Bill Text: NY A00240 | 2019-2020 | General Assembly | Introduced
Bill Title: Authorizes ophthalmologists, optometrists and ophthalmic dispensers to establish limited liability companies.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Introduced - Dead) 2020-01-08 - referred to higher education [A00240 Detail]
Download: New_York-2019-A00240-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 240 2019-2020 Regular Sessions IN ASSEMBLY (Prefiled) January 9, 2019 ___________ Introduced by M. of A. CAHILL -- Multi-Sponsored by -- M. of A. LUPARDO, STEC, STIRPE -- read once and referred to the Committee on Higher Education AN ACT to amend the limited liability company law, the business corpo- ration law, the partnership law, the public health law and the educa- tion law, in relation to authorizing optometrists and ophthalmic dispensing practices to form limited liability companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (a) of section 1203 of the limited liability 2 company law, as amended by chapter 475 of the laws of 2014, is amended 3 to read as follows: 4 (a) Notwithstanding the education law or any other provision of law, 5 one or more professionals each of whom is authorized by law to render a 6 professional service within the state, or one or more professionals, at 7 least one of whom is authorized by law to render a professional service 8 within the state, may form, or cause to be formed, a professional 9 service limited liability company for pecuniary profit under this arti- 10 cle for the purpose of rendering the professional service or services as 11 such professionals are authorized to practice. With respect to a profes- 12 sional service limited liability company formed to provide medical 13 services as such services are defined in article 131 of the education 14 law, each member of such limited liability company must be licensed 15 pursuant to article 131 of the education law to practice medicine in 16 this state. With respect to a professional service limited liability 17 company formed to provide dental services as such services are defined 18 in article 133 of the education law, each member of such limited liabil- 19 ity company must be licensed pursuant to article 133 of the education 20 law to practice dentistry in this state. With respect to a professional 21 service limited liability company formed to provide veterinary services EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03160-01-9A. 240 2 1 as such services are defined in article 135 of the education law, each 2 member of such limited liability company must be licensed pursuant to 3 article 135 of the education law to practice veterinary medicine in this 4 state. With respect to a professional service limited liability company 5 formed to provide professional engineering, land surveying, architec- 6 tural, landscape architectural and/or geological services as such 7 services are defined in article 145, article 147 and article 148 of the 8 education law, each member of such limited liability company must be 9 licensed pursuant to article 145, article 147 and/or article 148 of the 10 education law to practice one or more of such professions in this state. 11 With respect to a professional service limited liability company formed 12 to provide licensed clinical social work services as such services are 13 defined in article 154 of the education law, each member of such limited 14 liability company shall be licensed pursuant to article 154 of the 15 education law to practice licensed clinical social work in this state. 16 With respect to a professional service limited liability company formed 17 to provide creative arts therapy services as such services are defined 18 in article 163 of the education law, each member of such limited liabil- 19 ity company must be licensed pursuant to article 163 of the education 20 law to practice creative arts therapy in this state. With respect to a 21 professional service limited liability company formed to provide 22 marriage and family therapy services as such services are defined in 23 article 163 of the education law, each member of such limited liability 24 company must be licensed pursuant to article 163 of the education law to 25 practice marriage and family therapy in this state. With respect to a 26 professional service limited liability company formed to provide mental 27 health counseling services as such services are defined in article 163 28 of the education law, each member of such limited liability company must 29 be licensed pursuant to article 163 of the education law to practice 30 mental health counseling in this state. With respect to a professional 31 service limited liability company formed to provide psychoanalysis 32 services as such services are defined in article 163 of the education 33 law, each member of such limited liability company must be licensed 34 pursuant to article 163 of the education law to practice psychoanalysis 35 in this state. With respect to a professional service limited liability 36 company formed to provide applied behavior analysis services as such 37 services are defined in article 167 of the education law, each member of 38 such limited liability company must be licensed or certified pursuant to 39 article 167 of the education law to practice applied behavior analysis 40 in this state. In addition to engaging in such profession or 41 professions, a professional service limited liability company may engage 42 in any other business or activities as to which a limited liability 43 company may be formed under section two hundred one of this chapter. 