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A BILL TO BE ENTITLED
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AN ACT
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relating to a grant program for members of the Texas military forces |
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experiencing financial hardship caused by a tax withholding error. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 437, Government Code, is |
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amended by adding Section 437.233 to read as follows: |
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Sec. 437.233. GRANT PROGRAM FOR FINANCIAL HARDSHIP CAUSED |
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BY TAX WITHHOLDING ERROR. (a) The department shall establish and |
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administer a grant program to assist members of the Texas military |
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forces who experience financial hardship caused by a federal tax |
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withholding error in connection with the compensation paid to |
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members who served in Operation Lone Star in 2021 or 2022. |
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(b) A member of the Texas military forces is eligible for a |
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grant under this section if: |
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(1) the department erroneously withheld an |
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insufficient amount from the member's compensation for service in |
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Operation Lone Star in 2021 or 2022 to cover the federal income tax |
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imposed on that compensation; |
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(2) the member certifies in the grant application that |
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the member did not have actual knowledge of the withholding error; |
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and |
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(3) the member demonstrates that the withholding error |
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caused the member financial hardship. |
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(c) The department: |
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(1) may establish additional eligibility criteria for |
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grant applicants; and |
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(2) shall establish: |
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(A) grant application procedures; |
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(B) guidelines relating to grant amounts that |
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ensure that a grant to a member does not exceed the difference |
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between the amount the member owed in federal income taxes on |
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compensation the member received for service in Operation Lone Star |
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in 2021 or 2022 and the amount withheld for federal income taxes; |
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and |
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(C) criteria for evaluating grant applications. |
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(d) Not later than December 1, 2024, the department shall |
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report to the governor and the legislature on the results and |
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performance of the grant program. |
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(e) This section expires January 1, 2025. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |