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and credited to the department of social services medical assistance program general fund local assistance account; provided, however, solely for the purposes of the calculations pursuant to subdivisions (a), (b) and (c) of section 11 of chapter 703 of the laws of 1988, such' reallocated' funds shall be deemed distributed in accordance with subparagraphs (i) and (ii), of paragraph (f) of subdivision 19 of section 2807-c of the public health law.

(b) Notwithstanding any inconsistent provision of law an amount of up to eight million dollars from funds accumulated in the bad debt and charity care regional pools created pursuant to subdivision nine of section twenty-eight hundred eight-c, subdivision fifteen of section twenty-eight hundred seven-a or paragraph (a) of subdivision sixteen of section twenty-eight hundred seven-c of the public health law shall be transferred and credited to the department of social services medical assistance program general fund - local assistance account.

§ 100. Notwithstanding any inconsistent provision of law or regulation to the contrary, the sum of fourteen million one hundred thousand dollars shall be reallocated from funds otherwise to be distributed in accordance with paragraph (b-1) of subdivision 19 of section 2807-c of the public health law and credited to the department of social services medical assistance program general

fund - local assistance account; provided, however, such reallocated funds shall be deemed distributed in accordance with paragraph (b-1) of subdivision 19 of section 2807-C of the public health law. The commissioner may borrow from the regional or statewide pool reserves established pursuant to section 2807-c of the public health law such funds as shall be necessary to meet 1992 and 1993 premium requirements pursuant to paragraph (b-1) of subdivision 19 of section 2807-c of the public health law and shall refund such monies when 1992 and 1993 pool funds for purposes of paragraph (b-1) of subdivision 19 of section 2807-c of the public health law become available.

§ 101. Subparagraphs (iv) and (v) of paragraph (f) of subdivision 11 of section 2807-c of the public health law, as amended by chapter 938 of the laws of 1990, are amended to read as follows:

(iv) Rates of payment of a general hospital shall be adjusted in accordance with paragraph (c) of this subdivision to reflect the difference between an individual general hospital's case payment rates adjusted in accordance with subparagraph (i) of this paragraph for a rate period and such rates determined in accordance with paragraphs (a) and (b) of subdivision one of this section, taking into consideration any adjustment to case payment rates applicable for such rate period made in accordance with subparagraphs (ii) and (iii), and for the periods beginning

after July first, nineteen hundred_ninety and ending on [March] December thirty-first, nineteen

hundred [ninety-two] ninetythree, subparagraph (v) of this paragraph.

(v) Notwithstanding any inconsistent provision of law, for the periods beginning on or after July first, nineteen hundred ninety and ending on [March] December thirty-first, nineteen hundred [ninety-two) ninetythree the commissioner shall reduce, in accordance with the methodology adopted for purposes of adjustments pursuant to subparagraph (ii) of this paragraph, for purposes of payments on an interim basis individual general hospitals' case payment rates applicable to state governmental agencies for a prospective period to reflect an estimate of the cumulative increase in statewide average assignment to diagnosis-related groups for prior periods, including prior quarters of the rate period which exceeds the allowable statewide increase specified in subparagraph (i) of this paragraph for the prospective period. Such adjustment if effected for less than an annual prospective rate period shall reflect an annualized adjustment.

$ 102. Paragraph (d) of subdivision 18 of section 2807-c of the public health law, as amended by chapter 938 of the laws of 1990, is amended to read as follows:

(d) Gross revenue received shall mean all moneys received for or on account of inpatient hospital service, provided, however, that

gross revenue received shall not include distributions from bad debt and charity care regional pools, primary health care services regional pools, bad debt and charity care for financially distressed hospitals statewide pools and bad debt and charity care and capital statewide pools created in accordance with this section and shall not include the components of rates of payment or charges related to the allowances provided in accordance with subdivisions fourteen, fourteen-b and fourteen-c of this section, the adjustment provided in accordance with subdivision [four-d] fourteen-a of this section, the adjustment provided

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in accordance with subdivision fourteen-d of this section or, if effective, the adjustment provided in accordance with subdivision fifteen of this section or the adjustment provided in accordance with section eighteen of chapter two hundred sixty-six of the laws of nineteen hundred eighty-six as amended.

