Bill Text: NY A06377 | 2019-2020 | General Assembly | Introduced


Bill Title: Authorizes certain licensed health service professionals to form limited liability companies.

Spectrum: Moderate Partisan Bill (Democrat 15-2)

Status: (Introduced) 2019-03-07 - referred to higher education [A06377 Detail]

Download: New_York-2019-A06377-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6377
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 7, 2019
                                       ___________
        Introduced  by  M.  of  A.  PEOPLES-STOKES, BENEDETTO, STECK, O'DONNELL,
          GARBARINO, THIELE, LUPARDO, JAFFEE, GOTTFRIED, WOERNER, ORTIZ,  RODRI-
          GUEZ  --  Multi-Sponsored  by  --  M.  of  A.  ARROYO -- read once and
          referred to the Committee on Higher Education
        AN ACT to amend the limited liability company law, the  business  corpo-
          ration  law,  the  partnership  law,  the education law and the public
          health  law,  in  relation  to  authorizing  certain  licensed  health
          services professionals to form limited liability companies
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivision (a) of section 1203 of  the  limited  liability
     2  company  law,  as amended by chapter 475 of the laws of 2014, is amended
     3  to read as follows:
     4    (a) Notwithstanding the education law or any other provision  of  law,
     5  one  or more professionals each of whom is authorized by law to render a
     6  professional service within the state, or one or more professionals,  at
     7  least  one of whom is authorized by law to render a professional service
     8  within the state, may form,  or  cause  to  be  formed,  a  professional
     9  service  limited liability company for pecuniary profit under this arti-
    10  cle for the purpose of rendering the professional service or services as
    11  such professionals are authorized to practice. With respect to a profes-
    12  sional service limited  liability  company  formed  to  provide  medical
    13  services  as  such  services are defined in article 131 of the education
    14  law, each member of such limited  liability  company  must  be  licensed
    15  pursuant  to  article  131  of the education law to practice medicine in
    16  this state.  Notwithstanding any other provision of  this  section,  any
    17  person licensed pursuant to article 131 of the education law to practice
    18  medicine  and  any  person  licensed pursuant to articles 132, 137, 140,
    19  141, 143, 144, 153, 154, 155 or 156 or subdivision 3 of section 6902  of
    20  article  139  of  the  education  law may form, or cause to be formed, a
    21  professional service limited liability company to provide multidiscipli-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04699-01-9

        A. 6377                             2
     1  nary services with one or more licensed professionals,  subject  to  the
     2  following  conditions: (i) each member of such limited liability company
     3  must be licensed pursuant to title eight of the education law  to  prac-
     4  tice  his  or  her profession in this state; (ii) each member shall only
     5  practice his or her profession as specified in  his  or  her  respective
     6  professional enabling statue under title eight of the education law; and
     7  (iii)  any  clinical  integration  of  professional practices under this
     8  section shall not alter, expand or curtail the scope of practice of  any
     9  of  the members; provided further that: (A) no member shall, directly or
    10  indirectly, interfere with the clinical judgment or legitimate  clinical
    11  practice  of  another  member;  and  (B) no member shall order or direct
    12  another member to practice beyond the scope of his or her license.  With
    13  respect  to  a  professional service limited liability company formed to
    14  provide dental services as such services are defined in article  133  of
    15  the education law, each member of such limited liability company must be
    16  licensed  pursuant  to  article  133  of  the  education law to practice
    17  dentistry in this state. With respect to a professional service  limited
    18  liability company formed to provide veterinary services as such services
    19  are  defined  in  article  135 of the education law, each member of such
    20  limited liability company must be licensed pursuant to  article  135  of
    21  the  education  law  to practice veterinary medicine in this state. With
    22  respect to a professional service limited liability  company  formed  to
    23  provide  professional  engineering, land surveying, architectural, land-
    24  scape architectural and/or geological  services  as  such  services  are
    25  defined  in  article  145,  article 147 and article 148 of the education
    26  law, each member of such limited  liability  company  must  be  licensed
    27  pursuant to article 145, article 147 and/or article 148 of the education
    28  law  to  practice  one  or more of such professions in this state. [With
    29  respect to a professional service limited liability  company  formed  to
    30  provide  licensed  clinical  social  work  services as such services are
    31  defined in article 154 of the education law, each member of such limited
    32  liability company shall be licensed  pursuant  to  article  154  of  the
    33  education  law to practice licensed clinical social work in this state.]
    34  With respect to a professional service limited liability company  formed
    35  to  provide  creative arts therapy services as such services are defined
    36  in article 163 of the education law, each member of such limited liabil-
    37  ity company must be licensed pursuant to article 163  of  the  education
    38  law  to  practice creative arts therapy in this state. With respect to a
    39  professional  service  limited  liability  company  formed  to   provide
    40  marriage  and  family  therapy  services as such services are defined in
    41  article 163 of the education law, each member of such limited  liability
    42  company must be licensed pursuant to article 163 of the education law to
    43  practice  marriage  and  family therapy in this state. With respect to a
    44  professional service limited liability company formed to provide  mental
    45  health  counseling  services as such services are defined in article 163
    46  of the education law, each member of such limited liability company must
    47  be licensed pursuant to article 163 of the  education  law  to  practice
    48  mental  health  counseling in this state. With respect to a professional
    49  service limited  liability  company  formed  to  provide  psychoanalysis
    50  services  as  such  services are defined in article 163 of the education
    51  law, each member of such limited  liability  company  must  be  licensed
    52  pursuant  to article 163 of the education law to practice psychoanalysis
    53  in this state. With respect to a professional service limited  liability
    54  company  formed  to  provide  applied behavior analysis services as such
    55  services are defined in article 167 of the education law, each member of
    56  such limited liability company must be licensed or certified pursuant to

