SECTION 1. Section 1 of Chapter 118G of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting after the definition of "Non-acute hospital", the following definition:     

""Non-providing employer", an employer, of a person receiving free care; provided, however, that the terms "non-providing employer" shall not include

(i) an employer that, for such person receiving free care, pays for or arranges for the purchase of health care services provided by acute hospitals and ambulatory surgical center services provided by ambulatory surgical centers, or

(ii) an employer that is signatory to or obligated under a negotiated, bona fide collective bargaining agreement between such employer and bona fade employee representative which agreement governs the employment conditions of such person receiving free care.

For the purposes of the foregoing definition of "non-providing employer", an employer shall not be considered to "pay for or arrange for the purchase of health care services provided by acute hospitals and ambulatory surgical center services provided by ambulatory surgical centers" by making or arranging for any payments to the Uncompensated Care Pool."      

Said Section 1 is hereby further amended by inserting after the definition of "Pool", the following definition:

""Payments from Non-providing Employers", all amounts paid to the Uncompensated Care Trust Fund by non-providing employers."

SECTION 2. Section 18(b) of Chapter 118G, as appearing in the 2002 Official Edition, is hereby amended by inserting in line 13, after the words "acute hospitals", the following ", non-providing employers"

SECTION 3. Chapter 118G, as appearing in the 2002 Official Edition, is hereby amended by striking Section 18(d) and inserting in place thereof the following section: "(d) Within said fund, the division shall administer an uncompensated care pool consisting of revenues produced by acute hospital assessments, payments from non-providing employers and the surcharge percentage calculated by the division pursuant to this section and section 18A and all appropriations for the purpose of uncompensated care provided by acute hospitals, or community health centers, including, but not limited to, federal funds made available for uncompensated care payments to certain acute hospitals as may be appropriated from the General Fund or any other fund. For purposes of this subsection, the words "revenues produced by acute hospital assessments" shall equal the value of and have the same meaning as the words "acute hospitals' liability to the pool" established pursuant to subsection (e), the words 'revenues produced by payments from non-providing employers' shall equal the value of and have the same meaning as the words `non-providing employers' liability to the pool' and the words "revenues produced by the surcharge percentage' shall equal the value of and have the same meaning as the words "surcharge payers liability to the pool" as established pursuant to section 18A. Amounts placed in the Uncompensated Care Trust Fund, except for amounts transferred into the separate MassHealth account established in subsection (c), shall be expended by the division for the purposes of the uncompensated care pool; provided, however, that the division may expend up to $5,000,000 annually for demonstration projects where the division finds that such projects reduce the liability of said pool to acute hospitals and community health centers by at least the amount expended by said pool on such projects. The division shall administer the uncompensated care pool and require payments to the pool and disburse funds from the pool consistent with the surcharge payers, non-providing employers' and acute hospitals' liability to the pool and the pool's liability to an acute hospital or a community health center. The division shall specify by regulation appropriate mechanisms that provide for interim determination and payment of a surcharge payor's liability to the pool, a non-providing employers' liability to the pool and an acute hospital's liability to and from the pool during each fiscal year and for final settlement of the pool for each fiscal year. The division may promulgate regulations which authorize the assessment of interest on any unpaid liability at a rate not to exceed an annual percentage rate of 18 per cent and late fees at a rate not to exceed 5 per cent per month. The division may calculate final settlements when it determines that data for a fiscal year are substantially complete and that further refinements would not materially affect the calculation. The division may incorporate final settlement amounts by prospective adjustment of acute hospitals', non-providing employers' and surcharge payers' liability rather than by retrospective payments or assessments." SECTION 4. Section 18(1) of Chapter 118G of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting, in Line 281, after the words "identification number of employer," the following:

"average number of hours worked per week in the most recent quarter,"

SECTION 5. Section 18A(a) of Chapter 118G of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by deleting the fourth sentence and inserting in place thereof the following sentence: "The division shall calculate the surcharge percentage by dividing the remainder of $100,000,000 minus the projected annual payments from non-providing employers, by the projected annual payments subject to surcharge."       Said section 18A(a) is hereby further amended by deleting the fifth sentence and inserting in place thereof the following sentence: "The division shall determine the surcharge percentage before the effective date of this section and may redetermine the surcharge percentage before the following April 1 if the division projects that the sum of payments from non-providing employers and the initial surcharge established the previous October will produce less than $90,000,000 or more than $110,000,000."       SECTION 6. Chapter 118G of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by inserting after Section 18A the following new section:;Section 18B. (a) The Division shall assess a surcharge on non-providing employers equal to 100 per cent of the cost of free care provided to said employer's employee. The surcharge shall not exceed an amount equal to the product of seventy-five dollars and (ii) the average number of hours worked per week by said employee in the most recent quarter. Salaried employees shall be assumed to be employed for forty hour per week. Said surcharge shall not exceed $3,000 per incident.(b) Each non-providing employer shall pay such surcharge amount to the division for deposit in the uncompensated care pool.(c) The division shall apply all payments collected from said non-providing employers to the formula for determining the surcharge percentage in Section 18A (a) of Chapter 118G of the General Laws.(d) The division shall specify by regulation appropriate mechanisms that provide for determination and payment of an non-providing employer's liability, including requirements for data to be submitted by non-providing employers, acute hospitals and ambulatory surgical centers.(e) An non-providing employer's liability to said pool shall in the case of a transfer of ownership be assumed by the successor in interest to the non-providing employer's.(f) The division shall establish by regulation an appropriate mechanism for enforcing a non-providing employer's liability to said pool in the event that a non-providing employer does not make a scheduled payment to said pool. Such enforcement mechanism may include assessment of interest on the unpaid liability at a rate not to exceed an annual percentage rate of 18 per cent and late fees or penalties at a rate not to exceed 5 per cent per month.(g) Any non-providing employer that fails to file any data, statistics or schedules or other information required under this chapter or by any regulation promulgated by the division or which falsifies the same, shall be subject to a civil penalty of not more than $5,000 for each week on which such violation occurs or continues, which penalty may be assessed in an action brought on behalf of the commonwealth in any court of competent jurisdiction.

The attorney general shall bring any appropriate action, including injunctive relief, as may be necessary for the enforcement of the provisions of this chapter.SECTION 7. Section 20 of Chapter 47 of the Acts of 1997 is hereby amended in the second paragraph by striking the last sentence and inserting in place thereof the following sentence: "If the division allows the enforcement of said surcharge percentage to be delayed pursuant to this paragraph, the division may redetermine the surcharge percentage as of May 1, 1998 and as of July 1, 1998 if the division projects that the revenues from the sum of payments from non-providing employers and the surcharge percentage established previously will produce less than $90,000,000 or more than $100,000,000, or if the adjustment is necessary in order to fully repay the General Fund or other fund, as required by condition (5) of this section."

SECTION 8. Section 23 of Chapter 47 of the Acts of 1997 is hereby amended by inserting in the first sentence after the words "surcharge payers" the following: "collections from non-providing employers,"

SECTION 9. Section 26 of Chapter 47 of the Acts of 1997 is hereby amended by inserting in the first sentence after the word "purchaser", the following: "non-providing employers".