Bill Text: NY A00801 | 2013-2014 | General Assembly | Introduced


Bill Title: Permits psychologists to form limited liability companies.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Introduced - Dead) 2014-06-03 - held for consideration in higher education [A00801 Detail]

Download: New_York-2013-A00801-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          801
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced by M. of A. WEPRIN -- read once and referred to the Committee
         on Corporations, Authorities and Commissions
       AN  ACT  to amend the limited liability company law, the business corpo-
         ration law, the partnership law, the public health law and the  educa-
         tion  law,  in relation to allowing psychologists licensed under title
         VIII, article 153 of the  education  law  to  form  limited  liability
         companies
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Legislative intent. This bill  would  authorize  physicians
    2  and  psychologists  to  form  limited  liability companies, professional
    3  corporations and partnerships with one another. In the last two decades,
    4  practice in and among the health  professions  has  changed.  Artificial
    5  barriers  in  current  law  prohibit  multidisciplinary practices, which
    6  prevents physicians and other providers, including  psychologists,  from
    7  co-owning a practice and collaborating and coordinating on patient care.
    8  Such  restraints  should  not  prevail, as they are no longer in keeping
    9  with best practices in modern health care which espouse the  integration
   10  of behavioral and physical health.
   11    S  2. Subdivision (a) of section 1203 of the limited liability company
   12  law, as separately amended by chapters 420 and 676 of the laws of  2002,
   13  is amended to read as follows:
   14    (a)  Notwithstanding  the education law or any other provision of law,
   15  one or more professionals each of whom is authorized by law to render  a
   16  professional  service within the state, or one or more professionals, at
   17  least one of whom is authorized by law to render a professional  service
   18  within  the  state,  may  form,  or  cause  to be formed, a professional
   19  service limited liability company for pecuniary profit under this  arti-
   20  cle for the purpose of rendering the professional service or services as
   21  such professionals are authorized to practice. With respect to a profes-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03943-01-3
       A. 801                              2
    1  sional  service  limited  liability  company  formed  to provide medical
    2  services as such services are defined in article 131  of  the  education
    3  law,  each  member  of  such  limited liability company must be licensed
    4  pursuant  to  article  131  of the education law to practice medicine in
    5  this state. With respect to a  professional  service  limited  liability
    6  company  formed  to provide dental services as such services are defined
    7  in article 133 of the education law, each member of such limited liabil-
    8  ity company must be licensed pursuant to article 133  of  the  education
    9  law  to practice dentistry in this state. With respect to a professional
   10  service limited liability company formed to provide veterinary  services
   11  as  such  services are defined in article 135 of the education law, each
   12  member of such limited liability company must be  licensed  pursuant  to
   13  article 135 of the education law to practice veterinary medicine in this
   14  state.  With respect to a professional service limited liability company
   15  formed to provide professional engineering,  land  surveying,  architec-
   16  tural  and/or  landscape  architectural  services  as  such services are
   17  defined in article 145, article 147 and article  148  of  the  education
   18  law,  each  member  of  such  limited liability company must be licensed
   19  pursuant to article 145, article 147 and/or article 148 of the education
   20  law to practice one or more of such  professions  in  this  state.  With
   21  respect  to  a  professional service limited liability company formed to
   22  provide licensed clinical social work  services  as  such  services  are
   23  defined in article 154 of the education law, each member of such limited
   24  liability  company  shall  be  licensed  pursuant  to article 154 of the
   25  education law to practice licensed clinical social work in  this  state.