        A. 6377                             3
     1  article 167 of the education law to practice applied  behavior  analysis
     2  in   this   state.  In  addition  to  engaging  in  such  profession  or
     3  professions, a professional service limited liability company may engage
     4  in  any  other  business  or  activities as to which a limited liability
     5  company may be formed under section two hundred  one  of  this  chapter.
     6  Notwithstanding  any  other  provision  of  this section, a professional
     7  service limited liability company (i) authorized  to  practice  law  may
     8  only  engage  in  another  profession  or business or activities or (ii)
     9  which is engaged in a profession or other business or  activities  other
    10  than  law  may  only  engage  in  the practice of law, to the extent not
    11  prohibited by any other law of this state or any  rule  adopted  by  the
    12  appropriate  appellate  division  of  the  supreme court or the court of
    13  appeals.
    14    § 2. Subdivision (b) of section 1207 of the limited liability  company
    15  law,  as  amended by chapter 475 of the laws of 2014, is amended to read
    16  as follows:
    17    (b) With respect to a professional service limited  liability  company
    18  formed to provide medical services as such services are defined in arti-
    19  cle  131  of  the  education  law, each member of such limited liability
    20  company must be licensed pursuant to article 131 of the education law to
    21  practice medicine in this state.  Notwithstanding any other provision of
    22  this section, any person licensed pursuant to article 131 of the  educa-
    23  tion  law to practice medicine and any person licensed pursuant to arti-
    24  cles 132, 137, 140, 141, 143, 144, 153, 154, 155 or 156 or subdivision 3
    25  of section 6902 of article 139 of the education law may form,  or  cause
    26  to  be  formed,  a  professional  service  limited  liability company to
    27  provide multidisciplinary services with one  or  more  licensed  profes-
    28  sionals,  subject  to  the following conditions: (i) each member of such
    29  limited liability company must be licensed pursuant to  title  eight  of
    30  the  education law to practice his or her profession in this state; (ii)
    31  each member shall only practice his or her profession  as  specified  in
    32  his or her respective professional enabling statute under title eight or
    33  the  education  law;  and (iii) any clinical integration of professional
    34  practices under this section shall not  alter,  expand  or  curtail  the
    35  scope  of  practice of any of the members; provided further that: (A) no
    36  member shall, directly or indirectly, interfere with the clinical judge-
    37  ment or legitimate clinical practice  of  another  member;  and  (B)  no
    38  member shall order or direct another member to practice beyond the scope
    39  of  his  or  her license. With respect to a professional service limited
    40  liability company formed to provide dental services as such services are
    41  defined in article 133 of the education law, each member of such limited
    42  liability company must be licensed pursuant to article 133 of the educa-
    43  tion law to practice dentistry in this state. With respect to a  profes-
    44  sional  service  limited  liability company formed to provide veterinary
    45  services as such services are defined in article 135  of  the  education
    46  law,  each  member  of  such  limited liability company must be licensed
    47  pursuant to article 135 of the  education  law  to  practice  veterinary
    48  medicine  in  this state. With respect to a professional service limited
    49  liability company  formed  to  provide  professional  engineering,  land
    50  surveying,  architectural,  landscape  architectural  and/or  geological
    51  services as such services are defined in article 145,  article  147  and
    52  article  148 of the education law, each member of such limited liability
    53  company must be licensed pursuant to article  145,  article  147  and/or
    54  article  148  of  the  education  law  to  practice  one or more of such
    55  professions in this state.  [With  respect  to  a  professional  service
    56  limited  liability  company  formed  to provide licensed clinical social

