senate Bill S2004

Establishes the crime of unlawful procurement of clients, patients or customers

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 14 / Jan / 2011
    • REFERRED TO CODES
  • 13 / Jun / 2011
    • AMEND (T) AND RECOMMIT TO CODES
  • 13 / Jun / 2011
    • PRINT NUMBER 2004A
  • 16 / Jun / 2011
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 16 / Jun / 2011
    • ORDERED TO THIRD READING CAL.1299
  • 16 / Jun / 2011
    • PASSED SENATE
  • 16 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 16 / Jun / 2011
    • REFERRED TO CODES
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO CODES
  • 19 / Mar / 2012
    • AMEND BY RESTORING TO ORIGINAL PRINT 2004
  • 20 / Mar / 2012
    • REPORTED AND COMMITTED TO RULES
  • 21 / Mar / 2012
    • ORDERED TO THIRD READING CAL.440
  • 22 / Mar / 2012
    • PASSED SENATE
  • 22 / Mar / 2012
    • DELIVERED TO ASSEMBLY
  • 22 / Mar / 2012
    • REFERRED TO CODES

Summary

Establishes the crime of unlawful procurement of clients, patients or customers for knowingly acting as a runner, or using, soliciting, directing, hiring or employing another person to act as a runner; a "runner" is defined as a person, who knowingly, for profit, seeks to procure clients, patients or customers on behalf of an attorney or health care provider for the purpose of falsely or fraudulently obtaining benefits under a contract of insurance or asserting a claim against an insurer or insured for the services provided by such attorney or health care provider.

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Bill Details

Versions:
S2004
Legislative Cycle:
2011-2012
Current Committee:
Assembly Codes
Law Section:
Penal Law
Laws Affected:
Amd §§176.00 & 460.10, add §§176.75, 176.80 & 176.85, Pen L
Versions Introduced in 2009-2010 Legislative Cycle:
S1335

Sponsor Memo

BILL NUMBER:S2004

TITLE OF BILL:
An act
to amend the penal law, in relation to establishing the class E felony
of unlawful procurement of clients, patients or customers

PURPOSE:
To make the use of "runners" illegal in New York.

SUMMARY OF PROVISIONS:
Amends article 176 of the Penal Law as follows:
Section one of the bill adds three new definitions to Section 176.00,
defining "provider", "public media" and "runner." A "runner" is
defined as a person who, for a pecuniary benefit, procurers or
attempts to procure a client. patient. or customer at the direction
of request of or in cooperation with a provider whose purpose is to
seek to obtain benefits under a contract of insurance or assert a
claim against an insured or an insurance carrier for providing
services to the client, patient or customer.

Section two of the bill adds a new section 176.40 to the Penal Law to
make it a class E felony to use or act as a runner.

Section three of the bill provides for an effective date.

JUSTIFICATION:
On July 15, 1999 Governor Christie Whitman of New Jersey signed into
law legislation making it a crime to act as a runner or to solicit or
employ a runner to procure clients. This law was a result of
recommendations by that state's Governor's Task Force
on Health Care Fraud.

This legislation is patterned on that law. The use of runners is a
practice which facilitates fraud and serves no legitimate purpose. A
runner is defined as a person who receives a pecuniary benefit for
procuring or attempting to procure clients. patients or customers for
a provider whose purpose is to obtain benefits under an insurance
contract for providing services. Because most fraud schemes depend on
a large volume of patients. health care providers and attorneys
engaged in fraud will often pay third parties for recruiting clients,
patients and customers. Often the client, patient or customer
receives inadequate or inappropriate care and services.

The use of runners is unfortunately common in the New York
metropolitan area. In addition to inadequate medical care, the use of
runners inflates the cost of insurance which, in turn, is borne by
the insuring public. This bill makes it illegal for a provider to
payor offer to pay a pecuniary benefit to a runner. Soliciting
clients through the public media and referring clients, patients and
customers to a provider as is otherwise authorized by law is excluded
from the prohibitions under this bill. The tem1S of this proposal are
consistent with the Bar Association's Canon of Ethics regarding
referrals.


This bill makes it a class E felony to act as a runner or hiring
another person to act as a runner.

COST TO STATE AND LOCAL GOVERNMENTS:
None.

