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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3192 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 3192

 To provide for a paid family and medical leave insurance program, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 2005

Mr. Stark (for himself, Mr. George Miller of California, Mr. Owens, Ms. 
   Woolsey, and Mr. Lantos) introduced the following bill; which was 
   referred to the Committee on Education and the Workforce, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
 To provide for a paid family and medical leave insurance program, and 
                          for other purposes.

    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 ``Paid Family and Medical Leave Act of 
2005''.

SEC. 2. CONGRESSIONAL FINDINGS.

    Congress finds the following:
            (1) Although family and medical leave laws have assisted 
        employees to balance the demands of the workplace with their 
        family responsibilities, more needs to be done to achieve the 
        goals of workforce stability and economic security.
            (2) All working Americans need to be able to take leave 
        from work, at times, to recover from their own serious illness, 
        to take care of a seriously ill family member, or to care for a 
        newborn or newly adopted child.
            (3) Americans who provide direct care for their family 
        members prevent the worsening of illnesses and promote strong 
        recovery. For example, when parents are able to attend to their 
        child in a hospital, the child's stay decreases by 31 percent, 
        enabling parents to make an expedited return to work.
            (4) For many workers, the promise of family or medical 
        leave is meaningless because they cannot afford to take leave 
        without pay.
            (5) Seventy-eight percent of eligible employees who need 
        but do not take family or medical leave do not take it because 
        they cannot afford to.
            (6) One in ten employees who receive less than full pay 
        while on leave are forced onto public assistance.
            (7) Forty-seven percent of women and men working in the 
        private sector lack any access to paid sick leave to help 
        compensate them if they become seriously ill. For those workers 
        who do have access to paid sick leave, few can use it to 
        receive a paycheck while caring for family members.
            (8) Family and medical leave benefits strengthen and 
        support the business sector through health care savings and 
        increased employee retention and productivity.
            (9) Organizations struggling to weather the current 
        economic downturn will have a bottom-line interest in 
        maintaining a stable workforce and retaining experienced 
        employees in whom they have already invested.
            (10) Demographic changes over the past few decades have 
        altered the face and needs of the work force. It is now common 
        for both parents to be in the workforce and many men and women 
        also find themselves as the primary caregiver for an elderly 
        spouse or parent.
            (11) Fifty-five percent of women with babies younger than 
        one are in the workforce, while 73 percent of women with 
        children one year or older are in the workforce.
            (12) Nearly two-thirds of Americans under the age of 60 
        expect to be responsible for the care of an elder relative in 
        the next ten years.

SEC. 3. DEFINITIONS.

    (a) In General.--Except as provided in subsection (b) of this Act, 
the definitions provided by section 101 of the Family and Medical Leave 
Act of 1993 (29 U.S.C. 2611) shall apply for purposes of this Act.
    (b) Additional Definitions.--For purposes of this Act, the 
following additional definitions shall apply:
            (1) Board of trustees.--The term ``Board of Trustees'' 
        means the Board of Trustees of the Family and Medical Leave 
        Trust Fund.
            (2) Calendar quarter and quarter.--The terms ``calendar 
        quarter'' and ``quarter'' mean a period of three calendar 
        months ending on March 31, June 30, September 30, or December 
        31.
            (3) Covered agency.--The term ``covered agency'', when used 
        with respect to a State, means the State agency referred to in 
        paragraph (1) of section 101(b), or the Commissioner of the 
        Social Security Administration if the Commissioner is carrying 
        out the State Family and Medical Insurance Program in the State 
        under paragraph (2) of such section.
            (4) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of the Social Security Administration.
            (5) Eligible employees.--Section 101(2) of the Family and 
        Medical Leave Act of 1993 (29 U.S.C. 2611(2)) shall not apply 
        for purposes of this Act, and the term ``eligible employee'' 
        means any of the following:
                    (A) An employee who has earned at least $250 in 
                each of the four calendar quarters prior to filing an 
                application for benefits under this title.
                    (B) A self-employed individual who has--
                            (i) elected to participate in the program 
                        under this title in accordance with such 
                        regulations as the Secretary of Labor shall 
                        prescribe;
                            (ii) earned at least $250 of self-
                        employment income in each of the four calendar 
                        quarters prior to filing an application for 
                        benefits under this title; and
                            (iii) paid tax under section 1401(c) of the 
                        Internal Revenue Code of 1986 with respect to 
                        such self-employment income.
                    (C) An employee who was covered by a voluntary 
                employer plan under section 101(d)(3) that has been 
                terminated or whose employer has eliminated such a 
                plan.
                    (D) A Federal officer or employee covered under 
                subchapter V of chapter 63 of title 5, United States 
                Code.
            (6) Employer.--For purposes of this title, subparagraph (A) 
        of section 101(4) of the Family and Medical Leave Act of 1993 
        (29 U.S.C. 2611(4)) shall be applied by substituting ``one'' 
        for ``50''.
            (7) Program.--The term ``Program'' means a State Family and 
        Medical Insurance Program established under section 101.
            (8) Managing trustee.--The term ``Managing Trustee'' means 
        the Managing Trustee of the the Board of Trustees of the Family 
        and Medical Leave Trust Fund.
            (9) Trust fund.--The term ``Trust Fund'' means the Family 
        and Medical Leave Trust Fund established under section 201.
            (10) Quarter of coverage.--The term ``quarter of coverage'' 
        means a period in which an individual earned wages or self-
        employment income of at least $250 in a quarter and paid taxes 
        on that income into the Family and Medical Leave Trust Fund.