44 Notwithstanding any other provision of this section, a professional 45 service limited liability company (i) authorized to practice law may 46 only engage in another profession or business or activities or (ii) 47 which is engaged in a profession or other business or activities other 48 than law may only engage in the practice of law, to the extent not 49 prohibited by any other law of this state or any rule adopted by the 50 appropriate appellate division of the supreme court or the court of 51 appeals. Notwithstanding any other provision of this section, with 52 respect to a limited liability company formed to provide integrated, 53 multidisciplinary medical services defined in article 131 of the educa- 54 tion law with optometry and/or ophthalmic dispensing services defined in 55 article 143 and/or article 144 of the education law, (i) each member of 56 such limited liability company must be licensed pursuant to article 131A. 240 3 1 and certified by the American board of ophthalmology, and/or licensed 2 pursuant to article 143 and/or article 144 of the education law to prac- 3 tice one or more of such professions in this state, (ii) each member 4 shall only practice his or her profession as specified in his or her 5 respective professional enabling statute under article 131 of the educa- 6 tion law, and (iii) the clinical integration of professional practices 7 within an integrated, multidisciplinary entity organized under this 8 section does not alter, expand or curtail the scope of practice of any 9 of the individuals licensed under the statute of his or her respective 10 professional enabling law, provided that: (a) the clinical judgment, 11 management and clinical decision-making of one or more article 131 12 providers in an integrated, multidisciplinary professional service 13 limited liability company shall be controlling, (b) members licensed 14 under article 143 and/or article 144 of the education law, shall not, 15 directly or indirectly, interfere with the clinical judgment or legiti- 16 mate clinical practice of a professional licensed under article 131, and 17 (c) individuals licensed under article 131 may not order or direct a 18 professional licensed under article 143 and/or article 144 of the educa- 19 tion law to practice beyond the scope of his or her license under arti- 20 cle 143 and/or article 144 of the education law, even if supervised 21 directly or indirectly by a professional licensed under article 131. 22 § 2. Subdivision (b) of section 1207 of the limited liability company 23 law, as amended by chapter 475 of the laws of 2014, is amended to read 24 as follows: 25 (b) With respect to a professional service limited liability company 26 formed to provide medical services as such services are defined in arti- 27 cle 131 of the education law, each member of such limited liability 28 company must be licensed pursuant to article 131 of the education law to 29 practice medicine in this state. With respect to a professional service 30 limited liability company formed to provide dental services as such 31 services are defined in article 133 of the education law, each member of 32 such limited liability company must be licensed pursuant to article 133 33 of the education law to practice dentistry in this state. With respect 34 to a professional service limited liability company formed to provide 35 veterinary services as such services are defined in article 135 of the 36 education law, each member of such limited liability company must be 37 licensed pursuant to article 135 of the education law to practice veter- 38 inary medicine in this state. With respect to a professional service 39 limited liability company formed to provide professional engineering, 40 land surveying, architectural, landscape architectural and/or geological 41 services as such services are defined in article 145, article 147 and 42 article 148 of the education law, each member of such limited liability 43 company must be licensed pursuant to article 145, article 147 and/or 44 article 148 of the education law to practice one or more of such 45 professions in this state. With respect to a professional service limit- 46 ed liability company formed to provide licensed clinical social work 47 services as such services are defined in article 154 of the education 48 law, each member of such limited liability company shall be licensed 49 pursuant to article 154 of the education law to practice licensed clin- 50 ical social work in this state. With respect to a professional service 51 limited liability company formed to provide creative arts therapy 52 services as such services are defined in article 163 of the education 53 law, each member of such limited liability company must be licensed 54 pursuant to article 163 of the education law to practice creative arts 55 therapy in this state. With respect to a professional service limited 56 liability company formed to provide marriage and family therapy servicesA. 240 4 1 as such services are defined in article 163 of the education law, each 2 member of such limited liability company must be licensed pursuant to 3 article 163 of the education law to practice marriage and family therapy 4 in this state. With respect to a professional service limited liability 5 company formed to provide mental health counseling services as such 6 services are defined in article 163 of the education law, each member of 7 such limited liability company must be licensed pursuant to article 163 8 of the education law to practice mental health counseling in this state. 