II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Fiscally Responsible Relief for Our States Act of 2010’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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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. 

1 TITLE I—UNEMPLOYMENT IN2 SURANCE, MEDICAID FMAP, 

3 AND SUMMER JOBS 

4 Subtitle A—Unemployment 

5 Insurance and Other Assistance 

6 SEC. 101. EXTENSION OF UNEMPLOYMENT INSURANCE 

7 PROVISIONS. 

8 (a) IN GENERAL.—(1) Section 4007 of the Supple9 mental Appropriations Act, 2008 (Public Law 110–252; 

10 26 U.S.C. 3304 note) is amended— 

11 (A) by striking ‘‘June 2, 2010’’ each place it 

12 appears and inserting ‘‘November 30, 2010’’; 


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1 (B) in the heading for subsection (b)(2), by 

2 striking ‘‘JUNE 2, 2010’’ and inserting ‘‘NOVEMBER

3 30, 2010’’; and 

4 (C) in subsection (b)(3), by striking ‘‘November 

5 6, 2010’’ and inserting ‘‘April 30, 2011’’. 

6 (2) Section 2005 of the Assistance for Unemployed 

7 Workers and Struggling Families Act, as contained in 

8 Public Law 111–5 (26 U.S.C. 3304 note; 123 Stat. 444), 

9 is amended— 

10 (A) by striking ‘‘June 2, 2010’’ each place it 

11 appears and inserting ‘‘December 1, 2010’’; and 

12 (B) in subsection (c), by striking ‘‘November 6, 

13 2010’’ and inserting ‘‘May 1, 2011’’. 

14 (3) Section 5 of the Unemployment Compensation 

15 Extension Act of 2008 (Public Law 110–449; 26 U.S.C. 

16 3304 note) is amended by striking ‘‘November 6, 2010’’ 

17 and inserting ‘‘April 30, 2011’’. 

18 (b) FUNDING.—Section 4004(e)(1) of the Supple19 mental Appropriations Act, 2008 (Public Law 110–252; 

20 26 U.S.C. 3304 note) is amended— 

21 (1) in subparagraph (D), by striking ‘‘and’’ at 

22 the end; and 

23 (2) by inserting after subparagraph (E) the fol24 lowing: 


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1 ‘‘(F) the amendments made by section 

2 101(a)(1) of the Fiscally Responsible Relief for 

3 Our States Act of 2010; and’’. 

4 (c) CONDITIONS FOR RECEIVING EMERGENCY UNEM5 PLOYMENT COMPENSATION.—Section 4001(d)(2) of the 

6 Supplemental Appropriations Act, 2008 (Public Law 110– 

7 252; 26 U.S.C. 3304 note) is amended, in the matter pre8 ceding subparagraph (A), by inserting before ‘‘shall 

9 apply’’ the following: ‘‘(including terms and conditions re10 lating to availability for work, active search for work, and 

11 refusal to accept work)’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall take effect as if included in the enact14 ment of the Continuing Extension Act of 2010 (Public 

15 Law 111–157). 

16 SEC. 102. COORDINATION OF EMERGENCY UNEMPLOY17 MENT COMPENSATION WITH REGULAR COM18 PENSATION. 

19 (a) CERTAIN INDIVIDUALS NOT INELIGIBLE BY REA20 SON OF NEW ENTITLEMENT TO REGULAR BENEFITS.— 

21 Section 4002 of the Supplemental Appropriations Act, 

22 2008 (Public Law 110–252; 26 U.S.C. 3304 note) is 

23 amended by adding at the end the following: 


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1 ‘‘(g) COORDINATION OF EMERGENCY UNEMPLOY2 MENT COMPENSATION WITH REGULAR COMPENSA3 TION.— 

4 ‘‘(1) If— 

5 ‘‘(A) an individual has been determined to 

6 be entitled to emergency unemployment com7 pensation with respect to a benefit year, 

8 ‘‘(B) that benefit year has expired, 

9 ‘‘(C) that individual has remaining entitle10 ment to emergency unemployment compensa11 tion with respect to that benefit year, and 

12 ‘‘(D) that individual would qualify for a 

13 new benefit year in which the weekly benefit 

14 amount of regular compensation is at least ei15 ther $100 or 25 percent less than the individ16 ual’s weekly benefit amount in the benefit year 

17 referred to in subparagraph (A), 

18 then the State shall determine eligibility for com19 pensation as provided in paragraph (2). 

