H.R.3192 - Paid Family and Medical Leave Act of 2005109th Congress (2005-2006)
|Sponsor:||Rep. Stark, Fortney Pete [D-CA-13] (Introduced 06/30/2005)|
|Committees:||House - Education and the Workforce; Ways and Means|
|Latest Action:||05/01/2006 Referred to the Subcommittee on Workforce Protections.|
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Text: H.R.3192 — 109th Congress (2005-2006)All Bill Information (Except Text)
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Introduced in House (06/30/2005)
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[Congressional Bills 109th Congress] [From the U.S. Government Printing Office] [H.R. 3192 Introduced in House (IH)] 109th CONGRESS 1st Session H. R. 3192 To provide for a paid family and medical leave insurance program, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES June 30, 2005 Mr. Stark (for himself, Mr. George Miller of California, Mr. Owens, Ms. Woolsey, and Mr. Lantos) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned _______________________________________________________________________ A BILL To provide for a paid family and medical leave insurance program, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Paid Family and Medical Leave Act of 2005''. SEC. 2. CONGRESSIONAL FINDINGS. Congress finds the following: (1) Although family and medical leave laws have assisted employees to balance the demands of the workplace with their family responsibilities, more needs to be done to achieve the goals of workforce stability and economic security. (2) All working Americans need to be able to take leave from work, at times, to recover from their own serious illness, to take care of a seriously ill family member, or to care for a newborn or newly adopted child. (3) Americans who provide direct care for their family members prevent the worsening of illnesses and promote strong recovery. For example, when parents are able to attend to their child in a hospital, the child's stay decreases by 31 percent, enabling parents to make an expedited return to work. (4) For many workers, the promise of family or medical leave is meaningless because they cannot afford to take leave without pay. (5) Seventy-eight percent of eligible employees who need but do not take family or medical leave do not take it because they cannot afford to. (6) One in ten employees who receive less than full pay while on leave are forced onto public assistance. (7) Forty-seven percent of women and men working in the private sector lack any access to paid sick leave to help compensate them if they become seriously ill. For those workers who do have access to paid sick leave, few can use it to receive a paycheck while caring for family members. (8) Family and medical leave benefits strengthen and support the business sector through health care savings and increased employee retention and productivity. (9) Organizations struggling to weather the current economic downturn will have a bottom-line interest in maintaining a stable workforce and retaining experienced employees in whom they have already invested. (10) Demographic changes over the past few decades have altered the face and needs of the work force. It is now common for both parents to be in the workforce and many men and women also find themselves as the primary caregiver for an elderly spouse or parent. (11) Fifty-five percent of women with babies younger than one are in the workforce, while 73 percent of women with children one year or older are in the workforce. (12) Nearly two-thirds of Americans under the age of 60 expect to be responsible for the care of an elder relative in the next ten years. SEC. 3. DEFINITIONS. (a) In General.--Except as provided in subsection (b) of this Act, the definitions provided by section 101 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611) shall apply for purposes of this Act. (b) Additional Definitions.--For purposes of this Act, the following additional definitions shall apply: (1) Board of trustees.--The term ``Board of Trustees'' means the Board of Trustees of the Family and Medical Leave Trust Fund. (2) Calendar quarter and quarter.--The terms ``calendar quarter'' and ``quarter'' mean a period of three calendar months ending on March 31, June 30, September 30, or December 31. (3) Covered agency.--The term ``covered agency'', when used with respect to a State, means the State agency referred to in paragraph (1) of section 101(b), or the Commissioner of the Social Security Administration if the Commissioner is carrying out the State Family and Medical Insurance Program in the State under paragraph (2) of such section. (4) Commissioner.--The term ``Commissioner'' means the Commissioner of the Social Security Administration. (5) Eligible employees.