1.Short
title; table of contents
(a)This Act may be cited
as the Fiscally Responsible Relief for
Our States Act of 2010
.
(b)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.
<enum>I</enum><header>Unemployment
Insurance, Medicaid FMAP, and Summer Jobs</header>
<subtitle id="HAE879B49A56140329832F6432E384B72"><enum>A</enum><header>Unemployment
insurance and other assistance</header>
<section display-inline="no-display-inline" id="id9E8C16EEDEC14D3B83984E49895A6303" section-type="subsequent-section"><enum>101.</enum><header>Extension of
unemployment insurance provisions</header>
<subsection display-inline="no-display-inline" id="id8EC98557D4C944B29DFE44F0DF14C4CB"><enum>(a)</enum><header>In
general</header><paragraph commented="no" display-inline="yes-display-inline" id="id909EABBA28AB4E079A06B1BEDAFB9858"><enum>(1)</enum><text>Section 4007 of the
Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note)
is amended—</text>
<subparagraph id="id93B056F5582F49998065BAD698787EC4" indent="up1"><enum>(A)</enum><text>by striking <quote>June 2,
2010</quote> each place it appears and inserting <quote>November 30,
2010</quote>;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id9C437B93A6694F2BA7B1450898E5A42A" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">in
the heading for subsection (b)(2), by striking <quote><header-in-text level="paragraph" style="OLC">june 2, 2010</header-in-text></quote> and
inserting <quote><header-in-text level="paragraph" style="OLC">november 30,
2010</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="id172AED6FDF4D497185E2E5E646DCA3F2" indent="up1"><enum>(C)</enum><text>in subsection (b)(3), by striking
<quote>November 6, 2010</quote> and inserting <quote>April 30,
2011</quote>.</text>
</subparagraph></paragraph><paragraph id="id8D183DA3C92143A68347BBD621317C42" indent="up1"><enum>(2)</enum><text>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—</text>
<subparagraph id="id5C7A9C2C206C43EFBD345960FDF48E96"><enum>(A)</enum><text>by striking <quote>June 2,
2010</quote> each place it appears and inserting <quote>December 1,
2010</quote>; and</text>
</subparagraph><subparagraph id="id182B50CBABB84BDAA1F7534411D47FC2"><enum>(B)</enum><text>in subsection (c), by striking
<quote>November 6, 2010</quote> and inserting <quote>May 1,
2011</quote>.</text>
</subparagraph></paragraph><paragraph id="idFCFDDCAA35DB4D699C34FBA64F57E33F" indent="up1"><enum>(3)</enum><text>Section 5 of the Unemployment
Compensation Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 3304 note) is
amended by striking <quote>November 6, 2010</quote> and inserting <quote>April
30, 2011</quote>.</text>
</paragraph></subsection><subsection id="id63D02ACC141C42AFBF49F4E5D8426C45"><enum>(b)</enum><header>Funding</header><text>Section
4004(e)(1) of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26
U.S.C. 3304 note) is amended—</text>
<paragraph id="id812BCB15066541CF8D21EE15412702FB"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking
<quote>and</quote> at the end; and</text>
</paragraph><paragraph id="idCDDB566A07F5485A982FB140FD6CDC8D"><enum>(2)</enum><text>by inserting
after subparagraph (E) the following:</text>
<quoted-block display-inline="no-display-inline" id="id924D3BC1663D49B6A16F8C86D91CB949" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idC2DE744778B34279AC01D82DE1E165DA"><enum>(F)</enum><text>the amendments
made by section 101(a)(1) of the <short-title>Fiscally
Responsible Relief for Our States Act of 2010</short-title>;
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="id6D5218F828974FD390F3ED994573426C"><enum>(c)</enum><header>Conditions for
receiving emergency unemployment compensation</header><text display-inline="yes-display-inline">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 <quote>shall
apply</quote> the following: <quote>(including terms and conditions relating to
availability for work, active search for work, and refusal to accept
work)</quote>.</text>
</subsection><subsection id="id0B2CD0D88AAD4AAAA00A6CA1E2626D0A"><enum>(d)</enum><header>Effective
date</header><text>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).</text>
</subsection></section><section id="H6BFEDA612AF64311A495A09A3591471C"><enum>102.</enum><header>Coordination of
emergency unemployment compensation with regular compensation</header>
