Bill Text: NY S04291 | 2017-2018 | General Assembly | Introduced
Bill Title: Permits doctors of chiropractic to form limited liability companies.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S04291 Detail]
Download: New_York-2017-S04291-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4291 2017-2018 Regular Sessions IN SENATE February 8, 2017 ___________ Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the limited liability company law, the business corpo- ration law, the partnership law, the public health law and the educa- tion law, in relation to allowing doctors of chiropractic licensed under title VIII, article 132 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. 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. LBD09388-01-7S. 4291 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 and chiropractic services, as such services 54 are respectively defined under articles 131 and 132 of the education 55 law, (i) each member of such limited liability company must be licensed 56 pursuant to article 131 or article 132 of the education law to practiceS. 4291 3 1 his or her profession in this state, (ii) each member shall only prac- 2 tice his or her profession as specified in his or her respective profes- 3 sional enabling statute under article 131 or article 132 of the educa- 4 tion law, and (iii) the clinical integration of professional practices 5 within an integrated, multidisciplinary entity organized under this 6 section does not alter, expand or curtail the scope of practice of any 7 of the individuals licensed under the statute of his or her respective 8 professional enabling law, provided that: (a) the clinical judgment, 9 management and clinical decision-making of one or more article 131 10 providers in an integrated, multidisciplinary professional service 11 limited liability company shall be controlling, (b) members licensed 12 under article 132 of the education law, shall not, directly or indirect- 13 ly, interfere with the clinical judgment or legitimate clinical practice 14 of a professional licensed under article 131, and (c) individuals 15 licensed under article 131 may not order or direct a professional 16 licensed under article 132 of the education law to practice beyond the 17 scope of his or her license under article 132 of the education law, even 18 if supervised directly or indirectly by a professional licensed under 19 article 131. 20 § 2. Subdivision (b) of section 1207 of the limited liability company 21 law, as amended by chapter 475 of the laws of 2014, is amended to read 22 as follows: 23 (b) With respect to a professional service limited liability company 24 formed to provide medical services as such services are defined in arti- 25 cle 131 of the education law, each member of such limited liability 26 company must be licensed pursuant to article 131 of the education law to 27 practice medicine in this state. With respect to a professional service 28 limited liability company formed to provide dental services as such 29 services are defined in article 133 of the education law, each member of 30 such limited liability company must be licensed pursuant to article 133 31 of the education law to practice dentistry in this state. With respect 32 to a professional service limited liability company formed to provide 33 veterinary services as such services are defined in article 135 of the 34 education law, each member of such limited liability company must be 35 licensed pursuant to article 135 of the education law to practice veter- 36 inary medicine in this state. With respect to a professional service 37 limited liability company formed to provide professional engineering, 38 land surveying, architectural, landscape architectural and/or geological 39 services as such services are defined in article 145, article 147 and 40 article 148 of the education law, each member of such limited liability 41 company must be licensed pursuant to article 145, article 147 and/or 42 article 148 of the education law to practice one or more of such 43 professions in this state. With respect to a professional service limit- 44 ed liability company formed to provide licensed clinical social work 45 services as such services are defined in article 154 of the education 46 law, each member of such limited liability company shall be licensed 47 pursuant to article 154 of the education law to practice licensed clin- 48 ical social work in this state. With respect to a professional service 49 limited liability company formed to provide creative arts therapy 50 services as such services are defined in article 163 of the education 51 law, each member of such limited liability company must be licensed 52 pursuant to article 163 of the education law to practice creative arts 53 therapy in this state. With respect to a professional service limited 54 liability company formed to provide marriage and family therapy services 55 as such services are defined in article 163 of the education law, each 56 member of such limited liability company must be licensed pursuant toS. 4291 4 1 article 163 of the education law to practice marriage and family therapy 2 in this state. With respect to a professional service limited liability 3 company formed to provide mental health counseling services as such 4 services are defined in article 163 of the education law, each member of 5 such limited liability company must be licensed pursuant to article 163 6 of the education law to practice mental health counseling in this state. 