--Section 101(2) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(2)) shall not apply for purposes of this Act, and the term ``eligible employee'' means any of the following: (A) An employee who has earned at least $250 in each of the four calendar quarters prior to filing an application for benefits under this title. (B) A self-employed individual who has-- (i) elected to participate in the program under this title in accordance with such regulations as the Secretary of Labor shall prescribe; (ii) earned at least $250 of self- employment income in each of the four calendar quarters prior to filing an application for benefits under this title; and (iii) paid tax under section 1401(c) of the Internal Revenue Code of 1986 with respect to such self-employment income. (C) An employee who was covered by a voluntary employer plan under section 101(d)(3) that has been terminated or whose employer has eliminated such a plan. (D) A Federal officer or employee covered under subchapter V of chapter 63 of title 5, United States Code. (6) Employer.--For purposes of this title, subparagraph (A) of section 101(4) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611(4)) shall be applied by substituting ``one'' for ``50''. (7) Program.--The term ``Program'' means a State Family and Medical Insurance Program established under section 101. (8) Managing trustee.--The term ``Managing Trustee'' means the Managing Trustee of the the Board of Trustees of the Family and Medical Leave Trust Fund. (9) Trust fund.--The term ``Trust Fund'' means the Family and Medical Leave Trust Fund established under section 201. (10) Quarter of coverage.--The term ``quarter of coverage'' means a period in which an individual earned wages or self- employment income of at least $250 in a quarter and paid taxes on that income into the Family and Medical Leave Trust Fund. TITLE I--FAMILY AND MEDICAL INSURANCE PROGRAM SEC. 101. ESTABLISHMENT. (a) Federal Program.--The Secretary of Labor shall establish a Family and Medical Insurance Program. (b) State Programs.--In carrying out the Federal Program, the Secretary may-- (1) enter into a contract with a State under which-- (A) the State agrees to establish, and provide the benefits described under this title in that State through a Family and Medical Insurance Program; and (B) the Secretary agrees to instruct the Managing Trustee of the Family and Medical Leave Trust Fund, established under section 201, to provide funds for such benefits from the Fund; or (2) at the request of the Governor of a State, enter into an interagency agreement with the Commissioner of the Social Security Administration to establish, and provide the benefits described under this title, through a State Family and Medical Insurance Program directly in a State from funds provided to the Commissioner by the managing trustee of the Fund. (c) State Application.--To be eligible to receive a contract under subsection (b)(1), a State shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. At a minimum, the application shall include information identifying the State agency to carry out the State Family and Medical Insurance Program. SEC. 102. BENEFITS. (a) Entitlement.--Under a State Family and Medical Insurance Program, an eligible employee shall be entitled to a family and medical insurance benefit for a total of 12 workweeks of leave during any 12 month period for one or more of the following reasons, subject to a waiting period of 7 consecutive days during each family and medical insurance period where no benefits are payable within that period: (1) Because of the birth of a son or daughter of the employee and in order to care for such a son or daughter. (2) Because of the placement of a son or daughter with the employee for adoption or foster care. (3) In order to care for a child, parent, spouse, or other persons who are members of the employee's household who have a serious medical condition. (4) Because of a serious health condition that makes the employee unable to perform the functions of the position of such employee. (b) Benefit Amount.-- (1) In general.--An eligible employee's paid family and medical insurance benefit for any workday on which the employee takes leave as described in subsection (a) shall be equal to 55 percent of the daily equivalent of the weekly basic earnings of the eligible employee when the leave commenced, reduced by any amount received by the eligible employee for the same period from any other source for the reasons referred to in such subparagraph. (2) Weekly basic earnings.--The weekly basic earnings of an eligible employee for purposes of this title shall be equal to the weekly basic earnings of the eligible employee up to the maximum amount specified in this subsection for the calendar year in which the leave commenced. Not later than November 1 preceding each calendar year, the Secretary shall publish in the Federal Register the maximum weekly amount for leave for such calendar year. (3) Calendar year 2008.--With respect to leave provided in calendar year 2008, the maximum weekly amount under this subparagraph shall be $1,350. (4) Subsequent calendar years.