S 3551 ISCommentsClose CommentsPermalink

To provide a fully offset extension of emergency unemployment insurance assistance, enhanced Medicaid FMAP reimbursements, and summer employment for youth, and for other purposes.CommentsClose CommentsPermalink

June 30, 2010CommentsClose CommentsPermalink

Mr. BROWN of Massachusetts introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To provide a fully offset extension of emergency unemployment insurance assistance, enhanced Medicaid FMAP reimbursements, and summer employment for youth, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Fiscally Responsible Relief for Our States Act of 2010’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink

TITLE I--UNEMPLOYMENT INSURANCE, MEDICAID FMAP, AND SUMMER JOBS

Subtitle A--Unemployment Insurance and Other Assistance

Sec. 101. Extension of unemployment insurance provisions.CommentsClose CommentsPermalink





Sec. 102. Coordination of emergency unemployment compensation with regular compensation.CommentsClose CommentsPermalink

Subtitle B--Medicaid FMAP and Summer Jobs

Sec. 111. Extension of ARRA increase in FMAP.CommentsClose CommentsPermalink





Sec. 112. Summer employment for youth.CommentsClose CommentsPermalink

TITLE II--OFFSETS

Sec. 201. Use of stimulus funds to offset spending.CommentsClose CommentsPermalink





Sec. 202. Sunset of temporary increase in benefits under the supplemental nutrition assistance program.CommentsClose CommentsPermalink





Sec. 203. Elimination of advance refundability of earned income credit.CommentsClose CommentsPermalink





Sec. 204. Treatment of certain drugs for computation of Medicaid AMP.CommentsClose CommentsPermalink





Sec. 205. Rollovers from elective deferral plans to Roth designated accounts.CommentsClose CommentsPermalink





Sec. 206. Participants in government section 457 plans allowed to treat elective deferrals as Roth contributions.CommentsClose CommentsPermalink





Sec. 207. Rescinding unspent Federal funds.CommentsClose CommentsPermalink

TITLE III--BUDGETARY PROVISIONS

Sec. 301. Determination of budgetary effects.CommentsClose CommentsPermalink

TITLE I--UNEMPLOYMENT INSURANCE, MEDICAID FMAP, AND SUMMER JOBSCommentsClose CommentsPermalink

Subtitle A--Unemployment Insurance and Other AssistanceCommentsClose CommentsPermalink

SEC. 101. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

(a) In General- (1) Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--CommentsClose CommentsPermalink





(A) by striking ‘June 2, 2010’ each place it appears and inserting ‘November 30, 2010’;CommentsClose CommentsPermalink





(B) in the heading for subsection (b)(2), by striking ‘JUNE 2, 2010’ and inserting ‘NOVEMBER 30, 2010’; andCommentsClose CommentsPermalink





(C) in subsection (b)(3), by striking ‘November 6, 2010’ and inserting ‘April 30, 2011’.CommentsClose CommentsPermalink





(2) 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--CommentsClose CommentsPermalink





(A) by striking ‘June 2, 2010’ each place it appears and inserting ‘December 1, 2010’; andCommentsClose CommentsPermalink





(B) in subsection (c), by striking ‘November 6, 2010’ and inserting ‘May 1, 2011’.CommentsClose CommentsPermalink





(3) 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’.CommentsClose CommentsPermalink





(b) Funding- Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (D), by striking ‘and’ at the end; andCommentsClose CommentsPermalink





(2) by inserting after subparagraph (E) the following:CommentsClose CommentsPermalink





‘(F) the amendments made by section 101(a)(1) of the Fiscally Responsible Relief for Our States Act of 2010; and’.CommentsClose CommentsPermalink





(c) 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)’.CommentsClose CommentsPermalink





(d) 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).CommentsClose CommentsPermalink

SEC. 102. COORDINATION OF EMERGENCY UNEMPLOYMENT COMPENSATION WITH REGULAR COMPENSATION.

(a) 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:CommentsClose CommentsPermalink





‘(g) Coordination of Emergency Unemployment Compensation With Regular Compensation-CommentsClose CommentsPermalink





‘(1) If--CommentsClose CommentsPermalink





‘(A) an individual has been determined to be entitled to emergency unemployment compensation with respect to a benefit year,CommentsClose CommentsPermalink





‘(B) that benefit year has expired,CommentsClose CommentsPermalink





‘(C) that individual has remaining entitlement to emergency unemployment compensation with respect to that benefit year, andCommentsClose CommentsPermalink





‘(D) 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),CommentsClose CommentsPermalink





then the State shall determine eligibility for compensation as provided in paragraph (2).CommentsClose CommentsPermalink





‘(2) 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:CommentsClose CommentsPermalink





‘(A) 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);CommentsClose CommentsPermalink





‘(B) 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);CommentsClose CommentsPermalink





‘(C) The State shall pay, if permitted by State law--CommentsClose CommentsPermalink





‘(i) regular compensation equal to the weekly benefit amount established under the new benefit year, andCommentsClose CommentsPermalink





‘(ii) emergency unemployment compensation equal to the difference between that weekly benefit amount and the weekly benefit amount for the expired benefit year; orCommentsClose CommentsPermalink





‘(D) 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.’.CommentsClose CommentsPermalink





(b) 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.CommentsClose CommentsPermalink

Subtitle B--Medicaid FMAP and Summer JobsCommentsClose CommentsPermalink

SEC. 111. EXTENSION OF ARRA INCREASE IN FMAP.

