HB 329 — State Employee Maternity and Leave Amendments

13-7a-103.13-7a-103 .

Section 3 is enacted to read:

- 3 - HB0329 compared with HB0329S03 53F-5-224.

LEA Optional Paid Leave Reimbursement Program.

(1) This section creates the LEA Optional Paid Leave Reimbursement Program.

(2) (a) Subject to legislative appropriations and this section, the state board shall reimburse an LEA for a cost incurred by the LEA in providing an LEA employee paid leave hours under an optional paid leave policy described in Subsection 53G-11-209(2)(b).

(b) The state board may only issue a reimbursement under Subsection (2)(a) for a cost that is:

(i) described in Subsection (4);

and (ii) incurred by an LEA on or after July 1, 2026, and before July 1, 2029.

(3) An LEA is eligible for reimbursement under this section if the LEA:

(a) adopts an optional paid leave policy described in Subsection 53G-11-209(2)(b);

(b) incurs a cost because an LEA employee has taken paid leave provided to the LEA employee under the optional paid leave policy;

and (c) submits an application for reimbursement to the state board in accordance with rules made by the state board under Subsection (5).

(4) A reimbursement issued under this section may only cover:

(a) a cost incurred above the annual budgeted amount for an LEA employee;

(b) the cost to hire a substitute for a licensed educator with a classroom assignment;

or (c) another cost that is directly attributable to an LEA's provision of optional paid leave under Subsection 53F-11-209(2)(b).

(5) The state board shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing:

(a) application requirements and timelines for reimbursement;

(b) standards for documenting a cost that is eligible for reimbursement under Subsection (4), including documentation sufficient to identify the basis for the paid leave hours for which the cost was incurred;

and (c) procedures for issuing a reimbursement to an LEA.

(6) The state board may not reimburse an LEA for a cost that is:

(a) incurred by the LEA under the mandatory paid leave policy described in Subsection 53F-11-209(2) (a);

or - 4 - HB0329 compared with HB0329S03 (b) incurred by the LEA in providing paid leave hours in excess of the optional paid leave policies described in Subsection 53F-11-209(2)(b).

{Section 4.

Section 53F-9-204 is amended to read:

} 53F-9-204.

Public Education Economic Stabilization Restricted Account.

(1) There is created within the Uniform School Fund a restricted account known as the "Public Education Economic Stabilization Restricted Account." (2) (a) Except as provided in Subsection (2)(b), the account shall be funded from the following revenue sources:

(i) 15% of the difference between, as determined by the Office of the Legislative Fiscal Analyst:

(A) the estimated amount of ongoing Income Tax Fund and Uniform School Fund revenue available for the Legislature to appropriate for the next fiscal year;

and (B) the amount of ongoing appropriations from the Income Tax Fund and Uniform School Fund in the current fiscal year;

and (ii) other appropriations as the Legislature may designate.

(b) If the appropriation described in Subsection (2)(a) would cause the ongoing appropriations to the account to exceed 11% of Uniform School Fund appropriations described in Section 53F-9-201.1 for the same fiscal year, the Legislature shall appropriate only those funds necessary to ensure that the ongoing appropriations to the account equal 11% of Uniform School Fund appropriations for that fiscal year.

(3) Subject to the availability of ongoing appropriations to the account, in accordance with Utah Constitution, Article X, Section 5, Subsection (4), the ongoing appropriation to the account shall be used to fund:

(a) except for a year described in Subsection (3)(b) or (c), one-time appropriations to the public education system, including at least $65,000,000 to the Catalyst Center Grant Program described in Section 53E-3-507.1;

(b) the Minimum School Program for a year in which Income Tax Fund revenue and Uniform School Fund revenue are insufficient to fund:

(i) ongoing appropriations to the public education system;

and (ii) enrollment growth and inflation estimates, as defined in Section 53F-9-201.1;

and - 5 - HB0329 compared with HB0329S03 (c) the minimum basic local amount as defined in Section 53F-2-301 for a year in which the minimum basic tax rate, as defined in Section 53F-2-301, is insufficient to generate the amount described in Subsection 53F-2-301(2)(a).

(4) (a) The account shall earn interest.

(b) All interest earned on account money shall be deposited in the account.

