Bill Text: NY A00715 | 2023-2024 | General Assembly | Amended
Bill Title: Authorizes certain licensed health service professionals to form limited liability companies.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced) 2024-01-03 - referred to higher education [A00715 Detail]
Download: New_York-2023-A00715-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 715--A 2023-2024 Regular Sessions IN ASSEMBLY January 11, 2023 ___________ Introduced by M. of A. PEOPLES-STOKES, BENEDETTO, STECK, THIELE, LUPAR- DO, WOERNER, STIRPE, BUTTENSCHON, McDONALD -- Multi-Sponsored by -- M. of A. FITZPATRICK -- read once and referred to the Committee on High- er 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, 156, or 167 or subdivision 3 of section 20 6902 of article 139 of the education law may form, or cause to be EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00062-04-3A. 715--A 2 1 formed, a professional service limited liability company to provide 2 multidisciplinary services with one or more licensed professionals, 3 subject to the following conditions: (i) each member of such limited 4 liability company must be licensed pursuant to title eight of the educa- 5 tion law to practice his or her profession in this state; (ii) each 6 member shall only practice his or her profession as specified in his or 7 her respective professional enabling statue under title eight of the 8 education law; and (iii) any clinical integration of professional prac- 9 tices under this section shall not alter, expand or curtail the scope of 10 practice of any of the members; provided further that: (A) no member 11 shall, directly or indirectly, interfere with the clinical judgment or 12 legitimate clinical practice of another member; and (B) no member shall 13 order or direct another member to practice beyond the scope of his or 14 her license. With respect to a professional service limited liability 15 company formed to provide dental services as such services are defined 16 in article 133 of the education law, each member of such limited liabil- 17 ity company must be licensed pursuant to article 133 of the education 18 law to practice dentistry in this state. With respect to a professional 19 service limited liability company formed to provide veterinary services 20 as such services are defined in article 135 of the education law, each 21 member of such limited liability company must be licensed pursuant to 22 article 135 of the education law to practice veterinary medicine in this 23 state. With respect to a professional service limited liability company 24 formed to provide professional engineering, land surveying, architec- 25 tural, landscape architectural and/or geological services as such 26 services are defined in article 145, article 147 and article 148 of the 27 education law, each member of such limited liability company must be 28 licensed pursuant to article 145, article 147 and/or article 148 of the 29 education law to practice one or more of such professions in this state. 30 [With respect to a professional service limited liability company formed31to provide licensed clinical social work services as such services are32defined in article 154 of the education law, each member of such limited33liability company shall be licensed pursuant to article 154 of the34education law to practice licensed clinical social work in this state.] 35 With respect to a professional service limited liability company formed 36 to provide creative arts therapy services as such services are defined 37 in article 163 of the education law, each member of such limited liabil- 38 ity company must be licensed pursuant to article 163 of the education 39 law to practice creative arts therapy in this state. With respect to a 40 professional service limited liability company formed to provide 41 marriage and family therapy services as such services are defined in 42 article 163 of the education law, each member of such limited liability 43 company must be licensed pursuant to article 163 of the education law to 44 practice marriage and family therapy in this state. With respect to a 45 professional service limited liability company formed to provide mental 46 health counseling services as such services are defined in article 163 47 of the education law, each member of such limited liability company must 48 be licensed pursuant to article 163 of the education law to practice 49 mental health counseling in this state. With respect to a professional 50 service limited liability company formed to provide psychoanalysis 51 services as such services are defined in article 163 of the education 52 law, each member of such limited liability company must be licensed 53 pursuant to article 163 of the education law to practice psychoanalysis 54 in this state. [With respect to a professional service limited liability55company formed to provide applied behavior analysis services as such56services are defined in article 167 of the education law, each member ofA. 715--A 3 1such limited liability company must be licensed or certified pursuant to2article 167 of the education law to practice applied behavior analysis3in this state.] In addition to engaging in such profession or 4 professions, a professional service limited liability company may engage 5 in any other business or activities as to which a limited liability 6 company may be formed under section two hundred one of this chapter. 