senate Bill S7451

2011-2012 Legislative Session

Criminalizes acting as a runner or soliciting or employing a runner to procure patients or clients

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Archive: Last Bill Status - Passed Senate


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 13, 2012 referred to codes
delivered to assembly
passed senate
ordered to third reading cal.1229
committee discharged and committed to rules
May 21, 2012 referred to codes

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Co-Sponsors

S7451 - Bill Details

See Assembly Version of this Bill:
A9768A
Current Committee:
Assembly Codes
Law Section:
Penal Law
Laws Affected:
Amd §§176.00 & 460.10, add §§176.75 - 176.85, Pen L; amd §700.05, CP L

S7451 - Bill Texts

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Criminalizes acting as a runner or soliciting or employing a runner to procure patients or clients.

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BILL NUMBER:S7451

TITLE OF BILL:
An act to amend the penal law and the criminal procedure law, in
relation to criminalizing acting as a runner or soliciting or employing
a runner to procure patients or clients

PURPOSE:
Creates the crime of unlawful procurement of clients in three degrees.

SUMMARY OF PROVISIONS:
Section 1 adds three new subdivisions to section 176.00 of the Penal Law
defining "provider," "public media," "runner," and "pecuniary benefit."

Section 2 adds three new Penal Law sections, 176.75, 176.80, and 176.85,
for Unlawful Procurement of Clients, Patients or Customers in the Third,
Second, and First Degrees.

Section 3 amends the definition of "criminal act" in Enterprise
Corruption to include the two new crimes that are felonies.

Section 4 amends the definition of "designated offense" in the eaves-
dropping and video surveillance warrants provision to include the two
new crimes that are felonies.

JUSTIFICATION:
Other states have for many years criminalized acting as a runner or
soliciting or employing a runner to procure patients or clients. It is
long overdue in New York, a state with one of the highest average car
insurance rates in the nation.

This legislation is patterned on the New Jersey runner law and on the
federal Medicare-Medicaid Anti-Kickback Act, 42 U.S.C. § 1320a-7b, both
of which make it a crime intentionally to pay for patient referrals.
Such a measure is crucial in New York as a way to prevent fraudulent
activity by drying up the supply of patients for clinics and other
providers whose entire purpose is to bill no-fault insurance carriers
without regard to the legitimacy of any particular claim. The use of
runners is unfortunately common in the New York metropolitan area.

A "runner" is a person who is paid for each patient they send to a frau-
dulent provider. This can be a very rich incentive for them. The provid-
ers commit insurance fraud by recruiting patients who do not need treat-
ment or were not in a car accident, exaggerating illnesses, or, as is
all too common, staging accidents. Without the runners, the patient
supply for fraudulent clinics would dry up, and New York residents could
save tens if not hundreds of millions of dollars.

This bill would criminalize runners or providers who use runners and
make it either a class A misdemeanor, class E felony, or class D felony,

depending on the aggregate value of the pecuniary benefit or the number
of times a person works as a runner.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the first of November after becoming law.

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

                                  7451

                            I N  S E N A T E

                              May 21, 2012
                               ___________

Introduced  by  Sens.  SKELOS,  GOLDEN, O'MARA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Codes

AN ACT to amend the  penal  law  and  the  criminal  procedure  law,  in
  relation  to criminalizing acting as a runner or soliciting or employ-
  ing a runner to procure patients or clients

