Bill Text: NY A00476 | 2019-2020 | General Assembly | Introduced

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Bill Title: Imposes a tax on health maintenance organizations and establishes the medical malpractice relief fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A00476 Detail]

Download: New_York-2019-A00476-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                           476
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        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:
     1    Section 1. The tax law is amended by adding a new article 33-C to read
     2  as follows:
     3                                ARTICLE 33-C
     4                   TAX ON HEALTH MAINTENANCE ORGANIZATIONS
     5  Section 1580. Definition.
     6          1581. Imposition of tax.
     7          1582. Deposit and disposition of revenue.
     8    §  1580.  Definition. For the purpose of this article, "health mainte-
     9  nance organization" means any  person,  natural  or  corporate,  or  any
    10  groups  of such persons who enter into an arrangement, agreement or plan
    11  or any combination of arrangements or plans which propose to provide  or
    12  offer,  or  which  do  provide or offer, a comprehensive health services
    13  plan pursuant to article forty-four of the public health law.
    14    § 1581. Imposition of tax. There is hereby imposed on any health main-
    15  tenance organization established pursuant to article forty-four  of  the
    16  public  health  law  and  authorized  to transact business in this state
    17  under a certificate of authority from the  superintendent  of  financial
    18  services  a  tax at the rate of between one half percent and one percent
    19  of the reported profits each fiscal year. The commissioner, in  conjunc-
    20  tion  with  the  superintendent  of  financial services shall promulgate
    21  rules and regulations necessary for the implementation of this  section.
    22  Nothing  in  this  article  modifies  or  abrogates any provision of the
    23  insurance law.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05301-01-9
        A. 476                              2
     1    § 1582. Deposit and disposition of revenue. All  taxes,  interest  and
     2  penalties  collected  or received by the commissioner under this article
     3  shall be deposited into the medical malpractice relief fund pursuant  to
     4  section ninety-seven-ssss of the state finance law.
     5    §  2. The state finance law is amended by adding a new section 97-ssss
     6  to read as follows:
     7    § 97-ssss. Medical malpractice relief fund. 1. There is hereby  estab-
     8  lished in the joint custody of the state comptroller and the commission-
     9  er  of  taxation  and  finance a special revenue fund to be known as the
    10  "medical malpractice relief fund".
    11    2. Such fund shall consist of all moneys received from taxes  assessed
    12  on  health  maintenance organizations pursuant to article thirty-three-C
    13  of the tax law.
    14    3. Moneys in the fund shall be kept separately from and shall  not  be
    15  commingled  with  any  other  moneys  in  the custody of the state comp-
    16  troller.
    17    4. Moneys in the account, following appropriation by the  legislature,
    18  shall  be  expended  by the superintendent of financial services for the
    19  purpose of providing relief to health care practitioners by reducing the
    20  increasing costs of medical malpractice insurance.
    21    § 3. This act shall take effect April 1, 2020.  Effective immediately,
    22  the addition, amendment and/or repeal of any rule or  regulation  neces-
    23  sary  for  the  implementation  of  this  act  on its effective date are
    24  authorized and directed to be made  and  completed  on  or  before  such
    25  effective date.