<subsection display-inline="no-display-inline" id="HC46049E446B446ED9459FAABD73F797F"><enum>(a)</enum><header>Certain
individuals not ineligible by reason of new entitlement to regular
benefits</header><text>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:</text>
<quoted-block id="HF5B0F3786AA74FDBBD6218C244DB3B06" style="OLC">
<subsection id="H986BDC6DCD9F4C85A20F7839BD75E596"><enum>(g)</enum><header>Coordination of
emergency unemployment compensation with regular compensation</header>
<paragraph id="H3C6C4614C8E648EDAEDF9DF7755A8A6B"><enum>(1)</enum><text>If—</text>
<subparagraph id="H0DBDC3C97B46495FAD179EB13C0917A5"><enum>(A)</enum><text>an individual has
been determined to be entitled to emergency unemployment compensation with
respect to a benefit year,</text>
</subparagraph><subparagraph id="H4EDD79C0BE45479C93EF20585F4DED22"><enum>(B)</enum><text>that benefit year
has expired,</text>
</subparagraph><subparagraph id="H9E992FD0DB09426C80F75F01B2C010AC"><enum>(C)</enum><text>that individual
has remaining entitlement to emergency unemployment compensation with respect
to that benefit year, and</text>
</subparagraph><subparagraph id="H9305F85A2AD84A92A3C44650BBD1F7A9"><enum>(D)</enum><text>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),</text>
</subparagraph><continuation-text continuation-text-level="paragraph">then the
State shall determine eligibility for compensation as provided in paragraph
(2).</continuation-text></paragraph><paragraph id="HFFDB27111C97435682E7D479BE277EAD"><enum>(2)</enum><text>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:</text>
<subparagraph id="H035E296D7C16483A8E1BA6B0A3F24D0D"><enum>(A)</enum><text>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);</text>
</subparagraph><subparagraph id="H792A6349717447888655ABABDB2B907C"><enum>(B)</enum><text>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);</text>
</subparagraph><subparagraph id="HF49A23555384433582C91E838F64CA72"><enum>(C)</enum><text>The State shall
pay, if permitted by State law—</text>
<clause id="HB7BF18D397214D78AE9ED3B6E15F46BF"><enum>(i)</enum><text>regular
compensation equal to the weekly benefit amount established under the new
benefit year, and</text>
</clause><clause id="HAE131433276E48799AC3C44640A40EB0"><enum>(ii)</enum><text>emergency
unemployment compensation equal to the difference between that weekly benefit
amount and the weekly benefit amount for the expired benefit year; or</text>
</clause></subparagraph><subparagraph id="HD09F94C0E67C45A5A75EEFB2EFD470D7"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="HAE46F23E5D3241CC9C93B160DE5A38C4"><enum>(b)</enum><header>Effective
date</header><text>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.</text>
</subsection></section></subtitle><subtitle id="H012D53387CC4473AA5869277C46CDD33"><enum>B</enum><header>Medicaid FMAP and
Summer Jobs</header>
<section id="id750E8357CBF1431B9EAA54C4C3B99B63"><enum>111.</enum><header>Extension of
ARRA increase in FMAP</header><text display-inline="no-display-inline">Section
5001 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5)
is amended—</text>
<paragraph id="id0FA6679004B749C38F34DD976FCAB215"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(3), by striking
<quote>first calendar quarter</quote> and inserting <quote>first 3 calendar
quarters</quote>;</text>
</paragraph><paragraph id="idCAA36C61BEF04FCEAF19CCD1EBE51E54"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="id25F59AAE0CA04013B60D7BA8D56B6AAB"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>paragraph (2)</quote> and inserting <quote>paragraphs (2)
and (3)</quote>; and</text>
</subparagraph><subparagraph id="id69826899C6094AFE8832A61A6633B8CB"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id6E285E0A69994972BACB29F568B4DDBE" style="OLC">
<paragraph id="idB146DABDC5734D19979DC96ACE71CADA"><enum>(3)</enum><header>Phase-down of
general increase</header>
<subparagraph id="id396A97275E58415FA358115D8B43A1B8"><enum>(A)</enum><header>Second quarter
of fiscal year 2011</header><text>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.</text>
</subparagraph><subparagraph id="id766861F0C0094453BA59D71F42E97210"><enum>(B)</enum><header>Third quarter
of fiscal year 2011</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="id386C3F0AA67C41EFA4264A7D0545F328"><enum>(3)</enum><text>in subsection
