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LD 1400

An Act To Exempt Certain Public School Districts And Their Employees From The Paid Family And Medical Leave Benefits Program

132nd Legislature (2025-2026) Introduced by Nathan Carlow and 2 co-sponsors

Exempts certain Maine public school districts and agricultural employers/employees from the PFML program if benefits are substantially equivalent, reducing contributions.

Placed in Legislative Files (DEAD)
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Bill Summary · LD 1400

Summary of LD 1400: An Act To Exempt Certain Public School Districts And Their Employees From The Paid Family And Medical Leave Benefits Program

Overview

LD 1400 proposes to exempt certain public school districts and their employees from Maine’s Paid Family and Medical Leave (PFML) Benefits Program, aligning with districts that provide substantially equivalent benefits. The bill also extends the same exemption to agricultural employers and employees. The bill is currently listed as DEAD (placed in Legislative Files).

  • Bill number: LD 1400
  • Title: An Act To Exempt Certain Public School Districts And Their Employees From The Paid Family And Medical Leave Benefits Program
  • Introduced: April 1, 2025
  • Status: Dead (placed in Legislative Files)
  • Committee: Labor

Purpose and Intent

  • To relieve selected public school districts and agricultural employers/employees from participating in Maine’s PFML program when they offer substantially equivalent benefits.
  • Aimed at reducing payroll contributions to the PFML Insurance Fund by exempting groups whose benefits are deemed equivalent to PFML.

Key Provisions

  • Exemption criteria:
    • Public school districts that provide substantially equivalent PFML benefits.
    • Agricultural employers and employees that provide substantially equivalent benefits.
  • Administrative/financial effects:
    • Exempts the above groups from PFML requirements, reducing contributions to the PFML Insurance Fund.
    • One-time allocation of $60,000 (FY 2025-26) to the Department of Labor for calculating and refunding contributions paid into the PFML Fund by exempted districts and agricultural employers/employees.
  • Ongoing impact:
    • Estimated ongoing reduction in PFML Insurance Fund contributions:
    • FY 2025-26: approximately $6.8 million
    • FY 2026-27 and each subsequent year: approximately $27.2 million per year (through at least FY 2028-29, per the fiscal note)

Fiscal Impact (as per Fiscal Note, revised 05/13/25)

  • Appropriations/Allocations:
    • Paid Family and Medical Leave Insurance Fund: $60,000 (FY 2025-26) for administrative costs related to calculating and refunding contributions from exempted entities.
  • Revenue (to PFMLI Fund):
    • FY 2025-26: -$6,800,000
    • FY 2026-27: -$27,200,000
    • FY 2027-28: -$27,200,000
    • FY 2028-29: -$27,200,000

Affected Parties

  • Public school districts meeting the “substantially equivalent benefits” criterion.
  • Public school district employees within those exempted districts.
  • Agricultural employers and their agricultural employees meeting the exemption criteria.
  • Maine Department of Labor (administrative role for refunds and calculations).

Implementation and Timeline

  • Process timeline:
    • 2025-04-01: Referred to the Committee on Labor.
    • 2025-04-01: Sent for concurrence; ordered sent forthwith.
    • 2025-05-07: Work session; vote recorded (Divided Report).
    • 2025-06-04: Reported Out (ONTP/OTP-AM).
    • 2025-06-05: Majority Ought Not to Pass Report ACCEPTED in concurrence; placed in Legislative Files (DEAD).
  • Legislative actions indicate the bill progressed through hearings and reports but ultimately did not advance.

Significance and Observations

  • The fiscal note indicates substantial anticipated savings to the PFML Insurance Fund if exemptions for school districts and agricultural employers/employees are enacted.
  • The bill would require administrative work by the Department of Labor to calculate refunds for contributions paid by exempted groups and to issue refunds, supported by a one-time $60,000 allocation.
  • As currently dead, the bill did not become law and would require future legislative action to reintroduce similar exemptions.

This summary presents the core purpose, provisions, fiscal impact, affected parties, and the legislative trajectory to help readers understand what LD 1400 sought to change and its potential effects.

Compiled from official sources — confirm details with the bill’s official record.

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