LEGISLATIVE HISTORY:
2009/2010 - S.1335 - Referred to Codes
2007/2008 - S.637 - Passed Senate /Assembly Codes
2005/2006 - S.487 - Passed Senate/Assembly Codes
2003/2004 - S.555 - Passed Senate/Assembly Codes
2001/2002 - S.123 - Passed Senate/Assembly Codes
2000 - S.6781-B - Passed Senate/Assembly Rules

EFFECTIVE DATE:
This act shall take effect on the first of November
next succeeding the date on which it shall have become a law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2004

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 14, 2011
                               ___________

Introduced  by  Sen.  SKELOS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Codes

AN ACT to amend the penal law, in relation to establishing the  class  E
  felony of unlawful procurement of clients, patients or customers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 176.00 of the penal law is amended by adding  three
new subdivisions 6, 7 and 8 to read as follows:
  6.  "PROVIDER" MEANS AN ATTORNEY, A HEALTH CARE PROFESSIONAL, AN OWNER
OR OPERATOR OF A HEALTH  CARE  PRACTICE  OR  FACILITY,  ANY  PERSON  WHO
CREATES  THE  IMPRESSION  THAT  HE  OR  SHE,  OR HIS OR HER PRACTICE CAN
PROVIDE LEGAL OR HEALTH CARE SERVICES, OR ANY PERSON EMPLOYED OR  ACTING
ON BEHALF OF ANY SUCH PERSON.
  7.  "PUBLIC  MEDIA" MEANS TELEPHONE DIRECTORIES, PROFESSIONAL DIRECTO-
RIES, NEWSPAPERS AND OTHER  PERIODICALS,  RADIO  AND  TELEVISION,  BILL-
BOARDS,  AND MAILED OR ELECTRONICALLY TRANSMITTED WRITTEN COMMUNICATIONS
THAT DO NOT  INVOLVE  IN-PERSON  CONTACT  WITH  A  SPECIFIC  PROSPECTIVE
CLIENT, PATIENT, OR CUSTOMER.
  8.  "RUNNER"  MEANS A PERSON WHO, FOR A PECUNIARY BENEFIT, PROCURES OR
ATTEMPTS TO PROCURE A CLIENT, PATIENT OR CUSTOMER AT THE  DIRECTION  OF,
REQUEST  OF  OR IN COOPERATION WITH A PROVIDER WHEN SUCH PERSON KNOWS OR
HAS REASON TO KNOW THAT THE PURPOSE OF  SUCH  PROVIDER  IS  TO  SEEK  TO
FALSELY  OR FRAUDULENTLY: OBTAIN BENEFITS UNDER A CONTRACT OF INSURANCE;
OR ASSERT A CLAIM AGAINST AN INSURED OR AN INSURANCE CARRIER FOR PROVID-
ING SERVICES TO THE CLIENT, PATIENT OR CUSTOMER.  SUCH  TERM  SHALL  NOT
INCLUDE  A  PERSON WHO PROCURES OR ATTEMPTS TO PROCURE CLIENTS, PATIENTS
OR CUSTOMERS FOR A PROVIDER THROUGH PUBLIC MEDIA OR A PERSON WHO  REFERS
CLIENTS,  PATIENTS  OR  CUSTOMERS AS AUTHORIZED BY LAW.  NOTHING IN THIS
ARTICLE SHALL BE DEEMED TO PROHIBIT AN AGENT, BROKER OR  EMPLOYEE  OF  A
HEALTH  MAINTENANCE ORGANIZATION FROM SEEKING TO SELL HEALTH MAINTENANCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06170-01-1

S. 2004                             2

ORGANIZATION COVERAGE OR HEALTH INSURANCE COVERAGE TO AN  INDIVIDUAL  OR
GROUP.
  S  2.  The penal law is amended by adding a new section 176.75 to read
as follows:
S 176.75 UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS.
  A PERSON IS GUILTY OF UNLAWFUL PROCUREMENT  OF  CLIENTS,  PATIENTS  OR
CUSTOMERS WHEN, HE OR SHE KNOWINGLY:
  1. ACTS AS A RUNNER; OR
  2.  USES, SOLICITS, DIRECTS, HIRES OR EMPLOYS ANOTHER PERSON TO ACT AS
A RUNNER.
  UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS IS  A  CLASS  E
FELONY.
  S 3. This act shall take effect on the first of November next succeed-
ing the date on which it shall have become a law.

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