9 With respect to a professional service limited liability company formed 10 to provide psychoanalysis services as such services are defined in arti- 11 cle 163 of the education law, each member of such limited liability 12 company must be licensed pursuant to article 163 of the education law to 13 practice psychoanalysis in this state. With respect to a professional 14 service limited liability company formed to provide applied behavior 15 analysis services as such services are defined in article 167 of the 16 education law, each member of such limited liability company must be 17 licensed or certified pursuant to article 167 of the education law to 18 practice applied behavior analysis in this state. Notwithstanding any 19 other provision of this section, with respect to a professional service 20 limited liability company formed to provide integrated, multidiscipli- 21 nary medical services defined in article 131 of the education law with 22 optometry and/or ophthalmic dispensing services defined in article 143 23 and/or article 144 of the education law, (i) each member of such limited 24 liability company must be licensed pursuant to article 131 and certified 25 by the American board of ophthalmology, and/or licensed pursuant to 26 article 143 and/or article 144 of the education law to practice one or 27 more of such professions in this state, (ii) each member shall only 28 practice his or her profession as specified in his or her respective 29 professional enabling statute under article 131, article 143, or article 30 144 of the education law, and (iii) the clinical integration of profes- 31 sional practices within an integrated, multidisciplinary entity organ- 32 ized under this section does not alter, expand or curtail the scope of 33 practice of any of the individuals licensed under the statute of his or 34 her respective professional enabling law, provided that: (a) the clin- 35 ical judgment, management and clinical decision-making of one or more 36 article 131 providers in an integrated, multidisciplinary professional 37 service limited liability company shall be controlling, (b) members 38 licensed under article 143 and/or article 144 of the education law, 39 shall not, directly or indirectly, interfere with the clinical judgment 40 or legitimate clinical practice of a professional licensed under article 41 131, and (c) individuals licensed under article 131 may not order or 42 direct a professional licensed under article 143 and/or article 144 of 43 the education law to practice beyond the scope of his or her license 44 under article 143 and/or article 144 of the education law, even if 45 supervised directly or indirectly by a professional licensed under arti- 46 cle 131. 47 § 3. Subdivision (a) of section 1301 of the limited liability company 48 law, as amended by chapter 475 of the laws of 2014, is amended to read 49 as follows: 50 (a) "Foreign professional service limited liability company" means a 51 professional service limited liability company, whether or not denomi- 52 nated as such, organized under the laws of a jurisdiction other than 53 this state, (i) each of whose members and managers, if any, is a profes- 54 sional authorized by law to render a professional service within this 55 state and who is or has been engaged in the practice of such profession 56 in such professional service limited liability company or a predecessorA. 240 5 1 entity, or will engage in the practice of such profession in the profes- 2 sional service limited liability company within thirty days of the date 3 such professional becomes a member, or each of whose members and manag- 4 ers, if any, is a professional at least one of such members is author- 5 ized by law to render a professional service within this state and who 6 is or has been engaged in the practice of such profession in such 7 professional service limited liability company or a predecessor entity, 8 or will engage in the practice of such profession in the professional 9 service limited liability company within thirty days of the date such 10 professional becomes a member, or (ii) authorized by, or holding a 11 license, certificate, registration or permit issued by the licensing 12 authority pursuant to, the education law to render a professional 13 service within this state; except that all members and managers, if any, 14 of a foreign professional service limited liability company that 15 provides health services in this state shall be licensed in this state. 16 With respect to a foreign professional service limited liability company 17 which provides veterinary services as such services are defined in arti- 18 cle 135 of the education law, each member of such foreign professional 19 service limited liability company shall be licensed pursuant to article 20 135 of the education law to practice veterinary medicine. With respect 21 to a foreign professional service limited liability company which 22 provides medical services as such services are defined in article 131 of 23 the education law, each member of such foreign professional service 24 limited liability company must be licensed pursuant to article 131 of 25 the education law to practice medicine in this state. With respect to a 26 foreign professional service limited liability company which provides 27 dental services as such services are defined in article 133 of the 28 education law, each member of such foreign professional service limited 29 liability company must be licensed pursuant to article 133 of the educa- 30 tion law to practice dentistry in this state. With respect to a foreign 31 professional service limited liability company which provides profes- 32 sional engineering, land surveying, geologic, architectural and/or land- 33 scape architectural services as such services are defined in article 34 145, article 147 and article 148 of the education law, each member of 35 such foreign professional service limited liability company must be 36 licensed pursuant to article 145, article 147 and/or article 148 of the 37 education law to practice one or more of such professions in this state. 