             TITLE I--FAMILY AND MEDICAL INSURANCE PROGRAM

SEC. 101. ESTABLISHMENT.

    (a) Federal Program.--The Secretary of Labor shall establish a 
Family and Medical Insurance Program.
    (b) State Programs.--In carrying out the Federal Program, the 
Secretary may--
            (1) enter into a contract with a State under which--
                    (A) the State agrees to establish, and provide the 
                benefits described under this title in that State 
                through a Family and Medical Insurance Program; and
                    (B) the Secretary agrees to instruct the Managing 
                Trustee of the Family and Medical Leave Trust Fund, 
                established under section 201, to provide funds for 
                such benefits from the Fund; or
            (2) at the request of the Governor of a State, enter into 
        an interagency agreement with the Commissioner of the Social 
        Security Administration to establish, and provide the benefits 
        described under this title, through a State Family and Medical 
        Insurance Program directly in a State from funds provided to 
        the Commissioner by the managing trustee of the Fund.
    (c) State Application.--To be eligible to receive a contract under 
subsection (b)(1), a State shall submit an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may require. At a minimum, the application shall include 
information identifying the State agency to carry out the State Family 
and Medical Insurance Program.

SEC. 102. BENEFITS.

    (a) Entitlement.--Under a State Family and Medical Insurance 
Program, an eligible employee shall be entitled to a family and medical 
insurance benefit for a total of 12 workweeks of leave during any 12 
month period for one or more of the following reasons, subject to a 
waiting period of 7 consecutive days during each family and medical 
insurance period where no benefits are payable within that period:
            (1) Because of the birth of a son or daughter of the 
        employee and in order to care for such a son or daughter.
            (2) Because of the placement of a son or daughter with the 
        employee for adoption or foster care.
            (3) In order to care for a child, parent, spouse, or other 
        persons who are members of the employee's household who have a 
        serious medical condition.
            (4) Because of a serious health condition that makes the 
        employee unable to perform the functions of the position of 
        such employee.
    (b) Benefit Amount.--
            (1) In general.--An eligible employee's paid family and 
        medical insurance benefit for any workday on which the employee 
        takes leave as described in subsection (a) shall be equal to 55 
        percent of the daily equivalent of the weekly basic earnings of 
        the eligible employee when the leave commenced, reduced by any 
        amount received by the eligible employee for the same period 
        from any other source for the reasons referred to in such 
        subparagraph.
            (2) Weekly basic earnings.--The weekly basic earnings of an 
        eligible employee for purposes of this title shall be equal to 
        the weekly basic earnings of the eligible employee up to the 
        maximum amount specified in this subsection for the calendar 
        year in which the leave commenced. Not later than November 1 
        preceding each calendar year, the Secretary shall publish in 
        the Federal Register the maximum weekly amount for leave for 
        such calendar year.
            (3) Calendar year 2008.--With respect to leave provided in 
        calendar year 2008, the maximum weekly amount under this 
        subparagraph shall be $1,350.
            (4) Subsequent calendar years.--With respect to leave 
        provided in any calendar year after 2008, the maximum weekly 
        basic earnings referred to in clause (ii) shall equal the 
        product of $1,350 and the quotient obtained by dividing--
                    (A) the national average wage index (as defined in 
                section 209(k)(1) of the Social Security Act (42 U.S.C. 
                409(k)(1))) for the second calendar year preceding the 
                calendar year for which the determination is made; by
                    (B) the national average wage index (as so defined) 
                for calendar year 2008.
            (5) Rounding.--Each amount established under this 
        subsection for any calendar year shall be rounded to the 
        nearest $1, except that any amount so established that is a 
        multiple of $0.50 but not of $1 shall be rounded to the next 
        higher multiple of $1.
    (c) Application.--
            (1) In general.--To be eligible to receive a family and 
        medical insurance benefit under this title in a State, an 
        eligible employee shall submit an application to the covered 