20 ‘‘(2) For individuals described in paragraph (1), 

21 the State shall determine whether the individual is 

22 to be paid emergency unemployment compensation 

23 or regular compensation for a week of unemploy24 ment using one of the following methods: 


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1 ‘‘(A) The State shall, if permitted by State 

2 law, establish a new benefit year, but defer the 

3 payment of regular compensation with respect 

4 to that new benefit year until exhaustion of all 

5 emergency unemployment compensation payable 

6 with respect to the benefit year referred to in 

7 paragraph (1)(A); 

8 ‘‘(B) The State shall, if permitted by State 

9 law, defer the establishment of a new benefit 

10 year (which uses all the wages and employment 

11 which would have been used to establish a ben12 efit year but for the application of this para13 graph), until exhaustion of all emergency unem14 ployment compensation payable with respect to 

15 the benefit year referred to in paragraph 

16 (1)(A); 

17 ‘‘(C) The State shall pay, if permitted by 

18 State law— 

19 ‘‘(i) regular compensation equal to the 

20 weekly benefit amount established under 

21 the new benefit year, and 

22 ‘‘(ii) emergency unemployment com23 pensation equal to the difference between 

24 that weekly benefit amount and the weekly 


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1 benefit amount for the expired benefit 

2 year; or 

3 ‘‘(D) The State shall determine rights to 

4 emergency unemployment compensation without 

5 regard to any rights to regular compensation if 

6 the individual elects to not file a claim for reg7 ular compensation under the new benefit year.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to individuals whose benefit years, 

10 as described in section 4002(g)(1)(B) the Supplemental 

11 Appropriations Act, 2008 (Public Law 110–252; 26 

12 U.S.C. 3304 note), as amended by this section, expire 

13 after the date of enactment of this Act. 

14 Subtitle B—Medicaid FMAP and 

15 Summer Jobs 

16 SEC. 111. EXTENSION OF ARRA INCREASE IN FMAP. 

17 Section 5001 of the American Recovery and Reinvest18 ment Act of 2009 (Public Law 111–5) is amended— 

19 (1) in subsection (a)(3), by striking ‘‘first cal20 endar quarter’’ and inserting ‘‘first 3 calendar quar21 ters’’; 

22 (2) in subsection (b)— 

23 (A) in paragraph (1), by striking ‘‘para24 graph (2)’’ and inserting ‘‘paragraphs (2) and 

25 (3)’’; and 


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1 (B) by adding at the end the following: 

2 ‘‘(3) PHASE-DOWN OF GENERAL INCREASE.— 

3 ‘‘(A) SECOND QUARTER OF FISCAL YEAR

4 2011.—For each State, for the second quarter of 

5 fiscal year 2011, the FMAP percentage increase 

6 for the State under paragraph (1) or (2) (as 

7 applicable) shall be 3.2 percentage points. 

8 ‘‘(B) THIRD QUARTER OF FISCAL YEAR

9 2011.—For each State, for the third quarter of 

10 fiscal year 2011, the FMAP percentage increase 

11 for the State under paragraph (1) or (2) (as 

12 applicable) shall be 1.2 percentage points.’’; 

13 (3) in subsection (c)— 

14 (A) in paragraph (2)(B), by striking ‘‘July 

15 1, 2010’’ and inserting ‘‘January 1, 2011’’; 

16 (B) in paragraph (3)(B)(i), by striking 

17 ‘‘July 1, 2010’’ and inserting ‘‘January 1, 

18 2011’’ each place it appears; and 

19 (C) in paragraph (4)(C)(ii), by striking 

20 ‘‘the 3-consecutive-month period beginning with 

21 January 2010’’ and inserting ‘‘any 3-consecu22 tive-month period that begins after December 

23 2009 and ends before January 2011’’; 