--With respect to leave provided in any calendar year after 2008, the maximum weekly basic earnings referred to in clause (ii) shall equal the product of $1,350 and the quotient obtained by dividing-- (A) the national average wage index (as defined in section 209(k)(1) of the Social Security Act (42 U.S.C. 409(k)(1))) for the second calendar year preceding the calendar year for which the determination is made; by (B) the national average wage index (as so defined) for calendar year 2008. (5) Rounding.--Each amount established under this subsection for any calendar year shall be rounded to the nearest $1, except that any amount so established that is a multiple of $0.50 but not of $1 shall be rounded to the next higher multiple of $1. (c) Application.-- (1) In general.--To be eligible to receive a family and medical insurance benefit under this title in a State, an eligible employee shall submit an application to the covered agency for the State at such time, in such manner, and containing the information specified in paragraph (3) and such additional information as the agency may require. (2) Irrevocability for self-employed individuals.--An election by a self-employed individual to participate in the Program shall be irrevocable. (3) Certification requirements.--The covered agency shall require each of the following, as part of the application for benefits under this section in connection with any leave: (A) A certification, submitted in a timely manner, issued by the health care provider of the eligible employee or of the child, spouse, parent, or member of the employee's household, as appropriate, and meeting the requirements of section 103(b) of the Family and Medical Leave Act of 1993 (29 U.S.C. 2613(b)) in connection with such leave. (B) In any case in which the covered agency has reason to doubt the validity of the certification provided under subparagraph (A), the Secretary may require, at the expense of the covered agency, that the eligible employee obtain the opinion of a second health care provider designated or approved by the agency concerning any information certified under subparagraph (A). (C) In any case in which the second opinion described in subparagraph (B) differs from the opinion in the original certification provided under subparagraph (A), the covered agency may require, at the expense of the agency, that the employee obtain the opinion of a third health care provider designated or approved jointly by the agency and the employee concerning the information certified under subparagraph (A). The opinion of the third health care provider concerning such information shall be considered to be final and shall be binding on the agency and the employee. (d) Payment of Benefits.-- (1) Payment from trust fund.--Benefit payments required to be made under this section shall be made only from the Trust Fund. (2) Certification and payment.--On the final decision of a covered agency or on the final judgment of any court of competent jurisdiction pursuant to paragraph (3) that any person is entitled to any payment under this section-- (A) the covered agency shall certify to the Managing Trustee of the Board of Trustees of the Trust Fund the name and address of the person entitled to receive such payment, the amount of such payment, and the time at which such payment shall be made; (B) the Managing Trustee shall pay the certified amount from the Trust Fund to the covered agency; and (C) the covered agency shall make the payment to the person. (3) Review.--Any eligible employee dissatisfied with any initial determination under this section shall be entitled to reconsideration of the determination, and a hearing on the determination, by the Secretary to the same extent as is provided in section 205(b) of the Social Security Act (42 U.S.C. 405(b)) and to judicial review of the final decision after such hearing as is provided in section 205(g) of the Social Security Act (42 U.S.C. 405(g)). (4) Withholding of certification.--In any case in which a review of the covered agency's decision is or may be sought under paragraph (3), the covered agency may withhold certification of payment pending such review. (5) Other compensation.--Except as provided in section 105, no employee shall be eligible to receive paid leave benefits under this title for any period during which-- (A) the employee is receiving worker's compensation or compensation through unemployment insurance in connection with the event for which the employee is taking the leave; or (B) the employee is receiving paid leave benefits from an employer under a voluntary employer plan approved under paragraph (3). (e) Regulations.