38 With respect to a foreign professional service limited liability company 39 which provides licensed clinical social work services as such services 40 are defined in article 154 of the education law, each member of such 41 foreign professional service limited liability company shall be licensed 42 pursuant to article 154 of the education law to practice clinical social 43 work in this state. With respect to a foreign professional service 44 limited liability company which provides creative arts therapy services 45 as such services are defined in article 163 of the education law, each 46 member of such foreign professional service limited liability company 47 must be licensed pursuant to article 163 of the education law to prac- 48 tice creative arts therapy in this state. With respect to a foreign 49 professional service limited liability company which provides marriage 50 and family therapy services as such services are defined in article 163 51 of the education law, each member of such foreign professional service 52 limited liability company must be licensed pursuant to article 163 of 53 the education law to practice marriage and family therapy in this state. 54 With respect to a foreign professional service limited liability company 55 which provides mental health counseling services as such services are 56 defined in article 163 of the education law, each member of such foreignA. 240 6 1 professional service limited liability company must be licensed pursuant 2 to article 163 of the education law to practice mental health counseling 3 in this state. With respect to a foreign professional service limited 4 liability company which provides psychoanalysis services as such 5 services are defined in article 163 of the education law, each member of 6 such foreign professional service limited liability company must be 7 licensed pursuant to article 163 of the education law to practice 8 psychoanalysis in this state. With respect to a foreign professional 9 service limited liability company which provides applied behavior analy- 10 sis services as such services are defined in article 167 of the educa- 11 tion law, each member of such foreign professional service limited 12 liability company must be licensed or certified pursuant to article 167 13 of the education law to practice applied behavior analysis in this 14 state. With respect to a foreign professional service limited liability 15 company formed to provide integrated, multidisciplinary medical services 16 defined in article 131 of the education law with optometry and/or 17 ophthalmic dispensing services defined in article 143 and/or article 144 18 of the education law, (i) each member of such limited liability company 19 must be licensed pursuant to article 131 and certified by the American 20 board of ophthalmology, and/or licensed pursuant to article 143 and/or 21 article 144 of the education law to practice one or more of such 22 professions in this state, (ii) each member shall only practice his or 23 her profession as specified in his or her respective professional enabl- 24 ing statute under article 131, article 143, or article 144 of the educa- 25 tion law, and (iii) the clinical integration of professional practices 26 within an integrated, multidisciplinary entity organized under this 27 section does not alter, expand or curtail the scope of practice of any 28 of the individuals licensed under the statute of his or her respective 29 professional enabling law, provided that: (a) the clinical judgment, 30 management and clinical decision-making of one or more article 131 31 providers in an integrated, multidisciplinary professional service 32 limited liability company shall be controlling, (b) members licensed 33 under article 143 and/or article 144 of the education law, shall not, 34 directly or indirectly, interfere with the clinical judgment or legiti- 35 mate clinical practice of a professional licensed under article 131, and 36 (c) individuals licensed under article 131 may not order or direct a 37 professional licensed under article 143 and/or article 144 of the educa- 38 tion law to practice beyond the scope of his or her license under arti- 39 cle 143 and/or article 144 of the education law, even if supervised 40 directly or indirectly by a professional licensed under article 131. 41 § 4. Paragraph (a) of section 1503 of the business corporation law, as 42 amended by chapter 475 of the laws of 2014, is amended to read as 43 follows: 44 (a) Notwithstanding any other provision of law, (i) one or more indi- 45 viduals duly authorized by law to render the same professional service 46 within the state may organize, or cause to be organized, a professional 47 service corporation for pecuniary profit under this article for the 48 purpose of rendering the same professional service, except that one or 49 more individuals duly authorized by law to practice professional engi- 50 neering, architecture, landscape architecture, land surveying or geology 51 within the state may organize, or cause to be organized, a professional 52 service corporation or a design professional service corporation for 53 pecuniary profit under this article for the purpose of rendering such 54 professional services as such individuals are authorized to practice[.], 55 and, (ii) one or more individuals duly licensed to practice medicine and 56 who are certified by the American board of ophthalmology, and one orA. 240 7 1 more optometrist and/or ophthalmic dispenser licensed under article 143 2 and/or article 144 of the education law, who may be