   26  With  respect to a professional service limited liability company formed
   27  to provide creative arts therapy services as such services  are  defined
   28  in article 163 of the education law, each member of such limited liabil-
   29  ity  company  must  be licensed pursuant to article 163 of the education
   30  law to practice creative arts therapy in this state. With respect  to  a
   31  professional   service  limited  liability  company  formed  to  provide
   32  marriage and family therapy services as such  services  are  defined  in
   33  article  163 of the education law, each member of such limited liability
   34  company must be licensed pursuant to article 163 of the education law to
   35  practice marriage and family therapy in this state. With  respect  to  a
   36  professional  service limited liability company formed to provide mental
   37  health counseling services as such services are defined in  article  163
   38  of the education law, each member of such limited liability company must
   39  be  licensed  pursuant  to  article 163 of the education law to practice
   40  mental health counseling in this state. With respect to  a  professional
   41  service  limited  liability  company  formed  to  provide psychoanalysis
   42  services as such services are defined in article 163  of  the  education
   43  law,  each  member  of  such  limited liability company must be licensed
   44  pursuant to article 163 of the education law to practice  psychoanalysis
   45  in   this   state.  In  addition  to  engaging  in  such  profession  or
   46  professions, a professional service limited liability company may engage
   47  in any other business or activities as  to  which  a  limited  liability
   48  company  may  be  formed  under section two hundred one of this chapter.
   49  Notwithstanding any other provision  of  this  section,  a  professional
   50  service  limited  liability  company  (i) authorized to practice law may
   51  only engage in another profession or  business  or  activities  or  (ii)
   52  which  is  engaged in a profession or other business or activities other
   53  than law may only engage in the practice  of  law,  to  the  extent  not
   54  prohibited  by  any  other  law of this state or any rule adopted by the
   55  appropriate appellate division of the supreme  court  or  the  court  of
   56  appeals.    NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SECTION, WITH
       A. 801                              3
    1  RESPECT TO A LIMITED LIABILITY COMPANY  FORMED  TO  PROVIDE  INTEGRATED,
    2  MULTIDISCIPLINARY  MEDICAL  AND PSYCHOLOGICAL SERVICES, AS SUCH SERVICES
    3  ARE RESPECTIVELY DEFINED UNDER ARTICLES 131 AND  153  OF  THE  EDUCATION
    4  LAW,  (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE LICENSED
    5  PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION LAW TO  PRACTICE
    6  HIS  OR  HER PROFESSION IN THIS STATE, (II) EACH MEMBER SHALL ONLY PRAC-
    7  TICE HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFES-
    8  SIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE 153 OF  THE  EDUCA-
    9  TION  LAW,  AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES
   10  WITHIN AN INTEGRATED,  MULTIDISCIPLINARY  ENTITY  ORGANIZED  UNDER  THIS
   11  SECTION  DOES  NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
   12  OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR  HER  RESPECTIVE
   13  PROFESSIONAL  ENABLING  LAW, PROVIDED THAT:   (A) MEMBERS LICENSED UNDER
   14  ARTICLE 153 OF THE EDUCATION LAW, SHALL  NOT,  DIRECTLY  OR  INDIRECTLY,
   15  INTERFERE  WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF
   16  A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B)  MEMBERS  LICENSED  UNDER
   17  ARTICLE  131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLIN-
   18  ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
   19  UNDER ARTICLE 153, AND (C) INDIVIDUALS LICENSED UNDER  ARTICLE  131  MAY
   20  NOT  ORDER  OR  DIRECT  A PROFESSIONAL LICENSED UNDER ARTICLE 153 OF THE
   21  EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER  LICENSE  UNDER
   22  ARTICLE  153  OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY OR INDI-
   23  RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
   24    S 3. Subdivision (b) of section 1207 of the limited liability  company
   25  law,  as separately amended by chapters 420 and 676 of the laws of 2002,
   26  is amended to read as follows:
   27    (b) With respect to a professional service limited  liability  company
   28  formed to provide medical services as such services are defined in arti-
   29  cle  131  of  the  education  law, each member of such limited liability
   30  company must be licensed pursuant to article 131 of the education law to
   31  practice medicine in this state. With respect to a professional  service
   32  limited  liability  company  formed  to  provide dental services as such
   33  services are defined in article 133 of the education law, each member of
   34  such limited liability company must be licensed pursuant to article  133
   35  of  the  education law to practice dentistry in this state. With respect
   36  to a professional service limited liability company  formed  to  provide
   37  veterinary  services  as such services are defined in article 135 of the
   38  education law, each member of such limited  liability  company  must  be
   39  licensed pursuant to article 135 of the education law to practice veter-
   40  inary  medicine  in  this  state. With respect to a professional service
   41  limited liability company formed to  provide  professional  engineering,
   42  land surveying, architectural and/or landscape architectural services as
   43  such services are defined in article 145, article 147 and article 148 of
   44  the education law, each member of such limited liability company must be
   45  licensed  pursuant to article 145, article 147 and/or article 148 of the
   46  education law to practice one or more of such professions in this state.