24 (4) in subsection (e), by adding at the end the 

25 following: 


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1 ‘‘Notwithstanding paragraph (5), effective for payments 

2 made on or after January 1, 2010, the increases in the 

3 FMAP for a State under this section shall apply to pay4 ments under title XIX of such Act that are attributable 

5 to expenditures for medical assistance provided to non6 pregnant childless adults made eligible under a State plan 

7 under such title (including under any waiver under such 

8 title or under section 1115 of such Act (42 U.S.C. 1315)) 

9 who would have been eligible for child health assistance 

10 or other health benefits under eligibility standards in ef11 fect as of December 31, 2009, of a waiver of the State 

12 child health plan under the title XXI of such Act.’’; 

13 (5) in subsection (g)— 

14 (A) in paragraph (1), by striking ‘‘Sep15 tember 30, 2011’’ and inserting ‘‘March 31, 

16 2012’’; 

17 (B) in paragraph (2), by inserting ‘‘of such 

18 Act’’ after ‘‘1923’’; and 

19 (C) by adding at the end the following: 

20 ‘‘(3) CERTIFICATION BY CHIEF EXECUTIVE OF21 FICER.—No additional Federal funds shall be paid 

22 to a State as a result of this section with respect to 

23 a calendar quarter occurring during the period be24 ginning on January 1, 2011, and ending on June 

25 30, 2011, unless, not later than 45 days after the 


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1 date of enactment of this paragraph, the chief execu2 tive officer of the State certifies that the State will 

3 request and use such additional Federal funds.’’; 

4 and 

5 (6) in subsection (h)(3), by striking ‘‘December 

6 31, 2010’’ and inserting ‘‘June 30, 2011’’. 

7 SEC. 112. SUMMER EMPLOYMENT FOR YOUTH. 

8 There is appropriated, out of any funds in the Treas9 ury not otherwise appropriated, for an additional amount 

10 for ‘‘Department of Labor—Employment and Training 

11 Administration—Training and Employment Services’’ for 

12 activities under the Workforce Investment Act of 1998 

13 (‘‘WIA’’), $1,000,000,000 shall be available for obligation 

14 on the date of enactment of this Act for grants to States 

15 for youth activities, including summer employment for 

16 youth: Provided, That no portion of such funds shall be 

17 reserved to carry out section 127(b)(1)(A) of the WIA: 

18 Provided further, That for purposes of section 

19 127(b)(1)(C)(iv) of the WIA, funds available for youth ac20 tivities shall be allotted as if the total amount available 

21 for youth activities in the fiscal year does not exceed 

22 $1,000,000,000: Provided further, That with respect to the 

23 youth activities provided with such funds, section 

24 101(13)(A) of the WIA shall be applied by substituting 

25 ‘‘age 24’’ for ‘‘age 21’’: Provided further, That the work 


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1 readiness performance indicator described in section 

2 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure 

3 of performance used to assess the effectiveness of summer 

4 employment for youth provided with such funds: Provided 

5 further, That an amount that is not more than 1 percent 

6 of such amount may be used for the administration, man7 agement, and oversight of the programs, activities, and 

8 grants carried out with such funds, including the evalua9 tion of the use of such funds: Provided further, That funds 

10 available under the preceding proviso, together with funds 

11 described in section 801(a) of division A of the American 

12 Recovery and reinvestment Act of 2009 (Public Law 111– 

13 5), and funds provided in such Act under the heading 

14 ‘‘Department of Labor–Departmental Management–Sala15 ries and Expenses’’, shall remain available for obligation 

16 through September 30, 2011. 

17 TITLE II—OFFSETS 

18 SEC. 201. USE OF STIMULUS FUNDS TO OFFSET SPENDING. 

19 In order to offset the net increase in spending result20 ing from the provisions of, and amendments made by, title 

21 I, the unobligated balance of each amount appropriated 

22 or made available under division A of the American Recov23 ery and Reinvestment Act of 2009 (Public Law 111–5) 

24 (other than under title X of such division) is rescinded. 

