HB19-1058 Summary

• Establishes leave savings accounts allowing individuals to contribute up to $5,000 annually of pretax wages for expenses during eligible leave, including childbirth, adoption, foster care, serious health conditions, and military family emergencies.

• Permits employers to make matching contributions to employee leave savings accounts, with both employer and employee contributions deductible from state income tax starting January 1, 2020.

• Imposes a 10% penalty plus recapture of funds withdrawn for unauthorized purposes, except upon account holder's death when recapture applies without penalty.

• Creates a non-refundable state income tax credit for employers paying employees for 6-12 weeks of family leave, with a 50% credit rate for employers with fewer than 50 employees and 25% for those with 50 or more employees, allowing 5-year carryforward.

• Effective 90 days after final adjournment of the 2019 legislative session (August 2, 2019) unless subject to voter approval in November 2020.