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Minnesota Legislature

Office of the Revisor of Statutes

SF 1925

as introduced - 91st Legislature (2019 - 2020) Posted on 02/28/2019 03:38pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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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.

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;
new text end

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

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

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

new text begin (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
new text end

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 Permitted use of taxpayer assistance grants. new text end

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

new text begin (1) new text endto coordinate, facilitate, encourage, and aid in the provision of taxpayer assistance
servicesdeleted text begin,deleted text endnew text begin; and
new text end

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

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

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 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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin Subd. 5. new text end

new text begin Public notice. new text end

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.

new text begin Subd. 6. new text end

new text begin Technical assistance. new text end

new text begin 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:
new text end

new text begin (1) tax site development and management training;
new text end

new text begin (2) VITA and TCE site coordinator training;
new text end

new text begin (3) individual tax preparer and reviewer training on tax law;
new text end

new text begin (4) support in developing volunteer training;
new text end

new text begin (5) tax return preparation software and e-file administration training; and
new text end

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

new text begin Subd. 7. new text end

new text begin Reporting. new text end

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

Sec. 2. new text beginTAXPAYER ASSISTANCE GRANTS APPROPRIATION.
new text end

new text begin $400,000 in fiscal year 2020 and $400,000 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.
new text end