Bill Text: NY A06377 | 2019-2020 | General Assembly | Amended
Bill Title: Authorizes certain licensed health service professionals to form limited liability companies.
Spectrum: Moderate Partisan Bill (Democrat 16-2)
Status: (Introduced - Dead) 2020-01-08 - referred to higher education [A06377 Detail]
Download: New_York-2019-A06377-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 6377--A 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, McDONALD, STIRPE, BUTTENSCHON, GRIFFIN -- Multi-Sponsored by -- M. of A. ARROYO, FITZPATRICK -- read once and referred to the Commit- tee on Higher Education -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04699-04-9A. 6377--A 2 1 article 139 of the education law may form, or cause to be formed, a 2 professional service limited liability company to provide multidiscipli- 3 nary services with one or more licensed professionals, subject to the 4 following conditions: (i) each member of such limited liability company 5 must be licensed pursuant to title eight of the education law to prac- 6 tice his or her profession in this state; (ii) each member shall only 7 practice his or her profession as specified in his or her respective 8 professional enabling statue under title eight of the education law; and 9 (iii) any clinical integration of professional practices under this 10 section shall not alter, expand or curtail the scope of practice of any 11 of the members; provided further that: (A) no member shall, directly or 12 indirectly, interfere with the clinical judgment or legitimate clinical 13 practice of another member; and (B) no member shall order or direct 14 another member to practice beyond the scope of his or her license. With 15 respect to a professional service limited liability company formed to 16 provide dental services as such services are defined in article 133 of 17 the education law, each member of such limited liability company must be 18 licensed pursuant to article 133 of the education law to practice 19 dentistry in this state. With respect to a professional service limited 20 liability company formed to provide veterinary services as such services 21 are defined in article 135 of the education law, each member of such 22 limited liability company must be licensed pursuant to article 135 of 23 the education law to practice veterinary medicine in this state. With 24 respect to a professional service limited liability company formed to 25 provide professional engineering, land surveying, architectural, land- 26 scape architectural and/or geological services as such services are 27 defined in article 145, article 147 and article 148 of the education 28 law, each member of such limited liability company must be licensed 29 pursuant to article 145, article 147 and/or article 148 of the education 30 law to practice one or more of such professions in this state. [With31respect to a professional service limited liability company formed to32provide licensed clinical social work services as such services are33defined in article 154 of the education law, each member of such limited34liability company shall be licensed pursuant to article 154 of the35education law to practice licensed clinical social work in this state.] 36 With respect to a professional service limited liability company formed 37 to provide creative arts therapy services as such services are defined 38 in article 163 of the education law, each member of such limited liabil- 39 ity company must be licensed pursuant to article 163 of the education 40 law to practice creative arts therapy in this state. With respect to a 41 professional service limited liability company formed to provide 42 marriage and family therapy services as such services are defined in 43 article 163 of the education law, each member of such limited liability 44 company must be licensed pursuant to article 163 of the education law to 45 practice marriage and family therapy in this state. With respect to a 46 professional service limited liability company formed to provide mental 47 health counseling services as such services are defined in article 163 48 of the education law, each member of such limited liability company must 49 be licensed pursuant to article 163 of the education law to practice 50 mental health counseling in this state. With respect to a professional 51 service limited liability company formed to provide psychoanalysis 52 services as such services are defined in article 163 of the education 53 law, each member of such limited liability company must be licensed 54 pursuant to article 163 of the education law to practice psychoanalysis 55 in this state. With respect to a professional service limited liability 56 company formed to provide applied behavior analysis services as suchA. 6377--A 3 1 services are defined in article 167 of the education law, each member of 2 such limited liability company must be licensed or certified pursuant to 3 article 167 of the education law to practice applied behavior analysis 4 in this state. In addition to engaging in such profession or 5 professions, a professional service limited liability company may engage 6 in any other business or activities as to which a limited liability 7 company may be formed under section two hundred one of this chapter. 8 Notwithstanding any other provision of this section, a professional 9 service limited liability company (i) authorized to practice law may 10 only engage in another profession or business or activities or (ii) 11 which is engaged in a profession or other business or activities other 12 than law may only engage in the practice of law, to the extent not 13 prohibited by any other law of this state or any rule adopted by the 14 appropriate appellate division of the supreme court or the court of 15 appeals. 