Bill Text: NY A06525 | 2019-2020 | General Assembly | Introduced
Bill Title: Permits doctors of chiropractic to form limited liability companies.
Spectrum: Moderate Partisan Bill (Democrat 21-6)
Status: (Introduced - Dead) 2020-01-08 - referred to higher education [A06525 Detail]
Download: New_York-2019-A06525-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6525 2019-2020 Regular Sessions IN ASSEMBLY March 11, 2019 ___________ Introduced by M. of A. O'DONNELL, BENEDETTO, LENTOL, STIRPE, GUNTHER, LIFTON, LALOR, ZEBROWSKI, WEPRIN, ENGLEBRIGHT, ARROYO, WOERNER, GOTT- FRIED, SANTABARBARA, RODRIGUEZ -- Multi-Sponsored by -- M. of A. ABBATE, BRABENEC, KIM, KOLB, LUPARDO, McDONOUGH, MONTESANO, RAIA, THIELE -- 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 public health law and the educa- tion law, in relation to allowing doctors of chiropractic licensed under title VIII, article 132 of the education law 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. With respect to a professional service limited liability 17 company formed to provide dental services as such services are defined 18 in article 133 of the education law, each member of such limited liabil- 19 ity company must be licensed pursuant to article 133 of the education EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07170-01-9A. 6525 2 1 law to practice dentistry in this state. With respect to a professional 2 service limited liability company formed to provide veterinary services 3 as such services are defined in article 135 of the education law, each 4 member of such limited liability company must be licensed pursuant to 5 article 135 of the education law to practice veterinary medicine in this 6 state. With respect to a professional service limited liability company 7 formed to provide professional engineering, land surveying, architec- 8 tural, landscape architectural and/or geological services as such 9 services are defined in article 145, article 147 and article 148 of the 10 education law, each member of such limited liability company must be 11 licensed pursuant to article 145, article 147 and/or article 148 of the 12 education law to practice one or more of such professions in this state. 13 With respect to a professional service limited liability company formed 14 to provide licensed clinical social work services as such services are 15 defined in article 154 of the education law, each member of such limited 16 liability company shall be licensed pursuant to article 154 of the 17 education law to practice licensed clinical social work in this state. 18 With respect to a professional service limited liability company formed 19 to provide creative arts therapy services as such services are defined 20 in article 163 of the education law, each member of such limited liabil- 21 ity company must be licensed pursuant to article 163 of the education 22 law to practice creative arts therapy in this state. With respect to a 23 professional service limited liability company formed to provide 24 marriage and family therapy services as such services are defined in 25 article 163 of the education law, each member of such limited liability 26 company must be licensed pursuant to article 163 of the education law to 27 practice marriage and family therapy in this state. With respect to a 28 professional service limited liability company formed to provide mental 29 health counseling services as such services are defined in article 163 30 of the education law, each member of such limited liability company must 31 be licensed pursuant to article 163 of the education law to practice 32 mental health counseling in this state. With respect to a professional 33 service limited liability company formed to provide psychoanalysis 34 services as such services are defined in article 163 of the education 35 law, each member of such limited liability company must be licensed 36 pursuant to article 163 of the education law to practice psychoanalysis 37 in this state. With respect to a professional service limited liability 38 company formed to provide applied behavior analysis services as such 39 services are defined in article 167 of the education law, each member of 40 such limited liability company must be licensed or certified pursuant to 41 article 167 of the education law to practice applied behavior analysis 42 in this state. In addition to engaging in such profession or 43 professions, a professional service limited liability company may engage 44 in any other business or activities as to which a limited liability 45 company may be formed under section two hundred one of this chapter. 46 Notwithstanding any other provision of this section, a professional 47 service limited liability company (i) authorized to practice law may 48 only engage in another profession or business or activities or (ii) 49 which is engaged in a profession or other business or activities other 50 than law may only engage in the practice of law, to the extent not 51 prohibited by any other law of this state or any rule adopted by the 52 appropriate appellate division of the supreme court or the court of 53 appeals. Notwithstanding any other provision of this section, with 54 respect to a limited liability company formed to provide integrated, 55 multidisciplinary medical and chiropractic services, as such services 56 are respectively defined under articles 131 and 132 of the educationA. 