7 Notwithstanding any other provision of this section, a professional 8 service limited liability company (i) authorized to practice law may 9 only engage in another profession or business or activities or (ii) 10 which is engaged in a profession or other business or activities other 11 than law may only engage in the practice of law, to the extent not 12 prohibited by any other law of this state or any rule adopted by the 13 appropriate appellate division of the supreme court or the court of 14 appeals. 15 § 2. Subdivision (b) of section 1207 of the limited liability company 16 law, as amended by chapter 475 of the laws of 2014, is amended to read 17 as follows: 18 (b) With respect to a professional service limited liability company 19 formed to provide medical services as such services are defined in arti- 20 cle 131 of the education law, each member of such limited liability 21 company must be licensed pursuant to article 131 of the education law to 22 practice medicine in this state. Notwithstanding any other provision of 23 this section, any person licensed pursuant to article 131 of the educa- 24 tion law to practice medicine and any person licensed pursuant to arti- 25 cles 132, 137, 140, 141, 143, 144, 153, 154, 155, 156, or 167 or subdi- 26 vision 3 of section 6902 of article 139 of the education law may form, 27 or cause to be formed, a professional service limited liability company 28 to provide multidisciplinary services with one or more licensed profes- 29 sionals, subject to the following conditions: (i) each member of such 30 limited liability company must be licensed pursuant to title eight of 31 the education law to practice his or her profession in this state; (ii) 32 each member shall only practice his or her profession as specified in 33 his or her respective professional enabling statute under title eight of 34 the education law; and (iii) any clinical integration of professional 35 practices under this section shall not alter, expand or curtail the 36 scope of practice of any of the members; provided further that: (A) no 37 member shall, directly or indirectly, interfere with the clinical judge- 38 ment or legitimate clinical practice of another member; and (B) no 39 member shall order or direct another member to practice beyond the scope 40 of his or her license. With respect to a professional service limited 41 liability company formed to provide dental services as such services are 42 defined in article 133 of the education law, each member of such limited 43 liability company must be licensed pursuant to article 133 of the educa- 44 tion law to practice dentistry in this state. With respect to a profes- 45 sional service limited liability company formed to provide veterinary 46 services as such services are defined in article 135 of the education 47 law, each member of such limited liability company must be licensed 48 pursuant to article 135 of the education law to practice veterinary 49 medicine in this state. With respect to a professional service limited 50 liability company formed to provide professional engineering, land 51 surveying, architectural, landscape architectural and/or geological 52 services as such services are defined in article 145, article 147 and 53 article 148 of the education law, each member of such limited liability 54 company must be licensed pursuant to article 145, article 147 and/or 55 article 148 of the education law to practice one or more of such 56 professions in this state. [With respect to a professional serviceA. 715--A 4 1limited liability company formed to provide licensed clinical social2work services as such services are defined in article 154 of the educa-3tion law, each member of such limited liability company shall be4licensed pursuant to article 154 of the education law to practice5licensed clinical social work in this state.] With respect to a profes- 6 sional service limited liability company formed to provide creative arts 7 therapy services as such services are defined in article 163 of the 8 education law, each member of such limited liability company must be 9 licensed pursuant to article 163 of the education law to practice crea- 10 tive arts therapy in this state. With respect to a professional service 11 limited liability company formed to provide marriage and family therapy 12 services as such services are defined in article 163 of the education 13 law, each member of such limited liability company must be licensed 14 pursuant to article 163 of the education law to practice marriage and 15 family therapy in this state. With respect to a professional service 16 limited liability company formed to provide mental health counseling 17 services as such services are defined in article 163 of the education 18 law, each member of such limited liability company must be licensed 19 pursuant to article 163 of the education law to practice mental health 20 counseling in this state. With respect to a professional service limited 21 liability company formed to provide psychoanalysis services as such 22 services are defined in article 163 of the education law, each member of 23 such limited liability company must be licensed pursuant to article 163 24 of the education law to practice psychoanalysis in this state. [With25respect to a professional service limited liability company formed to26provide applied behavior analysis services as such services are defined27in article 167 of the education law, each member of such limited liabil-28ity company must be licensed or certified pursuant to article 167 of the29education law to practice applied behavior analysis in this state.] 