16 § 2. Subdivision (b) of section 1207 of the limited liability company 17 law, as amended by chapter 475 of the laws of 2014, is amended to read 18 as follows: 19 (b) With respect to a professional service limited liability company 20 formed to provide medical services as such services are defined in arti- 21 cle 131 of the education law, each member of such limited liability 22 company must be licensed pursuant to article 131 of the education law to 23 practice medicine in this state. Notwithstanding any other provision of 24 this section, any person licensed pursuant to article 131 of the educa- 25 tion law to practice medicine and any person licensed pursuant to arti- 26 cles 132, 137, 140, 141, 143, 144, 153, 154, 155 or 156 or subdivision 3 27 of section 6902 of article 139 of the education law may form, or cause 28 to be formed, a professional service limited liability company to 29 provide multidisciplinary services with one or more licensed profes- 30 sionals, subject to the following conditions: (i) each member of such 31 limited liability company must be licensed pursuant to title eight of 32 the education law to practice his or her profession in this state; (ii) 33 each member shall only practice his or her profession as specified in 34 his or her respective professional enabling statute under title eight or 35 the education law; and (iii) any clinical integration of professional 36 practices under this section shall not alter, expand or curtail the 37 scope of practice of any of the members; provided further that: (A) no 38 member shall, directly or indirectly, interfere with the clinical judge- 39 ment or legitimate clinical practice of another member; and (B) no 40 member shall order or direct another member to practice beyond the scope 41 of his or her license. With respect to a professional service limited 42 liability company formed to provide dental services as such services are 43 defined in article 133 of the education law, each member of such limited 44 liability company must be licensed pursuant to article 133 of the educa- 45 tion law to practice dentistry in this state. With respect to a profes- 46 sional service limited liability company formed to provide veterinary 47 services as such services are defined in article 135 of the education 48 law, each member of such limited liability company must be licensed 49 pursuant to article 135 of the education law to practice veterinary 50 medicine in this state. With respect to a professional service limited 51 liability company formed to provide professional engineering, land 52 surveying, architectural, landscape architectural and/or geological 53 services as such services are defined in article 145, article 147 and 54 article 148 of the education law, each member of such limited liability 55 company must be licensed pursuant to article 145, article 147 and/or 56 article 148 of the education law to practice one or more of suchA. 6377--A 4 1 professions in this state. [With respect to a professional service2limited liability company formed to provide licensed clinical social3work services as such services are defined in article 154 of the educa-4tion law, each member of such limited liability company shall be5licensed pursuant to article 154 of the education law to practice6licensed clinical social work in this state.] With respect to a profes- 7 sional service limited liability company formed to provide creative arts 8 therapy services as such services are defined in article 163 of the 9 education law, each member of such limited liability company must be 10 licensed pursuant to article 163 of the education law to practice crea- 11 tive arts therapy in this state. With respect to a professional service 12 limited liability company formed to provide marriage and family therapy 13 services as such services are defined in article 163 of the education 14 law, each member of such limited liability company must be licensed 15 pursuant to article 163 of the education law to practice marriage and 16 family therapy in this state. With respect to a professional service 17 limited liability company formed to provide mental health counseling 18 services as such services are defined in article 163 of the education 19 law, each member of such limited liability company must be licensed 20 pursuant to article 163 of the education law to practice mental health 21 counseling in this state. With respect to a professional service limited 22 liability company formed to provide psychoanalysis services as such 23 services are defined in article 163 of the education law, each member of 24 such limited liability company must be licensed pursuant to article 163 25 of the education law to practice psychoanalysis in this state. With 26 respect to a professional service limited liability company formed to 27 provide applied behavior analysis services as such services are defined 28 in article 167 of the education law, each member of such limited liabil- 29 ity company must be licensed or certified pursuant to article 167 of the 30 education law to practice applied behavior analysis in this state. 