S. 743 - State Fiscal Flexibility Act of 2021
DATED JAN. 1, 1899
To amend title VI of the Social Security Act to remove
the prohibition on States and territories against lowering their taxes.
IN THE SENATE OF THE UNITED STATES
MARCH 15, 2021
Mr. CRAPO (for himself, Mr. GRASSLEY, Mr. CORNYN, Mr. PORTMAN,
Mr. SCOTT of South Carolina, Mr. LANKFORD, Mr. DAINES, Mr. YOUNG,
and Mr. RISCH) introduced the following bill; which was read
twice and referred to the Committee on _____
To amend title VI of the Social Security Act to remove the prohibition on States and territories against lowering their taxes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "State Fiscal Flexibility Act of 2021".
SEC.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.