Sec. 69-11.4. Surrogacy program conflicts of interest

(a) Surrogacy programs shall, as a condition of licensure, develop and maintain policies to avoid conflicts of interest while facilitating, arranging, and engaging in the services contemplated in a surrogacy agreement.

(b) The surrogacy program’s conflict of interest policy shall apply to all personnel of the surrogacy program, including but not limited to owners, employees, and contractors, who help to facilitate, arrange, or engage in any service contemplated in a surrogacy agreement.

(c) Such conflict of interest policies shall prohibit, at a minimum, the following conduct:

(1) any sort of kickback or making or receiving a referral for a fee, except for fair market value fees paid by a surrogacy program to an employee or independent contractor of the surrogacy program solely for promoting the surrogacy program and identifying potential surrogates;

(2) fee-splitting;

(3) financially benefitting from a referral, including a family member benefitting from a referral;

(4) ordering or arranging for excessive tests, treatment, or use of treatment facilities not warranted by the condition of the patient;

(5) making self-referrals, that is, referrals to health care providers with which the surrogacy program has financial relationships (other than financial relationships that would be commercially reasonable even if no referrals were made between the parties); and

(6) entering into an arrangement with a clinical laboratory under which the clinical laboratory does not directly bill the patient as required by Public Health Law section 586.