Bill Text: NY A06377 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-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. LBD04699-01-9A. 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. [With29respect to a professional service limited liability company formed to30provide licensed clinical social work services as such services are31defined in article 154 of the education law, each member of such limited32liability company shall be licensed pursuant to article 154 of the33education 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 toA. 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 service56limited liability company formed to provide licensed clinical socialA. 6377 4 1work services as such services are defined in article 154 of the educa-2tion law, each member of such limited liability company shall be3licensed pursuant to article 154 of the education law to practice4licensed 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 professionalA. 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 to38a foreign professional service limited liability company which provides39licensed clinical social work services as such services are defined in40article 154 of the education law, each member of such foreign profes-41sional service limited liability company shall be licensed pursuant to42article 154 of the education law to practice clinical social work in43this 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 foreignA. 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 [and56each]. Notwithstanding any other provision of this section, any personA. 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 to30provide licensed clinical social work services in this state must be31licensed pursuant to article 154 of the education law to practice clin-32ical 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 [and56each]. Notwithstanding any other provision of this section, any personA. 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 foreign29limited liability partnership which provides licensed clinical social30work services in this state must be licensed pursuant to article 154 of31the education law to practice licensed clinical social work in this32state.] 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 theA. 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 orA. 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 toA. 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.