   47  With respect to a professional service limited liability company  formed
   48  to  provide  licensed clinical social work services as such services are
   49  defined in article 154 of the education law, each member of such limited
   50  liability company shall be licensed  pursuant  to  article  154  of  the
   51  education  law  to practice licensed clinical social work in this state.
   52  With respect to a professional service limited liability company  formed
   53  to  provide  creative arts therapy services as such services are defined
   54  in article 163 of the education law, each member of such limited liabil-
   55  ity company must be licensed pursuant to article 163  of  the  education
   56  law  to  practice creative arts therapy in this state. With respect to a
       A. 801                              4
    1  professional  service  limited  liability  company  formed  to   provide
    2  marriage  and  family  therapy  services as such services are defined in
    3  article 163 of the education law, each member of such limited  liability
    4  company must be licensed pursuant to article 163 of the education law to
    5  practice  marriage  and  family therapy in this state. With respect to a
    6  professional service limited liability company formed to provide  mental
    7  health  counseling  services as such services are defined in article 163
    8  of the education law, each member of such limited liability company must
    9  be licensed pursuant to article 163 of the  education  law  to  practice
   10  mental  health  counseling in this state. With respect to a professional
   11  service limited  liability  company  formed  to  provide  psychoanalysis
   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 psychoanalysis
   15  in this state.   NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS  SECTION,
   16  WITH  RESPECT TO A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY FORMED
   17  TO  PROVIDE  INTEGRATED,  MULTIDISCIPLINARY  MEDICAL  AND  PSYCHOLOGICAL
   18  SERVICES,  AS  SUCH SERVICES ARE RESPECTIVELY DEFINED UNDER ARTICLES 131
   19  AND 153 OF THE EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED  LIABILITY
   20  COMPANY  MUST  BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE
   21  EDUCATION LAW TO PRACTICE HIS OR HER PROFESSION IN THIS STATE, (II) EACH
   22  MEMBER SHALL ONLY PRACTICE HIS OR HER PROFESSION AS SPECIFIED IN HIS  OR
   23  HER  RESPECTIVE PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTI-
   24  CLE 153 OF THE EDUCATION LAW, AND  (III)  THE  CLINICAL  INTEGRATION  OF
   25  PROFESSIONAL  PRACTICES  WITHIN  AN INTEGRATED, MULTIDISCIPLINARY ENTITY
   26  ORGANIZED UNDER THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE
   27  OF PRACTICE OF ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF  HIS
   28  OR HER RESPECTIVE PROFESSIONAL ENABLING LAW, PROVIDED THAT:  (A) MEMBERS
   29  LICENSED  UNDER ARTICLE 153 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR
   30  INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE  CLINICAL
   31  PRACTICE  OF  A  PROFESSIONAL  LICENSED  UNDER  ARTICLE 131, (B) MEMBERS
   32  LICENSED UNDER ARTICLE 131 SHALL NOT, DIRECTLY OR INDIRECTLY,  INTERFERE
   33  WITH  THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFES-
   34  SIONAL LICENSED UNDER ARTICLE 153, AND (C)  INDIVIDUALS  LICENSED  UNDER
   35  ARTICLE  131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTI-
   36  CLE 153 OF THE EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR  HER
   37  LICENSE  UNDER  ARTICLE  153  OF  THE  EDUCATION LAW, EVEN IF SUPERVISED
   38  DIRECTLY OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
   39    S 4. Subdivision (a) of section 1301 of the limited liability  company
   40  law,  as separately amended by chapters 420 and 676 of the laws of 2002,
   41  is amended to read as follows:
   42    (a) "Foreign professional service limited liability company"  means  a
   43  professional  service  limited liability company, whether or not denomi-
   44  nated as such, organized under the laws of  a  jurisdiction  other  than
   45  this state, (i) each of whose members and managers, if any, is a profes-
   46  sional  authorized  by  law to render a professional service within this
   47  state and who is or has been engaged in the practice of such  profession
   48  in  such professional service limited liability company or a predecessor
   49  entity, or will engage in the practice of such profession in the profes-
   50  sional service limited liability company within thirty days of the  date
   51  such  professional becomes a member, or each of whose members and manag-
   52  ers, if any, is a professional at least one of such members  is  author-
   53  ized  by  law to render a professional service within this state and who
   54  is or has been engaged in  the  practice  of  such  profession  in  such
   55  professional  service limited liability company or a predecessor entity,
   56  or will engage in the practice of such profession  in  the  professional
       A. 801                              5
    1  service  limited  liability  company within thirty days of the date such
    2  professional becomes a member, or  (ii)  authorized  by,  or  holding  a
    3  license,  certificate,  registration  or  permit issued by the licensing
    4  authority  pursuant  to,  the  education  law  to  render a professional
    5  service within this state; except that all members and managers, if any,
    6  of  a  foreign  professional  service  limited  liability  company  that
    7  provides  health services in this state shall be licensed in this state.