board certified or 3 qualified by his or her respective professional specialty boards, may 4 organize, or cause to be organized, for business purposes only, a multi- 5 disciplinary professional service corporation formed for pecuniary 6 profit under this article for the purpose of rendering integrated and 7 non-integrated professional services within such a corporation as such 8 individuals are authorized to practice individually in his or her 9 respective professions, provided that the clinical integration of 10 professional practices within an entity organized under this section 11 does not alter, expand or curtail the scope of practice of any of the 12 individuals licensed under the statute of his or her respective profes- 13 sional enabling law; that the clinical judgment, management and clinical 14 decision-making of one or more article 131 providers in an integrated, 15 multidisciplinary practice shall be controlling; that members licensed 16 under article 143 and/or article 144 of the education law, shall not, 17 directly or indirectly, interfere with the clinical judgment or legiti- 18 mate clinical practice of a professional licensed under article 131; and 19 that individuals licensed under article 131 may not order or direct a 20 professional licensed under article 143 and/or article 144 of the educa- 21 tion law to practice beyond the scope of his or her license under arti- 22 cle 143 and/or article 144 of the education law in a professional 23 service limited liability company, even if supervised directly or indi- 24 rectly by a professional licensed under article 131. 25 § 5. Subdivision (q) of section 121-1500 of the partnership law, as 26 amended by chapter 475 of the laws of 2014, is amended to read as 27 follows: 28 (q) Each partner of a registered limited liability partnership formed 29 to provide medical services in this state must be licensed pursuant to 30 article 131 of the education law to practice medicine in this state and 31 each partner of a registered limited liability partnership formed to 32 provide dental services in this state must be licensed pursuant to arti- 33 cle 133 of the education law to practice dentistry in this state. Each 34 partner of a registered limited liability partnership formed to provide 35 veterinary services in this state must be licensed pursuant to article 36 135 of the education law to practice veterinary medicine in this state. 37 Each partner of a registered limited liability partnership formed to 38 provide professional engineering, land surveying, geological services, 39 architectural and/or landscape architectural services in this state must 40 be licensed pursuant to article 145, article 147 and/or article 148 of 41 the education law to practice one or more of such professions in this 42 state. Each partner of a registered limited liability partnership formed 43 to provide licensed clinical social work services in this state must be 44 licensed pursuant to article 154 of the education law to practice clin- 45 ical social work in this state. Each partner of a registered limited 46 liability partnership formed to provide creative arts therapy services 47 in this state must be licensed pursuant to article 163 of the education 48 law to practice creative arts therapy in this state. Each partner of a 49 registered limited liability partnership formed to provide marriage and 50 family therapy services in this state must be licensed pursuant to arti- 51 cle 163 of the education law to practice marriage and family therapy in 52 this state. Each partner of a registered limited liability partnership 53 formed to provide mental health counseling services in this state must 54 be licensed pursuant to article 163 of the education law to practice 55 mental health counseling in this state. Each partner of a registered 56 limited liability partnership formed to provide psychoanalysis servicesA. 240 8 1 in this state must be licensed pursuant to article 163 of the education 2 law to practice psychoanalysis in this state. Each partner of a regis- 3 tered limited liability partnership formed to provide applied behavior 4 analysis service in this state must be licensed or certified pursuant to 5 article 167 of the education law to practice applied behavior analysis 6 in this state. Each partner of a registered limited liability partner- 7 ship formed to provide integrated, multidisciplinary medical services 8 defined in article 131 of the education law with optometry and/or 9 ophthalmic dispensing services defined in article 143 and/or article 144 10 of the education law, (i) must be licensed pursuant to article 131 and 11 certified by the American board of ophthalmology, and/or licensed pursu- 12 ant to article 143 and/or article 144 of the education law to practice 13 one or more of such professions in this state; and (ii) shall only prac- 14 tice his or her profession as specified in his or her respective profes- 15 sional enabling statute under article 131, article 143, or article 144 16 of the education law. The clinical integration of professional practices 17 within an integrated, multi-disciplinary entity organized under this 18 section does not alter, expand or curtail the scope of practice of any 19 of the individuals licensed under the statute of his or her respective 20 professional enabling law, provided that: (a) the clinical judgment, 21 management and clinical decision-making of one or more article 131 22 providers in an integrated, multidisciplinary professional service 23 limited liability company shall be controlling, (b) members licensed 24 under article 143 and/or article 144 of the education law, shall not, 25 directly or indirectly, interfere with the clinical judgment or legiti- 26 mate clinical practice of a professional licensed under article 131, and 27 (c) individuals licensed under article 131 may not order or direct a 28 professional licensed under article 143 and/or article 144 of the educa- 29 tion law to practice beyond the scope of his or her license under arti- 30 cle 143 and/or article 144 of the education law, even if supervised 31 directly or indirectly by a professional licensed under article 131. 