Assembly Bill A2681

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2681
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2025
                                ___________
 
 Introduced  by M. of A. BORES -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to requiring  persons  maintain
   minimum essential coverage
 
   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  "health
 PACT (personal accountability for care and treatment) act".
   §  2.  The  tax law is amended by adding a new article 33-C to read as
 follows:
                               ARTICLE 33-C
                         SHARED RESPONSIBILITY TAX
 SECTION 1580. SHARED RESPONSIBILITY TAX.
   § 1580. SHARED RESPONSIBILITY TAX. 1. DEFINITIONS. FOR THE PURPOSES OF
 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "APPLICABLE INDIVIDUAL" SHALL HAVE THE SAME MEANING AS DEFINED  IN
 SECTION 5000A(D) OF THE INTERNAL REVENUE SERVICE CODE OF 1986.
   (B)  "MINIMUM  ESSENTIAL  COVERAGE"  SHALL  HAVE  THE  SAME MEANING AS
 DEFINED IN SECTION 5000A(F) OF THE  INTERNAL  REVENUE  SERVICE  CODE  OF
 1986.
   2.  REQUIREMENT TO MAINTAIN MINIMUM ESSENTIAL COVERAGE. EVERY APPLICA-
 BLE INDIVIDUAL SHALL MAINTAIN MINIMUM ESSENTIAL COVERAGE FOR EACH  MONTH
 BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR.
   3.  SHARED RESPONSIBILITY PAYMENT PENALTY IMPOSED FOR FAILING TO MAIN-
 TAIN MINIMUM ESSENTIAL COVERAGE. AS OF JANUARY FIRST, TWO THOUSAND TWEN-
 TY-SIX, EVERY APPLICABLE INDIVIDUAL REQUIRED TO FILE A  PERSONAL  INCOME
 TAX  RETURN  PURSUANT  TO SECTION SIX HUNDRED ONE OF THIS CHAPTER, SHALL
 INDICATE ON THE RETURN, IN A MANNER TO BE PRESCRIBED BY THE  COMMISSION-
 ER, WHETHER AND FOR WHAT PERIOD OF TIME DURING THE RELEVANT TAX YEAR THE
 INDIVIDUAL  AND SUCH INDIVIDUAL'S SPOUSE AND DEPENDENTS WHO ARE APPLICA-
 BLE INDIVIDUALS WERE COVERED BY MINIMUM ESSENTIAL COVERAGE. IF A  RETURN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04189-01-5
              

