Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 26, 2025

 

S. 11

 

Introduced by Senators Jackson and Davis

 

S. Printed 3/26/25--S.

Read the first time January 14, 2025

 

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The committee on Senate Finance

To whom was referred a Bill (S. 11) to amend the South Carolina Code of Laws by amending Section 8-11-150(a), relating to paid parental leave, so as to amend the definition of "eligible state employee", etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, SECTION 1, by striking Section 8-11-150(A)(2) and inserting:

       (2) "Eligible state employee" means an employee occupying any percentage of a full-time equivalent position any person employed full-time by this State, its departments, agencies, or institutions, including any person employed full-time by a four-year or postgraduate institution of higher education under the control of the State or a technical college supported and under the control of the State by any department, institution, commission, board or any other unit of government of this State who occupies a position eligible to earn annual leave. This includes any person employed by a four-year or postgraduate institution of higher education under the control of the State or a technical college supported and under the control of the State who occupies a position eligible to earn annual leave.

Amend the bill further, by striking SECTION 2 and inserting:

SECTION 2.  This act takes effect upon approval by the Governor.This act takes effect on October 1, 2025, and applies to qualifying events occurring thereon or after.

Renumber sections to conform.

Amend title to conform.

 

HARVEY PEELER for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill as amended changes the definition of eligible state employee in §8-11-150 for the purposes of paid parental leave.  The bill specifies that any state employee who occupies a position eligible to earn annual leave, including those employed by a four-year or postgraduate state institution of higher learning or state technical college, is eligible for paid parental leave of six or two weeks for the birth or placement of a foster child.  Currently, eligible employee is defined as an employee occupying any percentage of a full-time equivalent position.  DSHR reports that this change will extend paid family leave for the birth or placement of a child to employees in time-limited and temporary grant positions.  Additionally, the bill as amended takes effect on October 1, 2025.

 

DSHR reports that 958 state employees utilized paid parental leave in 2024 for the birth or placement of a child.  State agencies expend appropriated funds for employee salaries when an employee is at work or on paid leave.  Under the amended bill's revised definition, newly eligible employees would not be required to use accrued sick and annual leave or unpaid leave available under the federal Family and Medical Leave Act (FMLA) and instead would use paid parental leave for qualifying events.  This change would allow those employees to retain an additional six or two weeks of accrued leave they may have otherwise used.  Agencies and institutions may face additional personnel needs associated with managing the workload of employees taking paid parental leave under the new definition.  As such, agencies and institutions may experience an increase in expenditures if it is necessary to hire temporary employees or offer current employees a temporary salary increase to manage the workload resulting from newly eligible employees using paid parental leave under the bill as amended.

 

When an employee separates from state employment, they forfeit accrued sick leave but are paid up to 45 days of unused annual leave.  Newly eligible employees would be able to retain annual leave that may have otherwise been used.  As such, agencies may experience an increase in expenses resulting from leave payouts to employees accruing additional leave if an employee separates from covered employment.  DSHR reports that in FY 2023-24, of the 958 employees who used paid parental leave, 112 separated from employment immediately thereafter, 94 of which were owed annual leave payout in the total amount of $139,457.  Of the 94 employees, 2 had accrued the maximum annual leave carryforward amount of 45 days.

 

The total impact of this amended bill will vary depending on the number of newly eligible employees that use parental leave, the ability for the agency or institution to manage the workload while employees are using the parental leave, and any additional leave payout that is required due to the changes.  As this will vary widely by agency and institution, the impact of this bill as amended is undetermined.

 

This amended bill is not expected to have an expenditure impact on DSHR to implement the changes, as the management of the revised definition of eligible state employee is expected to take place under normal agency operations.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 8-11-150(A), RELATING TO PAID PARENTAL LEAVE, SO AS TO AMEND THE DEFINITION OF "ELIGIBLE STATE EMPLOYEE".

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 8-11-150(A) of the S.C. Code is amended to read:

 

    (A) For the purposes of this section:

       (1) "Child" means a newborn biological child or foster of a child in state custody and under the age of eighteen.  No child can have more than two parents eligible for paid parental leave.

       (2) "Eligible state employee" means an employee occupying any percentage of a full-time equivalent position any person employed full-time by this State, its departments, agencies, or institutions, including any person employed full-time by a four-year or postgraduate institution of higher education under the control of the State or a technical college supported and under the control of the State.

       (3) "Paid parental leave" means six weeks of paid leave at one hundred percent of the eligible state employee's base pay or two weeks of paid leave at one hundred percent of the eligible state employee's base pay.  Leave for part-time eligible state employees must be on a prorated basis corresponding to the percentage of hours they are normally scheduled to work.

       (4) "Qualifying event" means the birth of a newborn biological child to an eligible state employee or after a co-parent's birth of a newborn child or fostering a child in state custody.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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