        agency for the State at such time, in such manner, and 
        containing the information specified in paragraph (3) and such 
        additional information as the agency may require.
            (2) Irrevocability for self-employed individuals.--An 
        election by a self-employed individual to participate in the 
        Program shall be irrevocable.
            (3) Certification requirements.--The covered agency shall 
        require each of the following, as part of the application for 
        benefits under this section in connection with any leave:
                    (A) A certification, submitted in a timely manner, 
                issued by the health care provider of the eligible 
                employee or of the child, spouse, parent, or member of 
                the employee's household, as appropriate, and meeting 
                the requirements of section 103(b) of the Family and 
                Medical Leave Act of 1993 (29 U.S.C. 2613(b)) in 
                connection with such leave.
                    (B) In any case in which the covered agency has 
                reason to doubt the validity of the certification 
                provided under subparagraph (A), the Secretary may 
                require, at the expense of the covered agency, that the 
                eligible employee obtain the opinion of a second health 
                care provider designated or approved by the agency 
                concerning any information certified under subparagraph 
                (A).
                    (C) In any case in which the second opinion 
                described in subparagraph (B) differs from the opinion 
                in the original certification provided under 
                subparagraph (A), the covered agency may require, at 
                the expense of the agency, that the employee obtain the 
                opinion of a third health care provider designated or 
                approved jointly by the agency and the employee 
                concerning the information certified under subparagraph 
                (A). The opinion of the third health care provider 
                concerning such information shall be considered to be 
                final and shall be binding on the agency and the 
                employee.
    (d) Payment of Benefits.--
            (1) Payment from trust fund.--Benefit payments required to 
        be made under this section shall be made only from the Trust 
        Fund.
            (2) Certification and payment.--On the final decision of a 
        covered agency or on the final judgment of any court of 
        competent jurisdiction pursuant to paragraph (3) that any 
        person is entitled to any payment under this section--
                    (A) the covered agency shall certify to the 
                Managing Trustee of the Board of Trustees of the Trust 
                Fund the name and address of the person entitled to 
                receive such payment, the amount of such payment, and 
                the time at which such payment shall be made;
                    (B) the Managing Trustee shall pay the certified 
                amount from the Trust Fund to the covered agency; and
                    (C) the covered agency shall make the payment to 
                the person.
            (3) Review.--Any eligible employee dissatisfied with any 
        initial determination under this section shall be entitled to 
        reconsideration of the determination, and a hearing on the 
        determination, by the Secretary to the same extent as is 
        provided in section 205(b) of the Social Security Act (42 
        U.S.C. 405(b)) and to judicial review of the final decision 
        after such hearing as is provided in section 205(g) of the 
        Social Security Act (42 U.S.C. 405(g)).
            (4) Withholding of certification.--In any case in which a 
        review of the covered agency's decision is or may be sought 
        under paragraph (3), the covered agency may withhold 
        certification of payment pending such review.
            (5) Other compensation.--Except as provided in section 105, 
        no employee shall be eligible to receive paid leave benefits 
        under this title for any period during which--
                    (A) the employee is receiving worker's compensation 
                or compensation through unemployment insurance in 
                connection with the event for which the employee is 
                taking the leave; or
                    (B) the employee is receiving paid leave benefits 
                from an employer under a voluntary employer plan 
                approved under paragraph (3).
    (e) Regulations.--The Secretary shall issue regulations to carry 
out this subsection, including the determination of benefits for leave 
taken intermittently or on a reduced leave schedule, or for leave taken 
by a part-time, seasonal, or intermittent employee.

SEC. 103. VOLUNTARY EMPLOYER PLAN.

