Florida Senate - 2023                              CS for SB 670
       By the Committee on Banking and Insurance; and Senator
       597-02913-23                                           2023670c1
    1                        A bill to be entitled                      
    2         An act relating to paid family leave insurance;
    3         amending s. 624.406, F.S.; authorizing life insurers
    4         to transact paid family leave insurance; creating s.
    5         624.6086, F.S.; defining terms; creating s. 627.445,
    6         F.S.; defining terms; specifying circumstances under
    7         which family leave benefits may be provided under a
    8         paid family leave insurance policy; requiring that
    9         paid family leave insurance policies specify details
   10         and requirements with regard to covered circumstances;
   11         specifying requirements for policies relating to
   12         benefit periods, waiting periods, benefit amounts and
   13         certain offsets, and the payment of benefits;
   14         providing that eligibility for family leave benefits
   15         may be limited, excluded, or reduced, but must be
   16         specified in the policy; specifying permissible
   17         limitations, exclusions, and reductions; providing
   18         applicable provisions for calculating rates;
   19         specifying the means by which a policy must offer
   20         family leave benefits; authorizing the Financial
   21         Services Commission to adopt rules; providing an
   22         effective date.
   24  Be It Enacted by the Legislature of the State of Florida:
   26         Section 1. Subsection (1) of section 624.406, Florida
   27  Statutes, is amended to read:
   28         624.406 Combinations of insuring powers, one insurer.—An
   29  insurer which otherwise qualifies therefor may be authorized to
   30  transact any one kind or combination of kinds of insurance as
   31  defined in part V except:
   32         (1) A life insurer may also grant annuities, but shall not
   33  be authorized to transact any other kind of insurance except
   34  health insurance, disability income insurance, paid family leave
   35  insurance, excess coverage for health maintenance organizations,
   36  or excess insurance, specific and aggregate, for self-insurers
   37  of a plan of health insurance and multiple-employer welfare
   38  arrangements.
   39         Section 2. Section 624.6086, Florida Statutes, is created
   40  to read:
   41         624.6086“Paid family leave insurance” defined.—
   42         (1)“Paid family leave insurance” is insurance issued to an
   43  employer which is related to a benefit program provided to an
   44  employee to pay for a percentage or portion of the employee’s
   45  income loss due to:
   46         (a)The birth of a child or the adoption of a child by the
   47  employee;
   48         (b)Placement of a child with the employee for foster care;
   49         (c)Care of the employee’s family member who has a serious
   50  health condition; or
   51         (d)Circumstances arising out of the fact that the
   52  employee’s family member who is a servicemember is on active
   53  duty or has been notified of an impending call or order to
   54  active duty.
   55         (2)Paid family leave insurance may be issued to and
   56  purchased by an employer as an amendment or a rider to a group
   57  disability income policy, included in a group disability income
   58  policy, or issued as a separate group insurance policy.
   59         (3)As used in this section, the terms “child,” “family
   60  leave,” and “family member” have the same meanings as provided
   61  in s. 627.445(1).
   62         Section 3. Section 627.445, Florida Statutes, is created to
   63  read:
   64         627.445Paid family leave insurance.—
   65         (1)DEFINITIONS.—As used in this section, the term:
   66         (a)“Armed Forces of the United States” means an officer or
   67  enlisted member of the Army, Navy, Air Force, Marine Corps,
   68  Space Force, or Coast Guard of the United States, the Florida
   69  National Guard, and the United States Reserve Forces.
   70         (b)“Child” means a person who is:
   71         1.Under 18 years of age, or 18 years of age or older and
   72  incapable of self-care because of a mental or physical
   73  disability; and
   74         2.A biological, adopted, or foster son or daughter; a
   75  stepson or stepdaughter; a legal ward; or a son or daughter of a
   76  person to whom the employee stands in loco parentis.
   77         (c)“Family leave” means any leave taken by an employee
   78  from work for any of the circumstances specified in subsection
   79  (2).
   80         (d)“Family member” includes a child, spouse, or parent, or
   81  other person defined as a family member of the employee in the
   82  policy.
   83         (e)“Health care provider” means any hospital licensed
   84  under chapter 395 and any health care institution licensed under
   85  chapter 400 or chapter 429 or an individual licensed under
   86  chapter 458, chapter 459, chapter 460, chapter 461, chapter 464,
   87  or chapter 466.
   88         (f)“Parent” means a biological, foster, or adoptive
   89  parent; a stepparent; a legal guardian; or other person who
   90  stood in loco parentis to the employee when the employee was a
   91  child.
   92         (g)“Serious health condition” means an illness, an injury,
   93  an impairment, or a physical or mental condition, including, but
   94  not limited to, pregnancy complications that threaten the life
   95  of the mother or unborn child; transplantation preparation and
   96  recovery from surgery related to organ or tissue donation, which
   97  involves inpatient care in a hospital, hospice, or residential
   98  health care facility; continuing treatment; or continuing
   99  supervision by a health care provider. Continuing supervision by
  100  a health care provider includes a period of incapacity which is
  101  permanent or long-term due to a condition for which treatment
  102  may not be effective and where the family member need not be
  103  receiving active treatment by a health care provider.