30 § 3. Subdivision (a) of section 1301 of the limited liability company 31 law, as amended by chapter 475 of the laws of 2014, is amended to read 32 as follows: 33 (a) "Foreign professional service limited liability company" means a 34 professional service limited liability company, whether or not denomi- 35 nated as such, organized under the laws of a jurisdiction other than 36 this state, (i) each of whose members and managers, if any, is a profes- 37 sional authorized by law to render a professional service within this 38 state and who is or has been engaged in the practice of such profession 39 in such professional service limited liability company or a predecessor 40 entity, or will engage in the practice of such profession in the profes- 41 sional service limited liability company within thirty days of the date 42 such professional becomes a member, or each of whose members and manag- 43 ers, if any, is a professional at least one of such members is author- 44 ized by law to render a professional service within this state and who 45 is or has been engaged in the practice of such profession in such 46 professional service limited liability company or a predecessor entity, 47 or will engage in the practice of such profession in the professional 48 service limited liability company within thirty days of the date such 49 professional becomes a member, or (ii) authorized by, or holding a 50 license, certificate, registration or permit issued by the licensing 51 authority pursuant to, the education law to render a professional 52 service within this state; except that all members and managers, if any, 53 of a foreign professional service limited liability company that 54 provides health services in this state shall be licensed in this state. 55 With respect to a foreign professional service limited liability company 56 which provides veterinary services as such services are defined in arti-A. 715--A 5 1 cle 135 of the education law, each member of such foreign professional 2 service limited liability company shall be licensed pursuant to article 3 135 of the education law to practice veterinary medicine. With respect 4 to a foreign professional service limited liability company which 5 provides medical services as such services are defined in article 131 of 6 the education law, each member of such foreign professional service 7 limited liability company must be licensed pursuant to article 131 of 8 the education law to practice medicine in this state. Notwithstanding 9 any other provision of this section, any person licensed pursuant to 10 article 131 of the education law to practice medicine and any person 11 licensed pursuant to articles 132, 137, 140, 141, 143, 144, 153, 154, 12 155, 156, or 167 or subdivision 3 of section 6902 of article 139 of the 13 education law may form, or cause to be formed, a foreign professional 14 service limited liability company to provide multidisciplinary services 15 with one or more licensed professionals, subject to the following condi- 16 tions: (i) each member of such limited liability company must be 17 licensed pursuant to title eight of the education law to practice his or 18 her profession in this state; (ii) each member shall only practice his 19 or her profession as specified in his or her respective professional 20 enabling statute under title eight of the education law; and (iii) any 21 clinical integration of professional practices under this section shall 22 not alter, expand or curtail the scope of practice of any of the 23 members; provided further that: (A) no member shall, directly or indi- 24 rectly, interfere with the clinical judgment or legitimate clinical 25 practice of another member; and (B) no member shall order or direct 26 another member to practice beyond the scope of his or her license. With 27 respect to a foreign professional service limited liability company 28 which provides dental services as such services are defined in article 29 133 of the education law, each member of such foreign professional 30 service limited liability company must be licensed pursuant to article 31 133 of the education law to practice dentistry in this state. With 32 respect to a foreign professional service limited liability company 33 which provides professional engineering, land surveying, geologic, 34 architectural and/or landscape architectural services as such services 35 are defined in article 145, article 147 and article 148 of the education 36 law, each member of such foreign professional service limited liability 37 company must be licensed pursuant