in 2021 or 2022. |
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| 19 | 19 | | (b) A member of the Texas military forces is eligible for a |
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| 20 | 20 | | grant under this section if: |
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| 21 | 21 | | (1) the department erroneously withheld an |
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| 22 | 22 | | insufficient amount from the member's compensation for service in |
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| 23 | 23 | | Operation Lone Star in 2021 or 2022 to cover the federal income tax |
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| 24 | 24 | | imposed on that compensation; |
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| 25 | 25 | | (2) the member certifies in the grant application that |
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| 26 | 26 | | the member did not have actual knowledge of the withholding error; |
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| 27 | 27 | | and |
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| 28 | 28 | | (3) the member demonstrates that the withholding error |
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| 29 | 29 | | caused the member financial hardship. |
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| 30 | 30 | | (c) The department: |
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| 31 | 31 | | (1) may establish additional eligibility criteria for |
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| 32 | 32 | | grant applicants; and |
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| 33 | 33 | | (2) shall establish: |
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| 34 | 34 | | (A) grant application procedures; |
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| 35 | 35 | | (B) guidelines relating to grant amounts that |
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| 36 | 36 | | ensure that a grant to a member does not exceed the difference |
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| 37 | 37 | | between the amount the member owed in federal income taxes on |
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| 38 | 38 | | compensation the member received for service in Operation Lone Star |
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| 39 | 39 | | in 2021 or 2022 and the amount withheld for federal income taxes; |
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| 40 | 40 | | and |
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| 41 | 41 | | (C) criteria for evaluating grant applications. |
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| 42 | 42 | | (d) Not later than December 1, 2024, the department shall |
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| 43 | 43 | | report to the governor and the legislature on the results and |
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| 44 | 44 | | performance of the grant program. |
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| 45 | 45 | | (e) This section expires January 1, 2025. |
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| 46 | 46 | | SECTION 2. This Act takes effect immediately if it receives |
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| 47 | 47 | | a vote of two-thirds of all the members elected to each house, as |
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| 48 | 48 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 49 | 49 | | Act does not receive the vote necessary for immediate effect, this |
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| 50 | 50 | | Act takes effect September 1, 2023. |
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