(5) On or before December 31, 2023, and every three years thereafter, the Office of the Legislative Fiscal Analyst shall:

(a) review the percentages described in Subsections (2)(a)(i) and (2)(b);

and (b) recommend to the Executive Appropriations Committee any changes based on the review described in Subsection (5)(a).

(6) In preparing budget bills for a given fiscal year, the Executive Appropriations Committee shall make the one-time appropriations described in Subsection (3)(a) by appropriating at least the lesser of 10% of the total amount of the one-time appropriations to:

(a) the cost of providing 32 paid professional hours for teachers in accordance with Section 53F-7-203;

(b) the amount to make the distribution required un der Section 53F-2-527;

(c) the cost of the Stipends for Future Educators Grant Program described in Section 53F-5-223;

[and] (d) the cost of the Rural School Sports Facilities Grant Program described in Section 53F-10-303[.] ;

and (e) the cost of the LEA Optional Paid Leave Reimbursement Program described in Section 53F-5-224.

(7) No later than October 15 of each year, the state board shall report to the Office of the Legislative Fiscal Analyst an estimated cost for each of the one-time appropriations described in Subsection (6).

Section 3.

53G-11-209.53G-11-209 .

and (ii) is {the adoptive parent of } legally adopting a young child, unless the employee is the spouse of the pre-existing parent.

- 6 - HB0329 compared with HB0329S03 (c) "Child" means an individual younger than 18 years old.

and (ii) is the foster parent of a {young } child.

[(a)] (f)(f)(i) (i) "Paid leave hours" means leave hours an LEA provides to an LEA employee who accrues paid leave benefits in accordance with the LEA's leave policies.

[(b)] (g) "Parental leave" means paid leave hours an LEA provides to a parental leave eligible employee to bond with a child orincapacitatedor incapacitated adult, {in the case of } including a {guardianship appointment, an } child or incapacitated adultforadult for whom the parental leave eligible employee is appointed the legal- guardian.3 - H.B.

329 Enrolled Copy legal guardian.

and[ {[} is:] [(i)] (ii)(ii)(A) (A) is a birth parent as defined in Section 81-13-101;

[(ii)] (B) [legally adopting a minor child, unless the individual] is {the adoptive parent of } legally adopting a child, unless the employee is the spouse of the pre-existing parent;

{[or]}or [(iv)] (D) is appointed the legal guardian of a [minor ]child or incapacitated adult{[.{]}adult. ;

or} {(E) is the foster parent of a child.} [(d)] (i) "Postpartum recovery leave" means [leave hours a state employer] paid leave hours an LEA provides to a postpartum recovery leave eligible employee to recover from childbirth.

- 7 - HB0329 compared with HB0329S03 (i) a parental leave eligible employee;[ {[} or] (ii) a postpartum recovery leave eligible employee[.] ;

(a) [shall develop leave policies that{[}that provide for the use and administration of parental leave and postpartum recovery leave by a qualified employee under this section in a manner that is not more restrictive than the parental and postpartum recovery leave available- to4 state- employeesEnrolled underCopy SectionH.B. 63A-17-511;] shall adopt leave policies that allow:

{(i)329 aavailable parentalto leavestate eligibleemployees employeeunder toSection use63A-17-511;] upshall toadopt threeleave workpolicies weeksthat ofallow: parental leave;

and}(i) {(ii) a postpartumparental recovery leave eligible employee to use up to three work weeks of postpartum recovery leave;} {(b) may develop an optional paid leaveparental policy that provides:} {(i) a postpartum recovery leave eligible employee up to an additional six work weeks of postpartum recovery leave, for a total of up to nine work weeks of postpartum recovery leave;} {(ii) {an adoption leave eligible employee up to nine work weeks of adoption leave;

or} {(iii)} a foster leave eligible employee up to three work weeks of foster leave;} (i) a parental leave eligible employee to use up to three work weeks of paid parental leave;

-(b) 8 - HB0329 compared with HB0329S03 {[(b){]} {(c)} } may develop leave policies that provide a mechanism for leave sharing between employees of the same LEA or school for all types of leave, including[,] sick leave, annual leave, parental leave, [and postpartum recovery leave] postpartum recovery leave, adoption leave, and foster leave;

