SRC-SLL S.B. 1263 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1263
By: Ellis
Health & Human Services
4-7-97
As Filed


DIGEST 

Currently, the earned income tax credit (EITC) is a federal tax credit for
working families who fall within certain income guidelines.  To claim the
EITC, eligible families must file appropriate forms. The vast majority of
families claiming the refund do so when they file their federal income tax
forms.  According to the Texas Comptroller of Public Accounts, while the
number of Texans claiming the EITC is rising, each year an unknown
percentage of working families who qualify for the refunds do not
participate because they are not aware of the program.  This bill requires
workforce development centers and the Texas Workforce Commission to
provide information and assistance to individuals regarding the earned
income tax credit. 

PURPOSE

As proposed, S.B. 1263 requires workforce development centers and the
Texas Workforce Commission to provide information and assistance to
individuals regarding the earned income tax credit. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 2308G, Government Code, by adding Section
2308.314, as follows: 

Sec.  2308.314.  TAX ASSISTANCE.  Requires a workforce development center
(center) to provide to individuals who  participate in a workforce
development program information on the federal earned income credit for
working families.   Requires the center to assist participants in
preparing and filing federal income tax forms to ensure that a participant
who is eligible to receive the tax credit obtains the tax credit.
Requires a center to work in conjunction with the Internal Revenue Service
to make the center a volunteer income tax assistance site during the two
months preceding the date federal income taxes are due. Requires certain
employers to provide information on the federal earned income tax credit
to certain employees and assist those employees in preparing and filing
federal income tax forms to ensure the employees receive the tax credit if
the employees are eligible to receive the tax credit.  Defines "welfare
recipient" and "work supplementation program." 

SECTION 2. Amends Chapter 301D, Labor Code by adding Section 301.067, as
follows: 

Sec.  301.067.  TAX ASSISTANCE; INFORMATION ON EARNED INCOME TAX CREDIT.
Requires the Texas Workforce Commission (commission) to work in
conjunction with the Internal Revenue Service to make certain offices of
the commission volunteer income tax assistance sites during the two months
preceding the date federal income taxes are due.  Requires the commission,
in conjunction with the comptroller's office, to use existing resources to
distribute information and educational materials on the federal earned
income tax credit provided by the comptroller to local workforce
development boards and workforce assistance to persons who participate in
workforce development programs. 

SECTION 3. Emergency clause.
   Effective date: upon passage.