        A. 6377                             4

     1  work services as such services are defined in article 154 of the  educa-
     2  tion  law,  each  member  of  such  limited  liability  company shall be
     3  licensed pursuant to article  154  of  the  education  law  to  practice
     4  licensed  clinical social work in this state.] With respect to a profes-
     5  sional service limited liability company formed to provide creative arts
     6  therapy services as such services are defined  in  article  163  of  the
     7  education  law,  each  member  of such limited liability company must be
     8  licensed pursuant to article 163 of the education law to practice  crea-
     9  tive  arts therapy in this state. With respect to a professional service
    10  limited liability company formed to provide marriage and family  therapy
    11  services  as  such  services are defined in article 163 of the education
    12  law, each member of such limited  liability  company  must  be  licensed
    13  pursuant  to  article  163 of the education law to practice marriage and
    14  family therapy in this state. With respect  to  a  professional  service
    15  limited  liability  company  formed  to provide mental health counseling
    16  services as such services are defined in article 163  of  the  education
    17  law,  each  member  of  such  limited liability company must be licensed
    18  pursuant to article 163 of the education law to practice  mental  health
    19  counseling in this state. With respect to a professional service limited
    20  liability  company  formed  to  provide  psychoanalysis services as such
    21  services are defined in article 163 of the education law, each member of
    22  such limited liability company must be licensed pursuant to article  163
    23  of  the  education  law  to  practice psychoanalysis in this state. With
    24  respect to a professional service limited liability  company  formed  to
    25  provide  applied behavior analysis services as such services are defined
    26  in article 167 of the education law, each member of such limited liabil-
    27  ity company must be licensed or certified pursuant to article 167 of the
    28  education law to practice applied behavior analysis in this state.
    29    § 3. Subdivision (a) of section 1301 of the limited liability  company
    30  law,  as  amended by chapter 475 of the laws of 2014, is amended to read
    31  as follows:
    32    (a) "Foreign professional service limited liability company"  means  a
    33  professional  service  limited liability company, whether or not denomi-
    34  nated as such, organized under the laws of  a  jurisdiction  other  than
    35  this state, (i) each of whose members and managers, if any, is a profes-
    36  sional  authorized  by  law to render a professional service within this
    37  state and who is or has been engaged in the practice of such  profession
    38  in  such professional service limited liability company or a predecessor
    39  entity, or will engage in the practice of such profession in the profes-
    40  sional service limited liability company within thirty days of the  date
    41  such  professional becomes a member, or each of whose members and manag-
    42  ers, if any, is a professional at least one of such members  is  author-
    43  ized  by  law to render a professional service within this state and who
    44  is or has been engaged in  the  practice  of  such  profession  in  such
    45  professional  service limited liability company or a predecessor entity,
    46  or will engage in the practice of such profession  in  the  professional
    47  service  limited  liability  company within thirty days of the date such
    48  professional becomes a member, or  (ii)  authorized  by,  or  holding  a
    49  license,  certificate,  registration  or  permit issued by the licensing
    50  authority pursuant to,  the  education  law  to  render  a  professional
    51  service within this state; except that all members and managers, if any,
    52  of  a  foreign  professional  service  limited  liability  company  that
    53  provides health services in this state shall be licensed in this  state.
    54  With respect to a foreign professional service limited liability company
    55  which provides veterinary services as such services are defined in arti-
    56  cle  135  of the education law, each member of such foreign professional

        A. 6377                             5
     1  service limited liability company shall be licensed pursuant to  article
     2  135  of  the education law to practice veterinary medicine. With respect
     3  to a  foreign  professional  service  limited  liability  company  which
     4  provides medical services as such services are defined in article 131 of
     5  the  education  law,  each  member  of such foreign professional service
     6  limited liability company must be licensed pursuant to  article  131  of
     7  the  education  law to practice medicine in this state.  Notwithstanding
     8  any other provision of this section, any  person  licensed  pursuant  to
     9  article  131  of  the  education law to practice medicine and any person
    10  licensed pursuant to articles 132, 137, 140, 141, 143,  144,  153,  154,
    11  155 or 156 or subdivision 3 of section 6902 of article 139 of the educa-
    12  tion law may form, or cause to be formed, a foreign professional service
    13  limited liability company to provide multidisciplinary services with one
    14  or more licensed professionals, subject to the following conditions: (i)
    15  each  member of such limited liability company must be licensed pursuant
    16  to title eight of the education law to practice his or her profession in
    17  this state; (ii) each member shall only practice his or  her  profession
    18  as  specified  in  his  or  her respective professional enabling statute
    19  under title eight of the education law; and  (iii)  any  clinical  inte-
    20  gration  of  professional  practices under this section shall not alter,
    21  expand or curtail the scope of practice of any of the members;  provided
    22  further  that:  (A)  no  member shall, directly or indirectly, interfere
    23  with the clinical judgment or legitimate clinical  practice  of  another
    24  member;  and (B) no member shall order or direct another member to prac-
    25  tice beyond the scope of his or her license. With respect to  a  foreign
    26  professional  service  limited  liability  company which provides dental
    27  services as such services are defined in article 133  of  the  education
    28  law,  each member of such foreign professional service limited liability
    29  company must be licensed pursuant to article 133 of the education law to
    30  practice dentistry in this state. With respect to a foreign professional
    31  service limited liability company which provides professional  engineer-
    32  ing,  land surveying, geologic, architectural and/or landscape architec-
    33  tural services as such services are defined in article 145, article  147
    34  and  article  148  of  the  education  law,  each member of such foreign
    35  professional service limited liability company must be licensed pursuant
    36  to article 145, article 147 and/or article 148 of the education  law  to
    37  practice one or more of such professions in this state. [With respect to
    38  a  foreign professional service limited liability company which provides
    39  licensed clinical social work services as such services are  defined  in
    40  article  154  of  the education law, each member of such foreign profes-
    41  sional service limited liability company shall be licensed  pursuant  to
    42  article  154  of  the  education law to practice clinical social work in
    43  this state.] With respect to  a  foreign  professional  service  limited
    44  liability  company which provides creative arts therapy services as such
    45  services are defined in article 163 of the education law, each member of
    46  such foreign professional service  limited  liability  company  must  be
    47  licensed  pursuant to article 163 of the education law to practice crea-
    48  tive arts therapy in this state. With respect to a foreign  professional
    49  service  limited  liability  company  which provides marriage and family
    50  therapy services as such services are defined  in  article  163  of  the
    51  education  law, each member of such foreign professional service limited
    52  liability company must be licensed pursuant to article 163 of the educa-
    53  tion law to practice marriage and family therapy  in  this  state.  With
    54  respect  to  a  foreign  professional  service limited liability company
    55  which provides mental health counseling services as  such  services  are
    56  defined in article 163 of the education law, each member of such foreign

