II
111th CONGRESS
2d Session
S. 3551
IN THE SENATE OF THE UNITED STATES
June 30, 2010
Mr. Brown of Massachusetts introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To provide a fully offset extension of emergency unemployment insurance assistance, enhanced Medicaid FMAP reimbursements, and summer employment for youth, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the Fiscally Responsible Relief for
Our States Act of 2010
.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Unemployment Insurance, Medicaid FMAP, and Summer Jobs
Subtitle A—Unemployment insurance and other assistance
Sec. 101. Extension of unemployment insurance provisions.
Sec. 102. Coordination of emergency unemployment compensation with regular compensation.
Subtitle B—Medicaid FMAP and Summer Jobs
Sec. 111. Extension of ARRA increase in FMAP.
Sec. 112. Summer employment for youth.
TITLE II—Offsets
Sec. 201. Use of stimulus funds to offset spending.
Sec. 202. Sunset of temporary increase in benefits under the supplemental nutrition assistance program.
Sec. 203. Elimination of advance refundability of earned income credit.
Sec. 204. Treatment of certain drugs for computation of Medicaid AMP.
Sec. 205. Rollovers from elective deferral plans to Roth designated accounts.
Sec. 206. Participants in government section 457 plans allowed to treat elective deferrals as Roth contributions.
Sec. 207. Rescinding unspent Federal funds.
TITLE III—Budgetary provisions
Sec. 301. Determination of budgetary effects.
Unemployment Insurance, Medicaid FMAP, and Summer Jobs
Unemployment insurance and other assistance
Extension of unemployment insurance provisions
In general
Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended—
by striking June 2,
2010
each place it appears and inserting November 30,
2010
;
in
the heading for subsection (b)(2), by striking june 2, 2010
and
inserting november 30,
2010
; and
in subsection (b)(3), by striking
November 6, 2010
and inserting April 30,
2011
.
Section 2005 of the Assistance for Unemployed Workers and Struggling Families Act, as contained in Public Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), is amended—
by striking June 2,
2010
each place it appears and inserting December 1,
2010
; and
in subsection (c), by striking
November 6, 2010
and inserting May 1,
2011
.
Section 5 of the Unemployment
Compensation Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is
amended by striking November 6, 2010
and inserting April
30, 2011
.
Funding
Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended—
in subparagraph (D), by striking
and
at the end; and
by inserting after subparagraph (E) the following:
the amendments made by section 101(a)(1) of the Fiscally Responsible Relief for Our States Act of 2010; and
.
Conditions for receiving emergency unemployment compensation
Section 4001(d)(2) of the Supplemental
Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended,
in the matter preceding subparagraph (A), by inserting before shall
apply
the following: (including terms and conditions relating to
availability for work, active search for work, and refusal to accept
work)
.
Effective date
The amendments made by this section shall take effect as if included in the enactment of the Continuing Extension Act of 2010 (Public Law 111–157).
Coordination of emergency unemployment compensation with regular compensation
Certain individuals not ineligible by reason of new entitlement to regular benefits
Section 4002 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended by adding at the end the following:
Coordination of emergency unemployment compensation with regular compensation
If—
an individual has been determined to be entitled to emergency unemployment compensation with respect to a benefit year,
that benefit year has expired,
that individual has remaining entitlement to emergency unemployment compensation with respect to that benefit year, and
that individual would qualify for a new benefit year in which the weekly benefit amount of regular compensation is at least either $100 or 25 percent less than the individual’s weekly benefit amount in the benefit year referred to in subparagraph (A),
For individuals described in paragraph (1), the State shall determine whether the individual is to be paid emergency unemployment compensation or regular compensation for a week of unemployment using one of the following methods:
The State shall, if permitted by State law, establish a new benefit year, but defer the payment of regular compensation with respect to that new benefit year until exhaustion of all emergency unemployment compensation payable with respect to the benefit year referred to in paragraph (1)(A);
The State shall, if permitted by State law, defer the establishment of a new benefit year (which uses all the wages and employment which would have been used to establish a benefit year but for the application of this paragraph), until exhaustion of all emergency unemployment compensation payable with respect to the benefit year referred to in paragraph (1)(A);
The State shall pay, if permitted by State law—
regular compensation equal to the weekly benefit amount established under the new benefit year, and
emergency unemployment compensation equal to the difference between that weekly benefit amount and the weekly benefit amount for the expired benefit year; or
The State shall determine rights to emergency unemployment compensation without regard to any rights to regular compensation if the individual elects to not file a claim for regular compensation under the new benefit year.
