Bill Text: NY S06128 | 2019-2020 | General Assembly | Introduced
Bill Title: Authorizes certain licensed health service professionals to form limited liability companies.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S06128 Detail]
Download: New_York-2019-S06128-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6128 2019-2020 Regular Sessions IN SENATE May 16, 2019 ___________ Introduced by Sen. SAVINO -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions 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- 22 nary services with one or more licensed professionals, subject to the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04699-03-9S. 6128 2 1 following conditions: (i) each member of such limited liability company 2 must be licensed pursuant to title eight of the education law to prac- 3 tice his or her profession in this state; (ii) each member shall only 4 practice his or her profession as specified in his or her respective 5 professional enabling statue under title eight of the education law; and 6 (iii) any clinical integration of professional practices under this 7 section shall not alter, expand or curtail the scope of practice of any 8 of the members; provided further that: (A) no member shall, directly or 9 indirectly, interfere with the clinical judgment or legitimate clinical 10 practice of another member; and (B) no member shall order or direct 11 another member to practice beyond the scope of his or her license. With 12 respect to a professional service limited liability company formed to 13 provide dental services as such services are defined in article 133 of 14 the education law, each member of such limited liability company must be 15 licensed pursuant to article 133 of the education law to practice 16 dentistry in this state. With respect to a professional service limited 17 liability company formed to provide veterinary services as such services 18 are defined in article 135 of the education law, each member of such 19 limited liability company must be licensed pursuant to article 135 of 20 the education law to practice veterinary medicine in this state. With 21 respect to a professional service limited liability company formed to 22 provide professional engineering, land surveying, architectural, land- 23 scape architectural and/or geological services as such services are 24 defined in article 145, article 147 and article 148 of the education 25 law, each member of such limited liability company must be licensed 26 pursuant to article 145, article 147 and/or article 148 of the education 27 law to practice one or more of such professions in this state. [With28respect to a professional service limited liability company formed to29provide licensed clinical social work services as such services are30defined in article 154 of the education law, each member of such limited31liability company shall be licensed pursuant to article 154 of the32education law to practice licensed clinical social work in this state.] 33 With respect to a professional service limited liability company formed 34 to provide creative arts therapy services as such services are defined 35 in article 163 of the education law, each member of such limited liabil- 36 ity company must be licensed pursuant to article 163 of the education 37 law to practice creative arts therapy in this state. With respect to a 38 professional service limited liability company formed to provide 39 marriage and family therapy services as such services are defined in 40 article 163 of the education law, each member of such limited liability 41 company must be licensed pursuant to article 163 of the education law to 42 practice marriage and family therapy in this state. With respect to a 43 professional service limited liability company formed to provide mental 44 health counseling services as such services are defined in article 163 45 of the education law, each member of such limited liability company must 46 be licensed pursuant to article 163 of the education law to practice 47 mental health counseling in this state. With respect to a professional 48 service limited liability company formed to provide psychoanalysis 49 services as such services are defined in article 163 of the education 50 law, each member of such limited liability company must be licensed 51 pursuant to article 163 of the education law to practice psychoanalysis 52 in this state. With respect to a professional service limited liability 53 company formed to provide applied behavior analysis services as such 54 services are defined in article 167 of the education law, each member of 55 such limited liability company must be licensed or certified pursuant to 56 article 167 of the education law to practice applied behavior analysisS. 6128 3 1 in this state. In addition to engaging in such profession or 2 professions, a professional service limited liability company may engage 3 in any other business or activities as to which a limited liability 4 company may be formed under section two hundred one of this chapter. 5 Notwithstanding any other provision of this section, a professional 6 service limited liability company (i) authorized to practice law may 7 only engage in another profession or business or activities or (ii) 8 which is engaged in a profession or other business or activities other 9 than law may only engage in the practice of law, to the extent not 10 prohibited by any other law of this state or any rule adopted by the 11 appropriate appellate division of the supreme court or the court of 12 appeals. 