Bill Text: NY S06544 | 2017-2018 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Prohibits certain practices concerning or consideration for referrals by providers of substance use disorder services.

Spectrum: Moderate Partisan Bill (Republican 11-2)

Status: (Engrossed - Dead) 2018-06-18 - SUBSTITUTED BY A7689A [S06544 Detail]

Download: New_York-2017-S06544-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         6544--A
            Cal. No. 251
                               2017-2018 Regular Sessions
                    IN SENATE
                                      June 1, 2017
                                       ___________
        Introduced  by Sens. AKSHAR, CARLUCCI, FUNKE, HELMING, JACOBS, KAMINSKY,
          MARCHIONE, MURPHY,  O'MARA,  PHILLIPS,  RANZENHOFER,  RITCHIE  --  (at
          request  of  the Office of Alcoholism and Substance Abuse Services) --
          read twice and ordered printed, and when printed to  be  committed  to
          the  Committee  on  Alcoholism  and  Drug  Abuse -- recommitted to the
          Committee on Alcoholism and Drug Abuse in accordance with Senate  Rule
          6,  sec. 8 -- reported favorably from said committee, ordered to first
          and second report, ordered to a third  reading,  amended  and  ordered
          reprinted, retaining its place in the order of third reading
        AN  ACT  to  amend  the  mental  hygiene law, in relation to prohibiting
          deceptive acts and practices for substance use disorder treatment
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The mental hygiene law is amended by adding a new section
     2  32.06 to read as follows:
     3  § 32.06 Prohibition on deceptive acts and practices.
     4    (a) Definitions. As used in this section, the  following  terms  shall
     5  have  the following meanings, unless the context clearly requires other-
     6  wise:
     7    (1) "Addiction professional" shall mean a professional who, within the
     8  scope of their license issued pursuant to title eight of  the  education
     9  law  or  credential issued pursuant to section 19.07 of this chapter, if
    10  working  in  an  individual  capacity,  provides  substance  abuse   and
    11  prevention services.
    12    (2) "Credentialed professional" shall include any person who is in the
    13  process of applying for a credential issued by the commissioner pursuant
    14  to  section 19.07 of this chapter, or who has a valid credential, or who
    15  is eligible for credential renewal;
    16    (3) "Health care provider" shall mean a practitioner in an  individual
    17  practice, group practice, partnership, professional corporation or other
    18  authorized form of association, a hospital or other health care institu-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10119-02-8
        S. 6544--A                          2
     1  tion issued an operating certificate pursuant to article twenty-eight of
     2  the  public health law or article thirty-one of this title or this arti-
     3  cle, and any other  purveyor  of  health  or  health  related  items  or
     4  services.
     5    (4)  "Potential  service  recipient"  shall  mean  a  person  who is a
     6  substance abuser, substance dependent, in  need  of  services  to  avoid
     7  becoming a substance abuser, or substance dependent.
     8    (5) "Substance abuse program" shall mean any public or private person,
     9  corporation,  partnership, agency, either profit or non-profit, or state
    10  or municipal government which provides, or holds itself out  as  provid-
    11  ing,  substance  abuse  services,  in either a residential or ambulatory
    12  setting, to persons who are substance abusers, substance  dependent,  in
    13  need  of services to avoid becoming substance abusers, substance depend-
    14  ent or to significant others.
    15    (6) "Substance abuse services" shall include services to  inhibit  the
    16  onset  of substance abuse or substance dependence; to address the social
    17  dysfunction, medical problems and  other  disabilities  associated  with
    18  substance  abuse  or  substance  dependence, and to rehabilitate persons
    19  suffering from substance abuse or dependence.
    20    (b) It is unlawful for any person, including any individual, addiction
    21  professional, credentialed professional, health  care  provider,  health
    22  care facility or substance abuse program to:
    23    (1)  Promote,  offer,  give,  solicit  or  pay  any commission, bonus,
    24  rebate, kickback, or bribe, directly or indirectly, in cash or in  kind,
    25  or  engage  in  any  split-fee  arrangement, to induce the referral of a
    26  potential service recipient or in connection with the performance  of  a
    27  substance abuse service;
    28    (2)  Solicit,  agree  to  receive  or  receive  any commission, bonus,