.
Effective date
The amendment made by this section shall apply to individuals whose benefit years, as described in section 4002(g)(1)(B) the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), as amended by this section, expire after the date of enactment of this Act.
Medicaid FMAP and Summer Jobs
Extension of ARRA increase in FMAP
Section 5001 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is amended—
in subsection (a)(3), by striking
first calendar quarter
and inserting first 3 calendar
quarters
;
in subsection (b)—
in paragraph (1),
by striking paragraph (2)
and inserting paragraphs (2)
and (3)
; and
by adding at the end the following:
Phase-down of general increase
Second quarter of fiscal year 2011
For each State, for the second quarter of fiscal year 2011, the FMAP percentage increase for the State under paragraph (1) or (2) (as applicable) shall be 3.2 percentage points.
Third quarter of fiscal year 2011
For each State, for the third quarter of fiscal year 2011, the FMAP percentage increase for the State under paragraph (1) or (2) (as applicable) shall be 1.2 percentage points.
;
in subsection (c)—
in paragraph
(2)(B), by striking July 1, 2010
and inserting January 1,
2011
;
in paragraph
(3)(B)(i), by striking July 1, 2010
and inserting January
1, 2011
each place it appears; and
in paragraph (4)(C)(ii), by striking
the 3-consecutive-month period beginning with January 2010
and
inserting any 3-consecutive-month period that begins after December 2009
and ends before January 2011
;
in subsection (e), by adding at the end the following:
Notwithstanding paragraph (5), effective for payments made on or after January 1, 2010, the increases in the FMAP for a State under this section shall apply to payments under title XIX of such Act that are attributable to expenditures for medical assistance provided to nonpregnant childless adults made eligible under a State plan under such title (including under any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) who would have been eligible for child health assistance or other health benefits under eligibility standards in effect as of December 31, 2009, of a waiver of the State child health plan under the title XXI of such Act.
;
in subsection (g)—
in paragraph (1),
by striking September 30, 2011
and inserting March 31,
2012
;
in paragraph (2), by inserting of
such Act
after 1923
; and
by adding at the end the following:
Certification by chief executive officer
No additional Federal funds shall be paid to a State as a result of this section with respect to a calendar quarter occurring during the period beginning on January 1, 2011, and ending on June 30, 2011, unless, not later than 45 days after the date of enactment of this paragraph, the chief executive officer of the State certifies that the State will request and use such additional Federal funds.
; and
in subsection
(h)(3), by striking December 31, 2010
and inserting June
30, 2011
.
Summer employment for youth
There is
appropriated, out of any funds in the Treasury not otherwise appropriated, for
an additional amount for Department of Labor—Employment and Training
Administration—Training and Employment Services
for activities under
the Workforce Investment Act of 1998 (WIA
), $1,000,000,000 shall
be available for obligation on the date of enactment of this Act for grants to
States for youth activities, including summer employment for youth:
Provided, That no portion of such funds shall be reserved to
carry out section 127(b)(1)(A) of the WIA: Provided further,
That for purposes of section 127(b)(1)(C)(iv) of the WIA, funds available for
youth activities shall be allotted as if the total amount available for youth
activities in the fiscal year does not exceed $1,000,000,000: Provided
further, That with respect to the youth activities provided with such
funds, section 101(13)(A) of the WIA shall be applied by substituting
age 24
for age 21
: Provided
further, That the work readiness performance indicator described in
section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of performance
used to assess the effectiveness of summer employment for youth provided with
such funds: Provided further, That an amount that is not more
than 1 percent of such amount may be used for the administration, management,
and oversight of the programs, activities, and grants carried out with such
funds, including the evaluation of the use of such funds: Provided
further, That funds available under the preceding proviso, together
with funds described in section 801(a) of division A of the American Recovery
and reinvestment Act of 2009 (Public Law 111–5), and funds provided in such Act
under the heading Department of Labor–Departmental Management–Salaries
and Expenses
, shall remain available for obligation through September
30, 2011.
Offsets
Use of stimulus funds to offset spending
In order to offset the net increase in spending resulting from the provisions of, and amendments made by, title I, the unobligated balance of each amount appropriated or made available under division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) (other than under title X of such division) is rescinded. Not later than 30 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall report to each congressional committee the amounts so rescinded within the jurisdiction of such committee.
