Indiana 2025 Regular Session

Indiana Senate Bill SB0029 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 29
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-3-2-30; IC 22-2-20.
7	7	Synopsis: Voluntary family leave insurance program. Requires the
8	8	department of insurance (department) to establish, not later than
9	9	January 1, 2026, a voluntary family leave insurance program (program)
10	10	for the purpose of providing benefits to employees who elect to
11	11	participate in the program. Sets forth requirements for the program.
12	12	Allows the department to contract with an outside vendor to administer
13	13	the program. Requires the department, not later than November 1,
14	14	2025, to submit a report to the legislative council and the budget
15	15	committee concerning the proposed program. Establishes the voluntary
16	16	family leave insurance program trust fund (trust fund) for the purpose
17	17	of paying program benefits. Provides that the trust fund consists of
18	18	employer or employee contributions, appropriations from the general
19	19	assembly, and money received from any other source. Provides that
20	20	certain employers are entitled to an adjusted gross income tax
21	21	deduction equal to the total amount of contributions made by the
22	22	employer to the trust fund during the taxable year multiplied by 200%.
23	23	Effective: July 1, 2025.
24	24	Randolph Lonnie M, Yoder
25	25	January 8, 2025, read first time and referred to Committee on Insurance and Financial
26	26	Institutions.
27	27	2025 IN 29—LS 6228/DI 141 Introduced
28	28	First Regular Session of the 124th General Assembly (2025)
29	29	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
30	30	Constitution) is being amended, the text of the existing provision will appear in this style type,
31	31	additions will appear in this style type, and deletions will appear in this style type.
32	32	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
33	33	provision adopted), the text of the new provision will appear in this style type. Also, the
34	34	word NEW will appear in that style type in the introductory clause of each SECTION that adds
35	35	a new provision to the Indiana Code or the Indiana Constitution.
36	36	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
37	37	between statutes enacted by the 2024 Regular Session of the General Assembly.
38	38	SENATE BILL No. 29
39	39	A BILL FOR AN ACT to amend the Indiana Code concerning labor
40	40	and safety.
41	41	Be it enacted by the General Assembly of the State of Indiana:
42	42	1 SECTION 1. IC 6-3-2-30 IS ADDED TO THE INDIANA CODE
43	43	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
44	44	3 1, 2025]: Sec. 30. (a) This section applies only to taxable years
45	45	4 beginning after December 31, 2025.
46	46	5 (b) For purposes of this section, "small business" means a
47	47	6 business entity that satisfies the following requirements during the
48	48	7 taxable year:
49	49	8 (1) The business entity employs less than fifty (50) employees
50	50	9 for each working day during each of twenty (20) or more
51	51	10 work weeks in the current or preceding calendar year.
52	52	11 (2) The majority of the employees of the business entity work
53	53	12 in Indiana.
54	54	13 (c) Each taxable year, an employer that:
55	55	14 (1) is a small business;
56	56	15 (2) participates in the voluntary family leave insurance
57	57	16 program established under IC 22-2-20-7; and
58	58	17 (3) pays some or all of an employee's contribution to the
59	59	2025 IN 29—LS 6228/DI 141 2
60	60	1 voluntary family leave insurance program trust fund under
61	61	2 IC 22-2-20-9(b)(1);
62	62	3 is entitled to a deduction from the employer's adjusted gross
63	63	4 income tax for the taxable year.
64	64	5 (d) The amount of the deduction is equal to:
65	65	6 (1) the total amount of the employer's contributions under
66	66	7 subsection (c) made to the voluntary family leave insurance
67	67	8 program trust fund established under IC 22-2-20-9 during the
68	68	9 taxable year; multiplied by
69	69	10 (2) two hundred percent (200%).
70	70	11 SECTION 2. IC 22-2-20 IS ADDED TO THE INDIANA CODE AS
71	71	12 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
72	72	13 1, 2025]:
73	73	14 Chapter 20. Voluntary Family Leave Insurance Program
74	74	15 Sec. 1. As used in this chapter, "Act" refers to the federal
75	75	16 Family and Medical Leave Act of 1993 (29 U.S.C. 2601 et seq.), as
76	76	17 in effect on July 1, 2025.
77	77	18 Sec. 2. As used in this chapter, "department" refers to the
78	78	19 department of insurance created by IC 27-1-1-1.
