S. 1681Senate110th Congress (2007-2009)In Committee

Family Leave Insurance Act of 2007

Legislative Activity

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2 earlier actions

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

June 21, 2007

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SenateIntro Referral

Introduced in Senate

June 21, 2007

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S8241-8242)

June 21, 2007

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

June 21, 2007

Floor Debate

5 members

What members said about S. 1681 on the floor

3 Republicans2 Democrats

Sen. Christopher J. DoddD-CT · Jun 21, 2007

Mr. President, I rise to introduce the Currency Reform and Financial Markets Access Act of 2007 on behalf of myself, Senator Shelby, Senator Bayh, Senator Carper, Senator Brown, and Senator Casey.…

Mr. President, I rise to introduce the Currency Reform and Financial Markets Access Act of 2007 on behalf of myself, Senator Shelby, Senator Bayh, Senator Carper, Senator Brown, and Senator Casey.

Nearly two decades ago, the Senate Banking Committee enacted legislation which required the Treasury Department to identify countries that manipulate their currency for purposes of gaining an unfair competitive trade advantage and to take prompt action to eliminate the unfair trade advantage when manipulation is found.

One of the very first actions that I undertook as chairman-elect of the Senate Banking Committee in December 2006 was to write a letter with then-Chairman Shelby to the Treasury Secretary about the report required under this legislation, the International Economic and Exchange Rate Policy Report and the inaugural U.S.-China strategic economic dialogue, SED. In that letter, we expressed our concern that the Treasury Department had not cited China, and potentially other nations, as currency manipulators.

At one of the very first hearings I held as chairman, in January 2007, Treasury Secretary Paulson provided his first congressional testimony since his confirmation, on the SED and the exchange rate report. At that hearing, Secretary Paulson testified that China did not meet the technical requirement for designation as a currency manipulator and that the SED is the ``best chance to get some progress [on the currency issue].''

Senator Shelby and I wrote to Secretary Paulson in advance of the most recent exchange rate report and the May SED urging him to consider steps beyond dialogue to eliminate the unfair trade advantage resulting from China's ongoing currency manipulation and discriminatory market access practices. But instead of taking action, the Treasury Department once again chose not to cite China as a currency manipulator in its latest report to the Senate Banking Committee, despite acknowledging ``heavy foreign exchange market intervention by China's central bank to manage the currency tightly.''

Secretary Paulson's efforts to engage the Chinese through dialogue are commendable, but after two meetings of the strategic economic dialogue, numerous congressional hearings, and the shortcomings of the most recent exchange rate reports, it is clear that dialogue alone is not enough to make progress and legislative action is needed.

Therefore, Senator Shelby and I are today introducing the Currency Reform and Financial Markets Access Act of 2007 which will provide the Treasury Department and Congress new, tough authority to recognize and remedy currency manipulation without ambiguity or delay.

Under current law, Treasury claims that no countries meet the technical finding of intent to manipulate their currencies. Treasury reiterated this point in its most recent exchange rate report, stating:

The Department of the Treasury concluded that, although the

Chinese currency is undervalued, China did not meet the

technical requirements for designation under the terms of

Section 3004 of the Act during the period under

consideration. Treasury was unable to determine that China's

exchange rate policy was carried out for the purpose of

preventing effective balance of payments adjustment or

gaining unfair competitive advantage in international trade.

The Currency Reform and Financial Markets Access Act of 2007 requires a Treasury designation of currency manipulation based on objective data, and without regard to subjective factors such as purpose or intent, removing a technicality that the Treasury Department has been using to defend its inaction.

Once currency manipulation is found, the bill requires the Treasury Department to submit a detailed plan of action to the Congress within 30 days of such finding. The plan of action sets specific timeframes and benchmarks, with the goal of remedying the manipulation. The bill also requires the Treasury to initiate both bilateral and multilateral negotiations, including immediate IMF consultations and to use the Treasury's voice and vote at the IMF to address the manipulation.

Our bill also provides new authority for the Treasury to file a WTO article XV case to remedy currency manipulation if the goals and benchmarks for progress are not met within 9 months of designation.

If the Treasury continues to avoid designating countries as currency manipulators, our bill creates a new process by which Congress, led by either the Senate Banking or House Financial Services Committee, can originate a joint resolution of disapproval of the Treasury's inaction and provides for an expedited process for such a motion through the floors of both Chambers.

Finally, the Currency Reform and Financial Markets Access Act of 2007 promotes market access for U.S. financial services firms to level the playing field for American businesses and to help develop the financial sector reform needed to support a freely floating currency in China. It also requires the Treasury Department to report on the progress of the SED, as well as on opening foreign markets to American financial services firms. It is time for American firms to be afforded the same open and fair treatment abroad that our country provides to foreign firms in the United States.

I am confident that in a free and fair environment American business and entrepreneurship will flourish. Our bill will require Treasury to assume its responsibility as a referee and will fight to level this playing field by identifying and addressing unfair practices and market access barriers.

During the SED events in Beijing, Federal Reserve Chairman Bernanke talked about the market distortions that result from ``an effective subsidy that an undervalued currency provides for Chinese firms that focus on exporting.'' I agree with Chairman Bernanke that undervalued currency is an export subsidy causing market disruptions and fully dealing with such subsidies can involve some trade remedies that are not within the Banking Committee's jurisdiction and hence not within the scope of this bill. But, remedying countervailable export subsidies is a policy that could be fully appropriate and supported by myself and my colleagues through other legislative proposals.

I ask unanimous consent that the text of the bill, a one page summary of the bill, and letters of support be printed in the Record.

Mr. President, I am pleased to introduce the Family Leave Insurance Act of 2007 and especially pleased to be joined by my colleague Senator Stevens. This bill, which would provide 8 weeks of paid benefits to workers who take time off for reasons allowed under the Family and Medical Leave Act, FMLA, is an important step in continuing to help our Nation's workers to be both productive employees and responsible family members.

Before the FMLA, workers had no guarantee that their jobs would still be there if they took time off to care for loved ones or recover from illness themselves. Millions of Americans were forced into a challenging dilemma: care for their families, or provide for them.

That is why I worked to create the FMLA in 1985, and that is why I fought for its passage through 7 years of obstruction and two presidential vetoes, pointing out that its denial of guaranteed leave put America virtually alone among nations, industrialized or otherwise.

Finally, on February 5, 1993, the Family and Medical Leave Act was signed into law. Under its protection, eligible workers receive 12 weeks of leave every year, so that they can watch over a newborn or adopted baby, or help a parent through an illness, or get better themselves, knowing that their job will be there when they return. To date, more than 50 million Americans have taken that opportunity. The FMLA isn't just good for American workers, it is good for American business. Ninety percent of employers have reported that the FMLA had a neutral or positive effect on profits.