31 § 3. Subdivision (a) of section 1301 of the limited liability company 32 law, as amended by chapter 475 of the laws of 2014, is amended to read 33 as follows: 34 (a) "Foreign professional service limited liability company" means a 35 professional service limited liability company, whether or not denomi- 36 nated as such, organized under the laws of a jurisdiction other than 37 this state, (i) each of whose members and managers, if any, is a profes- 38 sional authorized by law to render a professional service within this 39 state and who is or has been engaged in the practice of such profession 40 in such professional service limited liability company or a predecessor 41 entity, or will engage in the practice of such profession in the profes- 42 sional service limited liability company within thirty days of the date 43 such professional becomes a member, or each of whose members and manag- 44 ers, if any, is a professional at least one of such members is author- 45 ized by law to render a professional service within this state and who 46 is or has been engaged in the practice of such profession in such 47 professional service limited liability company or a predecessor entity, 48 or will engage in the practice of such profession in the professional 49 service limited liability company within thirty days of the date such 50 professional becomes a member, or (ii) authorized by, or holding a 51 license, certificate, registration or permit issued by the licensing 52 authority pursuant to, the education law to render a professional 53 service within this state; except that all members and managers, if any, 54 of a foreign professional service limited liability company that 55 provides health services in this state shall be licensed in this state. 56 With respect to a foreign professional service limited liability companyA. 6377--A 5 1 which provides veterinary services as such services are defined in arti- 2 cle 135 of the education law, each member of such foreign professional 3 service limited liability company shall be licensed pursuant to article 4 135 of the education law to practice veterinary medicine. With respect 5 to a foreign professional service limited liability company which 6 provides medical services as such services are defined in article 131 of 7 the education law, each member of such foreign professional service 8 limited liability company must be licensed pursuant to article 131 of 9 the education law to practice medicine in this state. Notwithstanding 10 any other provision of this section, any person licensed pursuant to 11 article 131 of the education law to practice medicine and any person 12 licensed pursuant to articles 132, 137, 140, 141, 143, 144, 153, 154, 13 155 or 156 or subdivision 3 of section 6902 of article 139 of the educa- 14 tion law may form, or cause to be formed, a foreign professional service 15 limited liability company to provide multidisciplinary services with one 16 or more licensed professionals, subject to the following conditions: (i) 17 each member of such limited liability company must be licensed pursuant 18 to title eight of the education law to practice his or her profession in 19 this state; (ii) each member shall only practice his or her profession 20 as specified in his or her respective professional enabling statute 21 under title eight of the education law; and (iii) any clinical inte- 22 gration of professional practices under this section shall not alter, 23 expand or curtail the scope of practice of any of the members; provided 24 further that: (A) no member shall, directly or indirectly, interfere 25 with the clinical judgment or legitimate clinical practice of another 26 member; and (B) no member shall order or direct another member to prac- 27 tice beyond the scope of his or her license. With respect to a foreign 28 professional service limited liability company which provides dental 29 services as such services are defined in article 133 of the education 30 law, each member of such foreign professional service limited liability 31 company must be licensed pursuant to article 133 of the education law to 32 practice dentistry in this state. With respect to a foreign professional 33 service limited liability company which provides professional engineer- 34 ing, land surveying, geologic, architectural and/or landscape architec- 35 tural services as such services are defined in article 145, article 147 36 and article 148 of the education law, each member of such foreign 37 professional service limited liability company must be licensed pursuant 38 to article 145, article 147 and/or article 148 of the education law to 39 practice one or more of such professions in this state. [With respect to40a foreign professional service limited liability company which provides41licensed clinical social work services as such services are defined in42article 154 of the education law, each member of such foreign profes-43sional service limited liability company shall be licensed pursuant to44article 154 of the education law to practice clinical social work in45this state.] With respect to a foreign professional service limited 46 liability company which provides creative arts therapy services as such 47 services are defined in article 163 of the education law, each member of 48 such foreign professional service limited liability company must be 49 licensed pursuant to article 163 of the education law to practice crea- 50 tive arts therapy in this state. With respect to a foreign professional 51 service limited liability company which provides marriage and family 52 therapy services as such services are defined in article 163 of the 53 education law, each member of such foreign professional service limited 54 liability company must be licensed pursuant to article 163 of the educa- 55 tion law to practice marriage and family therapy in this state. With 56 respect to a foreign professional service limited liability companyA. 6377--A 6 1 which provides mental health counseling services as such services are 2 defined in article 163 of the education law, each member of such foreign 3 professional service limited liability company must be licensed pursuant 4 to article 163 of the education law to practice mental health counseling 5 in this state. With respect to a foreign professional service limited 6 liability company which provides psychoanalysis services as such 7 services are defined in article 163 of the education law, each member of 8 such foreign professional service limited liability company must be 9 licensed pursuant to article 163 of the education law to practice 10 psychoanalysis in this state. With respect to a foreign professional 11 service limited liability company which provides applied behavior analy- 12 sis services as such services are defined in article 167 of the educa- 13 tion law, each member of such foreign professional service limited 14 liability company must be licensed or certified pursuant to article 167 15 of the education law to practice applied behavior analysis in this 16 state. 