    8  With respect to a foreign professional service limited liability company
    9  which provides veterinary services as such services are defined in arti-
   10  cle 135 of the education law, each member of such  foreign  professional
   11  service  limited liability company shall be licensed pursuant to article
   12  135 of the education law to practice veterinary medicine.  With  respect
   13  to  a  foreign  professional  service  limited  liability  company which
   14  provides medical services as such services are defined in article 131 of
   15  the education law, each member  of  such  foreign  professional  service
   16  limited  liability  company  must be licensed pursuant to article 131 of
   17  the education law to practice medicine in this state.  With respect to a
   18  foreign professional service limited liability  company  which  provides
   19  dental  services  as  such  services  are  defined in article 133 of the
   20  education law, each member of such foreign professional service  limited
   21  liability company must be licensed pursuant to article 133 of the educa-
   22  tion  law to practice dentistry in this state. With respect to a foreign
   23  professional service limited liability company  which  provides  profes-
   24  sional  engineering,  land  surveying,  architectural  and/or  landscape
   25  architectural services as such services  are  defined  in  article  145,
   26  article  147  and  article 148 of the education law, each member of such
   27  foreign professional service limited liability company must be  licensed
   28  pursuant to article 145, article 147 and/or article 148 of the education
   29  law  to  practice  one  or  more of such professions in this state. With
   30  respect to a foreign  professional  service  limited  liability  company
   31  which  provides  licensed clinical social work services as such services
   32  are defined in article 154 of the education law,  each  member  of  such
   33  foreign professional service limited liability company shall be licensed
   34  pursuant to article 154 of the education law to practice clinical social
   35  work  in  this  state.  With  respect  to a foreign professional service
   36  limited liability company which provides creative arts therapy  services
   37  as  such  services are defined in article 163 of the education law, each
   38  member of such foreign professional service  limited  liability  company
   39  must  be  licensed pursuant to article 163 of the education law to prac-
   40  tice creative arts therapy in this state.  With  respect  to  a  foreign
   41  professional  service  limited liability company which provides marriage
   42  and family therapy services as such services are defined in article  163
   43  of  the  education law, each member of such foreign professional service
   44  limited liability company must be licensed pursuant to  article  163  of
   45  the education law to practice marriage and family therapy in this state.