Sunset of temporary increase in benefits under the supplemental nutrition assistance program
Section 101(a) of title I of division A of Public Law 111–5 (123 Stat. 120) is amended—
in paragraph (1), by inserting before the period, “, if the value of such benefits and block grants would thereby be greater than in the absence of this subsection”; and
by striking paragraph (2) and inserting the following:
Termination
The authority provided by this subsection shall terminate after May 31, 2014.
.
Elimination of advance refundability of earned income credit
In general
The following provisions are repealed:
Section 3507 of the Internal Revenue Code of 1986.
Subsection (g) of section 32 of such Code.
Paragraph (7) of section 6051(a) of such Code.
Conforming amendments
Section 6012(a) of such Code is amended by striking paragraph (8) and by redesignating paragraph (9) as paragraph (8).
Section 6302 of such Code is amended by striking subsection (i).
The table of sections for chapter 25 of such Code is amended by striking the item relating to section 3507.
Effective date
The repeals and amendments made by this section shall apply to taxable years beginning after December 31, 2010.
Treatment of certain drugs for computation of Medicaid AMP
Effective as
if included in the enactment of Public Law 111–148, section
1927(k)(1)(B)(i)(IV) of the Social Security Act (42 U.S.C.
1396r–8(k)(1)(B)(i)(IV)), as amended by section 2503(a)(2)(B) of Public Law
111–148 and section 1101(c)(2) of Public Law 111–152, is amended by adding at
the end the following: , unless the drug is an inhalation, infusion, or
injectable drug that is not dispensed through a retail community pharmacy;
and
.
Rollovers from elective deferral plans to Roth designated accounts
In general
Section 402A(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Taxable rollovers to designated Roth accounts
In general
Notwithstanding sections 402(c), 403(b)(8), and 457(e)(16), in the case of any distribution to which this paragraph applies—
there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution,
section 72(t) shall not apply, and
unless the taxpayer elects not to have this clause apply, any amount required to be included in gross income for any taxable year beginning in 2010 by reason of this paragraph shall be so included ratably over the 2-taxable-year period beginning with the first taxable year beginning in 2011.
Distributions to which paragraph applies
In the case of an applicable retirement plan which includes a qualified Roth contribution program, this paragraph shall apply to a distribution from such plan other than from a designated Roth account which is contributed in a qualified rollover contribution to the designated Roth account maintained under such plan for the benefit of the individual to whom the distribution is made.
Other rules
The rules of subparagraphs (D), (E), and (F) of section 408A(d)(3) (as in effect for taxable years beginning after 2009) shall apply for purposes of this paragraph.
.
Participants in government section 457 plans allowed to treat elective deferrals as Roth contributions
In general
Section 402A(e)(1) of the Internal Revenue Code of 1986
(defining applicable retirement plan) is amended by striking and
at the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting , and
, and by adding at the end
the following:
an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).
.
Elective deferrals
Section 402A(e)(2) of such Code (defining elective deferral) is amended to read as follows:
Elective deferral
The term elective deferral means—
any elective deferral described in subparagraph (A) or (C) of section 402(g)(3), and
any elective deferral of compensation by an individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2010.
Rescinding unspent Federal funds
In general
Notwithstanding any other provision of law, of all available unobligated Federal funds, $4,000,000,000 in appropriated discretionary unexpired funds are rescinded.
Implementation
Not later than 60 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall—
identify the accounts and amounts rescinded to implement subsection (a); and
submit a report to the Secretary of the Treasury and Congress of the accounts and amounts identified under paragraph (1) for rescission.
Exception
This section shall not apply to the unobligated Federal funds of the Department of Defense or the Department of Veterans Affairs.
Budgetary provisions
Determination of budgetary effects
In general
The budgetary effects of this Act, for the
purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be
determined by reference to the latest statement titled Budgetary Effects
of PAYGO Legislation
for this Act, submitted for printing in the
Congressional Record by the Chairman of the Senate Budget Committee, provided
that such statement has been submitted prior to the vote on passage.
Emergency Designation for Congressional Enforcement
In the House of Representatives, this Act is designated as an emergency for purposes of pay-as-you-go principles. In the Senate, this Act is designated as an emergency requirement pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the concurrent resolution on the budget for fiscal year 2010.
Emergency Designation for Statutory PAYGO
This Act is designated as an emergency requirement pursuant to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (Public Law 111–139; 2 U.S.C. 933(g)).