13 § 2. Subdivision (b) of section 1207 of the limited liability company 14 law, as amended by chapter 475 of the laws of 2014, is amended to read 15 as follows: 16 (b) With respect to a professional service limited liability company 17 formed to provide medical services as such services are defined in arti- 18 cle 131 of the education law, each member of such limited liability 19 company must be licensed pursuant to article 131 of the education law to 20 practice medicine in this state. Notwithstanding any other provision of 21 this section, any person licensed pursuant to article 131 of the educa- 22 tion law to practice medicine and any person licensed pursuant to arti- 23 cles 132, 137, 140, 141, 143, 144, 153, 154, 155 or 156 or subdivision 3 24 of section 6902 of article 139 of the education law may form, or cause 25 to be formed, a professional service limited liability company to 26 provide multidisciplinary services with one or more licensed profes- 27 sionals, subject to the following conditions: (i) each member of such 28 limited liability company must be licensed pursuant to title eight of 29 the education law to practice his or her profession in this state; (ii) 30 each member shall only practice his or her profession as specified in 31 his or her respective professional enabling statute under title eight or 32 the education law; and (iii) any clinical integration of professional 33 practices under this section shall not alter, expand or curtail the 34 scope of practice of any of the members; provided further that: (A) no 35 member shall, directly or indirectly, interfere with the clinical judge- 36 ment or legitimate clinical practice of another member; and (B) no 37 member shall order or direct another member to practice beyond the scope 38 of his or her license. With respect to a professional service limited 39 liability company formed to provide dental services as such services are 40 defined in article 133 of the education law, each member of such limited 41 liability company must be licensed pursuant to article 133 of the educa- 42 tion law to practice dentistry in this state. With respect to a profes- 43 sional service limited liability company formed to provide veterinary 44 services as such services are defined in article 135 of the education 45 law, each member of such limited liability company must be licensed 46 pursuant to article 135 of the education law to practice veterinary 47 medicine in this state. With respect to a professional service limited 48 liability company formed to provide professional engineering, land 49 surveying, architectural, landscape architectural and/or geological 50 services as such services are defined in article 145, article 147 and 51 article 148 of the education law, each member of such limited liability 52 company must be licensed pursuant to article 145, article 147 and/or 53 article 148 of the education law to practice one or more of such 54 professions in this state. [With respect to a professional service55limited liability company formed to provide licensed clinical social56work services as such services are defined in article 154 of the educa-S. 6128 4 1tion law, each member of such limited liability company shall be2licensed pursuant to article 154 of the education law to practice3licensed clinical social work in this state.] With respect to a profes- 4 sional service limited liability company formed to provide creative arts 5 therapy services as such services are defined in article 163 of the 6 education law, each member of such limited liability company must be 7 licensed pursuant to article 163 of the education law to practice crea- 8 tive arts therapy in this state. With respect to a professional service 9 limited liability company formed to provide marriage and family therapy 10 services as such services are defined in article 163 of the education 11 law, each member of such limited liability company must be licensed 12 pursuant to article 163 of the education law to practice marriage and 13 family therapy in this state. With respect to a professional service 14 limited liability company formed to provide mental health counseling 15 services as such services are defined in article 163 of the education 16 law, each member of such limited liability company must be licensed 17 pursuant to article 163 of the education law to practice mental health 18 counseling in this state. With respect to a professional service limited 19 liability company formed to provide psychoanalysis services as such 20 services are defined in article 163 of the education law, each member of 21 such limited liability company must be licensed pursuant to article 163 22 of the education law to practice psychoanalysis in this state. With 23 respect to a professional service limited liability company formed to 24 provide applied behavior analysis services as such services are defined 25 in article 167 of the education law, each member of such limited liabil- 26 ity company must be licensed or certified pursuant to article 167 of the 27 education law to practice applied behavior analysis in this state. 28 § 3. Subdivision (a) of section 1301 of the limited liability company 29 law, as amended by chapter 475 of the laws of 2014, is amended to read 30 as follows: 31 (a) "Foreign professional service limited liability company" means a 32 professional service limited liability company, whether or not denomi- 33 nated as such, organized under the laws of a jurisdiction other than 34 this state, (i) each of whose members and managers, if any, is a profes- 35 sional authorized by law to render a professional service within this 36 state and who is or has been engaged in the practice of such profession 37 in such professional service limited liability company or a predecessor 38 entity, or will engage in the practice of such profession in the profes- 39 sional service limited liability company within thirty days of the date 40 such professional becomes a member, or each of whose members and manag- 41 ers, if any, is a professional at least one of such members is author- 42 ized by law to render a professional service within this state and who 43 is or has been engaged in the practice of such profession in such 44 professional service limited liability company or a predecessor entity, 45 or will engage in the practice of such profession in the professional 46 service limited liability company within thirty days of the date such 47 professional becomes a member, or (ii) authorized by, or holding a 48 license, certificate, registration or permit issued by the licensing 49 authority pursuant to, the education law to render a professional 50 service within this state; except that all members and managers, if any, 51 of a foreign professional service limited liability company that 52 provides health services in this state shall be licensed in this state. 