6525 3 1 law, (i) each member of such limited liability company must be licensed 2 pursuant to article 131 or article 132 of the education law to practice 3 his or her profession in this state, (ii) each member shall only prac- 4 tice his or her profession as specified in his or her respective profes- 5 sional enabling statute under article 131 or article 132 of the educa- 6 tion law, and (iii) the clinical integration of professional practices 7 within an integrated, multidisciplinary entity organized under this 8 section does not alter, expand or curtail the scope of practice of any 9 of the individuals licensed under the statute of his or her respective 10 professional enabling law, provided that: (a) the clinical judgment, 11 management and clinical decision-making of one or more article 131 12 providers in an integrated, multidisciplinary professional service 13 limited liability company shall be controlling, (b) members licensed 14 under article 132 of the education law, shall not, directly or indirect- 15 ly, interfere with the clinical judgment or legitimate clinical practice 16 of a professional licensed under article 131, and (c) individuals 17 licensed under article 131 may not order or direct a professional 18 licensed under article 132 of the education law to practice beyond the 19 scope of his or her license under article 132 of the education law, even 20 if supervised directly or indirectly by a professional licensed under 21 article 131. 22 § 2. Subdivision (b) of section 1207 of the limited liability company 23 law, as amended by chapter 475 of the laws of 2014, is amended to read 24 as follows: 25 (b) With respect to a professional service limited liability company 26 formed to provide medical services as such services are defined in arti- 27 cle 131 of the education law, each member of such limited liability 28 company must be licensed pursuant to article 131 of the education law to 29 practice medicine in this state. With respect to a professional service 30 limited liability company formed to provide dental services as such 31 services are defined in article 133 of the education law, each member of 32 such limited liability company must be licensed pursuant to article 133 33 of the education law to practice dentistry in this state. With respect 34 to a professional service limited liability company formed to provide 35 veterinary services as such services are defined in article 135 of the 36 education law, each member of such limited liability company must be 37 licensed pursuant to article 135 of the education law to practice veter- 38 inary medicine in this state. With respect to a professional service 39 limited liability company formed to provide professional engineering, 40 land surveying, architectural, landscape architectural and/or geological 41 services as such services are defined in article 145, article 147 and 42 article 148 of the education law, each member of such limited liability 43 company must be licensed pursuant to article 145, article 147 and/or 44 article 148 of the education law to practice one or more of such 45 professions in this state. With respect to a professional service limit- 46 ed liability company formed to provide licensed clinical social work 47 services as such services are defined in article 154 of the education 48 law, each member of such limited liability company shall be licensed 49 pursuant to article 154 of the education law to practice licensed clin- 50 ical social work in this state. With respect to a professional service 51 limited liability company formed to provide creative arts therapy 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 creative arts 55 therapy in this state. With respect to a professional service limited 56 liability company formed to provide marriage and family therapy servicesA. 6525 4 1 as such services are defined in article 163 of the education law, each 2 member of such limited liability company must be licensed pursuant to 3 article 163 of the education law to practice marriage and family therapy 4 in this state. With respect to a professional service limited liability 5 company formed to provide mental health counseling services as such 6 services are defined in article 163 of the education law, each member of 7 such limited liability company must be licensed pursuant to article 163 8 of the education law to practice mental health counseling in this state. 9 With respect to a professional service limited liability company formed 10 to provide psychoanalysis services as such services are defined in arti- 11 cle 163 of the education law, each member of such limited liability 12 company must be licensed pursuant to article 163 of the education law to 13 practice psychoanalysis in this state. With respect to a professional 14 service limited liability company formed to provide applied behavior 15 analysis services as such services are defined in article 167 of the 16 education law, each member of such limited liability company must be 17 licensed or certified pursuant to article 167 of the education law to 18 practice applied behavior analysis in this state. Notwithstanding any 19 other provision of this section, with respect to a professional service 20 limited liability company formed to provide integrated, multidiscipli- 21 nary medical and chiropractic services, as such services are respective- 22 ly defined under articles 131 and 132 of the education law, (i) each 23 member of such limited liability company must be licensed pursuant to 24 article 131 or article 132 of the education law to practice his or her 25 profession in this state, (ii) each member shall only practice his or 26 her profession as specified in his or her respective professional enabl- 27 ing