        A. 6377                             6
     1  professional service limited liability company must be licensed pursuant
     2  to article 163 of the education law to practice mental health counseling
     3  in  this  state.  With respect to a foreign professional service limited
     4  liability   company  which  provides  psychoanalysis  services  as  such
     5  services are defined in article 163 of the education law, each member of
     6  such foreign professional service  limited  liability  company  must  be
     7  licensed  pursuant  to  article  163  of  the  education law to practice
     8  psychoanalysis in this state. With respect  to  a  foreign  professional
     9  service limited liability company which provides applied behavior analy-
    10  sis  services  as such services are defined in article 167 of the educa-
    11  tion law, each member  of  such  foreign  professional  service  limited
    12  liability  company must be licensed or certified pursuant to article 167
    13  of the education law to  practice  applied  behavior  analysis  in  this
    14  state.
    15    § 4. Paragraph (a) of section 1503 of the business corporation law, as
    16  amended  by  chapter  475  of  the  laws  of 2014, is amended to read as
    17  follows:
    18    (a) Notwithstanding any other provision of law, (i) one or more  indi-
    19  viduals  duly  authorized by law to render the same professional service
    20  within the state may organize, or cause to be organized, a  professional
    21  service  corporation  for  pecuniary  profit  under this article for the
    22  purpose of rendering the same professional service, except that  one  or
    23  more  individuals  duly authorized by law to practice professional engi-
    24  neering, architecture, landscape architecture, land surveying or geology
    25  within the state may organize, or cause to be organized, a  professional
    26  service  corporation  or  a  design professional service corporation for
    27  pecuniary profit under this article for the purpose  of  rendering  such
    28  professional  services  as  such individuals are authorized to practice,
    29  and (ii) one or more individuals licensed to practice pursuant to  arti-
    30  cle  131  and one or more individuals licensed pursuant to articles 132,
    31  137, 140, 141, 143, 144, 153, 154,  155  or  156  or  subdivision  3  of
    32  section  6902  of  article  139  of title eight of the education law may
    33  organize, or cause to  be  organized,  for  business  purposes  only,  a
    34  professional  service corporation formed for pecuniary profit under this
    35  article for the purpose of rendering multidisciplinary  services  within
    36  such  a corporation as such individuals are authorized to practice indi-
    37  vidually in his or her respective professions, subject to the  following
    38  conditions:  (A)  individual  who organizes, or causes to organize, such
    39  corporation must be licensed pursuant to title eight  of  the  education
    40  law  to  practice  his  or her profession in this state; (B) each member
    41  shall only practice his or her profession as specified  in  his  or  her
    42  respective professional enabling statute under title eight of the educa-
    43  tion  law;  and  (C)  any clinical integration of professional practices
    44  under this section shall not alter, expand or curtail the scope of prac-
    45  tice of any of the members; (D) no individual shall, directly  or  indi-
    46  rectly,  interfere  with  the  clinical  judgment or legitimate clinical
    47  practice of another individual; and (E) no  individual  shall  order  or
    48  direct  another  individual  to  practice beyond the scope of his or her
    49  license.
    50    § 5. Subdivision (q) of section 121-1500 of the  partnership  law,  as
    51  amended  by  chapter  475  of  the  laws  of 2014, is amended to read as
    52  follows:
    53    (q) Each partner of a registered limited liability partnership  formed
    54  to  provide  medical services in this state must be licensed pursuant to
    55  article 131 of the education law to practice medicine in this state [and
    56  each]. Notwithstanding any other provision of this section,  any  person