32 § 6. Subdivision (q) of section 121-1502 of the partnership law, as 33 amended by chapter 475 of the laws of 2014, is amended to read as 34 follows: 35 (q) Each partner of a foreign limited liability partnership which 36 provides medical services in this state must be licensed pursuant to 37 article 131 of the education law to practice medicine in the state and 38 each partner of a foreign limited liability partnership which provides 39 dental services in the state must be licensed pursuant to article 133 of 40 the education law to practice dentistry in this state. Each partner of a 41 foreign limited liability partnership which provides veterinary service 42 in the state shall be licensed pursuant to article 135 of the education 43 law to practice veterinary medicine in this state. Each partner of a 44 foreign limited liability partnership which provides professional engi- 45 neering, land surveying, geological services, architectural and/or land- 46 scape architectural services in this state must be licensed pursuant to 47 article 145, article 147 and/or article 148 of the education law to 48 practice one or more of such professions. Each partner of a foreign 49 limited liability partnership which provides licensed clinical social 50 work services in this state must be licensed pursuant to article 154 of 51 the education law to practice licensed clinical social work in this 52 state. Each partner of a foreign limited liability partnership which 53 provides creative arts therapy services in this state must be licensed 54 pursuant to article 163 of the education law to practice creative arts 55 therapy in this state. Each partner of a foreign limited liability part- 56 nership which provides marriage and family therapy services in thisA. 240 9 1 state must be licensed pursuant to article 163 of the education law to 2 practice marriage and family therapy in this state. Each partner of a 3 foreign limited liability partnership which provides mental health coun- 4 seling services in this state must be licensed pursuant to article 163 5 of the education law to practice mental health counseling in this state. 6 Each partner of a foreign limited liability partnership which provides 7 psychoanalysis services in this state must be licensed pursuant to arti- 8 cle 163 of the education law to practice psychoanalysis in this state. 9 Each partner of a foreign limited liability partnership which provides 10 applied behavior analysis services in this state must be licensed or 11 certified pursuant to article 167 of the education law to practice 12 applied behavior analysis in this state. Each partner of a foreign 13 limited liability partnership formed to provide integrated, multidisci- 14 plinary medical services defined in article 131 of the education law 15 with optometry and/or ophthalmic dispensing services defined in article 16 143 and/or article 144 of the education law, (i) must be licensed pursu- 17 ant to article 131 and certified by the American board of ophthalmology, 18 and/or licensed pursuant to article 143 and/or article 144 of the educa- 19 tion law to practice one or more of such professions in this state; and 20 (ii) shall only practice his or her profession as specified in his or 21 her respective professional enabling statute under article 131, article 22 143, or article 144 of the education law. The clinical integration of 23 professional practices within an integrated, multidisciplinary entity 24 organized under this section does not alter, expand or curtail the scope 25 of practice of any of the individuals licensed under the statute of his 26 or her respective professional enabling law, provided that: (a) the 27 clinical judgment, management and clinical decision-making of one or 28 more article 131 providers in an integrated, multidisciplinary profes- 29 sional service limited liability company shall be controlling, (b) 30 members not licensed under article 131 of the education law, shall not, 31 directly or indirectly, interfere with the clinical judgment or legiti- 32 mate clinical practice of a professional licensed under article 131, and 33 (c) individuals licensed under article 131 may not order or direct a 34 professional licensed under article 143 and/or article 144 of the educa- 35 tion law to practice beyond the scope of his or her license under arti- 36 cle 143 and/or article 144 of the education law, even if supervised 37 directly or indirectly by a professional licensed under article 131. 