    29  rebate, kickback, or bribe, directly or indirectly, in cash or in  kind,
    30  or  engage  in  any  split-fee  arrangement,  in any form whatsoever, in
    31  return for referring a potential service recipient or in connection with
    32  the performance of a substance abuse service; or
    33    (3) Aid, abet, advise, or otherwise participate in the conduct prohib-
    34  ited under paragraph one or two of this subdivision.
    35    (c) This section shall not apply to:
    36    (1) Any discount, payment, waiver of payment, or payment practice  not
    37  prohibited  by 42 U.S.C. § 1320a-7b(b) or regulations promulgated there-
    38  under.
    39    (2) Payments to  an  addiction  professional,  health  care  provider,
    40  health care facility or substance abuse program for professional consul-
    41  tation services.
    42    (3)  Commissions,  fees, or other remuneration lawfully paid to insur-
    43  ance agents as provided under the insurance law.
    44    (4) Payments by a health insurer who reimburses, provides,  offers  to
    45  provide,  or  administers  health,  mental  health,  or  substance abuse
    46  services under a health benefit plan.
    47    (5) Payments to or by an addiction professional, health care provider,
    48  health care facility, a  health  care  provider  network  entity,  or  a
    49  substance  abuse  program,  that has contracted with a health insurer, a
    50  health care purchasing group, or the Medicare  or  Medicaid  program  to
    51  provide  health,  mental  health,  or  substance  abuse services under a
    52  health benefit plan when such payments are for services under the plan.
    53    (6) Payments by  an  addiction  professional,  health  care  provider,
    54  health  care  facility  or  substance  abuse program to a health, mental
    55  health, or substance abuse information service that provides information
    56  upon  request  and  without  charge  to  consumers  about  providers  of
        S. 6544--A                          3
     1  substance  abuse  services  to  enable  consumers  to select appropriate
     2  substance abuse programs, provided that such information service:
     3    i. Does not attempt through its standard questions for solicitation of
     4  consumer criteria or through any other means to steer or lead a consumer
     5  to  select or consider selection of a particular addiction professional,
     6  substance abuse services or substance abuse program;
     7    ii. Does not provide or represent itself as  providing  diagnostic  or
     8  counseling services or assessments of an individual's need for substance
     9  abuse  services  and does not make any promises of cure or guarantees of
    10  treatment;
    11    iii. Does not provide or arrange for transportation of a  consumer  to
    12  or from the location of a substance abuse service or program; and
    13    iv.  Charges  and collects fees from an addiction professional, health
    14  care provider, health care facility or substance abuse  program  partic-
    15  ipating in its services that are set in advance, are consistent with the
    16  fair  market  value for those information services, and are not based on
    17  the potential value of a potential service recipient or recipients to  a
    18  substance  abuse  program  or  of  the goods or services provided by the
    19  substance abuse program.
    20    (d) Any individual, including an officer, partner, agent, attorney, or
    21  other representative of a partnership, association, corporation, limited
    22  liability company or partnership, public or private agency or  any  part
    23  thereof  who  knowingly  fails  to  comply  with  the provisions of this
    24  section shall be guilty of a misdemeanor as defined in the penal law.
    25    (e) If the commissioner has reason to believe that there is  an  indi-
    26  vidual, partnership, association, corporation, limited liability company
    27  or  partnership,  public or private agency or any part thereof violating
    28  subdivision (b) of this section, he or she  shall  proceed  pursuant  to
    29  applicable  sections  of  this  chapter  including  but  not  limited to
    30  sections 32.13, 32.15, 32.19 and 32.27 of this article.
    31    (f) The party bringing  an  action  under  this  section  may  recover
    32  reasonable  expenses  in obtaining injunctive relief, including, but not
    33  limited to, investigative  costs,  court  costs,  reasonable  attorney's
    34  fees, witness costs, and deposition expenses.
    35    (g) The provisions of this section are in addition to any other civil,
    36  administrative,  or  criminal actions provided by law and may be imposed
    37  against both corporate and individual defendants.
    38    § 2. This act shall take effect immediately.