Florida Senate - 2023                                     SB 670
       By Senator Yarborough
       4-00846A-23                                            2023670__
    1                        A bill to be entitled                      
    2         An act relating to paid family leave insurance;
    3         providing a short title; amending s. 624.406, F.S.;
    4         authorizing life insurers to transact paid family
    5         leave insurance; amending s. 624.6011, F.S.; revising
    6         the definition of the term “kinds of insurance” to
    7         include paid family leave insurance; creating s.
    8         624.6086, F.S.; defining terms; creating s. 627.445,
    9         F.S.; providing a short title; providing legislative
   10         findings and intent; defining terms; specifying
   11         circumstances under which family leave benefits may be
   12         provided; requiring paid family leave insurance
   13         policies to specify details and requirements with
   14         regard to covered family leave reasons; specifying
   15         requirements for policies relating to benefit periods,
   16         waiting periods, benefit amounts and certain offsets,
   17         and the payment of benefits; providing that
   18         eligibility for family leave benefits may be limited,
   19         excluded, or reduced but must be specified in the
   20         policy; specifying permissible limitations,
   21         exclusions, and reductions; providing applicable
   22         provisions for calculating rates; specifying the means
   23         by which a policy may offer family leave benefits;
   24         authorizing the Financial Services Commission to adopt
   25         rules; providing an effective date.
   27  Be It Enacted by the Legislature of the State of Florida:
   29         Section 1. This act may be cited as the “Florida Paid
   30  Family Leave Insurance Act.”
   31         Section 2. Subsection (1) of section 624.406, Florida
   32  Statutes, is amended to read:
   33         624.406 Combinations of insuring powers, one insurer.—An
   34  insurer which otherwise qualifies therefor may be authorized to
   35  transact any one kind or combination of kinds of insurance as
   36  defined in part V except:
   37         (1) A life insurer may also grant annuities, but shall not
   38  be authorized to transact any other kind of insurance except
   39  health insurance, disability income insurance, paid family leave
   40  insurance, excess coverage for health maintenance organizations,
   41  or excess insurance, specific and aggregate, for self-insurers
   42  of a plan of health insurance and multiple-employer welfare
   43  arrangements.
   44         Section 3. Subsection (8) is added to section 624.6011,
   45  Florida Statutes, to read:
   46         624.6011 “Kinds of insurance” defined.—Insurance shall be
   47  classified into the following “kinds of insurance”:
   48         (8) Paid family leave.
   49         Section 4. Section 624.6086, Florida Statutes, is created
   50  to read:
   51         624.6086 “Paid family leave insurance” defined.—
   52         (1)“Paid family leave insurance” is insurance issued to an
   53  employer which is related to a benefit program provided to an
   54  employee to pay for a percentage or portion of the employee’s
   55  income loss due to:
   56         (a)The birth of a child or adoption of a child by the
   57  employee;
   58         (b)Placement of a child with the employee for foster care;
   59         (c)Care of the employee’s family member who has a serious
   60  health condition; or
   61         (d)Circumstances arising out of the fact that the
   62  employee’s family member who is a servicemember is on active
   63  duty or has been notified of an impending call or order to
   64  active duty.
   65         (2)Family leave insurance may be written as an amendment
   66  or a rider to a group disability income policy, included in a
   67  group disability income policy, or written as a separate group
   68  insurance policy purchased by an employer.
   69         (3)As used in this section, the terms “child,” “family
   70  leave,” and “family member” have the same meanings as provided
   71  in s. 627.445(3).
   72         Section 5. Section 627.445, Florida Statutes, is created to
   73  read:
   74         627.445 Paid family leave insurance.—
   75         (1)SHORT TITLE.—This section may be cited as the “Paid
   76  Family Leave Income Replacement Benefits Act.”
   77         (2)LEGISLATIVE FINDINGS AND INTENT.—The Legislature
   78  intends to provide the workers of this family-friendly state
   79  with access to paid family leave insurance to encourage an
   80  entrepreneurial atmosphere, to encourage economic growth, and to
   81  promote a healthy business climate. Many workers need to take
   82  time off work for family reasons, including bonding with a new
   83  child or caring for an ill family member. Increasingly,
   84  employers in this state want to make paid leave benefits
   85  available to workers who need time off for these reasons.