53 With respect to a foreign professional service limited liability company 54 which provides veterinary services as such services are defined in arti- 55 cle 135 of the education law, each member of such foreign professional 56 service limited liability company shall be licensed pursuant to articleS. 6128 5 1 135 of the education law to practice veterinary medicine. With respect 2 to a foreign professional service limited liability company which 3 provides medical services as such services are defined in article 131 of 4 the education law, each member of such foreign professional service 5 limited liability company must be licensed pursuant to article 131 of 6 the education law to practice medicine in this state. Notwithstanding 7 any other provision of this section, any person licensed pursuant to 8 article 131 of the education law to practice medicine and any person 9 licensed pursuant to articles 132, 137, 140, 141, 143, 144, 153, 154, 10 155 or 156 or subdivision 3 of section 6902 of article 139 of the educa- 11 tion law may form, or cause to be formed, a foreign professional service 12 limited liability company to provide multidisciplinary services with one 13 or more licensed professionals, subject to the following conditions: (i) 14 each member of such limited liability company must be licensed pursuant 15 to title eight 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 title eight of the education law; and (iii) any clinical inte- 19 gration of professional practices under this section shall not alter, 20 expand or curtail the scope of practice of any of the members; provided 21 further that: (A) no member shall, directly or indirectly, interfere 22 with the clinical judgment or legitimate clinical practice of another 23 member; and (B) no member shall order or direct another member to prac- 24 tice beyond the scope of his or her license. With respect to a foreign 25 professional service limited liability company which provides dental 26 services as such services are defined in article 133 of the education 27 law, each member of such foreign professional service limited liability 28 company must be licensed pursuant to article 133 of the education law to 29 practice dentistry in this state. With respect to a foreign professional 30 service limited liability company which provides professional engineer- 31 ing, land surveying, geologic, architectural and/or landscape architec- 32 tural services as such services are defined in article 145, article 147 33 and article 148 of the education law, each member of such foreign 34 professional service limited liability company must be licensed pursuant 35 to article 145, article 147 and/or article 148 of the education law to 36 practice one or more of such professions in this state. [With respect to37a foreign professional service limited liability company which provides38licensed clinical social work services as such services are defined in39article 154 of the education law, each member of such foreign profes-40sional service limited liability company shall be licensed pursuant to41article 154 of the education law to practice clinical social work in42this state.] With respect to a foreign professional service limited 43 liability company which provides creative arts therapy services as such 44 services are defined in article 163 of the education law, each member of 45 such foreign professional service limited liability company must be 46 licensed pursuant to article 163 of the education law to practice crea- 47 tive arts therapy in this state. With respect to a foreign professional 48 service limited liability company which provides marriage and family 49 therapy services as such services are defined in article 163 of the 50 education law, each member of such foreign professional service limited 51 liability company must be licensed pursuant to article 163 of the educa- 52 tion law to practice marriage and family therapy in this state. With 53 respect to a foreign professional service limited liability company 54 which provides mental health counseling services as such services are 55 defined in article 163 of the education law, each member of such foreign 56 professional service limited liability company must be licensed pursuantS. 6128 6 1 to article 163 of the education law to practice mental health counseling 2 in this state. With respect to a foreign professional service limited 3 liability company which provides psychoanalysis services as such 4 services are defined in article 163 of the education law, each member of 5 such foreign professional service limited liability company must be 6 licensed pursuant to article 163 of the education law to practice 7 psychoanalysis in this state. With respect to a foreign professional 8 service limited liability company which provides applied behavior analy- 9 sis services as such services are defined in article 167 of the educa- 10 tion law, each member of such foreign professional service limited 11 liability company must be licensed or certified pursuant to article 167 12 of the education law to practice applied behavior analysis in this 13 state. 