Section 5001 of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) is amended--CommentsClose CommentsPermalink





(1) in subsection (a)(3), by striking ‘first calendar quarter’ and inserting ‘first 3 calendar quarters’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in paragraph (1), by striking ‘paragraph (2)’ and inserting ‘paragraphs (2) and (3)’; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





‘(3) PHASE-DOWN OF GENERAL INCREASE-CommentsClose CommentsPermalink





‘(A) 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.CommentsClose CommentsPermalink





‘(B) 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.’;CommentsClose CommentsPermalink





(3) in subsection (c)--CommentsClose CommentsPermalink





(A) in paragraph (2)(B), by striking ‘July 1, 2010’ and inserting ‘January 1, 2011’;CommentsClose CommentsPermalink





(B) in paragraph (3)(B)(i), by striking ‘July 1, 2010’ and inserting ‘January 1, 2011’ each place it appears; andCommentsClose CommentsPermalink





(C) 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’;CommentsClose CommentsPermalink





(4) in subsection (e), by adding at the end the following:CommentsClose CommentsPermalink





‘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.’;CommentsClose CommentsPermalink





(5) in subsection (g)--CommentsClose CommentsPermalink





(A) in paragraph (1), by striking ‘September 30, 2011’ and inserting ‘March 31, 2012’;CommentsClose CommentsPermalink





(B) in paragraph (2), by inserting ‘of such Act’ after ‘1923’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(3) 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.’; andCommentsClose CommentsPermalink





(6) in subsection (h)(3), by striking ‘December 31, 2010’ and inserting ‘June 30, 2011’.CommentsClose CommentsPermalink

SEC. 112. 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.CommentsClose CommentsPermalink

TITLE II--OFFSETSCommentsClose CommentsPermalink

SEC. 201. 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.CommentsClose CommentsPermalink

SEC. 202. 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--CommentsClose CommentsPermalink





(1) 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’; andCommentsClose CommentsPermalink





(2) by striking paragraph (2) and inserting the following:CommentsClose CommentsPermalink





‘(2) TERMINATION- The authority provided by this subsection shall terminate after May 31, 2014.’.CommentsClose CommentsPermalink

SEC. 203. ELIMINATION OF ADVANCE REFUNDABILITY OF EARNED INCOME CREDIT.

(a) In General- The following provisions are repealed:CommentsClose CommentsPermalink





(1) Section 3507 of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(2) Subsection (g) of section 32 of such Code.CommentsClose CommentsPermalink





(3) Paragraph (7) of section 6051(a) of such Code.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 6012(a) of such Code is amended by striking paragraph (8) and by redesignating paragraph (9) as paragraph (8).CommentsClose CommentsPermalink





(2) Section 6302 of such Code is amended by striking subsection (i).CommentsClose CommentsPermalink





(3) The table of sections for chapter 25 of such Code is amended by striking the item relating to section 3507.CommentsClose CommentsPermalink





(c) Effective Date- The repeals and amendments made by this section shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

SEC. 204. 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’.CommentsClose CommentsPermalink

SEC. 205. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO ROTH DESIGNATED ACCOUNTS.

(a) In General- Section 402A(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) TAXABLE ROLLOVERS TO DESIGNATED ROTH ACCOUNTS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Notwithstanding sections 402(c), 403(b)(8), and 457(e)(16), in the case of any distribution to which this paragraph applies--CommentsClose CommentsPermalink





‘(i) there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution,CommentsClose CommentsPermalink





‘(ii) section 72(t) shall not apply, andCommentsClose CommentsPermalink





‘(iii) 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.CommentsClose CommentsPermalink





Any election under clause (iii) for any distributions during a taxable year may not be changed after the due date for such taxable year.CommentsClose CommentsPermalink





‘(B) 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.CommentsClose CommentsPermalink





‘(C) 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.’.CommentsClose CommentsPermalink

SEC. 206. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH CONTRIBUTIONS.

(a) 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:CommentsClose CommentsPermalink





‘(C) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).’.CommentsClose CommentsPermalink





(b) Elective Deferrals- Section 402A(e)(2) of such Code (defining elective deferral) is amended to read as follows:CommentsClose CommentsPermalink





‘(2) ELECTIVE DEFERRAL- The term ‘elective deferral’ means--CommentsClose CommentsPermalink





‘(A) any elective deferral described in subparagraph (A) or (C) of section 402(g)(3), andCommentsClose CommentsPermalink





‘(B) 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).’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

SEC. 207. RESCINDING UNSPENT FEDERAL FUNDS.

(a) 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.CommentsClose CommentsPermalink





(b) Implementation- Not later than 60 days after the date of enactment of this Act, the Director of the Office of Management and Budget shall--CommentsClose CommentsPermalink





(1) identify the accounts and amounts rescinded to implement subsection (a); andCommentsClose CommentsPermalink





(2) submit a report to the Secretary of the Treasury and Congress of the accounts and amounts identified under paragraph (1) for rescission.CommentsClose CommentsPermalink





(c) Exception- This section shall not apply to the unobligated Federal funds of the Department of Defense or the Department of Veterans Affairs.CommentsClose CommentsPermalink

TITLE III--BUDGETARY PROVISIONSCommentsClose CommentsPermalink

SEC. 301. DETERMINATION OF BUDGETARY EFFECTS.

(a) 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.CommentsClose CommentsPermalink





(b) 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.CommentsClose CommentsPermalink





(c) 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)).CommentsClose CommentsPermalink