NY Ment Hygiene L § 32.06 (2021)
2021 New York Laws MHY - Mental Hygiene Title E - General Provisions Article 32 - Regulation and Quality Control of Chemical Dependence Services and Compulsive Gambling Services. 32.06 - Prohibited Practices by Providers of Substance Use Disorder Services.

§ 32.06 Prohibited  practices  by  providers  of  substance use disorder           services.   1. For purposes of this section, unless the context  clearly  requires otherwise,  "provider"  shall mean any person, firm, partnership, group, practice association, fiduciary, employer, representative thereof or any other entity who is providing or purporting  to  provide  substance  use disorder  services. Provided, however, that "provider" shall not include a person receiving substance use disorder services from the provider.   2. No provider shall intentionally solicit, receive, accept  or  agree to  receive or accept any payment, benefit or other consideration in any form to the extent such payment, benefit or other consideration is given for the referral of a person as a potential patient  for  substance  use disorder services.   3.  No  provider  providing  or  purporting  to  provide substance use disorder services pursuant to this chapter,  shall  intentionally  make, offer,  give,  or  agree to make, offer, or give any payment, benefit or other consideration in any form to the extent such payment,  benefit  or other consideration is given for the referral of a person as a potential patient for substance use disorder services.   4. This section shall not apply to any:  (a)  lawful  payments  by  a health maintenance organization or health insurer, operating in accordance with article thirty-two or  forty-three of  the  insurance law or article forty-four of the public health law on behalf of their enrollees for such substance use  disorder  services  or other benefits required to be provided;  (b)  lawful  payments  to  or  by  a  provider to a health maintenance organization or health insurer  operating  in  accordance  with  article thirty-two  or forty-three of the insurance law or article forty-four of the public health law, as payment for services provided, a refund for an overpayment, a participating provider fee, or any similar remuneration;  (c) provider for an activity that, at the time of such activity, would have been lawful as specifically exempt, or  otherwise  not  prohibited, under  any  federal statute or regulations, including but not limited to 42 U.S.C. § 1320a-7b (b) or the regulations promulgated  thereunder,  if conducted  by a person, firm, partnership, group, practice, association, fiduciary, employer representative thereof or any other entity providing substance use disorder services;  (d) any employee or representative of a  provider  who  is  conducting marketing  activities,  where  the employee or representative identifies the  provider  represented  or  for  whom  or  which  the  employee   or representative  works, identifies that the employee or representative is a marketer and not a clinician  or  other  individual  who  can  provide diagnostic,  counseling  or  assessment  services,  and  such  marketing activities are limited to educating  the  potential  patient  about  the program  with no effort to steer or lead the potential patient to select or consider selection of the substance use  disorder  services  provider represented  or  for whom or which the employee or representative works; or  (e) commissions, fees or other remuneration lawfully paid to insurance agents as provided under the insurance law.   5.  Any  provider  who  intentionally  violates  the   provisions   of subdivision  two  or  three  of  this  section  shall  be  guilty  of  a misdemeanor as defined in the penal law.   6. If the commissioner has reason to believe a provider  has  violated subdivision  two  or three of this section, the commissioner may proceed to investigate and institute enforcement actions, as may  be  authorized pursuant to the applicable provisions of this article.    7.  The provisions of this section are in addition to any other civil, administrative  or  criminal  enforcement  actions  provided   by   law. Penalties authorized under this section may be imposed against corporate providers and individual providers.   8. The commissioner shall adopt and may amend rules and regulations to effectuate the provisions of this section.