{[(c){]}(c) {(d)} } shall allow a [parental leave eligible employee and a postpartum recovery leave eligible] qualified employee who is part-time or who works in excess of a 40-hour work week or the equivalent of a 40-hour work week to use the amount of [postpartum[ postpartum recovery leave available] paid leave hours available to the qualified employee under this section on a pro rata basis;

and {[(d){]}(d) {(e)} } shall provide each LEA employee written information regarding:

(i) a qualified employee's right to use [parental leave or ] parental leave, postpartum recovery leave, adoption leave, or foster leave under {[thisthis section;

and{]}and Subsection(ii) (2)(a);} {(ii) if the LEAavailability adoptsof anand optionalprocess leavefor policyusing describedor incontributing Subsection (2)(b), a qualified employee's right to use:}the {(A) additional paid leave hourssharing formechanism postpartumdescribed recoveryin leave;}Subsection {(B)(2)(b). adoption leave;

or}(3) {(C)Except for the amount of paid leave provided under Subsection (2)(a), an LEA shall administer the LEA's parental leave, postpartum recovery leave, adoption leave, and foster leave;leave policies in a manner that is not more restrictive than the parental leave, postpartum recovery leave, adoption leave, and foster leave that is available to a state employee under Section 63A-17-511.

and}[(3)] {[(ii){]}(4) {(iii)}An }LEA themay availabilitynot oftake andretaliatory processaction against a qualified employee for using orparental contributingleave[ toor thepostpartum recovery leave sharing] mechanism, describedpostpartum recovery leave, adoption leave, or foster leave in Subsectionaccordance {[(2)(b){]}with (2)(c)}.this section.

(3)[(4)] Except(5) {withAn respectLEA tomay }not forcharge theparental amountleave[ ofor paidpostpartum recovery leave {hours] described, in } provided under Subsection {(2)(b)} (2)(a), an LEA shall administer the LEA's parental leave, postpartum recovery leave, adoption leave, andor foster leave policiesagainst inpaid aleave mannerhours thatto iswhich nota morequalified restrictiveemployee than the parental leave, postpartum recovery leave, adoption leave, and foster leave that is availableentitled toas adescribed statein employeeSubsection under[(6)] Section(7). 63A-17-511.

[(3)]- (4)5 {An- LEAH.B. that adopts an optional paid leave policy described in Subsection (2)(b) may apply to the state board for reimbursement under Section 53F-5-224.} {[(3)] (5)} An LEA may not take retaliatory action against a qualified employee for using parental leave[ or postpartum recovery leave ] , postpartum recovery leave, adoption leave, or foster leave in accordance with this section.

[(4)]329 (6){(5)}Enrolled Copy [(5)] (6) An LEA or school may notuse chargeleave parentalbank leave[sharing orand postpartumother recoveryefforts leaveto ]mitigate ,incurred postpartumcosts recoveryof leave,compliance adoptionwith leave,this orsection fosterincluding leavecoordinating againstwith paidother leaveLEAs hoursor schools to whichshare aapproaches qualifiedor employeepolicies isdesigned entitledto asfulfill describedthe requirements of this section in Subsectiona [(6)]cost {(8)}effective (7).manner.

-[(6)] 9(7) - HB0329 compared with HB0329S03 [(5)] (7){(6)} An LEA or school may useprovide paid leave bankhours sharingthat andexceeds otherthe effortsbenefits to mitigate incurred costs of compliancethe withstate thisleave section including coordinating with other LEAs or schools to share approaches or policies designeddescribed toin fulfill the requirements of this sectionsection. in a cost effective manner.

[(6)]Section (8){(7)4. {(a)} {[} An LEA may provide }paid {leave }hours {that exceeds the benefits of the state leave policies described in this section{]} Subject to Subsection (8)(b), an LEA may provide paid leave hours that exceed the paid leave hours described in this section}.

{(b) An LEA may not be reimbursed under Section 53F-5-224 for a cost incurred by the LEA in providing paid leave hours to an LEA employee that exceed the paid leave hours described in Subsection (2)(b).} Section 4.

