FEBRUARY 8, 2023:
A House committee this morning (Feb. 8, 2023) recommended passage of a proposal that would change how the state pays state employees for family leave. It would also set up a means for other governments and private businesses to participate in the paid family leave program.
On an 11 to 0 vote, the House State Affairs Committee recommended passage of HB 1151 but is sending the proposal to the Joint Appropriations Committee for further consideration. The bill would pay 80% of state employees’ family leave for 12 weeks for births, adoptions and medical emergencies via an insurance policy the state would purchase. The other 20% of the employees’ leave would be paid for out of the budget of the state agency the employee works for.
Governor Kristi Noem’s office proposed the bill and says the plan would save the state money and be available for other entities to join the pool. They say this gives South Dakota businesses another tool to keep and recruit workers, particularly younger workers with families.
Other governments and businesses that participate can join and tailor the leave length and amount paid as they see fit.
Several business, insurance, and state employee groups spoke in favor the proposal. The bill had no opponents.
(The South Dakota Broadcasters Association contributed to this story.)
JANUARY 26, 2023:
District 24 Representative Mike Weisgram of Fort Pierre is among the prime sponsors of a two-part paid family leave initiative proposed in the South Dakota Legislature.
Weisgram says HB 1151 enhances paid family leave benefits for state employees and provides an affordable opportunity for entities in the private and public sectors to offer the same benefits. He says in addition to building stronger families, this legislation puts state government in a position to attract top talent. The bill would not only extend benefits for new births or adoptions, but also cover instances where a spouse or parent suffers from a serious health condition, or where a spouse is called to active-duty military service. Senator Jessica Castleberry of Rapid City is the prime sponsor in the Senate.
HB 1151 allows the Bureau of Human Resources to accept proposals from insurance companies to offer paid family and medical wage replacement coverage for all state employees. This insurance policy will cover 80% of a state’s employee salary for up to 12 weeks in a one-year period for:
- The birth of a child, placement from foster care, or adoption of a child;
- Care for a sick spouse, child, or parent who has a serious health condition; and
- Military exigency which requires leave due to a family member being on active duty.
The remaining 20% of an employee’s salary will be covered by the state through their agency’s budget, so state employees will receive 100% of their salaries while utilizing paid family leave. Private sector businesses, as well as other public sector entities, will be able to join the state’s insurance risk pool and purchase a policy that fits their needs from the state’s insurance provider – and receive a much lower premium rate than they otherwise would.
SB 154 seeks to establish a $20 million grant program to help private businesses offer these enhanced benefits to their employees. The prime sponsors Senator Tim Reed of Brookings and Rep. Becky Drury of Rapid City.
This bill would appropriate $20 million in one-time dollars for grants to encourage businesses to enroll in the paid family leave program and grow the insurance group size.
“Too many South Dakota families have to make the difficult choice between staying home with a new child and their career. With this legislation, far more South Dakotans won’t have to make that choice,” said Representative Drury. “I am excited that we have the chance to extend this opportunity.”
The paid family leave grant program will be capped at $5 million per year for four years. As more businesses join the program, it will save reduce premium costs for both the state and private sector businesses even after the grant program expires.
Three years ago, Governor Noem proposed and signed SB 186 to cover 60% of the cost of family leave for state employees for up to 8 weeks following the birth or adoption of a child. These proposals together expand those opportunities.
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