statute under article 131 or article 132 of the education law, and 28 (iii) the clinical integration of professional practices within an inte- 29 grated, multidisciplinary entity organized under this section does not 30 alter, expand or curtail the scope of practice of any of the individuals 31 licensed under the statute of his or her respective professional enabl- 32 ing law, provided that: (a) the clinical judgment, management and clin- 33 ical decision-making of one or more article 131 providers in an inte- 34 grated, multidisciplinary professional service limited liability company 35 shall be controlling, (b) members licensed under article 132 of the 36 education law, shall not, directly or indirectly, interfere with the 37 clinical judgment or legitimate clinical practice of a professional 38 licensed under article 131, and (c) individuals licensed under article 39 131 may not order or direct a professional licensed under article 132 of 40 the education law to practice beyond the scope of his or her license 41 under article 132 of the education law, even if supervised directly or 42 indirectly by a professional licensed under article 131. 43 § 3. Subdivision (a) of section 1301 of the limited liability company 44 law, as amended by chapter 475 of the laws of 2014, is amended to read 45 as follows: 46 (a) "Foreign professional service limited liability company" means a 47 professional service limited liability company, whether or not denomi- 48 nated as such, organized under the laws of a jurisdiction other than 49 this state, (i) each of whose members and managers, if any, is a profes- 50 sional authorized by law to render a professional service within this 51 state and who is or has been engaged in the practice of such profession 52 in such professional service limited liability company or a predecessor 53 entity, or will engage in the practice of such profession in the profes- 54 sional service limited liability company within thirty days of the date 55 such professional becomes a member, or each of whose members and manag- 56 ers, if any, is a professional at least one of such members is author-A. 6525 5 1 ized by law to render a professional service within this state and who 2 is or has been engaged in the practice of such profession in such 3 professional service limited liability company or a predecessor entity, 4 or will engage in the practice of such profession in the professional 5 service limited liability company within thirty days of the date such 6 professional becomes a member, or (ii) authorized by, or holding a 7 license, certificate, registration or permit issued by the licensing 8 authority pursuant to, the education law to render a professional 9 service within this state; except that all members and managers, if any, 10 of a foreign professional service limited liability company that 11 provides health services in this state shall be licensed in this state. 12 With respect to a foreign professional service limited liability company 13 which provides veterinary services as such services are defined in arti- 14 cle 135 of the education law, each member of such foreign professional 15 service limited liability company shall be licensed pursuant to article 16 135 of the education law to practice veterinary medicine. With respect 17 to a foreign professional service limited liability company which 18 provides medical services as such services are defined in article 131 of 19 the education law, each member of such foreign professional service 20 limited liability company must be licensed pursuant to article 131 of 21 the education law to practice medicine in this state. With respect to a 22 foreign professional service limited liability company which provides 23 dental services as such services are defined in article 133 of the 24 education law, each member of such foreign professional service limited 25 liability company must be licensed pursuant to article 133 of the educa- 26 tion law to practice dentistry in this state. With respect to a foreign 27 professional service limited liability company which provides profes- 28 sional engineering, land surveying, geologic architectural and/or land- 29 scape architectural services as such services are defined in article 30 145, article 147 and article 148 of the education law, each member of 31 such foreign professional service limited liability company must be 32 licensed pursuant to article 145, article 147 and/or article 148 of the 33 education law to practice one or more of such professions in this state. 34 With respect to a foreign professional service limited liability company 35 which provides licensed clinical social work services as such services 36 are defined in article 154 of the education law, each member of such 37 foreign professional service limited liability company shall be licensed 38 pursuant to article 154 of the education law to practice clinical social 39 work in this state. With respect to a foreign professional service 40 limited liability company which provides creative arts therapy services 41 as such services are defined in article 163 of the education law, each 42 member of such foreign professional service limited liability company 43 must be licensed pursuant to article 163 of the education law to prac- 44 tice creative arts therapy in this state. With respect to a foreign 45 professional service limited liability company which provides marriage 46 and family therapy services as such services are defined in article 163 47 of the education law, each member of such foreign professional service 48 limited liability company must be licensed pursuant to article 163 of 49 the education law to practice marriage and family therapy in this state. 