I 

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. 

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. 

4 This Act may be cited as the ‘‘Paid Family and Med5 ical Leave Act of 2005’’. 

6 SEC. 2. CONGRESSIONAL FINDINGS. 

7 Congress finds the following: 
2 

•HR 3192 IH 

1 (1) Although family and medical leave laws 

2 have assisted employees to balance the demands of 

3 the workplace with their family responsibilities, more 

4 needs to be done to achieve the goals of workforce 

5 stability and economic security. 

6 (2) All working Americans need to be able to 

7 take leave from work, at times, to recover from their 

8 own serious illness, to take care of a seriously ill 

9 family member, or to care for a newborn or newly 

10 adopted child. 

11 (3) Americans who provide direct care for their 

12 family members prevent the worsening of illnesses 

13 and promote strong recovery. For example, when 

14 parents are able to attend to their child in a hos15 pital, the child’s stay decreases by 31 percent, ena16 bling parents to make an expedited return to work. 

17 (4) For many workers, the promise of family or 

18 medical leave is meaningless because they cannot af19 ford to take leave without pay. 

20 (5) Seventy-eight percent of eligible employees 

21 who need but do not take family or medical leave do 

22 not take it because they cannot afford to. 

23 (6) One in ten employees who receive less than 

24 full pay while on leave are forced onto public assist25 ance. 
3 

•HR 3192 IH 

1 (7) Forty-seven percent of women and men 

2 working in the private sector lack any access to paid 

3 sick leave to help compensate them if they become 

4 seriously ill. For those workers who do have access 

5 to paid sick leave, few can use it to receive a pay6 check while caring for family members. 

7 (8) Family and medical leave benefits strength8 en and support the business sector through health 

9 care savings and increased employee retention and 

10 productivity. 

11 (9) Organizations struggling to weather the 

12 current economic downturn will have a bottom-line 

13 interest in maintaining a stable workforce and re14 taining experienced employees in whom they have al15 ready invested. 

16 (10) Demographic changes over the past few 

17 decades have altered the face and needs of the work 

18 force. It is now common for both parents to be in 

19 the workforce and many men and women also find 

20 themselves as the primary caregiver for an elderly 

21 spouse or parent. 

22 (11) Fifty-five percent of women with babies 

23 younger than one are in the workforce, while 73 per24 cent of women with children one year or older are 

25 in the workforce. 
4 

•HR 3192 IH 

1 (12) Nearly two-thirds of Americans under the 

2 age of 60 expect to be responsible for the care of an 

3 elder relative in the next ten years. 

4 SEC. 3. DEFINITIONS. 

5 (a) IN GENERAL.—Except as provided in subsection 

6 (b) of this Act, the definitions provided by section 101 of 

7 the Family and Medical Leave Act of 1993 (29 U.S.C. 

8 2611) shall apply for purposes of this Act. 

9 (b) ADDITIONAL DEFINITIONS.—For purposes of this 

10 Act, the following additional definitions shall apply: 

11 (1) BOARD OF TRUSTEES.—The term ‘‘Board 

12 of Trustees’’ means the Board of Trustees of the 

13 Family and Medical Leave Trust Fund. 

14 (2) CALENDAR QUARTER AND QUARTER.—The 

15 terms ‘‘calendar quarter’’ and ‘‘quarter’’ mean a pe16 riod of three calendar months ending on March 31, 

17 June 30, September 30, or December 31. 

18 (3) COVERED AGENCY.—The term ‘‘covered 

19 agency’’, when used with respect to a State, means 

20 the State agency referred to in paragraph (1) of sec21 tion 101(b), or the Commissioner of the Social Secu22 rity Administration if the Commissioner is carrying 

23 out the State Family and Medical Insurance Pro24 gram in the State under paragraph (2) of such sec25 tion. 
5 

•HR 3192 IH 

1 (4) COMMISSIONER.—The term ‘‘Commis2 sioner’’ means the Commissioner of the Social Secu3 rity Administration. 

4 (5) ELIGIBLE EMPLOYEES.—Section 101(2) of 

5 the Family and Medical Leave Act of 1993 (29 

6 U.S.C. 2611(2)) shall not apply for purposes of this 

7 Act, and the term ‘‘eligible employee’’ means any of 

8 the following: 

9 (A) An employee who has earned at least 

10 $250 in each of the four calendar quarters prior 

11 to filing an application for benefits under this 

12 title. 

13 (B) A self-employed individual who has— 

14 (i) elected to participate in the pro15 gram under this title in accordance with 

16 such regulations as the Secretary of Labor 

17 shall prescribe; 

18 (ii) earned at least $250 of self-em19 ployment income in each of the four cal20 endar quarters prior to filing an applica21 tion for benefits under this title; and 

22 (iii) paid tax under section 1401(c) of 

23 the Internal Revenue Code of 1986 with 

24 respect to such self-employment income. 
6 

•HR 3192 IH 

1 (C) An employee who was covered by a vol2 untary employer plan under section 101(d)(3) 

3 that has been terminated or whose employer 

4 has eliminated such a plan. 

5 (D) A Federal officer or employee covered 

6 under subchapter V of chapter 63 of title 5, 

7 United States Code. 

8 (6) EMPLOYER.—For purposes of this title, 

9 subparagraph (A) of section 101(4) of the Family 

10 and Medical Leave Act of 1993 (29 U.S.C. 2611(4)) 

11 shall be applied by substituting ‘‘one’’ for ‘‘50’’. 

