An Act to Amend the
Maine Legislature, Session 132, LD 2018
Committee Amendment CA_A_H948 (House)
Amends: 26 MRSA §850-H

COMMITTEE AMENDMENT "^- "to H.P 1348, L.D. 2018, "An Act to Amend the
Requu-ements Governing Self-insurance Plans in the Paid Family and Medical Leave
Benefits Program"
Amend the bill by striking out all of section 1 and inserting the following;
'See. 1. 26 MRSA §850-H, sub-§2, ^A, as enacted by PL 2023, c, 412, Ft. AAA,
§7, is repealed and the followmg enacted in its place:
A, If the private plan is in the form of self-insurance:
d) The employer must furnish a bond to the State with a surety company
authorized to transact business in the State, in the form. amount and manner
reauired bv the deaartment;
(2) The department may not allow the uooline of risk among multiple employers;
and
(3)_ThQ deBartment shall allow multiple employers to share the cost of legal.
accounting and 3rd-party administrator expenses as lone as the arrangements do
not result in pooling of risk;'
Amend the bill in section 4 in paragraph G in the first 2 lines (page 1, lines 19 and 20
in L.D.) by striking out the following; ". fmancial resources or administration"
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment amends the bill. Like the bill, the amendment specifies that, under
the law governing paid family and medical leave, the Department of Labor, with respect to
a private plan in the form of self-insurance, may not allow the pooling of risk among
multiple employers. The amendment amends the bill to require that the department, with
respect to a private plan in the form of self-insurance, must allow multiple employers to
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " 1\." to H,P. 1348, L.D. 2018
share the costs of legal, accounting and Srd-party administrator expenses as long as the
arrangements do not result in pooling of risk.
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 03/23/26 LRL
LD 2018 LR 2791(02)
An Act to Amend the Requirements Governing Self-insurance Plans in the Paid Family and Medical
Leave Benefits Program
Fiscal Note for Bill as Amended by Committee Amendment '^" f ^}— ^^ &
Committee: Labor
Fiscal Note Required: Yes
Fiscal Note
No State fiscal impact - codifies existing interpretation of statute
Fiscal Detail and Notes
This bill prohibits the formation of private group trusts to pool risk among multiple employers for the provision of
I paid family and medical leave benefits, while still allowing multiple employers to share the cost of legal, accounting,
and third-party administrator expenses. If allowed, such private group trusts would function as an alternative to the
State tmst, which pools the costs and risks of paid family and medical leave benefits statewide, and could potentially
reduce the premium contributions paid to the State as well as the benefit claims paid out by the State.
In practice, the Department of Labor (department) has interpreted the statute establishing the paid family and medical
leave benefits program to only allow coverage models explicitly identified in the statute and to prohibit all others.
Consequently, the department has not approved any private group tmsts to date and this fiscal note assumes there are
none currently in operation. This bill codifies the department's interpretation in statute and therefore has no fiscal
impact on the State,
LR2791(02) - Fiscal Note - Page 1 of 1