25 Not later than 30 days after the date of enactment of this 


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1 Act, the Director of the Office of Management and Budget 

2 shall report to each congressional committee the amounts 

3 so rescinded within the jurisdiction of such committee. 

4 SEC. 202. SUNSET OF TEMPORARY INCREASE IN BENEFITS 

5 UNDER THE SUPPLEMENTAL NUTRITION AS6 SISTANCE PROGRAM. 

7 Section 101(a) of title I of division A of Public Law 

8 111–5 (123 Stat. 120) is amended— 

9 (1) in paragraph (1), by inserting before the pe10 riod, ‘‘, if the value of such benefits and block grants 

11 would thereby be greater than in the absence of this 

12 subsection’’; and 

13 (2) by striking paragraph (2) and inserting the 

14 following: 

15 ‘‘(2) TERMINATION.—The authority provided by 

16 this subsection shall terminate after May 31, 

17 2014.’’. 

18 SEC. 203. ELIMINATION OF ADVANCE REFUNDABILITY OF 

19 EARNED INCOME CREDIT. 

20 (a) IN GENERAL.—The following provisions are re21 pealed: 

22 (1) Section 3507 of the Internal Revenue Code 

23 of 1986. 

24 (2) Subsection (g) of section 32 of such Code. 


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1 (3) Paragraph (7) of section 6051(a) of such 

2 Code. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Section 6012(a) of such Code is amended 

5 by striking paragraph (8) and by redesignating 

6 paragraph (9) as paragraph (8). 

7 (2) Section 6302 of such Code is amended by 

8 striking subsection (i). 

9 (3) The table of sections for chapter 25 of such 

10 Code is amended by striking the item relating to sec11 tion 3507. 

12 (c) EFFECTIVE DATE.—The repeals and amend13 ments made by this section shall apply to taxable years 

14 beginning after December 31, 2010. 

15 SEC. 204. TREATMENT OF CERTAIN DRUGS FOR COMPUTA16 TION OF MEDICAID AMP. 

17 Effective as if included in the enactment of Public 

18 Law 111–148, section 1927(k)(1)(B)(i)(IV) of the Social 

19 Security Act (42 U.S.C. 1396r–8(k)(1)(B)(i)(IV)), as 

20 amended by section 2503(a)(2)(B) of Public Law 111–148 

21 and section 1101(c)(2) of Public Law 111–152, is amend22 ed by adding at the end the following: ‘‘, unless the drug 

23 is an inhalation, infusion, or injectable drug that is not 

24 dispensed through a retail community pharmacy; and’’. 


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1 SEC. 205. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS 

2 TO ROTH DESIGNATED ACCOUNTS. 

3 (a) IN GENERAL.—Section 402A(c) of the Internal 

4 Revenue Code of 1986 is amended by adding at the end 

5 the following new paragraph: 

6 ‘‘(4) TAXABLE ROLLOVERS TO DESIGNATED

7 ROTH ACCOUNTS.— 

8 ‘‘(A) IN GENERAL.—Notwithstanding sec9 tions 402(c), 403(b)(8), and 457(e)(16), in the 

10 case of any distribution to which this paragraph 

11 applies— 

12 ‘‘(i) there shall be included in gross 

13 income any amount which would be includ14 ible were it not part of a qualified rollover 

15 contribution, 

16 ‘‘(ii) section 72(t) shall not apply, and 

17 ‘‘(iii) unless the taxpayer elects not to 

18 have this clause apply, any amount re19 quired to be included in gross income for 

20 any taxable year beginning in 2010 by rea21 son of this paragraph shall be so included 

22 ratably over the 2-taxable-year period be23 ginning with the first taxable year begin24 ning in 2011. 


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1 Any election under clause (iii) for any distribu2 tions during a taxable year may not be changed 

3 after the due date for such taxable year. 

4 ‘‘(B) DISTRIBUTIONS TO WHICH PARA5 GRAPH APPLIES.—In the case of an applicable 

6 retirement plan which includes a qualified Roth 

7 contribution program, this paragraph shall 

8 apply to a distribution from such plan other 

9 than from a designated Roth account which is 

10 contributed in a qualified rollover contribution 

11 to the designated Roth account maintained 

12 under such plan for the benefit of the individual 

13 to whom the distribution is made. 