  104         (2)COVERED FAMILY LEAVE BENEFITS.—Family leave insurance
  105  benefits provided in a paid family leave insurance policy may be
  106  provided for any leave taken by an employee from work for any of
  107  the following circumstances:
  108         (a)Participation in providing care, including physical or
  109  psychological care, for a family member made necessary by a
  110  serious health condition of the family member;
  111         (b)Bonding with the employee’s child during the first 12
  112  months after the child’s birth or the first 12 months after the
  113  placement of the child for adoption by or foster care with the
  114  employee;
  115         (c)Addressing a qualifying exigency as interpreted under
  116  the Family and Medical Leave Act of 1993, 29 U.S.C. s.
  117  2612(a)(1)(E) and 29 C.F.R. s. 825.126(a)(1)-(8), arising out of
  118  the fact that the spouse, child, or parent of the employee is on
  119  active duty or has been notified of an impending call or order
  120  to active duty in the Armed Forces of the United States;
  121         (d)Caring for a family member injured in the line of duty
  122  with the Armed Forces of the United States; or
  123         (e)Caring for a family member or other leave as specified
  124  in the policy.
  125         (3)REQUIRED POLICY SPECIFICITY.—The policy must specify:
  126         (a)Details and requirements with regard to each of the
  127  covered circumstances specified in subsection (2).
  128         (b)The length of family leave benefits available for each
  129  covered circumstance, which may not be less than 2 weeks during
  130  a period of 52 consecutive calendar weeks.
  131         (c)Whether there is an uncovered waiting period, and if
  132  so, the terms and conditions of the uncovered waiting period,
  133  which may include, but are not limited to, whether:
  134         1.The period runs over a consecutive calendar day period;
  135         2.The period is counted toward the annual allotment of
  136  covered family leave benefits or is in addition to the annual
  137  allotment of covered family leave benefits;
  138         3.The period must be met only once per benefit year or
  139  must be met for each separate claim for benefits; and
  140         4.The employee may work or receive paid time off or other
  141  compensation during the period.
  142         (d)The amount of benefits that will be paid for covered
  143  circumstances provided in subsection (2).
  144         (e)The definition of the wages or other income upon which
  145  the amount of benefits will be issued.
  146         (f)How such wages or other income will be calculated.
  147         (g)If the family leave benefits are subject to offsets for
  148  wages or other income received or for which the insured may be
  149  eligible, all such wages or other income that may be set off and
  150  the circumstances under which it may be offset.
  151         (h)The frequency of payments due for covered benefits.
  153  purposes of this section, 52 consecutive calendar weeks may be
  154  calculated by:
  155         (a)A calendar year;
  156         (b)Any fixed period starting on a particular date, such as
  157  the effective or anniversary date of the policy;
  158         (c)The employee’s hiring date or anniversary of hiring
  159  date;
  160         (d)The period measured forward from the employee’s first
  161  day of family leave;
  162         (e)A rolling period measured by looking back from the
  163  employee’s first day of family leave; or
  164         (f)Any other method specified in the policy.
  166  Eligibility for family leave benefits under this section may be
  167  limited, excluded, or reduced, but any limitation, exclusion, or
  168  reduction must be specified in the policy and not conflict with
  169  the Florida Insurance Code. Permissible limitations, exclusions,
  170  or reductions may be made for the following:
  171         (a)For any period wherein the required notice and medical
  172  certification as prescribed in the policy has not been provided;
  173         (b)For any leave related to a serious health condition or
  174  other harm to a family member brought about by a willful act by
  175  the employee;
  176         (c)For any period during which the employee performed work
  177  for remuneration or profit;
  178         (d)For any period for which the employee is eligible to
  179  receive remuneration or maintenance from her or his employer, or
  180  from a fund to which the employer has contributed;
  181         (e)For any period during which the employee is eligible to
  182  receive benefits under any other statutory program or employer
  183  sponsored program, including, but not limited to, unemployment
  184  insurance benefits, workers’ compensation benefits, or any paid
  185  time off or employer’s paid leave policy;
  186         (f)For any period commencing before the employee becomes
  187  eligible for family leave benefits under the policy;
  188         (g)For periods where more than one person seeks family
  189  leave for the same family member under the same policy, unless
  190  the policy specifies otherwise; or
  191         (h)For other reasons specified in the policy.
  192         (6)PAYMENT OF FAMILY LEAVE BENEFITS.—Family leave benefits
  193  provided under a policy that complies with this section must be
  194  paid periodically and promptly, as specified in the policy,
  195  except as to a contested period of family leave and subject to
  196  any of the limitations, exclusions, or reductions permitted
  197  under subsection (5).
  198         (7)INSURANCE POLICY.—
  199         (a)Rates for policies or riders providing paid family
  200  leave insurance benefits must be calculated in accordance with
  201  the rate standards provided in s. 627.062.
  202         (b)Forms for policies or riders providing paid family
  203  leave insurance benefits are subject to review by the office
  204  under s. 627.410.
  205         (c)A policy issued under this section must be issued as
  206  provided in s. 624.6086(2).
  207         (8)RULEMAKING.—The commission may adopt rules to
  208  administer this section.
  209         Section 4. This act shall take effect upon becoming a law.