By: Frank H.B. No. 3905       A BILL TO BE ENTITLED   AN ACT   relating to the creation of a program for assisting certain   recipients in achieving self-sufficiency.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 2, Human Resources Code, Subtitle C, is   amended by adding Chapter 37 to read as follows:   CHAPTER 37. TEXAS FAMILY ASSISTANCE PROGRAM          Sec. 37.001.  PURPOSES. The purpose of the Texas Family   Assistance Program is to assist families from low-income households   to achieve self-sufficiency.          Sec. 37.002.  DEFINITIONS. In this subchapter:                (1)  "Account" means a Texas Family Assistance Program   electronic account established under the program.                (2)  "Family service organization" means an   organization performing the powers and duties of a certified family   service organization under Section 37.014.                (3)  "Family" means individuals residing in the same   household, with at least one parent or guardian and one child under   the age of twenty-one years.                (4)  "Family service provider" means an entity that   provides approved services according to Section 37.015.                (5)  "Program" means the Texas Family Assistance   Program established under this subchapter.                (6)  "Program participant" means a family enrolled in   the program.                (7)  "Grant" means the amount of money granted to the   program participant under this subchapter.                (8)  "State premium tax liability" has the meaning   assigned by Section 231.001(6), Insurance Code.                (9)  "Self-sufficiency" means being employed in a   position that pays a sufficient wage, having financial savings in   an amount that is equal to at least $1,000 per member of a family's   household, and maintaining a debt-to-income ratio that does not   exceed 43 percent.          Sec. 37.003.  ESTABLISHMENT OF PROGRAM. (a)  The   comptroller shall establish a Texas Family Assistance Program to   provide funding for approved expenses of families who are admitted   into the program under Section 37.006(a).          Sec. 37.004.  TEXAS FAMILY ASSISTANCE PROGRAM FUND. (a)  The   Texas Family Assistance Program fund shall be established and   administered by the comptroller.          (b)  The fund is composed of:                (1)  general revenue transferred to the fund;                (2)  money appropriated to the fund;                (3)  gifts, grants, and donations received under   Section 37.005;                (4)  contributions to the Texas Family Assistance   Program fund for which an entity receives from the Comptroller   preliminary approval or final award of a credit against the state   premium tax liability under Chapter 231, Insurance Code; and                (5)  any other money available for purposes of the   program.          (c)  A payment under the program may not be financed using   federal funds.          (d)  The comptroller shall present to the legislature an   estimate of the amount of money required for the purposes of this   section. The legislature shall appropriate amounts sufficient to   implement the Texas Family Assistance Program fund.          Sec. 37.005.  GIFTS, GRANTS, AND DONATIONS. The comptroller   may solicit and accept gifts, grants, and donations from any public   or private source for any expenses related to the administration of   the program, including the initial implementation of the program.          Sec. 37.006.  ELIGIBLE FAMILY. (a)  To be eligible to   participate in the program a family must be a part of a household   with a total annual income that is at or below 200 percent of the   federal poverty level.          (b)  A family who is admitted into the program may   participate in the program until:                (1)  the youngest child's twenty-first birthday;                (2)  the family is declared ineligible for the program   by the comptroller under Section 37.018; or                (3)  the family reaches self-sufficiency.          Sec. 37.007.  APPROVED EXPENSES. (a)  The Health and Human   Services Commission shall establish rules regarding the approved   expenses, administration, procedures and implementation of the   Texas Family Assistance Program.          Sec. 37.008.  AMOUNT OF ASSISTANCE AVAILABLE; FINANCING.     (a) The annual funding for each family who is admitted into the   program shall not exceed $10,000 per person.          (b)  In partnership with the commission, the comptroller   shall calculate the annual assistance amount under Subsection (a).          (c)  Any funds remaining in a program participant's account   at the end of a fiscal year are carried forward to the next fiscal   year unless another provision of this subchapter mandates the   closure of the account.          (d)  On the date on which a program participant is no longer   eligible to participate in the program under Section 37.006(b), the   program participant's account shall be closed and any remaining   funds shall be returned to the state for deposit in the Texas Family   Assistance Program fund.          Sec. 37.009.  ADMINISTRATION OF THE PROGRAM. (a) The   comptroller shall certify at least one and no more than three family   service organizations to administer the program.          (b)  The comptroller shall allocate to the program   participant's account the annual amount of a grant awarded to a   program participant in equal quarterly amounts on or before the 1st   day of August, November, February, and May.          (c)  Each quarter, the comptroller may deduct an amount from   the Texas Family Assistance Program Fund to cover the comptroller's   cost of administering the program. The annual amount deducted may   not exceed three percent of the fund for the fiscal year.          (d)  Each quarter, the comptroller shall disburse to the   family service organization an amount from the Texas Family   Assistance Program fund to cover the organization's cost of   administering the program. The annual amount disbursed between all   of the family service organizations may not exceed five percent of   the fund for the fiscal year.          (e)  The comptroller or family service organization(s) shall   publish on their website an application for family service   providers to apply and be verified to participate in the program.     If a family service provider satisfies the requirements under   Section 37.015, the comptroller or family service organization   shall verify the applicant and share the verified family service   provider's information with the family service organization in   accordance with Section 37.015(d).          Sec. 37.010.  ENROLLMENT IN PROGRAM. (a)  An eligible family   may apply to a family service organization to enroll in the program.          (b)  Family service organizations shall create an enrollment   form for the program and make the enrollment form readily available   to interested families through various sources, including the   organization's website. An enrollment form for the program may be   submitted to a family service organization electronically.          (c)  Family service organizations shall post on the   organization's website and provide to each family who submits an   enrollment form a publication that describes the operation of the   program, including:                (1)  expenses allowed under the program under Section   37.007;                (2)  expense reporting requirements established by the   family service organization;                (3)  a description of the responsibilities of program   participants, including those under Section 37.011; and                (4)  the duties of family service organizations under   this subchapter.          (d)  Family service organizations shall provide annually to   each program participant the information required under Subsection   (c). Information may be provided electronically.          Sec. 37.011.  PARTICIPATION IN PROGRAM. (a) A program   participant must agree to:                (1)  direct program funds only for allowed expenses;                (2)  notify their family service organization within 30   days if they are no longer eligible for the program.          (b)  The program participant shall provide their family   service organization any information needed to determine program   eligibility.          (c)  No member of the program participant's immediate family   or household may be hired to serve as their family service provider   under this program.          Sec. 37.012.  CERTIFICATION OF FAMILY SERVICE ORGANIZATION.   (a) An organization may apply to the comptroller for certification   to be a family service organization for the program during an   application period provided by the comptroller.          (b)  To be eligible for certification, the organization   must:                      (A)  have the ability to award grants to program   participants and pay verified family service providers;                      (B)  be exempt from federal tax under Section   501(a) of the Internal Revenue Code of 1986 by being recognized as   an exempt organization in Section 501(c)(3) of that code;                      (C)  be in good standing with the state; and                      (D)  be able to administer the program, including:                            (i)  accept, process, and track applications   for grants; and                            (ii)  award grants to families.          Sec. 37.013.  ALLOCATION OF MONEY DESIGNATED FOR GRANTS.   (a) Of the amount required to be allocated as provided by Section   37.008, the family service organization shall use:                (1)  at least 95 percent to award grants to families who   are admitted into the program; and                (2)  not more than five percent for fees for the   management of the program.          Sec. 37.014.  FAMILY SERVICE ORGANIZATION POWERS AND DUTIES.   (a) A family service organization shall create and publish on their   website an application form for families interested in enrolling in   the program. The form may be filled out and submitted   electronically.          (b)  As long as funds are available, a family service   organization shall admit into the program families who applied to   the program if the family service organization finds the family to   be eligible under Section 37.006.          (c)  Family service organizations shall award a grant to each   program participant in the amount as applicable by Section 37.008.          (d)  Family service organizations shall give first priority   for program participation to eligible families who received a grant   during the previous year.          (e)  Except as provided in subsection (d), family service   organizations shall give priority for program participation to   eligible families who demonstrate the greatest financial need.          (f)  The family service organizations shall post all   entities which the organization has been notified under Section   37.015 that are eligible to receive program funds. No family   service provider shall be preferred over any other family service   provider.          Sec. 37.015.  FAMILY SERVICE PROVIDER REQUIREMENTS. (a)   All family service providers must apply to and be verified by the   comptroller to be eligible to receive funds under the program. In   partnership with the Health and Human Services Commission, the   Comptroller shall establish rules regarding the family service   provider requirements and verification. If the family service   provider meets the requirements, the comptroller may not refuse to   verify that family service provider.          (b)  any family service providers that provide services or   materials that qualify as an approved expense under Section 37.007   shall present any necessary supporting documents concerning their   qualification to serve program participants.          (c)  The comptroller shall maintain, post on the   comptroller's website, and provide to the family service   organizations a list of all family service providers which have   sought to participate in the program and which the comptroller has   verified or found to be eligible under Section 37.015 to receive   program funds          (d)  A family service provider may not charge a family   participating in the program an amount greater than the standard   amount charged for that service by the provider.          (e)  A family service provider receiving program funds may   not in any manner rebate, refund, credit to, or share with a program   participant, or any person on behalf of a program participant, any   program funds paid or owed by the program participant to the family   service provider.          Sec. 37.016.  SERVICE PROVIDERS AUTONOMY. (a) A family   service provider that receives program funds is not an agent of the   state or federal government.          (b)  The program does not expand the regulatory authority of   the state to impose any additional regulation on an family service   provider except those reasonably necessary to maintain the program   as provided by this subchapter.          (c)  Family service providers may not be required to modify   their creed, practices, or operations to receive funds distributed   under the program.          (d)  In any proceeding challenging a rule adopted by a state   commission or officer under this subchapter, the commission or   officer has the burden of proof to establish that the rule:                (1)  is necessary to implement or maintain the program   as provided by this subchapter; and                (2)  does not impose an undue burden on a program   participant or a family service provider that receives or seeks to   receive funds distributed under the program.          Sec. 37.017.  RANDOM AUDITING. (a)  The comptroller may   contract with a private entity to randomly audit family service   organizations as necessary to ensure compliance with the   requirements of the program.          (b)  In auditing, the comptroller or private entity may   require that a program participant or family service organization   provide further information and documentation regarding any   payment from the Texas Family Assistance Program fund.          (c)  The private entity shall report to the comptroller any   violation of this subchapter or other relevant law found by the   entity during an audit conducted under this section.          (d)  A finding that program funds were used for an expense   not allowed under Section 37.007 does not affect the validity of any   payment made for an expense that is allowed under Section 37.007.          Sec. 37.018.  SUSPENSION OF ACCOUNT. (a)  If the comptroller   determines a program participant has failed to comply with   applicable law or a requirement of the program the comptroller or   the family service organization shall suspend the account of a   program participant.          (b)  On suspension of an account under Subsection (a), the   comptroller or family service organization shall notify the program   participant in writing that the account has been suspended and that   no further payments shall be made from the account. The   notification must specify the grounds for the suspension and state   that the program participant has 10 business days to respond and   take any corrective action required by the comptroller or family   service organization.          (c)  On the expiration of the 10-day period under Subsection   (b), the comptroller or family service organization shall:                (1)  order permanent closure of the suspended account   and declare the program participant ineligible for the program;                (2)  order temporary reinstatement of the account,   conditioned on the performance of a specified action by the program   participant; or                (3)  order full reinstatement of the account.          (d)  The comptroller or family service organization may   recover funds distributed under the program that were used for   expenses not allowed under Section 37.007 from the program   participant or the family service provider that received the funds   if the program participant's account is suspended or closed under   this section.          Sec. 37.019.  REFERRAL TO THE ATTORNEY GENERAL. (a)  If the   comptroller or family service organization obtains evidence of   fraudulent use of an account, the comptroller or family service   organization may refer the case to the attorney general for   investigation.          (b)  With the consent of the appropriate local county or   district attorney, the attorney general has concurrent   jurisdiction with the consenting local prosecutor to prosecute an   offense referred to the attorney general under Subsection (a).          Sec. 37.020.  TAX CREDIT ADMINISTRATION DUITIES. (a) The   comptroller shall give each donor who provides notice under Section   231.051(c), Insurance Code, a receipt for money contributed to the   organization that includes the name of the organization, the name   of the donor, the amount of the contribution, the information   required by Section 231.051(c), and any other information required   by the comptroller.          (i)  The comptroller shall disburse within two academic   years of receipt contributions to the Texas Family Assistance   Program fund for which an entity receives from the comptroller   preliminary approval or final award of a credit against the state   premium tax liability under Chapter 231, Insurance Code.          Sec. 37.021.  RULES; PROCEDURES. (a)  The comptroller shall   adopt rules and procedures only as necessary to implement,   administer, and enforce this chapter.          (b)  A rule adopted under Subsection (a) is binding on an   organization that applies for certification as an family service   organization, an entity that applies for a credit, and a state or   local governmental entity, including a political subdivision, as   necessary to implement, administer, and enforce this chapter.          SECTION 2.  Subtitle B, Title 3, Insurance Code, is amended   by adding Chapter 231 to read as follows:   CHAPTER 231. CREDIT AGAINST PREMIUM TAXES FOR CONTRIBUTIONS TO   TEXAS FAMILY ASSISTANCE PROGRAM FUND   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 231.001.  DEFINITIONS. In this chapter:                (1)  "Family service organization" has the meaning   assigned by Sec. 37.002(2), Human Resources Code.                (2)  "Family service provider" has the meaning assigned   by Sec. 37.002(4), Human Resources Code.                (3)  "Program" has the meaning assigned by Sec.   37.002(5), Human Resources Code.                (4)  "Program participant" has the meaning assigned by   Sec. 37.002(6), Human Resources Code.                (5)  "Grant" has the meaning assigned by Sec.   37.002(7), Human Resources Code.                (6)  "State premium tax liability" means any liability   incurred by an entity under Chapters 221 through 226.          Sec. 231.002.  RULES; PROCEDURES. (a) The comptroller shall   adopt rules and procedures only as necessary to implement,   administer, and enforce this chapter.          (b)  A rule adopted under Subsection (a) is binding on an   organization that applies for certification as a family service   organization under Sec. 37.012, Human Resources Code, an entity   that applies for a credit, and a state or local governmental entity,   including a political subdivision, as necessary to implement,   administer, and enforce this chapter.   SUBCHAPTER B. CREDIT          Sec. 231.051.  CREDIT FOR CONTRIBUTIONS. (a) An entity may   apply for a credit under this chapter only for money contributed to   the comptroller and designated for the Texas Family Assistance   Program fund for use by program participants.          (b)  An entity may not apply for a credit under this chapter   for a contribution made to the comptroller if:                (1)  the entity requires that the contribution benefit   a particular program participant or family service provider; or                (2)  the contribution is designated to provide a grant   for an entity employee or for a spouse or dependent of an entity   employee.          (c)  The comptroller shall indicate on the receipt required   under Sec. 37.020, Human Resources Code, that the entity made the   notification under this subsection.          Sec. 231.052.  CREDIT. An entity may apply for a credit   against the entity's state premium tax liability in the amount and   under the conditions and limitations provided by this chapter. The   comptroller shall award credits as provided by Section 231.055.          Sec. 231.053.  AMOUNTS; LIMITATION ON TOTAL CREDITS. (a)   Subject to Subsections (b) and (c), the amount of an entity's credit   is equal to the lesser of the amount of the qualifying contributions   made to the comptroller for the program or 50 percent of the   entity's state premium tax liability.          (b)  Subject to Subsection (c), the total amount of tax   credits that may be awarded under this chapter for a state fiscal   year may not exceed $10 million.          (c)  In the 2022 state fiscal year and each state fiscal year   thereafter, the tax credit cap amount is the tax credit cap amount   in the prior state fiscal year. However, when the total annual tax   credits awarded by the comptroller under Section 231.055(c) for the   prior state fiscal year is equal to or greater than 90 percent of   the tax credit cap amount applicable to that state fiscal year, the   tax credit cap amount shall increase by 25 percent. The comptroller   shall provide notice on the comptroller's website when the tax   credit cap amount is increased pursuant to this subparagraph.          (d)  The comptroller by rule shall prescribe procedures by   which the comptroller may allocate credits under this chapter.  The   procedures must provide that credits are first allocated to   entities that were granted preliminary approval for a credit under   Section 231.054 in the amount that was preliminarily approved. The   procedures must provide that any remaining credits are allocated on   a first-come, first-served basis, based on the date the   contribution was initially made.          (e)  The comptroller may require an entity to notify the   comptroller of the amount the entity intends or expects to apply for   under this chapter before the beginning of a state fiscal year or at   any other time required by the comptroller.          Sec. 231.054.  PRELIMINARY APPROVAL FOR CREDIT. (a)  Before   making a contribution to the comptroller, an entity may apply to the   comptroller for preliminary approval of a credit under this chapter   for the contribution.          (b)  An entity must apply for preliminary approval of a   credit on a form provided by the comptroller that includes the   amount the entity expects to contribute and any other information   required by the comptroller.          (c)  The comptroller shall grant preliminary approval for   credits under this chapter on a first-come, first-served basis,   based on the date the application for preliminary approval is   received by the comptroller.          (d)  The comptroller shall grant preliminary approval for a   credit under this chapter if the total amount of credits   preliminarily approved under this chapter does not exceed the   amount provided by Section 231.053(b).          (e)  A credit for which the comptroller grants preliminary   approval remains subject to the limitation under Section 231.053(a)   and any other limitations prescribed by this chapter.          Sec. 231.055.  