7 With respect to a professional service limited liability company formed 8 to provide psychoanalysis services as such services are defined in arti- 9 cle 163 of the education law, each member of such limited liability 10 company must be licensed pursuant to article 163 of the education law to 11 practice psychoanalysis in this state. With respect to a professional 12 service limited liability company formed to provide applied behavior 13 analysis services as such services are defined in article 167 of the 14 education law, each member of such limited liability company must be 15 licensed or certified pursuant to article 167 of the education law to 16 practice applied behavior analysis in this state. Notwithstanding any 17 other provision of this section, with respect to a professional service 18 limited liability company formed to provide integrated, multidiscipli- 19 nary medical and chiropractic services, as such services are respective- 20 ly defined under articles 131 and 132 of the education law, (i) each 21 member of such limited liability company must be licensed pursuant to 22 article 131 or article 132 of the education law to practice his or her 23 profession in this state, (ii) each member shall only practice his or 24 her profession as specified in his or her respective professional enabl- 25 ing statute under article 131 or article 132 of the education law, and 26 (iii) the clinical integration of professional practices within an inte- 27 grated, multidisciplinary entity organized under this section does not 28 alter, expand or curtail the scope of practice of any of the individuals 29 licensed under the statute of his or her respective professional enabl- 30 ing law, provided that: (a) the clinical judgment, management and clin- 31 ical decision-making of one or more article 131 providers in an inte- 32 grated, multidisciplinary professional service limited liability company 33 shall be controlling, (b) members licensed under article 132 of the 34 education law, shall not, directly or indirectly, interfere with the 35 clinical judgment or legitimate clinical practice of a professional 36 licensed under article 131, and (c) individuals licensed under article 37 131 may not order or direct a professional licensed under article 132 of 38 the education law to practice beyond the scope of his or her license 39 under article 132 of the education law, even if supervised directly or 40 indirectly by a professional licensed under article 131. 41 § 3. Subdivision (a) of section 1301 of the limited liability company 42 law, as amended by chapter 475 of the laws of 2014, is amended to read 43 as follows: 44 (a) "Foreign professional service limited liability company" means a 45 professional service limited liability company, whether or not denomi- 46 nated as such, organized under the laws of a jurisdiction other than 47 this state, (i) each of whose members and managers, if any, is a profes- 48 sional authorized by law to render a professional service within this 49 state and who is or has been engaged in the practice of such profession 50 in such professional service limited liability company or a predecessor 51 entity, or will engage in the practice of such profession in the profes- 52 sional service limited liability company within thirty days of the date 53 such professional becomes a member, or each of whose members and manag- 54 ers, if any, is a professional at least one of such members is author- 55 ized by law to render a professional service within this state and who 56 is or has been engaged in the practice of such profession in suchS. 4291 5 1 professional service limited liability company or a predecessor entity, 2 or will engage in the practice of such profession in the professional 3 service limited liability company within thirty days of the date such 4 professional becomes a member, or (ii) authorized by, or holding a 5 license, certificate, registration or permit issued by the licensing 6 authority pursuant to, the education law to render a professional 7 service within this state; except that all members and managers, if any, 8 of a foreign professional service limited liability company that 9 provides health services in this state shall be licensed in this state. 10 With respect to a foreign professional service limited liability company 11 which provides veterinary services as such services are defined in arti- 12 cle 135 of the education law, each member of such foreign professional 13 service limited liability company shall be licensed pursuant to article 14 135 of the education law to practice veterinary medicine. With respect 15 to a foreign professional service limited liability company which 16 provides medical services as such services are defined in article 131 of 17 the education law, each member of such foreign professional service 18 limited liability company must be licensed pursuant to article 131 of 19 the education law to practice medicine in this state. With respect to a 20 foreign professional service limited liability company which provides 21 dental services as such services are defined in article 133 of the 22 education law, each member of such foreign professional service limited 23 liability company must be licensed pursuant to article 133 of the educa- 24 tion law to practice dentistry in this state. With respect to a foreign 25 professional service limited liability company which provides profes- 26 sional engineering, land surveying, geologic architectural and/or land- 27 scape architectural services as such services are defined in article 28 145, article 147 and article 148 of the education law, each member of 29 such foreign professional service limited liability company must be 30 licensed pursuant to article 145, article 147 and/or article 148 of the 31 education law to practice one or more of such professions in this state. 