12 (7) PROGRAM.—The term ‘‘Program’’ means a 

13 State Family and Medical Insurance Program estab14 lished under section 101. 

15 (8) MANAGING TRUSTEE.—The term ‘‘Man16 aging Trustee’’ means the Managing Trustee of the 

17 the Board of Trustees of the Family and Medical 

18 Leave Trust Fund. 

19 (9) TRUST FUND.—The term ‘‘Trust Fund’’ 

20 means the Family and Medical Leave Trust Fund 

21 established under section 201. 

22 (10) QUARTER OF COVERAGE.—The term 

23 ‘‘quarter of coverage’’ means a period in which an 

24 individual earned wages or self-employment income 

25 of at least $250 in a quarter and paid taxes on that 
7 

•HR 3192 IH 

1 income into the Family and Medical Leave Trust 

2 Fund. 

3 TITLE I—FAMILY AND MEDICAL 

4 INSURANCE PROGRAM 

5 SEC. 101. ESTABLISHMENT. 

6 (a) FEDERAL PROGRAM.—The Secretary of Labor 

7 shall establish a Family and Medical Insurance Program. 

8 (b) STATE PROGRAMS.—In carrying out the Federal 

9 Program, the Secretary may— 

10 (1) enter into a contract with a State under 

11 which— 

12 (A) the State agrees to establish, and pro13 vide the benefits described under this title in 

14 that State through a Family and Medical Insur15 ance Program; and 

16 (B) the Secretary agrees to instruct the 

17 Managing Trustee of the Family and Medical 

18 Leave Trust Fund, established under section 

19 201, to provide funds for such benefits from the 

20 Fund; or 

21 (2) at the request of the Governor of a State, 

22 enter into an interagency agreement with the Com23 missioner of the Social Security Administration to 

24 establish, and provide the benefits described under 

25 this title, through a State Family and Medical In-
8 

•HR 3192 IH 

1 surance Program directly in a State from funds pro2 vided to the Commissioner by the managing trustee 

3 of the Fund. 

4 (c) STATE APPLICATION.—To be eligible to receive 

5 a contract under subsection (b)(1), a State shall submit 

6 an application to the Secretary at such time, in such man7 ner, and containing such information as the Secretary may 

8 require. At a minimum, the application shall include infor9 mation identifying the State agency to carry out the State 

10 Family and Medical Insurance Program. 

11 SEC. 102. BENEFITS. 

12 (a) ENTITLEMENT.—Under a State Family and Med13 ical Insurance Program, an eligible employee shall be enti14 tled to a family and medical insurance benefit for a total 

15 of 12 workweeks of leave during any 12 month period for 

16 one or more of the following reasons, subject to a waiting 

17 period of 7 consecutive days during each family and med18 ical insurance period where no benefits are payable within 

19 that period: 

20 (1) Because of the birth of a son or daughter 

21 of the employee and in order to care for such a son 

22 or daughter. 

23 (2) Because of the placement of a son or 

24 daughter with the employee for adoption or foster 

25 care. 
9 

•HR 3192 IH 

1 (3) In order to care for a child, parent, spouse, 

2 or other persons who are members of the employee’s 

3 household who have a serious medical condition. 

4 (4) Because of a serious health condition that 

5 makes the employee unable to perform the functions 

6 of the position of such employee. 

7 (b) BENEFIT AMOUNT.— 

8 (1) IN GENERAL.—An eligible employee’s paid 

9 family and medical insurance benefit for any work10 day on which the employee takes leave as described 

11 in subsection (a) shall be equal to 55 percent of the 

12 daily equivalent of the weekly basic earnings of the 

13 eligible employee when the leave commenced, re14 duced by any amount received by the eligible em15 ployee for the same period from any other source for 

16 the reasons referred to in such subparagraph. 

17 (2) WEEKLY BASIC EARNINGS.—The weekly 

18 basic earnings of an eligible employee for purposes 

19 of this title shall be equal to the weekly basic earn20 ings of the eligible employee up to the maximum 

21 amount specified in this subsection for the calendar 

22 year in which the leave commenced. Not later than 

23 November 1 preceding each calendar year, the Sec24 retary shall publish in the Federal Register the max-
10 

•HR 3192 IH 

1 imum weekly amount for leave for such calendar 

2 year. 

3 (3) CALENDAR YEAR 2008.—With respect to 

4 leave provided in calendar year 2008, the maximum 

5 weekly amount under this subparagraph shall be 

6 $1,350. 

7 (4) SUBSEQUENT CALENDAR YEARS.—With re8 spect to leave provided in any calendar year after 

9 2008, the maximum weekly basic earnings referred 

10 to in clause (ii) shall equal the product of $1,350 

11 and the quotient obtained by dividing— 

12 (A) the national average wage index (as 

13 defined in section 209(k)(1) of the Social Secu14 rity Act (42 U.S.C. 409(k)(1))) for the second 

15 calendar year preceding the calendar year for 

16 which the determination is made; by 

17 (B) the national average wage index (as so 

18 defined) for calendar year 2008. 

19 (5) ROUNDING.—Each amount established 

20 under this subsection for any calendar year shall be 

21 rounded to the nearest $1, except that any amount 

22 so established that is a multiple of $0.50 but not of 

23 $1 shall be rounded to the next higher multiple of 

24 $1. 