--The Secretary shall issue regulations to carry out this subsection, including the determination of benefits for leave taken intermittently or on a reduced leave schedule, or for leave taken by a part-time, seasonal, or intermittent employee. SEC. 103. VOLUNTARY EMPLOYER PLAN. The Secretary shall approve any voluntary plan of an employer as to which the Secretary finds that there is at least one employee in employment and all of the following exist: (1) The rights afforded to the covered employees are equal or greater than those provided in the relevant Program. (2) The plan has been made available to all of the employees of the employer employed in the United States or to all employees at any one distinct, separate establishment maintained by the employer in the United States. As used in this paragraph, the term ``employees'' includes those individuals in partial or other forms of short-time employment and employees not in employment as the Secretary shall prescribe by regulation. (3) A majority of the employees of the employer employed in the United States or a majority of the employees employed at any one distinct, separate establishment maintained by the employer in the United States have consented to the plan. (4) The plan provides for insurance to be issued by an admitted disability insurer approved by the Secretary or equivalent. (5) The employer has consented to the plan and has agreed to make the payroll deductions required, if any, and transmit the proceeds to the disability insurer, if any. (6) The plan provides for the inclusion of future employees. (7) The plan will be in effect for a period of not less than one year and, thereafter, continuously unless the Secretary finds that the employer or a majority of its employees employed in the United States or a majority of the employees employed at any one distinct, separate establishment maintained by the employer in the United States covered by the plan have given notice of the termination of the plan and paid a fee to the Secretary in such amount as the Secretary deems adequate to cover family and medical insurance benefits under this title to all employees of the employer for a period of at least four calendar months, plus an amount to pay administrative costs related to processing and paying such benefits. The notice shall be filed in writing with the Secretary and shall be effective only on the anniversary of the effective date of the plan next following the filing of the notice, but in any event not less than 30 days from the time of the filing of the notice. Amounts received by the Secretary under this subparagraph shall be deposited in the Trust Fund. (8) The amount of deductions from the wages of an employee in effect for any plan shall not be increased on any date other than on the date of an anniversary of the effective date of the plan. SEC. 104. ADDITIONAL BENEFITS. (a) Additional State Programs.--Any State that has a separate State family and medical insurance program or temporary disability program may pay an eligible employee benefits under such separate program in addition to the benefits under this title or use the separate State program to pay for additional weeks of benefits after the benefits available under this title are exhausted. (b) Additional Employer Benefits.--Nothing in this title disallows an employer who participates in a State Program from providing an employee additional benefits in addition to the family and medical insurance benefit provided under this title. These additional employer benefits shall not reduce the amount of the benefit that an employee collects from the family and medical insurance benefit under the State Program. (c) Collective Bargaining.--Nothing in this title shall interfere with the right of unions to bargain collectively with employers to provide benefits that are better than the family and medical insurance benefit provided under this title. SEC. 105. PROHIBITED ACTS BY EMPLOYER. (a) Interference With Rights.--It shall be unlawful for any employer to interfere with, restrain, or deny the exercise of or the attempt to exercise, any right provided under this title. (b) Discrimination.--It shall be unlawful for any employer to discharge or in any other manner discriminate against any individual for opposing any practice made unlawful by this title. (c) Interference With Proceedings or Inquiries.--It shall be unlawful for any person to discharge or in any other manner discriminate against any individual because such individual-- (1) has filed any charge, or has instituted or caused to be instituted any proceeding, under or related to this title; (2) has given, or is about to give, any information in connection with any inquiry or proceeding relating to any right provided under this title; or (3) has testified, or is about to testify, in any inquiry or proceeding relating to any right provided under this title. SEC. 106. ENFORCEMENT. (a) Civil Action by Employees.-- (1) Liability.