14 § 4. Paragraph (a) of section 1503 of the business corporation law, as 15 amended by chapter 475 of the laws of 2014, is amended to read as 16 follows: 17 (a) Notwithstanding any other provision of law, (i) one or more indi- 18 viduals duly authorized by law to render the same professional service 19 within the state may organize, or cause to be organized, a professional 20 service corporation for pecuniary profit under this article for the 21 purpose of rendering the same professional service, except that one or 22 more individuals duly authorized by law to practice professional engi- 23 neering, architecture, landscape architecture, land surveying or geology 24 within the state may organize, or cause to be organized, a professional 25 service corporation or a design professional service corporation for 26 pecuniary profit under this article for the purpose of rendering such 27 professional services as such individuals are authorized to practice, 28 and (ii) one or more individuals licensed to practice pursuant to arti- 29 cle 131 and one or more individuals licensed pursuant to articles 132, 30 137, 140, 141, 143, 144, 153, 154, 155 or 156 or subdivision 3 of 31 section 6902 of article 139 of title eight of the education law may 32 organize, or cause to be organized, for business purposes only, a 33 professional service corporation formed for pecuniary profit under this 34 article for the purpose of rendering multidisciplinary services within 35 such a corporation as such individuals are authorized to practice indi- 36 vidually in his or her respective professions, subject to the following 37 conditions: (A) individual who organizes, or causes to organize, such 38 corporation must be licensed pursuant to title eight of the education 39 law to practice his or her profession in this state; (B) each member 40 shall only practice his or her profession as specified in his or her 41 respective professional enabling statute under title eight of the educa- 42 tion law; and (C) any clinical integration of professional practices 43 under this section shall not alter, expand or curtail the scope of prac- 44 tice of any of the members; (D) no individual shall, directly or indi- 45 rectly, interfere with the clinical judgment or legitimate clinical 46 practice of another individual; and (E) no individual shall order or 47 direct another individual to practice beyond the scope of his or her 48 license. 49 § 5. Subdivision (q) of section 121-1500 of the partnership law, as 50 amended by chapter 475 of the laws of 2014, is amended to read as 51 follows: 52 (q) Each partner of a registered limited liability partnership formed 53 to provide medical services in this state must be licensed pursuant to 54 article 131 of the education law to practice medicine in this state [and55each]. Notwithstanding any other provision of this section, any person 56 licensed pursuant to article 131 of the education law to practice medi-S. 6128 7 1 cine and any person licensed pursuant to articles 132, 137, 140, 141, 2 143, 144, 153, 154, 155 or 156 subdivision 3 of section 6902 of article 3 139 of the education law may form, or cause to be formed, a registered 4 limited liability partnership to provide multidisciplinary services with 5 one or more licensed professionals, subject to the following conditions: 6 (i) each partner of such limited liability partnership must be licensed 7 pursuant to title eight of the education law to practice his or her 8 profession in this state; (ii) each partner shall only practice his or 9 her profession as specified in his or her respective professional enabl- 10 ing statute under title eight of the education law; and (iii) any clin- 11 ical integration of the professional practices under this section shall 12 not alter, expand or curtail the scope of practice of any of the part- 13 ners; provided further that: (A) no partner shall, directly or indirect- 14 ly, interfere with the clinical judgment or legitimate clinical practice 15 of another partner; and (B) no partner shall order or direct another 16 partner to practice beyond the scope of his or her license. Each part- 17 ner of a registered limited liability partnership formed to provide 18 dental services in this state must be licensed pursuant to article 133 19 of the education law to practice dentistry in this state. Each partner 20 of a registered limited liability partnership formed to provide veteri- 21 nary services in this state must be licensed pursuant to article 135 of 22 the education law to practice veterinary medicine in this state. Each 23 partner of a registered limited liability partnership formed to provide 24 professional engineering, land surveying, geological services, architec- 25 tural and/or landscape architectural services in this state must be 26 licensed pursuant to article 145, article 147 and/or article 148 of the 27 education law to practice one or more of such professions in this state. 28 [Each partner of a registered limited liability partnership formed to29provide licensed clinical social work services in this state must be30licensed pursuant to article 154 of the education law to practice clin-31ical social work in this state.] Each partner of a registered limited 32 liability partnership formed to provide creative arts therapy services 33 in this state must be licensed pursuant to article 163 of the education 34 law to practice creative arts therapy in this state. Each partner of a 35 registered limited liability partnership formed to provide marriage and 36 family therapy services in this state must be licensed pursuant to arti- 37 cle 163 of the education law to practice marriage and family therapy in 38 this state. Each partner of a registered limited liability partnership 39 formed to provide mental health counseling services in this state must 40 be licensed pursuant to article 163 of the education law to practice 41 mental health counseling in this state. Each partner of a registered 42 limited liability partnership formed to provide psychoanalysis services 43 in this state must be licensed pursuant to article 163 of the education 44 law to practice psychoanalysis in this state. Each partner of a regis- 45 tered limited liability partnership formed to provide applied behavior 46 analysis service in this state must be licensed or certified pursuant to 47 article 167 of the education law to practice applied behavior analysis 48 in this state. 