SF 1900

as introduced - 91st Legislature (2019 - 2020) Posted on 02/28/2019 03:26pm

A bill for an act
relating to state government; creating and appropriating money for a grant program
for financial capability services integrated with taxpayer assistance services;
requiring reports; increasing existing appropriation for the taxpayer assistance
grants program; amending Minnesota Statutes 2018, section 270C.21.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 270C.21, is amended to read:

270C.21 TAXPAYER ASSISTANCE GRANTS.

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Financial capability services" means any of the following:

(1) assistance with opening a savings or transactional account that meets the Federal
Deposit Insurance Corporation's model safe accounts template standards;

(2) assistance with depositing all or part of a tax refund into a savings or transactional
account;

(3) assistance with obtaining and reviewing a consumer report or credit score, as those
terms are defined in United States Code, title 15, section 1681a;

(4) assistance with obtaining and reviewing a banking history report;

(5) financial coaching, or referral to financial coaching services, as provided in section
256E.35, subdivision 4a;

(6) National Foundation for Credit Counseling certified consumer credit and debt
counseling or referral to these services;

(7) enrollment in a matched or incentivized savings program, including the provision
of matching or incentive funds;

(8) referral to a certified financial planner, registered investment adviser, licensed
insurance producer or agent, or a registered securities broker-dealer representative for private
sector retirement options; or

(9) assistance with purchasing a Series I United States Savings Bond with all or part of
a tax refund.

(c) "Transactional account" means a traditional demand deposit account or a general
purpose reloadable prepaid card offered by a bank or credit union.

(d) "TCE" means the Tax Counseling for the Elderly program established by the Internal
Revenue Service.

(e) "VITA" means the Volunteer Income Tax Assistance program established by the
Internal Revenue Service.

Subd. 2.

Permitted use of taxpayer assistance grants.

When the commissioner awards
grants to nonprofit organizations (a) The commissioner may award grants to nonprofit
organizations for either or both of the following purposes:

(1) to coordinate, facilitate, encourage, and aid in the provision of taxpayer assistance
services,; and

(2) to provide financial capability services integrated with the delivery of taxpayer
assistance services funded under clause (1).

(b) Grants under paragraph (a), clause (2), may only be made to qualified applicants, as
defined under subdivision 3.

Subd. 3.

Qualified applicant.

To be eligible to receive a grant under subdivision 2,
clause (2), an applicant must:

(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered with
the Internal Revenue Service as part of either the VITA or TCE programs; and

(2) commit to dedicate at least one staff or volunteer position to coordinate financial
capability services at a VITA or TCE program site and to offer VITA or TCE program
participants free assistance with the initiation through completion of:

(i) opening a savings and a transactional account that meet the Federal Deposit Insurance
Corporation's model safe accounts template standards;

(ii) depositing all or part of a tax refund into a savings or transactional account; and

(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.

Subd. 4.

Conflict of interest.

(a) No applicant for a grant under subdivision 2, clause
(2), may receive direct compensation from a bank, credit union, or other financial services
provider or vendor in exchange for the applicant offering to program participants the products
or services of that bank, credit union, or other financial services provider or vendor.

(b) No applicant for a grant under subdivision 2, clause (2), may receive funding from
a bank, credit union, or other financial services provider or vendor that is contingent on the
applicant offering products or services of that bank, credit union, or other financial services
provider or vendor to program participants.

(c) An applicant for a grant under subdivision 2, clause (2), may receive funding from
a bank, credit union, or other financial services provider or vendor that is not in exchange
for or contingent upon the applicant offering products or services of that bank, credit union,
or other financial services provider or vendor to program participants.

Subd. 5.

Public notice.

The commissioner must provide public notice of the grants in
a timely manner so that the grant process is completed and grants are awarded by October
1, in order for recipient organizations to adequately plan expenditures for the filing season.
At the time the commissioner provides public notice, the commissioner must also notify
nonprofit organizations that received grants in the previous biennium.

Subd. 6.

Technical assistance.

Upon request, the commissioner shall provide technical
assistance to an organization that meets the requirement in subdivision 3, clause (1). The
technical assistance may include, but is not limited to:

(1) tax site development and management training;

(2) VITA and TCE site coordinator training;

(3) individual tax preparer and reviewer training on tax law;

(4) support in developing volunteer training;

(5) tax return preparation software and e-file administration training; and

(6) one-on-one support by phone and e-mail for problem solving at tax site programs.

Subd. 7.

Reporting.

A recipient of a grant under this section must report to the
commissioner on the recipient's use of the grant money.

Sec. 2. TAXPAYER ASSISTANCE GRANTS APPROPRIATION.

$200,000 in fiscal year 2020 and $200,000 in fiscal year 2021 are appropriated from the
general fund to the commissioner of revenue for grants under Minnesota Statutes, section
270C.21, subdivision 2, in addition to the current base funding for the program. Of the
amount appropriated under this paragraph and the current base funding for taxpayer assistance
grants, up to five percent may be used for the administration of the taxpayer assistance
grants program.