63A-17-511.63A-17-511 .

and (iv) is {the parent of } legally adopting a young child, unless the employee is the spouse of the pre-pre-existing existing parent.

and (iv) is the foster parent of a {young } child.

- 10 - HB0329 compared with HB0329S03 [(b)] (f) "Parental leave" means leave hours a state employer provides to a parental leave eligible employee to bond with a child [or, in the case of a guardianship appointment, an incapacitated adult] or incapacitated adult, including a child or incapacitated adult for whom the parental leave eligible employee is appointed the legal guardian.

[(c)]- (g)6 "Parental- leaveEnrolled eligibleCopy employee"H.B. means an employee of a state employer who, on the date an event described in Subsections (2)(a)(i)(A) through [(D)] (C) occurs:

329 [(c)] (g) "Parental leave eligible employee" means an employee of a state employer who, on the date an event described in Subsections (2)(a)(i)(A) through [(D)] (C) occurs:

and [(vi)] (v)(v)(A) (A) is the child's biological parent;

(C) is [the adoptive parent of] legally adopting the child, unless the employee is the spouse of the pre-pre-existing existing parent;

{(E)} or (E) is appointed the legal guardian of the child or the incapacitated adult;[ or] [(F) is the foster parent of the child.] [(d)] (h) "Postpartum recovery leave" means leave hours a state employer provides to a postpartum recovery leave eligible employee to recover from childbirth that occurs at 20 weeks or greater gestation.

and - 11 - HB0329 compared with HB0329S03 (iv) gives birth to a child.

(ii) a postpartum recovery leave eligible employee;

or (iv)- a7 foster- leaveH.B. eligible employee.

329 Enrolled Copy (iv) a foster leave eligible employee.

and] [(iv) gives birth to a child.] [(g)] (m)(m)(i) (i) "State employer" means:

- 12 - HB0329 compared with HB0329S03 (A) an institute of higher education;

[(h) "Qualified employee" means:] [(i)- a8 parental- leaveEnrolled eligibleCopy employee;H.B.

329 [(i) a parental leave eligible employee;

(2)(2)(a) (a) Except as provided in Subsections [(4) and (5)] (3), (4), (5), and (6), a state employer shall:

or (C) the appointment of legal guardianship of a child or incapacitated adult;[ or] [(D) the {fosterplacement }placement of a {[} foster {]} child in the parental leave eligible employee's care;

{[} and] (ii) allow a postpartum recovery leave eligible employee to use up to [three] {nine} six work weeks of paid postpartum recovery leave for recovery from childbirth[.] ;

(iii) allow an adoption leave eligible employee to use up to {nine } six work weeks of paid adoption leave for the adoption of a young child;

and (iv) allow a foster leave eligible employee to use up to {three } four work weeks of paid foster leave for the foster placement of a {young } child in the foster leave eligible employee's care.

(b) A state employer shall allow a qualified employee who is part-time or who works in excess of a 40-40-hour hour work week or its equivalent to use the amount of [parental leave or postpartum recovery leave ] qualified leave that is available to the qualified employee under this section on a pro rata basis as adopted by rule by the division under Subsection [(12)] {(14)} (15).

(3)(3)(a) (a) Parental leave described in Subsection (2)(a)(i):

- 13 - HB0329 compared with HB0329S03 (i) may not be used before the day on which:

[(D) {[} a foster child is placed in the parental leave eligible employee's care.] (ii) {amay childnot isbe placedused inmore fosterthan caresix withmonths after the parentaldate leavedescribed eligiblein employee;Subsection (3)(a)(i);

(ii) may not be used more than six months after the date described in Subsection (3)(a)(i);

(A)- by9 mutual- writtenH.B. agreement between the state employer and the parental leave eligible employee;

329 Enrolled Copy (A) by mutual written agreement between the state employer and the parental leave eligible employee;

or [(iii) has more than one {[} foster child placed in the parental leave eligible employee's care{]care; child placed in foster care with the parental leave eligible employee};

or [(iii) has more than one {[} foster child placed in the parental leave eligible employee's care{]care; child placed in foster care with the parental leave eligible employee};

-(4)(a) 14 - HB0329 compared with HB0329S03 (4) (a) Postpartum recovery leave described in Subsection (2)(a)(ii):

(iii) and (iii) runs [concurrently] concurrent with any leave authorized under the Family and Medical Leave Act of 1993, 29 U.S.C.