to article 145, article 147 and/or 38 article 148 of the education law to practice one or more of such 39 professions in this state. [With respect to a foreign professional40service limited liability company which provides licensed clinical41social work services as such services are defined in article 154 of the42education law, each member of such foreign professional service limited43liability company shall be licensed pursuant to article 154 of the44education law to practice clinical social work in this state.] With 45 respect to a foreign professional service limited liability company 46 which provides creative arts therapy services as such services are 47 defined in article 163 of the education law, each member of such foreign 48 professional service limited liability company must be licensed pursuant 49 to article 163 of the education law to practice creative arts therapy in 50 this state. With respect to a foreign professional service limited 51 liability company which provides marriage and family therapy services as 52 such services are defined in article 163 of the education law, each 53 member of such foreign professional service limited liability company 54 must be licensed pursuant to article 163 of the education law to prac- 55 tice marriage and family therapy in this state. With respect to a 56 foreign professional service limited liability company which providesA. 715--A 6 1 mental health counseling services as such services are defined in arti- 2 cle 163 of the education law, each member of such foreign professional 3 service limited liability company must be licensed pursuant to article 4 163 of the education law to practice mental health counseling in this 5 state. With respect to a foreign professional service limited liability 6 company which provides psychoanalysis services as such services are 7 defined in article 163 of the education law, each member of such foreign 8 professional service limited liability company must be licensed pursuant 9 to article 163 of the education law to practice psychoanalysis in this 10 state. [With respect to a foreign professional service limited liability11company which provides applied behavior analysis services as such12services are defined in article 167 of the education law, each member of13such foreign professional service limited liability company must be14licensed or certified pursuant to article 167 of the education law to15practice applied behavior analysis in this state.] 16 § 4. Paragraph (a) of section 1503 of the business corporation law, as 17 amended by chapter 475 of the laws of 2014, is amended to read as 18 follows: 19 (a) Notwithstanding any other provision of law, (i) one or more indi- 20 viduals duly authorized by law to render the same professional service 21 within the state may organize, or cause to be organized, a professional 22 service corporation for pecuniary profit under this article for the 23 purpose of rendering the same professional service, except that one or 24 more individuals duly authorized by law to practice professional engi- 25 neering, architecture, landscape architecture, land surveying or geology 26 within the state may organize, or cause to be organized, a professional 27 service corporation or a design professional service corporation for 28 pecuniary profit under this article for the purpose of rendering such 29 professional services as such individuals are authorized to practice, 30 and (ii) one or more individuals licensed to practice pursuant to arti- 31 cle 131 and one or more individuals licensed pursuant to articles 132, 32 137, 140, 141, 143, 144, 153, 154, 155, 156, or 167 or subdivision 3 of 33 section 6902 of article 139 of title eight of the education law may 34 organize, or cause to be organized, for business purposes only, a 35 professional service corporation formed for pecuniary profit under this 36 article for the purpose of rendering multidisciplinary services within 37 such a corporation as such individuals are authorized to practice indi- 38 vidually in his or her respective professions, subject to the following 39 conditions: (A) individual who organizes, or causes to organize, such 40 corporation must be licensed pursuant to title eight of the education 41 law to practice his or her profession in this state; (B) each member 42 shall only practice his or her profession as specified in his or her 43 respective professional enabling statute under title eight of the educa- 44 tion law; and (C) any clinical integration of professional practices 45 under this section shall not alter, expand or curtail the scope of prac- 46 tice of any of the members; (D) no individual shall, directly or indi- 47 rectly, interfere with the clinical judgment or legitimate clinical 48 practice of another individual; and (E) no individual shall order or 49 direct another individual to practice beyond the scope of his or her 50 license. 