     The Secretary shall approve any voluntary plan of an employer as 
to which the Secretary finds that there is at least one employee in 
employment and all of the following exist:
            (1) The rights afforded to the covered employees are equal 
        or greater than those provided in the relevant Program.
            (2) The plan has been made available to all of the 
        employees of the employer employed in the United States or to 
        all employees at any one distinct, separate establishment 
        maintained by the employer in the United States. As used in 
        this paragraph, the term ``employees'' includes those 
        individuals in partial or other forms of short-time employment 
        and employees not in employment as the Secretary shall 
        prescribe by regulation.
            (3) A majority of the employees of the employer employed in 
        the United States or a majority of the employees employed at 
        any one distinct, separate establishment maintained by the 
        employer in the United States have consented to the plan.
            (4) The plan provides for insurance to be issued by an 
        admitted disability insurer approved by the Secretary or 
        equivalent.
            (5) The employer has consented to the plan and has agreed 
        to make the payroll deductions required, if any, and transmit 
        the proceeds to the disability insurer, if any.
            (6) The plan provides for the inclusion of future 
        employees.
            (7) The plan will be in effect for a period of not less 
        than one year and, thereafter, continuously unless the 
        Secretary finds that the employer or a majority of its 
        employees employed in the United States or a majority of the 
        employees employed at any one distinct, separate establishment 
        maintained by the employer in the United States covered by the 
        plan have given notice of the termination of the plan and paid 
        a fee to the Secretary in such amount as the Secretary deems 
        adequate to cover family and medical insurance benefits under 
        this title to all employees of the employer for a period of at 
        least four calendar months, plus an amount to pay 
        administrative costs related to processing and paying such 
        benefits. The notice shall be filed in writing with the 
        Secretary and shall be effective only on the anniversary of the 
        effective date of the plan next following the filing of the 
        notice, but in any event not less than 30 days from the time of 
        the filing of the notice. Amounts received by the Secretary 
        under this subparagraph shall be deposited in the Trust Fund.
            (8) The amount of deductions from the wages of an employee 
        in effect for any plan shall not be increased on any date other 
        than on the date of an anniversary of the effective date of the 
        plan.

SEC. 104. ADDITIONAL BENEFITS.

    (a) Additional State Programs.--Any State that has a separate State 
family and medical insurance program or temporary disability program 
may pay an eligible employee benefits under such separate program in 
addition to the benefits under this title or use the separate State 
program to pay for additional weeks of benefits after the benefits 
available under this title are exhausted.
    (b) Additional Employer Benefits.--Nothing in this title disallows 
an employer who participates in a State Program from providing an 
employee additional benefits in addition to the family and medical 
insurance benefit provided under this title. These additional employer 
benefits shall not reduce the amount of the benefit that an employee 
collects from the family and medical insurance benefit under the State 
Program.
    (c) Collective Bargaining.--Nothing in this title shall interfere 
with the right of unions to bargain collectively with employers to 
provide benefits that are better than the family and medical insurance 
benefit provided under this title.

SEC. 105. PROHIBITED ACTS BY EMPLOYER.

    (a) Interference With Rights.--It shall be unlawful for any 
employer to interfere with, restrain, or deny the exercise of or the 
attempt to exercise, any right provided under this title.
    (b) Discrimination.--It shall be unlawful for any employer to 
discharge or in any other manner discriminate against any individual 
for opposing any practice made unlawful by this title.
    (c) Interference With Proceedings or Inquiries.--It shall be 
unlawful for any person to discharge or in any other manner 
discriminate against any individual because such individual--
            (1) has filed any charge, or has instituted or caused to be 
        instituted any proceeding, under or related to this title;
            (2) has given, or is about to give, any information in 
        connection with any inquiry or proceeding relating to any right 
        provided under this title; or
            (3) has testified, or is about to testify, in any inquiry 
        or proceeding relating to any right provided under this title.

SEC. 106. ENFORCEMENT.