17 § 4. Paragraph (a) of section 1503 of the business corporation law, as 18 amended by chapter 475 of the laws of 2014, is amended to read as 19 follows: 20 (a) Notwithstanding any other provision of law, (i) one or more indi- 21 viduals duly authorized by law to render the same professional service 22 within the state may organize, or cause to be organized, a professional 23 service corporation for pecuniary profit under this article for the 24 purpose of rendering the same professional service, except that one or 25 more individuals duly authorized by law to practice professional engi- 26 neering, architecture, landscape architecture, land surveying or geology 27 within the state may organize, or cause to be organized, a professional 28 service corporation or a design professional service corporation for 29 pecuniary profit under this article for the purpose of rendering such 30 professional services as such individuals are authorized to practice, 31 and (ii) one or more individuals licensed to practice pursuant to arti- 32 cle 131 and one or more individuals licensed pursuant to articles 132, 33 137, 140, 141, 143, 144, 153, 154, 155 or 156 or subdivision 3 of 34 section 6902 of article 139 of title eight of the education law may 35 organize, or cause to be organized, for business purposes only, a 36 professional service corporation formed for pecuniary profit under this 37 article for the purpose of rendering multidisciplinary services within 38 such a corporation as such individuals are authorized to practice indi- 39 vidually in his or her respective professions, subject to the following 40 conditions: (A) individual who organizes, or causes to organize, such 41 corporation must be licensed pursuant to title eight of the education 42 law to practice his or her profession in this state; (B) each member 43 shall only practice his or her profession as specified in his or her 44 respective professional enabling statute under title eight of the educa- 45 tion law; and (C) any clinical integration of professional practices 46 under this section shall not alter, expand or curtail the scope of prac- 47 tice of any of the members; (D) no individual shall, directly or indi- 48 rectly, interfere with the clinical judgment or legitimate clinical 49 practice of another individual; and (E) no individual shall order or 50 direct another individual to practice beyond the scope of his or her 51 license. 52 § 5. Subdivision (q) of section 121-1500 of the partnership law, as 53 amended by chapter 475 of the laws of 2014, is amended to read as 54 follows: 55 (q) Each partner of a registered limited liability partnership formed 56 to provide medical services in this state must be licensed pursuant toA. 6377--A 7 1 article 131 of the education law to practice medicine in this state [and2each]. Notwithstanding any other provision of this section, any person 3 licensed pursuant to article 131 of the education law to practice medi- 4 cine and any person licensed pursuant to articles 132, 137, 140, 141, 5 143, 144, 153, 154, 155 or 156 subdivision 3 of section 6902 of article 6 139 of the education law may form, or cause to be formed, a registered 7 limited liability partnership to provide multidisciplinary services with 8 one or more licensed professionals, subject to the following conditions: 9 (i) each partner of such limited liability partnership must be licensed 10 pursuant to title eight of the education law to practice his or her 11 profession in this state; (ii) each partner shall only practice his or 12 her profession as specified in his or her respective professional enabl- 13 ing statute under title eight of the education law; and (iii) any clin- 14 ical integration of the professional practices under this section shall 15 not alter, expand or curtail the scope of practice of any of the part- 16 ners; provided further that: (A) no partner shall, directly or indirect- 17 ly, interfere with the clinical judgment or legitimate clinical practice 18 of another partner; and (B) no partner shall order or direct another 19 partner to practice beyond the scope of his or her license. Each part- 20 ner of a registered limited liability partnership formed to provide 21 dental services in this state must be licensed pursuant to article 133 22 of the education law to practice dentistry in this state. Each partner 23 of a registered limited liability partnership formed to provide veteri- 24 nary services in this state must be licensed pursuant to article 135 of 25 the education law to practice veterinary medicine in this state. Each 26 partner of a registered limited liability partnership formed to provide 27 professional engineering, land surveying, geological services, architec- 28 tural and/or landscape architectural services in this state must be 29 licensed pursuant to article 145, article 147 and/or article 148 of the 30 education law to practice one or more of such professions in this state. 