By: Morales Shaw H.B. No. 2604
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of a paid parental leave program
  administered by the Texas Workforce Commission; imposing an
  employer contribution.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 4, Labor Code, is amended by
  adding Chapter 319 to read as follows:
  CHAPTER 319.  PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES
         Sec. 319.001.  DEFINITIONS. In this chapter:
               (1)  "Employee" means an individual who performs
  services for an employer for compensation under a contract for
  hire, whether express or implied.  The term does not include an
  independent contractor.
               (2)  "Employer" means a person that employs one or more
  employees.
               (3)  "Program" means the Texas Family Fund Program
  established under Section 319.002.
         Sec. 319.002.  ESTABLISHMENT OF PROGRAM; RULEMAKING.  (a)  
  The commission shall establish the Texas Family Fund Program to
  administer, distribute payments for, and assess contributions for
  paid parental leave under this chapter.
         (b)  The commission shall adopt rules as necessary to
  implement this chapter.
         Sec. 319.003.  PAID PARENTAL LEAVE FOR CERTAIN EMPLOYEES.
  (a)  This section applies only to an employee who:
               (1)  has worked for the employer:
                     (A)  not less than 540 hours during the preceding
  six months; or
                     (B)  on a full-time basis during the preceding
  three months.
         (b)  Subject to Subsections (c) and (d), an employee is
  entitled to 12 weeks of paid leave funded by the program for the:
               (1)  birth of a child;
               (2)  birth of a child by the employee's spouse;
               (3)  birth of a child by a gestational surrogate; or
               (4)  adoption of a child.
         (c)  An employee who takes paid leave under Subsection (b) is
  entitled to paid leave for each week of paid leave taken under that
  subsection in an amount equal to:
               (1)  100 percent of the employee's weekly wage if the
  employee is paid:
                     (A)  an hourly rate that is not greater than $15 an
  hour; or
                     (B)  an annual salary as a full-time employee that
  is not greater than $31,200;
               (2)  95 percent of the employee's weekly wage if the
  employee is paid:
                     (A)  an hourly rate that is more than $15 an hour
  and not greater than $20 an hour; or
                     (B)  an annual salary as a full-time employee that
  is more than $31,200 and not greater than $41,600; or
               (3)  80 percent of the employee's weekly wage or $1,000,
  whichever amount is less, if the employee is paid:
                     (A)  an hourly rate that is more than $20 an hour;
  or
                     (B)  an annual salary as a full-time employee that
  is more than $41,600.
         (d)  This section does not entitle an employee to leave in
  addition to any leave the employee is entitled to under the federal
  Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et
  seq.).  An employee is not entitled to paid leave under this section
  for any period during which the employee is taking other paid leave.
         (e)  An employee who qualifies for leave under this section
  under Subsection (a)(1)(A) only may not take leave under this
  section:
               (1)  later than the first anniversary of the date of
  birth or adoption of a child described by Subsection (b); and
               (2)  more than one time during a 12-month period.
         Sec. 319.004.  EMPLOYER CONTRIBUTION. (a)  Except as
  provided by Subsection (d), an employer shall pay a contribution on
  wages paid during a calendar year. The contribution shall be paid
  to the commission in accordance with rules adopted by the
  commission.
         (b)  An employer's contribution under Subsection (a) is an
  amount equal to 0.15 percent of all wages paid by the employer
  during the calendar year.
         (c)  An employer may not deduct any part of a contribution
  under this section from the wages of an individual.
         (d)  This section does not apply to an employer that:
               (1)  maintains a self-funded paid leave policy.
         Sec. 319.005.  ADMINISTRATION OF CONTRIBUTIONS. (a) On
  receipt of contributions under Section 319.004, the commission
  shall forward the contributions to the comptroller.
         (b)  The comptroller shall immediately deposit contributions
  under this chapter in the Texas Family Fund.
         (c)  The comptroller is custodian of the Texas Family Fund
  and shall administer the fund in accordance with the directions of
  the commission.  The comptroller shall issue warrants on the Texas
  Family Fund for the payment of paid leave under this chapter in
  accordance with rules adopted by the commission.
         Sec. 319.006.  TEXAS FAMILY FUND. (a)  The Texas Family Fund
  is a special fund.
         (b)  The fund consists of:
               (1)  contributions collected under this chapter;
               (2)  interest earned on money in the fund; and
               (3)  other money received for the fund from any other
  source.
         (c)  Benefits are due and payable only to the extent money is
  available for that purpose in the fund.  This state and the
  commission are not liable for any amount in excess of the amount in
  the fund.
         SECTION 2.  Not later than January 1, 2024, the Texas
  Workforce Commission shall:
               (1)  establish the Texas Family Fund Program in
  accordance with Section 319.002, Labor Code, as added by this Act;
  and
               (2)  adopt rules necessary to implement Chapter 319,
  Labor Code, as added by this Act.
         SECTION 3.  An employee is not entitled to paid leave under
  Chapter 319, Labor Code, as added by this Act, before September 1,
  2024.
         SECTION 4.  This Act takes effect September 1, 2023.