   46  With respect to a foreign professional service limited liability company
   47  which  provides  mental  health counseling services as such services are
   48  defined in article 163 of the education law, each member of such foreign
   49  professional service limited liability company must be licensed pursuant
   50  to article 163 of the education law to practice mental health counseling
   51  in this state. With respect to a foreign  professional  service  limited
   52  liability   company  which  provides  psychoanalysis  services  as  such
   53  services are defined in article 163 of the education law, each member of
   54  such foreign professional service  limited  liability  company  must  be
   55  licensed  pursuant  to  article  163  of  the  education law to practice
   56  psychoanalysis in this state.  WITH RESPECT TO  A  FOREIGN  PROFESSIONAL
       A. 801                              6
    1  SERVICE   LIMITED   LIABILITY  COMPANY  FORMED  TO  PROVIDE  INTEGRATED,
    2  MULTI-DISCIPLINARY MEDICAL AND PSYCHOLOGICAL SERVICES, AS SUCH  SERVICES
    3  ARE RESPECTIVELY DEFINED UNDER ARTICLE 131 AND ARTICLE 153 OF THE EDUCA-
    4  TION  LAW,  (I)  EACH  MEMBER  OF SUCH LIMITED LIABILITY COMPANY MUST BE
    5  LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION LAW  TO
    6  PRACTICE  HIS  OR  HER  PROFESSION IN THIS STATE, (II) EACH MEMBER SHALL
    7  ONLY PRACTICE HIS OR HER PROFESSION AS SPECIFIED IN HIS OR  HER  RESPEC-
    8  TIVE  PROFESSIONAL  ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE 153 OF
    9  THE EDUCATION LAW, AND (III) THE CLINICAL  INTEGRATION  OF  PROFESSIONAL
   10  PRACTICES WITHIN AN INTEGRATED, MULTIDISCIPLINARY ENTITY ORGANIZED UNDER
   11  THIS  SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF
   12  ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER  RESPEC-
   13  TIVE  PROFESSIONAL  ENABLING  LAW,  PROVIDED  THAT: (A) MEMBERS LICENSED
   14  UNDER ARTICLE 153 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECT-
   15  LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
   16  OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B) MEMBERS LICENSED UNDER
   17  ARTICLE 131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE  CLIN-
   18  ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
   19  UNDER  ARTICLE  153,  AND (C) INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY
   20  NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER  ARTICLE  153  OF  THE
   21  EDUCATION  LAW  TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER
   22  ARTICLE 153 OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY  OR  INDI-
   23  RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
   24    S 5. Paragraph (a) of section 1503 of the business corporation law, as
   25  amended  by  chapter  550  of  the  laws  of 2011, is amended to read as
   26  follows:
   27    (a) Notwithstanding any other provision of law, (I) one or more  indi-
   28  viduals  duly  authorized by law to render the same professional service
   29  within the state may organize, or cause to be organized, a  professional
   30  service  corporation  for  pecuniary  profit  under this article for the
   31  purpose of rendering the same professional service, except that  one  or
   32  more  individuals  duly authorized by law to practice professional engi-
   33  neering, architecture, landscape architecture or land  surveying  within
   34  the state may organize, or cause to be organized, a professional service
   35  corporation  or  a design professional service corporation for pecuniary
   36  profit under this article for the purpose of rendering such professional
   37  services as such individuals are authorized to practice, AND,  (II)  ONE
   38  OR  MORE  INDIVIDUALS DULY LICENSED TO PRACTICE MEDICINE AND ONE OR MORE
   39  PSYCHOLOGISTS LICENSED UNDER ARTICLE  ONE  HUNDRED  FIFTY-THREE  OF  THE
   40  EDUCATION  LAW,  WHO  MAY  BE BOARD CERTIFIED OR QUALIFIED BY HIS OR HER
