Assembly Bill A10801

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

                                  10801

                          I N  A S S E M B L Y

                              July 20, 2012
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Goodell) --
  read once and referred to the Committee on Insurance

AN ACT to amend the insurance law, the public health  law  and  the  tax
  law,  in  relation  to  establishing the New York state small business
  affordable health care insurance act; to amend  the  New  York  Health
  Care Reform Act of 2000, in relation to the effectiveness thereof; and
  to repeal section 1502-b of the tax law relating to computation of tax
  for captive insurance companies

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

  Section 1. The insurance law is amended by adding a new article 50  to
read as follows:
                               ARTICLE 50
 THE NEW YORK STATE SMALL BUSINESS AFFORDABLE HEALTH CARE INSURANCE ACT
SECTION 5001. SHORT TITLE.
        5002. STATEMENT OF LEGISLATIVE FINDINGS AND INTENT.
        5003. DEFINITIONS.
        5004. REQUIREMENTS OF SMALL BUSINESS HEALTH INSURANCE.
        5005. CORE BENEFITS.
        5006. NOTICE REQUIREMENTS.
        5007. REPORTING REQUIREMENTS.
  S  5001.  SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
"THE NEW YORK STATE SMALL  BUSINESS  AFFORDABLE  HEALTH  CARE  INSURANCE
ACT".
  S  5002. STATEMENT OF LEGISLATIVE FINDINGS AND INTENT. THE LEGISLATURE
HEREBY FINDS THAT NEW YORK STATE HAS A SIGNIFICANT NUMBER  OF  UNINSURED
RESIDENTS.
  THE  LEGISLATURE FURTHER FINDS THAT ALTHOUGH MANY OF THE WORKING UNIN-
SURED AND THEIR DEPENDENTS ARE FOUND IN SMALL  BUSINESSES,  THESE  FIRMS
ARE  INTERESTED  IN PROVIDING HEALTH BENEFITS TO THEIR EMPLOYEES BUT ARE
UNABLE TO AFFORD SUCH COVERAGE BECAUSE OF THE HIGH COST OF  HEALTH  CARE
COVERAGE.    THE  ELIMINATION OF ASSESSMENTS, SURCHARGES AND TAXES UNDER
SECTIONS TWENTY-EIGHT HUNDRED SEVEN-T AND TWENTY-EIGHT  HUNDRED  SEVEN-J
OF  THE  PUBLIC  HEALTH  LAW RESPECTIVELY WILL REDUCE THE COST OF HEALTH