38 § 7. Subdivision 1 of section 2801 of the public health law, as 39 amended by section 1 of subpart B of part S of chapter 57 of the laws of 40 2018, is amended to read as follows: 41 1. "Hospital" means a facility or institution engaged principally in 42 providing services by or under the supervision of a physician or, in the 43 case of a dental clinic or dental dispensary, of a dentist, or, in the 44 case of a midwifery birth center, of a midwife, for the prevention, 45 diagnosis or treatment of human disease, pain, injury, deformity or 46 physical condition, including, but not limited to, a general hospital, 47 public health center, diagnostic center, treatment center, dental clin- 48 ic, dental dispensary, rehabilitation center other than a facility used 49 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 50 tal, chronic disease hospital, maternity hospital, midwifery birth 51 center, lying-in-asylum, out-patient department, out-patient lodge, 52 dispensary and a laboratory or central service facility serving one or 53 more such institutions, but the term hospital shall not include an 54 institution, sanitarium or other facility engaged principally in provid- 55 ing services for the prevention, diagnosis or treatment of mental disa- 56 bility and which is subject to the powers of visitation, examination,A. 240 10 1 inspection and investigation of the department of mental hygiene except 2 for those distinct parts of such a facility which provide hospital 3 service. The provisions of this article shall not apply to a facility or 4 institution engaged principally in providing services by or under the 5 supervision of the bona fide members and adherents of a recognized reli- 6 gious organization whose teachings include reliance on spiritual means 7 through prayer alone for healing in the practice of the religion of such 8 organization and where services are provided in accordance with those 9 teachings or to a business corporation, limited liability corporation or 10 partnership between a medical doctor and a duly licensed title VIII 11 healthcare professional. No provision of this article or any other 12 provision of law shall be construed to: (a) limit the volume of mental 13 health or substance use disorder services that can be provided by a 14 provider of primary care services licensed under this article and 15 authorized to provide integrated services in accordance with regulations 16 issued by the commissioner in consultation with the commissioner of the 17 office of mental health and the commissioner of the office of alcoholism 18 and substance abuse services, including regulations issued pursuant to 19 subdivision seven of section three hundred sixty-five-l of the social 20 services law or part L of chapter fifty-six of the laws of two thousand 21 twelve; (b) require a provider licensed pursuant to article thirty-one 22 of the mental hygiene law or certified pursuant to article thirty-two of 23 the mental hygiene law to obtain an operating certificate from the 24 department if such provider has been authorized to provide integrated 25 services in accordance with regulations issued by the commissioner in 26 consultation with the commissioner of the office of mental health and 27 the commissioner of the office of alcoholism and substance abuse 28 services, including regulations issued pursuant to subdivision seven of 29 section three hundred sixty-five-l of the social services law or part L 30 of chapter fifty-six of the laws of two thousand twelve. 31 § 8. Subdivision 19 of section 6530 of the education law, as added by 32 chapter 606 of the laws of 1991, is amended to read as follows: 33 19. Permitting any person to share in the fees for professional 34 services, other than: a partner, employee, associate in a professional 35 firm or corporation, professional subcontractor or consultant authorized 36 to practice medicine, or a legally authorized trainee practicing under 37 the supervision of a licensee or an optometrist and/or ophthalmic 38 dispenser providing professional services in the same practice. This 39 prohibition shall include any arrangement or agreement whereby the 40 amount received in payment for furnishing space, facilities, equipment 41 or personnel services used by a licensee constitutes a percentage of, or 42 is otherwise dependent upon, the income or receipts of the licensee from 43 such practice, except as otherwise provided by law with respect to a 44 facility licensed pursuant to article twenty-eight of the public health 45 law or article thirteen of the mental hygiene law; 46 § 9. Section 6509-a of the education law, as amended by chapter 555 of 47 the laws of 1993, is amended to read as follows: 48 § 6509-a. Additional definition of professional misconduct; limited 49 application. Notwithstanding any inconsistent provision of this article 50 or of any other provision of law to the contrary, the license or regis- 51 tration of a person subject to the provisions of articles one hundred 52 thirty-two, one hundred thirty-three, one hundred thirty-six, one 53 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 54 one hundred forty-three, one hundred forty-four, one hundred fifty-six, 55 one hundred fifty-nine and one hundred sixty-four of this chapter may be 56 revoked, suspended or annulled or such person may be subject to anyA. 240 11 1 other penalty provided in section sixty-five hundred eleven of this 2 article in accordance with the provisions and procedure of this article 3 for the following: 4 That any person subject to the above enumerated articles, has directly 5 or indirectly requested, received or participated in the division, 6 transference, assignment, rebate, splitting or refunding of a fee for, 7 or has directly requested, received or profited by means of a credit or 8 other valuable consideration as a commission, discount or gratuity in 9 connection with the furnishing of professional care, or service, includ- 10 ing x-ray examination and treatment, or for or in connection with the 11 sale, rental, supplying or furnishing of clinical laboratory services or 12 supplies, x-ray laboratory services or supplies, inhalation therapy 13 service or equipment, ambulance service, hospital or medical supplies, 14 physiotherapy or other therapeutic service or equipment, artificial 15 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 16 optical appliances, supplies or equipment, devices for aid of hearing, 17 drugs, medication or