House File 2430 - Introduced
HOUSE FILE
BY T. TAYLOR, PETTENGILL,
WESSEL=KROESCHELL, BERRY,
KRESSIG, SHOULTZ, MASCHER,
GASKILL, FREVERT, HEDDENS,
SMITH, JOCHUM, D. OLSON,
LENSING, WINCKLER, MERTZ,
FOEGE, COHOON, SWAIM, WENDT,
WHITEAD, R. OLSON, DAVITT, BELL,
HUNTER, D. TAYLOR, WHITAKER,
BUKTA, and MILLER
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating the fair share health care fund, providing for
2 assessments and penalties, and making an appropriation.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 5312HT 81
5 av/je/5
PAG LIN
1 1 Section 1. NEW SECTION. 84A.11 FAIR SHARE HEALTH CARE
1 2 FUND.
1 3 1. DEFINITIONS. As used in this section, unless the
1 4 context otherwise requires:
1 5 a. "Director" means the director of the department of
1 6 workforce development.
1 7 b. "Employee" means a natural person who is employed in
1 8 this state for wages by an employer.
1 9 c. "Employer" means a person as defined in section 4.1
1 10 that is organized as a for=profit or nonprofit organization
1 11 and that has fifty or more employees. "Employer" does not
1 12 include the federal government, the state, another state, or a
1 13 political subdivision of the state or another state.
1 14 d. "Health care expenditures" means the amount paid by an
1 15 employer to provide health care benefits or reimburse
1 16 employees for their health care costs, including but not
1 17 limited to payments for medical care, prescription drugs,
1 18 vision care, and medical savings accounts.
1 19 e. "Wages" means compensation owed by an employer for
1 20 labor or services rendered by an employee, whether determined
1 21 on a time, task, piece, commission, or other basis of
1 22 calculation.
1 23 2. EMPLOYER REPORTING REQUIREMENTS.
1 24 a. Beginning on January 1, 2007, and annually thereafter,
1 25 each employer shall provide information to the director,
1 26 pursuant to rules adopted pursuant to chapter 17A, including
1 27 but not limited to all of the following information compiled
1 28 as of January 1 of the previous year:
1 29 (1) The employer's definition of full=time and part=time
1 30 employee of the employer.
1 31 (2) The number of full=time and part=time employees in the
1 32 state of the employer.
1 33 (3) The number of full=time and part=time employees in the
1 34 state eligible to receive health care expenditures from the
1 35 employer and the number of full=time and part=time employees
2 1 in the state receiving health care expenditures from the
2 2 employer.
2 3 (4) The amount spent by the employer for health care
2 4 expenditures for employees in the state.
2 5 (5) The percentage of the employer's payroll for employees
2 6 in the state that was spent for health care expenditures for
2 7 employees in the state. In calculating this amount, an
2 8 employer may exclude wages paid to an employee who was
2 9 enrolled in or eligible for Medicare.
2 10 (6) The source of health care expenditures received by
2 11 full=time and part=time employees in the state who were
2 12 eligible for but did not receive health care expenditures from
2 13 their employer.
2 14 (7) Whether the employer is a nonprofit or a for=profit
2 15 organization.
2 16 b. The information required under paragraph "a" shall be
2 17 contained in a report signed by the principal executive
2 18 officer of the employer or an officer of the employer
2 19 performing a similar function. The report shall include an
2 20 affidavit by the signing officer attesting, under penalty of
2 21 perjury, that the information contained in the report was
2 22 reviewed by the signing officer, is based on the signing
2 23 officer's knowledge, and does not contain any untrue statement
2 24 of material fact or omit a material fact necessary to make the
2 25 report.
2 26 3. DIRECTOR'S ANNUAL REPORT. The director shall submit an
2 27 annual report not later than March 15 to the governor, members
2 28 of the general assembly, and the legislative services agency
2 29 that contains a summarization of information received by the
2 30 director from employers pursuant to subsection 2 and that
2 31 includes all of the following information compiled as of
2 32 January 1 of the previous year:
2 33 a. The name of each nonprofit and for=profit employer in
2 34 the state.