  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 four
new subdivisions 6, 7, 8 and 9 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, ANY PERSON EMPLOYED OR ACTING ON
BEHALF OF ANY  SUCH  PERSON,  OR  ANY  PERSON  PROVIDING  MANAGEMENT  OR
CONSULTING SERVICES TO 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 DIRECT 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 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, OR TO OBTAIN  BENEFITS  UNDER  OR  ASSERT  A  CLAIM
AGAINST  A STATE OR FEDERAL HEALTH CARE BENEFITS PROGRAM OR PRESCRIPTION
DRUG ASSISTANCE PROGRAM.  "RUNNER" SHALL NOT INCLUDE (A)  A  PERSON  WHO
PROCURES  OR  ATTEMPTS  TO  PROCURE CLIENTS, PATIENTS OR CUSTOMERS FOR A
PROVIDER THROUGH PUBLIC MEDIA; (B) A PERSON WHO REFERS CLIENTS, PATIENTS
OR CUSTOMERS AS OTHERWISE AUTHORIZED BY LAW; OR (C) A PERSON WHO, AS  AN
AGENT,  BROKER  OR  EMPLOYEE  OF  A  HEALTH  MAINTENANCE ORGANIZATION AS
DEFINED IN SECTION FORTY-FOUR HUNDRED ONE  OF  THE  PUBLIC  HEALTH  LAW,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15939-01-2

S. 7451                             2

SEEKS  TO SELL HEALTH MAINTENANCE ORGANIZATION COVERAGE OR HEALTH INSUR-
ANCE COVERAGE TO AN INDIVIDUAL OR GROUP.
  9.  "PECUNIARY  BENEFIT"  MEANS  GOODS,  MONEY,  PROPERTY, SERVICES OR
ANYTHING OF VALUE, OR AN AGREEMENT TO CONFER OR RECEIVE ANY SUCH  GOODS,
MONEY, PROPERTY, SERVICES, OR THING OF VALUE.
  S  2.  The  penal  law is amended by adding three new sections 176.75,
176.80 and 176.85 to read as follows:
S 176.75 UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS  IN  THE
             THIRD DEGREE.
  A  PERSON  IS  GUILTY  OF UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR
CUSTOMERS IN THE THIRD DEGREE WHEN HE OR SHE KNOWINGLY:
  1. ACTS AS A RUNNER ON ONE OR MORE OCCASIONS; OR
  2. USES, SOLICITS, DIRECTS, HIRES OR EMPLOYS ANOTHER PERSON TO ACT  AS
A RUNNER ON ONE OR MORE OCCASIONS.
  UNLAWFUL  PROCUREMENT  OF  CLIENTS, PATIENTS OR CUSTOMERS IN THE THIRD
DEGREE IS A CLASS A MISDEMEANOR.
S 176.80 UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS  IN  THE
             SECOND DEGREE.
  A  PERSON  IS  GUILTY  OF UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR
CUSTOMERS IN THE SECOND DEGREE WHEN HE OR SHE KNOWINGLY:
  1. ACTS AS A RUNNER ON ONE OR MORE OCCASIONS FOR A  PECUNIARY  BENEFIT
THAT IN THE AGGREGATE EXCEEDS TWO THOUSAND FIVE HUNDRED DOLLARS IN VALUE
OR ACTS AS A RUNNER ON FIVE OR MORE OCCASIONS; OR
  2.  USES,  SOLICITS,  DIRECTS, HIRES OR EMPLOYS ONE OR MORE PERSONS TO
ACT AS A RUNNER ON ONE OR MORE OCCASIONS FOR A PECUNIARY BENEFIT THAT IN
THE AGGREGATE EXCEEDS TWO THOUSAND FIVE  HUNDRED  DOLLARS  IN  VALUE  OR
USES,  SOLICITS, DIRECTS, HIRES OR EMPLOYS ONE OR MORE PERSONS TO ACT AS
A RUNNER ON FIVE OR MORE OCCASIONS.
  UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS IN  THE  SECOND
DEGREE IS A CLASS E FELONY.
S  176.85  UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS IN THE
             FIRST DEGREE.
  A PERSON IS GUILTY OF UNLAWFUL PROCUREMENT  OF  CLIENTS,  PATIENTS  OR
CUSTOMERS IN THE FIRST DEGREE WHEN HE OR SHE KNOWINGLY:
  1.  ACTS  AS A RUNNER ON ONE OR MORE OCCASIONS FOR A PECUNIARY BENEFIT
THAT IN THE AGGREGATE EXCEEDS FIVE THOUSAND DOLLARS IN VALUE OR ACTS  AS
A RUNNER ON TEN OR MORE OCCASIONS; OR
  2.  USES,  SOLICITS,  DIRECTS, HIRES OR EMPLOYS ONE OR MORE PERSONS TO
ACT AS A RUNNER ON ONE OR MORE OCCASIONS FOR A PECUNIARY BENEFIT THAT IN
THE AGGREGATE EXCEEDS FIVE THOUSAND DOLLARS OR USES, SOLICITS,  DIRECTS,
HIRES  OR  EMPLOYS ONE OR MORE PERSONS TO ACT AS A RUNNER ON TEN OR MORE
OCCASIONS.
  UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS  IN  THE  FIRST
DEGREE IS A CLASS D FELONY.
  S  3.  Paragraph  (a)  of subdivision 1 of section 460.10 of the penal
law, as amended by chapter 405 of the laws of 2010, is amended  to  read
as follows:
  (a)  Any  of  the felonies set forth in this chapter: sections 120.05,
120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
ing to strangulation; sections 125.10 to 125.27  relating  to  homicide;
sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
135.25  relating  to  kidnapping; section 135.35 relating to labor traf-
ficking; section 135.65 relating to coercion;  sections  140.20,  140.25
and  140.30  relating  to  burglary;  sections 145.05, 145.10 and 145.12
relating to criminal mischief; article one  hundred  fifty  relating  to
arson;  sections  155.30,  155.35,  155.40  and 155.42 relating to grand

