Today's Law As Amended

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AB-414 Health care coverage: minimum essential coverage.(2019-2020)



SECTION 1.

 Title 24 (commencing with Section 100700) is added to the Government Code, to read:

TITLE 24. California Health Care Coverage Shared Responsibility Act

100700.
 (a) A California resident shall, for each month beginning after 2019, ensure that the resident and the dependents of the resident are covered under minimum essential coverage for that month.
(b) A penalty shall be imposed for failure to meet the requirement described in subdivision (a).
(c) It is the intent of the Legislature to follow a methodology similar to that outlined in Section 5000A of Title 26 of the United States Code, as in effect on December 15, 2017, for purposes of determining exemptions to the requirement described in subdivision (a) and the calculation and collection of the penalty described in subdivision (b).
(d) The Exchange shall determine the penalty, if any, for a resident, and the Franchise Tax Board shall collect the penalty.
100702.
 For the purposes of this title, the following definitions shall apply:
(a) “Exchange” means the California Health Benefit Exchange, also known as Covered California, established pursuant to Title 22 (commencing with Section 100500).
(b) “Minimum essential coverage” has the same meaning as that term is defined in Section 5000A(f) of Title 26 of the United States Code.
100704.
 (a) The Exchange shall determine whether or not to grant a certification that a resident is entitled to an exemption from the requirement to maintain minimum essential coverage pursuant to subdivision (a) of Section 100700, the penalty imposed pursuant to subdivision (b) of Section 100700, or both, by reason of religious conscience or hardship.
(b) The Exchange shall notify the resident and the Franchise Tax board of a certification granted pursuant to subdivision (a) in a time and manner as the Exchange, in consultation with the Franchise Tax Board, prescribes.
100706.
 (a) The Health Care Coverage Penalty Fund is hereby created in the State Treasury.
(b) Moneys collected from the penalty assessed pursuant to Part 32 (commencing with Section 61000) of Division 2 of the Revenue and Taxation Code shall be deposited into the fund.
(c) Subject to an appropriation by the Legislature, moneys in the fund shall be used to improve the affordability of health care coverage for Californians.

SEC. 2.

 Part 32 (commencing with Section 61000) is added to Division 2 of the Revenue and Taxation Code, to read:

PART 32. Minimum Essential Coverage Penalty Collection

61000.
 (a) (1) The penalty determined by the California Health Benefit Exchange pursuant to Title 24 (commencing with Section 100700) of the Government Code shall be paid upon notice and demand by the Franchise Tax Board, and except as provided in paragraph (2), shall be assessed and collected in the same manner as an assessable penalty under Chapter 4 (commencing with Section 19001) of Part 10.2.
(2) For a taxable year during which the Franchise Tax Board determines that a federal shared responsibility penalty applies, the penalty determined by the California Health Benefit Exchange pursuant to Title 24 (commencing with Section 100700) of the Government Code shall be reduced, but not below zero, by the amount of the federal penalty imposed on the applicable individual for each month of the taxable year during which the state penalty is imposed.
(3) Notwithstanding any other law, in the case of any failure by a taxpayer to timely pay the penalty described in paragraph (1), the taxpayer shall not be subject to any criminal prosecution or criminal penalty with respect to that failure.
(4) Notwithstanding any other law, the Franchise Tax Board shall not file notice of lien with respect to any property of a taxpayer by reason of any failure to pay the penalty described in paragraph (1), or levy on that property with respect to that failure.
(b) The Franchise Tax Board shall revise the returns required to be filed pursuant to Article 1 (commencing with Section 18501) of Chapter 2 of Part 10.2 to include a line for the penalty assessed pursuant to this section.
(c) Moneys collected from the penalty assessed pursuant to this section shall be deposited into the Health Care Coverage Penalty Fund created pursuant to Section 100706 of the Government Code.