51 § 5. Subdivision (q) of section 121-1500 of the partnership law, as 52 amended by chapter 475 of the laws of 2014, is amended to read as 53 follows: 54 (q) Each partner of a registered limited liability partnership formed 55 to provide medical services in this state must be licensed pursuant to 56 article 131 of the education law to practice medicine in this state [andA. 715--A 7 1each]. Notwithstanding any other provision of this section, any person 2 licensed pursuant to article 131 of the education law to practice medi- 3 cine and any person licensed pursuant to articles 132, 137, 140, 141, 4 143, 144, 153, 154, 155, 156, or 167 or subdivision 3 of section 6902 of 5 article 139 of the education law may form, or cause to be formed, a 6 registered limited liability partnership to provide multidisciplinary 7 services with one or more licensed professionals, subject to the follow- 8 ing conditions: (i) each partner of such limited liability partnership 9 must be licensed pursuant to title eight of the education law to prac- 10 tice his or her profession in this state; (ii) each partner shall only 11 practice his or her profession as specified in his or her respective 12 professional enabling statute under title eight of the education law; 13 and (iii) any clinical integration of the professional practices under 14 this section shall not alter, expand or curtail the scope of practice of 15 any of the partners; provided further that: (A) no partner shall, 16 directly or indirectly, interfere with the clinical judgment or legiti- 17 mate clinical practice of another partner; and (B) no partner shall 18 order or direct another partner to practice beyond the scope of his or 19 her license. Each partner of a registered limited liability partnership 20 formed to provide dental services in this state must be licensed pursu- 21 ant to article 133 of the education law to practice dentistry in this 22 state. Each partner of a registered limited liability partnership 23 formed to provide veterinary services in this state must be licensed 24 pursuant to article 135 of the education law to practice veterinary 25 medicine in this state. Each partner of a registered limited liability 26 partnership formed to provide professional engineering, land surveying, 27 geological services, architectural and/or landscape architectural 28 services in this state must be licensed pursuant to article 145, article 29 147 and/or article 148 of the education law to practice one or more of 30 such professions in this state. [Each partner of a registered limited31liability partnership formed to provide licensed clinical social work32services in this state must be licensed pursuant to article 154 of the33education law to practice clinical social work in this state.] Each 34 partner of a registered limited liability partnership formed to provide 35 creative arts therapy services in this state must be licensed pursuant 36 to article 163 of the education law to practice creative arts therapy in 37 this state. Each partner of a registered limited liability partnership 38 formed to provide marriage and family therapy services in this state 39 must be licensed pursuant to article 163 of the education law to prac- 40 tice marriage and family therapy in this state. Each partner of a regis- 41 tered limited liability partnership formed to provide mental health 42 counseling services in this state must be licensed pursuant to article 43 163 of the education law to practice mental health counseling in this 44 state. Each partner of a registered limited liability partnership formed 45 to provide psychoanalysis services in this state must be licensed pursu- 46 ant to article 163 of the education law to practice psychoanalysis in 47 this state. [Each partner of a registered limited liability partnership48formed to provide applied behavior analysis service in this state must49be licensed or certified pursuant to article 167 of the education law to50practice applied behavior analysis in this state.] 51 § 6. Subdivision (q) of section 121-1502 of the partnership law, as 52 amended by chapter 475 of the laws of 2014, is amended to read as 53 follows: 54 (q) Each partner of a foreign limited liability partnership which 55 provides medical services in this state must be licensed pursuant to 56 article 131 of the education law to practice medicine in the state [andA. 715--A 8 1each]. Notwithstanding any other provision of this section, any person 2 licensed pursuant to article 131 of the education law to practice medi- 3 cine and any person licensed pursuant to articles 132, 137, 140, 141, 4 143, 144, 153, 154, 155, 156, or 167 or subdivision 3 of section 6902 of 5 article 139 of the education law may form, or cause to be formed, a 6 foreign limited liability partnership to provide multidisciplinary 7 services with one or more licensed professionals, subject to the follow- 8 ing conditions: (i) each partner of such foreign limited liability part- 9 nership must be licensed pursuant to title eight of the education law to 10 practice his or her profession in this state; (ii) each partner shall 11 only practice his or her profession as specified in his or her respec- 12 tive professional enabling statute under title eight of the education 13 law; and (iii) any clinical integration of professional practices under 14 this section shall not alter, expand or curtail the scope of practice of 15 any of the partners; provided further that: (A) no partner shall, 16 directly or indirectly, interfere with the clinical judgment or legiti- 17 mate clinical practice of another partner; and (B) no partner shall 18 order or direct another partner to practice beyond the scope of his or 19 her license. Each partner of a foreign limited liability partnership 20 which provides dental services in the state must be licensed pursuant to 21 article 133 of the education law to practice dentistry in this state. 