31 [Each partner of a registered limited liability partnership formed to32provide licensed clinical social work services in this state must be33licensed pursuant to article 154 of the education law to practice clin-34ical social work in this state.] Each partner of a registered limited 35 liability partnership formed to provide creative arts therapy services 36 in this state must be licensed pursuant to article 163 of the education 37 law to practice creative arts therapy in this state. Each partner of a 38 registered limited liability partnership formed to provide marriage and 39 family therapy services in this state must be licensed pursuant to arti- 40 cle 163 of the education law to practice marriage and family therapy in 41 this state. Each partner of a registered limited liability partnership 42 formed to provide mental health counseling services in this state must 43 be licensed pursuant to article 163 of the education law to practice 44 mental health counseling in this state. Each partner of a registered 45 limited liability partnership formed to provide psychoanalysis services 46 in this state must be licensed pursuant to article 163 of the education 47 law to practice psychoanalysis in this state. Each partner of a regis- 48 tered limited liability partnership formed to provide applied behavior 49 analysis service in this state must be licensed or certified pursuant to 50 article 167 of the education law to practice applied behavior analysis 51 in this state. 52 § 6. Subdivision (q) of section 121-1502 of the partnership law, as 53 amended by chapter 475 of the laws of 2014, is amended to read as 54 follows: 55 (q) Each partner of a foreign limited liability partnership which 56 provides medical services in this state must be licensed pursuant toA. 6377--A 8 1 article 131 of the education law to practice medicine in the state [and2each]. Notwithstanding any other provision of this section, any person 3 licensed pursuant to article 131 of the education law to practice medi- 4 cine and any person licensed pursuant to articles 132, 137, 140, 141, 5 143, 144, 153, 154, 155 or 156 or subdivision 3 of section 6902 of arti- 6 cle 139 of the education law may form, or cause to be formed, a foreign 7 limited liability partnership to provide multidisciplinary services with 8 one or more licensed professionals, subject to the following conditions: 9 (i) each partner of such foreign limited liability partnership must be 10 licensed pursuant to title eight of the education law to practice his or 11 her profession in this state; (ii) each partner shall only practice his 12 or her profession as specified in his or her respective professional 13 enabling statute under title eight of the education law; and (iii) any 14 clinical integration of professional practices under this section shall 15 not alter, expand or curtail the scope of practice of any of the part- 16 ners; provided further that: (A) no partner shall, directly or indirect- 17 ly, interfere with the clinical judgment or legitimate clinical practice 18 of another partner; and (B) no partner shall order or direct another 19 partner to practice beyond the scope of his or her license. Each partner 20 of a foreign limited liability partnership which provides dental 21 services in the state must be licensed pursuant to article 133 of the 22 education law to practice dentistry in this state. Each partner of a 23 foreign limited liability partnership which provides veterinary service 24 in the state shall be licensed pursuant to article 135 of the education 25 law to practice veterinary medicine in this state. Each partner of a 26 foreign limited liability partnership which provides professional engi- 27 neering, land surveying, geological services, architectural and/or land- 28 scape architectural services in this state must be licensed pursuant to 29 article 145, article 147 and/or article 148 of the education law to 30 practice one or more of such professions. [Each partner of a foreign31limited liability partnership which provides licensed clinical social32work services in this state must be licensed pursuant to article 154 of33the education law to practice licensed clinical social work in this34state.] Each partner of a foreign limited liability partnership which 35 provides creative arts therapy services in this state must be licensed 36 pursuant to article 163 of the education law to practice creative arts 37 therapy in this state. Each partner of a foreign limited liability part- 38 nership which provides marriage and family therapy services in this 39 state must be licensed pursuant to article 163 of the education law to 40 practice marriage and family therapy in this state. Each partner of a 41 foreign limited liability partnership which provides mental health coun- 42 seling services in this state must be licensed pursuant to article 163 43 of the education law to practice mental health counseling in this state. 44 Each partner of a foreign limited liability partnership which provides 45 psychoanalysis services in this state must be licensed pursuant to arti- 46 cle 163 of the education law to practice psychoanalysis in this state. 47 Each partner of a foreign limited liability partnership which provides 48 applied behavior analysis services in this state must be licensed or 49 certified pursuant to article 167 of the education law to practice 50 applied behavior analysis in this state. 51 § 7. Section 6509-a of the education law, as amended by chapter 555 of 52 the laws of 1993, is amended to read as follows: 53 § 6509-a. Additional definition of professional misconduct; limited 54 application. Notwithstanding any inconsistent provision of this article 55 or of any other provision of law to the contrary, the license or regis- 56 tration of a person subject to the provisions of articles one hundredA. 