50 With respect to a foreign professional service limited liability company 51 which provides mental health counseling services as such services are 52 defined in article 163 of the education law, each member of such foreign 53 professional service limited liability company must be licensed pursuant 54 to article 163 of the education law to practice mental health counseling 55 in this state. With respect to a foreign professional service limited 56 liability company which provides psychoanalysis services as suchA. 6525 6 1 services are defined in article 163 of the education law, each member of 2 such foreign professional service limited liability company must be 3 licensed pursuant to article 163 of the education law to practice 4 psychoanalysis in this state. With respect to a foreign professional 5 service limited liability company which provides applied behavior analy- 6 sis services as such services are defined in article 167 of the educa- 7 tion law, each member of such foreign professional service limited 8 liability company must be licensed or certified pursuant to article 167 9 of the education law to practice applied behavior analysis in this 10 state. With respect to a foreign professional service limited liability 11 company formed to provide integrated, multi-disciplinary medical and 12 chiropractic services, as such services are respectively defined under 13 article 131 and article 132 of the education law, (i) each member of 14 such limited liability company must be licensed pursuant to article 131 15 or article 132 of the education law to practice his or her profession in 16 this state, (ii) each member shall only practice his or her profession 17 as specified in his or her respective professional enabling statute 18 under article 131 or article 132 of the education law, and (iii) the 19 clinical integration of professional practices within an integrated, 20 multidisciplinary entity organized under this section does not alter, 21 expand or curtail the scope of practice of any of the individuals 22 licensed under the statute of his or her respective professional enabl- 23 ing law, provided that: (a) the clinical judgment, management and clin- 24 ical decision-making of one or more article 131 providers in an inte- 25 grated, multidisciplinary professional service limited liability company 26 shall be controlling, (b) members licensed under article 132 of the 27 education law, shall not, directly or indirectly, interfere with the 28 clinical judgment or legitimate clinical practice of a professional 29 licensed under article 131, and (c) individuals licensed under article 30 131 may not order or direct a professional licensed under article 132 of 31 the education law to practice beyond the scope of his or her license 32 under article 132 of the education law, even if supervised directly or 33 indirectly by a professional licensed under article 131. 34 § 4. Paragraph (a) of section 1503 of the business corporation law, as 35 amended by chapter 475 of the laws of 2014, is amended to read as 36 follows: 37 (a) Notwithstanding any other provision of law, (i) one or more indi- 38 viduals duly authorized by law to render the same professional service 39 within the state may organize, or cause to be organized, a professional 40 service corporation for pecuniary profit under this article for the 41 purpose of rendering the same professional service, except that one or 42 more individuals duly authorized by law to practice professional engi- 43 neering, architecture, landscape architecture, land surveying or geology 44 within the state may organize, or cause to be organized, a professional 45 service corporation or a design professional service corporation for 46 pecuniary profit under this article for the purpose of rendering such 47 professional services as such individuals are authorized to practice, 48 and, (ii) one or more individuals duly licensed to practice medicine and 49 one or more chiropractors licensed under article 132 of the education 50 law, who may be board certified or qualified by his or her respective 51 professional specialty boards, may organize, or cause to be organized, 52 for business purposes only, a multidisciplinary professional service 53 corporation formed for pecuniary profit under this article for the 54 purpose of rendering integrated and non-integrated professional services 55 within such a corporation as such individuals are authorized to practice 56 individually in his or her respective professions, provided that theA. 6525 7 1 clinical integration of professional practices within an entity organ- 2 ized under this section does not alter, expand or curtail the scope of 3 practice of any of the individuals licensed under the statute of his or 4 her respective professional enabling law; that the clinical judgment, 5 management and clinical decision-making of one or more article 131 6 providers in an integrated, multidisciplinary practice shall be control- 7 ling; that members licensed under article 132 of the education law, 8 shall not, directly or indirectly, interfere with the clinical judgment 9 or legitimate clinical practice of a professional licensed under article 10 131; and that individuals licensed under article 131 may not order or 11 direct a professional licensed under article 132 of the education law to 12 practice beyond the scope of his or her license under article 132 of the 13 education law in a professional service limited liability company, even 14 if supervised directly or indirectly by a professional licensed under 15 article 131. 