S. 8157--A 2
directly increase the cost of health insurance, and are counterproduc-
tive to the public policy objective of making health insurance as
affordable as possible. Even worse, these taxes are levied in a horribly
unfair manner. They are levied on employees and their employers who are
doing the right thing by providing employer-based health benefits.
Employers who provide no health benefits to hourly workers, including
some of the largest employers in the state, pay nothing.
It is therefore the intent of the legislature that these HCRA taxes be
repealed and replaced so as to maintain the revenue needed to continue
all of the public goods services currently provided under HCRA (includ-
ing but not limited to indigent care grants, subsidies to medical malp-
ractice insurers, and the creation of a diverse pool of physicians in
training), as well as subsidies toward the state share of Medicaid
payments currently provided through HCRA. Repeal of the current HCRA
taxes may only occur in connection with the preservation of all the
public goods and maintenance of the currently budgeted subsidy to the
state share of Medicaid.
§ 3. Subparagraph (i) of paragraph (b) and paragraphs (c), (d) and (e)
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:
(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, AND PROVIDED THAT FOR
SERVICES PROVIDED ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY-SIX, THE
PERCENTAGE SHALL BE ZERO PERCENT, 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 ninety-seven
hundredths percent, and further provided that for services provided on
and after January first, two thousand six, the percentage shall be twen-
ty-six and twenty-six hundredths percent, and further provided that for
services provided on and after April first, two thousand nine, the
percentage shall be twenty-eight and twenty-seven hundredths percent,
AND PROVIDED THAT FOR SERVICES PROVIDED ON AND AFTER APRIL FIRST, TWO
THOUSAND TWENTY-SIX, THE PERCENTAGE SHALL BE ZERO PERCENT, and plus (C)
for a specified third-party payor as defined in subdivision one-a of
section twenty-eight hundred seven-s of this article the percentage
allowance applicable for a general hospital for inpatient hospital
services pursuant to subdivision two of section twenty-eight hundred
seven-s of this article;
(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
S. 8157--A 3
and after April first, two thousand nine, the total percentage allowance
factor shall be reduced to nine and sixty-three hundredths percent, AND
FURTHER PROVIDED THAT FOR SERVICES PROVIDED ON AND AFTER APRIL FIRST,
TWO THOUSAND TWENTY-SIX, THE TOTAL PERCENTAGE ALLOWANCE FACTOR SHALL BE
ZERO PERCENT.
(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, AND
FURTHER PROVIDED THAT FOR SERVICES PROVIDED ON AND AFTER APRIL FIRST,
TWO THOUSAND TWENTY-SIX, THE TOTAL PERCENTAGE ALLOWANCE SHALL BE ZERO
PERCENT, EXCEPT THAT AN ENTITY COVERED BY PARAGRAPH A OF SUBDIVISION ONE
OF SECTION TWENTY-EIGHT HUNDRED SEVEN-C OF THIS ARTICLE MAY CHOOSE
WHETHER TO APPLY SURCHARGES AND ASSESSMENTS PURSUANT TO THIS SECTION TO
ITS OWN HEALTH BENEFITS AND SERVICES PROVIDED FOR ITS OWN EMPLOYEES AND
THEIR COVERED LIVES OR TO 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.
(e) The total percentage allowance for payments for services provided
by designated providers of services for which there is no third-party
coverage in whole or in part shall be eight and eighteen-hundredths
percent, provided, however, that for services provided on and after July
first, two thousand three the total percentage allowance shall be 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 shall be 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 shall be
nine and sixty-three hundredths percent, AND FURTHER PROVIDED THAT FOR
SERVICES PROVIDED ON AND AFTER APRIL FIRST, TWO THOUSAND TWENTY-SIX, THE
TOTAL PERCENTAGE ALLOWANCE SHALL BE ZERO PERCENT. This paragraph shall
not apply to patient deductibles and coinsurance amounts.