    (a) Civil Action by Employees.--
            (1) Liability.--Any employer who violates section 106 shall 
        be liable to any eligible employee affected--
                    (A) for damages equal to--
                            (i) the amount of--
                                    (I) any wages, salary, employment 
                                benefits, or other compensation denied 
                                or lost to such employee by reason of 
                                the violation; or
                                    (II) in a case in which wages, 
                                salary, employment benefits, or other 
                                compensation have not been denied or 
                                lost to the employee, any actual 
                                monetary losses sustained by the 
                                employee as a direct result of the 
                                violation, such as the cost of 
                                providing care, up to a sum equal to 12 
                                weeks of wages or salary for the 
                                employee;
                            (ii) the interest on the amount described 
                        in clause (i) calculated at the prevailing 
                        rate; and
                            (iii) an additional amount as liquidated 
                        damages equal to the sum of the amount 
                        described in clause (i) and the interest 
                        described in clause (ii), except that if an 
                        employer who has violated section 106 proves to 
                        the satisfaction of the court that the act or 
                        omission which violated the such subsection was 
                        in good faith and that the employer had 
                        reasonable grounds for believing that the act 
                        or omission was not a violation of such 
                        subsection, such court may, in the discretion 
                        of the court, reduce the amount of the 
                        liability to the amount and interest determined 
                        under clauses (i) and (ii), respectively; and
                    (B) for such equitable relief as may be 
                appropriate, including employment, reinstatement, and 
                promotion.
            (2) Right of action.--
                    (A) In general.--Except as provided in subparagraph 
                (B), an action to recover the damages or equitable 
                relief prescribed in paragraph (1) may be maintained 
                against any employer (including a public agency) in any 
                Federal or State court of competent jurisdiction by any 
                one or more employees for and on behalf of--
                            (i) the employees; or
                            (ii) the employees and other employees 
                        similarly situated.
                    (B) Limitation.--The right provided by subparagraph 
                (A) to bring an action by or on behalf of any employee 
                shall terminate--
                            (i) on the filing of a complaint by the 
                        Secretary in an action under subsection (b)(3) 
                        in which restraint is sought of any further 
                        delay in the payment of the amount described in 
                        paragraph (1)(A) to such employee by an 
                        employer responsible under paragraph (1) for 
                        the payment; or
                            (ii) on the filing of a complaint by the 
                        Secretary in an action under paragraphs (1) or 
                        (2) of subsection (b) in which a recovery is 
                        sought of the damages described in paragraph 
                        (1)(A) owing to an eligible employee by an 
                        employer liable under paragraph (1),
                unless the action described in clauses (i) or (ii) is 
                dismissed without prejudice on motion of the Secretary.
            (3) Fees and costs.--The court in an action brought under 
        this subsection shall, in addition to any judgment awarded to 
        the plaintiff, allow a reasonable attorney's fee, reasonable 
        expert witness fees, and other costs of the action to be paid 
        by the defendant.
    (b) Actions by the Secretary.--
            (1) Administrative action.--The Secretary shall receive, 
        investigate, and attempt to resolve complaints of violations of 
        section 106 in the same manner that the Secretary receives, 
        investigates, and attempts to resolve complaints of violations 
        of sections 6 and 7 of the Fair Labor Standards Act of 1938 (29 
        U.S.C. 206 and 207).
            (2) Civil action.--
                    (A) Right of action.--The Secretary may bring an 
                action in any court of competent jurisdiction to 
                recover the damages described in paragraph (1)(A).
                    (B) Sums recovered.--Any sums recovered by the 
                Secretary pursuant to this paragraph shall be held in a 
                special deposit account and shall be paid, on order of 
                the Secretary, directly to each employee affected. Any 
                such sums not paid to an employee because of inability 
                to do so within a period of 3 years shall be deposited 
                into the Treasury of the United States as miscellaneous 
                receipts.
            (3) Action for injunction by the secretary.--The district 
        courts of the United States shall have jurisdiction, for cause 
        shown, in an action brought by the Secretary--
                    (A) to restrain violations of prohibited acts 
                section, including the restraint of any withholding of 
                payment of wages, salary, employment benefits, or other 
                compensation, plus interest, found by the court to be 
                due to eligible employees; or
                    (B) to award such other equitable relief as may be 
                appropriate, including employment, reinstatement, and 
                promotion.
            (4) Solicitor of labor.--The Solicitor of Labor may appear 
        for and represent the Secretary on any litigation brought under 
        this subsection.
    (c) Limitation.--
            (1) Except as provided in paragraph (2), an action may be 
        brought under subsections (a) or (b) not later than 2 years 
        after the date of the last event constituting the alleged 
        violation for which the action is brought.
            (2) Willful violation.--In the case of such action brought 
        for a willful violation of section 106, such action may be 
        brought within 3 years of the date of the last event 
        constituting the alleged violation for which such action is 
        brought.
            (3) Commencement.--In determining when an action is 
        commenced for the purposes of this subsection, it shall be 
        considered to be commenced on the date when the complaint is 
        filed.
    (d) False Statements.--If the Secretary finds that any individual 
falsely certifies the medical condition of any person in order to 
obtain family and medical insurance benefits under this title with the 
intent to defraud, whether for the maker or for any other person, the 
Secretary shall assess a penalty against the individual in an amount up 
to 100 percent of the benefits paid as a result of the false 
certification. Penalties collected under this section shall be 
deposited in the Trust Fund, notwithstanding the provisions of title 
31, United States Code.
    (e) Investigative Authority.--
            (1) In general.--To ensure compliance with the provisions 
        of this title, or any regulation or order issued under this 
        title, the Secretary shall have, subject to paragraph (3), the 
        investigative authority provided under section 11(a) of the 
        Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)).
            (2) Obligation to keep and preserve records.--Any employer 
        shall make, keep, and preserve records pertaining to compliance 
        with this title in accordance with section 11(c) of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 211(c)) and in 
        accordance with regulations issued by the Secretary.
            (3) Required submissions generally limited to an annual 
        basis.--The Secretary shall not under the authority of this 
        subsection require any employer or any plan, fund, or program 
        to submit to the Secretary any books or records more than once 
        during any 12-month period, unless the Secretary has reasonable 
        cause to believe there may exist a violation of this title or 
        any regulation or order issued pursuant to this title, or is 
        investigating a charge pursuant to paragraph (2).
            (4) Subpoena power.--For the purposes of any investigation 
        provided for in this section, the Secretary shall have the 
        subpoena authority provided for under section 9 of the Fair 
        Labor Standards Act of 1938 (29 U.S.C. 209).