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

                                                           LBD16250-05-2

A. 10801                            2

CARE BY APPROXIMATELY FOUR BILLION DOLLARS THEREBY ALLOWING  MORE  BUSI-
NESSES TO OFFER COVERAGE TO EMPLOYEES.
  THE  LEGISLATURE  RECOGNIZES  THE NEED TO ENABLE AND ENCOURAGE GREATER
NUMBERS OF SMALL EMPLOYERS TO PROVIDE  HEALTH  CARE  COVERAGE  TO  THEIR
EMPLOYEES.
  THE  LEGISLATURE THEREFORE DECLARES IT TO BE IN THE PUBLIC INTEREST TO
ESTABLISH THE SMALL BUSINESS HEALTH INSURANCE PROGRAM TO HELP REDUCE THE
COSTS OF HEALTH INSURANCE.
  S 5003. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "SMALL BUSINESS" MEANS ANY BUSINESS  WHICH  IS  RESIDENT  IN  THIS
STATE,  INDEPENDENTLY  OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD AND
WHICH EMPLOYS FIFTY OR FEWER EMPLOYEES ON A REGULAR BASIS.
  (B) "INSURER" MEANS ANY INSURANCE COMPANY  LICENSED  TO  WRITE  HEALTH
INSURANCE  IN THIS STATE, INCLUDING CORPORATIONS ORGANIZED UNDER ARTICLE
FORTY-THREE OF THIS CHAPTER AND HEALTH MAINTENANCE ORGANIZATIONS AUTHOR-
IZED  PURSUANT  TO  ARTICLE  FORTY-THREE  OF  THIS  CHAPTER  OR  ARTICLE
FORTY-FOUR OF THE PUBLIC HEALTH LAW.
  (C) "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF FINANCIAL SERVICES.
  (D)  "ELIGIBLE EMPLOYEE" MEANS AN EMPLOYEE OF A SMALL BUSINESS WHO HAS
WORKED NINETY DAYS OR MORE AT AN AVERAGE OF THIRTY-FIVE  HOURS  OR  MORE
PER  WEEK.  A  SMALL  BUSINESS  MAY, IN ITS SOLE DISCRETION, REDUCE THIS
REQUIREMENT OF AN EMPLOYEE WORKING AN AVERAGE OF  THIRTY-FIVE  HOURS  OR
MORE  PER WEEK IN ORDER FOR ADDITIONAL EMPLOYEES TO QUALIFY AS AN ELIGI-
BLE EMPLOYEE.  AN ELIGIBLE EMPLOYEE MAY ALSO BE A SOLE PROPRIETOR  OR  A
PARTNER  OF  A  PARTNERSHIP  PROVIDED SUCH SOLE PROPRIETOR OR PARTNER IS
INCLUDED AS AN EMPLOYEE UNDER THE HEALTH CARE PLAN OF  THE  SMALL  BUSI-