16 § 5. Subdivision (q) of section 121-1500 of the partnership law, as 17 amended by chapter 475 of the laws of 2014, is amended to read as 18 follows: 19 (q) Each partner of a registered limited liability partnership formed 20 to provide medical services in this state must be licensed pursuant to 21 article 131 of the education law to practice medicine in this state and 22 each partner of a registered limited liability partnership formed to 23 provide dental services in this state must be licensed pursuant to arti- 24 cle 133 of the education law to practice dentistry in this state. Each 25 partner of a registered limited liability partnership formed to provide 26 veterinary services in this state must be licensed pursuant to article 27 135 of the education law to practice veterinary medicine in this state. 28 Each partner of a registered limited liability partnership formed to 29 provide professional engineering, land surveying, geological services, 30 architectural and/or landscape architectural services in this state must 31 be licensed pursuant to article 145, article 147 and/or article 148 of 32 the education law to practice one or more of such professions in this 33 state. Each partner of a registered limited liability partnership formed 34 to provide licensed clinical social work services in this state must be 35 licensed pursuant to article 154 of the education law to practice clin- 36 ical social work in this state. Each partner of a registered limited 37 liability partnership formed to provide creative arts therapy services 38 in this state must be licensed pursuant to article 163 of the education 39 law to practice creative arts therapy in this state. Each partner of a 40 registered limited liability partnership formed to provide marriage and 41 family therapy services in this state must be licensed pursuant to arti- 42 cle 163 of the education law to practice marriage and family therapy in 43 this state. Each partner of a registered limited liability partnership 44 formed to provide mental health counseling services in this state must 45 be licensed pursuant to article 163 of the education law to practice 46 mental health counseling in this state. Each partner of a registered 47 limited liability partnership formed to provide psychoanalysis services 48 in this state must be licensed pursuant to article 163 of the education 49 law to practice psychoanalysis in this state. Each partner of a regis- 50 tered limited liability partnership formed to provide applied behavior 51 analysis service in this state must be licensed or certified pursuant to 52 article 167 of the education law to practice applied behavior analysis 53 in this state. Each partner of a registered limited liability partner- 54 ship formed to provide integrated, multidisciplinary medical and chirop- 55 ractic services, as such services are respectively defined under article 56 131 and article 132 of the education law, (i) must be licensed pursuantA. 6525 8 1 to article 131 or article 132 of the education law to practice his or 2 her profession in this state, (ii) shall only practice his or her 3 profession as specified in his or her respective professional enabling 4 statute under article 131 or article 132 of the education law, and (iii) 5 the clinical integration of professional practices within an integrated, 6 multi-disciplinary entity organized under this section does not alter, 7 expand or curtail the scope of practice of any of the individuals 8 licensed under the statute of his or her respective professional enabl- 9 ing law, provided that: (a) the clinical judgment, management and clin- 10 ical decision-making of one or more article 131 providers in an inte- 11 grated, multidisciplinary professional service limited liability company 12 shall be controlling, (b) members licensed under article 132 of the 13 education law, shall not, directly or indirectly, interfere with the 14 clinical judgment or legitimate clinical practice of a professional 15 licensed under article 131, and (c) individuals licensed under article 16 131 may not order or direct a professional licensed under article 132 of 17 the education law to practice beyond the scope of his or her license 18 under article 132 of the education law, even if supervised directly or 19 indirectly by a professional licensed under article 131. 20 § 6. Subdivision (q) of section 121-1502 of the partnership law, as 21 amended by chapter 475 of the laws of 2014, is amended to read as 22 follows: 23 (q) Each partner of a foreign limited liability partnership which 24 provides medical services in this state must be licensed pursuant to 25 article 131 of the education law to practice medicine in the state and 26 each partner of a foreign limited liability partnership which provides 27 dental services in the state must be licensed pursuant to article 133 of 28 the education law to practice dentistry in this state. Each partner of a 29 foreign limited liability partnership which provides veterinary service 30 in the state shall be licensed pursuant to article 135 of the education 31 law to practice veterinary medicine in this state. Each partner of a 32 foreign limited liability partnership which provides professional engi- 33 neering, land surveying, geological services, architectural and/or land- 34 scape architectural services in this state must be licensed pursuant to 35 article 145, article 147 and/or article 148 