Bill S3033-2013

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

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

Details

Actions

  • May 7, 2014: referred to codes
  • May 7, 2014: DELIVERED TO ASSEMBLY
  • May 7, 2014: PASSED SENATE
  • Mar 27, 2014: ADVANCED TO THIRD READING
  • Mar 26, 2014: 2ND REPORT CAL.
  • Mar 25, 2014: 1ST REPORT CAL.359
  • Jan 8, 2014: REFERRED TO CODES
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • May 8, 2013: referred to codes
  • May 8, 2013: DELIVERED TO ASSEMBLY
  • May 8, 2013: PASSED SENATE
  • Mar 14, 2013: ADVANCED TO THIRD READING
  • Mar 13, 2013: 2ND REPORT CAL.
  • Mar 12, 2013: 1ST REPORT CAL.197
  • Jan 28, 2013: REFERRED TO CODES

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Codes - Mar 12, 2013
Ayes (16): Nozzolio, Boyle, DeFrancisco, Flanagan, Fuschillo, Gallivan, Golden, Lanza, O'Mara, Smith, Squadron, Perkins, Espaillat, Hoylman, Sampson, O'Brien
VOTE: COMMITTEE VOTE: - Codes - Mar 25, 2014
Ayes (13): Nozzolio, Boyle, DeFrancisco, Flanagan, Gallivan, Golden, Lanza, O'Mara, Griffo, Avella, Perkins, Espaillat, O'Brien
Ayes W/R (3): Squadron, Hoylman, Krueger

Memo

BILL NUMBER:S3033

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 eavesdropping 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 fraudulent provider. This can be a very rich incentive for them. The providers commit insurance fraud by recruiting patients who do not need treatment 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: 2012 - S.7451 - Passed Senate/Assembly Codes

FISCAL IMPLICATIONS: None.

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


Text

STATE OF NEW YORK ________________________________________________________________________ 3033 2013-2014 Regular Sessions IN SENATE January 28, 2013 ___________
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 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, 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 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 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, 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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