NY State Senate Bill 2025-S4874

Senate Bill S4874

2025-2026 Legislative Session

Criminalizes acting as a runner or soliciting or employing a runner to procure patients or clients

download bill text pdf

Current Bill Status - In Senate Committee Codes Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 13, 2025	referred to codes

2025-S4874 (ACTIVE) - Details

Current Committee:: Senate Codes
Law Section:: Penal Law
Laws Affected:: Amd §§176.00 & 460.10, add §§176.85 - 176.95, Pen L; amd §700.05, CP L
Versions Introduced in 2023-2024 Legislative Session:: S3556

2025-S4874 (ACTIVE) - Summary

Criminalizes acting as a runner or soliciting or employing a runner to procure patients or clients.

2025-S4874 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4874

SPONSOR: FAHY
 
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 fraudu-
lent 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 misde-
meanor, 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:
2016-2017: S7051

2018-2019:S424

2023-2024:S3556/A3640

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
On the first of November after becoming law.

2025-S4874 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4874
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 13, 2025
                                ___________
 
 Introduced  by  Sen.  FAHY  --  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 employ-
   ing a runner to procure patients or clients

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, 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 THEY, OR THEIR 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  DIRECTO-
 RIES,  NEWSPAPERS  AND  OTHER  PERIODICALS,  RADIO AND TELEVISION, BILL-
 BOARDS, 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
 OR  CUSTOMERS AS OTHERWISE AUTHORIZED BY LAW; OR (C) A PERSON WHO, AS AN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09377-01-5

 S. 4874                             2
 
 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  INSUR-
 ANCE 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 176.85,
 176.90 and 176.95 to read as follows:
 § 176.85 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 SUCH PERSON 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.
 § 176.90 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 SUCH PERSON 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.
 §  176.95  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 SUCH PERSON 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 134 of the laws of 2019, 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 relat-
 ing 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,
 140.25 and 140.30 relating to  burglary;  sections  145.05,  145.10  and
 S. 4874                             3
 
 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 coun-
 terfeiting; 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 176.90 AND 176.95  RELATING
 TO  UNLAWFUL  PROCUREMENT  OF  CLIENTS, PATIENTS AND CUSTOMERS; sections
 178.20 and 178.25 relating to criminal diversion of prescription medica-
 tions  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  relating  to
 bribery; sections 187.10, 187.15, 187.20 and 187.25 relating to residen-
 tial  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 phys-
 ical 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;
 section  230.34-a  relating  to  sex  trafficking  of  a child; 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 relat-
 ing to criminal sale of a firearm; section 265.50 relating to the crimi-
 nal manufacture, sale or transport of an undetectable firearm, rifle  or
 shotgun; section 275.10, 275.20, 275.30, or 275.40 relating to unauthor-
 ized 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 23 of the laws of 2024, 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,  promot-
 ing  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, 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 law, a crime
 S. 4874                             4
 
 formerly defined in section 130.40 of the penal law,  a  crime  formerly
 defined  in section 130.45 of the penal law, a crime formerly 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,  UNLAWFUL  PROCUREMENT  OF  CLIENTS,
 PATIENTS  OR CUSTOMERS IN THE SECOND DEGREE AS DEFINED IN SECTION 176.90
 OF THE PENAL LAW, UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR CUSTOMERS
 IN THE FIRST DEGREE AS DEFINED IN  SECTION  176.95  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
 S. 4874                             5
 
 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 defined in section 175.10  of  the  penal
 law,  tampering  with  public  records in the first degree as defined in
 section 175.25 of the penal law, offering a false instrument for  filing
 in the first degree as defined in section 175.35 of the penal law, issu-
 ing  a  false certificate as defined in section 175.40 of the penal law,
 UNLAWFUL PROCUREMENT OF CLIENTS, PATIENTS OR  CUSTOMERS  IN  THE  SECOND
 DEGREE  AS DEFINED IN SECTION 176.90 OF THE PENAL LAW, UNLAWFUL PROCURE-
 MENT OF CLIENTS, PATIENTS OR CUSTOMERS IN THE FIRST DEGREE AS DEFINED IN
 SECTION 176.95 OF THE PENAL  LAW,  criminal  diversion  of  prescription
 medications and prescriptions in the second degree as defined in section
 178.20  of the penal law, criminal diversion of prescription medications
 and prescriptions in the first degree as defined in  section  178.25  of
 the  penal  law,  residential  mortgage  fraud  in  the fourth degree as
 defined in section 187.10 of the penal law, residential  mortgage  fraud
 in the third degree as defined in section 187.15 of the penal law, resi-
 dential mortgage fraud in the second degree as defined in section 187.20
 of  the  penal  law,  residential  mortgage fraud in the first degree as
 defined in section 187.25 of the penal law, escape in the second  degree
 as  defined  in  section  205.10  of  the penal law, escape in the first
 degree as defined in section 205.15 of the penal  law,  absconding  from
 temporary  release  in  the first degree as defined in section 205.17 of
 the penal law, promoting  prison  contraband  in  the  first  degree  as
 defined in section 205.25 of the penal law, hindering prosecution in the
 second  degree  as defined in section 205.60 of the penal law, hindering
 prosecution in the first degree as defined  in  section  205.65  of  the
 penal  law,  sex  trafficking  as defined in section 230.34 of the penal
 law, sex trafficking of a child as defined in section  230.34-a  of  the
 penal  law,  criminal  possession  of  a  weapon  in the third degree as
 defined in subdivisions two, three and five of  section  265.02  of  the
 penal  law,  criminal  possession  of  a  weapon in the second degree as
 defined in section 265.03 of the penal law,  criminal  possession  of  a
 weapon  in  the  first  degree as defined in section 265.04 of the penal
 law, manufacture, transport, disposition and defacement of  weapons  and
 dangerous instruments and appliances defined as felonies in subdivisions
 one, two, and three of section 265.10 of the penal law, sections 265.11,
 265.12  and  265.13  of  the  penal law, or prohibited use of weapons as
 defined in subdivision two of section 265.35 of the penal law,  relating
 to  firearms  and other dangerous weapons, criminal manufacture, sale or
 transport of an undetectable firearm, rifle or  shotgun  as  defined  in
 section  265.50 of the penal law, or failure to disclose the origin of a
 recording in the first degree as defined in section 275.40 of the  penal
 law;
   § 5. This act shall take effect on the first of November next succeed-
 ing the date upon which it shall have become a law.

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