2023 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  or  operating  or  purporting to operate a certified
recovery residence. 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 or as a resident at a certified recovery residence.
3.  No  provider  providing  or  purporting  to  provide substance use
disorder services or operating or  purporting  to  operate  a  certified
recovery  residence  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.