(c)—</text>
<subparagraph id="idFE73057F1FAF43A0B37D0DA89DB7AFC5"><enum>(A)</enum><text>in paragraph
(2)(B), by striking <quote>July 1, 2010</quote> and inserting <quote>January 1,
2011</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC55017100F4D4A98BBF2BEC66EAE05C5"><enum>(B)</enum><text>in paragraph
(3)(B)(i), by striking <quote>July 1, 2010</quote> and inserting <quote>January
1, 2011</quote> each place it appears; and</text>
</subparagraph><subparagraph id="idD815D4A76981486B8B905D800040A0E8"><enum>(C)</enum><text display-inline="yes-display-inline">in paragraph (4)(C)(ii), by striking
<quote>the 3-consecutive-month period beginning with January 2010</quote> and
inserting <quote>any 3-consecutive-month period that begins after December 2009
and ends before January 2011</quote>;</text>
</subparagraph></paragraph><paragraph id="id7B188656F64A4E5BA3E3CF5F5477FDE4"><enum>(4)</enum><text>in subsection
(e), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idFC217C5DE477431BA5FD8FA33A15E89C" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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.</quoted-block-continuation-text><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5E33A4CA5B78474AA9157E0B5AA7FDDD"><enum>(5)</enum><text>in subsection
(g)—</text>
<subparagraph id="id541249AB4A824D8283A830C706F1C3F6"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>September 30, 2011</quote> and inserting <quote>March 31,
2012</quote>;</text>
</subparagraph><subparagraph id="id7B1DD446C78E481187DE539EA8D2C444"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting <quote>of
such Act</quote> after <quote>1923</quote>; and</text>
</subparagraph><subparagraph id="idFE46E14850174B6496E6CAC07A2046DB"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id8CA90427F8414AD5B6D1B69BE2162142" style="OLC">
<paragraph id="idF1E913462EB94E8DA2ED62FE97FA419D"><enum>(3)</enum><header>Certification
by chief executive officer</header><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDFB329090E6C43E98C8405C47F8DDDFF"><enum>(6)</enum><text>in subsection
(h)(3), by striking <quote>December 31, 2010</quote> and inserting <quote>June
30, 2011</quote>.</text>
</paragraph></section><section id="HCD9AD86B02D94907B569110CACA08BD1" section-type="subsequent-section"><enum>112.</enum><header>Summer employment
for youth</header><text display-inline="no-display-inline">There is
appropriated, out of any funds in the Treasury not otherwise appropriated, for
an additional amount for <quote>Department of Labor—Employment and Training
Administration—Training and Employment Services</quote> for activities under
the Workforce Investment Act of 1998 (<quote>WIA</quote>), $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:
<italic>Provided</italic>, That no portion of such funds shall be reserved to
carry out section 127(b)(1)(A) of the WIA: <italic>Provided further</italic>,
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: <italic>Provided
further</italic>, That with respect to the youth activities provided with such
funds, section 101(13)(A) of the WIA shall be applied by substituting
<quote>age 24</quote> for <quote>age 21</quote>: <italic>Provided
further</italic>, 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: <italic>Provided further</italic>, 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: <italic>Provided
further</italic>, 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 <quote>Department of Labor–Departmental Management–Salaries
and Expenses</quote>, shall remain available for obligation through September
30, 2011.</text>
</section></subtitle><enum>II</enum><header>Offsets</header>
<section commented="no" display-inline="no-display-inline" id="idBDDE6B1C3EF54AA59FDCF0E5C0AF68BE" section-type="subsequent-section"><enum>201.</enum><header>Use of stimulus
funds to offset spending</header><text display-inline="no-display-inline">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.</text>
</section><section id="id0CC49AC905A94E0EB01C9B8CA9AE4CB0"><enum>202.</enum><header>Sunset of
temporary increase in benefits under the supplemental nutrition assistance
program</header><text display-inline="no-display-inline">Section 101(a) of