of the education law to 36 practice one or more of such professions. Each partner of a foreign 37 limited liability partnership which provides licensed clinical social 38 work services in this state must be licensed pursuant to article 154 of 39 the education law to practice licensed clinical social work in this 40 state. Each partner of a foreign limited liability partnership which 41 provides creative arts therapy services in this state must be licensed 42 pursuant to article 163 of the education law to practice creative arts 43 therapy in this state. Each partner of a foreign limited liability part- 44 nership which provides marriage and family therapy services in this 45 state must be licensed pursuant to article 163 of the education law to 46 practice marriage and family therapy in this state. Each partner of a 47 foreign limited liability partnership which provides mental health coun- 48 seling services in this state must be licensed pursuant to article 163 49 of the education law to practice mental health counseling in this state. 50 Each partner of a foreign limited liability partnership which provides 51 psychoanalysis services in this state must be licensed pursuant to arti- 52 cle 163 of the education law to practice psychoanalysis in this state. 53 Each partner of a foreign limited liability partnership which provides 54 applied behavior analysis services in this state must be licensed or 55 certified pursuant to article 167 of the education law to practice 56 applied behavior analysis in this state. Each partner of a foreignA. 6525 9 1 limited liability partnership formed to provide integrated, multidisci- 2 plinary medical and chiropractic services, as such services are defined 3 under article 131 or article 132 of the education law, (i) must be 4 licensed pursuant to article 131 or article 132 of the education law to 5 practice his or her profession in this state, (ii) shall only practice 6 his or her profession as specified in his or her respective professional 7 enabling statute under article 131 or article 132 of the education law, 8 and (iii) the clinical integration of professional practices within an 9 integrated, multidisciplinary entity organized under this section does 10 not alter, expand or curtail the scope of practice of any of the indi- 11 viduals licensed under the statute of his or her respective professional 12 enabling law, provided that: (a) the clinical judgment, management and 13 clinical decision-making of one or more article 131 providers in an 14 integrated, multidisciplinary professional service limited liability 15 company shall be controlling, (b) members not licensed under article 131 16 of the education law, shall not, directly or indirectly, interfere with 17 the clinical judgment or legitimate clinical practice of a professional 18 licensed under article 131, and (c) individuals licensed under article 19 131 may not order or direct a professional licensed under article 132 of 20 the education law to practice beyond the scope of his or her license 21 under article 132 of the education law, even if supervised directly or 22 indirectly by a professional licensed under article 131. 23 § 7. Subdivision 1 of section 2801 of the public health law, as 24 amended by section 1 of subpart B of part S of chapter 57 of the laws of 25 2018, is amended to read as follows: 26 1. "Hospital" means a facility or institution engaged principally in 27 providing services by or under the supervision of a physician or, in the 28 case of a dental clinic or dental dispensary, of a dentist, or, in the 29 case of a midwifery birth center, of a midwife, for the prevention, 30 diagnosis or treatment of human disease, pain, injury, deformity or 31 physical condition, including, but not limited to, a general hospital, 32 public health center, diagnostic center, treatment center, dental clin- 33 ic, dental dispensary, rehabilitation center other than a facility used 34 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 35 tal, chronic disease hospital, maternity hospital, midwifery birth 36 center, lying-in-asylum, out-patient department, out-patient lodge, 37 dispensary and a laboratory or central service facility serving one or 38 more such institutions, but the term hospital shall not include an 39 institution, sanitarium or other facility engaged principally in provid- 40 ing services for the prevention, diagnosis or treatment of mental disa- 41 bility and which is subject to the powers of visitation, examination, 42 inspection and investigation of the department of mental hygiene except 43 for those distinct parts of such a facility which provide hospital 44 service. The provisions of this article shall not apply to a facility or 45 institution engaged principally in providing services by or under the 46 supervision of the bona fide members and adherents of a recognized reli- 47 gious organization whose teachings include reliance on spiritual means 48 through prayer alone for healing in the practice of the religion of such 49 organization and where services are provided in accordance with those 50 teachings or to a business corporation, limited liability corporation or 51 partnership between a medical doctor and a duly licensed title VIII 52 healthcare professional. No provision of this article or any other 53 provision of law shall be construed to: (a) limit the volume of mental 54 health or substance use disorder services that can be provided by a 55 provider of primary care services licensed under this article and 56 authorized to provide integrated services in accordance with regulationsA. 