2 35 b. Each employer's definition of full=time and part=time
3 1 employee of the employer.
3 2 c. The number of full=time and part=time employees in the
3 3 state of each employer.
3 4 d. The number of full=time and part=time employees in the
3 5 state eligible to receive health care expenditures from each
3 6 employer.
3 7 e. The number of full=time and part=time employees in the
3 8 state receiving health care expenditures from each employer.
3 9 f. The source of health care expenditures received by
3 10 full=time and part=time employees in the state who were
3 11 eligible for but did not receive health care expenditures from
3 12 their employer.
3 13 g. The percentage of total wages that each nonprofit and
3 14 for=profit employer spent on health care expenditures for
3 15 employees in the state, excluding wages paid to employees
3 16 enrolled in or eligible for Medicare.
3 17 h. The average percentage of total wages that all for=
3 18 profit employers spent on health care expenditures for
3 19 employees in the state, excluding wages paid to employees
3 20 enrolled in or eligible for Medicare.
3 21 i. The average percentage of total wages that all
3 22 nonprofit employers spent on health care expenditures for
3 23 employees in the state, excluding wages paid to employees
3 24 enrolled in or eligible for Medicare.
3 25 4. FAIR SHARE HEALTH CARE FUND == ASSESSMENT == MEDICAL
3 26 ASSISTANCE PROGRAM.
3 27 a. An employer that is organized as a nonprofit
3 28 organization with ten thousand or more employees in the state
3 29 and that spent less than an amount equal to six percent of the
3 30 total amount of wages paid to employees in the state as of
3 31 January 1 of the previous year, excluding wages paid to
3 32 employees who were enrolled in or eligible for Medicare, on
3 33 health care expenditures for those employees, is assessed and
3 34 shall pay to the director an amount equal to the difference
3 35 between the amount the employer spent for such health care
4 1 expenditures and six percent of total wages paid as set forth
4 2 in this paragraph.
4 3 b. An employer that is organized as a for=profit
4 4 organization with ten thousand or more employees in the state
4 5 and that spent less than an amount equal to eight percent of
4 6 the total amount of wages paid to employees in the state as of
4 7 January 1 of the previous year, excluding wages paid to
4 8 employees who were enrolled in or eligible for Medicare, on
4 9 health care expenditures for those employees, is assessed and
4 10 shall pay to the director an amount equal to the difference
4 11 between the amount the employer spent for such health care
4 12 expenditures and eight percent of total wages paid as set
4 13 forth in this paragraph.
4 14 c. The director shall determine the means and method of
4 15 collecting the assessments. All moneys collected by the
4 16 director pursuant to this subsection shall be forwarded to the
4 17 treasurer of state, who shall deposit the moneys in a fair
4 18 share health care fund created in the state treasury under the
4 19 control of the director of human services. The moneys
4 20 deposited in the fund are appropriated and shall be used only
4 21 for the purposes of the medical assistance program as defined
4 22 in chapter 249A.
4 23 Notwithstanding section 12C.7, subsection 2, interest or
4 24 earnings on moneys that are deposited in the fund shall be
4 25 credited to the fund, and notwithstanding section 8.33, moneys
4 26 credited to the fund shall not revert to the general fund of
4 27 the state at the close of a fiscal year.
4 28 5. PENALTIES.
4 29 a. An employer that fails to timely file an annual report
4 30 as required under subsection 2 is in violation of this section
4 31 and shall pay an administrative penalty of two hundred fifty
4 32 dollars for each day that the report is not timely filed.
4 33 b. An employer that fails to pay the assessment as
4 34 required under subsection 4 is in violation of this section
4 35 and shall pay an administrative penalty of two hundred fifty
5 1 thousand dollars.