25 (c) APPLICATION.— 
11 

•HR 3192 IH 

1 (1) IN GENERAL.—To be eligible to receive a 

2 family and medical insurance benefit under this title 

3 in a State, an eligible employee shall submit an ap4 plication to the covered agency for the State at such 

5 time, in such manner, and containing the informa6 tion specified in paragraph (3) and such additional 

7 information as the agency may require. 

8 (2) IRREVOCABILITY FOR SELF-EMPLOYED IN9 DIVIDUALS.—An election by a self-employed indi10 vidual to participate in the Program shall be irrev11 ocable. 

12 (3) CERTIFICATION REQUIREMENTS.—The cov13 ered agency shall require each of the following, as 

14 part of the application for benefits under this section 

15 in connection with any leave: 

16 (A) A certification, submitted in a timely 

17 manner, issued by the health care provider of 

18 the eligible employee or of the child, spouse, 

19 parent, or member of the employee’s household, 

20 as appropriate, and meeting the requirements 

21 of section 103(b) of the Family and Medical 

22 Leave Act of 1993 (29 U.S.C. 2613(b)) in con23 nection with such leave. 

24 (B) In any case in which the covered agen25 cy has reason to doubt the validity of the cer-
12 

•HR 3192 IH 

1 tification provided under subparagraph (A), the 

2 Secretary may require, at the expense of the 

3 covered agency, that the eligible employee ob4 tain the opinion of a second health care pro5 vider designated or approved by the agency con6 cerning any information certified under sub7 paragraph (A). 

8 (C) In any case in which the second opin9 ion described in subparagraph (B) differs from 

10 the opinion in the original certification provided 

11 under subparagraph (A), the covered agency 

12 may require, at the expense of the agency, that 

13 the employee obtain the opinion of a third 

14 health care provider designated or approved 

15 jointly by the agency and the employee con16 cerning the information certified under sub17 paragraph (A). The opinion of the third health 

18 care provider concerning such information shall 

19 be considered to be final and shall be binding 

20 on the agency and the employee. 

21 (d) PAYMENT OF BENEFITS.— 

22 (1) PAYMENT FROM TRUST FUND.—Benefit 

23 payments required to be made under this section 

24 shall be made only from the Trust Fund. 
13 

•HR 3192 IH 

1 (2) CERTIFICATION AND PAYMENT.—On the 

2 final decision of a covered agency or on the final 

3 judgment of any court of competent jurisdiction pur4 suant to paragraph (3) that any person is entitled 

5 to any payment under this section— 

6 (A) the covered agency shall certify to the 

7 Managing Trustee of the Board of Trustees of 

8 the Trust Fund the name and address of the 

9 person entitled to receive such payment, the 

10 amount of such payment, and the time at which 

11 such payment shall be made; 

12 (B) the Managing Trustee shall pay the 

13 certified amount from the Trust Fund to the 

14 covered agency; and 

15 (C) the covered agency shall make the pay16 ment to the person. 

17 (3) REVIEW.—Any eligible employee dissatisfied 

18 with any initial determination under this section 

19 shall be entitled to reconsideration of the determina20 tion, and a hearing on the determination, by the 

21 Secretary to the same extent as is provided in sec22 tion 205(b) of the Social Security Act (42 U.S.C. 

23 405(b)) and to judicial review of the final decision 

24 after such hearing as is provided in section 205(g) 

25 of the Social Security Act (42 U.S.C. 405(g)). 
14 

•HR 3192 IH 

1 (4) WITHHOLDING OF CERTIFICATION.—In any 

2 case in which a review of the covered agency’s deci3 sion is or may be sought under paragraph (3), the 

4 covered agency may withhold certification of pay5 ment pending such review. 

6 (5) OTHER COMPENSATION.—Except as pro7 vided in section 105, no employee shall be eligible to 

8 receive paid leave benefits under this title for any 

9 period during which— 

10 (A) the employee is receiving worker’s 

11 compensation or compensation through unem12 ployment insurance in connection with the event 

13 for which the employee is taking the leave; or 

14 (B) the employee is receiving paid leave 

15 benefits from an employer under a voluntary 

16 employer plan approved under paragraph (3). 

17 (e) REGULATIONS.—The Secretary shall issue regula18 tions to carry out this subsection, including the determina19 tion of benefits for leave taken intermittently or on a re20 duced leave schedule, or for leave taken by a part-time, 

21 seasonal, or intermittent employee. 

22 SEC. 103. VOLUNTARY EMPLOYER PLAN. 

23 The Secretary shall approve any voluntary plan of an 

24 employer as to which the Secretary finds that there is at 
15 

•HR 3192 IH 

1 least one employee in employment and all of the following 

2 exist: 

3 (1) The rights afforded to the covered employ4 ees are equal or greater than those provided in the 

5 relevant Program. 

6 (2) The plan has been made available to all of 

7 the employees of the employer employed in the 

8 United States or to all employees at any one dis9 tinct, separate establishment maintained by the em10 ployer in the United States. As used in this para11 graph, the term ‘‘employees’’ includes those individ12 uals in partial or other forms of short-time employ13 ment and employees not in employment as the Sec14 retary shall prescribe by regulation. 

15 (3) A majority of the employees of the employer 

16 employed in the United States or a majority of the 

17 employees employed at any one distinct, separate es18 tablishment maintained by the employer in the 

19 United States have consented to the plan. 

20 (4) The plan provides for insurance to be issued 

21 by an admitted disability insurer approved by the 

22 Secretary or equivalent. 

23 (5) The employer has consented to the plan and 

24 has agreed to make the payroll deductions required, 
16 

•HR 3192 IH 

1 if any, and transmit the proceeds to the disability in2 surer, if any. 