Today, the idea of guaranteed leave seems obvious; but now, it is time to take another step in making that hard-won leave a possibility for even more Americans. In the 21st century, working families should not have to give up the leave they earned because they cannot afford it, they deserve paid leave.

Why do we offer nothing, when the European standard is 14 paid weeks? Why are we one of only four countries in the world to deny paid maternity leave, leaving us in the company of Swaziland, Liberia, and Papua New Guinea?

For every worker who can weather a day without pay, three more can't afford the loss. To these workers, unpaid leave is a hollow promise, an impossible choice between the family they love and the job they need.

I believe it is a choice that no American should ever again be forced to make. When Congress passed and President Clinton signed the FMLA, we affirmed that health and family should never have to suffer because of the demands of work. I fail to see why that right should only be afforded to Americans in a certain income bracket.

With the introduction of the Family Leave Insurance Act, we take a huge step toward making family leave a possibility for all Americans. Its 8 weeks of paid leave per year will apply to employees who need time off for any of the reasons included in the FMLA: birth of a child; placement of an adopted or foster child; the care for a child, parent, or spouse with a serious medical condition; or recovery from a serious personal medical condition. Benefits will be tiered on the basis of wages, with the tiers themselves indexed to inflation. This structure will provide the greatest benefit to those with the lowest salaries. And workers who are covered by the FMLA will retain their health insurance and will be guaranteed a return to their job, or a comparable position, on their return.

The act creates a new Family Leave Insurance Fund into which premiums are paid, to finance benefit payments, allowing stakeholders to pool risk and lower costs, and funded through small, shared premiums. Those costs will be shared by employees and employers; the Federal Government will pay for administrative costs. Participation will be mandatory for all businesses with 50 employees or more; those with fewer employees can choose to participate and receive a discount on premium payments. To reduce administrative burdens for employers and employees, employers will pay leave benefits to employees through their regular payroll, with prompt reimbursement from the Family Leave Insurance Fund.

We know that many employers, both large and small, offer very generous leave policies, exemplifying best business practices. Through this legislation, we seek to support companies who offer paid leave so they continue to do so, and to create an incentive for smaller companies to offer paid leave. A provision in the bill allows employers to maintain their own paid leave plan, if it is certified to be equivalent or better to the plan in this legislation.

Our bill will also allow States flexibility in maintaining their existing programs. Several States already have systems to provide paid family and medical leave, and several more have legislation pending to create such systems. In recent years, more than 25 States have introduced legislation to create paid leave programs. The landscape in the States is changing quickly on policies for working families and there are complex issues around the interaction between this legislation, State programs and employers within States. We look forward to collaborating with States so they can maintain maximum flexibility, and provide the best leave policy, as the bill moves forward.

As the FMLA has demonstrated so strongly, family leave benefits both workers and businesses, and that is certainly the case for paid family leave. Paid leave cuts down on employee turnover and the high costs of training replacements; it has been shown to raise morale and productivity; and it levels the playing field by allowing small businesses to adopt a benefit that many of their larger competitors have been offering for years.

Our changing workforce demonstrates the strong need for paid family and medical leave. Almost 80 percent of the workforce is made up of

dual earner couples, who struggle to find time to care for their sick children or their own illnesses. In addition, approximately 40 percent of the workforce will be caring for older parents by 2010. For these and many other reasons, this bill is the right policy.

The FMLA established the principle, and now the Family Leave Insurance Act puts it into practice and into reach for more Americans. Its passage will bring America closer to the world's standards, help our businesses, and protect our workforce. In the lives of millions of Americans, it will help reduce the dilemma of balancing work and family. Let us continue to work together: Government, business and employees need to continue this conversation and improve our policies for working families and individual employees who need paid leave. I strongly urge my colleagues to support this bill.

Sen. Lisa MurkowskiR-AK · Jun 21, 2007

Mr. President, the Izembek and Alaska Peninsula Wildlife Refuge and Wilderness Enhancement Act authorizes a land exchange among the U.S. Department of the Interior, the State of Alaska, and the…

Mr. President, the Izembek and Alaska Peninsula Wildlife Refuge and Wilderness Enhancement Act authorizes a land exchange among the U.S. Department of the Interior, the State of Alaska, and the people of King Cove. King Cove is an Alaska Native village and many of its present day residents descend from the indigenous Aleut people who have lived and thrived in this isolated area of the Alaska Peninsula for over 4,000 years.

This bill provides the land for a road on which to travel to the nearest all-weather airport which is located in Cold Bay. The people of King Cove do not have a road to their airport today because a National Wildlife Refuge wilderness sits between their village and Cold Bay.

World War II prompted the construction of a major air facility at Cold Bay, which is about 25 miles north of King Cove. Today, the Cold Bay Airport with a 10,000 foot main runway and a 6,500 foot crosswind runway is one of the largest airport facilities in Alaska and is accessible 365 days a year. However, the problem for King Cove residents has always been their inability to get to the airport on a predictable basis due to constant, ever changing weather conditions, combined with King Cove's topographic constraints.

These topographic constraints are directly related to the location of King Cove's small gravel airstrip nestled between 3,000 foot volcanic peaks. To access the airstrip in King Cove, pilots must navigate a narrow opening in the mountains.

Over the past 30 years, efforts by King Cove residents attempting to reach the Cold Bay Airport have resulted in numerous small plane crashes, some fatal. Neither King Cove nor Cold Bay have the sort of hospital facilities that are found in Anchorage. When King Cove people have a serious medical condition, they need to be ``medevaced'' to Anchorage from Cold Bay. That assumes that they can reach the airport at Cold Bay.

This legislation accomplishes the goal of providing the King Cove people with a road to the airport. It accomplishes this goal in a way that provides a net gain, rather than a net loss, to wilderness. The exchange provided for in this bill will add 61,723 acres to the Izembek and Alaska Peninsula National Wildlife Refuges. It adds 45,456 acres of wilderness, the first new wilderness areas designated by the Congress in Alaska in a generation. Not since the passage of the Alaska National Interest Lands Conservation Act, ANILCA, has new wilderness been designated in Alaska.

More importantly, this bill will add key areas of wildlife habitat to these two world-class wildlife refuges. Habitat for some of the largest and wildest brown bears in the world will transfer from private to public ownership. Other areas include key habitat for internationally valued waterfowl such as stellar eiders and brants.

I am sad to say that this is not a new issue for this body. The people of King Cove have been seeking justice in the form of a simple road to Cold Bay for decades. Congress attempted to make things right for the people of King Cove about a decade ago and came up with an imperfect solution.

This imperfect solution involved the construction of a 17-mile road from King Cove to a point near the border of the Izembek Refuge wilderness and a very expensive hovercraft to ferry King Cove residents across the rough waters of Cold Bay. The community has concluded that it cannot afford the cost of the hovercraft solution.

