Bill Text: MI SCR0032 | 2019-2020 | 100th Legislature | Introduced
Bill Title: A concurrent resolution to memorialize the Congress of the United States to enact legislation to allow employees to disenroll from dependent care flexible spending accounts and withdraw unused funds.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-10-06 - Placed On Order Of Resolutions [SCR0032 Detail]
Download: Michigan-2019-SCR0032-Introduced.html
senate Concurrent Resolution No.32
Senator Lucido offered the following concurrent resolution:
Whereas, Dependent care flexible spending accounts (FSAs) allow employees to set aside a portion of their income to be used pre-tax for certain expenses. Contributions to these plans can be used for various dependent care expenses, including, but not limited to, preschool, summer day camp, and before and after school programs; and
Whereas, Dependent care FSAs are subject to strict federal regulation. Participants must estimate future expenses at the beginning of each plan year and cannot change their monthly contribution, except in limited circumstances. Plans are also subject to a "use-or-lose" rule, meaning that unused funds are forfeited by the employee at the end of each plan year; and
Whereas, The COVID-19 Pandemic has significantly altered the dependent care landscape and has put millions of Americans at risk of forfeiting unused balances. In order to mitigate the virus's spread, many childcare facilities in Michigan and around the country have temporarily closed or reduced operations. In addition, many employees are working fewer hours or working from home, reducing dependent care needs. These families are at risk of losing thousands of dollars due to circumstances completely beyond their control; and
Whereas, Congress should enact legislation to temporarily allow dependent care FSA participants to disenroll from these plans and withdraw funds from these accounts. While the Internal Revenue Service (IRS) has already taken steps to allow mid-year amendments to reduce or end monthly contributions, funds that had already been deposited are still subject to the "use-or-lose" rule; and
Whereas, During the deepest economic recession in nearly a century, allowing American families to needlessly forfeit income would be counterproductive to the nation's recovery. In contrast, allowing families to withdraw these funds would help them to meet necessary expenses and increase their spending power to support businesses during this crisis; now, therefore, be it
Resolved by the Senate (the House of Representatives concurring), That we memorialize the Congress of the United States to enact legislation to allow employees to disenroll from dependent care flexible spending accounts and withdraw unused funds; and be it further
Resolved, That copies of this resolution be transmitted to the Speaker of the United States House of Representatives, the President of the United States Senate, and the members of the Michigan congressional delegation.