§ 4. Subparagraph (iv) of paragraph (c) of subdivision 2 of section
2807-s of the public health law, as added by section 21 of part A of
chapter 58 of the laws of 2007, is amended to read as follows:
(iv) The regional percentage allowance for [periods on and after] July
first, two thousand seven THROUGH MARCH THIRTIETH, TWO THOUSAND TWENTY-
SIX, for all general hospitals in the region applicable to specified
third-party payors, and applicable to related patient coinsurance and
deductible amounts, shall be the same regional percentage allowance
S. 8157--A 4
calculated pursuant to subparagraph (iii) of this paragraph for the
period January first, two thousand six through June thirtieth, two thou-
sand seven.
§ 5. The tax law is amended by adding a new section 1510-a to read as
follows:
§ 1510-A. PUBLIC GOODS AND MEDICAID SUBSIDY SURCHARGE ON INSURANCE
CORPORATIONS. (A) BEGINNING ON APRIL FIRST, TWO THOUSAND TWENTY-SIX AND
EXPIRING ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-NINE, IN ADDITION TO
ANY TAXES IMPOSED ON INSURANCE CORPORATIONS PURSUANT TO SECTION FIFTEEN
HUNDRED TEN OF THIS ARTICLE, AND EXCEPT AS HEREINAFTER PROVIDED, FOR
TAXABLE YEARS BEGINNING JANUARY FIRST, TWO THOUSAND TWENTY-SIX, EVERY
DOMESTIC INSURANCE CORPORATION, EVERY FOREIGN INSURANCE CORPORATION, AND
EVERY ALIEN INSURANCE CORPORATION, OTHER THAN SUCH CORPORATIONS TRANS-
ACTING THE BUSINESS OF LIFE INSURANCE, WHICH ARE (1) AUTHORIZED TO TRAN-
SACT BUSINESS IN THIS STATE UNDER A CERTIFICATE OF AUTHORITY FROM THE
SUPERINTENDENT OF FINANCIAL SERVICES OR (2) A RISK RETENTION GROUP AS
DEFINED IN SUBSECTION (N) OF SECTION FIVE THOUSAND NINE HUNDRED TWO OF
THE INSURANCE LAW, SHALL, TO SUPPORT THE PROVISION OF PUBLIC GOODS
PROVIDED FOR IN SECTIONS TWENTY-EIGHT HUNDRED SEVEN-L, TWENTY-EIGHT
HUNDRED SEVEN-M, AND TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH
LAW, TO SUPPORT THE STATE SHARE OF MEDICAID AND FOR THE PRIVILEGE OF
EXERCISING CORPORATE FRANCHISES OR FOR CARRYING ON BUSINESS IN A CORPO-
RATE OR ORGANIZED CAPACITY WITHIN THIS STATE, AND IN ADDITION TO ANY
OTHER TAXES IMPOSED FOR SUCH PRIVILEGE, PAY A SURCHARGE ON THE TAX
LIABILITY OWED FOR ALL GROSS DIRECT PREMIUMS, LESS RETURN PREMIUMS THER-
EON, WRITTEN ON RISKS LOCATED OR RESIDENT IN THIS STATE.
(B) (1) THE RATE OF THE SURCHARGE IMPOSED BY THIS SECTION SHALL BE
THIRTY-SIX AND TWO-TENTHS PERCENT ON THE TAX LIABILITY OWED FOR ALL
GROSS DIRECT PREMIUMS, LESS RETURN PREMIUMS THEREON, WRITTEN ON RISKS
LOCATED OR RESIDENT IN THIS STATE, PROVIDED, HOWEVER, THAT ON AND AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, THE SURCHARGE PERCENTAGE SHALL
BE FORTY-THREE PERCENT, AND FURTHER PROVIDED THAT ON AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-EIGHT, THE SURCHARGE PERCENTAGE SHALL BE
FIFTY-FIVE PERCENT.