3 (6) The plan provides for the inclusion of future 

4 employees. 

5 (7) The plan will be in effect for a period of not 

6 less than one year and, thereafter, continuously un7 less the Secretary finds that the employer or a ma8 jority of its employees employed in the United States 

9 or a majority of the employees employed at any one 

10 distinct, separate establishment maintained by the 

11 employer in the United States covered by the plan 

12 have given notice of the termination of the plan and 

13 paid a fee to the Secretary in such amount as the 

14 Secretary deems adequate to cover family and med15 ical insurance benefits under this title to all employ16 ees of the employer for a period of at least four cal17 endar months, plus an amount to pay administrative 

18 costs related to processing and paying such benefits. 

19 The notice shall be filed in writing with the Sec20 retary and shall be effective only on the anniversary 

21 of the effective date of the plan next following the 

22 filing of the notice, but in any event not less than 

23 30 days from the time of the filing of the notice. 

24 Amounts received by the Secretary under this sub25 paragraph shall be deposited in the Trust Fund. 
17 

•HR 3192 IH 

1 (8) The amount of deductions from the wages 

2 of an employee in effect for any plan shall not be in3 creased on any date other than on the date of an an4 niversary of the effective date of the plan. 

5 SEC. 104. ADDITIONAL BENEFITS. 

6 (a) ADDITIONAL STATE PROGRAMS.—Any State that 

7 has a separate State family and medical insurance pro8 gram or temporary disability program may pay an eligible 

9 employee benefits under such separate program in addi10 tion to the benefits under this title or use the separate 

11 State program to pay for additional weeks of benefits after 

12 the benefits available under this title are exhausted. 

13 (b) ADDITIONAL EMPLOYER BENEFITS.—Nothing in 

14 this title disallows an employer who participates in a State 

15 Program from providing an employee additional benefits 

16 in addition to the family and medical insurance benefit 

17 provided under this title. These additional employer bene18 fits shall not reduce the amount of the benefit that an 

19 employee collects from the family and medical insurance 

20 benefit under the State Program. 

21 (c) COLLECTIVE BARGAINING.—Nothing in this title 

22 shall interfere with the right of unions to bargain collec23 tively with employers to provide benefits that are better 

24 than the family and medical insurance benefit provided 

25 under this title. 
18 

•HR 3192 IH 

1 SEC. 105. PROHIBITED ACTS BY EMPLOYER. 

2 (a) INTERFERENCE WITH RIGHTS.—It shall be un3 lawful for any employer to interfere with, restrain, or deny 

4 the exercise of or the attempt to exercise, any right pro5 vided under this title. 

6 (b) DISCRIMINATION.—It shall be unlawful for any 

7 employer to discharge or in any other manner discriminate 

8 against any individual for opposing any practice made un9 lawful by this title. 

10 (c) INTERFERENCE WITH PROCEEDINGS OR INQUIR11 IES.—It shall be unlawful for any person to discharge or 

12 in any other manner discriminate against any individual 

13 because such individual— 

14 (1) has filed any charge, or has instituted or 

15 caused to be instituted any proceeding, under or re16 lated to this title; 

17 (2) has given, or is about to give, any informa18 tion in connection with any inquiry or proceeding re19 lating to any right provided under this title; or 

20 (3) has testified, or is about to testify, in any 

21 inquiry or proceeding relating to any right provided 

22 under this title. 

23 SEC. 106. ENFORCEMENT. 

24 (a) CIVIL ACTION BY EMPLOYEES.— 
19 

•HR 3192 IH 

1 (1) LIABILITY.—Any employer who violates sec2 tion 106 shall be liable to any eligible employee af3 fected— 

4 (A) for damages equal to— 

5 (i) the amount of— 

6 (I) any wages, salary, employ7 ment benefits, or other compensation 

8 denied or lost to such employee by 

9 reason of the violation; or 

10 (II) in a case in which wages, 

11 salary, employment benefits, or other 

12 compensation have not been denied or 

13 lost to the employee, any actual mone14 tary losses sustained by the employee 

15 as a direct result of the violation, such 

16 as the cost of providing care, up to a 

17 sum equal to 12 weeks of wages or 

18 salary for the employee; 

19 (ii) the interest on the amount de20 scribed in clause (i) calculated at the pre21 vailing rate; and 

22 (iii) an additional amount as liq23 uidated damages equal to the sum of the 

24 amount described in clause (i) and the in25 terest described in clause (ii), except that 
20 

•HR 3192 IH 

1 if an employer who has violated section 

2 106 proves to the satisfaction of the court 

3 that the act or omission which violated the 

4 such subsection was in good faith and that 

5 the employer had reasonable grounds for 

6 believing that the act or omission was not 

7 a violation of such subsection, such court 

8 may, in the discretion of the court, reduce 

9 the amount of the liability to the amount 

10 and interest determined under clauses (i) 

11 and (ii), respectively; and 

12 (B) for such equitable relief as may be ap13 propriate, including employment, reinstatement, 

14 and promotion. 

15 (2) RIGHT OF ACTION.— 

16 (A) IN GENERAL.—Except as provided in 

17 subparagraph (B), an action to recover the 

18 damages or equitable relief prescribed in para19 graph (1) may be maintained against any em20 ployer (including a public agency) in any Fed21 eral or State court of competent jurisdiction by 

22 any one or more employees for and on behalf 

23 of— 

24 (i) the employees; or 
21 

•HR 3192 IH 

1 (ii) the employees and other employ2 ees similarly situated. 