This bill will finish the job started by the Congress a few years ago. This bill provides a wonderful combination of wilderness additions in return for a small road corridor within the Izembek Wildlife Refuge to permit the current 17-mile road to be completed all the way to Cold Bay. This is the fairest and most logical process by which the King Cove residents and the nation can all benefit.

I want to commend the parties who have worked on this bill. The State of Alaska, has brought nearly 43,000 acres to this exchange. Without this land, the exchange would not be possible. The King Cove Native Corporation, which is a Village Corporation created

by the Alaska Native Claim Settlement Act, ANCSA, is donating approximately 2,500 acres of high value wetland habitat in Kinzaroff Lagoon. This lagoon is part of the Izembek National Wildlife Refuge and will be designated as wilderness, so that the mouth of this lagoon will be in public ownership. The corporation is also offering another 10,500 acres, which will be made part of the Alaska Peninsula Wildlife Refuge while relinquishing another 5,400 acres of their ANCSA land in the Refuge.

The only land, which will leave Federal ownership in the area, is approximately 206 acres for a narrow road to connect the existing road from King Cove to the Cold Bay Airport. The route and alignment of the road, within the corridor established by the bill, will be determined through an inclusive, cooperative planning process.

It has been suggested by some that we should not reopen this issue-- it has always been so controversial. People who fought this battle before, and still have the scars to prove it, were told that putting a road in a national wildlife refuge creates a bad precedent. I have been warned that every environmental group in the Nation will line up against me if I pursue the exchange.

That may be true but this is how I see it. In the 25 years that have passed since the Alaska National Interest Lands Conservation Act, ANILCA, became law, I think most Alaskans have come to appreciate the value of setting aside land in Alaska for preservation. That appreciation took time. Many Alaskans, as you know, resisted ANILCA.

In return, it is appropriate for Alaskans to expect the conservation system units to be good neighbors to the aboriginal communities that they border. That hasn't always been the case. The Aleut people of King Cove inhabited their lands long before there was an Izembek National Wildlife Refuge. The King Cove people steadfastly maintain that they were not consulted before the decision was made to make the land that stands between their community and the airport a wilderness. It is their contention that thousands of others across the United States, Canada, and Europe were invited by the Federal Govermment to make their views known in this process, yet they were denied a voice in this most crucial decision affecting their native homeland.

To me the King Cove road isn't just a matter of transportation. It is a matter of respect for Native people. That is why I am willing to take up this cause on behalf of the Native people of King Cove. I ask my colleagues to join with me and with the Aleut people of King Cove to make their dream of a road to the airport, something that those in the Lower 48 take for granted, a reality.

I ask unanimous consent that the text of the bill be printed in the Record.

Sen. Christopher J. DoddD-CT · Jun 21, 2007

Mr. President, I am pleased to introduce the Family Leave Insurance Act of 2007 and especially pleased to be joined by my colleague Senator Stevens. This bill, which would provide 8 weeks of paid…

Our changing workforce demonstrates the strong need for paid family and medical leave. Almost 80 percent of the workforce is made up of

Sen. Max BaucusD-MT · Jun 21, 2007

Mr. President, today I am proud to introduce legislation with Senator Mike Crapo, House Ways and Means Chairman Charlie Rangel, and Congresswoman Jo Ann Emerson to help open a promising market to…

Mr. President, today I am proud to introduce legislation with Senator Mike Crapo, House Ways and Means Chairman Charlie Rangel, and Congresswoman Jo Ann Emerson to help open a promising market to American exports. That market is Cuba.

For too long, we have maintained ideologically driven restrictions that have undermined our export competitiveness in a market 90 miles away from us.

Just beyond our shoreline, our trading partners--especially Canada and China--are making multi billion-dollar investments in a Cuban economy that is growing at a rate of 7 to 12 percent per year. But the United States just stands by while these and other countries capitalize on opportunities in our own backyard.

Our economic policy toward Cuba simply is not working. This bill changes that.

The greatest opportunities exist in Cuba's agriculture sector. When Congress passed legislation allowing food and medicine sales to Cuba in 2000, some people said Cuba would never buy. Fidel Castro himself predicted that Cuba would buy ``not one grain'' from the United States.

But Mr. Castro was wrong. Agricultural sales happened. In 2004 alone, Cubans bought more than $375 million in American agricultural products. And, today, nearly every state in the union wants to get into the largest agriculture market in the Caribbean.

I have worked tirelessly to market Montana's high quality agriculture products, and it has paid off. In 2003, I inked a $10 million deal with Cuba. After we completed that deal, I went back to Havana and signed another deal--for $15 million. We have sent Montana wheat, beans and peas to Cuba, and that is just the beginning.

But it has not been easy. In 2005, the Treasury Department issued a rule to undermine the will of Congress. In landmark legislation, Congress in 2000 facilitated agriculture exports to Cuba by authorizing the use of cash basis sales. But the Treasury rule made such transactions impossible. Instead, sellers had to resort to foreign letters of credit, which are time-consuming, complicated, and expensive, especially for smaller exporters.

The Treasury rule stunted what had been meteoric growth in American agriculture exports to Cuba. This rule flies in the face of the law, and it will not stand.

Today's bill overturns the Treasury rule. It clarifies that not only do we intend to let these cash basis sales go forward, we mean to expand and promote them. This bill also ensures that exporters and commodity groups looking to get into the Cuban market get help from the Department of Agriculture. And it would require our Agriculture Department to promote American agricultural exports for Cuba.

Increased agriculture sales will allow Cubans to become familiar with more and more American branded food products. But a little-known provision of U.S. law--known as section 211--invites Cuba to withhold trademark protection from these and other American food exports. Today's bill also addresses that problem.

Section 211 bars U.S. courts from hearing claims of foreign nationals to trademarks similar to or associated with expropriated properties. It also forbids the United States from allowing foreign nationals to register or renew such trademark rights. In other words, it denies trademark protection to Cuban assets. If we are not going to recognize Cuban brands, why should Cuba, in the future, recognize American brands?

The World Trade Organization has already struck down section 211 as inconsistent with U.S. international trade obligations. It is time for this Congress to do the same. My bill repeals this wrong-headed and WTO-inconsistent provision. It ensures the continued security of thousands of American-owned trademarks already registered in Cuba.

I am a big proponent of getting American food products into Cuba. But I also fundamentally believe that we should never use food and medicine as a weapon against a people, no matter what we think of their government.

Many of my colleagues agree with me on this. This is why Congress, in the 1992 Cuban Democracy Act, authorized medicine and medical supplies sales to Cuba. But, at that time, we didn't get it quite right. We passed a law with good intent but loaded it up with so many restrictions that we have made medical sales to Cuba more difficult than medical sales to Iran or North Korea.

My bill will correct this lopsided and inhumane policy. It will allow Cubans access to our medicines and medical products--which are the best money can buy--on the same terms that we offer to other regimes. There is no sound reason to deny our products to our Cuban neighbors but allow such sales to Iran and North Korea.

