New York Prosecutors Training Institute
NYPTI Law - NYS Statutes
ยง 2805-f. Money deposited or advanced for admittance to nursing homes;
waiver void; administration expenses. 1. Whenever money shall be
deposited or advanced on a contract or license agreement for admittance
to a nursing home as security for performance of the contract or
agreement or to be applied to payments upon such contract or agreement
when due, such money, with interest accruing thereon, until repaid or so
applied, shall continue to be the money of the person making such
deposit or advance and shall be held in trust by the person with whom
such deposit or advance shall be made and shall not be mingled with the
personal moneys or become an asset of the person receiving the same.
2. The person receiving money so deposited or advanced shall deposit
such money in an interest bearing account in a banking organization
provided, however, that monies which are advanced pursuant to the
provisions of subdivision one of this section for the purpose of being
applied to payments in performance of a contract or license agreement
when due need not be deposited in an interest bearing account until the
sixty-first day next succeeding the day upon which such money was
deposited or advanced. Such person shall thereupon notify in writing
each of the persons making such security deposit or advance, giving the
name and address of the banking organization in which the deposit of
security money is made, and the amount of such deposit. Such person
shall be entitled to receive, as administration expenses, a sum
equivalent to one percent per annum upon the security money so
deposited, which shall be in lieu of all other administrative and
custodial expenses. The balance of the interest paid by the banking
organization shall be the money of the person making the deposit or
advance.
3. Any provision of such a contract or agreement whereby a person who
so deposits or advances money waives any provision of this section is
absolutely void.
4. Whoever knowingly and willfully:
(a) charges for any service provided to a recipient pursuant to title
eleven of article five of the social services law, or a recipient
pursuant to title XVIII of the federal social security act, money or
other consideration at a rate in excess of the rates established by the
department of health and certified by the director of the division of
budget or established pursuant to title XVIII of the federal social
security act, as the case may be; or
(b) charges, solicits, accepts or receives, in addition to any amount
otherwise required to be paid pursuant to title eleven of article five
of the social services law, or pursuant to title XVIII of the federal
social security act, any gift, money, donation or other consideration,
other than a charitable, religious or philanthropic contribution from an
organization or from a person not acting on behalf of such recipient or
applicant for assistance under title eleven of article five of the
social services law:
(i) as a precondition, express or implied, to admitting or expediting
the admission of such recipient or applicant to a hospital or
residential health care facility; or
(ii) as a requirement for the recipient's or applicant's continued
stay in such facility,
when the cost of the services, provided therein to the recipient is
paid for, in whole or in part, pursuant to title eleven of article five
of the social services law, or pursuant to title XVIII of the federal
social security act, shall be guilty of a class E felony.