   86  Employers recognize workers will be healthier and more
   87  productive when able to take care of family responsibilities
   88  without a complete loss of income, and employers believe that
   89  offering paid family leave benefits to their employees will
   90  improve recruitment opportunities and reduce turnover in the
   91  workplace. Disability insurers currently offer income
   92  replacement benefits to workers who need time off from work
   93  because of their own disabling medical condition. Disability
   94  insurers have extensive experience, claims staff, systems, and
   95  expertise that can be used to provide fully insured paid family
   96  leave benefits for employees, either through employer-sponsored
   97  group insurance policies or voluntarily purchased employee
   98  policies. It is in the best interests of this state’s workers
   99  and employers to permit disability insurers to expand their
  100  fully insured benefits in this state to include paid family
  101  leave benefits.
  102         (3)DEFINITIONS.—As used in this section, the term:
  103         (a)“Armed Forces of the United States” includes members of
  104  the National Guard and the reserves.
  105         (b)“Child” means a person who is:
  106         1.Under 18 years of age, or 18 years of age or older and
  107  incapable of self-care because of a mental or physical
  108  disability; and
  109         2.A biological, adopted, or foster son or daughter; a
  110  stepson or stepdaughter; a legal ward; or a son or daughter of a
  111  person to whom the employee stands in loco parentis.
  112         (c)“Family leave” is any leave taken by an employee from
  113  work for any of the reasons specified in subsection (4).
  114         (d)“Family member” includes a child, spouse, or parent, or
  115  other person defined as a family member in the policy.
  116         (e)“Health care provider” means any physician, hospital,
  117  or other institution, organization, or person that furnishes
  118  health care services and is licensed or otherwise authorized to
  119  practice in this state.
  120         (f)“Parent” means a biological, foster, or adoptive
  121  parent; a stepparent; a legal guardian; or other person who
  122  stood in loco parentis to the employee when the employee was a
  123  child.
  124         (g)“Serious health condition” means an illness, injury,
  125  impairment, or physical or mental condition, including
  126  transplantation preparation and recovery from surgery related to
  127  organ or tissue donation, which involves inpatient care in a
  128  hospital, hospice, or residential health care facility;
  129  continuing treatment; or continuing supervision by a health care
  130  provider as defined in the policy. Continuing supervision by a
  131  health care provider includes a period of incapacity which is
  132  permanent or long-term due to a condition for which treatment
  133  may not be effective and where the family member need not be
  134  receiving active treatment by a health care provider.
  135         (4)FAMILY LEAVE BENEFITS.—Family leave benefits may be
  136  provided for any leave taken by an employee from work to:
  137         (a)Participate in providing care, including physical or
  138  psychological care, for a family member of the employee made
  139  necessary by a serious health condition of the family member;
  140         (b)Bond with the employee’s child during the first 12
  141  months after the child’s birth or the first 12 months after the
  142  placement of the child for adoption by or foster care with the
  143  employee;
  144         (c)Address a qualifying exigency as interpreted under the
  145  Family and Medical Leave Act of 1993, 29 U.S.C. s. 2612(a)(1)(E)
  146  and 29 C.F.R. s. 825.126(a)(1)-(8), arising out of the fact that
  147  the spouse, child, or parent of the employee is on active duty
  148  or has been notified of an impending call or order to active
  149  duty, in the Armed Forces of the United States;
  150         (d)Care for a family servicemember injured in the line of
  151  duty; or
  152         (e)Take other leave to provide care for a family member or
  153  other family leave as specified in the policy.
  154         (5)EXPLANATION OF FAMILY LEAVE REASONS.—The policy must
  155  specify details and requirements with regard to each of the
  156  covered family leave reasons.