79	79	20 Sec. 3. As used in this chapter, "employee" means a person who
80	80	21 works directly for another person under an express or implied
81	81	22 contract of hire.
82	82	23 Sec. 4. As used in this chapter, "employer" has the meaning set
83	83	24 forth in IC 6-3-1-5. The term includes the state and its political
84	84	25 subdivisions.
85	85	26 Sec. 5. As used in this chapter, "program" refers to the
86	86	27 voluntary family leave insurance program established under
87	87	28 section 7 of this chapter.
88	88	29 Sec. 6. As used in this chapter, "trust fund" refers to the
89	89	30 voluntary family leave insurance program trust fund established
90	90	31 by section 9 of this chapter.
91	91	32 Sec. 7. (a) Not later than January 1, 2026, the department shall
92	92	33 establish a voluntary family leave insurance program for the
93	93	34 purpose of providing family leave insurance benefits to employees
94	94	35 who elect to participate in the program.
95	95	36 (b) In developing the program described in subsection (a), the
96	96	37 department may request assistance from and coordinate with the
97	97	38 department of labor created by IC 22-1-1-1.
98	98	39 (c) The department shall administer the program.
99	99	40 (d) The department shall adopt rules under IC 4-22-2 necessary
100	100	41 to administer the program.
101	101	42 (e) The department may contract with an outside vendor to
102	102	2025 IN 29—LS 6228/DI 141 3
103	103	1 administer the program.
104	104	2 Sec. 8. The department shall do at least the following in
105	105	3 establishing the program under section 7 of this chapter:
106	106	4 (1) Establish the minimum criteria for voluntary participation
107	107	5 in the program by employees.
108	108	6 (2) Require each employee who elects to participate in the
109	109	7 program to contribute at a rate that is sufficient to fund the
110	110	8 program, including benefits paid and reasonable expenses
111	111	9 incurred. The department shall determine the rates at least
112	112	10 annually.
113	113	11 (3) Provide that an employer may pay some or all of the
114	114	12 employee's contribution.
115	115	13 (4) Require each participating employee to make the
116	116	14 employee's required contributions by payroll deduction.
117	117	15 (5) Establish employee benefit eligibility requirements that
118	118	16 include, at a minimum, the requirements that qualify an
119	119	17 employee for leave under the Act.
120	120	18 (6) Allow an employee the option to select both the benefit
121	121	19 amount and the number of weeks that the benefit will be paid
122	122	20 to the employee under the program. The department may
123	123	21 offer benefit levels of one hundred percent (100%),
124	124	22 seventy-five percent (75%), and fifty percent (50%) of an
125	125	23 employee's salary.
126	126	24 (7) Allow an employer that is exempt from the Act to
127	127	25 participate in the program.
128	128	26 Sec. 9. (a) The voluntary family leave insurance program trust
129	129	27 fund is established for the purpose of paying program benefits
130	130	28 under this chapter. Expenditures from the trust fund may be made
131	131	29 only to carry out the purposes of this chapter. The department
132	132	30 shall administer the trust fund.
133	133	31 (b) The trust fund consists of:
134	134	32 (1) money received by the department from employer or
135	135	33 employee contributions;
136	136	34 (2) appropriations from the general assembly; and
137	137	35 (3) money received from any other source.
138	138	36 (c) The expenses of administering the trust fund shall be paid
139	139	37 from money in the trust fund.
140	140	38 (d) The treasurer of state shall invest the money in the trust
141	141	39 fund not currently needed to meet the obligations of the trust fund
142	142	40 in the same manner as other public money may be invested.
143	143	41 Interest that accrues from these investments shall be deposited at
144	144	42 least quarterly into the trust fund.
145	145	2025 IN 29—LS 6228/DI 141 4
146	146	1 (e) Money in the trust fund at the end of a state fiscal year does
147	147	2 not revert to the state general fund.
148	148	3 Sec. 10. Not later than November 1, 2025, the department shall
149	149	4 submit a report in an electronic format under IC 5-14-6 to the
150	150	5 legislative council and to the budget committee concerning the
151	151	6 department's proposed program, including any legislative changes
152	152	7 needed to implement the program.
153	153	2025 IN 29—LS 6228/DI 141