SEC. 107. CRIMINAL PENALTIES.

    Whoever--
            (1) makes or causes to be made any false statement in 
        support of an application for benefits under this title;
            (2) knowingly presents or causes to be presented any false 
        written or oral material statement in support of any claim for 
        benefits under this title;
            (3) knowingly solicits, receives, offers, pays, or accepts 
        any rebate, refund, commission, preference, patronage, 
        dividend, discount, or other consideration, whether in the form 
        of money or otherwise, as compensation or inducement for 
        soliciting a claimant to apply for benefits under this title, 
        except to the extent authorized by a law of the United States; 
        or
            (4) knowingly assists, abets, solicits, or conspires with 
        any person who engages in an act that is prohibited under 
        paragraph (1), (2), or (3),
shall be guilty of a felony and upon conviction shall be fined under 
title 18, United States Code, or imprisoned for not more than 5 years, 
or both.

SEC. 108. EDUCATION PROGRAMS.

    (a) Authority.--The Secretary shall develop and maintain a program 
of education concerning the paid family medical and insurance rights 
and benefits under this title.
    (b) Notice to Employers.--The Secretary shall provide to each 
employer of employees subject to this title a notice informing 
employees of their family and medical insurance rights and benefits 
under this title. The notice shall be given by every employer to each 
new employee hired, and to each employee leaving work under the allowed 
circumstances of this title.

SEC. 109. EFFECTIVE DATE.

    This title shall take effect on January 1, 2006, and shall apply to 
periods of leave that commence on or after January 1, 2008.

             TITLE II--FAMILY AND MEDICAL LEAVE TRUST FUND

SEC. 201. ESTABLISHMENT.

    (a) In General.--There is created in the Treasury of the United 
States a trust fund to be known as the Family and Medical Leave Trust 
Fund. The Trust Fund shall consist of such amounts as may be deposited 
in, or appropriated to, such fund as provided in this section.
    (b) Appropriations to Trust Fund.--
            (1) Amounts appropriated.--There is appropriated to the 
        Trust Fund for fiscal year 2006 and each fiscal year 
        thereafter, out of any moneys in the Treasury not otherwise 
        appropriated, amounts equivalent to 100 percent of--
                    (A) the taxes imposed by section 3111(c) of the 
                Internal Revenue Code of 1986 with respect to wages (as 
                defined in section 3121 of such Code) reported to the 
                Secretary of the Treasury or the Secretary's delegate 
                pursuant to subtitle F of such Code on or after January 
                1, 2006, as determined by the Secretary by applying the 
                applicable rates of tax under such sections to such 
                wages, which wages shall be certified by the 
                Commissioner of Social Security on the basis of the 
                records of wages established and maintained by the 
                Commissioner in accordance with such reports; and
                    (B) the taxes imposed by section 1401(c) of such 
                Code with respect to self-employment income (as defined 
                in section 1402 of such Code) reported to the Secretary 
                of the Treasury or the Secretary's delegate on tax 
                returns under subtitle F of such Code, as determined by 
                the Secretary by applying the applicable rate of tax 
                under such section 1401(c) to such self-employment 
                income, which self-employment income shall be certified 
                by the Commissioner of Social Security on the basis of 
                the records of self-employment income established and 
                maintained by the Commissioner in accordance with such 
                returns.
            (2) Transfers.--Such appropriated amounts shall be 
        transferred from time to time from the general fund of the 
        Treasury to the Trust Fund. Such amounts shall be determined on 
        the basis of estimates by the Secretary of the Treasury of the 
        taxes, specified in paragraph (1), paid to or deposited into 
        the Treasury, and proper adjustments shall be made in amounts 
        subsequently transferred to the extent prior estimates were in 
        excess of or were less than such taxes.
            (3) Investments.--All amounts transferred to the Trust Fund 
        under paragraph (2) shall be invested by the Managing Trustee 
        referred to in section 202(c) in the same manner and to the 
        same extent as the other assets of the Trust Fund.