14 ‘‘(C) OTHER RULES.—The rules of sub15 paragraphs (D), (E), and (F) of section 

16 408A(d)(3) (as in effect for taxable years begin17 ning after 2009) shall apply for purposes of 

18 this paragraph.’’. 

19 SEC. 206. PARTICIPANTS IN GOVERNMENT SECTION 457 

20 PLANS ALLOWED TO TREAT ELECTIVE DE21 FERRALS AS ROTH CONTRIBUTIONS. 

22 (a) IN GENERAL.—Section 402A(e)(1) of the Inter23 nal Revenue Code of 1986 (defining applicable retirement 

24 plan) is amended by striking ‘‘and’’ at the end of subpara25 graph (A), by striking the period at the end of subparaVerDate Mar 15 2010 23:07 Jul 01, 2010 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551

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1 graph (B) and inserting ‘‘, and’’, and by adding at the 

2 end the following: 

3 ‘‘(C) an eligible deferred compensation 

4 plan (as defined in section 457(b)) of an eligible 

5 employer described in section 457(e)(1)(A).’’. 

6 (b) ELECTIVE DEFERRALS.—Section 402A(e)(2) of 

7 such Code (defining elective deferral) is amended to read 

8 as follows: 

9 ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective 

10 deferral’ means— 

11 ‘‘(A) any elective deferral described in sub12 paragraph (A) or (C) of section 402(g)(3), and 

13 ‘‘(B) any elective deferral of compensation 

14 by an individual under an eligible deferred com15 pensation plan (as defined in section 457(b)) of 

16 an eligible employer described in section 

17 457(e)(1)(A).’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2010. 

21 SEC. 207. RESCINDING UNSPENT FEDERAL FUNDS. 

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law, of all available unobligated Federal funds, 

24 $4,000,000,000 in appropriated discretionary unexpired 

25 funds are rescinded. 


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1 (b) IMPLEMENTATION.—Not later than 60 days after 

2 the date of enactment of this Act, the Director of the Of3 fice of Management and Budget shall— 

4 (1) identify the accounts and amounts rescinded 

5 to implement subsection (a); and 

6 (2) submit a report to the Secretary of the 

7 Treasury and Congress of the accounts and amounts 

8 identified under paragraph (1) for rescission. 

9 (c) EXCEPTION.—This section shall not apply to the 

10 unobligated Federal funds of the Department of Defense 

11 or the Department of Veterans Affairs. 

12 TITLE III—BUDGETARY 

13 PROVISIONS 

14 SEC. 301. DETERMINATION OF BUDGETARY EFFECTS. 

15 (a) IN GENERAL.—The budgetary effects of this Act, 

16 for the purpose of complying with the Statutory Pay-As17 You-Go Act of 2010, shall be determined by reference to 

18 the latest statement titled ‘‘Budgetary Effects of PAYGO 

19 Legislation’’ for this Act, submitted for printing in the 

20 Congressional Record by the Chairman of the Senate 

21 Budget Committee, provided that such statement has been 

22 submitted prior to the vote on passage. 

23 (b) EMERGENCY DESIGNATION FOR CONGRESSIONAL

24 ENFORCEMENT.—In the House of Representatives, this 

25 Act is designated as an emergency for purposes of payVerDate Mar 15 2010 23:07 Jul 01, 2010 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3551.IS S3551

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1 as-you-go principles. In the Senate, this Act is designated 

2 as an emergency requirement pursuant to section 403(a) 

3 of S. Con. Res. 13 (111th Congress), the concurrent reso4 lution on the budget for fiscal year 2010. 

5 (c) EMERGENCY DESIGNATION FOR STATUTORY

6 PAYGO.—This Act is designated as an emergency re7 quirement pursuant to section 4(g) of the Statutory Pay8 As-You-Go Act of 2010 (Public Law 111–139; 2 U.S.C. 

9 933(g)). 

Æ 


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