NESS.
  S  5004.  REQUIREMENTS  OF  SMALL  BUSINESS  HEALTH INSURANCE. (A) ALL
INSURERS SHALL BE AUTHORIZED TO WRITE SMALL  BUSINESS  HEALTH  INSURANCE
POLICIES FOR QUALIFIED SMALL BUSINESSES TO PROVIDE ONLY SUCH BENEFITS AS
ARE  REQUIRED  BY  SECTION FIVE THOUSAND FIVE OF THIS ARTICLE AND AS MAY
MUTUALLY BE AGREED UPON BETWEEN THE POLICYHOLDER AND THE INSURER.    THE
SUPERINTENDENT  SHALL  ONLY  APPROVE  A POLICY WHICH MEETS THE FOLLOWING
CRITERIA:
  (1) THE POLICY PROVISIONS ARE NOT MISLEADING OR CONFUSING;
  (2) THE POLICY CLEARLY STATES THE  BENEFITS,  LIMITATIONS  AND  EXCLU-
SIONS;
  (3)  THE  BENEFITS PROVIDED BY THE POLICY MEET THE STANDARDS SPECIFIED
IN THIS SECTION AND SECTION FIVE THOUSAND FIVE OF THIS ARTICLE;
  (4) THE PREMIUM RATES ARE REASONABLY RELATED TO THE BENEFITS  PROVIDED
AND ARE SUFFICIENT TO SUPPORT THE POLICY;
  (5)  THE  POLICY PROVISIONS INCLUDE CONVERSION AND CONTINUATION RIGHTS
AS DEFINED IN SUBSECTIONS (E), (M) AND (N) OF SECTION THREE THOUSAND TWO
HUNDRED TWENTY-ONE AND SUBSECTIONS (D), (E)  AND  (G)  OF  SECTION  FOUR
THOUSAND THREE HUNDRED FIVE OF THIS CHAPTER; AND
  (6) THE POLICY PROVIDES BOTH INDIVIDUAL AND, IF ELECTED BY THE EMPLOY-
EE,  FAMILY  COVERAGE.  THE  POLICY SHALL COVER ALL ELIGIBLE SPOUSES AND
DEPENDENT CHILDREN OF  COVERED  EMPLOYEES,  IN  ACCORDANCE  WITH  POLICY
PARTICIPATION  REQUIREMENTS,  EXCEPT  THAT  COVERAGE  MAY  BE WAIVED FOR
SPOUSES AND DEPENDENT CHILDREN WHO HAVE COVERAGE  UNDER  ANOTHER  HEALTH
PLAN.  THE EMPLOYEE SHALL PAY THE ENTIRE PREMIUM COST FOR SUCH DEPENDENT
COVERAGE UNLESS THE EMPLOYER, AT HIS OR HER OPTION, CHOOSES TO  CONTRIB-
UTE TO THE EXPENSE OF SUCH ADDITIONAL PREMIUM.
  (B)  THE PREMIUM FOR A SMALL BUSINESS HEALTH INSURANCE POLICY SHALL BE
PAID BY THE  SMALL  BUSINESS  FROM  THE  EMPLOYER'S  FUNDS,  FROM  FUNDS

