Establishment of the State Paid Leave Public-Private Partnership Grant Program

(a) In general The Secretary shall establish and administer a competitive grant program to provide grants to States that have enacted a law establishing an eligible paid leave program as described in subsection (d). (b) Eligibility To be eligible to receive a grant under this section, a State shall have enacted a State law establishing an eligible State paid leave program. (c) Application (1) In general To be eligible to receive a grant under this section, a State shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of how the funds will be used, the working population of the State, the percentage of the State’s working population that is able to access a paid leave benefit, and the source of such benefit. (2) Priority (A) In general In awarding grants under this section, the Secretary shall prioritize States— (i) that, as of the date of enactment of this Act, did not already have established a paid leave benefits program; (ii) that participate in the Interstate Paid Leave Action Network established by section 202(a); (iii) that provide paid leave benefits for the reasons described in subparagraphs (A) and (B) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)); (iv) that indicate in the application submitted under paragraph (1) that the covered partnership will use software that is a commercially available off-the-shelf item (as defined in part 2.101 of the Federal Acquisition Regulation) to administer benefits that will produce cost-savings for the State; (v) that have, relative to other States that have submitted an application in a given year, a lower percentage of the working population of the State that have access to a paid leave benefit at the time of the submission of the application; (vi) that demonstrate in the application that the State has a plan to implement a financing mechanism that does not have long-term reliance on Federal funding; or (vii) that demonstrate in the application how the State paid leave program serves low-income populations. (B) Consideration prohibition The Secretary may not consider whether a State provides benefits in excess of those required under subsection (d) when deciding which States shall receive a grant under this title. (d) Paid leave program requirements (1) Program requirements An eligible State paid leave program shall, at a minimum— (A) provide, through a covered partnership, not less than 6 weeks of paid leave benefit to eligible employees in a 12 month period for at least one qualifying reason; (B) annually establish a weekly maximum benefit amount that is equal to 150 percent of the State’s average weekly wage (based on the most recent calendar year for which data is available from the Quarterly Census of Employment and Wages program of the Bureau of Labor Statistics); (C) require the establishment and use of a covered partnership; (D) establish premium rates or a financing method to fund the paid leave program for employees, employers, or both to pay; (E) establish criteria for an individual to be classified as an employee for purposes of such program that would include, at minimum, any eligible employee, as such term is defined in section 101 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611); and (F) establish criteria for a person to be classified as an employer for purposes of such program that would include, at minimum, any person described in clause (i) or (ii) of section 101(A) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(A)). (2) Paid leave benefit A paid leave benefit under paragraph (1) that is provided to an eligible employee shall, at a minimum, include weekly compensation in an amount (not to exceed the amount described in paragraph (1)(B)) equal to the product of the average weekly earnings of the eligible employee and— (A) in the case of an eligible employee whose earnings for the 4 most recently completed calendar quarters that immediately precede the paid leave benefit request are less than or equal to the poverty line (as defined in section 673 of the Community Services Block Grant Act (42 U.S.C. 9902)) applicable to a 4-person household, not less than 67 percent; (B) in the case of an eligible employee whose earnings for such calendar quarters are more than such poverty line, but less than the amount that is double such poverty line, a percentage not less than— (i) 67 percent, minus (ii) the product of— (I) 17 percent; and (II) the percentage by which the employee’s earnings exceed such poverty line; or (C) in the case of any other eligible employee, 50 percent. (3) Recalculation of benefit amount The weekly compensation calculated under paragraph (2) for an eligible employee shall be recalculated each time such employee applies for a paid leave benefit. (4) Employees with multiple employers An eligible State paid leave program shall provide that, in the case that an employee is employed by multiple employers, such an employee shall be entitled to receive a paid leave benefit from each employer, but the employee may not receive a total combined weekly benefit in excess of the maximum benefit amount established by the State pursuant to paragraph (1)(B). (5) Employer self-administration flexibility An eligible State paid leave program shall, in the case that the program includes a requirement for employer participation, provide that the employer may self-administer paid leave benefits to eligible employees if such benefits meet or exceed the benefits available under the eligible State paid leave program of such State. (6) Rule of construction Nothing in this subsection shall be construed to limit the ability of a State to provide additional paid leave benefits in excess of the benefits required to be provided under this subsection, including— (A) benefits for reasons other than the reasons described in subparagraphs (A) through (D) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)); (B) benefits in amounts in excess of amounts provided under this subsection; or (C) benefits for individuals other than eligible employees. (e) Use of Funds Grants awarded under this section may be used by States for the following purposes: (1) Start up costs for the implementation of the eligible State paid leave program. (2) To pay out benefits to eligible employees, but only for a qualifying reason. (3) To fund the covered partnership. (4) Paid leave program design. (5) Purchasing and maintaining any necessary software. (6) Establishing a covered partnership. (7) Obtaining technical assistance for the State or the covered partnership to carry out the eligible State paid leave program. (8) Outreach to employers, payroll providers, relevant professional or trade associations, and the general public to increase awareness of the State’s eligible State paid leave program and to convey relevant information such as program eligibility, funding requirements, benefit information, the application process, and any other information the State determines relevant. (9) Other activities to disseminate information about, and otherwise support, the accessibility of the State’s eligible State paid leave program, including the operation and maintenance of a program website, running a call center, and sending marketing materials on the State’s covered partnership to the groups described in paragraph (8). (10) Research to inform the establishment and operation of the State’s eligible State paid leave program, including program evaluations, and the dissemination of such research to the public. (11) To evaluate existing programs and models. (12) To reduce administrative burdens on employers in the State. (f) Grant amounts (1) In general In determining the amount of a grant to be provided to a State, the Secretary shall consider— (A) the size of the working population of the State relative to the size of the working population of the other States that are receiving a grant; (B) the birth rate of the State relative to the other such States; (C) the share of low-income individuals in the State; and (D) the demonstrated need of a State in the grant application. (2) Limits A grant provided under this section may not be less than $1,500,000 and may not be more than $7,000,000.