§ 103. Paragraphs. (b), (c), and (d) of subdivision 18 of section 2807-c of the public health law, paragraphs (u) and (c) amended by chapter 922 of the laws of 1990 and paragraph' (d) as amended by section one hundred nine of this act, are amended and a new paragraph (e) is added to read as follows:

(b) provided, however, subject to the provisions of paragraph (e) of this subdivision there shall be no assessment, against those voluntary non-profit and private proprietary general hospitals which qualify for distributions made in accordance with paragraph (c) of subdivision nineteen of this section, and (c) provided further, however, subject to the provisions of paragraph

assessment against those voluntary nonprofit and private proprietary general hospitals which qualified for distributions made in accordance with paragraph (b) of subdivision sixteen of section twenty-eight hundred seven-a' of this article during the nineteen hundred eighty-seven rate period or qualified for distributions made in accordance with paragraph (c) of subdivision nineteen of this section during a rate period or rate periods but which do not continue to qualify for distributions made in accordance with paragraph (c) of subdivision nineteen of this section during a rate period or rate periods shall for the initial rate period in which such general hospital does not continue to qualify for distributions made in accordance with paragraph (c) of subdivision nineteen of this section be abated in the amount of two-thirds of one percent of gross revenue received and

for the next succeeding annual' rate period be abated in the amount of onethird of one percent of gross revenue received.

(d) Gross revenue received shall mean all moneys received for or on account of inpatient hospital service, provided, however, that subject to the provisions of paragraph (e) of this subdivision gross revenue received shall not include distributions from bad debt and charity care regional pools, primary health care services regional pools, bad debt and charity care for financially distressed hospitals statewide pools and bad debt and charity care and capital statewide pools created in accordance with this section and shall not include the components of rates of payment or charges related to the allowances provided in accordance with subdivisions fourteen, fourteen-b and fourteen-c of this section, the adjustment provided in accordance with subdivision fourteen-a of this section, the adjustment provided in accordance with subdivision fourteen-d of this section, the adjustment for health maintenance organization reimbursement rates provided in accordance with subdivision two-a of this section, the adjustment for commercial insurer reimbursebent rates provided in accordance with paragraph (i) of subdivision eleven of this section or, if effective, the adjustment provided in accordance with subdivision fifteen of this section the adjustment provided in accordance with section eighteen of chapter two hundred sixty-six of the laws of nineteen hundred eighty-six as amended.

(e) Each exclusion of hospitals or sources of gross receipts received from the assessments effective on or after October first, nineteen hundred ninety-two established pursuant to this subdivision shall be contingent upon either: (i) qualification of the assessments for waiver pursuant to federal law and regulation; or, (ii) consistent with federal jaw and regulation, not requiring a waiver by the secretary of the department of health and human services related to such exclusion; in order for the assessments under this section to be qualified as a broadbased health care related tax for purposes of the revenues received by the state pursuant to the assessment's not reducing the amount expended by the state medical assistance for purposes of federal financial participation. The commissioner shall collect the assessments relying on such exclusions, pending any contrary action by the secretary of the department of health and human services. In the event the secretary of the department of health and human services determines that the assesspents do not so qualify based on any such exclusion, then the exclusion shall be deemed to have been null and void as of October first, nineteen hundred ninety-two and the commissioner shall collect any retroactive EXPLANATION–Matter in italics is new; matter in brackets [ ] is old law

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amount due as a result, with interest from the date such amount originally would have been due but without penalty.

§ 104. Subdivision 20 of section 2807-c of the public health law is amended by adding a new paragraph (c) to read as follows:

(c)(i) Interest shall be due and payable to the commissioner by a general hospital or by a payor paying directly to a pool on the difference between the amount paid to a pool and the amount due to such pool by the hospital or payor from the day of the month the payment

due until the date of payment. The rate of interest shall be twelve percent per, annum or at the rate of interest set by the commissioner of taxation and finance with respect to under payments of tax pursuant to subsection (e) of section one thousand ninety-six of the tax law. Interest under this paragraph shall not be paid

if

the amount thereof is less than one dollar. Interest may be collected by the commissioner in the same manner as an arrearage pursuant to this subdivision.

(ii) If a payment by a general hospital or by a payor paying, directly to a pool is less than seventy percent of the amount due to such pool by the hospital or payor, a penalty shall be due and payable to the commissioner by the hospital or

payor of

five percent of the difference between the amount paid to the pool and the amount due to such pool when the failure to pay is for a duration of not more than

month after the due date of the payment with an additional five percent for each additional month or fraction thereof during which such' failure continues, not exceeding twenty-five percent in the aggregate. A penalty may be collected by the commissioner' in the same manner as arrearage suant to this subdivision.