A. 10801                            3

CONTRIBUTED  BY  THE INSURED EMPLOYEES OR FROM FUNDS CONTRIBUTED JOINTLY
BY THE EMPLOYER AND THE EMPLOYEE.
  S  5005.  CORE  BENEFITS.  NOTWITHSTANDING ANY PROVISION OF LAW TO THE
CONTRARY, SMALL BUSINESS HEALTH INSURANCE POLICIES  ISSUED  PURSUANT  TO
THIS  ARTICLE  SHALL  NOT  BE SUBJECT TO ANY OTHER MANDATED COVERAGES OR
SERVICES, EXCEPT FOR:
  (A) AMBULATORY CARE AND FOR INPATIENT AND OUTPATIENT ACUTE MEDICAL AND
SURGICAL CARE. THE HOSPITAL AND MEDICAL SERVICES  TO  BE  COVERED  SHALL
INCLUDE, BUT NOT BE LIMITED TO:
  (1) NO LESS THAN THIRTY DAYS HOSPITAL CONFINEMENT;
  (2)  DEDUCTIBLE AND CO-PAYMENT AMOUNTS WHICH MAY BE GREATER THAN THOSE
SPECIFIED IN THE DEPARTMENT REGULATIONS, PROVIDED THAT NO ANNUAL DEDUCT-
IBLE FOR AN INDIVIDUAL SHALL EXCEED ONE THOUSAND  TWO  HUNDRED  DOLLARS,
AND NO ANNUAL DEDUCTIBLE FOR A FAMILY SHALL EXCEED TWO THOUSAND DOLLARS;
AND
  (3)  NO  FEWER  THAN  SIX PHYSICIAN OFFICE VISITS PER YEAR PER COVERED
MEMBER.
  (B) (1) MATERNITY CARE, AS DEFINED IN PARAGRAPH FIVE OF SUBSECTION (K)
OF SECTION THREE THOUSAND TWO HUNDRED TWENTY-ONE AND SUBSECTION  (C)  OF
SECTION FOUR THOUSAND THREE HUNDRED THREE OF THIS CHAPTER;
  (2)  NEWBORN  CARE,  AS  DEFINED IN PARAGRAPH TWO OF SUBSECTION (F) OF
SECTION FOUR THOUSAND TWO  HUNDRED  THIRTY-FIVE  AND  PARAGRAPH  ONE  OF
SUBSECTION (C) OF SECTION FOUR THOUSAND THREE HUNDRED FIVE OF THIS CHAP-
TER;
  (3)  EMERGENCY  MEDICAL  SERVICES,  AS  DEFINED  IN  PARAGRAPH FOUR OF
SUBSECTION (K) OF SECTION THREE  THOUSAND  TWO  HUNDRED  TWENTY-ONE  AND
PARAGRAPH  TWO  OF SUBSECTION (A) OF SECTION FOUR THOUSAND THREE HUNDRED
THREE OF THIS CHAPTER; AND
  (4) MAMMOGRAPHY SCREENING, AS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH
ELEVEN  OF  SUBSECTION  (L)  OF  SECTION  THREE  THOUSAND  TWO   HUNDRED
TWENTY-ONE  AND  PARAGRAPH THREE OF SUBSECTION (P) OF SECTION FOUR THOU-
SAND THREE HUNDRED THREE OF THIS CHAPTER.
  (C) A SMALL BUSINESS HEALTH INSURANCE POLICY ISSUED PURSUANT  TO  THIS
ARTICLE MAY INCLUDE LIMITATIONS ON BENEFITS GREATER THAN THOSE SPECIFIED
IN  THE  DEPARTMENT  REGULATIONS  AND MAY INCLUDE PROVISIONS DESIGNED TO
CONTROL  POLICY  COSTS  AND  ENCOURAGE  COST  EFFECTIVE  UTILIZATION  OF
MEDICALLY  NECESSARY  HEALTH CARE SERVICES. SUCH PROVISIONS MAY INCLUDE,
BUT NEED NOT BE LIMITED TO:
  (1) PREVENTIVE CARE SERVICES;
  (2) PRIOR APPROVAL OF ELECTIVE HOSPITAL ADMISSIONS;
  (3) SECOND SURGICAL OPINIONS;
  (4) UTILIZATION REVIEW OF HEALTH CARE SERVICES;
  (5) USE OF A PREFERRED PROVIDER PLAN, WHICH: (I) LIMITS THE PAYMENT OF
THE BENEFITS TO PROVIDERS OF SERVICES WHO HAVE SIGNED AN AGREEMENT  WITH
THE INSURER, OR ANY INTERMEDIARY ORGANIZATION REPRESENTING THOSE PROVID-
ERS  IN  NEGOTIATIONS  WITH  THE  INSURER,  REGARDING THE AMOUNT OF SUCH
PAYMENTS, OR (II) OFFERS DIFFERENT BENEFITS TO THE PERSON  COVERED  WHEN
PROCURED THROUGH SUCH ORGANIZATION;
  (6) PRE-ADMISSION TESTING; AND
  (7)  ANNUAL AND LIFETIME BENEFIT MAXIMUMS AS DETERMINED BY THE INSURER
AND THE SMALL BUSINESS.
  (D) A SMALL BUSINESS MAY  SELECT  COVERAGE  FOR  ADDITIONAL  BENEFITS,
INCLUDING  BUT  NOT LIMITED TO OPTICAL AND DENTAL CARE, FOR ALL ELIGIBLE
EMPLOYEES AND DEPENDENTS, IF AVAILABLE FROM THE INSURER. THE  PROVISIONS
OF  SUBSECTION (A) OF THIS SECTION MAY, AT THE OPTION OF THE INSURER, BE
APPLIED TO ANY ADDITIONAL BENEFITS FOR WHICH COVERAGE IS PROVIDED.

