BILL ANALYSIS


                                                         S.B. 255
                                                       By: Rosson
                                                          Finance
                                                          03-3-95
                                     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.  Growth patterns of the state suggest that at least 1.8
million families will claim credits in 1995 totalling $2.3 billion,
money that will be spent in Texas.

Many more Texas families qualify for the refunds but do not
participate in EITC because they are unaware of the program.  The
Comptroller's Office will conduct its fourth annual EITC public
information campaign.  This statewide, bilingual multimedia
awareness program generated thousands of requests for information
in 1994.

PURPOSE

As proposed, 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 403, Government Code, by adding Section
403.0111, as follows:

     Sec.  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.  Requires the agencies to cooperate with
       the comptroller in information distribution.
       
       SECTION 2.  Effective date: September 1, 1995.

SECTION 3.  Emergency clause.