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


Senate Research CenterC.S.S.B. 1263
By: Ellis
Health & Human Services
4-10-97
Committee Report (Substituted)


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, C.S.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 the Texas Workforce Commission
(commission) to provide to individuals who  participate in a workforce
development program information on the federal earned income credit for
working families.   Authorizes the commission 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.
Authorizes the commission to fulfill its duties under this section by
taking certain actions.  Requires a workforce development center (center)
to provide information on the federal earned income tax credit to an
employer who hires a welfare recipient under a wage supplementation
program.  Authorizes the commission to provide information to any other
person who uses services provided through the center.  Defines "work
supplementation program" and "welfare recipient." 

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. Authorizes the commission to provide the
information to any other person who uses the services provided through the
commission. 
 
SECTION 3. Emergency clause.
  Effective date: upon passage.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 2308.314(a), Government Code, to strike "center" and
substitute "commission;" incorporate Subsection (b); and to authorize the
center to use specially trained staff or volunteers to assist in preparing
and filing federal income tax forms. 

Adds Section 2308.314(b), Government Code, regarding an employer who hires
a welfare recipient. 

Adds Section 2308.314(c), Government Code, regarding the distribution of
information to individuals who use the services provided by the
commission.  Makes a nonsubstantive change.  Deletes proposed Subsection
(c). 

Amends Section 2308.314(d), Government Code, to make a nonsubstantive
change. 

SECTION 2.

Adds Section 301.067(c), Labor Code, to make a conforming change.