A. 10801                            4

  (E) ANY MARKETING  OR  ADVERTISING  MATERIAL  UTILIZED  TO  FACILITATE
ENROLLMENT  OR PURCHASE OF A SMALL BUSINESS HEALTH INSURANCE POLICY MUST
BE APPROVED BY THE SUPERINTENDENT AND  MUST  CLEARLY  STATE  WHICH  CORE
BENEFITS  ARE  COVERED AND WHICH ARE NOT. THIS SHALL INCLUDE, BUT NOT BE
LIMITED TO A REQUIREMENT TO LIST ANY STATUTORILY REQUIRED COVERAGE UNDER
SECTIONS  THREE  THOUSAND  TWO HUNDRED TWENTY-ONE OR FOUR THOUSAND THREE
HUNDRED THREE OF THIS CHAPTER WHICH IS NOT COVERED UNDER THE POLICY.
  S 5006. NOTICE REQUIREMENTS. POLICIES APPROVED  FOR  USE  PURSUANT  TO
THIS  ARTICLE  SHALL HAVE PROMINENTLY STAMPED ON THE FACE OF EACH POLICY
AND CERTIFICATE THE FOLLOWING NOTICE: "THIS IS A SMALL BUSINESS  LIMITED
BENEFITS HEALTH INSURANCE POLICY."
  S  5007.  REPORTING  REQUIREMENTS.  THE SUPERINTENDENT MAY ISSUE REGU-
LATIONS TO FACILITATE DATA COLLECTION  CONCERNING  THE  POLICIES  ISSUED
PURSUANT TO THIS ARTICLE AND SHALL REPORT ANNUALLY TO THE LEGISLATURE ON
THE PROGRESS OF POLICIES ISSUED PURSUANT TO THIS ARTICLE.
  S 2. Paragraphs (b), (c) and (d) of subdivision 2 of section 2807-j of
the  public health law, as amended by section 50 of part B of chapter 58
of the laws of 2009, are amended to read as follows:
  (b) The total percentage allowance for each payor, other than  govern-
mental  agencies,  or  health  maintenance  organizations  for  services
provided to subscribers eligible  for  medical  assistance  pursuant  to
title  eleven  of  article  five of the social services law, or approved
organizations for services provided  to  subscribers  eligible  for  the
family health plus program pursuant to title eleven-D of article five of
the  social services law, and other than payments for a patient that has
no third-party coverage in whole or in part for services provided  by  a
designated provider of services, shall be:
  (i)  the  sum  of (A) eight and eighteen-hundredths percent, provided,
however, that for services provided on and after July first,  two  thou-
sand  three,  the  percentage  shall be eight and eighty-five hundredths
percent, and further provided that for services provided  on  and  after
January first, two thousand six, the percentage shall be eight and nine-
ty-five  hundredths  percent,  [and  further] provided that for services
provided on and after April first, two  thousand  nine,  the  percentage
shall  be  nine  and  sixty-three  hundredths percent, PROVIDED THAT FOR
SERVICES PROVIDED ON OR AFTER APRIL FIRST, TWO  THOUSAND  THIRTEEN,  THE
PERCENTAGE  SHALL BE SIX AND FORTY-TWO HUNDREDTHS PERCENT, PROVIDED THAT
FOR SERVICES PROVIDED ON OR AFTER APRIL FIRST,  TWO  THOUSAND  FOURTEEN,
THE  PERCENTAGE  SHALL  BE  THREE AND TWENTY-ONE HUNDREDTHS PERCENT, AND
FURTHER PROVIDED, THAT FOR SERVICES PROVIDED ON OR  AFTER  APRIL  FIRST,
TWO  THOUSAND FIFTEEN, THE PERCENTAGE SHALL BE ZERO plus (B) twenty-four
percent, provided, however, that for services provided on and after July
first, two thousand three, the percentage shall be twenty-five and nine-
ty-seven hundredths percent, and  further  provided  that  for  services
provided  on  and  after January first, two thousand six, the percentage
shall be twenty-six and twenty-six  hundredths  percent,  [and  further]
provided  that for services provided on and after April first, two thou-
sand  nine,  the  percentage  shall  be  twenty-eight  and  twenty-seven
hundredths  percent,  PROVIDED  THAT  FOR  SERVICES PROVIDED ON OR AFTER
APRIL FIRST, TWO THOUSAND THIRTEEN, THE PERCENTAGE SHALL BE EIGHTEEN AND
EIGHTY-FIVE HUNDREDTHS PERCENT, PROVIDED THAT FOR SERVICES  PROVIDED  ON
OR  AFTER  APRIL  FIRST,  TWO THOUSAND FOURTEEN, THE PERCENTAGE SHALL BE
NINE AND FORTY-THREE HUNDREDTHS PERCENT, AND FURTHER PROVIDED, THAT  FOR
SERVICES  PROVIDED  ON  OR  AFTER APRIL FIRST, TWO THOUSAND FIFTEEN, THE
PERCENTAGE SHALL BE ZERO and plus (C) for a specified third-party  payor
as  defined in subdivision one-a of section twenty-eight hundred seven-s