I have taken Montana farmers and ranchers to Cuba to explore export opportunities. But such opportunities are rare because our government, with limited exceptions, does not permit travel to Cuba. And those exceptions are so riddled with red tape as to discourage applicants from making use of them.

Many Americans are ready and willing to travel to Cuba, and not just to make agriculture sales. Religious organizations have deep roots on the island--since before the Castro government. They are a lifeline, bringing hope, help, and brotherhood to their counterparts in Cuba. American academics and professionals engage in thoughtful exchanges of research and ideas. American students visit with Cuban students, and they learn lessons a teacher cannot imbue.

Nearly everyone in Cuba has a dear friend or relative living in the United States. Tens of thousands of Cubans who found their way to America save their hard earned dollars on frequent trips home, their bags packed with medicine, vitamins, and clothing.

Rather than encourage these meaningful contacts between Cubans and Americans, our government stifles our interaction. Rather than unite the Cuban family, our government seeks to divide it further.

Americans do not benefit from this policy. The Cuban people do not benefit from this policy. Only those who seek to keep Americans and Cubans apart benefit from our misguided policy of isolation.

It is time to reach out to the Cuban people. It is time to restore Americans' fundamental right to travel anywhere they want. It is time to lift the travel ban.

I am proud of our bill. It spells out the right policy during this fundamental transition in Cuba. It helps farmers and ranchers in Montana and elsewhere seek opportunities in a nearby market. And it affords our citizens the opportunity to spread American generosity, assistance, and values to Cuba.

I look forward to working with Senator Crapo, Chairman Rangel, Congresswoman Emerson, and others to put our trade relationship with Cuba on the right path.

Sen. Susan M. CollinsR-ME · Jun 21, 2007

Mr. President, I rise today on behalf of myself, Senator Conrad, Senator Smith, Senator Mikulski, and Senator Inouye, to introduce legislation to ensure that our seniors and disabled citizens have…

Mr. President, I rise today on behalf of myself, Senator Conrad, Senator Smith, Senator Mikulski, and Senator Inouye, to introduce legislation to ensure that our seniors and disabled citizens have timely access to home health services under the Medicare Program.

Nurse practitioners, physician assistants, certified nurse midwives, and clinical nurse specialists are all playing increasingly important roles in the delivery of health care services, particularly in rural and medically underserved areas of our country where physicians may be in scarce supply. In recognition of their growing role, Congress, in 1997, authorized Medicare to begin paying for physician services provided by these health professionals as long as those services are within their scope of practice under State law.

Despite their expanded role, these advanced practice registered nurses and physician assistants are currently unable to order home health services for their Medicare patients. Under current law, only physicians are allowed to certify or initiate home health care for Medicare patients, even though they may not be as familiar with the patient's case as the non-physician provider. In fact, in many cases, the certifying physician may not even have a relationship with the patient and must rely upon the input of the nurse practitioner, physician assistant, clinical nurse specialist or certified nurse midwife to order the medically necessary home health care. At best, this requirement adds more paperwork and a number of unnecessary steps to the process before home health care can be provided. At worst, it can lead to needless delays in getting Medicare patients the home health care they need simply because a physician is not readily available to sign the form.

The inability of advanced practice registered nurses and physician assistants to order home health care is particularly burdensome for Medicare beneficiaries in medically underserved areas, where these providers may be the only health care professionals available. For example, needed home health care was delayed by more than a week for a Medicare patient in Nevada because the physician assistant was the only health care professional

serving the patient's small rural town, and the supervising physician was located 60 miles away.

A nurse practitioner told me about another case in which her collaborating physician had just lost her father and was not available. As a consequence, the patient experienced a 2-day delay in getting needed care while they waited to get the paperwork signed by another physician. Another nurse practitioner pointed out that it is ridiculous that she can order physical and occupational therapy in a subacute facility but cannot order home health care. One of her patients had to wait 11 days after being discharged before his physical and occupational therapy could continue simply because the home health agency had difficulty finding a physician to certify the continuation of the same therapy that the nurse practitioner had been able to authorize when the patient was in the facility.

The Home Health Care Planning Improvement Act will help to ensure that our Medicare beneficiaries get the home health care they need when they need it by allowing physician assistants, nurse practitioners, clinical nurse specialists and certified nurse midwives to order home health services. Our legislation is supported by the National Association for Home Care and Hospice, the American Nurses Association, the American Academy of Physician Assistants, the American College of Nurse Practitioners, the American College of Nurse Midwives, the American Academy of Nurse Practitioners, and the Visiting Nurse Associations of America.

I urge my colleagues to sign onto this legislation as cosponsors. I ask unanimous consent that letters of support be printed in the Record.

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Sen. Ted StevensR-AK · Jun 21, 2007

Mr. President, earlier today, Senator Dodd and I introduced the Family Leave Insurance Act of 2007, which builds upon important protections established by the Family and Medical Leave Act, FMLA, of…

Our legislation would provide 8 weeks of paid benefits to private and Federal employees who take leave for reasons permitted by the FMLA. These include a serious health condition; care for a critically ill child, spouse, or parent; and the birth or adoption of a child.

Benefits would be provided to workers based on their annual income level. As an example, those earning less than $20,000 per year would receive 100 percent of their benefits, while those earning $60,000 to $97,000 would receive 40 percent. This scaled approach has two advantages: it will keep program costs low, and offer the greatest help to those who need it most.

In the past, many have expressed apprehension over the costs associated with family and medical leave. These concerns are valid, and steps must be taken to ensure neither employees nor employers are burdened by this or any similar program.

As introduced, this insurance fund would be financed by employees, employers, and the Federal Government. Employees would contribute 0.2 percent of their earnings, employers would match this percentage, and the Federal Government would pay any administrative expenses not covered by those payments. In truth, these costs are minimal for all involved. A worker who receives a $1,000 paycheck would disburse just $2 to receive full coverage.

While my support for this bill is not absolute, it does address an important shortcoming of the FMLA: employees who need leave often do not take time off because they simply cannot afford to do so. Senator Dodd has rightly described this as a terrible choice for individuals-- one which forces a decision between ``the job they need and the family they love.'' Those of us in the Senate must do everything we can to help hard-working American families, and this bill represents a significant first step in those efforts.

As the father of six children, I deeply understand the challenges families face following childbirth, in times of sickness, and when loved ones fall ill. In Alaska, the majority of parents hold full-time jobs outside the home, which often makes this pressure even more intense.

I commend Senator Dodd for his continued leadership on this issue, and look forward to working with my Senate colleagues and leaders in the business community to improve this bill as it moves through the legislative process.

