2010 New York Code
PBH - Public Health
Article 28 - (2800 - 2822) HOSPITALS
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.