State Grants

(a)

Grants

(1)

In general

From the amounts appropriated under section 4, the Secretary shall award grants to States to pay for the Federal share of the cost of carrying out programs that assist families by providing, through various mechanisms, wage replacement for eligible individuals taking leave— (A)to respond to caregiving needs resulting from the birth or adoption of a son or daughter; or (B)for other purposes under the Family and Medical Leave Act of 1993 (29 U.S.C. 2611 et seq.) or provided under State or local law. (2)

Periods

(A)

States without an existing program

A State without an existing program may receive— (i)1 grant for up to a 3-year period to fund the activities described in subsection (b)(1); and (ii)1 grant for up to a 3-year period to fund the activities described in subsection (b)(2). (B)

States with an existing program

A State with an existing program may receive 1 grant for up to a 3-year period to fund the activities described in subsection (b)(2). (3)

Priority

In awarding grants described in paragraph (2)(A)(ii), the Secretary shall give priority to States that have not received a grant described in paragraph (2)(A)(i). (b)

Uses of funds

(1)

States without an existing program

States without an existing program shall use the funds made available through the grant— (A)to implement and develop such a program in the State, and to pay for any other administrative costs of the program; and (B)to cover the cost of providing partial or full wage replacement as described in this section to eligible individuals for not longer than the first 6 months of the program. (2)

States with an existing program

States with an existing program, or States without an existing program who have previously received a grant under this Act, may use the funds made available through the grant— (A)to conduct outreach or education programs that promote such program and educate the residents of the State about such program; (B)to cover the cost of providing partial or full wage replacement as described in this section to eligible individuals; (C)to cover any administrative costs of the program; (D)to provide incentives to employers in such State that are not covered by the Family and Medical Leave Act of 1993 (29 U.S.C. 2614) to provide the employment and benefits protection described in section 104 of such Act (29 U.S.C. 2614); or (E)for any other purpose approved by the Secretary. (3)

Partial or full wage replacement

(A)

In general

In carrying out a program under this section, a State shall provide partial or full wage replacement for not less than 6 weeks (or some lesser period as determined by the Secretary) during a period of leave during any 12-month period to an eligible individual— (i)directly; (ii)through an insurance program, such as a State temporary disability insurance program or a State unemployment compensation benefit program; (iii)through a private disability or other insurance plan, or another mechanism provided by a private employer; or (iv)through another mechanism. (B)

Eligibility Criteria

To be eligible to receive a grant under this Act, the criteria a State may use to determine whether an individual is eligible for wage replacement under this section shall— (i)in States that use the alternative base period in calculating unemployment benefits— (I)be equal to or less than the number of hours worked or the amount of wages earned that are required to qualify for such benefits in the State; or (II)be eligibility criteria that lead to an equal or greater number of individuals being eligible for wage replacement under this section than the number of individuals eligible for such wage replacement under the criteria described in subclause (I); (ii)in States that do not use the alternative base period in calculating unemployment benefits— (I)be equal to or less than the number of hours worked or the amount of wages earned that are required to qualify for such benefits in the State, but shall be calculated using an alternative base period for purposes of this subparagraph in the case of an individual who would not otherwise qualify for such benefits in the State; or (II)be eligibility criteria that lead to an equal or greater number of individuals being eligible for wage replacement under this section than the number of individuals eligible for such wage replacement under the criteria described in subclause (I); and (iii)with the exception of any notice, certification, or other administrative requirements specified by a State in subsection (d), not include any eligibility criteria not specified in clause (i) or (ii). (C)

Additional compensation

Wage replacement available to an eligible individual under this Act shall be in addition to any compensation from annual or sick leave that the individual may elect to use during a period of leave during any 12-month period. (c)

Eligible individuals

To be eligible to receive wage replacement under a program receiving a grant under this Act, an individual shall— (1)meet the eligibility criteria and any notice and certification requirements that the State may specify in an application described in section (d); and (2)be— (A)an individual who is taking leave under the Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), other Federal, State, or local law, or under a private plan, or a program receiving a grant under this Act, for a reason described in subparagraph (A) or (B) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)); (B)at the option of the State, an individual who— (i)is taking leave under such Act, other Federal, State, or local law, or under a private plan, or a program receiving a grant under this Act, for a reason described in subparagraph (C), (D), or (E) of section 102(a)(1), or under paragraph (3) of section 102(a) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)); 2612(a)(4); or (ii)is taking leave under a program receiving a grant under this Act— (I)because of the birth of a son or daughter of any individual whose relationship to the individual taking leave is recognized for purposes of such leave under State or local law; (II)because of the placement of a son or daughter for adoption or foster care with any individual whose relationship to the individual taking leave is recognized for purposes of such leave under State or local law; (III)in order to care for any individual who has a serious health condition and whose relationship to the individual taking leave is recognized for purposes of such leave under State or local law; (IV)because of a qualifying exigency (as determined by State or local law) arising out of the fact that any individual is on active duty (or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation and whose relationship to the individual taking leave is recognized for purposes of such leave under State or local law; or (V)to care for any individual who is a covered servicemember (as determined by State or local law) and whose relationship to the individual taking leave is recognized for purposes of such leave under State or local law. (d)