Sen. Ted StevensR-AK · Jun 21, 2007

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Introduced in SenateIssued June 21, 2007

110th CONGRESS

1st Session

S. 1681

IN THE SENATE OF THE UNITED STATES

June 21, 2007

Mr. Dodd (for himself and Mr. Stevens) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

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

Short title

This Act may be cited as the Family Leave Insurance Act of 2007.

Congressional findings

Congress finds the following:

(1)

Since its passage, the Family and Medical Leave Act of 1993 (referred to in this section as the FMLA) has assisted millions of employees in balancing the demands of their jobs with their family responsibilities. However, many eligible employees are not able to utilize the benefits of the FMLA because FMLA leave is unpaid. According to a 2000 survey on the FMLA by the Department of Labor, among those employees who need FMLA leave and don't take it, 78 percent don't take it because they can't afford it.

(2)

An analysis of national data from the 2000 FMLA survey by the Center for Women and Work at Rutgers University suggests that employees suffer severe financial hardship in order to be responsible family members and provide minor children and aging parents with the care they need. For example, among employees who needed to care for a seriously ill child—

(A)

42 percent took time off even though they received no pay while doing so;

(B)

46 percent received full or partial pay during at least part of the time off (including receiving pay for reasons such as use of vacation time); and

(C)

12 percent could not take time off to care for the child due to lack of pay.

(3)

Americans who provide direct care for their family members prevent the worsening of illnesses and promote strong recovery. For example, the length of a child's stay in the hospital decreases by 31 percent when parents are able to be present.

(4)

Forty-three percent of private sector employees do not have access to paid sick leave, as reported in the Bureau of Labor Statistics National Compensation Survey in March 2006. Of those employees who do have paid sick leave, many are not able to use their own sick leave to receive payment while caring for family members who are ill.

(5)

Family and medical leave benefits strengthen and support the business sector through health care savings and increased employee retention and productivity.

(6)

Demographic changes over the past few decades have altered the face and needs of the workforce. It is now common for both parents to be in the workforce and for men and women to also serve as the primary caregivers for elderly spouses or parents.

(7)

According to the Bureau of the Census and the Bureau of Labor Statistics, 56 percent of women with children under age 1 are in the labor force, while 71 percent of all women with dependent children under age 18 are in the labor force.

(8)

Nearly 2/3 of Americans under the age of 60 expect to be responsible for the care of an elderly relative in the next 10 years.

General definitions

(a)

In general

The definitions provided by section 101 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611), other than the definitions of the terms eligible employee and employer, shall apply for purposes of this Act.

(b)

Additional definitions

In this Act, the following additional definitions shall apply:

(1)

Board of trustees

The term Board of Trustees means the Board of Trustees of the Insurance Fund.

(2)

Insurance fund

The term Insurance Fund means the Family and Medical Leave Insurance Fund established under section 301.

(3)

Managing trustee

The term Managing Trustee means the Managing Trustee of the Board of Trustees of the Insurance Fund.

Family and medical leave insurance program

101.

Program definitions

In this title:

(1)

Eligible employee

The term eligible employee means any of the following:

(A)

An employee who—

(i)

is an eligible employee, as defined in section 101(2) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(2)) but is not an employee of the Federal Government; and

(ii)

earned wages with a covered employer for 12 of the last 18 months, prior to filing an application for leave benefits under this title.

(B)

An employee—

(i)

of a small employer that has elected to participate in the Program under this title in accordance with such regulations as the Secretary shall prescribe;

(ii)

who meets the requirements of subparagraphs (A) and (C) of section 101(2) of such Act (29 U.S.C. 2611(2)), but is not an employee of the Federal Government; and

(iii)

earned wages with a covered employer for 12 of the last 18 months, prior to filing an application for leave benefits under this title.

(C)

A self-employed individual who has—

(i)

elected to participate in the Program under this title in accordance with such regulations as the Secretary shall prescribe;

(ii)

self-employment income while a covered employer for 12 of the last 18 months, prior to filing an application for leave benefits under this title; and

(iii)

paid premiums under section 1401(c) of the Internal Revenue Code of 1986 with respect to such self-employment income.

(2)

Employer-related definitions

(A)

Covered employer

The term covered employer means a person—

(i)

that is—

(I)

an employer;

(II)

a small employer that has elected to participate in the Program under this title in accordance with such regulations as the Secretary shall prescribe; or

(III)

a self-employed individual who has elected to so participate; and

(ii)

that is not a voluntary plan employer.

(B)

Employer

The term employer means a person that—

(i)

is an employer, as defined in section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(4)); but

(ii)

is not an entity of the Federal Government.

(C)

Small employer

The term small employer—

(i)

means any person engaged in commerce or in any industry or activity affecting commerce who employs not less than 2 and not more than 49 employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year; and

(ii)

includes—

(I)

any person who acts, directly or indirectly, in the interest of an employer described in clause (i) to any of the employees of such employer;

(II)

any successor in interest of an employer described in clause (i); and

(III)

any public agency, as defined in section 3(x) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(x)) that is an employer described in clause (i) but is not an entity of the Federal Government.

(D)

Voluntary plan employer

The term voluntary plan employer means an employer for which the Secretary has approved a voluntary plan under section 104 for the period involved.

(3)

Leave benefit

The term leave benefit means a family and medical leave insurance benefit described in section 103.

(4)

Program

The term Program means the Family and Medical Leave Insurance Program established under section 102.

(5)

Voluntary paid benefit

The term voluntary paid benefit means a family and medical leave insurance benefit provided under a voluntary plan approved under section 104 for the period involved.

102.

Establishment of program

(a)

Federal program

The Secretary of Labor shall establish a Family and Medical Leave Insurance Program. In carrying out the Program, the Secretary shall ensure that covered employers provide family and medical leave insurance benefits described in section 103 to eligible employees. At the direction of the Secretary, the Managing Trustee shall pay funds from the Insurance Fund to reimburse the covered employers for the leave benefits.

(b)

Employer participation

Each covered employer shall participate in the Program.

103.

Program benefits

(a)

Entitlement

Subject to subsections (b), (d), and (e), an eligible employee of a covered employer shall be entitled to a family and medical leave insurance benefit for a total of 8 workweeks of leave taken under the Family and Medical Leave Act of 1993 or other authority during any 12-month period for 1 or more of the following reasons:

(1)

Because of the birth of a son or daughter of the employee and in order to care for such 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 the spouse, or a son, daughter, or parent, of the employee, if such spouse, son, daughter, or parent has a serious health condition.

(4)

Because of a serious health condition that makes the employee unable to perform the functions of the position of such employee.

(b)

Waiting period

During each 12-month period described in subsection (a), each eligible employee shall be subject to a waiting period of 5 consecutive workdays of leave described in subsection (a) (but not more than 7 calendar days), during which a leave benefit shall not be paid to the employee. The waiting period shall not reduce the 8 workweeks of leave benefits available under subsection (a).