SEC. 202. BOARD OF TRUSTEES.

    (a) Establishment and Membership.--With respect to the Trust Fund, 
there is established a body to be known as the Board of Trustees of the 
Trust Fund which shall be composed of the Secretary of the Treasury, 
the Secretary of Labor, the Commissioner of Social Security, and the 
Secretary of Health and Human Services, all ex officio, and of two 
members of the public (both of whom may not be from the same political 
party), who shall be nominated by the President, by and with the advice 
and consent of the Senate.
    (b) Terms and Vacancies.--Members of the Board of Trustees shall 
serve for a period of 4 years. A member of the Board of Trustees 
nominated and confirmed as a member of the public to fill a vacancy 
occurring during a term shall be nominated and confirmed only for the 
remainder of such term. An individual nominated and confirmed as a 
member of the public may serve in such position after the expiration of 
such member's term until the earlier of the date on which the member's 
successor takes office or the date on which a report of the Board is 
first issued under paragraph (2) after the expiration of the member's 
term.
    (c) Managing Trustee and Secretary.--The Secretary of the Treasury 
shall be the Managing Trustee of the Board of Trustees. The Secretary 
of Labor shall serve as the Secretary of the Board of Trustees.
    (d) Basic Duties of the Board of Trustees.--The Board of Trustees 
shall meet not less frequently than once each calendar year. It shall 
be the duty of the Board of Trustees to--
            (1) hold the Trust Fund;
            (2) report to Congress not later than April 1 of each 
        year--
                    (A) on the operation and status of the Trust Fund 
                during the fiscal year preceding the fiscal year in 
                which the report is made; and
                    (B) on the expected operation and status of the 
                Trust Fund during the fiscal year in which the report 
                is made and the next two fiscal years;
            (3) report immediately to Congress whenever the Board is of 
        the opinion that the amount in the Trust Fund is unduly small; 
        and
            (4) review the general policies followed in managing the 
        Trust Fund, and recommend changes in such policies, including 
        necessary changes in the provisions of law that govern the way 
        in which the Trust Fund is to be managed.
    (e) Requirements Relating to Annual Report.--The report provided 
for in subsection (d)(2) shall include a statement of the assets of, 
and the disbursements made from, the Trust Fund during the fiscal year 
preceding the fiscal year in which the report is made, an estimate of 
the expected income to, and disbursements to be made from, the Trust 
Fund during the fiscal year in which the report is made and each of the 
next two fiscal years, and a statement of the actuarial status of the 
Trust Fund. Such report shall also include an actuarial opinion by an 
appropriate employee of the Department of Labor certifying that the 
techniques and methodologies used for the report are generally accepted 
within the actuarial profession and that the assumptions and cost 
estimates used for the report are reasonable. Such report shall be 
printed as a document of the House of Representatives for the session 
of the Congress to which the report is made.
    (f) Liability.--A person serving as a member of the Board of 
Trustees shall not be considered to be a fiduciary and shall not be 
personally liable for actions taken in such capacity with respect to 
the Trust Fund.

SEC. 203. INVESTMENT OF THE TRUST FUND.

    (a) Obligations.--It shall be the duty of the Managing Trustee to 
invest such portion of the Trust Fund as is not, in the trustee's 
judgment, required to meet current withdrawals. Such investments may be 
made only in interest-bearing obligations of the United States or in 
obligations guaranteed as to both principal and interest by the United 
States.
    (b) Acquisition.--The obligations referred to in subsection (a) may 
be acquired--
            (1) on original issue at the issue price; or
            (2) by purchase of outstanding obligations at the market 
        price.
    (c) Obligations Issued for Purchase by Trust Fund.--The purposes 
for which obligations of the United States may be issued under chapter 
31 of title 31, United States Code, are extended to authorize the 
issuance at par of public debt obligations for purchase by the Trust 
Fund. Such obligations issued for purchase by the Trust Fund shall have 
dates of maturity fixed with due regard for the needs of the Trust 
Fund. Such obligations shall bear interest at a rate equal to--
            (1) except as provided in paragraph (2), the average market 
        yield (computed by the Managing Trustee on the basis of market 
        quotations as of the end of the calendar month preceding the 
        date of such issue) on all marketable interest-bearing 
        obligations of the United States forming a part of the public 
        debt that are not due or callable until after the expiration of 
        four years from the end of such calendar month; or
            (2) in a case in which such average market yield is not a 
        multiple of 0.1 percent, the multiple of 0.1 percent nearest 
        such market yield.
    (d) Other Obligations.--The Managing Trustee may purchase interest-
bearing obligations of the United States that are not described in 
subsection (c) or obligations guaranteed as to both principal and 
interest by the United States, on original issue or at the market 
price, only in cases in which the trustee determines that the purchase 
of obligations described in this paragraph is in the public interest.
    (e) Disposition and Redemption of Obligations.--Any obligations 
acquired by the Trust Fund (except public debt obligations issued 
exclusively to the Trust Fund) may be sold by the Managing Trustee at 
the market price, and such public debt obligations may be redeemed at 
par plus accrued interest.
    (f) Crediting of Interest and Proceeds.--The interest on, and the 
proceeds from the sale or redemption of, any obligations held in the 
Trust Fund shall be credited to and form a part of the Trust Fund.

