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A BILL TO BE ENTITLED
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AN ACT
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relating to expanding the capacity of volunteer income tax |
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assistance programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2306, Government Code, is amended by |
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adding Subchapter NN to read as follows: |
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SUBCHAPTER NN. VOLUNTEER INCOME TAX ASSISTANCE (VITA) GRANT PROGRAM |
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Sec. 2306.1091. DEFINITIONS. In this subchapter: |
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(1) "Federal income tax filing season" means a period |
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of each year that begins January 2 and ends April 30. |
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(2) "Free File program" means the free federal income |
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tax preparation and electronic filing program for eligible |
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taxpayers that is developed through a partnership between the |
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Internal Revenue Service and private tax software companies. |
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(3) "Grant program" means the volunteer income tax |
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assistance grant program established under this subchapter. |
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(4) "Volunteer income tax assistance program" means a |
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program operated through a collaboration of the Internal Revenue |
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Service and another entity under which taxpayers eligible for the |
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Free File program receive free assistance in preparing federal |
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income tax returns. |
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Sec. 2306.1092. ESTABLISHMENT OF VOLUNTEER INCOME TAX |
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ASSISTANCE (VITA) GRANT PROGRAM. The department shall establish a |
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volunteer income tax assistance grant program through which the |
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department will award grants each year to support the |
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implementation and operation of volunteer income tax assistance |
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programs in the subsequent federal income tax filing season. |
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Sec. 2306.1093. ADMINISTRATION OF GRANT PROGRAM. In the |
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year preceding the federal income tax filing season in which grant |
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recipients will operate volunteer income tax assistance programs, |
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the department shall: |
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(1) issue a request for proposals to participate in |
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the grant program on or before June 30; |
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(2) select and notify grant recipients on or before |
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September 1; and |
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(3) distribute grant program money on or before |
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November 1. |
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Sec. 2306.1094. ELIGIBILITY. To be eligible for a grant, an |
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applicant must be located in this state and be: |
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(1) a nonprofit educational institution, a nonprofit |
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faith-based or community-based organization, or any other |
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nonprofit organization; |
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(2) a political subdivision of this state, including a |
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county or municipality; or |
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(3) a regional or local coalition that has at least one |
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lead organization that meets the criteria specified by Subdivision |
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(1) or (2). |
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Sec. 2306.1095. APPLICATION. An entity that meets the |
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eligibility requirements specified by Section 2306.1094 may apply |
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for a grant by submitting a written application to the department on |
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a form prescribed by the board. The application must include: |
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(1) proof of designation by the Internal Revenue |
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Service as a volunteer income tax assistance program sponsor; |
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(2) the applicant's Electronic Filing Identification |
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Number assigned by the Internal Revenue Service; |
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(3) a letter of support from the applicant's regional |
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Internal Revenue Service Stakeholder, Partnerships, Education, and |
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Communication representative; |
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(4) a statement that the applicant agrees to use grant |
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money distributed under this subchapter primarily to serve |
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taxpayers eligible for the Free File program; and |
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(5) an agreement to operate a volunteer income tax |
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assistance program using a mixture of funding the total operating |
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funds of which for any year consist of not more than 65 percent |
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grant program money distributed under this subchapter. |
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Sec. 2306.1096. ADDITIONAL CONSIDERATIONS IN AWARDING |
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GRANTS. In determining whether to award a grant to an applicant who |
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otherwise meets the eligibility requirements specified by this |
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subchapter, the department may give special consideration to |
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applicants who will: |
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(1) serve areas that have historically experienced: |
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(A) low earned income tax credit claim rates; |
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(B) high usage rates of refund anticipation loans |
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or similar products; or |
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(C) low participation rates, as compared to other |
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areas, in free tax preparation programs by families eligible for |
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the earned income tax credit; |
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(2) assist persons filing federal income tax returns |
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in attaining financial stability; or |
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(3) assist persons filing federal income tax returns |
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with enrolling in or contributing to college savings plans or |
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funds. |
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Sec. 2306.1097. LIMITATION. A single grant recipient may |
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not receive more than 25 percent of the total amount of grant |
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program money distributed in one year. |
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Sec. 2306.1098. USE OF GRANT PROGRAM MONEY. Grant program |
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money may be used only to pay: |
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(1) the wages of volunteer income tax assistance |
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program staff; |
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(2) the costs of operating the volunteer income tax |
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assistance program, including rent, computers, furniture, office |
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supplies, telephone service, and Internet service; and |
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(3) the costs of recruiting and training volunteers. |
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Sec. 2306.1099. PERFORMANCE AGREEMENT. Each grant |
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recipient shall enter into a performance agreement with the |
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department detailing the department's expectations for the use of |
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the grant program money and the work to be performed by the |
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recipient. |
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Sec. 2306.1100. PERFORMANCE REPORT. Each grant recipient |
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shall submit a performance report to the department not later than |
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May 30 of the year in which the recipient operates a volunteer |
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income tax assistance program using grant program money. The |
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performance report must include detailed information about: |
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(1) each expenditure of grant program money made by |
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the recipient; and |
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(2) the amount of earned income tax credit funds |
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generated directly by the volunteer income tax assistance program |
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operated by the recipient using grant program money. |
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Sec. 2306.1101. GRANT PROGRAM FUNDING. (a) To the extent |
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authorized by federal law and subject to appropriation for this |
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purpose, the department shall distribute as grants authorized by |
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this subchapter at least 0.25 percent of the funds received by this |
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state during each state fiscal biennium under the federal Temporary |
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Assistance for Needy Families block grant. |
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(b) The comptroller shall transfer funds received under the |
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federal Temporary Assistance for Needy Families block grant from |
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the Health and Human Services Commission to the department as |
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necessary to implement this section. |
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(c) In addition to funds described by Subsection (a), the |
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department shall distribute as grants authorized by this subchapter |
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other money that is: |
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(1) appropriated for that purpose; or |
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(2) designated by the department and otherwise |
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available for that purpose. |
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Sec. 2306.1102. RULES. The board shall adopt rules as |
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necessary to implement this subchapter. |
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SECTION 2. (a) In this section, "grant program" means the |
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volunteer income tax assistance grant program established under |
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Subchapter NN, Chapter 2306, Government Code, as added by this Act. |
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(b) Notwithstanding Section 2306.1093, Government Code, as |
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added by this Act, for grants awarded under the grant program in |
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2009 that will be used to operate volunteer income tax assistance |
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programs during 2010, the Texas Department of Housing and Community |
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Affairs shall: |
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(1) issue a request for proposals to participate in |
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the grant program on or before September 15, 2009; |
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(2) select and notify grant recipients on or before |
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November 15, 2009; and |
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(3) distribute grant money on or before December 15, |
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2009. |
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SECTION 3. If before implementing any provision of this Act |
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a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |