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; defines a "runner" 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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A855
SPONSOR: Weprin
 
TITLE OF BILL:
An act to amend the penal law, in relation to establishing the crime of
unlawful procurement of clients, patients or customers
 
PURPOSE:
To make the use of "runners" illegal in New York.
 
SUMMARY OF PROVISIONS:
Section one amends section 176.00 of the Penal Law to add three new
definitions "provider", "public media" and "runner". A "runner" is
defined as a person who, not a provider, who with the intent to obtain a
material pecuniary benefit, procurers or attempts to procure a client,
patient or customer at the direction of request of, in cooperation with,
while employed by, or with the intent to solicit a fee from, a provider
or from any person who creates the impression that he or she Cr his or
her practice can provide legal or health care services.
Section two of the bill adds three new sections to the Penal Law.
Section 176.75 makes it a class A misdemeanor to either act as a runner
on more than one occasion in a 12-month period or as a provider, in
violation of law or existing professional codes of conduct, uses, solic-
its, directs, hires or employs another person to act as a runner on more
than one occasion over any 12-month period an provides a material pecu-
niary benefit. Section 176.80 makes it a class E felony if the person
acts a runner on five or more occasions over a 12-month period or if the
aggregate benefit received as a result of being a runner exceeds $5,000.
Section 176.85 makes it a class D felony if the person acts as a runner
on ten or more occasions over a 12-month period or if the aggregate
benefit received as a result of being a runner exceeds $20,000.
Section three provides for conforming language in the sentencing stat-
utes.
Section four 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 prac-
tice which facilitates fraud and serves no legitimate purpose. A runner
is defined as a person who, not a provider, not with the intent to
obtain a material pecuniary benefit, procurers or attempts to procure a
client, patient or customer at the direction of, request of, in cooper-
ations with, while employed by, or with the intent to solicit a fee
from, a provider or from any person who creates the impression that he
or she or his or her practice can provide legal or health care 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 pay or 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.
 
COST TO STATE AND LOCAL GOVERNMENTS:
None.
 
LEGISLATIVE HISTORY:
02/09/17 referred to codes
01/03/18 referred to codes
 
EFFECTIVE DATE:
This act shall take effect on the first of November next succeeding that
date on which it shall have become a law.
STATE OF NEW YORK
________________________________________________________________________
855
2023-2024 Regular Sessions
IN ASSEMBLY
January 11, 2023
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Codes
AN ACT to amend the penal law, in relation to establishing the crime 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:
1 Section 1. Section 176.00 of the penal law is amended by adding three
2 new subdivisions 6, 7 and 8 to read as follows:
3 6. "Provider" means a health care professional, an owner or operator
4 of a health care practice or facility or an attorney.
5 7. "Public media" means any of the following means of communication,
6 provided that the use of such communication does not involve in-person
7 contact with a specific prospective client, patient or customer for the
8 purpose of retention, treatment or representation in a particular
9 matter: telephone directories, professional directories, newspapers and
10 other periodicals, radio and television, billboards, brochures, business
11 cards, newsletters, announcements, promotional items branding materials,
12 advertisements, websites and mailed or electronically transmitted writ-
13 ten communications, advertisements and brandings.
14 8. "Runner" means a person, not a provider, who with the intent to
15 obtain a material pecuniary benefit, procures or attempts to procure a
16 client, patient or customer at the direction of, request of, in cooper-
17 ation with, while employed by, or with intent to solicit a fee from, a
18 provider or from any person who creates the impression that he or she or
19 his or her practice can provide legal or health care services. Such term
20 shall not include a person who procures or attempts to procure clients,
21 patients or customers for a provider through public media or who refers
22 clients, patients or customers as authorized or permitted by law or in
23 accordance with existing professional codes of conduct governing the
24 professional practice of a provider. Nothing in this article shall be
25 deemed to prohibit an agent, broker or employee of a health maintenance
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01531-01-3
A. 855 2
1 organization from seeking to sell health maintenance organization cover-
2 age or health insurance coverage to an individual or group.
3 § 2. The penal law is amended by adding three new sections 176.85,
4 176.90 and 176.95 to read as follows:
5 § 176.85 Unlawful procurement of clients, patients or customers in the
6 third degree.
7 A person is guilty of unlawful procurement of clients, patients or
8 customers in the third degree when he or she knowingly:
9 1. Acts as a runner on more than one occasion during any twelve-month
10 period; or
11 2. As a provider, in violation of law or existing professional codes
12 of conduct governing the professional practice of the provider, uses,
13 solicits, directs, hires or employs another person to act as a runner on
14 more than one occasion over any twelve-month period and provides a mate-
15 rial pecuniary benefit.
16 Unlawful procurement of clients, patients or customers in the third
17 degree is a class A misdemeanor.
18 § 176.90 Unlawful procurement of clients, patients or customers in the
19 second degree.
20 1. A person is guilty of unlawful procurement of clients, patients or
21 customers in the second degree when he or she knowingly acts as a runner
22 on five or more occasions over any twelve-month period, or for a pecuni-
23 ary benefit that in the aggregate exceeds five thousand dollars in
24 value; or
25 2. As a provider, in violation of law or existing professional codes
26 of conduct governing the professional practice of the provider, knowing-
27 ly uses, solicits, directs, hires or employs one or more persons to act
28 as a runner on five or more occasions over any twelve-month period, or
29 provides a pecuniary benefit to the runner that in the aggregate exceeds
30 five thousand dollars in value.
31 Unlawful procurement of clients, patients or customers in the second
32 degree is a class E felony.
33 § 176.95 Unlawful procurement of clients, patients or customers in the
34 first degree.
35 1. A person is guilty of unlawful procurement of clients, patients or
36 customers in the first degree when he or she knowingly acts as a runner
37 on ten or more occasions over any twelve-month period, or for a pecuni-
38 ary benefit that in the aggregate exceeds twenty thousand dollars in
39 value; or
40 2. As a provider, in violation of law or existing professional codes
41 of conduct governing the professional practice of the provider, knowing-
42 ly uses, solicits, directs, hires or employs one or more persons to act
43 as a runner on ten or more occasions over any twelve-month period, or
44 provides a pecuniary benefit to the runner that in the aggregate exceeds
45 twenty thousand dollars in value.
46 Unlawful procurement of clients, patients or customers in the first
47 degree is a class D felony.
48 § 3. Paragraph (a) of subdivision 1 of section 460.10 of the penal
49 law, as amended by chapter 134 of the laws of 2019, is amended to read
50 as follows:
51 (a) Any of the felonies set forth in this chapter: sections 120.05,
52 120.10 and 120.11 relating to assault; sections 121.12 and 121.13 relat-
53 ing to strangulation; sections 125.10 to 125.27 relating to homicide;
54 sections 130.25, 130.30 and 130.35 relating to rape; sections 135.20 and
55 135.25 relating to kidnapping; sections 135.35 and 135.37 relating to
56 labor trafficking; section 135.65 relating to coercion; sections 140.20,
A. 855 3
1 140.25 and 140.30 relating to burglary; sections 145.05, 145.10 and
2 145.12 relating to criminal mischief; article one hundred fifty relating
3 to arson; sections 155.30, 155.35, 155.40 and 155.42 relating to grand
4 larceny; sections 177.10, 177.15, 177.20 and 177.25 relating to health
5 care fraud; article one hundred sixty relating to robbery; sections
6 165.45, 165.50, 165.52 and 165.54 relating to criminal possession of
7 stolen property; sections 165.72 and 165.73 relating to trademark coun-
8 terfeiting; sections 170.10, 170.15, 170.25, 170.30, 170.40, 170.65 and
9 170.70 relating to forgery; sections 175.10, 175.25, 175.35, 175.40 and
10 210.40 relating to false statements; sections 176.15, 176.20, 176.25 and
11 176.30 relating to insurance fraud; sections 176.90 and 176.95 relating
12 to unlawful procurement of clients, patients or customers; sections
13 178.20 and 178.25 relating to criminal diversion of prescription medica-
14 tions and prescriptions; sections 180.03, 180.08, 180.15, 180.25,
15 180.40, 180.45, 200.00, 200.03, 200.04, 200.10, 200.11, 200.12, 200.20,
16 200.22, 200.25, 200.27, 200.56, 215.00, 215.05 and 215.19 relating to
17 bribery; sections 187.10, 187.15, 187.20 and 187.25 relating to residen-
18 tial mortgage fraud, sections 190.40 and 190.42 relating to criminal
19 usury; section 190.65 relating to schemes to defraud; any felony defined
20 in article four hundred ninety-six; sections 205.60 and 205.65 relating
21 to hindering prosecution; sections 210.10, 210.15, and 215.51 relating
22 to perjury and contempt; section 215.40 relating to tampering with phys-
23 ical evidence; sections 220.06, 220.09, 220.16, 220.18, 220.21, 220.31,
24 220.34, 220.39, 220.41, 220.43, 220.46, 220.55, 220.60, 220.65 and
25 220.77 relating to controlled substances; sections 225.10 and 225.20
26 relating to gambling; sections 230.25, 230.30, and 230.32 relating to
27 promoting prostitution; section 230.34 relating to sex trafficking;
28 section 230.34-a relating to sex trafficking of a child; sections
29 235.06, 235.07, 235.21 and 235.22 relating to obscenity; sections 263.10
30 and 263.15 relating to promoting a sexual performance by a child;
31 sections 265.02, 265.03, 265.04, 265.11, 265.12, 265.13 and the
32 provisions of section 265.10 which constitute a felony relating to
33 firearms and other dangerous weapons; sections 265.14 and 265.16 relat-
34 ing to criminal sale of a firearm; section 265.50 relating to the crimi-
35 nal manufacture, sale or transport of an undetectable firearm, rifle or
36 shotgun; section 275.10, 275.20, 275.30, or 275.40 relating to unauthor-
37 ized recordings; and sections 470.05, 470.10, 470.15 and 470.20 relating
38 to money laundering; or
39 § 4. This act shall take effect on the first of November next succeed-
40 ing the date on which it shall have become a law.