ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3505

with committee amendments

STATE OF NEW JERSEY

DATED:  SEPTEMBER 23, 2024

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 3505.

      As amended, this bill provides that an employee may take family leave granted by the New Jersey “Family Leave Act” to grieve the loss of a child due to the death of the child, or miscarriage, stillbirth, or termination of a pregnancy for medical reasons.

      The bill also permits leave due to an unsuccessful adoption that had been pending and planned by the employee or due to an unsuccessful fertility treatment, including, but not limited to, intrauterine insemination and assisted reproductive technology.

      As amended, the bill provides that nothing in the bill increases the maximum amount of leave provided by the “Family Leave Act.”

      This bill allows an employee to take family temporary disability leave benefits granted by the “Temporary Disability Benefits Law” to bereave the loss of a child due to the death of the child, or miscarriage, stillbirth, or termination of a pregnancy for medical reasons, if the individual, or the spouse, domestic partner, or civil union partner of the individual, is a biological parent of the child or is a parent of the child pursuant to a valid gestational carrier agreement.  The bill allows an employee to take family temporary disability leave benefits granted by the “Temporary Disability Benefits Law” to bereave an unsuccessful adoption that had been pending and planned by the employee or bereave an unsuccessful fertility treatment, including, but not limited to, intrauterine insemination and assisted reproductive technology.

      As amended, the bill provides that any benefits paid under the bill are payable through family temporary disability leave in accordance with P.L.2008, c.17.  As amended, the bill provides that nothing in the bill increases the maximum benefits available under family temporary disability leave.

      The bill limits leave and benefits for bereavement as follows:

      (1)  For bereavement related to a circumstance for which the employee would not otherwise be eligible for any other kind of disability and family leave and benefits, the employee may take leave and benefits, depending on the circumstances, for not more than 21 days immediately following the date of the event which is the reason for the bereavement.

      (2)  For bereavement related to a circumstance for which the employee would be otherwise eligible for disability or family leave or benefits, depending on the circumstances, the employee may take leave and benefits for not more than seven days immediately following the date of the event which is the reason for the bereavement.

COMMITTEE AMENDMENTS:

      The committee amended the bill to clarify that:

      (1)  any benefits paid under the bill are payable through family temporary disability leave in accordance with P.L.2008, c.17;

      (2)  nothing in the bill increases the maximum amount of leave provided by the “Family Leave Act” or maximum benefits available under family temporary disability leave; and

      (3)  delays the effective date of the bill for one year.

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that the bill will result in an indeterminate increase in annual State expenditures by permitting individuals to newly qualify for family temporary disability leave benefits due to certain events. While the OLS is able to estimate the possible costs associated with certain provisions of the bill, it is unable to estimate how the Family Leave Insurance program will be affected in the aggregate by the proposed eligibility changes to determine the annual State expenditure increase.

      The Family Leave Insurance program is funded entirely through an assessment on workers’ wages, the rate of which is set by the Department of Labor and Workforce Development annually to cover anticipated program expenditures and a reserve requirement. By broadening the scope of who can qualify for benefits under the program, the bill will lead to an indeterminate increase in annual State revenues from higher assessed rates on workers’ wages, all else being equal.