Committee Report

February 06, 2024

S. 944

Introduced by Senators Gambrell, Bennett and Turner

S. Printed 02/06/24--S.                                                                           [SEC 2/8/2024 9:42 AM]

Read the first time January 10, 2024

________

The committee on Senate Banking and Insurance

To whom was referred a Bill (S. 944) to amend the South Carolina Code of Laws by enacting the "Paid Family Leave Insurance Act" by adding Chapter 103 to Title 38 so as to define terms, establish family, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

RONNIE CROMER for Committee.

________

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ENACTING THE "PAID FAMILY LEAVE INSURANCE ACT" BY ADDING CHAPTER 103 TO TITLE 38 SO AS TO DEFINE TERMS, ESTABLISH FAMILY LEAVE BENEFITS, OUTLINE REQUIREMENTS OF FAMILY LEAVE INSURANCE POLICIES, AND PROVIDE EXCLUSIONS, AMONG OTHER THINGS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.  This act may be cited as the "Paid Family Leave Insurance Act".

SECTION 2.  Title 38 of the S.C. Code is amended by adding:

CHAPTER 103

Paid Family Leave Insurance

    Section 38-103-10. For purposes of this section:

    (1) "Child" means a biological, adopted, or foster son or daughter; a stepson or stepdaughter; a legal ward, a son or daughter of a domestic partner; or a son or daughter of a person to whom the employee stands in loco parentis who is either:

       (a) under eighteen years of age; or

       (b) eighteen years of age or older and incapable of self-care because of a mental or physical disability.

    (2) "Department" means the Department of Insurance.

    (3) "Director" means the Director of the Department of Insurance.

    (4) "Employee" means an individual for whom an employer must complete a Form I-9 pursuant to federal law and regulations and does not include an independent contractor.

    (5) "Family leave" means any leave taken by an employee from work pursuant to Section 38-103-20.

    (6) "Family leave insurance" means an insurance policy issued to an employer related to a benefit program provided to an employee to pay for a percentage or portion of the employee's income loss due to:

       (a) the birth of a child or adoption of a child by the employee;

       (b) the placement of a child with the employee for foster care;

       (c) care of a family member of the employee who has a serious health condition; or

       (d) the status of a family member of the employee who is a service member on active duty or who has been notified of an impending call or order to active duty.

    (7) "Family member" means a child, spouse, or parent, or another person defined as a family member in a policy of insurance issued under this chapter.

    (8) "Health care provider" means a person licensed to provide health care services under Title 40.

    (9) "Parent" means a biological, foster, or adoptive parent, a stepparent, a legal guardian, or other person who stands in loco parentis to the employee when the employee was a child.

    (10) "Serious health condition" means an illness, injury, impairment, or physical or mental condition, including transplantation preparation and recovery from surgery related to organ or tissue donation, that involves in patient care in a hospital, hospice, or residential health care facility, continuing treatment or continuing supervision by a health care provider as defined in the insurance policy. Continuing supervision by a health care provider includes a period of incapacity which is permanent or long term due to a condition for which treatment may not be effective and where the family member need not be receiving active treatment by a health care provider.

    (11) "Service member" means a member of the United States Armed Forces in active military service.

    Section 38-103-20. Family leave benefits may be provided for any leave taken by an employee from work to:

    (1) participate in providing care, including physical or psychological care, for a family member of the employee made necessary by a serious health condition of the family member;

    (2) bond with the employee's child during the first twelve months after the child's birth, or the first twelve months after the placement of the child for adoption or foster care with the employee;

    (3) address a qualifying exigency as interpreted under the Family and Medical Leave Act, 29 U.S.C. Section 2612(a)(1)(e) and 29 C.F.R. Sections 825.126(a)(1)-(8), arising out of the fact that the spouse, child, or parent of the employee is on active duty, or has been notified of an impending call or order to active duty, in the Armed Forces of the United States;

    (4) care for a family service member injured in the line of duty; or

    (5) take other leave to provide care for a family member or other family leave as specified in the policy of insurance.

    Section 38-103-30. (A) Family leave insurance may be written as:

       (1) an amendment or rider to a group disability income policy or life insurance policy, included in a group disability income policy or life insurance policy; or

       (2) a separate group insurance policy purchased by an employer.

    (B) An insurer licensed to sell life insurance or disability income insurance in this State may issue a policy of family leave insurance in accordance with the bulletins adopted by the department.

    (C) The director may publish bulletins to administer this title and authorize the sale of family leave insurance in this State.

    Section 38-103-40. A policy of insurance issued under this title must set forth