49 § 6. Subdivision (q) of section 121-1502 of the partnership law, as 50 amended by chapter 475 of the laws of 2014, is amended to read as 51 follows: 52 (q) Each partner of a foreign limited liability partnership which 53 provides medical services in this state must be licensed pursuant to 54 article 131 of the education law to practice medicine in the state [and55each]. Notwithstanding any other provision of this section, any person 56 licensed pursuant to article 131 of the education law to practice medi-S. 6128 8 1 cine and any person licensed pursuant to articles 132, 137, 140, 141, 2 143, 144, 153, 154, 155 or 156 or subdivision 3 of section 6902 of arti- 3 cle 139 of the education law may form, or cause to be formed, a foreign 4 limited liability partnership to provide multidisciplinary services with 5 one or more licensed professionals, subject to the following conditions: 6 (i) each partner of such foreign limited liability partnership must be 7 licensed pursuant to title eight of the education law to practice his or 8 her profession in this state; (ii) each partner shall only practice his 9 or her profession as specified in his or her respective professional 10 enabling statute under title eight of the education law; and (iii) any 11 clinical integration of professional practices under this section shall 12 not alter, expand or curtail the scope of practice of any of the part- 13 ners; provided further that: (A) no partner shall, directly or indirect- 14 ly, interfere with the clinical judgment or legitimate clinical practice 15 of another partner; and (B) no partner shall order or direct another 16 partner to practice beyond the scope of his or her license. Each partner 17 of a foreign limited liability partnership which provides dental 18 services in the state must be licensed pursuant to article 133 of the 19 education law to practice dentistry in this state. Each partner of a 20 foreign limited liability partnership which provides veterinary service 21 in the state shall be licensed pursuant to article 135 of the education 22 law to practice veterinary medicine in this state. Each partner of a 23 foreign limited liability partnership which provides professional engi- 24 neering, land surveying, geological services, architectural and/or land- 25 scape architectural services in this state must be licensed pursuant to 26 article 145, article 147 and/or article 148 of the education law to 27 practice one or more of such professions. [Each partner of a foreign28limited liability partnership which provides licensed clinical social29work services in this state must be licensed pursuant to article 154 of30the education law to practice licensed clinical social work in this31state.] Each partner of a foreign limited liability partnership which 32 provides creative arts therapy services in this state must be licensed 33 pursuant to article 163 of the education law to practice creative arts 34 therapy in this state. Each partner of a foreign limited liability part- 35 nership which provides marriage and family therapy services in this 36 state must be licensed pursuant to article 163 of the education law to 37 practice marriage and family therapy in this state. Each partner of a 38 foreign limited liability partnership which provides mental health coun- 39 seling services in this state must be licensed pursuant to article 163 40 of the education law to practice mental health counseling in this state. 41 Each partner of a foreign limited liability partnership which provides 42 psychoanalysis services in this state must be licensed pursuant to arti- 43 cle 163 of the education law to practice psychoanalysis in this state. 44 Each partner of a foreign limited liability partnership which provides 45 applied behavior analysis services in this state must be licensed or 46 certified pursuant to article 167 of the education law to practice 47 applied behavior analysis in this state. 48 § 7. Section 6509-a of the education law, as amended by chapter 555 of 49 the laws of 1993, is amended to read as follows: 50 § 6509-a. Additional definition of professional misconduct; limited 51 application. Notwithstanding any inconsistent provision of this article 52 or of any other provision of law to the contrary, the license or regis- 53 tration of a person subject to the provisions of articles one hundred 54 thirty-two, one hundred thirty-three, one hundred thirty-six, one 55 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 56 one hundred forty-three, one hundred forty-four, one hundred fifty-six,S. 6128 9 1 one hundred fifty-nine and one hundred sixty-four of this chapter may be 2 revoked, suspended or annulled or such person may be subject to any 3 other penalty provided in section sixty-five hundred eleven of this 4 article in accordance with the provisions and procedure of this article 5 for the following: 6 That any person subject to the above enumerated articles, has directly 7 or indirectly requested, received or participated in the division, 8 transference, assignment, rebate, splitting or refunding of a fee for, 9 or has directly requested, received or profited by means of a credit or 10 other valuable