(c)

Benefit amount

(1)

In general

Subject to paragraph (2), an eligible employee's leave benefit for any workday on which the employee takes leave as described in subsection (a) shall be calculated as—

(A)

in the case of an employee with an annual income of not more than $20,000, an amount equal to 100 percent of that employee’s daily earnings;

(B)

in the case of an employee with an annual income of more than $20,000 and not more than $30,000, an amount equal to the greater of—

(i)

75 percent of that employee's daily earnings; or

(ii)

100 percent of the daily earnings of an employee with an annual income of $20,000;

(C)

in the case of an employee with an annual income of more than $30,000 and not more than $60,000, an amount equal to the greater of—

(i)

55 percent of that employee's daily earnings; or

(ii)

75 percent of the daily earnings of an employee with an annual income of $30,000;

(D)

in the case of an employee with an annual income of more than $60,000 and not more than $97,000, an amount equal to the greater of—

(i)

40 percent of that employee's daily earnings; or

(ii)

55 percent of the daily earnings of an employee with an annual income of $60,000; and

(E)

in the case of an employee with an annual income of more than $97,000, an amount equal to 40 percent of the daily earnings of an employee with an annual income of $97,000.

(2)

Indexing of annual income categories

(A)

In general

The Secretary shall index the annual income amounts specified in paragraph (1) for each calendar year, using the national average wage index, as determined under section 209(k) of the Social Security Act (42 U.S.C. 409(k)).

(B)

Publication

Not later than the November 1 preceding each calendar year, the Secretary shall publish in the Federal Register the indexed amount determined under subparagraph (A) for that calendar year.

(d)

Application

(1)

In general

To be qualified to receive a leave benefit under the Program, an eligible employee shall submit an application to the covered employer of the employee at such time, in such manner, and containing the information specified in paragraph (2), as appropriate, and such additional information as the Secretary may by regulation require.

(2)

Certification requirements

(A)

In general

The covered employer shall require that an application submitted under paragraph (1) for a leave benefit related to leave taken for a basis described in paragraph (3) or (4) of subsection (a) contain a certification, submitted in a timely manner, issued by the health care provider of the eligible employee or of the son, daughter, spouse, or parent, as appropriate, and meeting the requirements of subsection (b) of section 103 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2613) in connection with such leave.

(B)

Recertification

In any case in which the covered employer has reason to doubt the validity of the certification provided under subparagraph (A), the covered employer may require, at the expense of the covered employer, that the eligible employee obtain the opinion of a second health care provider designated or approved by the covered employer (subject to subsection (c) of such section 103) concerning the information certified under subparagraph (A). The employee shall submit the opinion as an amendment to the application.

(C)

Resolution

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 employer may require, at the expense of the covered employer, that the employee obtain the opinion of a third health care provider designated or approved jointly by the covered employer 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 covered employer and the employee. The employee shall submit the opinion as an amendment to the application.

(e)

Payment of benefits to eligible employees

(1)

Determination

The covered employer shall review the application of the eligible employee and determine whether to certify a leave benefit payment for the employee.

(2)

Provision of payment

If the covered employer determines that the employer will certify the payment, the employer shall provide the payment to the eligible employee. Subject to subsection (d)(2) and paragraph (4), the covered employer shall provide the payment to the employee so as to maintain, as closely as possible, the regular payment schedule used for the employee.

(3)

Review

Any eligible employee dissatisfied with any initial determination under paragraph (1) shall be entitled to—

(A)

reconsideration of the determination by the covered employer;

(B)

an appeal to the Secretary of the employer’s final determination after such reconsideration; and

(C)

judicial review of the Secretary’s final decision after that appeal.

(4)

Withholding of certification and payment

In any case in which reconsideration, an appeal, or a review, relating to a covered employer’s determination about certification of a leave benefit payment, is or may be sought under paragraph (3), the covered employer may withhold certification of the payment, and provision of the payment, pending such reconsideration, appeal, or review.

(5)

Other compensation

Except as otherwise provided in this title, no employee shall be eligible to receive a leave benefit under the Program for any period during which—

(A)

the employee is receiving worker's compensation, or unemployment compensation, in connection with the event for which the employee is taking the leave; or

(B)

the employee is receiving a voluntary paid benefit from an employer under a voluntary plan approved under section 104 for the period.

(f)

Reimbursement to covered employers for benefits

(1)

Certification to Secretary

Subject to subsection (e)(4), on the final decision of the covered employer or on the final judgment of a court pursuant to subsection (e)(3) that any eligible employee is entitled to any payment under this section, and not later than 1 year after making the payment to the employee, the covered employer shall submit to the Secretary an application in which the employer—

(A)

certifies the name of the employee, the date on which the payment was made, the amount of the payment, and the address of the employer; and

(B)

requests reimbursement of the payment.

(2)

Review and reimbursement

(A)

Review period

The Secretary shall review the application. Not later than 30 days after receiving the application, the Secretary shall approve or deny the application.

(B)

Reimbursement

If the Secretary approves the application—

(i)

the Secretary shall certify to the Managing Trustee the name and address of the covered employer, and the amount of the payment; and

(ii)

the Managing Trustee shall immediately reimburse the covered employer by paying the amount certified by the Secretary from the Insurance Fund to the covered employer, subject to paragraph (4).

(3)

Payment from insurance fund

In making reimbursements for leave benefit payments under this section, the Managing Trustee may only use amounts paid from the Insurance Fund.

(4)

Limitation on payments

(A)

In general

The Managing Trustee shall not pay an amount from the Insurance Fund that is greater than the amount remaining in the Insurance Fund.

(B)

Notice of insufficient funds

The Managing Trustee shall publish in the Federal Register a notice of insufficient funds when the Managing Trustee determines that insufficient funds remain in the Insurance Fund to reimburse covered employers for leave benefit payments. When such a notice is in effect, the employers shall not be required to pay leave benefits under this section.

(C)

Revocation of notice

If a notice of insufficient funds is in effect, and the Managing Trustee determines that sufficient funds have been deposited to the Insurance Fund to make such reimbursements, the Managing Trustee shall revoke the notice, by publication in the Federal Register. On revocation of the notice, covered employers shall be required to pay leave benefits under this section (including leave benefits requested by eligible employees for periods when the notice was in effect).

(5)

Finding regarding congressional authority

Congress finds that Congress has the authority to appropriate funds to the Insurance Fund, including appropriating such funds in periods of national crisis such as a period following a national disaster.

104.

Voluntary employer plan

(a)

In general

Any employer may submit an application to the Secretary for approval of a voluntary plan. The Secretary may require the employer to resubmit the plan for approval on a annual basis. During a period for which the Secretary has approved a plan, the applicant shall provide a voluntary paid benefit under the plan rather than participating in the Program.