3 (B) LIMITATION.—The right provided by 

4 subparagraph (A) to bring an action by or on 

5 behalf of any employee shall terminate— 

6 (i) on the filing of a complaint by the 

7 Secretary in an action under subsection 

8 (b)(3) in which restraint is sought of any 

9 further delay in the payment of the 

10 amount described in paragraph (1)(A) to 

11 such employee by an employer responsible 

12 under paragraph (1) for the payment; or 

13 (ii) on the filing of a complaint by the 

14 Secretary in an action under paragraphs 

15 (1) or (2) of subsection (b) in which a re16 covery is sought of the damages described 

17 in paragraph (1)(A) owing to an eligible 

18 employee by an employer liable under para19 graph (1), 

20 unless the action described in clauses (i) or (ii) 

21 is dismissed without prejudice on motion of the 

22 Secretary. 

23 (3) FEES AND COSTS.—The court in an action 

24 brought under this subsection shall, in addition to 

25 any judgment awarded to the plaintiff, allow a rea-
22 

•HR 3192 IH 

1 sonable attorney’s fee, reasonable expert witness 

2 fees, and other costs of the action to be paid by the 

3 defendant. 

4 (b) ACTIONS BY THE SECRETARY.— 

5 (1) ADMINISTRATIVE ACTION.—The Secretary 

6 shall receive, investigate, and attempt to resolve 

7 complaints of violations of section 106 in the same 

8 manner that the Secretary receives, investigates, and 

9 attempts to resolve complaints of violations of sec10 tions 6 and 7 of the Fair Labor Standards Act of 

11 1938 (29 U.S.C. 206 and 207). 

12 (2) CIVIL ACTION.— 

13 (A) RIGHT OF ACTION.—The Secretary 

14 may bring an action in any court of competent 

15 jurisdiction to recover the damages described in 

16 paragraph (1)(A). 

17 (B) SUMS RECOVERED.—Any sums recov18 ered by the Secretary pursuant to this para19 graph shall be held in a special deposit account 

20 and shall be paid, on order of the Secretary, di21 rectly to each employee affected. Any such sums 

22 not paid to an employee because of inability to 

23 do so within a period of 3 years shall be depos24 ited into the Treasury of the United States as 

25 miscellaneous receipts. 
23 

•HR 3192 IH 

1 (3) ACTION FOR INJUNCTION BY THE SEC2 RETARY.—The district courts of the United States 

3 shall have jurisdiction, for cause shown, in an action 

4 brought by the Secretary— 

5 (A) to restrain violations of prohibited acts 

6 section, including the restraint of any with7 holding of payment of wages, salary, employ8 ment benefits, or other compensation, plus in9 terest, found by the court to be due to eligible 

10 employees; or 

11 (B) to award such other equitable relief as 

12 may be appropriate, including employment, re13 instatement, and promotion. 

14 (4) SOLICITOR OF LABOR.—The Solicitor of 

15 Labor may appear for and represent the Secretary 

16 on any litigation brought under this subsection. 

17 (c) LIMITATION.— 

18 (1) Except as provided in paragraph (2), an ac19 tion may be brought under subsections (a) or (b) not 

20 later than 2 years after the date of the last event 

21 constituting the alleged violation for which the ac22 tion is brought. 

23 (2) WILLFUL VIOLATION.—In the case of such 

24 action brought for a willful violation of section 106, 

25 such action may be brought within 3 years of the 
24 

•HR 3192 IH 

1 date of the last event constituting the alleged viola2 tion for which such action is brought. 

3 (3) COMMENCEMENT.—In determining when an 

4 action is commenced for the purposes of this sub5 section, it shall be considered to be commenced on 

6 the date when the complaint is filed. 

7 (d) FALSE STATEMENTS.—If the Secretary finds 

8 that any individual falsely certifies the medical condition 

9 of any person in order to obtain family and medical insur10 ance benefits under this title with the intent to defraud, 

11 whether for the maker or for any other person, the Sec12 retary shall assess a penalty against the individual in an 

13 amount up to 100 percent of the benefits paid as a result 

14 of the false certification. Penalties collected under this sec15 tion shall be deposited in the Trust Fund, notwithstanding 

16 the provisions of title 31, United States Code. 

17 (e) INVESTIGATIVE AUTHORITY.— 

18 (1) IN GENERAL.—To ensure compliance with 

19 the provisions of this title, or any regulation or order 

20 issued under this title, the Secretary shall have, sub21 ject to paragraph (3), the investigative authority 

22 provided under section 11(a) of the Fair Labor 

23 Standards Act of 1938 (29 U.S.C. 211(a)). 

24 (2) OBLIGATION TO KEEP AND PRESERVE

25 RECORDS.—Any employer shall make, keep, and pre-
25 

•HR 3192 IH 

1 serve records pertaining to compliance with this title 

2 in accordance with section 11(c) of the Fair Labor 

3 Standards Act of 1938 (29 U.S.C. 211(c)) and in 

4 accordance with regulations issued by the Secretary. 