SEC. 204. PAYMENTS FROM TRUST FUND.

    The Managing Trustee shall pay from time to time from the Trust 
Fund such amounts as the Secretary of Labor certifies are necessary to 
make the payments provided for by section 102, and payments with 
respect to administrative expenses under section 205.

SEC. 205. ADMINISTRATIVE EXPENSES.

    (a) Availability of Trust Fund.--Under regulations that shall be 
prescribed by the Secretary of Labor, funds shall be made available 
from the Trust Fund in connection with the administration of this Act 
and the administration of related provisions of the Internal Revenue 
Code of 1986 in the same manner and extent as funds are made available 
from the trust funds referred to in section 201(g) of the Social 
Security Act (42 U.S.C. 401(g)) in connection with the administration 
of the relevant provisions referred to in such section.
    (b) Authorization of Appropriations.--There are authorized to be 
made available for expenditure, out of the Trust Fund, such amounts as 
Congress may determine to be appropriate to pay--
            (1) the costs of the part of the administration of this Act 
        for which the Secretary of Labor is responsible; and
            (2) the costs of carrying out the functions of the Social 
        Security Administration specified in section 232 of the Social 
        Security Act (42 U.S.C. 432) (made applicable under subsection 
        (j)), that relate to the administration of provisions of the 
        Internal Revenue Code of 1986, other than those costs excluded 
        under the regulations of the Secretary of Labor prescribed 
        pursuant to paragraph (1).
    (c) Gifts and Bequests.--The Managing Trustee may accept on behalf 
of the United States money gifts and bequests made unconditionally to 
the Trust Fund for the benefit of the Trust Fund or any activity 
financed through the Trust Fund and such gifts and bequests shall be 
deposited into the Trust Fund.
    (d) Processing of Tax Data.--Section 232 of the Social Security Act 
(42 U.S.C. 432) shall apply with respect to this Act, in the same 
manner and to the same extent as such section applies with respect to 
title II of the Social Security Act (42 U.S.C. 401 et seq.).

SEC. 206. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    (a) Tax on Employers.--Section 3111 of such Code (relating to tax 
on employers) is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Family and Medical Insurance.--
            ``(1) In general.--In addition to the taxes imposed by 
        subsections (a) and (b), there is imposed on every employer an 
        excise tax, with respect to having individuals in such 
        employer's employ, equal to 0.4 percent of the wages paid by 
        such employer with respect to employment (as defined in section 
        3121(b)).
            ``(2) Exception for employers with equivalent or better 
        plan.--Paragraph (1) shall not apply with respect to a period 
        of employment by an employer during which the Secretary of 
        Labor determines the employer has in effect a plan which is 
        equivalent to or better than the Family and Medical Insurance 
        Program (established under the Family and Medical Insurance Act 
        of 2005). For purposes of the preceding sentence, the Secretary 
        of Labor shall prescribe such regulations as may be appropriate 
        or necessary, including regulations requiring documentation of 
        employer programs.''.
    (b) Self-Employment Tax.--Section 1401 of such Code is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Family and Medical Insurance.--In addition to the taxes 
imposed by subsections (a) and (b), there is imposed for each taxable 
year, on the self-employment income of every individual who has elected 
to participate in the Family and Medical Insurance Program (established 
under the Family and Medical Insurance Act of 2005) a tax equal to 0.4 
percent of the amount of the self-employment income for such taxable 
year.''.
    (c) Effective Date.--
            (1) Employment taxes.--The amendments made by subsection 
        (a) shall apply to wages paid on or after January 1, 2006.
            (2) Self-employment tax.--The amendments made by subsection 
        (b) shall apply to taxable years beginning on or after January 
        1, 2006.
                                 <all>
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