To enact sections 5101.91, 5101.911, 5101.912, 5101.913, 5101.914, and 5101.915 of the Revised Code to require certain employers in this state who do not provide a specified amount of health care coverage to their employees to make contributions to a fund to be used to supplement this state's share of Medicaid costs.

Section 1.  That sections 5101.91, 5101.911, 5101.912, 5101.913, 5101.914, and 5101.915 of the Revised Code be enacted to read as follows:

Sec. 5101.91.  As used in sections 5101.91 to 5101.915 of the Revised Code:

(A) "Employee" means an individual, having part-time or full-time employment status, who is directly employed by an employer. "Employee" includes an individual employed by an employer for any portion of a calendar year.

(B) "Employer" has the same meaning as in section 3401 of the Internal Revenue Code, except "employer" does not include the federal government; the state; any agency or instrumentality of the federal government or the state; or any municipal corporation, county, township, school district, or other political subdivision of the state or any agency or instrumentality of a political subdivision.

(C) "Health insurance costs" means amounts paid by an employer to provide health care or health insurance benefits to employees, including, but not limited to, amounts paid for medical care as defined in section 213 of the Internal Revenue Code, vision care, prescription drugs, and contributions made by the employer to medical savings accounts. "Health insurance costs" includes only such amounts as are deductible in computing the taxable income of a for-profit business under the Internal Revenue Code.

(D) "Nonprofit employer" means an employer that is exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code.

(E) "Qualifying wages" means the total amount of wages, as defined in section 3401 of the Internal Revenue Code, paid by an employer to an employee during a calendar year, except that "qualifying wages" does not include either of the following:

(1) That amount by which the total amount of wages paid by an employer to an employee during a calendar year exceeds the median household income for this state as determined by the most recently available figures from the United States census bureau;

(2) Any wages paid by an employer to an employee while the employee is enrolled in, or is eligible for, medicare.

Sec. 5101.911.  (A)(1) Beginning January 1, 2007, every nonprofit employer located in this state that, as of the first day of a calendar year, employs thirty thousand or more employees in this state and that, in the second preceding calendar year, did not incur total health insurance costs equal to at least six per cent of the total amount of qualifying wages paid to employees in this state during that second preceding calendar year, shall remit to the director of job and family services an amount equal to the difference between:

(a) Six per cent of the total amount of qualifying wages paid by the nonprofit employer to employees in this state during the second preceding calendar year; and

(b) The amount the nonprofit employer expended on health insurance costs during the second preceding calendar year.

(2) Beginning January 1, 2007, every employer located in this state other than a nonprofit employer that, as of the first day of a calendar year, employs thirty thousand or more employees in this state and that, in the second preceding calendar year, did not incur total health insurance costs equal to at least eight per cent of the total amount of qualifying wages paid to employees in this state during that second preceding calendar year, shall remit to the director of job and family services an amount equal to the difference between:

(a) Eight per cent of the total amount of qualifying wages paid by the employer to employees in this state during the second preceding calendar year; and

(b) The amount the employer expended on health insurance costs during the second preceding calendar year.

(B) Any amount required to be paid by a nonprofit employer or other employer under this section shall be paid by the employer and shall not be deducted from the wages or other remuneration paid by that employer to its employees.

(C) Any amount required to be paid by an employer under this section shall be paid in conjunction with the employer's filing of the report required under section 5101.912 of the Revised Code.