5 (3) REQUIRED SUBMISSIONS GENERALLY LIM6 ITED TO AN ANNUAL BASIS.—The Secretary shall 

7 not under the authority of this subsection require 

8 any employer or any plan, fund, or program to sub9 mit to the Secretary any books or records more than 

10 once during any 12-month period, unless the Sec11 retary has reasonable cause to believe there may 

12 exist a violation of this title or any regulation or 

13 order issued pursuant to this title, or is investigating 

14 a charge pursuant to paragraph (2). 

15 (4) SUBPOENA POWER.—For the purposes of 

16 any investigation provided for in this section, the 

17 Secretary shall have the subpoena authority provided 

18 for under section 9 of the Fair Labor Standards Act 

19 of 1938 (29 U.S.C. 209). 

20 SEC. 107. CRIMINAL PENALTIES. 

21 Whoever— 

22 (1) makes or causes to be made any false state23 ment in support of an application for benefits under 

24 this title; 
26 

•HR 3192 IH 

1 (2) knowingly presents or causes to be pre2 sented any false written or oral material statement 

3 in support of any claim for benefits under this title; 

4 (3) knowingly solicits, receives, offers, pays, or 

5 accepts any rebate, refund, commission, preference, 

6 patronage, dividend, discount, or other consider7 ation, whether in the form of money or otherwise, as 

8 compensation or inducement for soliciting a claimant 

9 to apply for benefits under this title, except to the 

10 extent authorized by a law of the United States; or 

11 (4) knowingly assists, abets, solicits, or con12 spires with any person who engages in an act that 

13 is prohibited under paragraph (1), (2), or (3), 

14 shall be guilty of a felony and upon conviction shall be 

15 fined under title 18, United States Code, or imprisoned 

16 for not more than 5 years, or both. 

17 SEC. 108. EDUCATION PROGRAMS. 

18 (a) AUTHORITY.—The Secretary shall develop and 

19 maintain a program of education concerning the paid fam20 ily medical and insurance rights and benefits under this 

21 title. 

22 (b) NOTICE TO EMPLOYERS.—The Secretary shall 

23 provide to each employer of employees subject to this title 

24 a notice informing employees of their family and medical 

25 insurance rights and benefits under this title. The notice 
27 

•HR 3192 IH 

1 shall be given by every employer to each new employee 

2 hired, and to each employee leaving work under the al3 lowed circumstances of this title. 

4 SEC. 109. EFFECTIVE DATE. 

5 This title shall take effect on January 1, 2006, and 

6 shall apply to periods of leave that commence on or after 

7 January 1, 2008. 

8 TITLE II—FAMILY AND MEDICAL 

9 LEAVE TRUST FUND 

10 SEC. 201. ESTABLISHMENT. 

11 (a) IN GENERAL.—There is created in the Treasury 

12 of the United States a trust fund to be known as the Fam13 ily and Medical Leave Trust Fund. The Trust Fund shall 

14 consist of such amounts as may be deposited in, or appro15 priated to, such fund as provided in this section. 

16 (b) APPROPRIATIONS TO TRUST FUND.— 

17 (1) AMOUNTS APPROPRIATED.—There is appro18 priated to the Trust Fund for fiscal year 2006 and 

19 each fiscal year thereafter, out of any moneys in the 

20 Treasury not otherwise appropriated, amounts equiv21 alent to 100 percent of— 

22 (A) the taxes imposed by section 3111(c) 

23 of the Internal Revenue Code of 1986 with re24 spect to wages (as defined in section 3121 of 

25 such Code) reported to the Secretary of the 
28 

•HR 3192 IH 

1 Treasury or the Secretary’s delegate pursuant 

2 to subtitle F of such Code on or after January 

3 1, 2006, as determined by the Secretary by ap4 plying the applicable rates of tax under such 

5 sections to such wages, which wages shall be 

6 certified by the Commissioner of Social Security 

7 on the basis of the records of wages established 

8 and maintained by the Commissioner in accord9 ance with such reports; and 

10 (B) the taxes imposed by section 1401(c) 

11 of such Code with respect to self-employment 

12 income (as defined in section 1402 of such 

13 Code) reported to the Secretary of the Treasury 

14 or the Secretary’s delegate on tax returns under 

15 subtitle F of such Code, as determined by the 

16 Secretary by applying the applicable rate of tax 

17 under such section 1401(c) to such self-employ18 ment income, which self-employment income 

19 shall be certified by the Commissioner of Social 

20 Security on the basis of the records of self-em21 ployment income established and maintained by 

22 the Commissioner in accordance with such re23 turns. 

24 (2) TRANSFERS.—Such appropriated amounts 

25 shall be transferred from time to time from the gen-
29 

•HR 3192 IH 

1 eral fund of the Treasury to the Trust Fund. Such 

2 amounts shall be determined on the basis of esti3 mates by the Secretary of the Treasury of the taxes, 

4 specified in paragraph (1), paid to or deposited into 

5 the Treasury, and proper adjustments shall be made 

6 in amounts subsequently transferred to the extent 

7 prior estimates were in excess of or were less than 

8 such taxes. 

9 (3) INVESTMENTS.—All amounts transferred to 

10 the Trust Fund under paragraph (2) shall be in11 vested by the Managing Trustee referred to in sec12 tion 202(c) in the same manner and to the same ex13 tent as the other assets of the Trust Fund. 