--Any employer who violates section 106 shall be liable to any eligible employee affected-- (A) for damages equal to-- (i) the amount of-- (I) any wages, salary, employment benefits, or other compensation denied or lost to such employee by reason of the violation; or (II) in a case in which wages, salary, employment benefits, or other compensation have not been denied or lost to the employee, any actual monetary losses sustained by the employee as a direct result of the violation, such as the cost of providing care, up to a sum equal to 12 weeks of wages or salary for the employee; (ii) the interest on the amount described in clause (i) calculated at the prevailing rate; and (iii) an additional amount as liquidated damages equal to the sum of the amount described in clause (i) and the interest described in clause (ii), except that if an employer who has violated section 106 proves to the satisfaction of the court that the act or omission which violated the such subsection was in good faith and that the employer had reasonable grounds for believing that the act or omission was not a violation of such subsection, such court may, in the discretion of the court, reduce the amount of the liability to the amount and interest determined under clauses (i) and (ii), respectively; and (B) for such equitable relief as may be appropriate, including employment, reinstatement, and promotion. (2) Right of action.-- (A) In general.--Except as provided in subparagraph (B), an action to recover the damages or equitable relief prescribed in paragraph (1) may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and on behalf of-- (i) the employees; or (ii) the employees and other employees similarly situated. (B) Limitation.--The right provided by subparagraph (A) to bring an action by or on behalf of any employee shall terminate-- (i) on the filing of a complaint by the Secretary in an action under subsection (b)(3) in which restraint is sought of any further delay in the payment of the amount described in paragraph (1)(A) to such employee by an employer responsible under paragraph (1) for the payment; or (ii) on the filing of a complaint by the Secretary in an action under paragraphs (1) or (2) of subsection (b) in which a recovery is sought of the damages described in paragraph (1)(A) owing to an eligible employee by an employer liable under paragraph (1), unless the action described in clauses (i) or (ii) is dismissed without prejudice on motion of the Secretary. (3) Fees and costs.--The court in an action brought under this subsection shall, in addition to any judgment awarded to the plaintiff, allow a reasonable attorney's fee, reasonable expert witness fees, and other costs of the action to be paid by the defendant. (b) Actions by the Secretary.-- (1) Administrative action.--The Secretary shall receive, investigate, and attempt to resolve complaints of violations of section 106 in the same manner that the Secretary receives, investigates, and attempts to resolve complaints of violations of sections 6 and 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. 206 and 207). (2) Civil action.-- (A) Right of action.--The Secretary may bring an action in any court of competent jurisdiction to recover the damages described in paragraph (1)(A). (B) Sums recovered.--Any sums recovered by the Secretary pursuant to this paragraph shall be held in a special deposit account and shall be paid, on order of the Secretary, directly to each employee affected. Any such sums not paid to an employee because of inability to do so within a period of 3 years shall be deposited into the Treasury of the United States as miscellaneous receipts. (3) Action for injunction by the secretary.--The district courts of the United States shall have jurisdiction, for cause shown, in an action brought by the Secretary-- (A) to restrain violations of prohibited acts section, including the restraint of any withholding of payment of wages, salary, employment benefits, or other compensation, plus interest, found by the court to be due to eligible employees; or (B) to award such other equitable relief as may be appropriate, including employment, reinstatement, and promotion. (4) Solicitor of labor.--The Solicitor of Labor may appear for and represent the Secretary on any litigation brought under this subsection. (c) Limitation.-- (1) Except as provided in paragraph (2), an action may be brought under subsections (a) or (b) not later than 2 years after the date of the last event constituting the alleged violation for which the action is brought. (2) Willful violation.--In the case of such action brought for a willful violation of section 106, such action may be brought within 3 years of the date of the last event constituting the alleged violation for which such action is brought. (3) Commencement.--In determining when an action is commenced for the purposes of this subsection, it shall be considered to be commenced on the date when the complaint is filed. (d) False Statements.--If the Secretary finds that any individual falsely certifies the medical condition of any person in order to obtain family and medical insurance benefits under this title with the intent to defraud, whether for the maker or for any other person, the Secretary shall assess a penalty against the individual in an amount up to 100 percent of the benefits paid as a result of the false certification. Penalties collected under this section shall be deposited in the Trust Fund, notwithstanding the provisions of title 31, United States Code. (e) Investigative Authority.