(2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVI-
SION, FOR ANY EMPLOYER SUBJECT TO THE SURCHARGE PURSUANT TO THIS SECTION
THAT CONTRIBUTES FOR EMPLOYEE HEALTH BENEFITS, AND WHERE THE EMPLOYEE
COST OF THE HEALTH BENEFIT PLAN DOES NOT EXCEED AN AFFORDABLE EMPLOYEE
CONTRIBUTION FOR HEALTH BENEFITS AS DEFINED IN THE AFFORDABLE CARE ACT
AND IMPLEMENTING REGULATIONS AND AS MODIFIED ANNUALLY BY THE FEDERAL
INTERNAL REVENUE SERVICE, THE RATE OF SURCHARGE SHALL INSTEAD BE EIGH-
TEEN AND FOUR-TENTHS PERCENT, PROVIDED, HOWEVER, THAT ON AND AFTER JANU-
ARY FIRST, TWO THOUSAND TWENTY-SEVEN, THE SURCHARGE PERCENTAGE SHALL BE
SEVENTEEN PERCENT, AND FURTHER PROVIDED THAT ON AND AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-EIGHT, THE SURCHARGE PERCENTAGE SHALL BE FOURTEEN
AND FIVE-TENTHS PERCENT.
§ 6. The tax law is amended by adding a new section 220 to read as
follows:
§ 220. PUBLIC GOODS AND MEDICAID SUBSIDY SURCHARGE ON BUSINESS CORPO-
RATIONS. 1. EXCEPT FOR (A) EMPLOYERS OF FEWER THAN FIFTY EMPLOYEES OR
FULL TIME EQUIVALENTS IN A CALENDAR YEAR WHERE SUCH EMPLOYERS ARE NOT
"CONTRACTORS" ENGAGED IN "CONSTRUCTION" AS SUCH TERMS ARE DEFINED IN
ARTICLE TWENTY-FIVE-B OF THE LABOR LAW, AND (B) "CONTRACTORS" ENGAGED IN
"CONSTRUCTION", AS SUCH TERMS ARE DEFINED IN ARTICLE TWENTY-FIVE-B OF
THE LABOR LAW, WHOSE GROSS REVENUE IS LESS THAN FIVE MILLION DOLLARS
ANNUALLY, BEGINNING ON APRIL FIRST, TWO THOUSAND TWENTY-SIX AND EXPIRING
S. 8157--A 5
ON MARCH THIRTY-FIRST, TWO THOUSAND TWENTY-NINE, AND AS HEREINAFTER
PROVIDED, FOR TAXABLE YEARS BEGINNING JANUARY FIRST, TWO THOUSAND TWEN-
TY-SIX, AND EXCEPT FOR CORPORATIONS TAXED PURSUANT TO SECTION FIFTEEN
HUNDRED TEN-A OF THIS CHAPTER, EVERY DOMESTIC CORPORATION, EVERY FOREIGN
CORPORATION AND EVERY ALIEN CORPORATION AUTHORIZED TO TRANSACT BUSINESS
IN THIS STATE UNDER A CERTIFICATE OF AUTHORITY FROM THE SECRETARY OF
STATE SHALL, TO SUPPORT THE PROVISION OF PUBLIC GOODS PROVIDED FOR IN
SECTIONS TWENTY-EIGHT HUNDRED SEVEN-L, TWENTY-EIGHT HUNDRED SEVEN-M, AND
TWENTY-EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH LAW, TO SUPPORT THE
STATE SHARE OF MEDICAID AND FOR THE PRIVILEGE OF EXERCISING CORPORATE
FRANCHISES OR FOR CARRYING ON BUSINESS IN A CORPORATE OR ORGANIZED
CAPACITY WITHIN THIS STATE, AND IN ADDITION TO ANY OTHER TAXES IMPOSED
FOR SUCH PRIVILEGE, PAY A FRANCHISE TAX SURCHARGE, UPON THE BASIS OF ITS
BUSINESS INCOME BASE, OR UPON SUCH OTHER BASIS AS MAY BE APPLICABLE AS
PROVIDED BY THIS ARTICLE.