5 2 c. Penalties assessed under this subsection shall be paid
5 3 to the director, who shall forward the moneys to the treasurer
5 4 of state for deposit in the fair share health care fund.
5 5 EXPLANATION
5 6 This bill creates the fair share health care fund, provides
5 7 for assessments of certain employers, makes an appropriation,
5 8 and provides for penalties.
5 9 The bill applies to employers that are organized as
5 10 nonprofit or for=profit organizations with 50 or more
5 11 employees in the state. The bill does not apply to the
5 12 federal government, the state, another state, or a political
5 13 subdivision of the state or another state.
5 14 Beginning on January 1, 2007, such employers are required
5 15 to annually report information as of January 1 of the previous
5 16 year to the director of the department of workforce
5 17 development concerning the employer's definition of full=time
5 18 and part=time employees; how many full=time and part=time
5 19 employees were employed by the employer; the number of full=
5 20 time and part=time employees eligible to receive health care
5 21 expenditures from the employer and how many did receive such
5 22 expenditures; the amount spent by the employer for health care
5 23 expenditures for employees in the state; the percentage of the
5 24 employer's payroll for employees in the state that was spent
5 25 for health care expenditures for those employees, excluding
5 26 wages paid to an employee who was enrolled in or eligible for
5 27 Medicare; and whether the employer is a nonprofit or for=
5 28 profit organization.
5 29 The required information must be contained in a report
5 30 signed by the principal executive officer of the employer or
5 31 an officer with a similar function and include an affidavit by
5 32 the signing officer attesting that the officer reviewed the
5 33 information, has knowledge of the information, and that the
5 34 information does not contain any untrue statement or omission
5 35 of a material fact.
6 1 The director of the department of workforce development is
6 2 required to submit an annual report to the governor, members
6 3 of the general assembly, and the legislative services agency,
6 4 not later than March 15, summarizing the information compiled
6 5 as of January 1 of the previous year, received by the director
6 6 from employers pursuant to the employer reporting
6 7 requirements. In addition, the director is required to state
6 8 the average percentage of total wages that all nonprofit
6 9 employers and all for=profit employers spent on health care
6 10 expenditures for employees in the state for the previous year,
6 11 excluding wages paid to employees enrolled in or eligible for
6 12 Medicare.
6 13 The bill creates the fair share health care fund under the
6 14 control of the director of human services. The bill requires
6 15 a nonprofit employer with 10,000 or more employees in the
6 16 state that spent less than an amount equal to 6 percent or a
6 17 for=profit employer with 10,000 or more employees in the state
6 18 that spent less than an amount equal to 8 percent of the
6 19 amount of total wages paid to its employees in the state on
6 20 health care expenditures for those employees as of January 1
6 21 of the previous year, to pay to the director an amount equal
6 22 to the difference between the amount the employer spent for
6 23 such health care expenditures and the amount equal to 6 and 8
6 24 percent, respectively, of the amount of total wages paid to
6 25 its employees in the state, excluding wages paid to employees
6 26 enrolled in or eligible for Medicare.
6 27 The director of the department of workforce development is
6 28 required to adopt rules to establish the means and method of
6 29 collecting the assessments and to forward all moneys collected
6 30 to the treasurer of state for deposit in the fair share health
6 31 care fund. The bill provides that the moneys in the fund are
6 32 appropriated and shall be used only for the purposes of the
6 33 medical assistance program as defined in Code chapter 249A.
6 34 Earnings and interest on moneys in the fund remain in the fund
6 35 and unused moneys in the fund do not revert to the general
7 1 fund of the state at the end of the fiscal year.
7 2 The bill provides that an employer that fails to timely
7 3 file an annual report shall pay an administrative penalty of
7 4 $250 for each day that the report is not timely filed. An
7 5 employer that fails to pay the required assessment is liable
7 6 for an administrative penalty of $250,000. Penalty payments
7 7 are required to be deposited in the fair share health care
7 8 fund.
7 9 LSB 5312HT 81
7 10 av:rj/je/5