BILL ANALYSIS S.B. 255 By: Rosson (Van de Putte) May 11, 1995 Committee Report (Unamended) BACKGROUND The earned income tax credit (EITC) is a federal tax credit for working families who fall within certain income guidelines. In 1994, the Internal Revenue Service estimated that 1.5 million working Texas families would qualify for $1.6 billion in EITC refunds. State growth patterns suggest that at least 1.8 million families will claim credits in 1995, totaling $2.3 billion. More Texas' families qualify for the credits, but are unaware of the program. The comptroller's office will conduct its fourth annual EITC public information campaign. This statewide bilingual awareness program generated thousands of requests for information in 1994. PURPOSE S.B. 255 authorizes the comptroller's office to work in cooperation with other state agencies to distribute information concerning federal earned income tax credits. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 403, Government Code, by adding Section 403.0111 DISTRIBUTION OF FEDERAL TAX INFORMATION. (a) Authorizes the comptroller's office to lead in promoting awareness of federal earned income tax credits and to encourage other agencies to similarly promote federal tax credit for working families and other individuals who qualify. (b) Authorizes state agencies that distribute information to the public to use existing resources to distribute information to persons likely to qualify for federal earned income tax credits, and to cooperate with the comptroller in information distribution. SECTION 2. Effective Date: September 1, 1995. SECTION 3. Emergency Clause. SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on May 9, 1995. Representative Van de Putte explained the bill. By a record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee voted to report S.B. 255 to the House without amendment with the recommendation that it be sent to the Local & Consent Calendar, and that it do pass.