        A. 6377                             7
     1  licensed  pursuant to article 131 of the education law to practice medi-
     2  cine and any person licensed pursuant to articles 132,  137,  140,  141,
     3  143,  144, 153, 154, 155 or 156 subdivision 3 of section 6902 of article
     4  139  of  the education law may form, or cause to be formed, a registered
     5  limited liability partnership to provide multidisciplinary services with
     6  one or more licensed professionals, subject to the following conditions:
     7  (i) each partner of such limited liability partnership must be  licensed
     8  pursuant  to  title  eight  of  the education law to practice his or her
     9  profession in this state; (ii) each partner shall only practice  his  or
    10  her profession as specified in his or her respective professional enabl-
    11  ing  statute under title eight of the education law; and (iii) any clin-
    12  ical integration of the professional practices under this section  shall
    13  not  alter,  expand or curtail the scope of practice of any of the part-
    14  ners; provided further that: (A) no partner shall, directly or indirect-
    15  ly, interfere with the clinical judgment or legitimate clinical practice
    16  of another partner; and (B) no partner shall  order  or  direct  another
    17  partner  to practice beyond the scope of his or her license.  Each part-
    18  ner of a registered limited  liability  partnership  formed  to  provide
    19  dental  services  in this state must be licensed pursuant to article 133
    20  of the education law to practice dentistry in this state.  Each  partner
    21  of  a registered limited liability partnership formed to provide veteri-
    22  nary services in this state must be licensed pursuant to article 135  of
    23  the  education  law  to practice veterinary medicine in this state. Each
    24  partner of a registered limited liability partnership formed to  provide
    25  professional engineering, land surveying, geological services, architec-
    26  tural  and/or  landscape  architectural  services  in this state must be
    27  licensed pursuant to article 145, article 147 and/or article 148 of  the
    28  education law to practice one or more of such professions in this state.
    29  [Each  partner  of  a registered limited liability partnership formed to
    30  provide licensed clinical social work services in  this  state  must  be
    31  licensed  pursuant to article 154 of the education law to practice clin-
    32  ical social work in this state.] Each partner of  a  registered  limited
    33  liability  partnership  formed to provide creative arts therapy services
    34  in this state must be licensed pursuant to article 163 of the  education
    35  law  to  practice creative arts therapy in this state. Each partner of a
    36  registered limited liability partnership formed to provide marriage  and
    37  family therapy services in this state must be licensed pursuant to arti-
    38  cle  163 of the education law to practice marriage and family therapy in
    39  this state. Each partner of a registered limited  liability  partnership
    40  formed  to  provide mental health counseling services in this state must
    41  be licensed pursuant to article 163 of the  education  law  to  practice
    42  mental  health  counseling  in  this state. Each partner of a registered
    43  limited liability partnership formed to provide psychoanalysis  services
    44  in  this state must be licensed pursuant to article 163 of the education
    45  law to practice psychoanalysis in this state. Each partner of  a  regis-
    46  tered  limited  liability partnership formed to provide applied behavior
    47  analysis service in this state must be licensed or certified pursuant to
    48  article 167 of the education law to practice applied  behavior  analysis
    49  in this state.
    50    §  6.  Subdivision  (q) of section 121-1502 of the partnership law, as
    51  amended by chapter 475 of the laws  of  2014,  is  amended  to  read  as
    52  follows:
    53    (q)  Each  partner  of  a  foreign limited liability partnership which
    54  provides medical services in this state must  be  licensed  pursuant  to
    55  article  131 of the education law to practice medicine in the state [and
    56  each]. Notwithstanding any other provision of this section,  any  person

        A. 6377                             8
     1  licensed  pursuant to article 131 of the education law to practice medi-
     2  cine and any person licensed pursuant to articles 132,  137,  140,  141,
     3  143, 144, 153, 154, 155 or 156 or subdivision 3 of section 6902 of arti-
     4  cle  139 of the education law may form, or cause to be formed, a foreign
     5  limited liability partnership to provide multidisciplinary services with
     6  one or more licensed professionals, subject to the following conditions:
     7  (i) each partner of such foreign limited liability partnership  must  be
     8  licensed pursuant to title eight of the education law to practice his or
     9  her  profession in this state; (ii) each partner shall only practice his
    10  or her profession as specified in his  or  her  respective  professional
    11  enabling  statute  under title eight of the education law; and (iii) any
    12  clinical integration of professional practices under this section  shall
    13  not  alter,  expand or curtail the scope of practice of any of the part-
    14  ners; provided further that: (A) no partner shall, directly or indirect-
    15  ly, interfere with the clinical judgment or legitimate clinical practice
    16  of another partner; and (B) no partner shall  order  or  direct  another
    17  partner to practice beyond the scope of his or her license. Each partner
    18  of  a  foreign  limited  liability  partnership  which  provides  dental
    19  services in the state must be licensed pursuant to article  133  of  the
    20  education  law  to  practice  dentistry in this state. Each partner of a
    21  foreign limited liability partnership which provides veterinary  service
    22  in  the state shall be licensed pursuant to article 135 of the education
    23  law to practice veterinary medicine in this state.  Each  partner  of  a
    24  foreign  limited liability partnership which provides professional engi-
    25  neering, land surveying, geological services, architectural and/or land-
    26  scape architectural services in this state must be licensed pursuant  to
    27  article  145,  article  147  and/or  article 148 of the education law to
    28  practice one or more of such professions. [Each  partner  of  a  foreign
    29  limited  liability  partnership  which provides licensed clinical social
    30  work services in this state must be licensed pursuant to article 154  of
    31  the  education  law  to  practice  licensed clinical social work in this
    32  state.] Each partner of a foreign limited  liability  partnership  which
    33  provides  creative  arts therapy services in this state must be licensed
    34  pursuant to article 163 of the education law to practice  creative  arts
    35  therapy in this state. Each partner of a foreign limited liability part-
    36  nership  which  provides  marriage  and  family therapy services in this
    37  state must be licensed pursuant to article 163 of the education  law  to
    38  practice  marriage  and  family therapy in this state. Each partner of a
    39  foreign limited liability partnership which provides mental health coun-
    40  seling services in this state must be licensed pursuant to  article  163
    41  of the education law to practice mental health counseling in this state.
    42  Each  partner  of a foreign limited liability partnership which provides
    43  psychoanalysis services in this state must be licensed pursuant to arti-
    44  cle 163 of the education law to practice psychoanalysis in  this  state.
    45  Each  partner  of a foreign limited liability partnership which provides
    46  applied behavior analysis services in this state  must  be  licensed  or
    47  certified  pursuant  to  article  167  of  the education law to practice
    48  applied behavior analysis in this state.
    49    § 7. Section 6509-a of the education law, as amended by chapter 555 of
    50  the laws of 1993, is amended to read as follows:
    51    § 6509-a. Additional definition of  professional  misconduct;  limited
    52  application.  Notwithstanding any inconsistent provision of this article
    53  or  of any other provision of law to the contrary, the license or regis-
    54  tration of a person subject to the provisions of  articles  one  hundred
    55  thirty-two,  one  hundred  thirty-three,  one  hundred  thirty-six,  one
    56  hundred thirty-seven, one hundred thirty-nine,  one  hundred  forty-one,

