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S. 743: State Fiscal Flexibility Act of 2021


The text of the bill below is as of Mar 15, 2021 (Introduced).


II

117th CONGRESS

1st Session

S. 743

IN THE SENATE OF THE UNITED STATES

March 15, 2021

(for himself, Mr. Grassley, Mr. Cornyn, Mr. Portman, Mr. Scott of South Carolina, Mr. Lankford, Mr. Daines, Mr. Young, Mr. Risch, and Mr. Thune) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title VI of the Social Security Act to remove the prohibition on States and territories against lowering their taxes.

1.

Short title

This Act may be cited as the State Fiscal Flexibility Act of 2021.

2.

Removal of restriction of use of Coronavirus State Fiscal Recovery funds

(a)

In general

Paragraph (2) of section 602(c) of the Social Security Act, as added by section 9901 of the American Rescue Plan Act of 2021, is amended to read as follows:

(2)

Further restriction on use of funds

No State or territory may use funds made available under this section for deposit into any pension fund.

.

(b)

Conforming amendments

Section 602 of such Act is further amended—

(1)

in subsection (d)(2)(A), by striking , including, in the case of a State or a territory, all modifications to the State's or territory's tax revenue sources during the covered period;

(2)

in subsection (e), by striking such subsection, and all that follows through the period and inserting such subsection.; and

(3)

in subsection (g)—

(A)

by striking paragraph (1); and

(B)

by redesignating paragraphs (2) through (7) as paragraphs (1) through (6), respectively.

(c)

Effective date

The amendments made by this section shall take effect as if included in the enactment of the American Rescue Plan Act of 2021.