   41  RESPECTIVE PROFESSIONAL SPECIALTY BOARDS, MAY ORGANIZE, OR CAUSE  TO  BE
   42  ORGANIZED,  FOR BUSINESS PURPOSES ONLY, A MULTIDISCIPLINARY PROFESSIONAL
   43  SERVICE CORPORATION FORMED FOR PECUNIARY PROFIT UNDER THIS  ARTICLE  FOR
   44  THE  PURPOSE  OF  RENDERING  INTEGRATED  AND NON-INTEGRATED PROFESSIONAL
   45  SERVICES WITHIN SUCH A CORPORATION AS SUCH INDIVIDUALS ARE AUTHORIZED TO
   46  PRACTICE INDIVIDUALLY IN HIS OR  HER  RESPECTIVE  PROFESSIONS,  PROVIDED
   47  THAT THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES WITHIN AN ENTITY
   48  ORGANIZED UNDER THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE
   49  OF  PRACTICE OF ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS
   50  OR HER RESPECTIVE PROFESSIONAL ENABLING LAW; THAT THE CLINICAL JUDGMENT,
   51  MANAGEMENT AND CLINICAL DECISION-MAKING  OF  ONE  OR  MORE  ARTICLE  ONE
   52  HUNDRED  THIRTY-ONE  PROVIDERS IN AN INTEGRATED, MULTIDISCIPLINARY PRAC-
   53  TICE SHALL BE CONTROLLING;  THAT  MEMBERS  LICENSED  UNDER  ARTICLE  ONE
   54  HUNDRED  FIFTY-THREE  OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDI-
   55  RECTLY, INTERFERE WITH THE  CLINICAL  JUDGMENT  OR  LEGITIMATE  CLINICAL
   56  PRACTICE   OF   A   PROFESSIONAL  LICENSED  UNDER  ARTICLE  ONE  HUNDRED
       A. 801                              7
    1  THIRTY-ONE; AND THAT INDIVIDUALS  LICENSED  UNDER  ARTICLE  ONE  HUNDRED
    2  THIRTY-ONE MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTICLE
    3  ONE  HUNDRED  FIFTY-THREE  OF  THE  EDUCATION LAW TO PRACTICE BEYOND THE
    4  SCOPE OF HIS OR HER LICENSE UNDER ARTICLE ONE HUNDRED FIFTY-THREE OF THE
    5  EDUCATION  LAW IN A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY, EVEN
    6  IF SUPERVISED DIRECTLY OR INDIRECTLY BY A  PROFESSIONAL  LICENSED  UNDER
    7  ARTICLE ONE HUNDRED THIRTY-ONE.
    8    S  6.  Subdivision  (q) of section 121-1500 of the partnership law, as
    9  separately amended by chapters 420 and 676  of  the  laws  of  2002,  is
   10  amended to read as follows:
   11    (q)  Each partner of a registered limited liability partnership formed
   12  to provide medical services in this state must be licensed  pursuant  to
   13  article  131 of the education law to practice medicine in this state and
   14  each partner of a registered limited  liability  partnership  formed  to
   15  provide dental services in this state must be licensed pursuant to arti-
   16  cle  133 of the education law to practice dentistry in this state.  Each
   17  partner of a registered limited liability partnership formed to  provide
   18  veterinary  services  in this state must be licensed pursuant to article
   19  135 of the education law to practice veterinary medicine in this  state.
   20  Each  partner  of  a  registered limited liability partnership formed to
   21  provide professional engineering, land surveying,  architectural  and/or
   22  landscape architectural services in this state must be licensed pursuant
   23  to  article  145, article 147 and/or article 148 of the education law to
   24  practice one or more of such professions in this state. Each partner  of
   25  a  registered  limited  liability partnership formed to provide licensed
   26  clinical social work services in this state must be licensed pursuant to
   27  article 154 of the education law to practice  clinical  social  work  in
   28  this  state.  Each partner of a registered limited liability partnership
   29  formed to provide creative arts therapy services in this state  must  be
   30  licensed  pursuant to article 163 of the education law to practice crea-
   31  tive arts therapy in this state. Each partner of  a  registered  limited
   32  liability  partnership  formed  to  provide  marriage and family therapy
   33  services in this state must be licensed pursuant to article 163  of  the
   34  education  law  to  practice  marriage and family therapy in this state.
