January 25, 2007, Introduced by Senators BASHAM, PRUSI, WHITMER, GLEASON, JACOBS, BRATER, SCOTT, HUNTER and OLSHOVE and referred to the Committee on Commerce and Tourism.
A bill to provide for the collection and administration of a
fee payable by certain employers; to provide for the disposition of
the proceeds of the fee; to require certain employers to submit
information; to create a fund in the state treasury; to prescribe
the powers and duties of certain state departments and officers;
and to provide for civil fines.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "fair
share health care fund act".
Sec. 3. As used in this act:
(a) "Employee" means a person employed full- or part-time in
this state by an employer.
(b) "Employer" means an entity organized as a for-profit or
not-for-profit entity with 10,000 or more employees in this state.
Employer does not include federal, state, or local government or an
agency of federal, state, or local government.
(c) "Fund" means the fair share health care fund established
in section 5.
(d) "Health insurance costs" means costs an employer incurs to
provide health care or health insurance to employees, if the costs
are deductible by the employer under federal tax law. Health
insurance costs include payments for medical care, prescription
drugs, medical savings accounts, and other payments that are for
medical care as defined in section 213(d) of the internal revenue
code of 1986, 26 USC 213.
(e) "Wages" means the amount reportable by the employer as
taxable and nontaxable wages paid to employees for federal income
tax purposes.
Sec. 5. (1) The fair share health care fund is established in
the state treasury.
(2) The proceeds from the fee or any penalty collected under
this act shall be deposited with the state treasurer and credited
to the fund.
(3) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(4) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(5) Money in the fund shall be expended to assist in funding
medical assistance under the state's medicaid program administered
under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b,
solely for the benefit of employees of contributors to the fund.
Sec. 7. (1) For the calendar year 2008 and each subsequent
year, there is imposed on an employer that is organized as a
nonprofit organization an annual fee that is initially established
as the amount equal to 6% of the total annual wages that the
employer pays to its employees minus the employer's annual health
insurance costs, but not less than zero.
(2) For the calendar year 2008 and each subsequent year, there
is imposed on an employer that is not organized as a nonprofit
organization an annual fee that is initially established as the
amount equal to 8% of the total annual wages that the employer pays
to its employees minus the employer's annual health insurance
costs, but not less than zero.
(3) By January 1 of each year after 2008, the state treasurer,
in consultation with the department of community health, shall
estimate expected claims against the fund for the next calendar
year. The state treasurer shall increase or decrease the amount of
the fee assessed against each employer under this section based on
the amount of the medicaid claims of employees of that employer, so
as to maintain sufficient money in the fund to reimburse medicaid
for expected claims. Any amount in excess of that required to
maintain the solvency of the fund shall not be refunded or credited
to the employer but shall be applied to reduce the employer's
assessment for the next fiscal year.
Sec. 9. By April 15 of each year beginning in 2009, an
employer shall submit the fee imposed under section 7 along with
the following information in a form prescribed by the state
treasurer:
(a) The average number of employees the employer employed in
this state during the preceding calendar year.
(b) The amount of the employer's health insurance costs for
the preceding calendar year.
(c) The percentage of wages that was spent by the employer in
the preceding calendar year on health insurance costs. In
calculating the percentage under this subdivision, the employer may
exempt both of the following:
(i) Wages paid to an employee in excess of the median household
income in this state as indicated in the most recent publication of
data from the United States census bureau.
(ii) Wages paid to an employee who is enrolled in or eligible
for medicare.
Sec. 11. The state treasurer shall prescribe the forms
necessary for the administration of the fee under this act and may
promulgate rules necessary to implement this act under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
Sec. 13. An employer shall not deduct any portion of a payment
required under this act from the wages of an employee.
Sec. 15. (1) The director of the department of community
health shall develop and make available a form to collect the
information from employers concerning employee health insurance
coverage that is necessary to complete the report required under
section 17.
(2) By April 15 of each year beginning in 2009, an employer
shall submit the requested information on the form developed under
this section.
Sec. 17. On or before September 15 of each year, the director
of the department of community health shall report to the governor
and the clerk of each house of the legislature the name of each
employer subject to this act and all of the following information
for each of those employers:
(a) The employer's definition of full-time employees.
(b) The employer's definition of part-time employees.
(c) The number of full-time employees.
(d) The number of full-time employees eligible to participate
in the employer's health benefit program.
(e) The number of full-time employees participating in the
employer's health benefit program.
(f) The source of health insurance benefits of the eligible
full-time employees who do not participate in the employer's health
benefit program.
(g) The number of part-time employees.
(h) The number of part-time employees eligible to participate
in the employer's health benefit program.
(i) The number of part-time employees participating in the
employer's health benefit program.
(j) The source of health insurance benefits of the eligible
part-time employees who do not participate in the employer's health
benefit program.
Sec. 19. The principal executive officer or a person
performing the function of principal executive officer of the
employer shall sign and submit the forms required under this act.
The signature shall attest to both of the following:
(a) That the information included in the form was reviewed by
the signing officer.
(b) That the information is true and complete to the best of
the signing officer's knowledge, information, and belief.
Sec. 21. (1) An employer who fails to report information
required under this act is responsible for a civil fine of $250.00
for each day that the report is not timely filed.
(2) An employer who fails to pay an amount required under this
act is responsible for a civil fine of $250,000.00.