14 SEC. 202. BOARD OF TRUSTEES. 

15 (a) ESTABLISHMENT AND MEMBERSHIP.—With re16 spect to the Trust Fund, there is established a body to 

17 be known as the Board of Trustees of the Trust Fund 

18 which shall be composed of the Secretary of the Treasury, 

19 the Secretary of Labor, the Commissioner of Social Secu20 rity, and the Secretary of Health and Human Services, 

21 all ex officio, and of two members of the public (both of 

22 whom may not be from the same political party), who shall 

23 be nominated by the President, by and with the advice 

24 and consent of the Senate. 
30 

•HR 3192 IH 

1 (b) TERMS AND VACANCIES.—Members of the Board 

2 of Trustees shall serve for a period of 4 years. A member 

3 of the Board of Trustees nominated and confirmed as a 

4 member of the public to fill a vacancy occurring during 

5 a term shall be nominated and confirmed only for the re6 mainder of such term. An individual nominated and con7 firmed as a member of the public may serve in such posi8 tion after the expiration of such member’s term until the 

9 earlier of the date on which the member’s successor takes 

10 office or the date on which a report of the Board is first 

11 issued under paragraph (2) after the expiration of the 

12 member’s term. 

13 (c) MANAGING TRUSTEE AND SECRETARY.—The 

14 Secretary of the Treasury shall be the Managing Trustee 

15 of the Board of Trustees. The Secretary of Labor shall 

16 serve as the Secretary of the Board of Trustees. 

17 (d) BASIC DUTIES OF THE BOARD OF TRUSTEES.— 

18 The Board of Trustees shall meet not less frequently than 

19 once each calendar year. It shall be the duty of the Board 

20 of Trustees to— 

21 (1) hold the Trust Fund; 

22 (2) report to Congress not later than April 1 of 

23 each year— 
31 

•HR 3192 IH 

1 (A) on the operation and status of the 

2 Trust Fund during the fiscal year preceding the 

3 fiscal year in which the report is made; and 

4 (B) on the expected operation and status 

5 of the Trust Fund during the fiscal year in 

6 which the report is made and the next two fis7 cal years; 

8 (3) report immediately to Congress whenever 

9 the Board is of the opinion that the amount in the 

10 Trust Fund is unduly small; and 

11 (4) review the general policies followed in man12 aging the Trust Fund, and recommend changes in 

13 such policies, including necessary changes in the 

14 provisions of law that govern the way in which the 

15 Trust Fund is to be managed. 

16 (e) REQUIREMENTS RELATING TO ANNUAL RE17 PORT.—The report provided for in subsection (d)(2) shall 

18 include a statement of the assets of, and the disburse19 ments made from, the Trust Fund during the fiscal year 

20 preceding the fiscal year in which the report is made, an 

21 estimate of the expected income to, and disbursements to 

22 be made from, the Trust Fund during the fiscal year in 

23 which the report is made and each of the next two fiscal 

24 years, and a statement of the actuarial status of the Trust 

25 Fund. Such report shall also include an actuarial opinion 
32 

•HR 3192 IH 

1 by an appropriate employee of the Department of Labor 

2 certifying that the techniques and methodologies used for 

3 the report are generally accepted within the actuarial pro4 fession and that the assumptions and cost estimates used 

5 for the report are reasonable. Such report shall be printed 

6 as a document of the House of Representatives for the 

7 session of the Congress to which the report is made. 

8 (f) LIABILITY.—A person serving as a member of the 

9 Board of Trustees shall not be considered to be a fiduciary 

10 and shall not be personally liable for actions taken in such 

11 capacity with respect to the Trust Fund. 

12 SEC. 203. INVESTMENT OF THE TRUST FUND. 

13 (a) OBLIGATIONS.—It shall be the duty of the Man14 aging Trustee to invest such portion of the Trust Fund 

15 as is not, in the trustee’s judgment, required to meet cur16 rent withdrawals. Such investments may be made only in 

17 interest-bearing obligations of the United States or in obli18 gations guaranteed as to both principal and interest by 

19 the United States. 

20 (b) ACQUISITION.—The obligations referred to in 

21 subsection (a) may be acquired— 

22 (1) on original issue at the issue price; or 

23 (2) by purchase of outstanding obligations at 

24 the market price. 
33 

•HR 3192 IH 

1 (c) OBLIGATIONS ISSUED FOR PURCHASE BY TRUST

2 FUND.—The purposes for which obligations of the United 

3 States may be issued under chapter 31 of title 31, United 

4 States Code, are extended to authorize the issuance at par 

5 of public debt obligations for purchase by the Trust Fund. 

6 Such obligations issued for purchase by the Trust Fund 

7 shall have dates of maturity fixed with due regard for the 

8 needs of the Trust Fund. Such obligations shall bear inter9 est at a rate equal to— 

10 (1) except as provided in paragraph (2), the av11 erage market yield (computed by the Managing 

12 Trustee on the basis of market quotations as of the 

13 end of the calendar month preceding the date of 

14 such issue) on all marketable interest-bearing obliga15 tions of the United States forming a part of the 

16 public debt that are not due or callable until after 

17 the expiration of four years from the end of such 

18 calendar month; or 

19 (2) in a case in which such average market 

20 yield is not a multiple of 0.1 percent, the multiple 

21 of 0.1 percent nearest such market yield. 

22 (d) OTHER OBLIGATIONS.—The Managing Trustee 

23 may purchase interest-bearing obligations of the United 

24 States that are not described in subsection (c) or obliga25 tions guaranteed as to both principal and interest by the 
34 

•HR 3192 IH 

1 United States, on original issue or at the market price, 

2 only in cases in which the trustee determines that the pur3 chase of obligations described in this paragraph is in the 

4 public interest. 