 A. 2681                             2
 
 SUBMITTED  PURSUANT  TO THIS SUBDIVISION FAILS TO INDICATE THAT COVERAGE
 WAS IN FORCE OR INDICATES THAT ANY APPLICABLE INDIVIDUALS DID  NOT  HAVE
 COVERAGE  IN FORCE, A SHARED RESPONSIBILITY PAYMENT PENALTY SHALL HEREBY
 BE ASSESSED AS A TAX ON THE RETURN.
   4.  SHARED  RESPONSIBILITY  PAYMENT  PENALTY  CALCULATION.  EXCEPT  AS
 PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, THE SHARED  RESPONSIBILITY
 PAYMENT  PENALTY IMPOSED IN ANY TAXABLE YEAR SHALL BE EQUAL TO A TAXPAY-
 ER'S FEDERAL SHARED RESPONSIBILITY PAYMENT FOR THE TAXABLE YEAR  OF  TWO
 THOUSAND  FIFTEEN  UNDER  SECTION  5000A OF THE INTERNAL REVENUE CODE OF
 1986.
   5. EXCEPTIONS. (A) PENALTY CAP. THE AMOUNT OF THE SHARED  RESPONSIBIL-
 ITY  PAYMENT  PENALTY IMPOSED UNDER THIS SECTION SHALL BE DETERMINED, IF
 APPLICABLE, USING THE STATEWIDE AVERAGE PREMIUM FOR  BRONZE-LEVEL  PLANS
 OFFERED THROUGH THE NY STATE OF HEALTH HEALTH BENEFITS EXCHANGE.
   (B)  HARDSHIP  EXEMPTION DETERMINATIONS. DETERMINATIONS AS TO HARDSHIP
 EXEMPTIONS PURSUANT TO SECTION TWO HUNDRED SIXTY-EIGHT-E OF  THE  PUBLIC
 HEALTH LAW.
   (C)  RELIGIOUS  CONSCIENCE EXEMPTION DETERMINATIONS. DETERMINATIONS AS
 TO RELIGIOUS CONSCIENCE  EXEMPTIONS  PURSUANT  TO  SECTION  TWO  HUNDRED
 SIXTY-EIGHT-E OF THE PUBLIC HEALTH LAW.
   (D)  TAXPAYERS  WITH  GROSS  INCOME  BELOW  STATE FILING THRESHOLD. NO
 PENALTY SHALL BE IMPOSED UNDER THIS SECTION WITH RESPECT TO ANY APPLICA-
 BLE INDIVIDUAL FOR ANY MONTH DURING A CALENDAR YEAR  IF  THE  TAXPAYER'S
 HOUSEHOLD  INCOME FOR THE TAXABLE YEAR IN ACCORDANCE WITH THE PROVISIONS
 OF THE PATIENT PROTECTION AND AFFORDABLE  CARE  ACT  IS  LESS  THAN  THE
 AMOUNT  OF GROSS INCOME REQUIRING THE TAXPAYER TO FILE A RETURN PURSUANT
 TO SECTION SIX HUNDRED ONE OF THIS CHAPTER.
   (E) OUT-OF-STATE RESIDENTS.  NO  PENALTY  SHALL  BE  IMPOSED  BY  THIS
 SECTION  WITH  RESPECT TO ANY APPLICABLE INDIVIDUAL FOR ANY MONTH DURING
 WHICH THE INDIVIDUAL IS A BONA FIDE RESIDENT OF ANOTHER STATE.
   6. ACCOUNT FUND. THE COMMISSIONER IS AUTHORIZED TO WITHHOLD  FROM  ANY
 STATE  TAX  REFUND DUE TO THE TAXPAYER AN AMOUNT EQUAL TO THE CALCULATED
 SHARED RESPONSIBILITY PAYMENT PENALTY AND SHALL PLACE  SUCH  AMOUNTS  IN
 THE  ACCOUNT  OF  THE  NY  STATE  OF HEALTH FUND ESTABLISHED PURSUANT TO
 SECTION TWO HUNDRED SIXTY-EIGHT-G OF THE PUBLIC HEALTH LAW.
   7. DEFICIENCY. IF,  UPON  EXAMINATION  OF  A  TAXPAYER'S  RETURN,  THE
 COMMISSIONER  DETERMINES THERE IS A DEFICIENCY BECAUSE ANY REFUND DUE TO
 THE TAXPAYER IS INSUFFICIENT TO SATISFY THE SHARED RESPONSIBILITY PENAL-
 TY OR BECAUSE THERE WAS NO REFUND DUE, THE TAX ADMINISTRATOR MAY  NOTIFY
 THE  TAXPAYER  OF  THE DEFICIENCY AND INTEREST SHALL ACCRUE ON THE DEFI-
 CIENCY.  ALL MONIES COLLECTED ON THE DEFICIENCY SHALL BE PLACED  IN  THE
 ACCOUNT  OF  THE NY STATE OF HEALTH FUND ESTABLISHED PURSUANT TO SECTION
 TWO HUNDRED SIXTY-EIGHT-G OF THE PUBLIC HEALTH LAW.
   8. APPLICATION OF  FEDERAL  LAW.  THE  SHARED  RESPONSIBILITY  PAYMENT
 PENALTY  SHALL  BE  ASSESSED  AND COLLECTED AS SET FORTH IN THIS CHAPTER
 AND, TO THE EXTENT APPLICABLE, CONSISTENT WITH  REGULATIONS  PROMULGATED
 BY  THE  FEDERAL GOVERNMENT, THE EXCHANGE, AND/OR THE TAX ADMINISTRATOR.
 EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL REFERENCES TO  FEDERAL
 LAW  SHALL  BE  CONSTRUED  AS  REFERENCES TO FEDERAL LAW AS IN EFFECT ON
 DECEMBER FIFTEENTH, TWO THOUSAND SEVENTEEN, INCLUDING  APPLICABLE  REGU-
 LATIONS AND ADMINISTRATIVE GUIDANCE THAT WERE IN EFFECT AS OF THAT DATE.
   9. UNAVAILABILITY OF FEDERAL PREMIUM TAX CREDITS. FOR ANY TAXABLE YEAR
 IN WHICH FEDERAL PREMIUM TAX CREDITS AVAILABLE PURSUANT TO SECTION THIR-
 TY-SIX-B  OF  TITLE TWENTY-SIX OF THE UNITED STATES CODE BECOME UNAVAIL-
 ABLE DUE TO THE FEDERAL GOVERNMENT REPEALING THAT SECTION OR FAILING  TO
 A. 2681                             3
 
 FUND  THE PREMIUM TAX CREDITS, THE SHARED RESPONSIBILITY PAYMENT PENALTY
 UNDER THIS SECTION SHALL NOT BE ENFORCED.
   10. IMPOSITION OF FEDERAL SHARED RESPONSIBILITY PAYMENT. FOR ANY TAXA-
 BLE  YEAR IN WHICH A FEDERAL PENALTY UNDER SECTION 5000A OF THE INTERNAL
 REVENUE CODE OF 1986 IS IMPOSED ON A TAXPAYER IN AN AMOUNT COMPARABLE TO
 THE SHARED RESPONSIBILITY PAYMENT PENALTY ASSESSED UNDER  THIS  SECTION,
 THE STATE PENALTY SHALL NOT BE ENFORCED.
   11.  AGENCY  COORDINATION.  WHERE  APPLICABLE,  THE COMMISSIONER SHALL
 IMPLEMENT THIS SECTION IN CONSULTATION WITH THE COMMISSIONER OF HEALTH.
   § 3. This act shall take effect January 1, 2026. Effective  immediate-
 ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
 necessary for the implementation of this act on its effective  date  are
 authorized to be made and completed on or before such effective date.