        A. 6377                             9
     1  one  hundred forty-three, one hundred forty-four, one hundred fifty-six,
     2  one hundred fifty-nine and one hundred sixty-four of this chapter may be
     3  revoked, suspended or annulled or such person  may  be  subject  to  any
     4  other  penalty  provided  in  section  sixty-five hundred eleven of this
     5  article in accordance with the provisions and procedure of this  article
     6  for the following:
     7    That any person subject to the above enumerated articles, has directly
     8  or  indirectly  requested,  received  or  participated  in the division,
     9  transference, assignment, rebate, splitting or refunding of a  fee  for,
    10  or  has directly requested, received or profited by means of a credit or
    11  other valuable consideration as a commission, discount  or  gratuity  in
    12  connection with the furnishing of professional care, or service, includ-
    13  ing  x-ray  examination  and treatment, or for or in connection with the
    14  sale, rental, supplying or furnishing of clinical laboratory services or
    15  supplies, x-ray laboratory  services  or  supplies,  inhalation  therapy
    16  service  or  equipment, ambulance service, hospital or medical supplies,
    17  physiotherapy or other  therapeutic  service  or  equipment,  artificial
    18  limbs,  teeth  or  eyes,  orthopedic or surgical appliances or supplies,
    19  optical appliances, supplies or equipment, devices for aid  of  hearing,
    20  drugs,  medication  or  medical supplies or any other goods, services or
    21  supplies prescribed for medical diagnosis, care or treatment under  this
    22  chapter,  except  payment,  not to exceed thirty-three and one-third per
    23  centum of any fee received for x-ray examination,  diagnosis  or  treat-
    24  ment,  to any hospital furnishing facilities for such examination, diag-
    25  nosis or treatment.  Nothing contained in this  section  shall  prohibit
    26  such persons from practicing as partners, in groups or as a professional
    27  corporation  or  as  a  university faculty practice corporation nor from
    28  pooling fees and moneys received, either by  the  partnerships,  profes-
    29  sional  corporations, university faculty practice corporations or groups
    30  by the individual members thereof, for professional  services  furnished
    31  by  any individual professional member, or employee of such partnership,
    32  corporation or group, nor shall the professionals constituting the part-
    33  nerships, corporations or groups be prohibited from sharing, dividing or
    34  apportioning the fees and moneys received by them or by the partnership,
    35  corporation or group in accordance with a partnership  or  other  agree-
    36  ment;  provided  that  no  such practice as partners, corporations or in
    37  groups or pooling of fees or moneys  received  or  shared,  division  or
    38  apportionment of fees shall be permitted with respect to care and treat-
    39  ment  under the workers' compensation law except as expressly authorized
    40  by the workers' compensation law.  Nothing  contained  in  this  section
    41  shall  prohibit a multidisciplinary services practice formed pursuant to
    42  subdivision (a) of section twelve hundred three of the limited liability
    43  company law, subdivision (b) of section  twelve  hundred  seven  of  the
    44  limited  liability  company  law,  subdivision  (a)  of section thirteen
    45  hundred one of the limited  liability  company  law,  paragraph  (a)  of
    46  section  fifteen hundred three of the business corporation law, subdivi-
    47  sion (q) of section 121-1500 of the partnership law, or subdivision  (q)
    48  of  section  121-1502 of the partnership law from pooling fees or monies
    49  received. Nothing contained in this chapter shall prohibit a medical  or
    50  dental  expense  indemnity corporation pursuant to its contract with the
    51  subscriber from prorationing  a  medical  or  dental  expense  indemnity
    52  allowance  among two or more professionals in proportion to the services
    53  rendered by each such professional at the  request  of  the  subscriber,
    54  provided  that  prior to payment thereof such professionals shall submit
    55  both to the medical or dental expense indemnity corporation and  to  the

