Senate Bill S3530

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3530

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 24, 2011
                               ___________

Introduced  by  Sen.  OPPENHEIMER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Labor

AN ACT to amend the labor law and the state finance law, in relation  to
  creating the "fair share health act"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. This act shall be known and may be cited as the "fair share
health act".
  S 2. The labor law is amended by adding a new section 211-b to read as
follows:
  S 211-B. THE FAIR SHARE HEALTH PROGRAM. 1. DEFINITIONS.  FOR  PURPOSES
OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "EMPLOYEE"  MEANS ALL INDIVIDUALS EMPLOYED FULL-TIME OR PART-TIME
DIRECTLY BY AN EMPLOYER.
  (B) "EMPLOYER" MEANS EITHER A NOT-FOR-PROFIT CORPORATION,  AS  DEFINED
IN  SECTION  ONE HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, OR A
FOR-PROFIT CORPORATION, AS DEFINED IN SECTION ONE  HUNDRED  TWO  OF  THE
BUSINESS  CORPORATION  LAW,  EMPLOYING TEN THOUSAND OR MORE EMPLOYEES IN
NEW YORK STATE; PROVIDED, HOWEVER,  THAT  THE  FEDERAL  GOVERNMENT,  THE
STATE  OR  ANOTHER  STATE,  OR  A  POLITICAL SUBDIVISION OF THE STATE OR
ANOTHER STATE ARE NOT INCLUDED IN THE DEFINITION OF EMPLOYER.
  (C) "HEALTH INSURANCE BENEFITS" SHALL  INCLUDE  AMOUNTS  PAID  BY  THE
EMPLOYER  FOR  MEDICAL  CARE,  PRESCRIPTION  DRUGS, VISION CARE, MEDICAL
SAVINGS ACCOUNTS, AND ANY OTHER PAYMENTS MADE TO PROVIDE HEALTH BENEFITS
AS DEFINED IN SECTION 213(D) OF THE INTERNAL REVENUE CODE.
  (D) "OFFICE" MEANS THE STATE DEPARTMENT OF  LABOR  OFFICE  LOCATED  IN
ALBANY.
  (E) "PROGRAM" MEANS THE FAIR SHARE HEALTH PROGRAM.
  2.  DATA  COLLECTION.  (A)  ON OR BEFORE APRIL FIRST OF EACH YEAR, ALL
EMPLOYERS WITH TEN THOUSAND OR MORE EMPLOYEES IN NEW  YORK  STATE  SHALL
PREPARE  AND  SUBMIT  AN  AFFIDAVIT REVIEWED AND SIGNED BY THE PRINCIPAL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06031-01-1
              

