Bill Summary – FastDemocracy

0561.01000
     Sixty-eighth
     Legislative Assembly                     HOUSE BILL NO. 1460
     of North Dakota
     Introduced by
       Representatives Hanson, Christy, Ista, Richter, Schneider, Warrey
       Senators Cleary, Hogan
  A BILL for an Act to create and enact chapter 34-06.2, a new section to chapter 57-38, and a
  new subdivision to subsection 7 of section 57-38-30.3 of the North Dakota Century Code,
  relating to a paid family medical leave program and an income tax credit for contributions paid
  into the paid family medical leave fund on behalf of eligible employees; to provide an
  appropriation; to provide for a transfer; and to provide an effective date.
  BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
      SECTION 1. Chapter 34-06.2 of the North Dakota Century Code is created and enacted as
  follows:
      34-06.2-01. Definitions.
     As used in this chapter:
     1.     "Commissioner" means the labor commissioner.
     2.     "Eligible employee" means an employee who works for a single employer.
     3.     "Employee" means an individual, regardless of age, who performs part-time or
            full-time services for an employer for remuneration.
     4.     "Employer" means a person within the state which engages the services of employees
            for remuneration. The term includes:
            a.   The state and its political subdivisions.
            b.   A public and quasi-public corporation in the state.
            c.   A partnership, limited liability company, association, and private corporation,
                 including a public service corporation.
     5.     "Family member" includes a child, stepchild, sibling, spouse, parent, step-parent,
            grandparent, legal guardian, grandchild, and relative of an eligible employee living in
            the same home as the eligible employee.
     6.     "Fund" means the paid family medical leave fund.
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      7.   "Wages" means remuneration for services to an employer by an employee, regardless
           of source, including remuneration based on time, piece-rate, job, or incentive.
      34-06.2-02. Paid family medical leave program - Administration.
      1.   The commissioner shall establish a division to administer a paid family medical leave
           program under this chapter. The commissioner shall adopt rules and hire staff, as the
           commissioner determines necessary, to administer the program under this chapter.
      2.   Eligible employees and employers may contribute to the fund beginning July 1, 2024,
           and eligible employees may withdraw from the fund for an eligible event under section
           34-06.2-05 beginning July 1, 2025.
     34-06.2-03. Paid family medical leave fund.
     There is created in the state treasury a special fund known as the paid family medical leave
 fund. The fund consists of all moneys deposited in the fund from employers and employees for
 contributions into the paid family medical leave program. The moneys in the fund may be
 expended by the commissioner only to pay for wages of an eligible employee under the
 program, and to pay for administrative costs associated with the administration of the program.
     34-06.2-04. Program requirements.
     The paid family medical leave program must:
     1.   Require an employer to annually notify all employees of the program and of the
          employee's rights under the program.
     2.   Allow eligible employees and employers to participate in the program.
          a.   Except as provided in subdivision b, an eligible employee who chooses to
               participate in the program shall contribute to the fund six cents for every
               ten dollars of wages earned for the benefit of the eligible employee to take leave
               for an eligible event as described under section 34-06.2-05.
          b.   An employer who chooses to participate in the program may contribute all or a
               portion of the contributions under subdivision a for eligible employees
               participating in the program.
     3.   Allow sole proprietors and independent contractors, as determined under the
          common-law test, to participate in the program. A sole proprietor or independent
          contractor who chooses to participate in the program shall contribute to the fund
          six cents for every ten dollars of wages earned for the benefit of the sole proprietor or
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           independent contractor to take leave for an eligible event as described under section
           34-06.2-05.
      4.   Allow an eligible employee to take leave for an eligible event as described under
           section 34-06.2-05 if the eligible employee has accrued at least five hundred hours of
           service before taking leave.
      5.   Provide for sixty-six percent of an eligible employee's average weekly wages, up to a
           maximum of one thousand dollars per week.
      6.   Provide up to twelve calendar weeks of coverage per calendar year for an eligible
           employee on leave under the program. An eligible employee may take leave on an
          intermittent basis.
     7.   Allow an eligible employee to return to the position held with the employer before
          taking leave, or an equivalent position with commensurate pay and benefits, upon the
          conclusion of the leave period.
     8.   Allow an eligible employee to maintain the employee's existing benefits while taking
          leave under the program.
     9.   Allow an employer to require eligible employees to use up to two weeks of sick or
          vacation leave before using leave under the program.
    34-06.2-05. Eligible events.
     1.   An employer shall grant leave to an eligible employee participating in the program to
          care for:
          a.   A serious physical or mental health condition of the eligible employee;
          b.   A serious physical or mental health condition of a family member;
          c.   A child during the first calendar year after the date of the child's birth, adoption, or
               after the date the child's foster care began; or
          d.   The eligible employee's well-being or a family member if the eligible employee or
               family member was the victim of domestic violence, sexual assault, or human
               trafficking.
     2.   An employer may grant leave to an eligible employee participating in the program for
          additional events as determined by the employer.
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      34-06.2-06. Additional family medical leave benefits.
      This chapter does not preclude an employer from providing family medical leave benefits
  that exceed the requirements of this chapter.
      34-06.2-07. Retaliation - Discrimination - Prohibition.
      An employer may not take retaliatory or discriminatory action against an eligible or potential
  employee for requesting or taking leave under the program, or indicating the intent to take leave
  under the program if hired. Retaliatory action includes discharge from or termination of
  employment, threatening discharge or termination, suspension of employment, demotion, or
  reduction of hours or wages.
     SECTION 2. A new section to chapter 57-38 of the North Dakota Century Code is created
 and enacted as follows:
     Paid family medical leave program tax credit.
     A taxpayer that is an employer within this state and which contributes to the paid family
 medical leave fund under section 34-06.2-04 is entitled to a credit against state income tax
 liability under section 57-38-30 or 57-38-30.3 in an amount equal to twenty percent of the
 contributions paid by the taxpayer to the fund on behalf of eligible employees participating in the
 program during the taxable year.
     SECTION 3. A new subdivision to subsection 7 of section 57-38-30.3 of the North Dakota
 Century Code is created and enacted as follows:
                Paid family medical leave program tax credit under section 2 of this Act.
     SECTION 4. APPROPRIATION - TRANSFER TO PAID FAMILY MEDICAL LEAVE FUND -
 INTENT. There is appropriated out of any moneys in the general fund in the state treasury, not
 otherwise appropriated, the sum of $5,000,000, or so much of the sum as may be necessary,
 which the office of management and budget shall transfer to the paid family medical leave fund
 for the purpose of administering a paid family medical leave program, for the biennium
 beginning July 1, 2023, and ending June 30, 2025. The funds must be paid back to the general
 fund over a period of twenty years. It is the intent of the sixty-eighth legislative assembly that
 the funds transferred be derived from legacy fund earnings transferred to the general fund
 during the biennium beginning July 1, 2023, and ending June 30, 2025.
     SECTION 5. EFFECTIVE DATE. Sections 2 and 3 of this Act are effective for taxable years
 beginning after December 31, 2022.
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