22 Each partner of a foreign limited liability partnership which provides 23 veterinary service in the state shall be licensed pursuant to article 24 135 of the education law to practice veterinary medicine in this state. 25 Each partner of a foreign limited liability partnership which provides 26 professional engineering, land surveying, geological services, architec- 27 tural and/or landscape architectural services in this state must be 28 licensed pursuant to article 145, article 147 and/or article 148 of the 29 education law to practice one or more of such professions. [Each partner30of a foreign limited liability partnership which provides licensed clin-31ical social work services in this state must be licensed pursuant to32article 154 of the education law to practice licensed clinical social33work in this state.] Each partner of a foreign limited liability part- 34 nership which provides creative arts therapy services in this state must 35 be licensed pursuant to article 163 of the education law to practice 36 creative arts therapy in this state. Each partner of a foreign limited 37 liability partnership which provides marriage and family therapy 38 services in this state must be licensed pursuant to article 163 of the 39 education law to practice marriage and family therapy in this state. 40 Each partner of a foreign limited liability partnership which provides 41 mental health counseling services in this state must be licensed pursu- 42 ant to article 163 of the education law to practice mental health coun- 43 seling in this state. Each partner of a foreign limited liability part- 44 nership which provides psychoanalysis services in this state must be 45 licensed pursuant to article 163 of the education law to practice 46 psychoanalysis in this state. [Each partner of a foreign limited liabil-47ity partnership which provides applied behavior analysis services in48this state must be licensed or certified pursuant to article 167 of the49education law to practice applied behavior analysis in this state.] 50 § 7. Section 6509-a of the education law, as amended by chapter 555 of 51 the laws of 1993, is amended to read as follows: 52 § 6509-a. Additional definition of professional misconduct; limited 53 application. Notwithstanding any inconsistent provision of this article 54 or of any other provision of law to the contrary, the license or regis- 55 tration of a person subject to the provisions of articles one hundred 56 thirty-two, one hundred thirty-three, one hundred thirty-six, oneA. 715--A 9 1 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 2 one hundred forty-three, one hundred forty-four, one hundred fifty-six, 3 one hundred fifty-nine and one hundred sixty-four of this chapter may be 4 revoked, suspended or annulled or such person may be subject to any 5 other penalty provided in section sixty-five hundred eleven of this 6 article in accordance with the provisions and procedure of this article 7 for the following: 8 That any person subject to the above enumerated articles, has directly 9 or indirectly requested, received or participated in the division, 10 transference, assignment, rebate, splitting or refunding of a fee for, 11 or has directly requested, received or profited by means of a credit or 12 other valuable consideration as a commission, discount or gratuity in 13 connection with the furnishing of professional care, or service, includ- 14 ing x-ray examination and treatment, or for or in connection with the 15 sale, rental, supplying or furnishing of clinical laboratory services or 16 supplies, x-ray laboratory services or supplies, inhalation therapy 17 service or equipment, ambulance service, hospital or medical supplies, 18 physiotherapy or other therapeutic service or equipment, artificial 19 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 20 optical appliances, supplies or equipment, devices for aid of hearing, 21 drugs, medication or medical supplies or any other goods, services or 22 supplies prescribed for medical diagnosis, care or treatment under this 23 chapter, except payment, not to exceed thirty-three and one-third per 24 centum of any fee received for x-ray examination, diagnosis or treat- 25 ment, to any hospital furnishing facilities for such examination, diag- 26 nosis or treatment. Nothing contained in this section shall prohibit 27 such persons from practicing as partners, in groups or as a professional 28 corporation or as a university faculty practice corporation nor from 29 pooling fees and moneys received, either by the partnerships, profes- 30 sional corporations, university faculty practice corporations or groups 31 by the individual members thereof, for professional services furnished 32 by any individual professional member, or employee of such partnership, 33 