2. (A) IN ADDITION TO ANY TAX IMPOSED, THERE SHALL BE A SURCHARGE OF
THIRTY-SIX AND TWO-TENTHS PERCENT, UPON THE TAX LIABILITY PROVIDED BY
THIS ARTICLE, PROVIDED, HOWEVER, THAT ON AND AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SEVEN, THE SURCHARGE PERCENTAGE SHALL BE FORTY-THREE
PERCENT, AND FURTHER PROVIDED THAT ON AND AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-EIGHT, THE SURCHARGE PERCENTAGE SHALL BE FIFTY-FIVE PERCENT.
(B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, FOR ANY EMPLOYER SUBJECT TO THE SURCHARGE PURSUANT TO THIS SECTION
THAT CONTRIBUTES FOR EMPLOYEE HEALTH BENEFITS, AND WHERE THE EMPLOYEE
COST OF THE HEALTH BENEFIT PLAN DOES NOT EXCEED AN AFFORDABLE EMPLOYEE
CONTRIBUTION FOR HEALTH BENEFITS AS DEFINED IN THE AFFORDABLE CARE ACT
AND IMPLEMENTING REGULATIONS AND AS MODIFIED ANNUALLY BY THE FEDERAL
INTERNAL REVENUE SERVICE, THE RATE OF SURCHARGE SHALL INSTEAD BE EIGH-
TEEN AND FOUR-TENTHS PERCENT, PROVIDED, HOWEVER, THAT ON AND AFTER JANU-
ARY FIRST, TWO THOUSAND TWENTY-SEVEN, THE SURCHARGE PERCENTAGE SHALL BE
SEVENTEEN PERCENT, AND FURTHER PROVIDED THAT ON AND AFTER JANUARY FIRST,
TWO THOUSAND TWENTY-EIGHT, THE SURCHARGE PERCENTAGE SHALL BE FOURTEEN
AND FIVE-TENTHS PERCENT.
§ 7. The tax law is amended by adding a new section 866-a to read as
follows:
§ 866-A. PUBLIC GOODS AND MEDICAID SUBSIDY SURCHARGE ON PASS-THROUGH
ENTITIES. (A) ANY ENTITY ELECTING TO BE TAXED PURSUANT TO THIS ARTICLE
SHALL, TO SUPPORT THE PROVISION OF PUBLIC GOODS PROVIDED FOR IN SECTIONS
TWENTY-EIGHT HUNDRED SEVEN-L, TWENTY-EIGHT HUNDRED SEVEN-M, AND TWENTY-
EIGHT HUNDRED SEVEN-V OF THE PUBLIC HEALTH LAW, TO SUPPORT THE STATE
SHARE OF MEDICAID AND FOR THE PRIVILEGE OF EXERCISING CORPORATE FRAN-
CHISES OR FOR CARRYING ON BUSINESS IN A CORPORATE OR ORGANIZED CAPACITY
WITHIN THIS STATE, AND IN ADDITION TO ANY OTHER TAXES IMPOSED FOR SUCH
PRIVILEGE, PAY A SURCHARGE UPON THE BASIS OF ITS BUSINESS INCOME BASE,
EXCLUDING INCOME CREDITED PURSUANT TO SECTION EIGHT HUNDRED SIXTY-THREE
OF THIS ARTICLE, OR UPON SUCH OTHER BASIS AS MAY BE APPLICABLE AS
PROVIDED BY THIS ARTICLE.
(B) (1) IN ADDITION TO ANY TAX IMPOSED, THERE SHALL BE A SURCHARGE OF
THIRTY-SIX AND TWO-TENTHS PERCENT UPON THE TAX LIABILITY PROVIDED BY
THIS ARTICLE, PROVIDED, HOWEVER, THAT ON AND AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-SEVEN, THE SURCHARGE PERCENTAGE SHALL BE FORTY-THREE
PERCENT, AND FURTHER PROVIDED THAT ON AND AFTER JANUARY FIRST, TWO THOU-
SAND TWENTY-EIGHT, THE SURCHARGE PERCENTAGE SHALL BE FIFTY-FIVE PERCENT.
