§ 406. Hospitals; refunds, waivers and compromises of bills. 1.
Moneys heretofore or hereafter received by the department for the
accounts of any of the hospitals or institutions of the department may
be refunded to the person or party for whose account same were received,
and within six years thereafter upon satisfactory proof being submitted
to the commissioner that:

a. such moneys were in excess of the charges imposed upon or incurred
by the party, pursuant to law; or,

b. such moneys were received as reimbursement for care, maintenance
and treatment of patients, and such care, maintenance and treatment has
not been rendered or furnished; or,

c. such moneys were received from the funds of patients not available
for payment for the care, maintenance and treatment of patients.

2. Notwithstanding the provisions of section one hundred twenty-one of
the state finance law, such refunds shall, upon approval by the
commissioner and after audit by the comptroller, be paid from any moneys
in the custody of the department received as reimbursement for the care,
maintenance and treatment of patients in the several hospitals in the
department.

3. The commissioner may in his discretion, in proper cases, where
substantial justice will best be served thereby, waive bills for the
maintenance, care and treatment received or furnished to patients in any
of the hospitals or institutions of the department or compromise any
portion of such bills. Such waiver or compromise shall be made only upon
prior approval of the comptroller and the attorney general when they
deem it to be for the best interest of the state.