§ 105. Notwithstanding any inconsistent provision of law, the commissioner of health is authorized to transfer and deposit $300,000 much thereof as may be necessary of funds authorized pursuant to subdivision 4 of section 2807-d, subdivision 4 of section 3614-a or subdivision 4 of section 3614-b of the public health law and $100,000 or so much thereof as may be necessary of funds authorized pursuant to subdivision 2-a of section 2807-c of the public health law for the purpose of payment for administrative costs of the department of health related administration of statutory duties for the collections authorized by subdivision 2-a of section 2807-C, and the assessments authorized by sections 2807-d, 3614-a and 3614-b of the public health law and section 367-i of the social services law into the special revenue funds other, miscellaneous special revenue fund - 339, provider collection monitoring account which is hereby established within the department of health.

§ 106. The effectiveness of the provisions of subdivisions 4, 7 and 7-a of section 2807 and subdivision 4 of section 3614 of the public health law and the provisions of section 18 of chapter 2 of the laws of 1988, as they relate to the time frames for notice, approval or certification of rates of payment, maximum rates of payment or maximum charges, and to the requirement of prior notice of rates of payment for a hospital or health-related service or for a certified home health agency or long term home health care program or AIDS home care program are hereby suspended and shall, for purposes of implementing the provisions of this act, be deemed to be without any force or effect for retroactive adjustments of rates and charges and from and after November 1, 1991 for such rates and charges effective for rate periods during the period beginning January 1, 1992 and ending December 31, 1992.

§ 107. ' Subdivision 2 of section 145-b of the social services law, as added by chapter 659 of the laws of 1975, is amended to read as follows:

2. For any violation of subdivision one, the local social services district or the state shall have a right to recover civil damages equal to three times the amount by which any figure is falsely overstated or five thousand dollars, whichever is greater. Amounts collected pursuant to a judgment under this section shall be apportioned between the local social services district and the state in accordance with regulations of the department. The remedy provided by this subdivision shall be in addition to any other remedy provided by law.

၌ 108. The social services law' is amended by adding a new section 366-d to read as follows:

§ 366-d. Medical assistance provider; prohibited practices. 1. Definitions. As used in this section, "medical assistance provider" means any person, firm, partnership,, group, association, fiduciary, employer or representative thereof or other entity who is furnishing care, services or supplies under title eleven of article five of this chapter.

2. No medical assistance provider shall:

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(a) solicit, receive, accept or agree to receive or accept any payment or other consideration in any form from another person medical sistance provider to the extent such payment or other consideration is given (i) for the referral of services for which payment is made under title eleven of article five of this chapter or (ii) to purchase, lease or order any good, facility, service or item for which payment

is

made under title eleven of article five of this chapter; or

(b) offer, agree to give or give any payment' or other consideration in any form to another person or medical assistance provider to the extent such

payment other consideration is given (i) for the referral of services for which payment is made under title eleven of article five of this chapter; or (ii) to purchase, lease or order any good, facility, service or item for which payment is made under title eleven of article five of this chapter; and

(c) specifically, medical assistance provider shall not solicit, receive, accept or agree to receive or accept or offer, agree to give or give payments in connection with but not limited to the following prohibited practices:

(1) the rental of space for any supplies provided by another person or medical assistance provider or for filling in proper information request forms for services.

(ii) the payment of interest on deposits to another person or medical assistance provider for equipment supplied on loan by the medical sistance provider.

(iii) the payment of money or other consideration from another person or medical assistance provider as a bonus, commission or fee in the form of a fixed or percentage return for the amount of services provided or to be provided by a medical assistance provider to which patients referred or in any other form, including from funds paid directly to the medical assistance provider under title eleven of article five of this chapter.

(iv) the payment of money or other consideration from anyone for any services rendered or to be rendered on any person for transference in part or in whole to another person or medical assistance provider, or to actually be kept by the medical assistance provider.

(V) supplying to or accepting directly or through any agent, employee or fiduciary, any instrument of any medical assistance provider marked "invoice" "Receipt", "Payment Received" or any other variation for use by another medical assistance provider issuing same to patients if the patient had paid the medical assistance provider.

(vi) sending, a bill to or receiving, payment from another medical assistance provider for services rendered to any patient, where such bill is sent in code on blank paper, without name and address of the medical assistance provider, without

address of the addressee, without names of the persons who were the recipients of the services or in any other falsified manner.

