SENATE, No. 2535

The Commonwealth of Massachusetts

In the Year Two Thousand and Six.

AN ACT SUPPORTING STRONG FAMILIES BY PROVIDING PAID FAMILY AND MEDICAL LEAVE, INCREASING TAX DEDUCTIONS FOR WORKING FAMILIES, AND ESTABLISHING A WORK-FAMILY COUNCIL.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

 
Whereas, The deferred operation of this act would tend to defeat its purpose, which is forthwith to support strong families by providing paid family and medical leave, increasing tax deductions for working families, and establishing a work-family council, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

SECTION 1. Chapter 23A of the General Laws is hereby amended by adding the following section:-

Section 62. (a) There shall be in the executive office of economic development a work-family council, in this section called the council. The council shall develop broadly shared understandings of critical work-family issues in the commonwealth, and shall promote through privately funded research, experimentation, and education both responsive public policies and innovative private sector practices.

(b) A member of the council shall be a person who has demonstrated leadership in seeking innovative, positive solutions to work-family problems. A member shall serve for a term of 2 years and may be reappointed for 1 or more terms.

(c) (1) The governor, the speaker of the house of representatives and the president of the senate each shall appoint 5 members, 1 from each of the following categories:

(i) an employer or manager of a business representing a key sector of the commonwealth's economy;
(ii) an official of a union representing public sector or private sector workers;
(iii) a member of the caucus of women legislators;
(iv) a member of a women's professional association or other women's organization; and
(v) a member of low-income advocacy group or community-based service organization, including secular and faith-based institutions.

(2) The minority leaders of the senate and house of representatives shall each appoint 1 member.
(3) The head of each of the following agencies, departments and offices shall serve as ex-officio members of the council: department of business and technology; departments of labor and workforce development; office of children, youth and family services; department of elder affairs; office of health services; office of Medicaid: executive office of transportation; department of housing and community development; office of disabilities and community services; department of education; the human resources division; the information technology division, and the department of early education and care. The council shall appoint a chairperson from among the members.

(d) (1) The council shall meet at least 4 times per year. The council shall appoint an executive director who shall appoint such staff as needed. Staff may seek funds from public and private sources to support the work of the council. The council shall select a panel of academic advisers to provide information and guidance on council activities. An academic adviser shall not receive compensation from the council but may be reimbursed for customary expenses incident to the advisor's service.
(2) The duties of the council shall include but not be limited to: holding hearings to identify major work-family issues in the commonwealth; identifying representatives of all groups with important stakes in resolving specific work-family issues and devising processes for bringing the groups together to promote mutual understanding as the basis for coordinated problem-solving; using dialogue and negotiation among stakeholders with differing interests in work-family conflicts to advance the potential for problem solving that supports both workplace productivity and family care; designing and supporting pilot projects as requested in workplaces; proposing public policy solutions to work-family issues; promoting successful policies and practices in both public and private sectors and creating a repository of best practices; collecting and maintaining data and information concerning work-family issues including but not limited to employer policies and practices; and providing public education on work-family issues as matters of public, as well as individual concern, and on the need for public policies and private workplace practices that support the wellbeing of both employers and families.
(3) The council shall report in writing to the secretaries of economic development and health and human services every 2 years during the council's existence. The report shall specify: the groups actively involved in council meetings and projects; outcomes of research sponsored by the council; the adoption and results of public policy initiatives; the outcomes of experiments and pilot projects in workplaces; the experience with techniques of multi-stakeholder dialogue and negotiation; summaries of data and information collected on work-family issues; and the purposes and scope of public education projects undertaken.

SECTION 2.  Section 3 of chapter 62 of the General Laws is hereby amended by striking out, in line 75, as appearing in the 2004 Official Edition, the figure "$4,800" and inserting in place thereof the following figure:- $10,000.

SECTION 3.  Said section 3 of said chapter 62 is hereby further amended by striking out, in line 76, as so appearing, the figure "$9,600"and inserting in place thereof the following figure:- $15,000.

SECTION 4.  Subparagraph (8) of paragraph (a) of part B of said section 3 of said chapter 62 of the General Laws, as so appearing is hereby amended by adding the following sentence:-  If the taxpayer is a single person with adjusted gross income of not more than $45,000 or joint filers with adjusted gross income of not more than $75,000, the deduction available under this section shall be $5,000 if there is 1 dependent with respect to the taxpayer, or $10,000 if there are 2 or more such dependents with respect to the taxpayer.