consideration as a commission, discount or gratuity in 11 connection with the furnishing of professional care, or service, includ- 12 ing x-ray examination and treatment, or for or in connection with the 13 sale, rental, supplying or furnishing of clinical laboratory services or 14 supplies, x-ray laboratory services or supplies, inhalation therapy 15 service or equipment, ambulance service, hospital or medical supplies, 16 physiotherapy or other therapeutic service or equipment, artificial 17 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 18 optical appliances, supplies or equipment, devices for aid of hearing, 19 drugs, medication or medical supplies or any other goods, services or 20 supplies prescribed for medical diagnosis, care or treatment under this 21 chapter, except payment, not to exceed thirty-three and one-third per 22 centum of any fee received for x-ray examination, diagnosis or treat- 23 ment, to any hospital furnishing facilities for such examination, diag- 24 nosis or treatment. Nothing contained in this section shall prohibit 25 such persons from practicing as partners, in groups or as a professional 26 corporation or as a university faculty practice corporation nor from 27 pooling fees and moneys received, either by the partnerships, profes- 28 sional corporations, university faculty practice corporations or groups 29 by the individual members thereof, for professional services furnished 30 by any individual professional member, or employee of such partnership, 31 corporation or group, nor shall the professionals constituting the part- 32 nerships, corporations or groups be prohibited from sharing, dividing or 33 apportioning the fees and moneys received by them or by the partnership, 34 corporation or group in accordance with a partnership or other agree- 35 ment; provided that no such practice as partners, corporations or in 36 groups or pooling of fees or moneys received or shared, division or 37 apportionment of fees shall be permitted with respect to care and treat- 38 ment under the workers' compensation law except as expressly authorized 39 by the workers' compensation law. Nothing contained in this section 40 shall prohibit a multidisciplinary services practice formed pursuant to 41 subdivision (a) of section twelve hundred three of the limited liability 42 company law, subdivision (b) of section twelve hundred seven of the 43 limited liability company law, subdivision (a) of section thirteen 44 hundred one of the limited liability company law, paragraph (a) of 45 section fifteen hundred three of the business corporation law, subdivi- 46 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 47 of section 121-1502 of the partnership law from pooling fees or monies 48 received. Nothing contained in this chapter shall prohibit a medical or 49 dental expense indemnity corporation pursuant to its contract with the 50 subscriber from prorationing a medical or dental expense indemnity 51 allowance among two or more professionals in proportion to the services 52 rendered by each such professional at the request of the subscriber, 53 provided that prior to payment thereof such professionals shall submit 54 both to the medical or dental expense indemnity corporation and to the 55 subscriber statements itemizing the services rendered by each such 56 professional and the charges therefor.S. 6128 10 1 § 8. Subdivision 19 of section 6530 of the education law, as added by 2 chapter 606 of the laws of 1991, is amended to read as follows: 3 19. Permitting any person to share in the fees for professional 4 services, other than: a partner, employee, associate in a professional 5 firm or corporation, professional subcontractor or consultant authorized 6 to practice medicine, [or] a legally authorized trainee practicing under 7 the supervision of a licensee, or an authorized professional licensed 8 pursuant to article one hundred thirty-one, one hundred thirty-two, one 9 hundred thirty-seven, one hundred forty, one hundred forty-one, one 10 hundred forty-three, one hundred forty-four, one hundred fifty-three, 11 one hundred fifty-four, one hundred fifty-five, one hundred fifty-six or 12 one hundred fifty-nine or subdivision three of section sixty nine 13 hundred two of article one hundred thirty-nine of this chapter providing 14 professional services in the same practice. This prohibition shall 15 include any arrangement or agreement whereby the amount received in 16 payment for furnishing space, facilities, equipment or personnel 17 services used by a licensee constitutes a percentage of, or is otherwise 18 dependent upon, the income or receipts of the licensee from such prac- 19 tice, except as otherwise provided by law with respect to a facility 20 licensed pursuant to article twenty-eight of the public health law or 21 article thirteen of the mental hygiene law; 22 § 9. Section 6531 of the education law, as amended by chapter 555 of 23 the laws of 1993, is amended to read as follows: 24 § 6531. Additional definition of professional misconduct, limited 25 application. Notwithstanding any inconsistent provision of this article 26 or any other provisions of law to the contrary, the license or registra- 27 tion of a person subject to the provisions of this article and article 28 one hundred thirty-one-B of this chapter may be revoked, suspended, or 29 annulled or such person may be subject to any other penalty provided in 30 section two hundred thirty-a of the public health law in accordance with 31 the provisions and procedures of this article for the following: 32 That any person subject to the above-enumerated articles has directly 33 or indirectly requested, received or participated in the division, 34 transference, assignment, rebate, splitting, or refunding of a fee for, 35 or has directly requested, received or profited by means of