S. 7451                             3

larceny; sections 177.10, 177.15, 177.20 and 177.25 relating  to  health
care  fraud;  article  one  hundred  sixty relating to robbery; sections
165.45, 165.50, 165.52 and 165.54 relating  to  criminal  possession  of
stolen  property; sections 165.72 and 165.73 relating to trademark coun-
terfeiting; sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65  and
170.70  relating to forgery; sections 175.10, 175.25, 175.35, 175.40 and
210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
176.30 relating to insurance fraud; SECTIONS 176.80 AND 176.85  RELATING
TO  UNLAWFUL  PROCUREMENT  OF  CLIENTS,  PATIENTS OR CUSTOMERS; sections
178.20 and 178.25 relating to criminal diversion of prescription medica-
tions  and  prescriptions;  sections  180.03,  180.08,  180.15,  180.25,
180.40,  180.45, 200.00, 200.03, 200.04, 200.10, 200.11, 200.12, 200.20,
200.22, 200.25, 200.27, 215.00, 215.05 and 215.19 relating  to  bribery;
sections 187.10, 187.15, 187.20 and 187.25 relating to residential mort-
gage  fraud,  sections  190.40  and  190.42  relating to criminal usury;
section 190.65 relating to  schemes  to  defraud;  sections  205.60  and
205.65  relating  to hindering prosecution; sections 210.10, 210.15, and
215.51 relating to perjury and  contempt;  section  215.40  relating  to
tampering  with  physical  evidence;  sections  220.06,  220.09, 220.16,
220.18, 220.21, 220.31, 220.34, 220.39, 220.41, 220.43, 220.46,  220.55,
220.60 and 220.77 relating to controlled substances; sections 225.10 and
225.20  relating to gambling; sections 230.25, 230.30, and 230.32 relat-
ing to promoting prostitution; section 230.34 relating to sex  traffick-
ing;  sections  235.06, 235.07, 235.21 and 235.22 relating to obscenity;
sections 263.10 and 263.15 relating to promoting a sexual performance by
a child; sections 265.02, 265.03, 265.04, 265.11, 265.12, 265.13 and the
provisions of section 265.10  which  constitute  a  felony  relating  to
firearms  and  other  dangerous  weapons; and sections 265.14 and 265.16
relating to criminal sale of a  firearm;  and  section  275.10,  275.20,
275.30,  or  275.40  relating  to  unauthorized recordings; and sections
470.05, 470.10, 470.15 and 470.20 relating to money laundering; or
  S 4. Paragraph (b) of subdivision 8 of section 700.05 of the  criminal
procedure law, as amended by chapter 405 of the laws of 2010, is amended
to read as follows:
  (b)  Any  of  the  following felonies: assault in the second degree as
defined in section 120.05 of the penal law, assault in the first  degree
as  defined in section 120.10 of the penal law, reckless endangerment in
the first degree as defined in section 120.25 of the penal law,  promot-
ing  a  suicide  attempt  as defined in section 120.30 of the penal law,
strangulation in the second degree as defined in section 121.12  of  the
penal  law,  strangulation  in  the  first  degree as defined in section
121.13 of the penal law, criminally negligent  homicide  as  defined  in
section  125.10  of  the penal law, manslaughter in the second degree as
defined in section 125.15 of the penal law, manslaughter  in  the  first
degree  as  defined  in  section  125.20 of the penal law, murder in the
second degree as defined in section 125.25 of the penal law,  murder  in
the first degree as defined in section 125.27 of the penal law, abortion
in  the  second  degree  as  defined in section 125.40 of the penal law,
abortion in the first degree as defined in section 125.45 of  the  penal
law,  rape in the third degree as defined in section 130.25 of the penal
law, rape in the second degree as defined in section 130.30 of the penal
law, rape in the first degree as defined in section 130.35 of the  penal
law,  criminal  sexual  act  in  the  third degree as defined in section
130.40 of the penal law, criminal sexual act in  the  second  degree  as
defined  in  section 130.45 of the penal law, criminal sexual act in the
first degree as defined in section 130.50 of the penal law, sexual abuse