SECTION 5.  Section 52D of chapter 149 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after the word "section", in line 1, 27 and 43, the following words:- and section 52E.

SECTION 6.  Said section 52D of said chapter 149, as so appearing, is hereby further amended by striking out the words "it may be amended", in lines 8 and 9, and inserting in place thereof the following words:- in effect on April 25, 2006.

SECTION 7.  Said section 52D of said chapter 149, as so appearing, is hereby further amended by inserting after the word "section", in lines 26 and 44, the following words:- or section 52E.

SECTION 8.  Said chapter 149 is hereby further amended by inserting after said section 52D, as so appearing, the following section:-

Section 52E.  (a) As used in this section, in addition to the terms defined in section 52D, the following terms shall have the following meanings:

"Department", the department of workforce development.
"Fund", the Strong Families Trust Fund established by subsection (d).

(b) Except as this section provides otherwise, employees working in the commonwealth shall be entitled to family and medical leave under sections 101 to 105, inclusive, of the Family and Medical Leave Act of 1993, 29 U.S.C. sections 2611 to 2615, inclusive, as in effect on April 25, 2006.  Amendments to the federal act shall not affect or diminish an employee's rights under this section.

(c)(1) The department shall pay to each eligible employee who is a resident of the commonwealth, who is entitled to leave under section 102(a) and (b) of the federal act, 29 U.S.C. section 2612(a) and (b), and who takes such a leave, a stipend in the amount of the employee's wages or salary, but not more than $750 per week.  The department shall not pay the stipend for the first 5 business days of an employee's leave in any calendar year; but these first 5 days of leave need not be taken consecutively for the employee to be eligible for a stipend under this section for subsequent days of leave, and employees entitled to a stipend under this section shall receive an additional 5 days of paid leave, to total 12 weeks of paid leave.     
(2) The department shall also pay the stipend provided by paragraph (1) to employees who are residents of the commonwealth, and who take a leave to which they would otherwise be entitled under section 102(a) and (b) of the federal act, 29 U.S.C. section 2612(a) and (b), but are not eligible employees solely: (1) because of the employer's number of employees under section 101(2)(B)(ii) of the federal act, 29 U.S.C. section 2611(2)(B)(ii), or (2) because they have not been employed for the time required by section 101(2)(A) of the federal act, 29 U.S.C. section 2612(2)(A), if the employee has been employed (i) for at least 9 months by the employer with  respect to whom leave is requested under this section, and (ii) for at least 900 hours of service with such employer during the previous 12-month period.  Such non-eligible employees under this subsection shall have the protections afforded by section 104 of the federal act, 29 U.S.C. section 2614. 

(d) There shall be established and set up on the books of the commonwealth a Strong Families Trust Fund.  The department shall be the fund's trustee and shall pay the stipends required by subsections (b) and (c) from the fund without further appropriation.  

(e) The department, in consultation with the human resources division, shall administer this section, shall prescribe application forms for employees, and shall adopt regulations consistent with this section governing the fund and the stipends payable under subsection (c).  The department shall provide a draft of proposed regulations to the joint committees of children and families, on labor and workforce development, and on state administration and regulatory oversight, not less than 90 days before adopting the regulations. The department's regulations shall specify premiums from employees of the commonwealth, necessary in the department's judgment to provide for the fund's solvency, including all administrative costs incurred by the department in operating the program.  The amount of the premiums shall be based on an employee's wages or salary.

(f) The department of revenue shall collect premiums from employees in connection with income taxes collected under chapter 62, and all civil and criminal remedies that apply to such income taxes shall apply to premiums under this section.  The department shall deposit in the fund all premiums received under this section, and shall provide other assistance requested by the department in administering this section.

(g) A person who knowingly makes, or causes to be made, any false statement or misrepresentation of a material fact in connection with an application for paid leave benefits under this section shall be punished by imprisonment for not more than 6 months or by a fine of not more than $4,000, or by both such fine and such imprisonment. In addition, the criminal and civil remedies that apply to claims for unemployment compensation under chapter 151A shall apply to applications for stipends under this section.

(h) Any payment of unemployment compensation or workers compensation in connection with a leave under this section shall cause a reduction, in the same amount as the payment, in the stipend otherwise payable under subsections (a) and (b), and an employee eligible to receive a stipend shall promptly report such a payment to the department.  