-- (1) In general.--To ensure compliance with the provisions of this title, or any regulation or order issued under this title, the Secretary shall have, subject to paragraph (3), the investigative authority provided under section 11(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)). (2) Obligation to keep and preserve records.--Any employer shall make, keep, and preserve records pertaining to compliance with this title in accordance with section 11(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(c)) and in accordance with regulations issued by the Secretary. (3) Required submissions generally limited to an annual basis.--The Secretary shall not under the authority of this subsection require any employer or any plan, fund, or program to submit to the Secretary any books or records more than once during any 12-month period, unless the Secretary has reasonable cause to believe there may exist a violation of this title or any regulation or order issued pursuant to this title, or is investigating a charge pursuant to paragraph (2). (4) Subpoena power.--For the purposes of any investigation provided for in this section, the Secretary shall have the subpoena authority provided for under section 9 of the Fair Labor Standards Act of 1938 (29 U.S.C. 209). SEC. 107. CRIMINAL PENALTIES. Whoever-- (1) makes or causes to be made any false statement in support of an application for benefits under this title; (2) knowingly presents or causes to be presented any false written or oral material statement in support of any claim for benefits under this title; (3) knowingly solicits, receives, offers, pays, or accepts any rebate, refund, commission, preference, patronage, dividend, discount, or other consideration, whether in the form of money or otherwise, as compensation or inducement for soliciting a claimant to apply for benefits under this title, except to the extent authorized by a law of the United States; or (4) knowingly assists, abets, solicits, or conspires with any person who engages in an act that is prohibited under paragraph (1), (2), or (3), shall be guilty of a felony and upon conviction shall be fined under title 18, United States Code, or imprisoned for not more than 5 years, or both. SEC. 108. EDUCATION PROGRAMS. (a) Authority.--The Secretary shall develop and maintain a program of education concerning the paid family medical and insurance rights and benefits under this title. (b) Notice to Employers.--The Secretary shall provide to each employer of employees subject to this title a notice informing employees of their family and medical insurance rights and benefits under this title. The notice shall be given by every employer to each new employee hired, and to each employee leaving work under the allowed circumstances of this title. SEC. 109. EFFECTIVE DATE. This title shall take effect on January 1, 2006, and shall apply to periods of leave that commence on or after January 1, 2008. TITLE II--FAMILY AND MEDICAL LEAVE TRUST FUND SEC. 201. ESTABLISHMENT. (a) In General.--There is created in the Treasury of the United States a trust fund to be known as the Family and Medical Leave Trust Fund. The Trust Fund shall consist of such amounts as may be deposited in, or appropriated to, such fund as provided in this section. (b) Appropriations to Trust Fund.-- (1) Amounts appropriated.--There is appropriated to the Trust Fund for fiscal year 2006 and each fiscal year thereafter, out of any moneys in the Treasury not otherwise appropriated, amounts equivalent to 100 percent of-- (A) the taxes imposed by section 3111(c) of the Internal Revenue Code of 1986 with respect to wages (as defined in section 3121 of such Code) reported to the Secretary of the Treasury or the Secretary's delegate pursuant to subtitle F of such Code on or after January 1, 2006, as determined by the Secretary by applying the applicable rates of tax under such sections to such wages, which wages shall be certified by the Commissioner of Social Security on the basis of the records of wages established and maintained by the Commissioner in accordance with such reports; and (B) the taxes imposed by section 1401(c) of such Code with respect to self-employment income (as defined in section 1402 of such Code) reported to the Secretary of the Treasury or the Secretary's delegate on tax returns under subtitle F of such Code, as determined by the Secretary by applying the applicable rate of tax under such section 1401(c) to such self-employment income, which self-employment income shall be certified by the Commissioner of Social Security on the basis of the records of self-employment income established and maintained by the Commissioner in accordance with such returns. (2) Transfers.--Such appropriated amounts shall be transferred from time to time from the general fund of the Treasury to the Trust Fund. Such amounts shall be determined on the basis of estimates by the Secretary of the Treasury of the taxes, specified in paragraph (1), paid to or deposited into the Treasury, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess of or were less than such taxes. (3) Investments.