(2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH ONE OF THIS
SUBSECTION, FOR ANY EMPLOYER SUBJECT TO THE SURCHARGE PURSUANT TO THIS
SECTION THAT CONTRIBUTES FOR EMPLOYEE HEALTH BENEFITS, AND WHERE THE
S. 8157--A 6
EMPLOYEE COST OF THE HEALTH BENEFIT PLAN DOES NOT EXCEED AN AFFORDABLE
EMPLOYEE CONTRIBUTION FOR HEALTH BENEFITS AS DEFINED IN THE AFFORDABLE
CARE ACT AND IMPLEMENTING REGULATIONS AND AS MODIFIED ANNUALLY BY THE
FEDERAL INTERNAL REVENUE SERVICE, THE RATE OF SURCHARGE SHALL INSTEAD BE
EIGHTEEN AND FOUR-TENTHS PERCENT, PROVIDED, HOWEVER, THAT ON AND AFTER
JANUARY FIRST, TWO THOUSAND TWENTY-SEVEN, THE SURCHARGE PERCENTAGE SHALL
BE SEVENTEEN PERCENT, AND FURTHER PROVIDED THAT ON AND AFTER JANUARY
FIRST, TWO THOUSAND TWENTY-EIGHT, THE SURCHARGE PERCENTAGE SHALL BE
FOURTEEN AND FIVE-TENTHS PERCENT.
§ 8. Paragraph 3 of subsection (c) of section 658 of the tax law, as
amended by section 1 of part H-1 of chapter 57 of the laws of 2009,
subparagraph (A) as amended by section 13 of part Q of chapter 60 of the
laws of 2016, and subparagraph (E) as added by section 13 of part S of
chapter 59 of the laws of 2015, is amended to read as follows:
(3) Filing fees. (A) Every subchapter K limited liability company,
every limited liability company that is a disregarded entity for federal
income tax purposes, and every partnership which has any income derived
from New York sources, determined in accordance with the applicable
rules of section six hundred thirty-one of this article as in the case
of a nonresident individual, shall on or before the fifteenth day of the
third month following the close of each taxable year make a payment of a
filing fee AND FILING FEE SURCHARGE. The amount of the filing fee [is]
AND FILING FEE SURCHARGE ARE the [amount] AMOUNTS set forth in subpara-
graph (B) of this paragraph. The minimum filing fee is twenty-five
dollars for taxable years beginning in two thousand eight and thereaft-
er. Limited liability companies that are disregarded entities for feder-
al income tax purposes must pay a filing fee of twenty-five dollars for
taxable years beginning on or after January first, two thousand eight.
(B) (I) The filing fee AND FILING FEE SURCHARGE will be based on the
New York source gross income of the limited liability company or part-
nership for the taxable year immediately preceding the taxable year for
which the fee is due. If the limited liability company or partnership
does not have any New York source gross income for the taxable year
immediately preceding the taxable year for which the fee is due, the
limited liability company or partnership shall pay the minimum filing
fee. Partnerships, other than limited liability partnerships under arti-
cle eight-B of the partnership law and foreign limited liability part-
nerships, with less than one million dollars in New York source gross
income are exempt from the filing fee. New York source gross income is
the sum of the partners' or members' shares of federal gross income from
the partnership or limited liability company derived from or connected
with New York sources, determined in accordance with the provisions of
section six hundred thirty-one of this article as if those provisions
and any related provisions expressly referred to a computation of feder-
al gross income from New York sources. For this purpose, federal gross
income is computed without any allowance or deduction for cost of goods
sold.