Sec. 5101.912.  (A) Beginning in 2007 and for each calendar year thereafter, every employer, including every nonprofit employer, that, as of the first day of a calendar year employs thirty thousand or more employees in this state, shall file a report with the director of job and family services that specifies all of the following:

(1) The total number of employees that were employed by the employer in this state during the second preceding calendar year, itemized according to whether the employees were full-time employees or part-time employees;

(2) The total amount of qualifying wages paid by the employer to those employees during the second preceding calendar year;

(3) The total amount of health insurance costs incurred by the employer during the second preceding calendar year;

(4) The manner in which the employer defines full-time and part-time employment status;

(5) The total number of employees employed by the employer in this state who were eligible to receive health insurance benefits from the employer during the second preceding calendar year, itemized according to whether the employees were full-time employees or part-time employees;

(6) The total number of employees employed by the employer in this state on behalf of whom the employer incurred health insurance costs during the second preceding calendar year, itemized according to whether the employees were full-time employees or part-time employees;

(7) The source of health insurance benefits for those employees employed by the employer in this state who were eligible for, but did not receive, health insurance benefits from the employer;

(8) Any other information required by the director.

(B) The report required under this section shall be filed on or before the thirty-first day of January. The report shall be filed in the form and manner prescribed by the director and shall be signed by the chief executive officer of the employer filing the report or, if the employer does not have a chief executive officer, shall be signed by another individual who performs for the employer functions substantially similar to those performed by a chief executive officer.

(C) Every employer filing a report under this section shall certify to the director, in affidavit form subject to the penalty for perjury, both of the following:

(1) The report was reviewed by the individual whose signature appears on the report.

(2) To the best of that individual's knowledge, information, and belief, all of the information contained in the report is true and accurate.

(D)(1) The report required under this section shall be accompanied by payment of any amount required to be paid by the employer under section 5101.911 of the Revised Code.

(2) Payments received by the director under this section shall be credited to the fair share health care fund created in section 5101.915 of the Revised Code.

(E)(1) An employer that fails to file the report required under this section on or before the thirty-first day of January of the calendar year in which it is due shall pay a fine of two hundred fifty dollars for each day that the report is not timely filed.

(2) An employer that fails to remit the payment required under section 5101.911 of the Revised Code on or before the thirty-first day of January of the calendar year in which payment is due shall pay a fine of two hundred fifty thousand dollars.

(3) Fines collected under divisions (E)(1) and (2) of this section shall be credited to the fair share health care fund.

Sec. 5101.913.  The director of job and family services, under Chapter 119. of the Revised Code, shall adopt rules that are necessary for the director to successfully and efficiently discharge the director's duties under sections 5101.91 to 5101.915 of the Revised Code. As part of the rules, the director shall establish all of the following:

(A) The form and manner in which employers shall file reports under section 5101.912 of the Revised Code;

(B) Any information to be included in reports filed under section 5101.912 of the Revised Code in addition to the information required to be included in those reports under division (A) of that section;

(C) Guidelines for imposing and collecting fines imposed under division (E) of section 5101.912 of the Revised Code;

(D) The manner in which employers may remit to the director payments required under section 5101.911 of the Revised Code;

(E) Procedures for verifying which employers in this state are required to file reports under section 5101.912 of the Revised Code by virtue of having thirty thousand or more employees as of the first day of a calendar year.

Sec. 5101.914.  Beginning in 2007, on or before the fifteenth day of March of each year, the director of job and family services shall file with the governor, the president and minority leader of the senate, and the speaker and minority leader of the house of representatives a written report that does all of the following:

(A) Identifies every employer that, in the immediately preceding January, filed a report under section 5101.912 of the Revised Code;

(B) Identifies every employer that, in the immediately preceding January, was required to file a report under section 5101.912 of the Revised Code but failed to do so;

(C) Summarizes all of the information included by each employer in reports filed under section 5101.912 of the Revised Code.

Sec. 5101.915.  There is hereby created in the state treasury the fair share health care fund. The fund shall consist of moneys received by the director of job and family services from employers making payments pursuant to sections 5101.911 and 5101.912 of the Revised Code; fines collected from employers pursuant to division (E) of section 5101.912 of the Revised Code; and any grants, gifts, or other contributions of money received by the director for deposit in the fund. All investment earnings on the cash balance in the fund shall be credited to the fund. All moneys in the fund shall be used for the exclusive purpose of supplementing this state's share of medicaid costs under Chapter 5111. of the Revised Code.