What's happening
This bill criminalizes the act of serving as or employing a "runner" to unlawfully procure clients, patients, or customers for legal or healthcare services.
Why it matters
Targets insurance and healthcare fraud. By criminalizing "runners"—those paid to recruit clients for providers to pursue insurance claims—this bill aims to curb fraudulent activities in legal and healthcare services, potentially reducing unnecessary or fraudulent claims that can drive up insurance costs for everyone.
Establishes clear definitions and exceptions. The bill carefully defines "runner," "provider," and "pecuniary benefit," and specifically exempts legitimate referrals (such as those through public media or authorized by law), helping to ensure that normal business practices and advertising are not inadvertently criminalized.
Imposes tiered criminal penalties. The legislation creates misdemeanor and felony offenses based on the number of offenses or the value of benefits involved, allowing law enforcement and prosecutors to address both minor and large-scale, organized operations, thereby serving as a deterrent to repeat and high-value offenders.
Expands investigative and prosecutorial tools. By classifying higher-degree offenses as felonies and including them in anti-racketeering and wiretapping statutes, the bill gives authorities greater resources to investigate and prosecute organized networks that profit from illegal client procurement, potentially improving overall enforcement efficiency.
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Who cares
Headline styles
Ban Patient Solicitation Runners
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.997
- Referred to codes
- Returned to senate
- Died in assembly
- Referred to codes
- Delivered to assembly
- Passed senateVote 54–8
- Advanced to third reading
- 2nd report cal.
Show 2 earlier actions
- 1st report cal.1301
- Referred to codes
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Patient Solicitation Runners
In Assembly Committee · Codes · Sponsor J. Gary Pretlow
Full text
5 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
424
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. SEWARD -- 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 employing a runner to procure patients or clients
The People of the State of New York, represented in Senate and Assembly, 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 directories, newspapers and other periodicals, radio and television, billboards, 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04556-01-7
S. 424 2
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 insurance 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.
§ 2. The penal law is amended by adding three new sections 176.75, 176.80 and 176.85 to read as follows: § 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. § 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. § 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.
§ 3. Paragraph (a) of subdivision 1 of section 460.10 of the penal law, as amended by chapter 368 of the laws of 2015, 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 relating 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; sections 135.35 and 135.37 relating to labor trafficking; section 135.65 relating to coercion; sections 140.20,
S. 424 3
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 counterfeiting; 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 and customers; sections 178.20 and 178.25 relating to criminal diversion of prescription medications 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, 200.56, 215.00, 215.05 and 215.19; sections 187.10, 187.15, 187.20 and 187.25 relating to residential mortgage fraud, sections 190.40 and 190.42 relating to criminal usury; section 190.65 relating to schemes to defraud; any felony defined in article four hundred ninety-six; 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, 220.65 and 220.77 relating to controlled substances; sections 225.10 and 225.20 relating to gambling; sections 230.25, 230.30, and 230.32 relating to promoting prostitution; section 230.34 relating to sex trafficking; 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; sections 265.14 and 265.16 relating to criminal sale of a firearm; 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
§ 4. Paragraph (b) of subdivision 8 of section 700.05 of the criminal procedure law, as amended by chapter 368 of the laws of 2015, 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, promoting 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
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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, aggravated labor trafficking as defined in section 135.37 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
S. 424 5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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. Criminalizes acting as a "runner" or soliciting or employing a "runner" to procure patients or clients.
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 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.
Legislative history
S.7051 of 2016.
Fiscal implications
None.
Effective date
On the first of November after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.