(II) The amount of the filing fee for taxable years beginning on or
after January first, two thousand eight will be determined in accordance
with the following table:
If the New York source gross income is: The fee is:
not more than $100,000 $25
more than $100,000 but not over $250,000 $50
more than $250,000 but not over $500,000 $175
more than $500,000 but not over $1,000,000 $500
S. 8157--A 7
more than $1,000,000 but not over $5,000,000 $1,500
more than $5,000,000 but not over $25,000,000 $3,000
Over $25,000,000 $4,500
(III) THE AMOUNT OF THE FILING FEE SURCHARGE FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX WILL BE DETER-
MINED IN ACCORDANCE WITH THE FOLLOWING TABLE:
IF THE NEW YORK SOURCE GROSS INCOME IS: THE SURCHARGE IS:
NOT MORE THAN $1,000,000 $0
MORE THAN $1,000,000 BUT NOT OVER $5,000,000 $1,000
MORE THAN $5,000,000 BUT NOT OVER $10,000,000 $4,000
MORE THAN $10,000,000 BUT NOT OVER $25,000,000 $10,000
MORE THAN $25,000,000 BUT NOT OVER $100,000,000 $35,000
MORE THAN $100,000,000 BUT NOT OVER $500,000,000 $175,000
MORE THAN $500,000,000 BUT NOT OVER $1,000,000,000 $450,000
OVER $1,000,000,000 $1,200,000
(C) No credits provided by this article may be taken against the fee
OR SURCHARGE imposed by this paragraph.
(D) Where the filing fee OR SURCHARGE is not timely paid, it shall be
paid upon notice and demand and shall be assessed, collected and paid in
the same manner as taxes, and for those purposes any reference in this
article to tax imposed by this article shall be deemed also to refer to
this filing fee AND SURCHARGE.
(E) Notwithstanding the provisions of subsection (e) of section six
hundred ninety-seven of this article, the commissioner shall provide the
statements and other required information included on the filing fee AND
SURCHARGE payment form under section three hundred one of the limited
liability company law, subdivision (g) of section 121-1500 of the part-
nership law, and subdivision (f) of section 121-1502 of the partnership
law, to the secretary of state for filing. Such provision may also
include a copy or image of that portion of the report solely pertinent
to such information to the extent feasible. The commissioner may also
provide information on noncompliance.
(F) THE FILING FEE SURCHARGE SET FORTH IN CLAUSE (III) OF SUBPARAGRAPH
(B) OF THIS PARAGRAPH SHALL BE COLLECTED FOR THE PURPOSE OF SUPPORTING
THE PROVISION OF PUBLIC GOODS PROVIDED FOR IN SECTIONS TWENTY-EIGHT
HUNDRED SEVEN-L, TWENTY-EIGHT HUNDRED SEVEN-M AND TWENTY-EIGHT HUNDRED
SEVEN-V OF THE PUBLIC HEALTH LAW.
§ 9. The tax law is amended by adding a new section 221 to read as
follows:
§ 221. PUBLIC GOODS AND MEDICAID SUBSIDY SURCHARGE ON MISCLASSIFIED
WORKERS. 1. A TAX SHALL BE IMPOSED ON ANY BUSINESS CORPORATION OR OTHER
ENTITY DESCRIBED PURSUANT TO SUBDIVISION TWO OF THIS SECTION. SUCH TAX
SHALL BE APPLIED FOR EACH WORKER PERFORMING SERVICES, WHO IS CLASSIFIED
AS AN INDEPENDENT CONTRACTOR, AND WHO IS NOT PROVIDED HEALTH BENEFITS BY
THE CORPORATION OR ENTITY'S HEALTH BENEFIT PLAN WHICH DOES NOT EXCEED AN
AFFORDABLE EMPLOYEE CONTRIBUTION FOR HEALTH BENEFITS AS DEFINED IN THE
AFFORDABLE CARE ACT AND IMPLEMENTING REGULATIONS AND AS MODIFIED ANNUAL-
LY BY THE FEDERAL INTERNAL REVENUE SERVICE.