32 With respect to a foreign professional service limited liability company 33 which provides licensed clinical social work services as such services 34 are defined in article 154 of the education law, each member of such 35 foreign professional service limited liability company shall be licensed 36 pursuant to article 154 of the education law to practice clinical social 37 work in this state. With respect to a foreign professional service 38 limited liability company which provides creative arts therapy services 39 as such services are defined in article 163 of the education law, each 40 member of such foreign professional service limited liability company 41 must be licensed pursuant to article 163 of the education law to prac- 42 tice creative arts therapy in this state. With respect to a foreign 43 professional service limited liability company which provides marriage 44 and family therapy services as such services are defined in article 163 45 of the education law, each member of such foreign professional service 46 limited liability company must be licensed pursuant to article 163 of 47 the education law to practice marriage and family therapy in this state. 48 With respect to a foreign professional service limited liability company 49 which provides mental health counseling services as such services are 50 defined in article 163 of the education law, each member of such foreign 51 professional service limited liability company must be licensed pursuant 52 to article 163 of the education law to practice mental health counseling 53 in this state. With respect to a foreign professional service limited 54 liability company which provides psychoanalysis services as such 55 services are defined in article 163 of the education law, each member of 56 such foreign professional service limited liability company must beS. 4291 6 1 licensed pursuant to article 163 of the education law to practice 2 psychoanalysis in this state. With respect to a foreign professional 3 service limited liability company which provides applied behavior analy- 4 sis services as such services are defined in article 167 of the educa- 5 tion law, each member of such foreign professional service limited 6 liability company must be licensed or certified pursuant to article 167 7 of the education law to practice applied behavior analysis in this 8 state. With respect to a foreign professional service limited liability 9 company formed to provide integrated, multi-disciplinary medical and 10 chiropractic services, as such services are respectively defined under 11 article 131 and article 132 of the education law, (i) each member of 12 such limited liability company must be licensed pursuant to article 131 13 or article 132 of the education law to practice his or her profession in 14 this state, (ii) each member shall only practice his or her profession 15 as specified in his or her respective professional enabling statute 16 under article 131 or article 132 of the education law, and (iii) the 17 clinical integration of professional practices within an integrated, 18 multidisciplinary entity organized under this section does not alter, 19 expand or curtail the scope of practice of any of the individuals 20 licensed under the statute of his or her respective professional enabl- 21 ing law, provided that: (a) the clinical judgment, management and clin- 22 ical decision-making of one or more article 131 providers in an inte- 23 grated, multidisciplinary professional service limited liability company 24 shall be controlling, (b) members licensed under article 132 of the 25 education law, shall not, directly or indirectly, interfere with the 26 clinical judgment or legitimate clinical practice of a professional 27 licensed under article 131, and (c) individuals licensed under article 28 131 may not order or direct a professional licensed under article 132 of 29 the education law to practice beyond the scope of his or her license 30 under article 132 of the education law, even if supervised directly or 31 indirectly by a professional licensed under article 131. 