(b)

Approval

The Secretary shall approve the voluntary plan of the applicant if the Secretary finds each of the following with respect to the applicant:

(1)

The rights afforded to the employees covered under the plan are equal to or greater than the rights afforded through the Program.

(2)

The plan has been made available to all of the employees of the applicant employed in the United States or to all employees at any 1 distinct, separate establishment maintained by the applicant in the United States.

(3)

The plan provides for insurance to be issued by an admitted disability insurer approved by the Secretary or equivalent insurance (which may be self-insurance).

(4)

The applicant has consented to the plan and has agreed to make the premium contributions required, if any, and transmit the proceeds to the disability insurer, if any.

(5)

The plan provides for the inclusion of future employees.

(6)

(A)

The plan will be in effect for a period of not less than 1 year and, thereafter, continuously unless the Secretary finds that the applicant has given notice of intent to terminate the plan, as described in subparagraph (B), and that the fee described in subparagraph (C) has been paid.

(B)

The notice shall be filed in writing with the Secretary and shall be effective—

(i)

on the anniversary of the effective date of the plan next following the date of the filing of the notice; or

(ii)

if such anniversary would occur less than 30 days after the date of the filing of the notice, on the next anniversary of that effective date.

(C)

The applicant shall pay a fee to the Secretary in such amount as the Secretary determines to be adequate to provide leave benefits under this title to all eligible employees of the applicant for a period of at least 4 months, plus an amount to pay administrative costs related to processing and paying such benefits.

(D)

Amounts received by the Secretary under this paragraph shall be deposited in the Insurance Fund.

(7)

The amount of deductions from the wages of an employee that is in effect for the plan shall not be increased on any date other than on the date of an anniversary of the effective date of the plan.

(c)

Orders and withdrawal of approval

If the Secretary finds that a voluntary plan employer is not paying voluntary paid benefits required under the voluntary plan to the employees under the plan, the Secretary may order the employer to make the payments. If the Secretary finds that a voluntary plan employer is not complying with the provisions of the plan, including by not paying voluntary paid benefits required under the plan, the Secretary may revoke the Secretary’s approval for the plan, and require the employer to participate in the Program.

105.

Additional benefits

(a)

Additional employer benefits

(1)

Covered employers

Nothing in this title shall be construed to discourage a covered employer from providing an additional benefit in conjunction with leave described in section 103(a) to an eligible employee, in addition to the leave benefit provided to that employee. The additional employer benefit shall not reduce the amount of the leave benefit that an eligible employee receives under this title.

(2)

Voluntary plan employers

Nothing in this title shall be construed to discourage a voluntary plan employer from providing an additional benefit in conjunction with leave described in section 103(a) to an employee, in addition to the voluntary paid benefit provided to that employee. The additional employer benefit shall not reduce the amount of the voluntary paid benefit that an employee receives under a voluntary plan described in section 104.

(b)

Collective bargaining

(1)

More protective

Nothing in this title shall be construed to diminish the obligation of a covered employer or voluntary plan employer to comply with any collective bargaining agreement or any employment benefit program or plan that provides greater paid leave rights to employees than the rights established under this title (including rights established under a plan described in section 104).

(2)

Less protective

The rights established for employees under this title (including rights established under a plan described in section 104) shall not be diminished by any collective bargaining agreement or any employment benefit program or plan.

(c)

Sense of the Senate

It is the sense of the Senate that Federal law should be enacted to permit a State to continue to implement an existing (as of the date of enactment of this Act) paid family and medical leave or temporary disability insurance program that is determined by the Secretary to provide to employees equal or greater rights than the rights established under the Program.

106.

Prohibited acts by employer

(a)

Interference with rights

It shall be unlawful for any covered 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 covered 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.

107.

Enforcement

(a)

Civil action by employees

(1)

Liability

Any covered 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 8 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 a covered employer who has violated section 106 proves to the satisfaction of the court that the act or omission which violated section 106 was in good faith and that the employer had reasonable grounds for believing that the act or omission was not a violation of section 106, 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 covered employer (including a public agency) in any Federal or State court of competent jurisdiction by any 1 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 paragraph (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 clause (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 subsection (a)(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 section 106, 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 by the Secretary for the purposes of this subsection, it shall be considered to be commenced on the date when the complaint is filed.

(d)

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 covered 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. The Secretary shall have access to the records for purposes of conducting audits.

(3)

Required submissions generally limited to an annual basis

The Secretary shall not under the authority of this subsection require any covered 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 subsection (b).

(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).

108.

Penalties

(a)

Penalties for submission of false certifications

If the Secretary finds that any individual submits a false certification of the health condition of any person in order to obtain leave benefits under this title with the intent to defraud, 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 subsection shall be deposited in the Insurance Fund, notwithstanding the provisions of title 31, United States Code and used to reimburse the covered employers involved for the amount of the leave benefits.

(b)

Criminal penalties for false statements and solicitations

Whoever—

(1)

makes or causes to be made any false statement in support of an application for leave 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 leave 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 leave 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 to engage 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.

109.

Education programs

(a)

Authority

The Secretary shall develop and maintain a program of education concerning the rights and leave benefits under this title.

(b)

Notice to employers

The Secretary shall provide to each covered employer a notice informing employees of the rights and leave benefits available under this title. The notice shall be given by every covered employer to each employee hired, and to each employee taking leave as described in section 103(a).

110.

Treatment of payments and reimbursements

For purposes of the Internal Revenue Code of 1986—

(1)

any payment of a leave benefit by any covered employer shall not be deductible; and

(2)

any reimbursement of such payment shall not be included in gross income.

111.

Regulations

The Secretary shall issue regulations to carry out this title.

112.

Effective date

This title shall take effect on January 1, 2008, and shall apply to periods of leave that commence on or after January 1, 2009.

Civil service family and medical leave insurance program

201.

Program definitions

In this title:

(1)

Agency

The term agency means an agency covered under subchapter V of chapter 63 of title 5, United States Code.

(2)

Agency employee

The term agency employee means an employee who—

(A)

meets the requirements of paragraph (1) of section 6381 of title 5, United States Code; and

(B)

has earned wages with an agency for 12 of the last 18 months, prior to filing an application for leave benefits under this title.

202.

Establishment of program

(a)

In general

The Director of the Office of Personnel Management shall establish a Civil Service Family and Medical Leave Insurance Program, and shall issue regulations providing for the implementation of the program. In issuing the regulations, the Director shall require that the Director shall provide, or that the agencies shall provide, family and medical leave insurance benefits described in section 103 to agency employees. The regulations issued under this subsection shall include provisions that are the same as regulations issued by the Secretary to implement the statutory provisions of sections 103, 105, 109, and 110, except insofar as the Director may determine, for good cause shown and stated together with the regulations, that a modification of the regulations would be more effective for the implementation of the rights and protections under those sections. The regulations shall provide for appropriate remedies and procedures for violations of this title.

