A06377 Summary:

BILL NOA06377A
 
SAME ASSAME AS S06128
 
SPONSORPeoples-Stokes (MS)
 
COSPNSRBenedetto, Steck, O'Donnell, Garbarino, Thiele, Lupardo, Jaffee, Gottfried, Woerner, Ortiz, Rodriguez, McDonald, Stirpe, Buttenschon, Griffin
 
MLTSPNSRArroyo, Fitzpatrick
 
Amd 1203, 1207 & 1301, Lim Lil L; amd 1503, BC L; amd 121-1500 & 121-1502, Partn L; amd 6509-a, 6530 & 6531, Ed L; amd 2801, Pub Health L
 
Authorizes certain licensed health service professionals to form limited liability companies.
Go to top    

A06377 Actions:

BILL NOA06377A
 
03/07/2019referred to higher education
06/14/2019amend and recommit to higher education
06/14/2019print number 6377a
01/08/2020referred to higher education
Go to top

A06377 Committee Votes:

Go to top

A06377 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A06377 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6377A
 
SPONSOR: Peoples-Stokes (MS)
  TITLE OF BILL: An act to amend the limited liability company law, the business corporation 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   PURPOSE OR GENERAL IDEA OF BILL: To allow various licensed allied professionals to form multidisciplinary partnerships limited liability companies, and professional service corporations   SUMMARY OF PROVISIONS: Sections 1-3 would amend sections of the limited liability company law to allow the following licensed professionals to form multidisciplinary professional service limited liability companies: physicians, chiro- practors, pharmacists, midwives, podiatrists, optometrists, ophthalmic dispensers, psychologists, social workers, massage therapists, occupa- tional therapists and nurse practitioners. Section 4 would amend the business corporation law to allow the afore- mentioned licensed health professionals to form professional service corporations. Sections 5 and 6 would amend the partnership law to allow licensed health professionals to form limited liability partnerships. Sections 7-9 would amend the limited liability company law to allow licensed health professionals to form professional service limited liability companies. Section 10 would amend the business corporation law to allow licensed health professionals to form professional service corporations. Sections 11 and 12 would amend the partnership law to allow licensed health professionals to form limited liability partnerships. Section 13 would amend section 6509-a of the education law to allow for the pooling of fees or monies by multidisciplinary services practice formed under the partnership, business corporation or LLC laws. Section 14 would amend section 6530 of the education law to allow licensed health professionals to share fees with a physician for profes- sionals services rendered as part of a multidisciplinary services prac- tice. Section 15 would amend section 6531 of the education law to allow for the pooling of fees or monies by multidisciplinary services practice formed under the partnership, business corporation or LLC laws. Section 16 would amend section 2801 of the public health law to ensure that a multidisciplinary services practice does not fall under the defi- nition of hospital.   JUSTIFICATION: The healthcare field is changing rapidly. Collaboration and the ability to offer multidisciplinary services are the present and future. The advent of patient-centered medical homes, health homes and accountable care organizations all promise to shift health care delivery to more collaborative models. As such, New York State's prohibitions on the formation of limited liability companies, partnerships and professional service corporations by allied health professionals are outdated. This bill seeks to further bring collaboration among licensed health professionals into the 21st century by allowing various professionals to integrate their services under one roof as a partnership, LLC or profes- sional service corporation. In permitting such organizational entities to be formed by licensed professionals, it broadens the array of colla- borative options available to health care practitioners looking to offer multidisciplinary services. The bill does not change the existing rules surrounding the organizational structures addressed through the legis- lation. It recognizes that the allied health professions should be treated equally, rather disparately through a piecemeal approach to allowing for a broader array of organizational formation. Finally, the bill would prohibit the alteration, expansion or curtailing of the scope of practice of any licensed professional providing services through one of the newly formed organizations and provide that no member or partner shall interfere with the clinical judgment or practice of another member. These protections are critical to guarding against the exercise of undue influence over another licensed professional.   PRIOR LEGISLATIVE HISTORY: A.1943 of 2017/2018; A.8153A of 2015/2016   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: 30 days after becoming law.
Go to top

A06377 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6377--A
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 7, 2019
                                       ___________
 
        Introduced  by  M.  of  A.  PEOPLES-STOKES, BENEDETTO, STECK, O'DONNELL,
          GARBARINO, THIELE, LUPARDO, JAFFEE, GOTTFRIED, WOERNER, ORTIZ,  RODRI-
          GUEZ,  McDONALD, STIRPE, BUTTENSCHON, GRIFFIN -- Multi-Sponsored by --
          M. of A. ARROYO, FITZPATRICK -- read once and referred to the  Commit-
          tee on Higher Education -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to amend the limited liability company law, the business corpo-
          ration law, the partnership law, the  education  law  and  the  public
          health  law,  in  relation  to  authorizing  certain  licensed  health
          services professionals to form limited liability companies
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision  (a) of section 1203 of the limited liability
     2  company law, as amended by chapter 475 of the laws of 2014,  is  amended
     3  to read as follows:
     4    (a)  Notwithstanding  the education law or any other provision of law,
     5  one or more professionals each of whom is authorized by law to render  a
     6  professional  service within the state, or one or more professionals, at
     7  least one of whom is authorized by law to render a professional  service
     8  within  the  state,  may  form,  or  cause  to be formed, a professional
     9  service limited liability company for pecuniary profit under this  arti-
    10  cle for the purpose of rendering the professional service or services as
    11  such professionals are authorized to practice. With respect to a profes-
    12  sional  service  limited  liability  company  formed  to provide medical
    13  services as such services are defined in article 131  of  the  education
    14  law,  each  member  of  such  limited liability company must be licensed
    15  pursuant to article 131 of the education law  to  practice  medicine  in
    16  this  state.    Notwithstanding any other provision of this section, any
    17  person licensed pursuant to article 131 of the education law to practice
    18  medicine and any person licensed pursuant to  articles  132,  137,  140,
    19  141,  143, 144, 153, 154, 155 or 156 or subdivision 3 of section 6902 of
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04699-04-9

        A. 6377--A                          2
 
     1  article 139 of the education law may form, or  cause  to  be  formed,  a
     2  professional service limited liability company to provide multidiscipli-
     3  nary  services  with  one or more licensed professionals, subject to the
     4  following  conditions: (i) each member of such limited liability company
     5  must be licensed pursuant to title eight of the education law  to  prac-
     6  tice  his  or  her profession in this state; (ii) each member shall only
     7  practice his or her profession as specified in  his  or  her  respective
     8  professional enabling statue under title eight of the education law; and
     9  (iii)  any  clinical  integration  of  professional practices under this
    10  section shall not alter, expand or curtail the scope of practice of  any
    11  of  the members; provided further that: (A) no member shall, directly or
    12  indirectly, interfere with the clinical judgment or legitimate  clinical
    13  practice  of  another  member;  and  (B) no member shall order or direct
    14  another member to practice beyond the scope of his or her license.  With
    15  respect  to  a  professional service limited liability company formed to
    16  provide dental services as such services are defined in article  133  of
    17  the education law, each member of such limited liability company must be
    18  licensed  pursuant  to  article  133  of  the  education law to practice
    19  dentistry in this state. With respect to a professional service  limited
    20  liability company formed to provide veterinary services as such services
    21  are  defined  in  article  135 of the education law, each member of such
    22  limited liability company must be licensed pursuant to  article  135  of
    23  the  education  law  to practice veterinary medicine in this state. With
    24  respect to a professional service limited liability  company  formed  to
    25  provide  professional  engineering, land surveying, architectural, land-
    26  scape architectural and/or geological  services  as  such  services  are
    27  defined  in  article  145,  article 147 and article 148 of the education
    28  law, each member of such limited  liability  company  must  be  licensed
    29  pursuant to article 145, article 147 and/or article 148 of the education
    30  law  to  practice  one  or more of such professions in this state. [With
    31  respect to a professional service limited liability  company  formed  to
    32  provide  licensed  clinical  social  work  services as such services are
    33  defined in article 154 of the education law, each member of such limited
    34  liability company shall be licensed  pursuant  to  article  154  of  the
    35  education  law to practice licensed clinical social work in this state.]
    36  With respect to a professional service limited liability company  formed
    37  to  provide  creative arts therapy services as such services are defined
    38  in article 163 of the education law, each member of such limited liabil-
    39  ity company must be licensed pursuant to article 163  of  the  education
    40  law  to  practice creative arts therapy in this state. With respect to a
    41  professional  service  limited  liability  company  formed  to   provide
    42  marriage  and  family  therapy  services as such services are defined in
    43  article 163 of the education law, each member of such limited  liability
    44  company must be licensed pursuant to article 163 of the education law to
    45  practice  marriage  and  family therapy in this state. With respect to a
    46  professional service limited liability company formed to provide  mental
    47  health  counseling  services as such services are defined in article 163
    48  of the education law, each member of such limited liability company must
    49  be licensed pursuant to article 163 of the  education  law  to  practice
    50  mental  health  counseling in this state. With respect to a professional
    51  service limited  liability  company  formed  to  provide  psychoanalysis
    52  services  as  such  services are defined in article 163 of the education
    53  law, each member of such limited  liability  company  must  be  licensed
    54  pursuant  to article 163 of the education law to practice psychoanalysis
    55  in this state. With respect to a professional service limited  liability
    56  company  formed  to  provide  applied behavior analysis services as such