32 § 4. Paragraph (a) of section 1503 of the business corporation law, as 33 amended by chapter 475 of the laws of 2014, is amended to read as 34 follows: 35 (a) Notwithstanding any other provision of law, (i) one or more indi- 36 viduals duly authorized by law to render the same professional service 37 within the state may organize, or cause to be organized, a professional 38 service corporation for pecuniary profit under this article for the 39 purpose of rendering the same professional service, except that one or 40 more individuals duly authorized by law to practice professional engi- 41 neering, architecture, landscape architecture, land surveying or geology 42 within the state may organize, or cause to be organized, a professional 43 service corporation or a design professional service corporation for 44 pecuniary profit under this article for the purpose of rendering such 45 professional services as such individuals are authorized to practice, 46 and, (ii) one or more individuals duly licensed to practice medicine and 47 one or more chiropractors licensed under article 132 of the education 48 law, who may be board certified or qualified by his or her respective 49 professional specialty boards, may organize, or cause to be organized, 50 for business purposes only, a multidisciplinary professional service 51 corporation formed for pecuniary profit under this article for the 52 purpose of rendering integrated and non-integrated professional services 53 within such a corporation as such individuals are authorized to practice 54 individually in his or her respective professions, provided that the 55 clinical integration of professional practices within an entity organ- 56 ized under this section does not alter, expand or curtail the scope ofS. 4291 7 1 practice of any of the individuals licensed under the statute of his or 2 her respective professional enabling law; that the clinical judgment, 3 management and clinical decision-making of one or more article 131 4 providers in an integrated, multidisciplinary practice shall be control- 5 ling; that members licensed under article 132 of the education law, 6 shall not, directly or indirectly, interfere with the clinical judgment 7 or legitimate clinical practice of a professional licensed under article 8 131; and that individuals licensed under article 131 may not order or 9 direct a professional licensed under article 132 of the education law to 10 practice beyond the scope of his or her license under article 132 of the 11 education law in a professional service limited liability company, even 12 if supervised directly or indirectly by a professional licensed under 13 article 131. 14 § 5. Subdivision (q) of section 121-1500 of the partnership law, as 15 amended by chapter 475 of the laws of 2014, is amended to read as 16 follows: 17 (q) Each partner of a registered limited liability partnership formed 18 to provide medical services in this state must be licensed pursuant to 19 article 131 of the education law to practice medicine in this state and 20 each partner of a registered limited liability partnership formed to 21 provide dental services in this state must be licensed pursuant to arti- 22 cle 133 of the education law to practice dentistry in this state. Each 23 partner of a registered limited liability partnership formed to provide 24 veterinary services in this state must be licensed pursuant to article 25 135 of the education law to practice veterinary medicine in this state. 26 Each partner of a registered limited liability partnership formed to 27 provide professional engineering, land surveying, geological services, 28 architectural and/or landscape architectural services in this state must 29 be licensed pursuant to article 145, article 147 and/or article 148 of 30 the education law to practice one or more of such professions in this 31 state. Each partner of a registered limited liability partnership formed 32 to provide licensed clinical social work services in this state must be 33 licensed pursuant to article 154 of the education law to practice clin- 34 ical social work in this state. Each partner of a registered limited 35 liability partnership formed to provide creative arts therapy services 36 in this state must be licensed pursuant to article 163 of the education 37 law to practice creative arts therapy in this state. Each partner of a 38 registered limited liability partnership formed to provide marriage and 39 family therapy services in this state must be licensed pursuant to arti- 40 cle 163 of the education law to practice marriage and family therapy in 41 this state. Each partner of a registered limited liability partnership 42 formed to provide mental health counseling services in this state must 43 be licensed pursuant to article 163 of the education law to practice 44 mental health counseling in this state. Each partner of a registered 45 limited liability partnership formed to provide psychoanalysis services 46 in this state must be licensed pursuant to article 163 of the education 47 law to practice psychoanalysis in this state. Each partner of a regis- 48 tered limited liability partnership formed to provide applied behavior 49 analysis service in this state must be licensed or certified pursuant to 50 article 167 of the education law to practice applied behavior analysis 51 in this state. Each partner of a registered limited liability partner- 52 ship formed to provide integrated, multidisciplinary medical and chirop- 53 ractic services, as such services are respectively defined under article 54 131 and article 132 of the education law, (i) must be licensed pursuant 55 to article 131 or article 132 of the education law to practice his or 56 her profession in this state, (ii) shall only practice his or herS. 4291 8 1 profession as specified in his or her respective professional enabling 2 statute under article 131 or