S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2812
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 Introduced  by  M. of A. KOLB -- read once and referred to the Committee
   on Health
 
 AN ACT to amend the public health law,  in  relation  to  penalties  for
   failure to pay certain hospital assessments
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 8 of section 2807-d of the public  health  law,
 as added by chapter 938 of the laws of 1990, paragraph (a) as amended by
 section  24  of  subpart D of part V-1 of chapter 57 of the laws of 2009
 and paragraph (b) as amended by chapter 41  of  the  laws  of  1992,  is
 amended to read as follows:
   8. (a) If an estimated payment made for a month to which an assessment
 applies  is  less  than ninety percent of the actual amount due for such
 month, interest shall be due and payable  to  the  commissioner  on  the
 difference  between  the  amount paid and the amount due from the day of
 the month the estimated payment was due until the date of  payment.  The
 rate  of  interest  shall  be twelve percent per annum or at the rate of
 interest set by the commissioner of taxation and finance with respect to
 underpayments of tax pursuant to subsection (e) of section one  thousand
 ninety-six  of  the tax law minus four percentage points. Interest under
 this paragraph shall not be paid if the amount thereof is less than  one
 dollar.  Interest,  if not paid by the due date of the following month's
 estimated payment, may be collected  by  the  commissioner  pursuant  to
 paragraph  (c)  of subdivision six of this section in the same manner as
 an assessment pursuant to subdivision two of this section.
   (b) [If an estimated payment made for a month to which  an  assessment
 applies  is  less than seventy percent of the actual amount due for such
 month, a penalty shall be due and payable  to the commissioner  of  five
 percent   of  the  difference between the amount paid and the amount due
 for such month when the failure to pay is for a  duration  of  not  more
 than  one  month  after  the due date of the payment with  an additional

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03192-01-7

 A. 2812                             2

 five percent for each additional month or  fraction thereof during which
 such failure continues, not exceeding twenty-five percent in the  aggre-
 gate.  A penalty may be collected by  the commissioner pursuant to para-
 graph  (c)  of  subdivision six of this section in the same manner as an
 assessment pursuant to subdivision two of this section.
   (c)] Overpayment by a  hospital  of  an  estimated  payment  shall  be
 applied  to  any  other  payment  due from the hospital pursuant to this
 section, or, if no payment is due, at the election of the hospital shall
 be applied to future estimated payments or  refunded  to  the  hospital.
 Interest  shall  be paid on overpayments from the date of overpayment to
 the date of crediting or refund at the  rate  determined  in  accordance
 with  paragraph  (a)  of this subdivision if the overpayment was made at
 the direction of the commissioner. Interest under this  paragraph  shall
 not be paid if the amount thereof is less than one dollar.
   § 2. This act shall take effect immediately.