medical supplies or any other goods, services or 18 supplies prescribed for medical diagnosis, care or treatment under this 19 chapter, except payment, not to exceed thirty-three and one-third per 20 centum of any fee received for x-ray examination, diagnosis or treat- 21 ment, to any hospital furnishing facilities for such examination, diag- 22 nosis or treatment. Nothing contained in this section shall prohibit 23 such persons from practicing as partners, in groups or as a professional 24 corporation or as a university faculty practice corporation nor from 25 pooling fees and moneys received, either by the partnerships, profes- 26 sional corporations, university faculty practice corporations or groups 27 by the individual members thereof, for professional services furnished 28 by any individual professional member, or employee of such partnership, 29 corporation or group, nor shall the professionals constituting the part- 30 nerships, corporations or groups be prohibited from sharing, dividing or 31 apportioning the fees and moneys received by them or by the partnership, 32 corporation or group in accordance with a partnership or other agree- 33 ment; provided that no such practice as partners, corporations or in 34 groups or pooling of fees or moneys received or shared, division or 35 apportionment of fees shall be permitted with respect to care and treat- 36 ment under the workers' compensation law except as expressly authorized 37 by the workers' compensation law. Nothing contained in this section, 38 shall prohibit an integrated, multidisciplinary medical and optometry 39 and/or ophthalmic dispensing practice formed pursuant to subdivision (a) 40 or (b) of section twelve hundred three of the limited liability company 41 law, subdivision (a) of section thirteen hundred one of the limited 42 liability company law, paragraph (a) of section fifteen hundred three of 43 the business corporation law, subdivision (q) of section 121-1500 of the 44 partnership law, or subdivision (q) of section 121-1502 of the partner- 45 ship law from pooling fees or monies received. Nothing contained in this 46 chapter shall prohibit a medical or dental expense indemnity corporation 47 pursuant to its contract with the subscriber from prorationing a medical 48 or dental expense indemnity allowance among two or more professionals in 49 proportion to the services rendered by each such professional at the 50 request of the subscriber, provided that prior to payment thereof such 51 professionals shall submit both to the medical or dental expense indem- 52 nity corporation and to the subscriber statements itemizing the services 53 rendered by each such professional and the charges therefor. 54 § 10. Section 6531 of the education law, as amended by chapter 555 of 55 the laws of 1993, is amended to read as follows:A. 240 12 1 § 6531. Additional definition of professional misconduct, limited 2 application. Notwithstanding any inconsistent provision of this article 3 or any other provisions of law to the contrary, the license or registra- 4 tion of a person subject to the provisions of this article and article 5 one hundred thirty-one-B of this chapter may be revoked, suspended, or 6 annulled or such person may be subject to any other penalty provided in 7 section two hundred thirty-a of the public health law in accordance with 8 the provisions and procedures of this article 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 17 or 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 25 percent 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, or university faculty practice corporations or 32 groups by the individual members thereof, for professional services 33 furnished by an individual professional member, or employee of such 34 partnership, corporation, or group, nor shall the professionals consti- 35 tuting the partnerships, corporations or groups be prohibited from shar- 36 ing, dividing, or apportioning the fees and moneys received by them or 37 by the partnership, corporation, or group in accordance with a partner- 38 ship or other agreement; provided that no such practice as partners, 39 corporations, or groups, or pooling of fees or moneys received or 40 shared, division or apportionment of fees shall be permitted with 41 respect to and treatment under the workers' compensation law. Nothing 42 contained in this section, shall prohibit an integrated, multidiscipli- 43 nary medical and optometry and/or ophthalmic dispensing practice formed 44 pursuant to subdivision (a) or (b) of section twelve hundred three of 45 the limited liability company law, subdivision (a) of section thirteen 46 hundred one of the limited liability company law, paragraph (a) of 47 section fifteen hundred three of the business corporation law, subdivi- 48 sion (q) of section 121-1500 of the partnership law, or subdivision (q) 49 of section 121-1502 of the partnership law from pooling fees or monies 50 received. Nothing contained in this chapter shall prohibit a corporation 51 licensed pursuant to article forty-three of the insurance law pursuant 52 to its contract with the subscribed from prorationing a medical or 53 dental expenses indemnity allowance among two or more professionals in 54 proportion to the services rendered by each such professional at the 55 request of the subscriber, provided that prior to payment thereof such 56 professionals shall submit both to the corporation licensed pursuant toA. 240 13 1 article forty-three of the insurance law and to the subscriber state- 2 ments itemizing the services rendered by each such professional and the 3 charges therefor. 4 § 11. This act shall take effect on the thirtieth day after it shall 5 have become a law.