(d) This subdivision shall not apply to any activity specifically exempt by federal statute or federal regulations promulgated thereunder.

4.* Any medical assistance provider who violates the provisions of this section is guilty of a misdemeanor punishable by :

(a) a term of imprisonment in accordance with the penal law; or

(b) fine of not less than five hundred dollars nor more than ten thousand dollars; or

(c) if the defendant has gained money or property through a violation of the provisions of this section, a fine in an amount, fixed by the court, not to exceed double the amount of the defendant's gain from a violation of such provisions. In such event, the provisions of subdivision three of section 80.00 of the penal law shall be applicable to the sentence; or

(d) both the imprisonment and the fine. § 109. Section 155.00 of the penal law is amended by adding a new subdivision 7-b to read as follows:

7-b. "Medical assistance card" means an identification card given to an individual for use in securing medical assistance in accordance with title eleven of article five of the social services law.

§ 110. Subdivision 1 of section 165. 15 of the penal law as amended by chapter 556 of the laws of 1987, is amended to read as follows:

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1. He obtains or attempts to obtain a service, or induces or attempts to induce the supplier of a rendered service to agree to payment

therefor on a credit basis, by the use of a credit card [or], debit card, or medical assistance card which he knows to be stolen.

§ 111. Section 165. 17 of the penal law, as amended by chapter 556 of the laws of 1987, is amended to read as follows: § 165. 17 Unlawful

use of credit card [or], debit card or medical assistance card. A person is guilty of unlawful use of credit card [or], debit card or medical assistance card when in the course of obtaining or attempting to obtain property a service, he uses or displays a credit card [or], debit card or medical assistance card which he knows to be revoked cancelled.

Unlawful of a credit card [or], debit card or medical assistance card is a class A misdemeanor.

§ 112. The penal law is amended by adding a new section 190. 70 to read as follows: § 190.70 Scheme to defraud the state by unlawfully selling prescrip

tions. A person

is guilty of a scheme to defraud the state by unlawfully selling prescriptions when he or she engages, with intent to defraud the state, in a scheme constituting a systematic, ongoing course of conduct to make, sell, deliver for sale or offer for sale one or more prescriptions and obtains goods or services from the state with a value in excess of one thousand dollars or causes the state to reimburse another in

of

thousand dollars for the delivery of such goods or services.

Scheme to defraud the state by unlawfully selling prescriptions is a class A misdemeanor.

§ 113. Subdivision 9 of section 18 of chapter 266 of the laws of 1986 amending the civil practice law and rules and other laws relating to malpractice and professional medical conduct, as added by chapter 266 of the laws of 1991, is amended to read as follows:

(9) Notwithstanding any inconsistent provisions of this section or any other law to the contrary, any funds accumulated in the pool from payments made in accordance with subdivision (2) of section forty of this chapter as amended in excess of the costs allocated or reallocated to rates of payment applicable to state governmental agencies in accordance with paragraph (a) of subdivision (4-a) of this section necessary for purchase of a policy or policies for excess insurance coverage or equivalent excess coverage in accordance with this section for the period July 1, 1991 through June 30, 1992, after subtracting from such costs the amount of any overpayments by state governmental agencies for coverage periods prior to July 1, 1991, shall be deposited by the superintendent of insurance and the commissioner of health or their designee and credited to the general fund.

§ 114. (Intentionally omitted) $ 115, Section 36 of chapter 938 of the laws of 1990 amending the public health law, the social services law and the mental hygiene relating to assessing, certain health care providers is repealed.

§ 116. (Intentionally omitted) Š 117. Intentionally omitted) § 118. Intentionally omitted) § 119. (Intentionally omitted) § 120. (Intentionally omitted) § 121. Paragraph (b) of subdivision 5 of section 22 of the social services law, as added by chapter 473 of the laws of 1978,

is

amended to read as follows:

(b) Failure to act upon any application within thirty days after filing, except applications for home relief, or failure to comply with laws and regulations requiring that priority be given to certain applications for assistance, or failure to act on any application for home relief within forty-five days after filing.

§ 122. Subdivision 2 of section 111-b of the social services law, as amended by chapter 809 of the laws of 1985, is amended to read follows:

2. The department is hereby authorized to accept, on behalf of the state and the social services districts concerned, assignments of support rights owed to pe ns receiving (i) aid to dependent children pursuant to title ten of article five of this chapter or, (ii) where appropriate, foster care maintenance payments made pursuant to'title IV-E of the federal social security act; provided however, that it will not be

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