S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1644
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by M. of A. PERRY -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law and the state finance law,  in  relation  to
   imposing  a  tax  on health maintenance organizations and creating the
   medical malpractice relief fund

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new article 33-C to read
 as follows:
                               ARTICLE 33-C
                  TAX ON HEALTH MAINTENANCE ORGANIZATIONS
 SECTION 1580. DEFINITION.
         1581. IMPOSITION OF TAX.
         1582. DEPOSIT AND DISPOSITION OF REVENUE.
   §  1580.  DEFINITION. FOR THE PURPOSE OF THIS ARTICLE, "HEALTH MAINTE-
 NANCE ORGANIZATION" MEANS ANY  PERSON,  NATURAL  OR  CORPORATE,  OR  ANY
 GROUPS  OF SUCH PERSONS WHO ENTER INTO AN ARRANGEMENT, AGREEMENT OR PLAN
 OR ANY COMBINATION OF ARRANGEMENTS OR PLANS WHICH PROPOSE TO PROVIDE  OR
 OFFER,  OR  WHICH  DO  PROVIDE OR OFFER, A COMPREHENSIVE HEALTH SERVICES
 PLAN PURSUANT TO ARTICLE FORTY-FOUR OF THE PUBLIC HEALTH LAW.
   § 1581. IMPOSITION OF TAX. THERE IS HEREBY IMPOSED ON ANY HEALTH MAIN-
 TENANCE ORGANIZATION ESTABLISHED PURSUANT TO ARTICLE FORTY-FOUR  OF  THE
 PUBLIC  HEALTH  LAW  AND  AUTHORIZED  TO TRANSACT BUSINESS IN THIS STATE
 UNDER A CERTIFICATE OF AUTHORITY FROM THE  SUPERINTENDENT  OF  FINANCIAL
 SERVICES  A  TAX AT THE RATE OF BETWEEN ONE HALF PERCENT AND ONE PERCENT
 OF THE REPORTED PROFITS EACH FISCAL YEAR. THE COMMISSIONER, IN  CONJUNC-
 TION  WITH  THE  SUPERINTENDENT  OF  FINANCIAL SERVICES SHALL PROMULGATE
 RULES AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION OF THIS  SECTION.
 NOTHING  IN  THIS  ARTICLE  MODIFIES  OR  ABROGATES ANY PROVISION OF THE
 INSURANCE LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04885-01-1
              

 A. 1644                             2
 
   § 1582. DEPOSIT AND DISPOSITION OF REVENUE. ALL  TAXES,  INTEREST  AND
 PENALTIES  COLLECTED  OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTICLE
 SHALL BE DEPOSITED INTO THE MEDICAL MALPRACTICE RELIEF FUND PURSUANT  TO
 SECTION NINETY-SEVEN-UUUU OF THE STATE FINANCE LAW.
   §  2. The state finance law is amended by adding a new section 97-uuuu
 to read as follows:
   § 97-UUUU. MEDICAL MALPRACTICE RELIEF FUND. 1. THERE IS HEREBY  ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
 ER  OF  TAXATION  AND  FINANCE A SPECIAL REVENUE FUND TO BE KNOWN AS THE
 "MEDICAL MALPRACTICE RELIEF FUND".
   2. SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED FROM TAXES  ASSESSED
 ON  HEALTH  MAINTENANCE ORGANIZATIONS PURSUANT TO ARTICLE THIRTY-THREE-C
 OF THE TAX LAW.
   3. MONEYS IN THE FUND SHALL BE KEPT SEPARATELY FROM AND SHALL  NOT  BE
 COMMINGLED  WITH  ANY  OTHER  MONEYS  IN  THE CUSTODY OF THE STATE COMP-
 TROLLER.
   4. MONEYS IN THE ACCOUNT, FOLLOWING APPROPRIATION BY THE  LEGISLATURE,
 SHALL  BE  EXPENDED  BY THE SUPERINTENDENT OF FINANCIAL SERVICES FOR THE
 PURPOSE OF PROVIDING RELIEF TO HEALTH CARE PRACTITIONERS BY REDUCING THE
 INCREASING COSTS OF MEDICAL MALPRACTICE INSURANCE.
   § 3. This act shall take effect April 1, 2022.  Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.