   35  Each partner of a registered limited  liability  partnership  formed  to
   36  provide mental health counseling services in this state must be licensed
   37  pursuant  to  article 163 of the education law to practice mental health
   38  counseling in this state. Each partner of a registered limited liability
   39  partnership formed to provide psychoanalysis services in this state must
   40  be licensed pursuant to article 163 of the  education  law  to  practice
   41  psychoanalysis  in  this  state.  EACH  PARTNER  OF A REGISTERED LIMITED
   42  LIABILITY PARTNERSHIP FORMED TO  PROVIDE  INTEGRATED,  MULTIDISCIPLINARY
   43  MEDICAL  AND  PSYCHOLOGICAL  SERVICES, AS SUCH SERVICES ARE RESPECTIVELY
   44  DEFINED UNDER ARTICLE 131 AND ARTICLE 153 OF THE EDUCATION LAW, (I) MUST
   45  BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION  LAW
   46  TO  PRACTICE  HIS OR HER PROFESSION IN THIS STATE, (II) SHALL ONLY PRAC-
   47  TICE HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFES-
   48  SIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE 153 OF  THE  EDUCA-
   49  TION  LAW,  AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES
   50  WITHIN AN INTEGRATED, MULTI-DISCIPLINARY  ENTITY  ORGANIZED  UNDER  THIS
   51  SECTION  DOES  NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
   52  OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR  HER  RESPECTIVE
   53  PROFESSIONAL  ENABLING  LAW,  PROVIDED  THAT: (A) MEMBERS LICENSED UNDER
   54  ARTICLE 153 OF THE EDUCATION LAW, SHALL  NOT,  DIRECTLY  OR  INDIRECTLY,
   55  INTERFERE  WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF
   56  A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B)  MEMBERS  LICENSED  UNDER
       A. 801                              8
    1  ARTICLE  131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLIN-
    2  ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
    3  UNDER ARTICLE 153, AND (C) INDIVIDUALS LICENSED UNDER  ARTICLE  131  MAY
    4  NOT  ORDER  OR  DIRECT  A PROFESSIONAL LICENSED UNDER ARTICLE 153 OF THE
    5  EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER  LICENSE  UNDER
    6  ARTICLE  153  OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY OR INDI-
    7  RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
    8    S 7. Subdivision (q) of section 121-1502 of the  partnership  law,  as
    9  amended  by  chapter  230  of  the  laws  of 2004, is amended to read as
   10  follows:
   11    (q) Each partner of a  foreign  limited  liability  partnership  which
   12  provides  medical  services  in  this state must be licensed pursuant to
   13  article 131 of the education law to practice medicine in the  state  and
   14  each  partner  of a foreign limited liability partnership which provides
   15  dental services in the state must be licensed pursuant to article 133 of
   16  the education law to practice dentistry in this state. Each partner of a
   17  foreign limited liability partnership which provides veterinary  service
   18  in  the state shall be licensed pursuant to article 135 of the education
   19  law to practice veterinary medicine in this state.  Each  partner  of  a
   20  foreign  limited liability partnership which provides professional engi-
   21  neering, land surveying, architectural  and/or  landscape  architectural
   22  services in this state must be licensed pursuant to article 145, article
   23  147  and/or  article 148 of the education law to practice one or more of
   24  such professions. Each partner of a foreign limited  liability  partner-
   25  ship which provides licensed clinical social work services in this state
   26  must  be  licensed pursuant to article 154 of the education law to prac-
   27  tice licensed clinical social work in this  state.  Each  partner  of  a
   28  foreign limited liability partnership which provides creative arts ther-
   29  apy  services  in this state must be licensed pursuant to article 163 of
   30  the education law to practice creative arts therapy in this state.  Each
   31  partner  of  a  foreign  limited  liability  partnership  which provides
   32  marriage and family therapy services in  this  state  must  be  licensed
   33  pursuant  to  article  163 of the education law to practice marriage and
   34  family therapy in this state. Each partner of a foreign limited  liabil-
   35  ity partnership which provides mental health counseling services in this
   36  state  must  be licensed pursuant to article 163 of the education law to
   37  practice mental health counseling in  this  state.  Each  partner  of  a
   38  foreign  limited  liability  partnership  which  provides psychoanalysis
   39  services in this state must be licensed pursuant to article 163  of  the
   40  education law to practice psychoanalysis in this state.  EACH PARTNER OF
   41  A  FOREIGN  LIMITED  LIABILITY PARTNERSHIP FORMED TO PROVIDE INTEGRATED,
   42  MULTIDISCIPLINARY MEDICAL AND PSYCHOLOGICAL SERVICES, AS  SUCH  SERVICES
