Sec. 5. Funding for State administration option for legacy States
986 words·~4 min read·
/bill/118/s/1714/is/section-5A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In each calendar year beginning with calendar year 2025, the Commissioner shall make a grant to each State that, for the calendar year preceding such calendar year, was a legacy State and that met the data sharing requirements of subsection (e), in an amount equal to the lesser of— an amount, as estimated by the Commissioner, equal to the total amount of comprehensive paid leave benefits that would have been paid under section 4 (including the costs to the Commissioner to administer such benefits, not to exceed (for purposes of estimating such total amount under this subparagraph) 7 percent of the total amount of such benefits paid) to individuals who received paid family and medical leave benefits under a State law described in paragraph
(1)or
(3)of subsection
(b)during the calendar year preceding such calendar year if the State had not been a legacy State for such preceding calendar year; or an amount equal to the total cost of paid family and medical leave benefits under a State law described in paragraph
(1)or
(3)of subsection
(b)for the calendar year preceding such calendar year, including— any paid family and medical leave benefits provided by an employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan) as described in subsection (d); and the full cost to the State of administering such law (except that such cost may not exceed 7 percent of the total amount of paid family and medical leave benefits paid under such State law). In any case in which, during any calendar year, the Commissioner has reason to believe that a State will be a legacy State and meet the data sharing requirements of subsection
(e)for such calendar year, the Commissioner may make estimated payments during such calendar year of the grant which would be paid to such State in the succeeding calendar year, to be adjusted as appropriate in the succeeding calendar year. For purposes of this section, the term legacy State for a calendar year means a State with respect to which the Commissioner determines that— the State has enacted, not later than the date of enactment of this Act, a State law that provides paid family and medical leave benefits; for any calendar year that begins before the date that is 3 years after the date of enactment of this Act, the State certifies to the Commissioner that the State intends to remain a legacy State and meet the data sharing requirements of subsection
(e)at least through the first calendar year that begins on or after such date; and for any calendar year that begins on or after such date, a State law of the State provides for a State program to remain in effect throughout such calendar year that provides comprehensive paid family and medical leave benefits (which may be paid directly by the State or, if permitted under such State law, by an employer pursuant to such State law)— for at least 12 full workweeks of leave during each 12-month period to at least all of those individuals in the State who would be eligible for comprehensive paid leave benefits under section 4 (without regard to section 2(5)(C)), except that the State shall provide such benefits for leave from employment by the State or any political subdivision thereof, and may elect to provide such benefits for leave from any other governmental employment; and at a wage replacement rate that is at least equivalent to the wage replacement rate under the comprehensive paid leave benefit program under section 4 (without regard to section 2(5)(C)). For purposes of this Act, the term covered employment under the law of a legacy State means employment (or self-employment) with respect to which an individual would be eligible to receive paid family and medical benefits under the State law of a State, as described in paragraph
(1)or
(3)of subsection (b), during any period during which such State is a legacy State. In the case of a State that permits paid family and medical leave benefits to be provided by an employer (whether directly, under a contract with an insurer, or provided through a multiemployer plan) pursuant to a State law described in paragraph
(1)or
(3)of subsection (b)— such benefits shall be considered, for all purposes under this Act, paid family and medical leave benefits under the law of a legacy State; and leave for which such benefits are paid shall be considered, for all such purposes, leave from covered employment under the law of a legacy State. In any case in which paid family and medical leave benefits are provided by 1 or more employers (whether directly, under a contract with an insurer, or provided through a multiemployer plan) in a legacy State pursuant to a State law described in paragraph
(1)or
(3)of subsection (b), the State, upon the receipt of any grant amount under subsection (a), may distribute an appropriate share of such grant to each such employer. As a condition of receiving a grant under subsection
(a)in a calendar year, a State shall enter into an agreement with the Commissioner under which the State shall provide the Commissioner— with information, to be provided periodically as determined by the Commissioner, concerning individuals who received a paid leave benefit under a State law described in paragraph
(1)or
(3)of subsection (b), including— each individual’s name; information to establish the individual’s identity; dates for which such paid leave benefits were paid; the amount of such paid leave benefit; and to the extent available, such other information concerning such individuals as necessary for the purpose of carrying out this section and section 2(5)(C); not later than July 1 of such calendar year, the amount described in subsection (a)(2) for the calendar year preceding such calendar year; and such other information as needed to determine compliance with grant requirements.