article 132 of the education law, and (iii) 3 the clinical integration of professional practices within an integrated, 4 multi-disciplinary entity organized under this section does not alter, 5 expand or curtail the scope of practice of any of the individuals 6 licensed under the statute of his or her respective professional enabl- 7 ing law, provided that: (a) the clinical judgment, management and clin- 8 ical decision-making of one or more article 131 providers in an inte- 9 grated, multidisciplinary professional service limited liability company 10 shall be controlling, (b) members licensed under article 132 of the 11 education law, shall not, directly or indirectly, interfere with the 12 clinical judgment or legitimate clinical practice of a professional 13 licensed under article 131, and (c) individuals licensed under article 14 131 may not order or direct a professional licensed under article 132 of 15 the education law to practice beyond the scope of his or her license 16 under article 132 of the education law, even if supervised directly or 17 indirectly by a professional licensed under article 131. 18 § 6. Subdivision (q) of section 121-1502 of the partnership law, as 19 amended by chapter 475 of the laws of 2014, is amended to read as 20 follows: 21 (q) Each partner of a foreign limited liability partnership which 22 provides medical services in this state must be licensed pursuant to 23 article 131 of the education law to practice medicine in the state and 24 each partner of a foreign limited liability partnership which provides 25 dental services in the state must be licensed pursuant to article 133 of 26 the education law to practice dentistry in this state. Each partner of a 27 foreign limited liability partnership which provides veterinary service 28 in the state shall be licensed pursuant to article 135 of the education 29 law to practice veterinary medicine in this state. Each partner of a 30 foreign limited liability partnership which provides professional engi- 31 neering, land surveying, geological services, architectural and/or land- 32 scape architectural services in this state must be licensed pursuant to 33 article 145, article 147 and/or article 148 of the education law to 34 practice one or more of such professions. Each partner of a foreign 35 limited liability partnership which provides licensed clinical social 36 work services in this state must be licensed pursuant to article 154 of 37 the education law to practice licensed clinical social work in this 38 state. Each partner of a foreign limited liability partnership which 39 provides creative arts therapy services in this state must be licensed 40 pursuant to article 163 of the education law to practice creative arts 41 therapy in this state. Each partner of a foreign limited liability part- 42 nership which provides marriage and family therapy services in this 43 state must be licensed pursuant to article 163 of the education law to 44 practice marriage and family therapy in this state. Each partner of a 45 foreign limited liability partnership which provides mental health coun- 46 seling services in this state must be licensed pursuant to article 163 47 of the education law to practice mental health counseling in this state. 48 Each partner of a foreign limited liability partnership which provides 49 psychoanalysis services in this state must be licensed pursuant to arti- 50 cle 163 of the education law to practice psychoanalysis in this state. 51 Each partner of a foreign limited liability partnership which provides 52 applied behavior analysis services in this state must be licensed or 53 certified pursuant to article 167 of the education law to practice 54 applied behavior analysis in this state. Each partner of a foreign 55 limited liability partnership formed to provide integrated, multidisci- 56 plinary medical and chiropractic services, as such services are definedS. 4291 9 1 under article 131 or article 132 of the education law, (i) must be 2 licensed pursuant to article 131 or article 132 of the education law to 3 practice his or her profession in this state, (ii) shall only practice 4 his or her profession as specified in his or her respective professional 5 enabling statute under article 131 or article 132 of the education law, 6 and (iii) the clinical integration of professional practices within an 7 integrated, multidisciplinary entity organized under this section does 8 not alter, expand or curtail the scope of practice of any of the indi- 9 viduals licensed under the statute of his or her respective professional 10 enabling law, provided that: (a) the clinical judgment, management and 11 clinical decision-making of one or more article 131 providers in an 12 integrated, multidisciplinary professional service limited liability 13 company shall be controlling, (b) members not licensed under article 131 14 of the education law, shall not, directly or indirectly, interfere with 15 the clinical judgment or legitimate clinical practice of a professional 16 licensed under article 131, and (c) individuals licensed under article 17 131 may not order or direct a professional licensed under article 132 of 18 the education law to practice beyond the scope of his or her license 19 under article 132 of the education law, even if supervised directly or 20 indirectly by a professional licensed under article 131. 