2. BUSINESS ENTITIES TAXED PURSUANT TO THIS SECTION INCLUDE:
(A)(I) ANY BUSINESS CORPORATION OR OTHER ENTITY THAT (1) USES AN
ONLINE PLATFORM OR DIGITAL NETWORK TO CONNECT CONSUMERS TO WORKERS TO
PROVIDE PERSONAL SERVICES, INCLUDING BUT NOT LIMITED TO PASSENGER TRANS-
PORTATION, SHOPPING AND DELIVERY SERVICES, DOMESTIC SERVICES, OR SIMILAR
S. 8157--A 8
STAFFING AND LABOR SERVICES, AND (2) ESTABLISHES THE GROSS AMOUNTS
EARNED BY THE WORKER, ESTABLISHES THE AMOUNTS CHARGED TO THE CONSUMER,
COLLECTS PAYMENT FROM THE CONSUMER, PAYS THE WORKER, OR ANY COMBINATION
OF THE FOREGOING.
(II) WHERE A BUSINESS CORPORATION OR OTHER ENTITY USES AN ONLINE PLAT-
FORM OR DIGITAL NETWORK FOR THE PURPOSES OF PROVIDING PREARRANGED
PASSENGER TRANSPORTATION, THIS PARAGRAPH SHALL NOT APPLY UNLESS SUCH
CORPORATION OR ENTITY IS A TRANSPORTATION NETWORK COMPANY, PURSUANT TO
ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW, OR A HIGH-VOLUME
FOR-HIRE SERVICE, AS DEFINED IN SECTION 19-502 OF THE ADMINISTRATIVE
CODE OF THE CITY OF NEW YORK.
(B) ANY BUSINESS CORPORATION OR OTHER ENTITY WHICH IS A "CONTRACTOR"
ENGAGED IN "CONSTRUCTION" AS SUCH TERMS ARE DEFINED IN ARTICLE TWENTY-
FIVE-B OF THE LABOR LAW, AND WHERE THE WORKER IS NOT DEEMED A SEPARATE
BUSINESS ENTITY PURSUANT TO SECTION EIGHT HUNDRED SIXTY-ONE-C OF THE
LABOR LAW.
(C) ANY BUSINESS CORPORATION OR OTHER ENTITY WHICH CONTRACTS WITH
DELIVERY DRIVERS WHO ARE NOT EMPLOYEES OF THE BUSINESS AND ARE NOT
COVERED BY PARAGRAPH (A) OR (B) OF THIS SUBDIVISION.
3. THE AMOUNT OF THE TAX PER WORKER FOR TAXABLE YEARS BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TWENTY-SIX SHALL BE DETERMINED IN
ACCORDANCE WITH THE FOLLOWING TABLE:
IF THE NUMBER OF WORKERS IS: THE TAX PER WORKER IS:
NOT MORE THAN TEN $0
BETWEEN ELEVEN AND TWENTY-FIVE $500
BETWEEN TWENTY-SIX AND FIFTY $750
BETWEEN FIFTY-ONE AND ONE HUNDRED $1,500
MORE THAN ONE HUNDRED $2,000
§ 10. Subdivision (a) of section 92-dd of the state finance law, as
amended by section 2 of part UU of chapter 59 of the laws of 2019, is
amended to read as follows:
(a) On and after April first, two thousand five, such fund shall
consist of the revenues heretofore and hereafter collected or required
to be deposited pursuant to paragraph (a) of subdivision eighteen of
section twenty-eight hundred seven-c, and sections twenty-eight hundred
seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t
of the public health law, subdivision (b) of section four hundred eight-
y-two, CLAUSE (III) OF SUBPARAGRAPH (B) OF PARAGRAPH THREE OF SUBSECTION
(C) OF SECTION SIX HUNDRED FIFTY-EIGHT and [section] SECTIONS FIFTEEN
HUNDRED TEN-A, TWO HUNDRED TWENTY, EIGHT HUNDRED SIXTY-SIX-A AND eleven
hundred eighty-six of the tax law and required to be credited to the
tobacco control and insurance initiatives pool, subparagraph (O) of
paragraph four of subsection (j) of section four thousand three hundred
one of the insurance law, section twenty-seven of part A of chapter one
of the laws of two thousand two and all other moneys credited or trans-
ferred thereto from any other fund or source pursuant to law.