6377--A 9 1 thirty-two, one hundred thirty-three, one hundred thirty-six, one 2 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 3 one hundred forty-three, one hundred forty-four, one hundred fifty-six, 4 one hundred fifty-nine and one hundred sixty-four of this chapter may be 5 revoked, suspended or annulled or such person may be subject to any 6 other penalty provided in section sixty-five hundred eleven of this 7 article in accordance with the provisions and procedure of this article 8 for the following: 9 That any person subject to the above enumerated articles, has directly 10 or indirectly requested, received or participated in the division, 11 transference, assignment, rebate, splitting or refunding of a fee for, 12 or has directly requested, received or profited by means of a credit or 13 other valuable consideration as a commission, discount or gratuity in 14 connection with the furnishing of professional care, or service, includ- 15 ing x-ray examination and treatment, or for or in connection with the 16 sale, rental, supplying or furnishing of clinical laboratory services or 17 supplies, x-ray laboratory services or supplies, inhalation therapy 18 service or equipment, ambulance service, hospital or medical supplies, 19 physiotherapy or other therapeutic service or equipment, artificial 20 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 21 optical appliances, supplies or equipment, devices for aid of hearing, 22 drugs, medication or medical supplies or any other goods, services or 23 supplies prescribed for medical diagnosis, care or treatment under this 24 chapter, except payment, not to exceed thirty-three and one-third per 25 centum of any fee received for x-ray examination, diagnosis or treat- 26 ment, to any hospital furnishing facilities for such examination, diag- 27 nosis or treatment. Nothing contained in this section shall prohibit 28 such persons from practicing as partners, in groups or as a professional 29 corporation or as a university faculty practice corporation nor from 30 pooling fees and moneys received, either by the partnerships, profes- 31 sional corporations, university faculty practice corporations or groups 32 by the individual members thereof, for professional services furnished 33 by any individual professional member, or employee of such partnership, 34 corporation or group, nor shall the professionals constituting the part- 35 nerships, corporations or groups be prohibited from sharing, dividing or 36 apportioning the fees and moneys received by them or by the partnership, 37 corporation or group in accordance with a partnership or other agree- 38 ment; provided that no such practice as partners, corporations or in 39 groups or pooling of fees or moneys received or shared, division or 40 apportionment of fees shall be permitted with respect to care and treat- 41 ment under the workers' compensation law except as expressly authorized 42 by the workers' compensation law. Nothing contained in this section 43 shall prohibit a multidisciplinary services practice formed pursuant to 44 subdivision (a) of section twelve hundred three of the limited liability 45 company law, subdivision (b) of section twelve hundred seven of the 46 limited liability company law, subdivision (a) of section thirteen 47 hundred one of the limited liability company law, paragraph (a) of 48 section fifteen hundred three of the business corporation law, subdivi- 49 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 50 of section 121-1502 of the partnership law from pooling fees or monies 51 received. Nothing contained in this chapter shall prohibit a medical or 52 dental expense indemnity corporation pursuant to its contract with the 53 subscriber from prorationing a medical or dental expense indemnity 54 allowance among two or more professionals in proportion to the services 55 rendered by each such professional at the request of the subscriber, 56 provided that prior to payment thereof such professionals shall submitA. 6377--A 10 1 both to the medical or dental expense indemnity corporation and to the 2 subscriber statements itemizing the services rendered by each such 3 professional and the charges therefor. 4 § 8. Subdivision 19 of section 6530 of the education law, as added by 5 chapter 606 of the laws of 1991, is amended to read as follows: 6 19. Permitting any person to share in the fees for professional 7 services, other than: a partner, employee, associate in a professional 8 firm or corporation, professional subcontractor or consultant authorized 9 to practice medicine, [or] a legally authorized trainee practicing under 10 the supervision of a licensee, or an authorized professional licensed 11 pursuant to article one hundred thirty-one, one hundred thirty-two, one 12 hundred thirty-seven, one hundred forty, one hundred forty-one, one 13 hundred forty-three, one hundred forty-four, one hundred fifty-three, 14 one hundred fifty-four, one hundred fifty-five, one hundred fifty-six or 15 one hundred fifty-nine or subdivision three of section sixty nine 16 hundred two of article one hundred thirty-nine of this chapter providing 17 professional services in the same practice. This prohibition shall 18 include any arrangement or agreement whereby the amount received in 19 payment for furnishing space, facilities, equipment or personnel 20 services used by a licensee constitutes a percentage of, or is otherwise 21 dependent upon, the income or receipts of the licensee from such prac- 22 tice, except as otherwise provided by law with respect to a facility 23 licensed pursuant to article twenty-eight of the public health law or 24 article thirteen of the mental hygiene law; 25 § 9. Section 6531 of the education law, as amended by chapter 555 of 26 the laws of 1993, is amended to read as follows: 27 § 6531. Additional definition of professional misconduct, limited 28 application. Notwithstanding any inconsistent provision of this article 29 or any other provisions of law to the contrary, the license or registra- 30 tion of a person subject to the provisions of this article and article 31 one hundred thirty-one-B of this chapter may be revoked, suspended, or 32 annulled or such person may be subject to any other penalty provided in 33 section two hundred thirty-a of the public health law in accordance with 34 the provisions and procedures of this article for the following: 35 That any person subject to the above-enumerated articles has directly 36 or indirectly requested, received or participated in the division, 37 transference, assignment, rebate, splitting, or