Application

To be eligible to receive a grant under this section, a State shall submit an application to the Secretary, at such time, in such manner, and containing such information and assurances as the Secretary may require, including, at a minimum— (1)a description of the wage replacement program and, if applicable, how the grant funds will be used to implement and develop such program; (2)(A)information on the number and type of families to be covered by the program, and the extent of such coverage in the area served under the grant; (B)information on any eligibility criteria and any notice, certification, or other administrative requirements that the State will use to determine whether an individual is eligible for wage replacement under this section, as described in subsection (c)(1); (C)an assurance that such eligibility criteria meet the requirements of subsection (b)(3)(B); (3)if the program will expand on State and private systems of wage replacement for eligible individuals, information on the manner in which the program will expand on the systems; (4)information demonstrating the manner in which the wage replacement assistance provided through the program will assist families in which an individual takes leave; and (5)which State agency will administer the program. (e)

Selection criteria

In selecting States to receive grants for programs under this Act, the Secretary shall take into consideration— (1)the scope of the proposed programs; (2)the cost-effectiveness, feasibility, and financial soundness of the proposed programs; (3)the extent to which the proposed programs would expand access to wage replacement in response to family caregiving needs, particularly for low-wage employees, in the area served by the grant; and (4)the benefits that would be offered to families and children through the proposed programs. (f)

Federal share

(1)

In general

(A)For each State without an existing program that has not previously received a grant under this Act, the Federal share— (i)of the cost to implement and develop the program, and any other administrative costs of the program, shall be 100 percent for up to a 3-year period; and (ii)of the cost of providing partial or full wage replacement as described in this section to eligible individuals for not longer than the first 6 months of the program, shall be— (I)50 percent in the case of such State with a program to provide wage replacement to eligible individuals taking leave for any reason described in subparagraph (A) or (B) of section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)); (II)75 percent in the case of such State with a program to provide wage replacement to eligible individuals taking leave for any reason described in subclause (I) and to eligible individuals taking leave for any (but not all) of the following reasons: (aa)A reason described in subparagraph (C) section 102(a)(1) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(a)(1)); (bb)A reason described in subparagraph (D) of such section (29 U.S.C. 2612(a)(1)); (cc)A reason described in subparagraph (E) of such section (29 U.S.C. 2612(a)(1)); or (dd)A reason described in under paragraph (3) of section 102(a) of such Act (29 U.S.C. 2612(a)(3)); or (III)100 percent in the case of such State with a program to provide wage replacement to eligible individuals taking leave for any of the reasons described subclause (I) or (II). (B)Subject to paragraph (3), for each State with an existing program, or for each State without an existing program that has previously received a grant under this Act, the Federal share of the cost to carry out the activities described in subsection (b)(2) shall be— (i)50 percent for the first year of the grant period; (ii)40 percent for the second year of that period; and (iii)30 percent for the third year of that period. (2)

Non-federal share

The non-Federal share of the cost may be in cash or in kind, fairly evaluated, including plant, equipment, and services and may be provided from State, local, or private sources, or from Federal sources other than this Act. (3)

Discretion

The Secretary may increase the Federal share percentages under paragraph (1)(B). (g)

Effect on existing rights

Nothing in this Act or in any program receiving a grant under this Act shall be construed to supersede, preempt, or otherwise infringe on the provisions of any collective bargaining agreement or any employment benefit program or plan that provides greater rights to employees than the rights established under this Act. (h)

Notification

A State that provides partial or full wage replacement to an eligible individual under this Act shall notify (in a form and manner prescribed by the Secretary)— (1)the employer of the individual of the amount of the wage replacement provided; and (2)the individual and the employer of the individual that the employer shall count an appropriate period of leave, calculated under section 102(g) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2612(g)), against the total amount of leave (if any) to which the employee is entitled under section 102(a)(1) of that Act (29 U.S.C. 2612(a)(1)). (i)

Report

Not later than 3 years after the beginning of the grant period for the first grant made under this Act, and annually thereafter, the Secretary shall submit to Congress a report that contains a description and evaluation of the grant program under this section for the preceding year.