S. 3551 (111th): Fiscally Responsible Relief for Our States Act of 2010

111th Congress, 2009–2010. Text as of Jun 30, 2010 (Introduced).

Status & Summary | PDF | Source: GPO

II

111th CONGRESS

2d Session

S. 3551

IN THE SENATE OF THE UNITED STATES

June 30, 2010

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.

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.

(b)

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.

I

Unemployment Insurance, Medicaid FMAP, and Summer Jobs

A

Unemployment insurance and other assistance

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—

(A)

by striking June 2, 2010 each place it appears and inserting November 30, 2010;

(B)

in the heading for subsection (b)(2), by striking june 2, 2010 and inserting november 30, 2010; and

(C)

in subsection (b)(3), by striking November 6, 2010 and inserting April 30, 2011.

(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—

(A)

by striking June 2, 2010 each place it appears and inserting December 1, 2010; and

(B)

in subsection (c), by striking November 6, 2010 and inserting May 1, 2011.

(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.

(b)

Funding

Section 4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is amended—

(1)

in subparagraph (D), by striking and at the end; and

(2)

by inserting after subparagraph (E) the following:

(F)

the amendments made by section 101(a)(1) of the Fiscally Responsible Relief for Our States Act of 2010; and

.

(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).

(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).

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:

(g)

Coordination of emergency unemployment compensation with regular compensation

(1)

If—

(A)

an individual has been determined to be entitled to emergency unemployment compensation with respect to a benefit year,

(B)

that benefit year has expired,

(C)

that individual has remaining entitlement to emergency unemployment compensation with respect to that benefit year, and

(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),

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

(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);

(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);

(C)

The State shall pay, if permitted by State law—

(i)

regular compensation equal to the weekly benefit amount established under the new benefit year, and

(ii)

emergency unemployment compensation equal to the difference between that weekly benefit amount and the weekly benefit amount for the expired benefit year; or

(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.

.

(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.

B

Medicaid FMAP and Summer Jobs

111.

Extension of ARRA increase in FMAP

Section 5001 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is amended—

(1)

in subsection (a)(3), by striking first calendar quarter and inserting first 3 calendar quarters;

(2)

in subsection (b)—

(A)

in paragraph (1), by striking paragraph (2) and inserting paragraphs (2) and (3); and

(B)

by adding at the end the following:

(3)

Phase-down of general increase

(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.

(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.

;

(3)

in subsection (c)—

(A)

in paragraph (2)(B), by striking July 1, 2010 and inserting January 1, 2011;

(B)

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

(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;

(4)

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.

;

(5)

in subsection (g)—

(A)

in paragraph (1), by striking September 30, 2011 and inserting March 31, 2012;

(B)

in paragraph (2), by inserting of such Act after 1923; and

(C)

by adding at the end the following:

(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.

; and

(6)

in subsection (h)(3), by striking December 31, 2010 and inserting June 30, 2011.

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.

II

Offsets

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.

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—

(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”; and

(2)

by striking paragraph (2) and inserting the following:

(2)

Termination

The authority provided by this subsection shall terminate after May 31, 2014.

.

203.

Elimination of advance refundability of earned income credit

(a)

In general

The following provisions are repealed:

(1)

Section 3507 of the Internal Revenue Code of 1986.

(2)

Subsection (g) of section 32 of such Code.

(3)

Paragraph (7) of section 6051(a) of such Code.

(b)

Conforming amendments

(1)

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

(2)

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

(3)

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

(c)

Effective date

The repeals and amendments made by this section shall apply to taxable years beginning after December 31, 2010.

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.

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:

(4)

Taxable rollovers to designated Roth accounts

(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—

(i)

there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution,

(ii)

section 72(t) shall not apply, and

(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.

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

(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.

.

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:

(C)

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

.

(b)

Elective deferrals

Section 402A(e)(2) of such Code (defining elective deferral) is amended to read as follows:

(2)

Elective deferral

The term elective deferral means—

(A)

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

(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).

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.

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.

(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—

(1)

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

(2)

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

(c)

Exception

This section shall not apply to the unobligated Federal funds of the Department of Defense or the Department of Veterans Affairs.

III

Budgetary provisions

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.

(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.

(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)).