(5)- (a)10 Adoption- leaveEnrolled describedCopy inH.B. Subsection (2)(a)(iii):

329 (5)(a) Adoption leave described in Subsection (2)(a)(iii):

(iv) runs {concurrently } concurrent with any leave authorized under the Family and Medical Leave Act of 1993, 29 U.S.C.

and (v) runs {consecutively } consecutive to parental leavetakenleave taken for the adoption of a child.

(c) An adoption leave eligible employee may not use more than {nine } six work weeks of paid adoption leave within a single 12-month period, regardless of whether during that 12-month period the adoption leave eligible employee adopts more than one young child.

-(d)(i) 15 - HB0329 compared with HB0329S03 (d) (i) If a young child is legally adopted by two adoption leave eligible employeesemployees, {jointly adopt a young child, only one of } , the adoption leave eligible employees {may } are entitled to use a single six-six-work-week work-week period of paid adoption leave under this section, which the employees may allocate between themselves.

(ii) The adoption leave eligible employees described in Subsection (5)(d)(i) shall notify the state employer {which employee will take } that the employees intend to allocate adoption leave under {this section } Subsection (5)(d)(i) no later than the deadline described in Subsection {(7)(a)(i)}(8)(a)(i). (8) (a)(i).

(6)(6)(a) (a) Foster leave described in Subsection (2)(a)(iv):

(i) may not be used before the day on which a {young } child is placed in foster care with a foster leave eligible employee;

(iii){(iv)}- may11 {not- }H.B. be used intermittently{, unless:} ;

and329 {(A)Enrolled {byCopy mutual(iv) writtenmay agreementbe betweenused theintermittently; state employer and the foster leave eligible employee;

or}and }(v) {(B) {a health care provider certifies that intermittent leave is medically necessary due to a serious health condition of the young child;} } (iv){(v)} runs {concurrently } concurrent with any leave authorized under the Family and Medical Leave Act of 1993, 29 U.S.C.

2601 et seq{.;seq.

and}(b) .The amount of foster leave authorized under Subsection (2)(a)(iv) does not increase if a foster leave eligible employee has more than one child placed in foster care with the foster leave eligible employee.

{(v)(c) {runsA consecutivelyfoster toleave parentaleligible leave.}employee }may (b)not Theuse amountmore than four work weeks of paid foster leave authorizedwithin undera Subsectionsingle (2)(a)(iv)12-month doesperiod, notregardless increaseof ifwhether aduring fosterthat leave12-month eligibleperiod employee has more than one {young } child is placed in foster care with the foster leave eligible employee.

(c)(d)(i) AIf fostera leavechild eligibleis employeeplaced mayin notfoster usecare morewith thantwo {threefoster }leave foureligible workemployees, weeksthe of paid foster leaveeligible withinemployees aare singleentitled 12-monthto period,use regardlessa ofsingle whetherfour-work-week during that 12-month period moreof thanpaid onefoster {youngleave }under childthis issection, placedwhich in foster care with the fosteremployees leavemay eligibleallocate employee.between themselves.

(d)(ii) -The 16foster -leave HB0329eligible comparedemployees withdescribed HB0329S03 (i) If a {young } child is placed in fosterSubsection care(6)(d)(i) withshall twonotify fosterthe leavestate eligibleemployer employees,that {only one of } the foster eligible employees {mayintend use } are entitled to useallocate a single four-work-week period of paid foster leave under thisSubsection section,(6)(d)(i) whichno later than the employeesdeadline maydescribed allocatein betweenSubsection themselves.(8)(a)(i).

(ii)(7) TheA fosterqualified leave eligible employees described in Subsection (6)(d)(i) shall notify the state employer {which employee willmay takenot }use: that the employees intend to allocate foster leave under {this section } Subsection (6)(d)(i) no later than the deadline described in Subsection {(7)(a)(i)} (8)(a)(i).