S. 7451                             4

in the first degree as defined in  section  130.65  of  the  penal  law,
unlawful  imprisonment  in the first degree as defined in section 135.10
of the penal law, kidnapping in the second degree as defined in  section
135.20  of  the  penal law, kidnapping in the first degree as defined in
section 135.25 of the penal law, labor trafficking as defined in section
135.35 of the penal law, custodial interference in the first  degree  as
defined in section 135.50 of the penal law, coercion in the first degree
as  defined in section 135.65 of the penal law, criminal trespass in the
first degree as defined in section 140.17 of the penal law, burglary  in
the third degree as defined in section 140.20 of the penal law, burglary
in  the  second  degree  as  defined in section 140.25 of the penal law,
burglary in the first degree as defined in section 140.30 of  the  penal
law,  criminal mischief in the third degree as defined in section 145.05
of the penal law, criminal mischief in the second degree as  defined  in
section  145.10  of the penal law, criminal mischief in the first degree
as defined in section 145.12 of the penal law, criminal tampering in the
first degree as defined in section 145.20 of the penal law, arson in the
fourth degree as defined in section 150.05 of the penal  law,  arson  in
the third degree as defined in section 150.10 of the penal law, arson in
the  second  degree as defined in section 150.15 of the penal law, arson
in the first degree as defined in section 150.20 of the penal law, grand
larceny in the fourth degree as defined in section 155.30 of  the  penal
law,  grand  larceny in the third degree as defined in section 155.35 of
the penal law, grand larceny in the second degree as defined in  section
155.40 of the penal law, grand larceny in the first degree as defined in
section  155.42 of the penal law, health care fraud in the fourth degree
as defined in section 177.10 of the penal law, health care fraud in  the
third  degree as defined in section 177.15 of the penal law, health care
fraud in the second degree as defined in section  177.20  of  the  penal
law,  health care fraud in the first degree as defined in section 177.25
of the penal law, robbery in the third  degree  as  defined  in  section
160.05  of  the  penal  law,  robbery in the second degree as defined in
section 160.10 of the penal law, robbery in the first degree as  defined
in  section  160.15  of the penal law, unlawful use of secret scientific
material as defined  in  section  165.07  of  the  penal  law,  criminal
possession of stolen property in the fourth degree as defined in section
165.45  of  the penal law, criminal possession of stolen property in the
third degree as defined in section 165.50 of  the  penal  law,  criminal
possession of stolen property in the second degree as defined by section
165.52  of  the penal law, criminal possession of stolen property in the
first degree as defined by section 165.54 of the  penal  law,  trademark
counterfeiting  in the second degree as defined in section 165.72 of the
penal law, trademark counterfeiting in the first degree  as  defined  in
section 165.73 of the penal law, forgery in the second degree as defined
in  section  170.10  of  the  penal  law, forgery in the first degree as
defined in section 170.15 of the penal law,  criminal  possession  of  a
forged  instrument  in the second degree as defined in section 170.25 of
the penal law, criminal possession of a forged instrument in  the  first
degree  as  defined  in  section  170.30  of  the  penal  law,  criminal
possession of forgery devices as defined in section 170.40 of the  penal
law,  falsifying  business  records  in  the  first degree as defined in
section 175.10 of the penal law, tampering with public  records  in  the
first  degree  as defined in section 175.25 of the penal law, offering a
false instrument for filing in the first degree as  defined  in  section
175.35  of  the  penal  law,  issuing  a false certificate as defined in
section 175.40 of  the  penal  law,  UNLAWFUL  PROCUREMENT  OF  CLIENTS,