corporation or group, nor shall the professionals constituting the part- 34 nerships, corporations or groups be prohibited from sharing, dividing or 35 apportioning the fees and moneys received by them or by the partnership, 36 corporation or group in accordance with a partnership or other agree- 37 ment; provided that no such practice as partners, corporations or in 38 groups or pooling of fees or moneys received or shared, division or 39 apportionment of fees shall be permitted with respect to care and treat- 40 ment under the workers' compensation law except as expressly authorized 41 by the workers' compensation law. Nothing contained in this section 42 shall prohibit a multidisciplinary services practice formed pursuant to 43 subdivision (a) of section twelve hundred three of the limited liability 44 company law, subdivision (b) of section twelve hundred seven of the 45 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 medical or 51 dental expense indemnity corporation pursuant to its contract with the 52 subscriber from prorationing a medical or dental expense indemnity 53 allowance among two or more professionals in proportion to the services 54 rendered by each such professional at the request of the subscriber, 55 provided that prior to payment thereof such professionals shall submit 56 both to the medical or dental expense indemnity corporation and to theA. 715--A 10 1 subscriber statements itemizing the services rendered by each such 2 professional and the charges therefor. 3 § 8. Subdivision 19 of section 6530 of the education law, as added by 4 chapter 606 of the laws of 1991, is amended to read as follows: 5 19. Permitting any person to share in the fees for professional 6 services, other than: a partner, employee, associate in a professional 7 firm or corporation, professional subcontractor or consultant authorized 8 to practice medicine, [or] a legally authorized trainee practicing under 9 the supervision of a licensee, or an authorized professional licensed 10 pursuant to article one hundred thirty-one, one hundred thirty-two, one 11 hundred thirty-seven, one hundred forty, one hundred forty-one, one 12 hundred forty-three, one hundred forty-four, one hundred fifty-three, 13 one hundred fifty-four, one hundred fifty-five, one hundred fifty-six, 14 one hundred fifty-nine, or one hundred sixty-seven or subdivision three 15 of section sixty-nine hundred two of article one hundred thirty-nine of 16 this chapter providing professional services in the same practice. This 17 prohibition shall include any arrangement or agreement whereby the 18 amount received in payment for furnishing space, facilities, equipment 19 or personnel services used by a licensee constitutes a percentage of, or 20 is otherwise dependent upon, the income or receipts of the licensee from 21 such practice, except as otherwise provided by law with respect to a 22 facility licensed pursuant to article twenty-eight of the public health 23 law or article thirteen of the mental hygiene law; 24 § 9. Section 6531 of the education law, as amended by chapter 555 of 25 the laws of 1993, is amended to read as follows: 26 § 6531. Additional definition of professional misconduct, limited 27 application. Notwithstanding any inconsistent provision of this article 28 or any other provisions of law to the contrary, the license or registra- 29 tion of a person subject to the provisions of this article and article 30 one hundred thirty-one-B of this chapter may be revoked, suspended, or 31 annulled or such person may be subject to any other penalty provided in 32 section two hundred thirty-a of the public health law in accordance with 33 the provisions and procedures of this article for the following: 34 That any person subject to the above-enumerated articles has directly 35 or indirectly requested, received or participated in the division, 36 transference, assignment, rebate, splitting, or refunding of a fee for, 37 or has directly requested, received or profited by means of a credit or 38 other valuable consideration as a commission, discount or gratuity, in 39 connection with the furnishing of professional care or service, includ- 40 ing x-ray examination and treatment, or for or in connection with the 41 sale, rental, supplying, or furnishing of clinical laboratory services 42 or supplies, x-ray laboratory services or supplies, inhalation therapy 43 service or equipment, ambulance service, hospital or medical supplies, 44 physiotherapy or other therapeutic service or equipment, artificial 45 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 46 optical appliances, supplies, or equipment, devices for aid of hearing, 47 drugs, medication, or medical supplies, or any other goods, services, or 48 supplies prescribed for medical diagnosis, care, or treatment under this 49 chapter, except payment, not to exceed thirty-three and one-third 50 percent of any fee received for x-ray examination, diagnosis, or treat- 51 ment, to any hospital furnishing facilities for such examination, diag- 52 nosis, or treatment. Nothing contained in this section shall prohibit 53 such persons from practicing as partners, in groups or as a professional 54 corporation or as a