(b)

Payment

At the direction of the Director or the head of an agency, as specified in the regulations, the Managing Trustee shall pay funds from the Insurance Fund for the leave benefits.

III

Family and medical leave insurance fund

301.

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 Insurance Fund. The Insurance Fund shall consist of such amounts as may be deposited in, or appropriated to, such fund as provided in this section.

(b)

Appropriations to Insurance Fund

(1)

Amounts appropriated

There is appropriated to the Insurance Fund for fiscal year 2008 and each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 percent of—

(A)

the family and medical leave premiums imposed by sections 3101(c) and 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 under subtitle F of such Code after December 31, 2007, as determined by the Secretary of the Treasury by applying the applicable rates of premium payment 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 of Social Security in accordance with such reports; and

(B)

the family and medical leave premiums 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 after December 31, 2007, as determined by the Secretary of the Treasury by applying the applicable rate of premium payment 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 of Social Security 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 Insurance Fund. Such amounts shall be determined on the basis of estimates by the Secretary of the Treasury of the premiums, 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 premiums.

(3)

Investments

All amounts transferred to the Insurance Fund under paragraph (2) shall be invested by the Managing Trustee referred to in section 302(c) in the same manner and to the same extent as the other assets of the Insurance Fund.

302.

Board of trustees

(a)

Establishment and membership

With respect to the Insurance Fund, there is established a body to be known as the Board of Trustees of the Insurance 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 Insurance Fund;

(2)

report to Congress not later than April 1 of each year—

(A)

on the operation and status of the Insurance 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 Insurance Fund during the fiscal year in which the report is made and the next 2 fiscal years;

(3)

report immediately to Congress whenever the Board is of the opinion that the amount in the Insurance Fund is unduly small; and

(4)

review the general policies followed in managing the Insurance Fund, and recommend changes in such policies, including necessary changes in the provisions of law that govern the way in which the Insurance 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 Insurance 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 Insurance 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 Insurance 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.

(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 Insurance Fund.

303.

Investment of the Family and Medical Leave Insurance Fund

(a)

Obligations

It shall be the duty of the Managing Trustee to invest such portion of the Insurance 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 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 Insurance Fund. Such obligations issued for purchase by the Insurance Fund shall have dates of maturity fixed with due regard for the needs of the Insurance 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 Insurance Fund (except public debt obligations issued exclusively to the Insurance 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 Insurance Fund shall be credited to and form a part of the Insurance Fund.

304.

Payments from Family and Medical Leave Insurance Fund

The Managing Trustee shall pay from time to time from the Insurance Fund such amounts as the Secretary of Labor certifies are necessary to make the payments provided for by section 103, and payments with respect to administrative expenses under section 305.

305.

Administrative expenses

(a)

Availability of insurance fund

Under regulations that shall be prescribed by the Secretary of Labor, funds shall be made available from the Insurance 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 such amounts as Congress may determine to be appropriate to pay the costs of the part of the administration of this Act (including start-up costs, technical assistance, and costs for small employers electing to participate in the Family and Medical Leave Insurance Program) for which the Secretary of Labor is responsible.

(c)

Gifts and bequests

The Managing Trustee may accept on behalf of the United States money gifts and bequests made unconditionally to the Insurance Fund for the benefit of the Insurance Fund or any activity financed through the Insurance Fund and such gifts and bequests shall be deposited into the Insurance 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.).

306.

Amendments to the Internal Revenue Code of 1986

(a)

Employee premiums

Section 3101 of the Internal Revenue Code of 1986 (relating to tax on employees) is amended—

(1)

by redesignating subsection (c) as subsection (d); and

(2)

by inserting after subsection (c) the following new subsection:

(c)

Family and medical leave premiums

(1)

In general

In addition to the taxes imposed by subsections (a) and (b), there is imposed on the income of every individual a family and medical leave premium equal to the applicable percentage of the wages (as defined in section 3121(a)) received by the individual with respect to employment (as defined in section 3121(b)).

(2)

Applicable percentage

For purposes of paragraph (1), the applicable percentage is—

(A)

0.1 percent with respect to periods of employment by a small employer (as defined in section 3(b) of the Family Leave Insurance Act of 2007) electing to participate in the Family and Medical Leave Insurance Program (established under section 102 of such Act); and

(B)

0.2 percent with respect to all other periods of employment.

(3)

Exception for certain employment

Paragraph (1) shall not apply with respect to a period of employment—

(A)

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 Leave Insurance Program (established under section 102 of the Family Leave Insurance Act of 2007); or

(B)

by a small employer (as so defined) who has not elected to participate in such Program.

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)

Employer premiums

Section 3111 of the Internal Revenue Code of 1986 (relating to tax on employers) is amended—

(1)

by redesignating subsection (c) as subsection (d); and

(2)

by inserting after subsection (c) the following new subsection:

(c)

Family and medical leave premiums

(1)

In general

In addition to the excise taxes imposed by subsections (a) and (b), there is imposed on every employer a family and medical leave premium, with respect to having individuals in such employer's employ, equal to the applicable percentage of the wages (as defined in section 3121(a)) paid by such employer with respect to employment (as defined in section 3121(b)).

(2)

Applicable percentage

For purposes of paragraph (1), the applicable percentage is—

(A)

0.1 percent with respect to small employers (as defined in section 3(b) of the Family Leave Insurance Act of 2007) electing to participate in the Family and Medical Leave Insurance Program (established under section 102 of such Act); and

(B)

0.2 percent with respect to all other employers.

(3)

Exception for certain employers

Paragraph (1) shall not apply for any period with respect to an employer to whom paragraph (1) of section 3101(c) does not apply by reason of paragraph (3) thereof.

(c)

Self-employed premiums

Section 1401 of the Internal Revenue Code of 1986 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 leave premiums

(1)

In general

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, a family and medical leave premium equal to 0.2 percent of the amount of the self-employment income for such taxable year.

(2)

Exception for certain employers

Paragraph (1) shall not apply for any period with respect to an employer who has not elected to participate in the Family and Medical Leave Insurance Program (established under section 102 of the Family Leave Insurance Act of 2007).

(d)

Conforming amendments to Social Security Act

Section 201 of the Social Security Act (42 U.S.C. 401) is amended—

(1)

by striking sections 3101(b) and 3111(b) both places it appears in subsection (a)(3) and inserting sections 3101(b), 3101(c), 3111(b), and 3111(c), and

(2)

by striking section 1401(b) both places it appears in subsection (a)(4) and inserting sections 1401(b) and 1401(c).

(e)

Effective Date

(1)

Employment premiums

The amendments made by subsections (a), (b), and (d)(1) shall apply to wages paid after December 31, 2007.

(2)

Self-employment premiums

The amendments made by subsections (c) and (d)(2) shall apply to taxable years beginning after December 31, 2007.