refunding of a fee for, 38 or has directly requested, received or profited by means of a credit or 39 other valuable consideration as a commission, discount or gratuity, in 40 connection with the furnishing of professional care or service, includ- 41 ing x-ray examination and treatment, or for or in connection with the 42 sale, rental, supplying, or furnishing of clinical laboratory services 43 or supplies, x-ray laboratory services or supplies, inhalation therapy 44 service or equipment, ambulance service, hospital or medical supplies, 45 physiotherapy or other therapeutic service or equipment, artificial 46 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 47 optical appliances, supplies, or equipment, devices for aid of hearing, 48 drugs, medication, or medical supplies, or any other goods, services, or 49 supplies prescribed for medical diagnosis, care, or treatment under this 50 chapter, except payment, not to exceed thirty-three and one-third 51 percent of any fee received for x-ray examination, diagnosis, or treat- 52 ment, to any hospital furnishing facilities for such examination, diag- 53 nosis, or treatment. Nothing contained in this section shall prohibit 54 such persons from practicing as partners, in groups or as a professional 55 corporation or as a university faculty practice corporation, nor from 56 pooling fees and moneys received, either by the partnerships, profes-A. 6377--A 11 1 sional corporations, or university faculty practice corporations or 2 groups by the individual members thereof, for professional services 3 furnished by an individual professional member, or employee of such 4 partnership, corporation, or group, nor shall the professionals consti- 5 tuting the partnerships, corporations or groups be prohibited from shar- 6 ing, dividing, or apportioning the fees and moneys received by them or 7 by the partnership, corporation, or group in accordance with a partner- 8 ship or other agreement; provided that no such practice as partners, 9 corporations, or groups, or pooling of fees or moneys received or 10 shared, division or apportionment of fees shall be permitted with 11 respect to and treatment under the workers' compensation law. Nothing 12 contained in this section shall prohibit a multidisciplinary services 13 practice formed pursuant to subdivision (a) of section twelve hundred 14 three of the limited liability company law, subdivision (b) of section 15 twelve hundred seven of the limited liability company law, subdivision 16 (a) of section thirteen hundred one of the limited liability company 17 law, paragraph (a) of section fifteen hundred three of the business 18 corporation law, subdivision (q) of section 121-1500 of the partnership 19 law, or subdivision (q) of section 121-1502 of the partnership law from 20 pooling fees or monies received. Nothing contained in this chapter shall 21 prohibit a corporation licensed pursuant to article forty-three of the 22 insurance law pursuant to its contract with the subscribed from prora- 23 tioning a medical or dental expenses indemnity allowance among two or 24 more professionals in proportion to the services rendered by each such 25 professional at the request of the subscriber, provided that prior to 26 payment thereof such professionals shall submit both to the corporation 27 licensed pursuant to article forty-three of the insurance law and to the 28 subscriber statements itemizing the services rendered by each such 29 professional and the charges therefor. 30 § 10. Subdivision 1 of section 2801 of the public health law, as 31 amended by section 1 of subpart B of part S of chapter 57 of the laws of 32 2018, is amended to read as follows: 33 1. "Hospital" means a facility or institution engaged principally in 34 providing services by or under the supervision of a physician or, in the 35 case of a dental clinic or dental dispensary, of a dentist, or, in the 36 case of a midwifery birth center, of a midwife, for the prevention, 37 diagnosis or treatment of human disease, pain, injury, deformity or 38 physical condition, including, but not limited to, a general hospital, 39 public health center, diagnostic center, treatment center, dental clin- 40 ic, dental dispensary, rehabilitation center other than a facility used 41 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 42 tal, chronic disease hospital, maternity hospital, midwifery birth 43 center, lying-in-asylum, out-patient department, out-patient lodge, 44 dispensary and a laboratory or central service facility serving one or 45 more such institutions, but the term hospital shall not include an 46 institution, sanitarium or other facility engaged principally in provid- 47 ing services for the prevention, diagnosis or treatment of mental disa- 48 bility and which is subject to the powers of visitation, examination, 49 inspection and investigation of the department of mental hygiene except 50 for those distinct parts of such a facility which provide hospital 51 service. The provisions of this article shall not apply to a facility or 52 institution engaged principally in providing services by or under the 53 supervision of the bona fide members and adherents of a recognized reli- 54 gious organization whose teachings include reliance on spiritual means 55 through prayer alone for healing in the practice of the religion of such 56 organization and where services are provided in accordance with thoseA. 