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EXECUTIVE OFFICER OR  INDIVIDUAL  PERFORMING  A  SIMILAR  FUNCTION  THAT
STATES  UNDER  PENALTY  OF  PERJURY  THAT THE INFORMATION REQUIRED UNDER
PARAGRAPH (B) OF THIS SUBDIVISION WAS REVIEWED BY SUCH  OFFICER  AND  IS
TRUE  TO  THE  BEST  OF THE SIGNING OFFICER'S KNOWLEDGE, INFORMATION AND
BELIEF.
  (B) THE PRINCIPAL EXECUTIVE OFFICER, AS PROVIDED IN PARAGRAPH  (A)  OF
THIS  SUBDIVISION,  SHALL PROVIDE THE OFFICE WITH THE FOLLOWING INFORMA-
TION:
  (I) THE NUMBER OF EMPLOYEES AS OF A DATE TO BE  SET  ANNUALLY  BY  THE
COMMISSIONER OR HIS OR HER DESIGNEE;
  (II)  THE  AMOUNT  SPENT  BY THE EMPLOYER IN THE IMMEDIATELY PRECEDING
YEAR ON HEALTH INSURANCE BENEFITS FOR ALL EMPLOYEES WORKING  WITHIN  THE
STATE;
  (III) THE PERCENTAGE OF TOTAL WAGES PAID THAT WAS SPENT BY THE EMPLOY-
ER  IN  THE  IMMEDIATELY PRECEDING YEAR ON HEALTH INSURANCE BENEFITS FOR
EMPLOYEES IN THE STATE; AND
  (IV) ANY OTHER INFORMATION THE COMMISSIONER DEEMS NECESSARY TO  IMPLE-
MENT THIS SECTION.
  (C)  WHEN CALCULATING THE PERCENTAGE OF TOTAL WAGES PAID, THE EMPLOYER
MAY EXEMPT THE FOLLOWING:
  (I) WAGES PAID TO ANY EMPLOYEE  IN  EXCESS  OF  THE  MEDIAN  HOUSEHOLD
INCOME IN THE STATE AS PROVIDED BY THE UNITED STATES CENSUS BUREAU; AND
  (II)  WAGES  PAID  TO  AN  EMPLOYEE WHO IS ENROLLED IN OR ELIGIBLE FOR
MEDICARE, OR ITS SUCCESSOR PROGRAM.
  3. REQUIREMENTS. ALL EMPLOYERS WITH TEN THOUSAND OR MORE EMPLOYEES  IN
NEW  YORK  STATE  SHALL CONTRIBUTE TO THE INCREASING COST OF HEALTH CARE
BENEFITS TO PERSONS IN THE STATE.
  (A) FOR-PROFIT EMPLOYERS WHO DO NOT SPEND EIGHT PERCENT OF  THE  TOTAL
WAGES  PAID  TO  EMPLOYEES  IN  THE  STATE ON HEALTH CARE BENEFITS SHALL
CONTRIBUTE THE DIFFERENCE BETWEEN  THE  AMOUNT  SUCH  EMPLOYER  ACTUALLY
SPENDS  ON  HEALTH  CARE  BENEFITS FOR EMPLOYEES AND THE AMOUNT EQUAL TO
EIGHT PERCENT OF THE TOTAL WAGES PAID TO SUCH EMPLOYEES.
  (B) NOT-FOR-PROFIT EMPLOYERS WHO DO NOT SPEND SIX PERCENT OF THE TOTAL
WAGES PAID TO EMPLOYEES IN THE  STATE  ON  HEALTH  CARE  BENEFITS  SHALL
CONTRIBUTE  THE  DIFFERENCE  BETWEEN  THE  AMOUNT  THE EMPLOYER ACTUALLY
SPENDS ON HEALTH CARE BENEFITS FOR EMPLOYEES AND THE AMOUNT EQUAL TO SIX
PERCENT OF THE TOTAL WAGES PAID TO EMPLOYEES.
  (C) SUCH PAYMENTS SHALL BE MADE AS DETERMINED BY THE COMMISSIONER  AND
SHALL BE FORWARDED TO THE FAIR SHARE HEALTH FUND, AS PROVIDED IN SECTION
NINETY-SEVEN-M  OF THE STATE FINANCE LAW. AN EMPLOYER MAY NOT DEDUCT ANY
PAYMENT MADE TO THE STATE UNDER THIS SECTION FROM THE WAGES PAID  TO  AN
EMPLOYEE.
  4.  DUTIES OF THE DEPARTMENT. THE COMMISSIONER SHALL DESIGNATE MEMBERS
OF THE DEPARTMENT TO BE RESPONSIBLE FOR THE FOLLOWING:
  (A) COLLECTION OF THE EMPLOYER DATA REQUIRED  IN  SUBDIVISION  TWO  OF
THIS SECTION;
  (B) VERIFICATION OF EMPLOYERS THAT HAVE TEN THOUSAND OR MORE EMPLOYEES
IN THE STATE;
  (C)  VERIFICATION THAT ALL EMPLOYERS WITH TEN THOUSAND OR MORE EMPLOY-
EES IN THE STATE HAVE MADE THE REQUIRED REPORT UNDER SUBDIVISION TWO  OF
THIS SECTION;
  (D) COLLECTION OF EACH EMPLOYER'S CONTRIBUTIONS TO THE FUND;
  (E)  COLLECTION  OF THE FINES AND PENALTIES AS PROVIDED IN SUBDIVISION
FIVE OF THIS SECTION;
  (F) PREPARATION OF AN ANNUAL REPORT TO BE FORWARDED  TO  THE  GOVERNOR
AND THE LEGISLATURE; AND