--All amounts transferred to the Trust Fund under paragraph (2) shall be invested by the Managing Trustee referred to in section 202(c) in the same manner and to the same extent as the other assets of the Trust Fund. SEC. 202. BOARD OF TRUSTEES. (a) Establishment and Membership.--With respect to the Trust Fund, there is established a body to be known as the Board of Trustees of the Trust Fund which shall be composed of the Secretary of the Treasury, the Secretary of Labor, the Commissioner of Social Security, and the Secretary of Health and Human Services, all ex officio, and of two members of the public (both of whom may not be from the same political party), who shall be nominated by the President, by and with the advice and consent of the Senate. (b) Terms and Vacancies.--Members of the Board of Trustees shall serve for a period of 4 years. A member of the Board of Trustees nominated and confirmed as a member of the public to fill a vacancy occurring during a term shall be nominated and confirmed only for the remainder of such term. An individual nominated and confirmed as a member of the public may serve in such position after the expiration of such member's term until the earlier of the date on which the member's successor takes office or the date on which a report of the Board is first issued under paragraph (2) after the expiration of the member's term. (c) Managing Trustee and Secretary.--The Secretary of the Treasury shall be the Managing Trustee of the Board of Trustees. The Secretary of Labor shall serve as the Secretary of the Board of Trustees. (d) Basic Duties of the Board of Trustees.--The Board of Trustees shall meet not less frequently than once each calendar year. It shall be the duty of the Board of Trustees to-- (1) hold the Trust Fund; (2) report to Congress not later than April 1 of each year-- (A) on the operation and status of the Trust Fund during the fiscal year preceding the fiscal year in which the report is made; and (B) on the expected operation and status of the Trust Fund during the fiscal year in which the report is made and the next two fiscal years; (3) report immediately to Congress whenever the Board is of the opinion that the amount in the Trust Fund is unduly small; and (4) review the general policies followed in managing the Trust Fund, and recommend changes in such policies, including necessary changes in the provisions of law that govern the way in which the Trust Fund is to be managed. (e) Requirements Relating to Annual Report.--The report provided for in subsection (d)(2) shall include a statement of the assets of, and the disbursements made from, the Trust Fund during the fiscal year preceding the fiscal year in which the report is made, an estimate of the expected income to, and disbursements to be made from, the Trust Fund during the fiscal year in which the report is made and each of the next two fiscal years, and a statement of the actuarial status of the Trust Fund. Such report shall also include an actuarial opinion by an appropriate employee of the Department of Labor certifying that the techniques and methodologies used for the report are generally accepted within the actuarial profession and that the assumptions and cost estimates used for the report are reasonable. Such report shall be printed as a document of the House of Representatives for the session of the Congress to which the report is made. (f) Liability.--A person serving as a member of the Board of Trustees shall not be considered to be a fiduciary and shall not be personally liable for actions taken in such capacity with respect to the Trust Fund. SEC. 203. INVESTMENT OF THE TRUST FUND. (a) Obligations.--It shall be the duty of the Managing Trustee to invest such portion of the Trust Fund as is not, in the trustee's judgment, required to meet current withdrawals. Such investments may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. (b) Acquisition.--The obligations referred to in subsection (a) may be acquired-- (1) on original issue at the issue price; or (2) by purchase of outstanding obligations at the market price. (c) Obligations Issued for Purchase by Trust Fund.--The purposes for which obligations of the United States may be issued under chapter 31 of title 31, United States Code, are extended to authorize the issuance at par of public debt obligations for purchase by the Trust Fund. Such obligations issued for purchase by the Trust Fund shall have dates of maturity fixed with due regard for the needs of the Trust Fund. Such obligations shall bear interest at a rate equal to-- (1) except as provided in paragraph (2), the average market yield (computed by the Managing Trustee on the basis of market quotations as of the end of the calendar month preceding the date of such issue) on all marketable interest-bearing obligations of the United States forming a part of the public debt that are not due or callable until after the expiration of four years from the end of such calendar month; or (2) in a case in which such average market yield is not a multiple of 0.1 percent, the multiple of 0.1 percent nearest such market yield. (d) Other Obligations.