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

        A. 6377--A                          4
 
     1  professions  in  this  state.  [With  respect  to a professional service
     2  limited liability company formed to  provide  licensed  clinical  social
     3  work  services as such services are defined in article 154 of the educa-
     4  tion  law,  each  member  of  such  limited  liability  company shall be
     5  licensed pursuant to article  154  of  the  education  law  to  practice
     6  licensed  clinical social work in this state.] With respect to a profes-
     7  sional service limited liability company formed to provide creative arts
     8  therapy services as such services are defined  in  article  163  of  the
     9  education  law,  each  member  of such limited liability company must be
    10  licensed pursuant to article 163 of the education law to practice  crea-
    11  tive  arts therapy in this state. With respect to a professional service
    12  limited liability company formed to provide marriage and family  therapy
    13  services  as  such  services are defined in article 163 of the education
    14  law, each member of such limited  liability  company  must  be  licensed
    15  pursuant  to  article  163 of the education law to practice marriage and
    16  family therapy in this state. With respect  to  a  professional  service
    17  limited  liability  company  formed  to provide mental health counseling
    18  services as such services are defined in article 163  of  the  education
    19  law,  each  member  of  such  limited liability company must be licensed
    20  pursuant to article 163 of the education law to practice  mental  health
    21  counseling in this state. With respect to a professional service limited
    22  liability  company  formed  to  provide  psychoanalysis services as such
    23  services are defined in article 163 of the education law, each member of
    24  such limited liability company must be licensed pursuant to article  163
    25  of  the  education  law  to  practice psychoanalysis in this state. With
    26  respect to a professional service limited liability  company  formed  to
    27  provide  applied behavior analysis services as such services are defined
    28  in article 167 of the education law, each member of such limited liabil-
    29  ity company must be licensed or certified pursuant to article 167 of the
    30  education law to practice applied behavior analysis in this state.
    31    § 3. Subdivision (a) of section 1301 of the limited liability  company
    32  law,  as  amended by chapter 475 of the laws of 2014, is amended to read
    33  as follows:
    34    (a) "Foreign professional service limited liability company"  means  a
    35  professional  service  limited liability company, whether or not denomi-
    36  nated as such, organized under the laws of  a  jurisdiction  other  than
    37  this state, (i) each of whose members and managers, if any, is a profes-
    38  sional  authorized  by  law to render a professional service within this
    39  state and who is or has been engaged in the practice of such  profession
    40  in  such professional service limited liability company or a predecessor
    41  entity, or will engage in the practice of such profession in the profes-
    42  sional service limited liability company within thirty days of the  date
    43  such  professional becomes a member, or each of whose members and manag-
    44  ers, if any, is a professional at least one of such members  is  author-
    45  ized  by  law to render a professional service within this state and who
    46  is or has been engaged in  the  practice  of  such  profession  in  such
    47  professional  service limited liability company or a predecessor entity,
    48  or will engage in the practice of such profession  in  the  professional
    49  service  limited  liability  company within thirty days of the date such
    50  professional becomes a member, or  (ii)  authorized  by,  or  holding  a
    51  license,  certificate,  registration  or  permit issued by the licensing
    52  authority pursuant to,  the  education  law  to  render  a  professional
    53  service within this state; except that all members and managers, if any,
    54  of  a  foreign  professional  service  limited  liability  company  that
    55  provides health services in this state shall be licensed in this  state.
    56  With respect to a foreign professional service limited liability company