a credit or 36 other valuable consideration as a commission, discount or gratuity, in 37 connection with the furnishing of professional care or service, includ- 38 ing x-ray examination and treatment, or for or in connection with the 39 sale, rental, supplying, or furnishing of clinical laboratory services 40 or supplies, x-ray laboratory services or supplies, inhalation therapy 41 service or equipment, ambulance service, hospital or medical supplies, 42 physiotherapy or other therapeutic service or equipment, artificial 43 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 44 optical appliances, supplies, or equipment, devices for aid of hearing, 45 drugs, medication, or medical supplies, or any other goods, services, or 46 supplies prescribed for medical diagnosis, care, or treatment under this 47 chapter, except payment, not to exceed thirty-three and one-third 48 percent of any fee received for x-ray examination, diagnosis, or treat- 49 ment, to any hospital furnishing facilities for such examination, diag- 50 nosis, or treatment. Nothing contained in this section shall prohibit 51 such persons from practicing as partners, in groups or as a professional 52 corporation or as a university faculty practice corporation, nor from 53 pooling fees and moneys received, either by the partnerships, profes- 54 sional corporations, or university faculty practice corporations or 55 groups by the individual members thereof, for professional services 56 furnished by an individual professional member, or employee of suchS. 6128 11 1 partnership, corporation, or group, nor shall the professionals consti- 2 tuting the partnerships, corporations or groups be prohibited from shar- 3 ing, dividing, or apportioning the fees and moneys received by them or 4 by the partnership, corporation, or group in accordance with a partner- 5 ship or other agreement; provided that no such practice as partners, 6 corporations, or groups, or pooling of fees or moneys received or 7 shared, division or apportionment of fees shall be permitted with 8 respect to and treatment under the workers' compensation law. Nothing 9 contained in this section shall prohibit a multidisciplinary services 10 practice formed pursuant to subdivision (a) of section twelve hundred 11 three of the limited liability company law, subdivision (b) of section 12 twelve hundred seven of the limited liability company law, subdivision 13 (a) of section thirteen hundred one of the limited liability company 14 law, paragraph (a) of section fifteen hundred three of the business 15 corporation law, subdivision (q) of section 121-1500 of the partnership 16 law, or subdivision (q) of section 121-1502 of the partnership law from 17 pooling fees or monies received. Nothing contained in this chapter shall 18 prohibit a corporation licensed pursuant to article forty-three of the 19 insurance law pursuant to its contract with the subscribed from prora- 20 tioning a medical or dental expenses indemnity allowance among two or 21 more professionals in proportion to the services rendered by each such 22 professional at the request of the subscriber, provided that prior to 23 payment thereof such professionals shall submit both to the corporation 24 licensed pursuant to article forty-three of the insurance law and to the 25 subscriber statements itemizing the services rendered by each such 26 professional and the charges therefor. 27 § 10. Subdivision 1 of section 2801 of the public health law, as 28 amended by section 1 of subpart B of part S of chapter 57 of the laws of 29 2018, is amended to read as follows: 30 1. "Hospital" means a facility or institution engaged principally in 31 providing services by or under the supervision of a physician or, in the 32 case of a dental clinic or dental dispensary, of a dentist, or, in the 33 case of a midwifery birth center, of a midwife, for the prevention, 34 diagnosis or treatment of human disease, pain, injury, deformity or 35 physical condition, including, but not limited to, a general hospital, 36 public health center, diagnostic center, treatment center, dental clin- 37 ic, dental dispensary, rehabilitation center other than a facility used 38 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 39 tal, chronic disease hospital, maternity hospital, midwifery birth 40 center, lying-in-asylum, out-patient department, out-patient lodge, 41 dispensary and a laboratory or central service facility serving one or 42 more such institutions, but the term hospital shall not include an 43 institution, sanitarium or other facility engaged principally in provid- 44 ing services for the prevention, diagnosis or treatment of mental disa- 45 bility and which is subject to the powers of visitation, examination, 46 inspection and investigation of the department of mental hygiene except 47 for those distinct parts of such a facility which provide hospital 48 service. The provisions of this article shall not apply to a facility or 49 institution engaged principally in providing services by or under the 50 supervision of the bona fide members and adherents of a recognized reli- 51 gious organization whose teachings include reliance on spiritual means 52 through prayer alone for healing in the practice of the religion of such 53 organization and where services are provided in accordance with those 54 teachings or to a multidisciplinary services practice formed pursuant to 55 subdivision (a) of section twelve hundred three of the limited liability 56 company law, subdivision (b) of section twelve hundred seven of theS. 6128 12 1 limited liability company law, subdivision (a) of section thirteen 2 hundred one of the limited liability company law, paragraph (a) of 3 section fifteen hundred three of the business corporation law, subdivi- 4 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 5 of