APPLICATION FOR CREDIT. (a)  An entity must   apply for a credit under this chapter on or with the tax return for   the taxable year and submit with the application each receipt   issued under Sec. 37.020 Human Resources Code, that includes the   information required by Section 231.051(c).          (b)  The comptroller shall adopt a form for the application   for the credit. An entity must use this form in applying for the   credit.          (c)  The comptroller may award a credit to an entity that   applies for the credit under Subsection (a) if the entity is   eligible for the credit and the credit is available under Section   231.053(b). The comptroller has broad discretion in determining   whether to grant or deny an application for a credit.          (d)  The comptroller shall notify an entity in writing of the   comptroller's decision to grant or deny the application under   Subsection (a). If the comptroller denies an entity's application,   the comptroller shall include in the notice of denial the reasons   for the comptroller's decision.          (e)  If the comptroller denies an entity's application under   Subsection (a), the entity may request in writing a reconsideration   of the application not later than the 10th day after the date of the   notice under Subsection (d). If the entity does not request a   reconsideration of the application on or before that date, the   comptroller's decision is final.          (f)  An entity that requests a reconsideration under   Subsection (e) may submit to the comptroller not later than the 30th   day after the date the request for reconsideration is submitted   additional information and documents to support the entity's   request for reconsideration.          (g)  The comptroller's reconsideration of an application   under this section is not a contested case under Chapter 2001,   Government Code.  The comptroller's decision on a request for   reconsideration of an application is final and is not appealable.          (h)  This section does not create a cause of action to   contest a decision of the comptroller to deny an application for a   credit under this chapter.          Sec. 231.056.  ASSIGNMENT PROHIBITED; EXCEPTION. An entity   may not convey, assign, or transfer the credit allowed under this   chapter to another entity unless all of the assets of the entity are   conveyed, assigned, or transferred in the same transaction.          Sec. 231.057.  NOTICE OF AVAILABILITY OF CREDIT. The   comptroller shall provide notice of the availability of the credit   under this chapter on the comptroller's website, in the   instructions for insurance premium tax report forms, and in any   notice sent to an entity concerning the requirement to file an   insurance premium tax report.          SECTION 3.  Not later than 45 days after the effective date   of this Act the comptroller of public accounts and the commission   shall adopt rules necessary to implement the Texas Family   Assistance Program established under Chapter 37, Human Resources   Code, as added by this Act.          SECTION 4.  (a) If some or all of the provisions of this Act   are ever temporarily or permanently restrained or enjoined by   judicial order, all other provisions of the Act shall be enforced as   though the restrained or enjoined provisions had not been adopted;   provided, however, that whenever the temporary or permanent   restraining order or injunction is stayed or dissolved, or   otherwise ceases to have effect, the provisions shall have full   force and effect.          (b)  It is the intent of the legislature that every   provision, section, subsection, sentence, clause, phrase, or word   in this Act, and every application of the provisions in this Act,   are severable from each other. If any application of any provision   in this Act to any person, group of persons, or circumstances is   found by any court to be invalid, the remaining applications of that   provision to all other persons and circumstances shall be severed   and may not be affected. All constitutionally valid applications of   this Act shall be severed from any applications that a court finds   to be invalid, leaving the valid applications in force, because it   is the legislature's intent and priority that the valid   applications be allowed to stand alone. Even if a reviewing court   finds a provision of this Act to impose an undue burden in a large or   substantial fraction of relevant cases, the applications that do   not present an undue burden shall be severed from the remaining   provisions and shall remain in force, and shall be treated as if the   legislature had enacted a statute limited to the persons, group of   persons, or circumstances for which the statute's application does   not present an undue burden. The legislature further declares that   it would have passed this Act, and each provision, section,   subsection, sentence, clause, phrase, or word, and all   constitutional applications of this Act, irrespective of the fact   that any provision, section, subsection, sentence, clause, phrase,   or word, or applications of this Act, were to be declared   unconstitutional or to represent an undue burden.          (c)  If any provision of this Act is found by any court to be   unconstitutionally vague, then the applications of that provision   that do not present constitutional vagueness problems shall be   severed and remain in force.          SECTION 5.  Except as otherwise provided by this Act:                (1)  this Act takes effect immediately if it receives a   vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution; and                (2)  if this Act does not receive the vote necessary for   immediate effect, this Act takes effect September 1, 2021.          SECTION 6.  An entity may apply for a credit under Chapter   231, Insurance Code, as added by this Act, only for an expenditure   made on or after September 1, 2020.          SECTION 7.  Chapter 231, Insurance Code, as added by this   Act, applies only to a report originally due on or after September   1, 2020.