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

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

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

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

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

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

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

        A. 6377--A                         12
 
     1  teachings or to a multidisciplinary services practice formed pursuant to
     2  subdivision (a) of section twelve hundred three of the limited liability
     3  company  law,  subdivision  (b)  of  section twelve hundred seven of the
     4  limited  liability  company  law,  subdivision  (a)  of section thirteen
     5  hundred one of the limited  liability  company  law,  paragraph  (a)  of
     6  section  fifteen hundred three of the business corporation law, subdivi-
     7  sion (q) of section 121-1500 of the partnership law, or subdivision  (q)
     8  of  section 121-1502 of the partnership law.  No provision of this arti-
     9  cle or any other provision of law shall be construed to: (a)  limit  the
    10  volume  of  mental health or substance use disorder services that can be
    11  provided by a provider of primary  care  services  licensed  under  this
    12  article and authorized to provide integrated services in accordance with
    13  regulations  issued by the commissioner in consultation with the commis-
    14  sioner of the office of mental health and the commissioner of the office
    15  of alcoholism and substance abuse services, including regulations issued
    16  pursuant to subdivision seven of section three hundred  sixty-five-l  of
    17  the  social  services  law or part L of chapter fifty-six of the laws of
    18  two thousand twelve; (b) require a provider licensed pursuant to article
    19  thirty-one of the mental hygiene law or certified  pursuant  to  article
    20  thirty-two  of the mental hygiene law to obtain an operating certificate
    21  from the department if such provider  has  been  authorized  to  provide
    22  integrated services in accordance with regulations issued by the commis-
    23  sioner  in  consultation  with  the commissioner of the office of mental
    24  health and the commissioner of the office of  alcoholism  and  substance
    25  abuse  services,  including  regulations  issued pursuant to subdivision
    26  seven of section three hundred sixty-five-l of the social  services  law
    27  or part L of chapter fifty-six of the laws of two thousand twelve.
    28    §  10-a.  Subdivision  1  of section 2801 of the public health law, as
    29  amended by section 1 of part Z of chapter 57 of the  laws  of  2019,  is
    30  amended to read as follows:
    31    1.  "Hospital"  means a facility or institution engaged principally in
    32  providing services by or under the supervision of a physician or, in the
    33  case of a dental clinic or dental dispensary, of a dentist, or,  in  the
    34  case  of  a  midwifery  birth  center, of a midwife, for the prevention,
    35  diagnosis or treatment of human  disease,  pain,  injury,  deformity  or
    36  physical  condition,  including, but not limited to, a general hospital,
    37  public health center, diagnostic center, treatment center, dental  clin-
    38  ic,  dental dispensary, rehabilitation center other than a facility used
    39  solely for vocational rehabilitation, nursing home, tuberculosis  hospi-
    40  tal,  chronic  disease  hospital,  maternity  hospital,  midwifery birth
    41  center,  lying-in-asylum,  out-patient  department,  out-patient  lodge,
    42  dispensary  and  a laboratory or central service facility serving one or
    43  more such institutions, but the  term  hospital  shall  not  include  an
    44  institution, sanitarium or other facility engaged principally in provid-
    45  ing  services for the prevention, diagnosis or treatment of mental disa-
    46  bility and which is subject to the powers  of  visitation,  examination,
    47  inspection  and investigation of the department of mental hygiene except
    48  for those distinct parts of  such  a  facility  which  provide  hospital
    49  service. The provisions of this article shall not apply to a facility or
    50  institution  engaged  principally  in providing services by or under the
    51  supervision of the bona fide members and adherents of a recognized reli-
    52  gious organization whose teachings include reliance on  spiritual  means
    53  through prayer alone for healing in the practice of the religion of such
    54  organization  and  where  services are provided in accordance with those
    55  teachings or to a multidisciplinary services practice formed pursuant to
    56  subdivision (a) of section twelve hundred three of the limited liability

        A. 6377--A                         13
 
     1  company law, subdivision (b) of section  twelve  hundred  seven  of  the
     2  limited  liability  company  law,  subdivision  (a)  of section thirteen
     3  hundred one of the limited  liability  company  law,  paragraph  (a)  of
     4  section  fifteen hundred three of the business corporation law, subdivi-
     5  sion (q) of section 121-1500 of the partnership law, or subdivision  (q)
     6  of  section 121-1502 of the partnership law.  No provision of this arti-
     7  cle or any other provision of law shall be construed to: (a)  limit  the
     8  volume  of  mental  health,  substance use disorder services or develop-
     9  mental disability services that can be provided by a provider of primary
    10  care services licensed under this  article  and  authorized  to  provide
    11  integrated services in accordance with regulations issued by the commis-
    12  sioner  in  consultation  with  the commissioner of the office of mental
    13  health, the commissioner of the office of alcoholism and substance abuse
    14  services and the commissioner of the office  for  people  with  develop-
    15  mental  disabilities,  including regulations issued pursuant to subdivi-
    16  sion seven of section three hundred sixty-five-l of the social  services
    17  law  or  part L of chapter fifty-six of the laws of two thousand twelve;
    18  (b) require a provider licensed pursuant to article  thirty-one  of  the
    19  mental  hygiene  law or certified pursuant to article sixteen or article
    20  thirty-two of the mental hygiene law to obtain an operating  certificate
    21  from  the  department  if  such  provider has been authorized to provide
    22  integrated services in accordance with regulations issued by the commis-
    23  sioner in consultation with the commissioner of  the  office  of  mental
    24  health, the commissioner of the office of alcoholism and substance abuse
    25  services  and  the  commissioner  of the office for people with develop-
    26  mental disabilities, including regulations issued pursuant  to  subdivi-
    27  sion  seven of section three hundred sixty-five-l of the social services
    28  law or part L of chapter fifty-six of the laws of two thousand twelve.
    29    § 11. This act shall take effect on the thirtieth day after  it  shall
    30  have  become  a  law;  provided, however, that section ten-a of this act
    31  shall take effect on the same date and in the same manner as  section  1
    32  of part Z of chapter 57 of the laws of 2019, takes effect.
Go to top