  157         (6)BENEFIT PERIOD.—The policy must specify the length of
  158  family leave benefits available for each covered family leave
  159  reason, which may not be less than 2 weeks during a period of 52
  160  consecutive calendar weeks. For purposes of this subsection, 52
  161  consecutive calendar weeks may be calculated by:
  162         (a)A calendar year;
  163         (b)Any fixed period starting on a particular date, such as
  164  the effective or anniversary date;
  165         (c)The period measured forward from the employee’s first
  166  day of family leave;
  167         (d)A rolling period measured by looking back from the
  168  employee’s first day of family leave; or
  169         (e)Any other method specified in the policy.
  170         (7)WAITING PERIOD.—The policy must specify whether there
  171  is an unpaid waiting period, and if so, the terms and conditions
  172  of the unpaid waiting period, which may include, but are not
  173  limited to, whether:
  174         (a)The waiting period runs over a consecutive calendar day
  175  period;
  176         (b)The waiting period is counted toward the annual
  177  allotment of family leave benefits or is in addition to the
  178  annual allotment of family leave benefits;
  179         (c)The waiting period must be met only once per benefit
  180  year or must be met for each separate claim for benefits; and
  181         (d)The employee may work or receive paid time off or other
  182  compensation by the employer during the waiting period.
  184         (a)The policy must specify:
  185         1.The amount of benefits that will be paid for covered
  186  family reasons;
  187         2.The definition of the wages or other income upon which
  188  the amount of family leave benefits will be issued; and
  189         3.How such wages or other income will be calculated.
  190         (b)If the family leave benefits are subject to offsets for
  191  wages or other income received or for which the insured may be
  192  eligible, the policy must specify all such wages or other income
  193  that may be set off and the circumstances under which it may be
  194  offset.
  196  Eligibility for family leave benefits under this section may be
  197  limited, excluded, or reduced, but any limitation, exclusion, or
  198  reduction must be specified in the policy. Permissible
  199  limitations, exclusions, or reductions may include, but are not
  200  limited to, any of the following reasons:
  201         (a)For any period of family leave wherein the required
  202  notice and medical certification as prescribed in the policy has
  203  not been provided;
  204         (b)For any family leave related to a serious health
  205  condition or other harm to a family member brought about by the
  206  willful intention of the employee;
  207         (c)For any period of family leave during which the
  208  employee performed work for remuneration or profit;
  209         (d)For any period of family leave for which the employee
  210  is eligible to receive from his or her employer, or from a fund
  211  to which the employer has contributed, remuneration or
  212  maintenance;
  213         (e)For any period of family leave in which the employee is
  214  eligible to receive benefits under any other statutory program
  215  or employer-sponsored program, including, but not limited to,
  216  unemployment insurance benefits, workers’ compensation benefits,
  217  statutory disability benefits, statutory paid leave benefits, or
  218  any paid time off or employer’s paid leave policy;
  219         (f)For any period of family leave commencing before the
  220  employee becomes eligible for family leave benefits under the
  221  policy; or
  222         (g)For periods of family leave where more than one person
  223  seeks family leave for the same family member.
  224         (10)PAYMENT OF FAMILY LEAVE BENEFITS.—Family leave
  225  benefits provided under this section must be paid periodically
  226  and promptly, except as to a contested period of family leave
  227  and subject to any of the limitations, exclusions, or reductions
  228  under subsection (9).
  229         (11)INSURANCE POLICY.—
  230         (a)Rates for policies or riders providing paid family
  231  leave benefits must be calculated pursuant to s. 627.062.
  232         (b)A policy issued pursuant to this section may offer
  233  coverage for paid family leave benefits or may offer paid family
  234  leave benefits as a rider to a policy of disability income
  235  insurance.
  236         (12)RULEMAKING.—The commission may adopt rules to
  237  administer this section.
  238         Section 6. This act shall take effect upon becoming a law.