section 121-1502 of the partnership law. No provision of this arti- 6 cle or any other provision of law shall be construed to: (a) limit the 7 volume of mental health or substance use disorder services that can be 8 provided by a provider of primary care services licensed under this 9 article and authorized to provide integrated services in accordance with 10 regulations issued by the commissioner in consultation with the commis- 11 sioner of the office of mental health and the commissioner of the office 12 of alcoholism and substance abuse services, including regulations issued 13 pursuant to subdivision seven of section three hundred sixty-five-l of 14 the social services law or part L of chapter fifty-six of the laws of 15 two thousand twelve; (b) require a provider licensed pursuant to article 16 thirty-one of the mental hygiene law or certified pursuant to article 17 thirty-two of the mental hygiene law to obtain an operating certificate 18 from the department if such provider has been authorized to provide 19 integrated services in accordance with regulations issued by the commis- 20 sioner in consultation with the commissioner of the office of mental 21 health and the commissioner of the office of alcoholism and substance 22 abuse services, including regulations issued pursuant to subdivision 23 seven of section three hundred sixty-five-l of the social services law 24 or part L of chapter fifty-six of the laws of two thousand twelve. 25 § 10-a. Subdivision 1 of section 2801 of the public health law, as 26 amended by section 1 of part Z of chapter 57 of the laws of 2019, is 27 amended to read as follows: 28 1. "Hospital" means a facility or institution engaged principally in 29 providing services by or under the supervision of a physician or, in the 30 case of a dental clinic or dental dispensary, of a dentist, or, in the 31 case of a midwifery birth center, of a midwife, for the prevention, 32 diagnosis or treatment of human disease, pain, injury, deformity or 33 physical condition, including, but not limited to, a general hospital, 34 public health center, diagnostic center, treatment center, dental clin- 35 ic, dental dispensary, rehabilitation center other than a facility used 36 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 37 tal, chronic disease hospital, maternity hospital, midwifery birth 38 center, lying-in-asylum, out-patient department, out-patient lodge, 39 dispensary and a laboratory or central service facility serving one or 40 more such institutions, but the term hospital shall not include an 41 institution, sanitarium or other facility engaged principally in provid- 42 ing services for the prevention, diagnosis or treatment of mental disa- 43 bility and which is subject to the powers of visitation, examination, 44 inspection and investigation of the department of mental hygiene except 45 for those distinct parts of such a facility which provide hospital 46 service. The provisions of this article shall not apply to a facility or 47 institution engaged principally in providing services by or under the 48 supervision of the bona fide members and adherents of a recognized reli- 49 gious organization whose teachings include reliance on spiritual means 50 through prayer alone for healing in the practice of the religion of such 51 organization and where services are provided in accordance with those 52 teachings or to a multidisciplinary services practice formed pursuant to 53 subdivision (a) of section twelve hundred three of the limited liability 54 company law, subdivision (b) of section twelve hundred seven of the 55 limited liability company law, subdivision (a) of section thirteen 56 hundred one of the limited liability company law, paragraph (a) ofS. 6128 13 1 section fifteen hundred three of the business corporation law, subdivi- 2 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 3 of section 121-1502 of the partnership law. No provision of this arti- 4 cle or any other provision of law shall be construed to: (a) limit the 5 volume of mental health, substance use disorder services or develop- 6 mental disability services that can be provided by a provider of primary 7 care services licensed under this article and authorized to provide 8 integrated services in accordance with regulations issued by the commis- 9 sioner in consultation with the commissioner of the office of mental 10 health, the commissioner of the office of alcoholism and substance abuse 11 services and the commissioner of the office for people with develop- 12 mental disabilities, including regulations issued pursuant to subdivi- 13 sion seven of section three hundred sixty-five-l of the social services 14 law or part L of chapter fifty-six of the laws of two thousand twelve; 15 (b) require a provider licensed pursuant to article thirty-one of the 16 mental hygiene law or certified pursuant to article sixteen or article 17 thirty-two of the mental hygiene law to obtain an operating certificate 18 from the department if such provider has been authorized to provide 19 integrated services in accordance with regulations issued by the commis- 20 sioner in consultation with the commissioner of the office of mental 21 health, the commissioner of the office of alcoholism and substance abuse 22 services and the commissioner of the office for people with develop- 23 mental disabilities, including regulations issued pursuant to subdivi- 24 sion seven of section three hundred sixty-five-l of the social services 25 law or part L of chapter fifty-six of the laws of two thousand twelve. 26 § 11. This act shall take effect on the thirtieth day after it shall 27 have become a law; provided, however, that section ten-a of this act 28 shall take effect on the same date and in the same manner as section 1 29 of part Z of chapter 57 of the laws of 2019, takes effect.
