N.Y. Public Health Law § 2805-f: Money deposited or advanced for admittance to nursing homes; waiver void; administration expenses

§ 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.