B26-0181: Short-Term Disability Insurance Benefit Protection Clarification Amendment Act of 2025

1 ________________________________ ________________________________ 2 Councilmember Robert C. White, Jr. Councilmember Janeese Lewis George 3 4 5 ________________________________ ________________________________ 6 Councilmember Brianne K. Nadeau Councilmember Zachary Parker 7 8 9 ________________________________ 10 Councilmember Charles Allen 11 12 A BILL 13 14 __________________ 15 16 17 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 18 19 __________________ 20 21 To amend the Universal Paid Leave Amendment Act of 2016 to prohibit private disability insurance 22 providers from reducing short-term disability benefits based on actual or estimated paid leave 23 benefits an eligible individual may be entitled to from the District, regardless of the jurisdiction 24 in which the insurance policy was issued or written; and to amend Title I of the Insurance Trade 25 and Economic Development Amendment Act of 2000 to make offsetting or reducing benefits 26 under a short-term disability insurance policy based on estimated or actual benefits received 27 under the Universal Paid Leave Amendment Act of 2016 enforceable under that law, regardless 28 of the jurisdiction in which the insurance policy was issued or written. 29 30 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 31 act may be cited as the “Short-Term Disability Insurance Benefit Protection Clarification 32 Amendment Act of 2025”. 33 Sec. 2. Section 107(j)(1) of the Universal Paid Leave Amendment Act of 2016, effective April 7, 34 2017 (D.C. Law 21-264; D.C. Official Code § 32-541.07(j)(1)), is amended to read as follows: 35 “(1) No insurer may offset or reduce benefits or income available to an eligible individual 36 under an individual or group policy for temporary or short-term disability insurance based on estimated 1

37 or actual benefits the eligible individual may or does receive under this act, regardless of the jurisdiction 38 in which such policy was issued, executed, written, or delivered.”. 39 Sec. 3. Section 120a the Insurance Trade and Economic Development Amendment Act of 2000, 40 effective April 2, 2001 (D.C. Law 13-265; D.C. Official Code § 31-2231.20a), is amended as follows: 41 (a) Subsection (a) is amended to read as follows: 42 “(a) No insurer may offset or reduce benefits or income available to an eligible individual 43 under a temporary or short-term disability insurance policy, based on estimated or actual benefits the 44 eligible individual may or does receive under the subchapter IV of Chapter 5 of Title 32 regardless of in 45 which jurisdiction such policy was executed, written, or delivered.”. 46 (b) Subsection (c) is amended to read as follows: 47 “(c) For the purposes of this section, the term: 48 “(1) “Eligible individual” shall have the same meaning as provided in section 49 101(6) of the Universal Paid Leave Amendment Act of 2016, effective April 7, 2017 (D.C. Law 21-264; 50 D.C. Official Code § 32-541.01(6)). 51 “(2) “Self-insured employer” shall have the same meaning as provided in section 52 101(19A) of the Universal Paid Leave Amendment Act of 2016, effective April 7, 2017 (D.C. Law 21- 53 264; D.C. Official Code § 32-541.01(19A)).”. 54 Sec. 3. Fiscal impact statement. 55 The Council adopts the fiscal impact statement in the committee report as the fiscal impact 56 statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 57 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 58 Sec. 4. Effective date. 2

59 This act shall take effect following approval by the Mayor (or in the event of veto by Mayor, 60 action by the Council to override veto), a 30-day period of congressional review as provided in section 61 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. 62 Official Code § 1–206.02(c)(1)), and publication in the District of Columbia Register. 3