(i) Nothing in this section shall interfere with any rights or benefits under a collective bargaining agreement or other employment agreement between the employer and the employee.

(j) As part of the posting required by subsection (g) of section 62A of chapter 151A, an employer shall post information prescribed by the department about applying for stipends under this section.  An employer shall also provide each of its employees, at the beginning of employment and whenever an employee requests leave under this section, the application form prescribed by the department under subsection (e).

(k) Leave taken under this section must be taken concurrently with any leave taken under the federal act.

(l)  Nothing in this section shall be construed to discourage employers from adopting or retaining leave policies more generous than policies that comply with this section.

(m)  The executive office of health and human services, in coordination with the department, shall develop and implement a multi-lingual outreach program to inform parents with newborn or adopted children and persons with serious medical conditions about the availability of paid leave under this section.  This program shall include the distribution of notices and other written materials in English and other languages to all hospitals, community health centers, and other health care providers. 
           
SECTION 9.  Item 1201-0100 of section 2 of chapter 45 of the acts of 2005 is hereby amended by adding the following words:-; and provided further, that the department shall allocate not less than $250,000 for purposes of an outreach program to increase participation in the earned income tax credit program.      

SECTION 10.  Said item 1201-0100 of said section 2 of said chapter 45 is hereby further amended by striking out the figure "$116,943,409" and inserting in place thereof the following figure:- $117,193,409.

SECTION 11.  Item 7002-0010 of said section 2 of said chapter 45 is hereby amended by adding the following words:-; and provided further, that not less than $200,000 shall be provided to the work-family council.

SECTION 12.  Said item 7002-0010 of said section 2 of said chapter 45 is hereby amended by striking out the figure "$398,808" and inserting in place thereof the following figure:- $598,808.

SECTION 13.  Item 7002-0100 of said section 2 of said chapter 45 is hereby amended by adding the following words:-; and provided further, that the department shall expend not less than $500,000 for the implementation of an outreach program to inform parents with newborn or adopted children and persons with serious medical conditions about the availability of paid leave.

SECTION 14. Said item 7002-0100 of said section 2 of said chapter 45 is hereby further amended by striking out the figure "$150,000" and inserting in place thereof the following figure:-  $650,000.

SECTION 15.  In order to increase participation in the earned income credit program, the department of revenue shall allocate $250,000, as provided in section 9, and shall (a) not later than January 1, 2007, provide to every employer without charge a notice in conformity with clause (iii) of subsection (d) of section 62A of chapter 151A of the General Laws concerning the availability of the federal and state earned income credits including the option to receive the credit in paychecks throughout the year and shall require every employer to post the notice in conformity with section 16 of chapter 151 of the General Laws; (b) work with chambers of commerce, municipalities, community-based organizations, taxpayer advocates and labor organizations to ensure the widest possible dissemination of information concerning the availability of the credits, including by assisting in the training of free tax preparation volunteers and by providing training and support to assist low and moderate-income taxpayers in the preparation of returns; and (c) not later than March 1, 2007, file a report with the joint committee on revenue and the house and senate committees on ways and means concerning its efforts under this section to increase earned income credit participation.

SECTION 16.  The department of workforce development shall commence paying stipends under section 8 120 days after the effective date of this act. 

SECTION 17.  The work-family council established by section 1 of this act shall, on an on-going basis, analyze and review the operations of the paid family and medical leave program created in this act.  No later than 2 years after the effective date of this act, the council shall file with the clerks of the senate and house of representatives a comprehensive report on this program.  This report shall include, but not be limited to, analysis of the following: (1) the extent to which employees take paid leave under the program; (2) the extent to which employees have family or medical needs or obligations that they are unable to meet by taking paid leave under the program; (3) the effect of the program on private employers, including the effect on employee productivity, employer costs and cost savings, employee morale, and employee turnover rates; (4) the effect of the program on the competitiveness of the commonwealth's economy; (5) the medical effects of the program on employees, family members of employees, and the broader population; (6) the ease or difficulty of administering paid leave for employees; (7) employee patterns for returning to work; (8) the cost of replacing workers on leave and training temporary workers; and (9) any proposed modifications to the program.  

SECTION 18.  Sections 2, 3 and 4 of this act shall be effective for taxable years beginning on or after January 1, 2007.