--The Managing Trustee may purchase interest- bearing obligations of the United States that are not described in subsection (c) or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price, only in cases in which the trustee determines that the purchase of obligations described in this paragraph is in the public interest. (e) Disposition and Redemption of Obligations.--Any obligations acquired by the Trust Fund (except public debt obligations issued exclusively to the Trust Fund) may be sold by the Managing Trustee at the market price, and such public debt obligations may be redeemed at par plus accrued interest. (f) Crediting of Interest and Proceeds.--The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund. SEC. 204. PAYMENTS FROM TRUST FUND. The Managing Trustee shall pay from time to time from the Trust Fund such amounts as the Secretary of Labor certifies are necessary to make the payments provided for by section 102, and payments with respect to administrative expenses under section 205. SEC. 205. ADMINISTRATIVE EXPENSES. (a) Availability of Trust Fund.--Under regulations that shall be prescribed by the Secretary of Labor, funds shall be made available from the Trust Fund in connection with the administration of this Act and the administration of related provisions of the Internal Revenue Code of 1986 in the same manner and extent as funds are made available from the trust funds referred to in section 201(g) of the Social Security Act (42 U.S.C. 401(g)) in connection with the administration of the relevant provisions referred to in such section. (b) Authorization of Appropriations.--There are authorized to be made available for expenditure, out of the Trust Fund, such amounts as Congress may determine to be appropriate to pay-- (1) the costs of the part of the administration of this Act for which the Secretary of Labor is responsible; and (2) the costs of carrying out the functions of the Social Security Administration specified in section 232 of the Social Security Act (42 U.S.C. 432) (made applicable under subsection (j)), that relate to the administration of provisions of the Internal Revenue Code of 1986, other than those costs excluded under the regulations of the Secretary of Labor prescribed pursuant to paragraph (1). (c) Gifts and Bequests.--The Managing Trustee may accept on behalf of the United States money gifts and bequests made unconditionally to the Trust Fund for the benefit of the Trust Fund or any activity financed through the Trust Fund and such gifts and bequests shall be deposited into the Trust Fund. (d) Processing of Tax Data.--Section 232 of the Social Security Act (42 U.S.C. 432) shall apply with respect to this Act, in the same manner and to the same extent as such section applies with respect to title II of the Social Security Act (42 U.S.C. 401 et seq.). SEC. 206. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986. (a) Tax on Employers.--Section 3111 of such Code (relating to tax on employers) is amended-- (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: ``(c) Family and Medical Insurance.-- ``(1) In general.--In addition to the taxes imposed by subsections (a) and (b), there is imposed on every employer an excise tax, with respect to having individuals in such employer's employ, equal to 0.4 percent of the wages paid by such employer with respect to employment (as defined in section 3121(b)). ``(2) Exception for employers with equivalent or better plan.--Paragraph (1) shall not apply with respect to a period of employment by an employer during which the Secretary of Labor determines the employer has in effect a plan which is equivalent to or better than the Family and Medical Insurance Program (established under the Family and Medical Insurance Act of 2005). For purposes of the preceding sentence, the Secretary of Labor shall prescribe such regulations as may be appropriate or necessary, including regulations requiring documentation of employer programs.''. (b) Self-Employment Tax.--Section 1401 of such Code is amended-- (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: ``(c) Family and Medical Insurance.--In addition to the taxes imposed by subsections (a) and (b), there is imposed for each taxable year, on the self-employment income of every individual who has elected to participate in the Family and Medical Insurance Program (established under the Family and Medical Insurance Act of 2005) a tax equal to 0.4 percent of the amount of the self-employment income for such taxable year.''. (c) Effective Date.-- (1) Employment taxes.--The amendments made by subsection (a) shall apply to wages paid on or after January 1, 2006. (2) Self-employment tax.--The amendments made by subsection (b) shall apply to taxable years beginning on or after January 1, 2006. <all>