        A. 6377                            10
     1  subscriber  statements  itemizing  the  services  rendered  by each such
     2  professional and the charges therefor.
     3    §  8. Subdivision 19 of section 6530 of the education law, as added by
     4  chapter 606 of the laws of 1991, is amended to read as follows:
     5    19. Permitting any person  to  share  in  the  fees  for  professional
     6  services,  other  than: a partner, employee, associate in a professional
     7  firm or corporation, professional subcontractor or consultant authorized
     8  to practice medicine, [or] a legally authorized trainee practicing under
     9  the supervision of a licensee, or an  authorized  professional  licensed
    10  pursuant  to article one hundred thirty-one, one hundred thirty-two, one
    11  hundred thirty-seven, one hundred  forty,  one  hundred  forty-one,  one
    12  hundred  forty-three,  one  hundred forty-four, one hundred fifty-three,
    13  one hundred fifty-four, one hundred fifty-five, one hundred fifty-six or
    14  one hundred fifty-nine  or  subdivision  three  of  section  sixty  nine
    15  hundred two of article one hundred thirty-nine of this chapter providing
    16  professional  services  in  the  same  practice.  This prohibition shall
    17  include any arrangement or agreement  whereby  the  amount  received  in
    18  payment   for  furnishing  space,  facilities,  equipment  or  personnel
    19  services used by a licensee constitutes a percentage of, or is otherwise
    20  dependent upon, the income or receipts of the licensee from  such  prac-
    21  tice,  except  as  otherwise  provided by law with respect to a facility
    22  licensed pursuant to article twenty-eight of the public  health  law  or
    23  article thirteen of the mental hygiene law;
    24    §  9.  Section 6531 of the education law, as amended by chapter 555 of
    25  the laws of 1993, is amended to read as follows:
    26    § 6531. Additional  definition  of  professional  misconduct,  limited
    27  application.  Notwithstanding any inconsistent provision of this article
    28  or any other provisions of law to the contrary, the license or registra-
    29  tion  of  a person subject to the provisions of this article and article
    30  one hundred thirty-one-B of this chapter may be revoked,  suspended,  or
    31  annulled  or such person may be subject to any other penalty provided in
    32  section two hundred thirty-a of the public health law in accordance with
    33  the provisions and procedures of this article for the following:
    34    That any person subject to the above-enumerated articles has  directly
    35  or  indirectly  requested,  received  or  participated  in the division,
    36  transference, assignment, rebate, splitting, or refunding of a fee  for,
    37  or  has directly requested, received or profited by means of a credit or
    38  other valuable consideration as a commission, discount or  gratuity,  in
    39  connection  with the furnishing of professional care or service, includ-
    40  ing x-ray examination and treatment, or for or in  connection  with  the
    41  sale,  rental,  supplying, or furnishing of clinical laboratory services
    42  or supplies, x-ray laboratory services or supplies,  inhalation  therapy
    43  service  or  equipment, ambulance service, hospital or medical supplies,
    44  physiotherapy or other  therapeutic  service  or  equipment,  artificial
    45  limbs,  teeth  or  eyes,  orthopedic or surgical appliances or supplies,
    46  optical appliances, supplies, or equipment, devices for aid of  hearing,
    47  drugs, medication, or medical supplies, or any other goods, services, or
    48  supplies prescribed for medical diagnosis, care, or treatment under this
    49  chapter,  except  payment,  not  to  exceed  thirty-three  and one-third
    50  percent of any fee received for x-ray examination, diagnosis, or  treat-
    51  ment,  to any hospital furnishing facilities for such examination, diag-
    52  nosis, or treatment. Nothing contained in this  section  shall  prohibit
    53  such persons from practicing as partners, in groups or as a professional
    54  corporation  or  as  a university faculty practice corporation, nor from
    55  pooling fees and moneys received, either by  the  partnerships,  profes-
    56  sional  corporations,  or  university  faculty  practice corporations or