S. 7451                             5

PATIENTS  OR CUSTOMERS IN THE SECOND DEGREE AS DEFINED IN SECTION 176.80
OF THE PENAL LAW, UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS
IN THE FIRST DEGREE AS DEFINED IN SECTION 176.85 OF THE PENAL LAW, crim-
inal  diversion  of  prescription  medications  and prescriptions in the
second degree as defined in section 178.20 of the  penal  law,  criminal
diversion  of  prescription  medications  and prescriptions in the first
degree as defined in section 178.25 of the penal law, residential  mort-
gage  fraud  in  the  fourth  degree as defined in section 187.10 of the
penal law, residential mortgage fraud in the third degree as defined  in
section  187.15  of  the  penal  law,  residential mortgage fraud in the
second degree as defined in section 187.20 of the penal law, residential
mortgage fraud in the first degree as defined in section 187.25  of  the
penal  law,  escape in the second degree as defined in section 205.10 of
the penal law, escape in the first degree as defined in  section  205.15
of  the penal law, absconding from temporary release in the first degree
as defined in section 205.17 of the penal law, promoting prison  contra-
band  in the first degree as defined in section 205.25 of the penal law,
hindering prosecution in the second degree as defined in section  205.60
of  the  penal law, hindering prosecution in the first degree as defined
in section 205.65 of the  penal  law,  sex  trafficking  as  defined  in
section  230.34 of the penal law, criminal possession of a weapon in the
third degree as defined in subdivisions two, three and five  of  section
265.02  of  the penal law, criminal possession of a weapon in the second
degree  as  defined  in  section  265.03  of  the  penal  law,  criminal
possession  of a weapon in the first degree as defined in section 265.04
of the penal law, manufacture, transport, disposition and defacement  of
weapons  and dangerous instruments and appliances defined as felonies in
subdivisions one, two, and three of section 265.10  of  the  penal  law,
sections  265.11,  265.12 and 265.13 of the penal law, or prohibited use
of weapons as defined in subdivision two of section 265.35 of the  penal
law,  relating  to  firearms  and other dangerous weapons, or failure to
disclose the origin of a recording in the first  degree  as  defined  in
section 275.40 of the penal law;
  S 5. This act shall take effect on the first of November next succeed-
ing the date upon which it shall have become a law.

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