{[(5)] (7)} {(a)} A qualified employee may not use:

[(5)] (8)(8)(a) (a) Except as provided in Subsection [(5)(b)] {(7)(b)} (8)(b), a qualified employee shall give the state employer notice at least 30 days before the day on which the qualified employee plans to:

(b) If circumstances beyond the qualified employee's control, including an emergency foster placement, prevent the qualified employee from giving notice in accordance with Subsection [(5)(a)] {(7)(a)} (8)(a), the qualified employee shall give each notice described in Subsection [(5)(a)] {(7)(a)} (8)(a) as soon as reasonably practicable.

[(6)] (8){(9)}(9) Except as provided in Subsections (3)(a)(iv)[ and ] , (4)(a)(iii), (5)(a)(iv), and {(6)(a)(iv)} (6)(a)(v), a state employer may not charge [parental leave or postpartum recovery leave ] qualified leave under this section against sick, annual, compensatory, excess, or other leave a qualified employee is entitled to.

[(7)]- (9){(10)}12 A- stateEnrolled employerCopy mayH.B. not compensate a qualified employee for any unused [parental leave or postpartum recovery leave] qualified leave upon termination of employment.

[(8)]329 (10){(11)}[(7)] (a)(10) FollowingA thestate expirationemployer ofmay not compensate a qualified employee'semployee [parentalfor leaveany orunused postpartum[ recovery]parental qualified leave underor thispostpartum section,recovery theleave] state employer shall ensure that the qualified employeeleave mayupon returntermination to:of employment.

[(8)] (11)(a) Following the expiration of a qualified employee's [parental leave or postpartum recovery] qualified leave under this section, the state employer shall ensure that the qualified employee may return to:

or - 17 - HB0329 compared with HB0329S03 (ii) a position within the state employer that is equivalent in seniority, status, benefits, and pay to the position that the qualified employee held before using [parental leave or postpartum recovery] qualified leave.

[(9)] (11){(12)}(12) During the time a qualified employee uses [parental leave or postpartum recovery] qualified leave under this section, the qualified employee shall continue to receive all employment related benefits and payments at the same level that the qualified employee received immediately before beginning the [parental leave or postpartum] qualified leave, provided that the qualified employee pays any required employee contributions.

[(10)] (12){(13)}(13) A state employer may not:

[(11)] (13){(14)}(14) A state employer shall provide each employee written information regarding a qualified employee's right to use [parental leave or postpartum recovery] qualified leave under this section.

[(12)] (14){(15)}(15) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall[,] :

(a) [on or before July 1, 2022, ]make rules for the use and administration of parental leave- and13 postpartum- recoveryH.B. leave under this section, including a schedule that provides paid parental leave or postpartum recovery leave for a qualified employee who is part-time or who works in excess of a 40-hour work week on a pro rata basis[.] ;

and329 (b)Enrolled onCopy orleave before July 1, 2026, make rules for the use and administrationpostpartum ofrecovery adoption leave and foster leave under this section, including a schedule that provides paid adoptionparental leave or fosterpostpartum recovery leave for a - 18 - HB0329 compared with HB0329S03 qualified employee who is part-time or who works in excess of a 40-hour work week on a pro rata basis.basis[.] ;

Sectionand .(b) on or before July 1, 2026, make rules for the use and administration of adoption leave and foster leave under this section, including a schedule that provides paid adoption leave or foster leave for a qualified employee who is part-time or who works in excess of a 40-hour work week on a pro rata basis.

FY 2027 Appropriations.

The following sums of money are appropriated for the fiscal year beginning July 1, 2026, and ending June 30, 2027.

These are additions to amounts previously appropriated for fiscal year 2027.

Subsection 7(a).

Operating and Capital Budgets Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the Legislature appropriates the following sums of money from the funds or accounts indicated for the use and support of the government of the state of Utah.

ITEM 1 To State Board of Education - State Board and Administrative Operations From Public Education Economic Stabilization Restricted Account, One-time 3,000,000 Schedule of Programs:

Financial Operations 3,000,000 The Legislature intends that, under the LEA Optional Paid Leave Reimbursement Program described in Section 53F-5-224, the State Board of Education reimburse eligible costs over the three fiscal years beginning on July 1, 2026, and ending on June 30, 2029, and administer the appropriation in a manner that results in approximately equal fiscal-year expenditures over that period.

Effective date.

2-16-26 11:25 AM - 1914 -