        A. 6377                            11
     1  groups by the individual  members  thereof,  for  professional  services
     2  furnished  by  an  individual  professional  member, or employee of such
     3  partnership, corporation, or group, nor shall the professionals  consti-
     4  tuting the partnerships, corporations or groups be prohibited from shar-
     5  ing,  dividing,  or apportioning the fees and moneys received by them or
     6  by the partnership, corporation, or group in accordance with a  partner-
     7  ship  or  other  agreement;  provided that no such practice as partners,
     8  corporations, or groups, or  pooling  of  fees  or  moneys  received  or
     9  shared,  division  or  apportionment  of  fees  shall  be permitted with
    10  respect to and treatment under the workers'  compensation  law.  Nothing
    11  contained  in  this  section shall prohibit a multidisciplinary services
    12  practice formed pursuant to subdivision (a) of  section  twelve  hundred
    13  three  of  the limited liability company law, subdivision (b) of section
    14  twelve hundred seven of the limited liability company  law,  subdivision
    15  (a)  of  section  thirteen  hundred one of the limited liability company
    16  law, paragraph (a) of section fifteen  hundred  three  of  the  business
    17  corporation  law, subdivision (q) of section 121-1500 of the partnership
    18  law, or subdivision (q) of section 121-1502 of the partnership law  from
    19  pooling fees or monies received. Nothing contained in this chapter shall
    20  prohibit  a  corporation licensed pursuant to article forty-three of the
    21  insurance law pursuant to its contract with the subscribed  from  prora-
    22  tioning  a  medical  or dental expenses indemnity allowance among two or
    23  more professionals in proportion to the services rendered by  each  such
    24  professional  at  the  request of the subscriber, provided that prior to
    25  payment thereof such professionals shall submit both to the  corporation
    26  licensed pursuant to article forty-three of the insurance law and to the
    27  subscriber  statements  itemizing  the  services  rendered  by each such
    28  professional and the charges therefor.
    29    § 10. Subdivision 1 of section 2801  of  the  public  health  law,  as
    30  amended by section 1 of subpart B of part S of chapter 57 of the laws of
    31  2018, is amended to read as follows:
    32    1.  "Hospital"  means a facility or institution engaged principally in
    33  providing services by or under the supervision of a physician or, in the
    34  case of a dental clinic or dental dispensary, of a dentist, or,  in  the
    35  case  of  a  midwifery  birth  center, of a midwife, for the prevention,
    36  diagnosis or treatment of human  disease,  pain,  injury,  deformity  or
    37  physical  condition,  including, but not limited to, a general hospital,
    38  public health center, diagnostic center, treatment center, dental  clin-
    39  ic,  dental dispensary, rehabilitation center other than a facility used
    40  solely for vocational rehabilitation, nursing home, tuberculosis  hospi-
    41  tal,  chronic  disease  hospital,  maternity  hospital,  midwifery birth
    42  center,  lying-in-asylum,  out-patient  department,  out-patient  lodge,
    43  dispensary  and  a laboratory or central service facility serving one or
    44  more such institutions, but the  term  hospital  shall  not  include  an
    45  institution, sanitarium or other facility engaged principally in provid-
    46  ing  services for the prevention, diagnosis or treatment of mental disa-
    47  bility and which is subject to the powers  of  visitation,  examination,
    48  inspection  and investigation of the department of mental hygiene except
    49  for those distinct parts of  such  a  facility  which  provide  hospital
    50  service. The provisions of this article shall not apply to a facility or
    51  institution  engaged  principally  in providing services by or under the
    52  supervision of the bona fide members and adherents of a recognized reli-
    53  gious organization whose teachings include reliance on  spiritual  means
    54  through prayer alone for healing in the practice of the religion of such
    55  organization  and  where  services are provided in accordance with those
    56  teachings or to a multidisciplinary services practice formed pursuant to

        A. 6377                            12
     1  subdivision (a) of section twelve hundred three of the limited liability
     2  company law, subdivision (b) of section  twelve  hundred  seven  of  the
     3  limited  liability  company  law,  subdivision  (a)  of section thirteen
     4  hundred  one  of  the  limited  liability  company law, paragraph (a) of
     5  section fifteen hundred three of the business corporation law,  subdivi-
     6  sion  (q) of section 121-1500 of the partnership law, or subdivision (q)
     7  of section 121-1502 of the partnership law.  No provision of this  arti-
     8  cle  or  any other provision of law shall be construed to: (a) limit the
     9  volume of mental health or substance use disorder services that  can  be
    10  provided  by  a  provider  of  primary care services licensed under this
    11  article and authorized to provide integrated services in accordance with
    12  regulations issued by the commissioner in consultation with the  commis-
    13  sioner of the office of mental health and the commissioner of the office
    14  of alcoholism and substance abuse services, including regulations issued
    15  pursuant  to  subdivision seven of section three hundred sixty-five-l of
    16  the social services law or part L of chapter fifty-six of  the  laws  of
    17  two thousand twelve; (b) require a provider licensed pursuant to article
    18  thirty-one  of  the  mental hygiene law or certified pursuant to article
    19  thirty-two of the mental hygiene law to obtain an operating  certificate
    20  from  the  department  if  such  provider has been authorized to provide
    21  integrated services in accordance with regulations issued by the commis-
    22  sioner in consultation with the commissioner of  the  office  of  mental
    23  health  and  the  commissioner of the office of alcoholism and substance
    24  abuse services, including regulations  issued  pursuant  to  subdivision
    25  seven  of  section three hundred sixty-five-l of the social services law
    26  or part L of chapter fifty-six of the laws of two thousand twelve.
    27    § 11. This act shall take effect on the thirtieth day after  it  shall
    28  have become a law.
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