university faculty practice corporation, nor from 55 pooling fees and moneys received, either by the partnerships, profes- 56 sional corporations, or university faculty practice corporations orA. 715--A 11 1 groups by the individual members thereof, for professional services 2 furnished by an individual professional member, or employee of such 3 partnership, corporation, or group, nor shall the professionals consti- 4 tuting the partnerships, corporations or groups be prohibited from shar- 5 ing, dividing, or apportioning the fees and moneys received by them or 6 by the partnership, corporation, or group in accordance with a partner- 7 ship or other agreement; provided that no such practice as partners, 8 corporations, or groups, or pooling of fees or moneys received or 9 shared, division or apportionment of fees shall be permitted with 10 respect to and treatment under the workers' compensation law. Nothing 11 contained in this section shall prohibit a multidisciplinary services 12 practice formed pursuant to subdivision (a) of section twelve hundred 13 three of the limited liability company law, subdivision (b) of section 14 twelve hundred seven of the limited liability company law, subdivision 15 (a) of section thirteen hundred one of the limited liability company 16 law, paragraph (a) of section fifteen hundred three of the business 17 corporation law, subdivision (q) of section 121-1500 of the partnership 18 law, or subdivision (q) of section 121-1502 of the partnership law from 19 pooling fees or monies received. Nothing contained in this chapter shall 20 prohibit a corporation licensed pursuant to article forty-three of the 21 insurance law pursuant to its contract with the subscribed from prora- 22 tioning a medical or dental expenses indemnity allowance among two or 23 more professionals in proportion to the services rendered by each such 24 professional at the request of the subscriber, provided that prior to 25 payment thereof such professionals shall submit both to the corporation 26 licensed pursuant to article forty-three of the insurance law and to the 27 subscriber statements itemizing the services rendered by each such 28 professional and the charges therefor. 29 § 10. Subdivision 1 of section 2801 of the public health law, as 30 amended by section 2 of part E of chapter 57 of the laws of 2023, is 31 amended to read as follows: 32 1. "Hospital" means a facility or institution engaged principally in 33 providing services by or under the supervision of a physician or, in the 34 case of a dental clinic or dental dispensary, of a dentist, or, in the 35 case of a midwifery birth center, of a midwife, for the prevention, 36 diagnosis or treatment of human disease, pain, injury, deformity or 37 physical condition, including, but not limited to, a general hospital, 38 public health center, diagnostic center, treatment center, a rural emer- 39 gency hospital under 42 USC 1395x(kkk), or successor provisions, dental 40 clinic, dental dispensary, rehabilitation center other than a facility 41 used solely for vocational rehabilitation, nursing home, tuberculosis 42 hospital, 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 thoseA. 715--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 article 9 or any other provision of law shall be construed to: (a) limit the 10 volume of mental health, substance use disorder services or develop- 11 mental disability services that can be provided by a provider of primary 12 care services licensed under this article and authorized to provide 13 integrated services in accordance with regulations issued by the commis- 14 sioner in consultation with the commissioner of the office of mental 15 health, the commissioner of the office of [alcoholism] addiction 16 services and [substance abuse services] supports and the commissioner of 17 the office for people with developmental disabilities, including regu- 18 lations issued pursuant to subdivision seven of section three hundred 19 sixty-five-l of the social services law or part L of chapter fifty-six 20 of the laws of two thousand twelve; (b) require a provider licensed 21 pursuant to article thirty-one of the mental hygiene law or certified 22 pursuant to article sixteen or article thirty-two of the mental hygiene 23 law to obtain an operating certificate from the department if such 24 provider has been authorized to provide integrated services in accord- 25 ance with regulations issued by the commissioner in consultation with 26 the commissioner of the office of mental health, the commissioner of the 27 office of [alcoholism] addiction services and [substance abuse services] 28 supports and the commissioner of the office for people with develop- 29 mental disabilities, including regulations issued pursuant to subdivi- 30 sion seven of section three hundred sixty-five-l of the social services 31 law or part L of chapter fifty-six of the laws of two thousand twelve. 32 § 11. This act shall take effect on the thirtieth day after it shall 33 have become a law; provided, however that section ten of this act shall 34 take effect on the same date and in the same manner as section 2 of part 35 E of chapter 57 of the laws of 2023, takes effect.