A. 10801                            5

of this article the percentage allowance applicable for a general hospi-
tal for inpatient hospital  services  pursuant  to  subdivision  two  of
section twenty-eight hundred seven-s of this article;
  (ii) unless (A) an election in accordance with paragraph (a) of subdi-
vision five of this section to pay the allowance directly to the commis-
sioner  or  the  commissioner's  designee is in effect for a third-party
payor, and in addition (B) for a specified third-party payor an election
to pay the assessment in accordance with  section  twenty-eight  hundred
seven-t of this article is in effect.
  (c) If an election in accordance with subdivision five of this section
is  in effect for a third-party payor and in addition in accordance with
section twenty-eight hundred seven-t of this  article  for  a  specified
third-party  payor,  the  total  percentage  allowance  factor  shall be
reduced to eight and  eighteen-hundredths  percent,  provided,  however,
that  for  services provided on and after July first, two thousand three
the total percentage allowance factor shall  be  reduced  to  eight  and
eighty-five hundredths percent, [and further] provided that for services
provided  on  and  after  January  first,  two  thousand  six, the total
percentage allowance factor shall be reduced to  eight  and  ninety-five
hundredths  percent,  and further provided that for services provided on
and after April first, two thousand nine, the total percentage allowance
factor shall be reduced  to  nine  and  sixty-three  hundredths  percent
PROVIDED  THAT  FOR SERVICES PROVIDED ON OR AFTER APRIL FIRST, TWO THOU-
SAND THIRTEEN, THE PERCENTAGE SHALL  BE  SIX  AND  FORTY-TWO  HUNDREDTHS
PERCENT,  PROVIDED  THAT  FOR SERVICES PROVIDED ON OR AFTER APRIL FIRST,
TWO THOUSAND FOURTEEN, THE PERCENTAGE  SHALL  BE  THREE  AND  TWENTY-ONE
HUNDREDTHS  PERCENT, AND FURTHER PROVIDED, THAT FOR SERVICES PROVIDED ON
OR AFTER APRIL FIRST, TWO THOUSAND  FIFTEEN,  THE  PERCENTAGE  SHALL  BE
ZERO.
  (d)  The total percentage allowance for payments by governmental agen-
cies, as determined in accordance  with  paragraphs  (a)  and  (a-1)  of
subdivision  one of section twenty-eight hundred seven-c of this article
as in effect on December thirty-first, nineteen hundred  ninety-six,  or
health  maintenance  organizations  for services provided to subscribers
eligible for medical assistance pursuant to title eleven of article five
of the social services  law,  or  approved  organizations  for  services
provided  to  subscribers  eligible  for  the family health plus program
pursuant to title eleven-D of article five of the social  services  law,
shall  be  five  and ninety-eight-hundredths percent, provided, however,
that for services provided on and after July first, two  thousand  three
the  total  percentage allowance shall be six and forty-seven hundredths
percent, and further provided that for services provided  on  and  after
January first, two thousand six, the total percentage allowance shall be
six  and  fifty-four hundredths percent, and [further] provided that for
services provided on and after April first, two thousand nine, the total
percentage allowance shall be seven and four hundredths percent PROVIDED
THAT FOR SERVICES PROVIDED ON OR AFTER APRIL FIRST, TWO  THOUSAND  THIR-
TEEN,  THE  PERCENTAGE  SHALL  BE  SIX AND FORTY-TWO HUNDREDTHS PERCENT,
PROVIDED THAT FOR SERVICES PROVIDED ON OR AFTER APRIL FIRST,  TWO  THOU-
SAND  FOURTEEN,  THE PERCENTAGE SHALL BE THREE AND TWENTY-ONE HUNDREDTHS
PERCENT, AND FURTHER PROVIDED, THAT FOR SERVICES PROVIDED  ON  OR  AFTER
APRIL FIRST, TWO THOUSAND FIFTEEN, THE PERCENTAGE SHALL BE ZERO.
  S  3.  Subdivision  1 of section 138 of chapter 1 of the laws of 1999,
constituting the New York Health Care Reform Act of 2000, as amended  by
section  2  of  part  C of chapter 59 of the laws of 2011, is amended to
read as follows:

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  1. sections 2807-c, 2807-j, 2807-s, and 2807-t of  the  public  health
law,  as  amended by this act, shall expire on December 31, [2014] 2015,
and shall be thereafter effective only in respect to any act done before
such date or action or proceeding arising  out  of  such  act  including
continued  collections  of  funds  from  assessments  and allowances and
surcharges established pursuant to sections 2807-c, 2807-j,  2807-s  and
2807-t of the public health law, and administration and distributions of
funds  from  pools  established  pursuant  to  sections  2807-c, 2807-j,
2807-k, 2807-l, 2807-m, 2807-s, 2807-t, 2807-v and 2807-w of the  public
health law, as amended or added by this act, related to patient services
provided  before  December 31, [2014] 2015, and continued expenditure of
funds authorized for programs and grants until the exhaustion  of  funds
therefor;
  S  4.  Section  2807-t of the public health law is amended by adding a
new subdivision 1-a to read as follows:
  1-A. FINANCING. NOTWITHSTANDING ANY OTHER  PROVISION  OF  LAW  TO  THE
CONTRARY  ALL  ASSESSMENTS AUTHORIZED BY THIS SECTION SHALL BE COLLECTED
IN COMPLIANCE WITH THE PROVISIONS OF THIS SECTION FROM GENERAL HOSPITALS
THROUGH APRIL FIRST, TWO THOUSAND FIFTEEN; THE FISCAL  COSTS  ASSOCIATED
WITH THE OPERATION OF ALL PROGRAMS PREVIOUSLY FUNDED THROUGH THE ASSESS-
MENT  SHALL  BE  FUNDED THROUGH THE SUBMISSION OF FUNDS IN THE EXECUTIVE
BUDGET. THE COMMISSIONER SHALL  DEVELOP  ANY  LEGISLATION  NECESSARY  TO
ACCOMPLISH SUCH CHANGES.
  S 5. Section 1502-b of the tax law is REPEALED.
  S  6.  Subparagraph  (i)  of paragraph 5 of subdivision (f) of section
1515 of the tax law, as amended by section 16 of part FF-1 of chapter 57
of the laws of 2008, is amended to read as follows:
  (i) In the case of a combined return, the tax shall be measured by the
combined entire net income or combined capital of all  the  corporations
included  in  the  return, including any captive REIT or captive RIC. In
computing combined entire net income intercorporate dividends  shall  be
eliminated, in computing combined business and investment capital inter-
corporate  stockholdings  and  intercorporate  bills, notes and accounts
receivable and payable and other intercorporate  indebtedness  shall  be
eliminated  and  in computing combined subsidiary capital intercorporate
stockholdings shall be  eliminated.  No  taxpayer  subject  to  the  tax
imposed  by  section  fifteen  hundred two-a [or section fifteen hundred
two-b] of this article may be required or permitted to be included in  a
combined return.
  S  7.  Paragraph  6 of subsection (a) of section 7008 of the insurance
law, as added by section 146 of part A of chapter 389  of  the  laws  of
1997, is amended to read as follows:
  (6)  refusal  or failure to pay the taxes as required by section seven
thousand twelve of this article [and section fifteen  hundred  two-b  of
the tax law];
  S 8. This act shall take effect immediately; provided however that the
amendments  to  section  2807-j of the public health law made by section
two of this act shall not affect the  expiration  of  such  section  and
shall  be  deemed to expire therewith provided, further, that the amend-
ments to section 2807-t of the public health law made by section four of
this act shall not affect the expiration of such section  and  shall  be
deemed to expire therewith.