   43  ARE  DEFINED  UNDER ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION LAW, (I)
   44  MUST BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION
   45  LAW TO PRACTICE HIS OR HER PROFESSION IN THIS  STATE,  (II)  SHALL  ONLY
   46  PRACTICE  HIS  OR  HER  PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE
   47  PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE  153  OF  THE
   48  EDUCATION  LAW, AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRAC-
   49  TICES WITHIN AN INTEGRATED,  MULTIDISCIPLINARY  ENTITY  ORGANIZED  UNDER
   50  THIS  SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF
   51  ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER  RESPEC-
   52  TIVE  PROFESSIONAL ENABLING LAW, PROVIDED THAT: (A) MEMBERS NOT LICENSED
   53  UNDER ARTICLE 131 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECT-
   54  LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
   55  OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B) MEMBERS LICENSED UNDER
   56  ARTICLE 131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE  CLIN-
       A. 801                              9
    1  ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
    2  UNDER  ARTICLE  153,  AND (C) INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY
    3  NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER  ARTICLE  153  OF  THE
    4  EDUCATION  LAW  TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER
    5  ARTICLE 153 OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY  OR  INDI-
    6  RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
    7    S  8. Subdivision 1 of section 2801 of the public health law, as sepa-
    8  rately amended by chapters 297 and 416 of the laws of 1983,  is  amended
    9  to read as follows:
   10    1.  "Hospital"  means a facility or institution engaged principally in
   11  providing services by or under the supervision of a physician or, in the
   12  case of a dental clinic or dental dispensary,  of  a  dentist,  for  the
   13  prevention,  diagnosis  or  treatment  of  human  disease, pain, injury,
   14  deformity or physical condition, including, but not limited to, a gener-
   15  al hospital, public health center, diagnostic center, treatment  center,
   16  dental  clinic,  dental  dispensary,  rehabilitation center other than a
   17  facility used solely for vocational rehabilitation, nursing home, tuber-
   18  culosis hospital, chronic disease hospital, maternity  hospital,  lying-
   19  in-asylum,  out-patient  department, out-patient lodge, dispensary and a
   20  laboratory or central service facility serving one or more  such  insti-
   21  tutions,  but  the term hospital shall not include an institution, sani-
   22  tarium or other facility engaged principally in providing  services  for
   23  the prevention, diagnosis or treatment of mental disability and which is
   24  subject  to the powers of visitation, examination, inspection and inves-
   25  tigation of the department of mental hygiene except for  those  distinct
   26  parts  of such a facility which provide hospital service. The provisions
   27  of this article shall not apply to a  facility  or  institution  engaged
   28  principally  in  providing  services  by or under the supervision of the
   29  bona fide members and adherents of a recognized  religious  organization
   30  whose teachings include reliance on spiritual means through prayer alone
   31  for  healing  in  the  practice of the religion of such organization and
   32  where services are provided in accordance with those teachings OR  TO  A
   33  BUSINESS  CORPORATION,  LIMITED  LIABILITY  CORPORATION  OR  PARTNERSHIP
   34  BETWEEN A MEDICAL DOCTOR AND A  DULY  LICENSED  HEALTHCARE  PROFESSIONAL
   35  UNDER TITLE VIII OF THE EDUCATION LAW.
   36    S  9. Subdivision 19 of section 6530 of the education law, as added by
   37  chapter 606 of the laws of 1991, is amended to read as follows:
   38    19. Permitting any person  to  share  in  the  fees  for  professional
   39  services,  other  than: a partner, employee, associate in a professional
   40  firm or corporation, professional subcontractor or consultant authorized
   41  to practice medicine, or a legally authorized trainee  practicing  under
   42  the  supervision  of a licensee OR A PSYCHOLOGIST PROVIDING PROFESSIONAL
   43  SERVICES IN THE SAME PRACTICE.    This  prohibition  shall  include  any
   44  arrangement  or  agreement  whereby  the  amount received in payment for
   45  furnishing space, facilities, equipment or personnel services used by  a
   46  licensee  constitutes  a  percentage of, or is otherwise dependent upon,
   47  the income or receipts of the licensee from  such  practice,  except  as
   48  otherwise  provided  by law with respect to a facility licensed pursuant
   49  to article twenty-eight of the public health law or article thirteen  of
   50  the mental hygiene law;
   51    S 10. This act shall take effect immediately.
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