title I of division A of Public Law 111–5 (123 Stat. 120) is amended—</text>
<paragraph id="idA2CB197362FC4A38A40ECFA41CBFB1EF"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="id1A3307A0111B4FF39BB608A029082382"><enum>(2)</enum><text>by striking
paragraph (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id2E469058E50048C1B65C2C377FD0F8EC" style="OLC">
<paragraph id="id93B6BA66E856416DBBDAA317A805CCE0"><enum>(2)</enum><header>Termination</header><text>The
authority provided by this subsection shall terminate after May 31,
2014.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id1F168D67315445BDA00406DF4257B6FE"><enum>203.</enum><header>Elimination of
advance refundability of earned income credit</header>
<subsection id="idD466959CADD34DBB9954E8809A247ECA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The following
provisions are repealed:</text>
<paragraph id="idF4893B6A98DB47D6AE1AC6B7934B4461"><enum>(1)</enum><text display-inline="yes-display-inline">Section 3507 of the Internal Revenue Code
of 1986.</text>
</paragraph><paragraph id="id5E119BD8819046A59B0520D149510EB9"><enum>(2)</enum><text display-inline="yes-display-inline">Subsection (g) of section 32 of such
Code.</text>
</paragraph><paragraph id="id4655EE20FDC04A868D9CAE9E6C0E6779"><enum>(3)</enum><text display-inline="yes-display-inline">Paragraph (7) of section 6051(a) of such
Code.</text>
</paragraph></subsection><subsection id="idF8E9E0CF7E53411DA560F38136DF3326"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id469A53887BFC4388AC2F061EFC05FF42"><enum>(1)</enum><text>Section 6012(a)
of such Code is amended by striking paragraph (8) and by redesignating
paragraph (9) as paragraph (8).</text>
</paragraph><paragraph id="idEB5E386ECD604FED911C8D16D1D3171F"><enum>(2)</enum><text>Section 6302 of
such Code is amended by striking subsection (i).</text>
</paragraph><paragraph id="id6B1BFD8C0FEB4DF6A1DF038830B8582E"><enum>(3)</enum><text>The table of
sections for chapter 25 of such Code is amended by striking the item relating
to section 3507.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id98F671E4459440C3BBA64D442B75416B"><enum>(c)</enum><header>Effective
date</header><text>The repeals and amendments made by this section shall apply
to taxable years beginning after December 31, 2010.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H9158C408C56043EFBEFDA59399B1D4FD" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">Treatment of certain drugs for computation
of Medicaid AMP</header><text display-inline="no-display-inline">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: <quote>, unless the drug is an inhalation, infusion, or
injectable drug that is not dispensed through a retail community pharmacy;
and</quote>.</text>
</section><section id="id0D139D9DF1B147B2B5C3D309D54875C5"><enum>205.</enum><header>Rollovers from
elective deferral plans to Roth designated accounts</header>
<subsection id="id71FA696A33A4411E84F412A7480650C9"><enum>(a)</enum><header>In
general</header><text>Section 402A(c) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id5C02847AE9664433B2812E826B6AC18F" style="OLC">
<paragraph id="id5D75811926A3477C801F46B88DDE1945"><enum>(4)</enum><header>Taxable
rollovers to designated Roth accounts</header>
<subparagraph id="id904C7E77BC0542258A56D43283085B52"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
sections 402(c), 403(b)(8), and 457(e)(16), in the case of any distribution to
which this paragraph applies—</text>
<clause commented="no" display-inline="no-display-inline" id="PDAE32B3016A54417BE2C5F002375F6DA"><enum>(i)</enum><text>there shall be
included in gross income any amount which would be includible were it not part
of a qualified rollover contribution,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="PEC71EF1488354E13BB123811CB8BC908"><enum>(ii)</enum><text>section 72(t)
shall not apply, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="PB323C88745984005816E39B9A4695C67"><enum>(iii)</enum><text>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.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">Any election under clause (iii)
for any distributions during a taxable year may not be changed after the due
date for such taxable year.</continuation-text></subparagraph><subparagraph id="id76902FFC488C4055A43DA4234356C750"><enum>(B)</enum><header>Distributions