6377--A 12 1 teachings or to a multidisciplinary services practice formed pursuant to 2 subdivision (a) of section twelve hundred three of the limited liability 3 company law, subdivision (b) of section twelve hundred seven of the 4 limited liability company law, subdivision (a) of section thirteen 5 hundred one of the limited liability company law, paragraph (a) of 6 section fifteen hundred three of the business corporation law, subdivi- 7 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 8 of section 121-1502 of the partnership law. No provision of this arti- 9 cle or any other provision of law shall be construed to: (a) limit the 10 volume of mental health or substance use disorder services that can be 11 provided by a provider of primary care services licensed under this 12 article and authorized to provide integrated services in accordance with 13 regulations issued by the commissioner in consultation with the commis- 14 sioner of the office of mental health and the commissioner of the office 15 of alcoholism and substance abuse services, including regulations issued 16 pursuant to subdivision seven of section three hundred sixty-five-l of 17 the social services law or part L of chapter fifty-six of the laws of 18 two thousand twelve; (b) require a provider licensed pursuant to article 19 thirty-one of the mental hygiene law or certified pursuant to article 20 thirty-two of the mental hygiene law to obtain an operating certificate 21 from the department if such provider has been authorized to provide 22 integrated services in accordance with regulations issued by the commis- 23 sioner in consultation with the commissioner of the office of mental 24 health and the commissioner of the office of alcoholism and substance 25 abuse services, including regulations issued pursuant to subdivision 26 seven of section three hundred sixty-five-l of the social services law 27 or part L of chapter fifty-six of the laws of two thousand twelve. 28 § 10-a. Subdivision 1 of section 2801 of the public health law, as 29 amended by section 1 of part Z of chapter 57 of the laws of 2019, is 30 amended to read as follows: 31 1. "Hospital" means a facility or institution engaged principally in 32 providing services by or under the supervision of a physician or, in the 33 case of a dental clinic or dental dispensary, of a dentist, or, in the 34 case of a midwifery birth center, of a midwife, for the prevention, 35 diagnosis or treatment of human disease, pain, injury, deformity or 36 physical condition, including, but not limited to, a general hospital, 37 public health center, diagnostic center, treatment center, dental clin- 38 ic, dental dispensary, rehabilitation center other than a facility used 39 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 40 tal, chronic disease hospital, maternity hospital, midwifery birth 41 center, lying-in-asylum, out-patient department, out-patient lodge, 42 dispensary and a laboratory or central service facility serving one or 43 more such institutions, but the term hospital shall not include an 44 institution, sanitarium or other facility engaged principally in provid- 45 ing services for the prevention, diagnosis or treatment of mental disa- 46 bility and which is subject to the powers of visitation, examination, 47 inspection and investigation of the department of mental hygiene except 48 for those distinct parts of such a facility which provide hospital 49 service. The provisions of this article shall not apply to a facility or 50 institution engaged principally in providing services by or under the 51 supervision of the bona fide members and adherents of a recognized reli- 52 gious organization whose teachings include reliance on spiritual means 53 through prayer alone for healing in the practice of the religion of such 54 organization and where services are provided in accordance with those 55 teachings or to a multidisciplinary services practice formed pursuant to 56 subdivision (a) of section twelve hundred three of the limited liabilityA. 6377--A 13 1 company law, subdivision (b) of section twelve hundred seven of the 2 limited liability company law, subdivision (a) of section thirteen 3 hundred one of the limited liability company law, paragraph (a) of 4 section fifteen hundred three of the business corporation law, subdivi- 5 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 6 of section 121-1502 of the partnership law. No provision of this arti- 7 cle or any other provision of law shall be construed to: (a) limit the 8 volume of mental health, substance use disorder services or develop- 9 mental disability services that can be provided by a provider of primary 10 care services licensed under this article and authorized to provide 11 integrated services in accordance with regulations issued by the commis- 12 sioner in consultation with the commissioner of the office of mental 13 health, the commissioner of the office of alcoholism and substance abuse 14 services and the commissioner of the office for people with develop- 15 mental disabilities, including regulations issued pursuant to subdivi- 16 sion seven of section three hundred sixty-five-l of the social services 17 law or part L of chapter fifty-six of the laws of two thousand twelve; 18 (b) require a provider licensed pursuant to article thirty-one of the 19 mental hygiene law or certified pursuant to article sixteen or article 20 thirty-two of the mental hygiene law to obtain an operating certificate 21 from the department if such provider has been authorized to provide 22 integrated services in accordance with regulations issued by the commis- 23 sioner in consultation with the commissioner of the office of mental 24 health, the commissioner of the office of alcoholism and substance abuse 25 services and the commissioner of the office for people with develop- 26 mental disabilities, including regulations issued pursuant to subdivi- 27 sion seven of section three hundred sixty-five-l of the social services 28 law or part L of chapter fifty-six of the laws of two thousand twelve. 29 § 11. This act shall take effect on the thirtieth day after it shall 30 have become a law; provided, however, that section ten-a of this act 31 shall take effect on the same date and in the same manner as section 1 32 of part Z of chapter 57 of the laws of 2019, takes effect.