6525 10 1 issued by the commissioner in consultation with the commissioner of the 2 office of mental health and the commissioner of the office of alcoholism 3 and substance abuse services, including regulations issued pursuant to 4 subdivision seven of section three hundred sixty-five-l of the social 5 services law or part L of chapter fifty-six of the laws of two thousand 6 twelve; (b) require a provider licensed pursuant to article thirty-one 7 of the mental hygiene law or certified pursuant to article thirty-two of 8 the mental hygiene law to obtain an operating certificate from the 9 department if such provider has been authorized to provide integrated 10 services in accordance with regulations issued by the commissioner in 11 consultation with the commissioner of the office of mental health and 12 the commissioner of the office of alcoholism and substance abuse 13 services, including regulations issued pursuant to subdivision seven of 14 section three hundred sixty-five-l of the social services law or part L 15 of chapter fifty-six of the laws of two thousand twelve. 16 § 8. Subdivision 19 of section 6530 of the education law, as added by 17 chapter 606 of the laws of 1991, is amended to read as follows: 18 19. Permitting any person to share in the fees for professional 19 services, other than: a partner, employee, associate in a professional 20 firm or corporation, professional subcontractor or consultant authorized 21 to practice medicine, or a legally authorized trainee practicing under 22 the supervision of a licensee or a chiropractor providing professional 23 services in the same practice. This prohibition shall include any 24 arrangement or agreement whereby the amount received in payment for 25 furnishing space, facilities, equipment or personnel services used by a 26 licensee constitutes a percentage of, or is otherwise dependent upon, 27 the income or receipts of the licensee from such practice, except as 28 otherwise provided by law with respect to a facility licensed pursuant 29 to article twenty-eight of the public health law or article thirteen of 30 the mental hygiene law; 31 § 9. Section 6509-a of the education law, as amended by chapter 555 of 32 the laws of 1993, is amended to read as follows: 33 § 6509-a. Additional definition of professional misconduct; limited 34 application. Notwithstanding any inconsistent provision of this article 35 or of any other provision of law to the contrary, the license or regis- 36 tration of a person subject to the provisions of articles one hundred 37 thirty-two, one hundred thirty-three, one hundred thirty-six, one 38 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 39 one hundred forty-three, one hundred forty-four, one hundred fifty-six, 40 one hundred fifty-nine and one hundred sixty-four of this chapter may be 41 revoked, suspended or annulled or such person may be subject to any 42 other penalty provided in section sixty-five hundred eleven of this 43 article in accordance with the provisions and procedure of this article 44 for the following: 45 That any person subject to the above enumerated articles, has directly 46 or indirectly requested, received or participated in the division, 47 transference, assignment, rebate, splitting or refunding of a fee for, 48 or has directly requested, received or profited by means of a credit or 49 other valuable consideration as a commission, discount or gratuity in 50 connection with the furnishing of professional care, or service, includ- 51 ing x-ray examination and treatment, or for or in connection with the 52 sale, rental, supplying or furnishing of clinical laboratory services or 53 supplies, x-ray laboratory services or supplies, inhalation therapy 54 service or equipment, ambulance service, hospital or medical supplies, 55 physiotherapy or other therapeutic service or equipment, artificial 56 limbs, teeth or eyes, orthopedic or surgical appliances or supplies,A. 6525 11 1 optical appliances, supplies or equipment, devices for aid of hearing, 2 drugs, medication or medical supplies or any other goods, services or 3 supplies prescribed for medical diagnosis, care or treatment under this 4 chapter, except payment, not to exceed thirty-three and one-third per 5 centum of any fee received for x-ray examination, diagnosis or treat- 6 ment, to any hospital furnishing facilities for such examination, diag- 7 nosis or treatment. Nothing contained in this section shall prohibit 8 such persons from practicing as partners, in groups or as a professional 9 corporation or as a university faculty practice corporation nor from 10 pooling fees and moneys received, either by the partnerships, profes- 11 sional corporations, university faculty practice corporations or groups 12 by the individual members thereof, for professional services furnished 13 by any individual professional member, or employee of such partnership, 14 corporation or group, nor shall the professionals constituting the part- 15 nerships, corporations or groups be prohibited from sharing, dividing or 16 apportioning the fees and moneys received by them or by the partnership, 17 corporation or group in accordance with a partnership or other agree- 18 ment; provided that no such practice as partners, corporations or in 19 groups or pooling of fees or moneys received or shared, division or 20 apportionment of fees shall be permitted with respect to care and treat- 21 ment under the workers' compensation law except as expressly authorized 22 by the workers' compensation law. Nothing contained in this