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.