§ 11. 1. Beginning April 1, 2027, the department of health, in cooper-
ation with the NY State of Health, the Official Health Plan Marketplace
established pursuant to title 7 of article 2 of the public health law,
shall by April 1 of each subsequent year report to the legislature the
following:
(a) The number of medical assistance recipients who: (i) upon enroll-
ment or recertification had reported being employed, and beginning with
the 2027 report, the month and year they reported being hired; or (ii)
S. 8157--A 9
upon enrollment or recertification had reported being the dependent of
someone who was employed, and beginning with the 2027 report, the month
and year they reported the employed person was hired. For recipients
identified under subparagraphs (i) and (ii) of this paragraph, the
department shall report the basis for their medical assistance eligibil-
ity, including but not limited to: family medical coverage, transitional
medical assistance, children's medical coverage, aged coverage, or
coverage for individuals with disabilities; member months; and the total
cost to the state for these recipients, expressed as general fund-state
and general fund-federal dollars. Such information shall be reported by
employer size for employers having more than fifty employees or for
contractors engaged in construction, as defined in article 25-B of the
labor law, with gross revenues of more than five million dollars annual-
ly as recipients or with dependents as recipients. This information
shall be provided for the preceding January and June of that year.
(b) The following aggregated information: (i) the number of employees
who are recipients or with dependents as recipients by private and
governmental employers; (ii) the number of employees who are recipients
or with dependents as recipients aggregated by employer size for employ-
ers with fifty or fewer employees, fifty-one to one hundred employees,
one hundred one to one thousand employees, one thousand one to five
thousand employees and more than five thousand employees; and (iii) the
number of employees who are recipients or with dependents as recipients
by industry type.
(c) For each aggregated classification, the report shall include the
number of hours worked, the number of covered recipients, and the total
cost to the state for such recipients. Such information shall be
provided for each quarter of the preceding year.
2. Beginning April 1, 2027, the department of health, in coordination
with the NY State of Health, the Official Health Plan Marketplace estab-
lished pursuant to title 7 of article 2 of the public health law, shall
by April 1 of each subsequent year report to the legislature:
(a) The number of essential and/or basic health plan enrollees who:
(i) upon enrollment or recertification had reported being employed, and
beginning with the 2027 report, the month and year they reported being
hired; or (ii) upon enrollment or recertification had reported being the
dependent of someone who was employed, and beginning with the 2027
report, the month and year they reported the employed person was hired;
and (iii) the total cost to the state for these enrollees. The informa-
tion shall be reported by employer size for employers having more than
fifty employees or for contractors engaged in construction, as defined
in article 25-B of the labor law, with gross revenues of more than five
million dollars annually as enrollees or with dependents as enrollees.
Such information shall be provided for the preceding January and June of
that year.
(b) The following aggregated information: (i) the number of employees
who are enrollees or with dependents as enrollees by private and govern-
mental employers; (ii) the number of employees who are enrollees or with
dependents as enrollees aggregated by employer size for employers with
fifty or fewer employees, fifty-one to one hundred employees, one
hundred one to one thousand employees, one thousand one to five thousand
employees and more than five thousand employees; and (iii) the number of
employees who are enrollees or with dependents as enrollees by industry
type.
(c) For each aggregated classification, the report shall include the
number of hours worked, the number of covered lives, and total cost to
S. 8157--A 10
the state for such enrollees. Such information shall be provided for
each quarter of the preceding year.
§ 12. This act shall take effect April 1, 2026; provided, however,
that if such act shall become a law after such date it shall take effect
immediately and shall be deemed to have been in full force and effect on
and after April 1, 2026; provided, however, that the amendments to
section 2807-j of the public health law made by section three of this
act shall not affect the expiration of such section and shall expire and
be deemed repealed therewith; and provided further, however, that the
amendments to section 2807-s of the public health law made by section
four of this act shall not affect the expiration of such section and
shall expire and be deemed repealed therewith.