section, 23 shall prohibit a multidisciplinary medical and chiropractic practice 24 formed pursuant to subdivision (a) or (b) of section twelve hundred 25 three of the limited liability company law, subdivision (a) of section 26 thirteen hundred one of the limited liability company law, paragraph (a) 27 of section fifteen hundred three of the business corporation law, subdi- 28 vision (q) of section 121-1500 of the partnership law, or subdivision 29 (q) of section 121-1502 of the partnership law from pooling fees or 30 monies received. Nothing contained in this chapter shall prohibit a 31 medical or dental expense indemnity corporation pursuant to its contract 32 with the subscriber from prorationing a medical or dental expense indem- 33 nity allowance among two or more professionals in proportion to the 34 services rendered by each such professional at the request of the 35 subscriber, provided that prior to payment thereof such professionals 36 shall submit both to the medical or dental expense indemnity corporation 37 and to the subscriber statements itemizing the services rendered by each 38 such professional and the charges therefor. 39 § 10. Section 6531 of the education law, as amended by chapter 555 of 40 the laws of 1993, is amended to read as follows: 41 § 6531. Additional definition of professional misconduct, limited 42 application. Notwithstanding any inconsistent provision of this article 43 or any other provisions of law to the contrary, the license or registra- 44 tion of a person subject to the provisions of this article and article 45 one hundred thirty-one-B of this chapter may be revoked, suspended, or 46 annulled or such person may be subject to any other penalty provided in 47 section two hundred thirty-a of the public health law in accordance with 48 the provisions and procedures of this article for the following: 49 That any person subject to the above-enumerated articles has directly 50 or indirectly requested, received or participated in the division, 51 transference, assignment, rebate, splitting, or refunding of a fee for, 52 or has directly requested, received or profited by means of a credit or 53 other valuable consideration as a commission, discount or gratuity, in 54 connection with the furnishing of professional care or service, includ- 55 ing x-ray examination and treatment, or for or in connection with the 56 sale, rental, supplying, or furnishing of clinical laboratory servicesA. 6525 12 1 or supplies, x-ray laboratory services or supplies, inhalation therapy 2 service or equipment, ambulance service, hospital or medical supplies, 3 physiotherapy or other therapeutic service or equipment, artificial 4 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 5 optical appliances, supplies, or equipment, devices for aid of hearing, 6 drugs, medication, or medical supplies, or any other goods, services, or 7 supplies prescribed for medical diagnosis, care, or treatment under this 8 chapter, except payment, not to exceed thirty-three and one-third 9 percent of any fee received for x-ray examination, diagnosis, or treat- 10 ment, to any hospital furnishing facilities for such examination, diag- 11 nosis, or treatment. Nothing contained in this section shall prohibit 12 such persons from practicing as partners, in groups or as a professional 13 corporation or as a university faculty practice corporation, nor from 14 pooling fees and moneys received, either by the partnerships, profes- 15 sional corporations, or university faculty practice corporations or 16 groups by the individual members thereof, for professional services 17 furnished by an individual professional member, or employee of such 18 partnership, corporation, or group, nor shall the professionals consti- 19 tuting the partnerships, corporations or groups be prohibited from shar- 20 ing, dividing, or apportioning the fees and moneys received by them or 21 by the partnership, corporation, or group in accordance with a partner- 22 ship or other agreement; provided that no such practice as partners, 23 corporations, or groups, or pooling of fees or moneys received or 24 shared, division or apportionment of fees shall be permitted with 25 respect to and treatment under the workers' compensation law. Nothing 26 contained in this section, shall prohibit a multidisciplinary medical 27 and chiropractic practice formed pursuant to subdivision (a) or (b) of 28 section twelve hundred three of the limited liability company law, 29 subdivision (a) of section thirteen hundred one of the limited liability 30 company law, paragraph (a) of section fifteen hundred three of the busi- 31 ness corporation law, subdivision (q) of section 121-1500 of the part- 32 nership law, or subdivision (q) of section 121-1502 of the partnership 33 law from pooling fees or monies received. Nothing contained in this 34 chapter shall prohibit a corporation licensed pursuant to article 35 forty-three of the insurance law pursuant to its contract with the 36 subscribed from prorationing a medical or dental expenses indemnity 37 allowance among two or more professionals in proportion to the services 38 rendered by each such professional at the request of the subscriber, 39 provided that prior to payment thereof such professionals shall submit 40 both to the corporation licensed pursuant to article forty-three of the 41 insurance law and to the subscriber statements itemizing the services 42 rendered by each such professional and the charges therefor. 43 § 11. This act shall take effect on the thirtieth day after it shall 44 have became a law.