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  (G) ANY OTHER DUTIES DEEMED NECESSARY BY THE COMMISSIONER TO IMPLEMENT
THE PROGRAM.
  5. PENALTIES. (A) FAILURE TO FILE AN AFFIDAVIT AS REQUIRED BY SUBDIVI-
SION  TWO  OF THIS SECTION SHALL RESULT IN THE IMPOSITION BY THE COMMIS-
SIONER OF A CIVIL PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR
EACH DAY THAT THE AFFIDAVIT IS NOT TIMELY FILED.
  (B) FAILURE TO MAKE THE PAYMENT REQUIRED UNDER  SUBDIVISION  THREE  OF
THIS  SECTION  SHALL  RESULT  IN THE IMPOSITION BY THE COMMISSIONER OF A
CIVIL PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (C) ALL PENALTIES AND FINES COLLECTED BY THE DEPARTMENT SHALL BE  USED
TO OFFSET THE COST OF ADMINISTRATION AND ENFORCEMENT OF THE PROGRAM.
  S  3. The state finance law is amended by adding a new section 97-m to
read as follows:
  S 97-M. THE FAIR SHARE HEALTH FUND. 1. THERE IS HEREBY ESTABLISHED  IN
THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA-
TION  AND  FINANCE  A SPECIAL REVENUE FUND TO BE KNOWN AS THE FAIR SHARE
HEALTH FUND.
  2. THE FAIR SHARE HEALTH FUND SHALL CONSIST OF MONEYS RECEIVED BY  THE
STATE  PURSUANT TO SECTION TWO HUNDRED ELEVEN-B OF THE LABOR LAW, MONEYS
DONATED OR GIVEN TO THE STATE, AND ALL OTHER MONEYS APPROPRIATED,  CRED-
ITED OR TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE.
  3.  MONEYS  OF  THE  FAIR  SHARE  HEALTH FUND SHALL BE USED TO PROVIDE
HEALTH CARE AND/OR HEALTH COVERAGE TO EMPLOYEES WHO (A) ARE EMPLOYED  BY
EMPLOYERS  THAT ARE REQUIRED TO MAKE PAYMENTS TO THE FUND AND (B) DO NOT
OTHERWISE HAVE HEALTH COVERAGE. FOLLOWING APPROPRIATION BY THE  LEGISLA-
TURE  AND  ALLOCATION  BY THE DIRECTOR OF THE BUDGET, MONEYS OF THE FAIR
SHARE HEALTH FUND SHALL BE MADE AVAILABLE TO  THE  COMMISSIONER  OF  THE
DEPARTMENT OF HEALTH TO FUND THE CARE OR COVERAGE AS REQUIRED HEREIN, IN
ANY MANNER DEEMED APPROPRIATE BY THE COMMISSIONER.
  4. THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE OFFICE OF TEMPO-
RARY AND DISABILITY ASSISTANCE SHALL SUBMIT A REPORT TO THE GOVERNOR AND
THE  LEGISLATURE  BY  JUNE  FIRST NEXT SUCCEEDING THE FIRST YEAR OF FAIR
SHARE HEALTH PROGRAM IMPLEMENTATION AND  ANNUALLY  THEREAFTER  DETAILING
ALL  EXPENDITURES MADE FROM THE FAIR SHARE HEALTH FUND DURING THE PREVI-
OUS YEAR, THE STATUS OF ANY DEMONSTRATION PROJECTS FUNDED BY  THE  FUND,
AND  THE  OFFICE'S PRIORITIES FOR ALLOCATING MONEY FROM THE FUND FOR THE
CURRENT YEAR.
  S 4. The commissioner of the department of labor shall report  to  the
governor, the speaker of the assembly and the temporary president of the
senate  regarding the administration, implementation, and enforcement of
the fair share health program and fund, including recommendations, with-
in one year of the effective date of this act, and annually, thereafter.
1. Such report shall include, but not be limited to:
  (a) The name of each not-for-profit and for-profit employer  with  ten
thousand or more employees in the state;
  (b)  The  employer's  definition  of  full-time employee and part-time
employee;
  (c) The number of full-time employees;
  (d) The number of  full-time  employees  eligible  to  receive  health
insurance benefits;
  (e) The number of full-time employees receiving health insurance bene-
fits from the employer;
  (f)  The  source of health insurance benefits for those eligible full-
time employees  not  receiving  health  insurance  benefits  through  an
employer subject to reporting under this act;
  (g) The number of part-time employees;

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  (h)  The  number  of  part-time  employees  eligible to receive health
insurance benefits;
  (i) The number of part-time employees receiving health insurance bene-
fits from the employer; and
  (j)  The  source of health insurance benefits for those eligible part-
time employees  not  receiving  health  insurance  benefits  through  an
employer subject to reporting under this act.
  2.  The  information required in subdivision one of this section shall
be reported by the employers on the same date as of the date set by  the
commissioner  of the department of labor in paragraph (b) of subdivision
2 of section 211-b of the labor law.
  S 5. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the collection of data, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act  on  its
effective  date  are authorized and directed to be made and completed on
or before such effective date.