HF 2990

as introduced - 89th Legislature (2015 - 2016) Posted on 04/07/2016 04:17pm

A bill for an act
relating to state government; creating and appropriating money for a tax time
savings grant program; increasing existing appropriation for the taxpayer
assistance grants program; proposing coding for new law in Minnesota Statutes,
chapter 270C.

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

Section 1.

new text begin [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Financial capability services" means any of the following:
new text end

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

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

new text begin (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;
new text end

new text begin (4) assistance with obtaining and reviewing a banking history report;
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new text begin (5) financial coaching, or referral to financial coaching services, as provided in
section 256E.35, subdivision 4a;
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new text begin (6) National Foundation for Credit Counseling certified consumer credit and debt
counseling or referral to these services;
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new text begin (7) enrollment in a matched or incentivized savings program, including the provision
of matching or incentive funds;
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new text begin (8) assistance with purchasing federal retirement savings bonds, as described in
Code of Federal Regulations, title 31, part 347; or
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new text begin (9) assistance with purchasing a Series I United States Savings Bond with all or
part of a tax refund.
new text end

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

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

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

new text begin Subd. 2. new text end

new text begin Creation. new text end

new text begin The commissioner of revenue shall establish a tax time
savings grant program to make grants to one or more nonprofit organizations to fund the
integration of financial capability services into the delivery of taxpayer assistance services
funded by grants under section 270C.21.
new text end

new text begin Subd. 3. new text end

new text begin Qualified applicant. new text end

new text begin To be eligible to receive a grant under the tax time
savings grant program, an applicant must:
new text end

new text begin (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
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new text begin (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:
new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Conflict of interest. new text end

new text begin (a) No applicant may receive direct compensation
from a bank, credit union, other financial services provider, or vendor in exchange for the
applicant offering to program participants the products or services of that bank, credit
union, other financial services provider, or vendor.
new text end

new text begin (b) No applicant may receive funding from a bank, credit union, other financial
services provider, or vendor that is contingent on the applicant offering products or
services of that bank, credit union, other financial services provider, or vendor to program
participants.
new text end

new text begin (c) An applicant may receive funding from a bank, credit union, 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, other financial services provider,
or vendor to program participants.
new text end

new text begin Subd. 5. new text end

new text begin Permitted use of grant funds. new text end

new text begin (a) A grant recipient may use grant funds
to dedicate a staff or volunteer position to coordinate financial capability services at a
VITA or TCE site and to offer VITA or TCE program participants free assistance with the
initiation through completion of:
new text end

new text begin (1) opening a savings and a transactional account that meet the Federal Deposit
Insurance Corporation's model safe accounts template standards;
new text end

new text begin (2) depositing all or part of a tax refund into a savings or transactional account; and
new text end

new text begin (3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
new text end

new text begin (b) A grant recipient who offers all of the financial capability services enumerated
in paragraph (a) may also use grant funds to provide one or more additional financial
capability services to VITA or TCE program participants at no cost to the participant.
new text end

Sec. 2. new text begin TAX TIME SAVINGS GRANT PROGRAM APPROPRIATION.
new text end

new text begin (a) $400,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of revenue to make grants under the tax time savings grant program under
Minnesota Statutes, section 270C.22. Of this amount, up to five percent may be used for
the administration of the tax time savings grant program.
new text end

new text begin (b) The base funding for the grant program authorized under paragraph (a) is
$400,000 each year.
new text end

Sec. 3. new text begin TAXPAYER ASSISTANCE GRANTS APPROPRIATION.
new text end

new text begin (a) $400,000 is appropriated in fiscal year 2017 from the general fund to the
commissioner of revenue for the provision of taxpayer assistance grants under Minnesota
Statutes, section 270C.21, in addition to the current base funding for the program. Of the
amount appropriated under this paragraph and the current base funding for the provision
of taxpayer assistance grants, up to five percent may be used for the administration of the
taxpayer assistance grants program.
new text end

new text begin (b) After fiscal year 2017, the base funding for the program under paragraph (a) is
$800,000 each year.
new text end