5 (e) DISPOSITION AND REDEMPTION OF OBLIGA6 TIONS.—Any obligations acquired by the Trust Fund (ex7 cept public debt obligations issued exclusively to the Trust 

8 Fund) may be sold by the Managing Trustee at the mar9 ket price, and such public debt obligations may be re10 deemed at par plus accrued interest. 

11 (f) CREDITING OF INTEREST AND PROCEEDS.—The 

12 interest on, and the proceeds from the sale or redemption 

13 of, any obligations held in the Trust Fund shall be cred14 ited to and form a part of the Trust Fund. 

15 SEC. 204. PAYMENTS FROM TRUST FUND. 

16 The Managing Trustee shall pay from time to time 

17 from the Trust Fund such amounts as the Secretary of 

18 Labor certifies are necessary to make the payments pro19 vided for by section 102, and payments with respect to 

20 administrative expenses under section 205. 

21 SEC. 205. ADMINISTRATIVE EXPENSES. 

22 (a) AVAILABILITY OF TRUST FUND.—Under regula23 tions that shall be prescribed by the Secretary of Labor, 

24 funds shall be made available from the Trust Fund in con25 nection with the administration of this Act and the admin-
35 

•HR 3192 IH 

1 istration of related provisions of the Internal Revenue 

2 Code of 1986 in the same manner and extent as funds 

3 are made available from the trust funds referred to in sec4 tion 201(g) of the Social Security Act (42 U.S.C. 401(g)) 

5 in connection with the administration of the relevant pro6 visions referred to in such section. 

7 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be made available for expenditure, out 

9 of the Trust Fund, such amounts as Congress may deter10 mine to be appropriate to pay— 

11 (1) the costs of the part of the administration 

12 of this Act for which the Secretary of Labor is re13 sponsible; and 

14 (2) the costs of carrying out the functions of 

15 the Social Security Administration specified in sec16 tion 232 of the Social Security Act (42 U.S.C. 432) 

17 (made applicable under subsection (j)), that relate to 

18 the administration of provisions of the Internal Rev19 enue Code of 1986, other than those costs excluded 

20 under the regulations of the Secretary of Labor pre21 scribed pursuant to paragraph (1). 

22 (c) GIFTS AND BEQUESTS.—The Managing Trustee 

23 may accept on behalf of the United States money gifts 

24 and bequests made unconditionally to the Trust Fund for 

25 the benefit of the Trust Fund or any activity financed 
36 

•HR 3192 IH 

1 through the Trust Fund and such gifts and bequests shall 

2 be deposited into the Trust Fund. 

3 (d) PROCESSING OF TAX DATA.—Section 232 of the 

4 Social Security Act (42 U.S.C. 432) shall apply with re5 spect to this Act, in the same manner and to the same 

6 extent as such section applies with respect to title II of 

7 the Social Security Act (42 U.S.C. 401 et seq.). 

8 SEC. 206. AMENDMENTS TO THE INTERNAL REVENUE CODE 

9 OF 1986. 

10 (a) TAX ON EMPLOYERS.—Section 3111 of such 

11 Code (relating to tax on employers) is amended— 

12 (1) by redesignating subsection (c) as sub13 section (d); and 

14 (2) by inserting after subsection (b) the fol15 lowing new subsection: 

16 ‘‘(c) FAMILY AND MEDICAL INSURANCE.— 

17 ‘‘(1) IN GENERAL.—In addition to the taxes im18 posed by subsections (a) and (b), there is imposed 

19 on every employer an excise tax, with respect to hav20 ing individuals in such employer’s employ, equal to 

21 0.4 percent of the wages paid by such employer with 

22 respect to employment (as defined in section 

23 3121(b)). 

24 ‘‘(2) EXCEPTION FOR EMPLOYERS WITH EQUIV25 ALENT OR BETTER PLAN.—Paragraph (1) shall not 
37 

•HR 3192 IH 

1 apply with respect to a period of employment by an 

2 employer during which the Secretary of Labor deter3 mines the employer has in effect a plan which is 

4 equivalent to or better than the Family and Medical 

5 Insurance Program (established under the Family 

6 and Medical Insurance Act of 2005). For purposes 

7 of the preceding sentence, the Secretary of Labor 

8 shall prescribe such regulations as may be appro9 priate or necessary, including regulations requiring 

10 documentation of employer programs.’’. 

11 (b) SELF-EMPLOYMENT TAX.—Section 1401 of such 

12 Code is amended— 

13 (1) by redesignating subsection (c) as sub14 section (d); and 

15 (2) by inserting after subsection (b) the fol16 lowing new subsection: 

17 ‘‘(c) FAMILY AND MEDICAL INSURANCE.—In addi18 tion to the taxes imposed by subsections (a) and (b), there 

19 is imposed for each taxable year, on the self-employment 

20 income of every individual who has elected to participate 

21 in the Family and Medical Insurance Program (estab22 lished under the Family and Medical Insurance Act of 

23 2005) a tax equal to 0.4 percent of the amount of the 

24 self-employment income for such taxable year.’’. 

25 (c) EFFECTIVE DATE.— 
38 

•HR 3192 IH 

1 (1) EMPLOYMENT TAXES.—The amendments 

2 made by subsection (a) shall apply to wages paid on 

3 or after January 1, 2006. 

4 (2) SELF-EMPLOYMENT TAX.—The amend5 ments made by subsection (b) shall apply to taxable 

6 years beginning on or after January 1, 2006. 

Æ