to which paragraph applies</header><text>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.</text>
</subparagraph><subparagraph id="id202C726BED834E63B95EACC1704DB4A6"><enum>(C)</enum><header>Other
rules</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="ID1A2DD41F698A48898371CABD48B31757"><enum>206.</enum><header>Participants
in government section 457 plans allowed to treat elective deferrals as Roth
contributions</header>
<subsection id="ID70457ED36BA04BFAB5D1E5C681F29595"><enum>(a)</enum><header>In
general</header><text>Section 402A(e)(1) of the Internal Revenue Code of 1986
(defining applicable retirement plan) is amended by striking <quote>and</quote>
at the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting <quote>, and</quote>, and by adding at the end
the following:</text>
<quoted-block id="ID5945F431379F4C199076F9F8AF499FEF" style="OLC">
<subparagraph id="ID5F4D4A30CD064BF9BBF5A82AF177223A"><enum>(C)</enum><text>an eligible
deferred compensation plan (as defined in section 457(b)) of an eligible
employer described in section
457(e)(1)(A).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2AD854B310B34D328437D30B79080C92"><enum>(b)</enum><header>Elective
deferrals</header><text>Section 402A(e)(2) of such Code (defining elective
deferral) is amended to read as follows:</text>
<quoted-block id="ID12B79075925245D0994CCB7A1AFEF950" style="OLC">
<paragraph id="ID5EFC2AADCEB34C73915ED6BDD9421BC9"><enum>(2)</enum><header>Elective
deferral</header><text>The term <term>elective deferral</term> means—</text>
<subparagraph id="IDA67D51D203D24FDE9312951EC0AE5466"><enum>(A)</enum><text>any elective
deferral described in subparagraph (A) or (C) of section 402(g)(3), and</text>
</subparagraph><subparagraph id="IDE7BCFBC4336B4C9FA3DF7C908253EE7A"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID256AE764BD124156BBA68B480EB17C6B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.</text>
</subsection></section><section id="IDd400d780e79b4764a1a2ce6a82b5905b"><enum>207.</enum><header>Rescinding
unspent Federal funds</header>
<subsection id="ID862d7a85ff7043cba478180d846d9de8"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any other provision of law, of all
available unobligated Federal funds, $4,000,000,000 in appropriated
discretionary unexpired funds are rescinded.</text>
</subsection><subsection id="IDa593cdd0137e4ee59d1144d9d4109e21"><enum>(b)</enum><header>Implementation</header><text>Not
later than 60 days after the date of enactment of this Act, the Director of the
Office of Management and Budget shall—</text>
<paragraph id="ID49822e6b4a5445be97579cf7c3f92fd9"><enum>(1)</enum><text>identify the
accounts and amounts rescinded to implement subsection (a); and</text>
</paragraph><paragraph id="ID3123127a6a2443598a14e6b84f495544"><enum>(2)</enum><text>submit a report
to the Secretary of the Treasury and Congress of the accounts and amounts
identified under paragraph (1) for rescission.</text>
</paragraph></subsection><subsection id="ID1917734fd16147f79c82107dbb2138d8"><enum>(c)</enum><header>Exception</header><text>This
section shall not apply to the unobligated Federal funds of the Department of
Defense or the Department of Veterans Affairs.</text>
</subsection></section><enum>III</enum><header>Budgetary
provisions</header>
<section commented="no" display-inline="no-display-inline" id="H30A706E666FA4647ABCC898F9DCBC234" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Determination of budgetary effects</header>
<subsection commented="no" display-inline="no-display-inline" id="idEB4F7FBC86774E679EFE99E6087E500B"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">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 <quote>Budgetary Effects
of PAYGO Legislation</quote> 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.</text>
</subsection><subsection id="id2892DFA3C2504165AA6F5FE2DA8E72DE"><enum>(b)</enum><header>Emergency
Designation for Congressional Enforcement</header><text>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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDDE8816767E24757BAE1719390318CE1"><enum>(c)</enum><header>Emergency
Designation for Statutory PAYGO</header><text>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)).
<proviso></proviso></text>
</subsection></section>