[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3551 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3551

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


_______________________________________________________________________


                   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.

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

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''.
    (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.

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

        Subtitle A--Unemployment Insurance and Other Assistance

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--
            (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).

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:
    ``(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.

               Subtitle B--Medicaid FMAP and Summer Jobs

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--
            (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''.

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.

                           TITLE II--OFFSETS

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.

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--
            (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.''.

SEC. 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.

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''.

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:
            ``(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.''.

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:
                    ``(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.

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.
    (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.

                    TITLE III--BUDGETARY PROVISIONS

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.
    (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)). 
                                 <all>