21 § 7. Subdivision 1 of section 2801 of the public health law, as 22 amended by chapter 397 of the laws of 2016, is amended to read as 23 follows: 24 1. "Hospital" means a facility or institution engaged principally in 25 providing services by or under the supervision of a physician or, in the 26 case of a dental clinic or dental dispensary, of a dentist, or, in the 27 case of a midwifery birth center, of a midwife, for the prevention, 28 diagnosis or treatment of human disease, pain, injury, deformity or 29 physical condition, including, but not limited to, a general hospital, 30 public health center, diagnostic center, treatment center, dental clin- 31 ic, dental dispensary, rehabilitation center other than a facility used 32 solely for vocational rehabilitation, nursing home, tuberculosis hospi- 33 tal, chronic disease hospital, maternity hospital, midwifery birth 34 center, lying-in-asylum, out-patient department, out-patient lodge, 35 dispensary and a laboratory or central service facility serving one or 36 more such institutions, but the term hospital shall not include an 37 institution, sanitarium or other facility engaged principally in provid- 38 ing services for the prevention, diagnosis or treatment of mental disa- 39 bility and which is subject to the powers of visitation, examination, 40 inspection and investigation of the department of mental hygiene except 41 for those distinct parts of such a facility which provide hospital 42 service. The provisions of this article shall not apply to a facility or 43 institution engaged principally in providing services by or under the 44 supervision of the bona fide members and adherents of a recognized reli- 45 gious organization whose teachings include reliance on spiritual means 46 through prayer alone for healing in the practice of the religion of such 47 organization and where services are provided in accordance with those 48 teachings or to a business corporation, limited liability corporation or 49 partnership between a medical doctor and a duly licensed title VIII 50 healthcare professional. 51 § 8. Subdivision 19 of section 6530 of the education law, as added by 52 chapter 606 of the laws of 1991, is amended to read as follows: 53 19. Permitting any person to share in the fees for professional 54 services, other than: a partner, employee, associate in a professional 55 firm or corporation, professional subcontractor or consultant authorized 56 to practice medicine, or a legally authorized trainee practicing underS. 4291 10 1 the supervision of a licensee or a chiropractor providing professional 2 services in the same practice. This prohibition shall include any 3 arrangement or agreement whereby the amount received in payment for 4 furnishing space, facilities, equipment or personnel services used by a 5 licensee constitutes a percentage of, or is otherwise dependent upon, 6 the income or receipts of the licensee from such practice, except as 7 otherwise provided by law with respect to a facility licensed pursuant 8 to article twenty-eight of the public health law or article thirteen of 9 the mental hygiene law; 10 § 9. Section 6509-a of the education law, as amended by chapter 555 of 11 the laws of 1993, is amended to read as follows: 12 § 6509-a. Additional definition of professional misconduct; limited 13 application. Notwithstanding any inconsistent provision of this article 14 or of any other provision of law to the contrary, the license or regis- 15 tration of a person subject to the provisions of articles one hundred 16 thirty-two, one hundred thirty-three, one hundred thirty-six, one 17 hundred thirty-seven, one hundred thirty-nine, one hundred forty-one, 18 one hundred forty-three, one hundred forty-four, one hundred fifty-six, 19 one hundred fifty-nine and one hundred sixty-four of this chapter may be 20 revoked, suspended or annulled or such person may be subject to any 21 other penalty provided in section sixty-five hundred eleven of this 22 article in accordance with the provisions and procedure of this article 23 for the following: 24 That any person subject to the above enumerated articles, has directly 25 or indirectly requested, received or participated in the division, 26 transference, assignment, rebate, splitting or refunding of a fee for, 27 or has directly requested, received or profited by means of a credit or 28 other valuable consideration as a commission, discount or gratuity in 29 connection with the furnishing of professional care, or service, includ- 30 ing x-ray examination and treatment, or for or in connection with the 31 sale, rental, supplying or furnishing of clinical laboratory services or 32 supplies, x-ray laboratory services or supplies, inhalation therapy 33 service or equipment, ambulance service, hospital or medical supplies, 34 physiotherapy or other therapeutic service or equipment, artificial 35 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 36 optical appliances, supplies or equipment, devices for aid of hearing, 37 drugs, medication or medical supplies or any other goods, services or 38 supplies prescribed for medical diagnosis, care or treatment under this 39 chapter, except payment, not to exceed thirty-three and one-third per 40 centum of any fee received for x-ray examination, diagnosis or treat- 41 ment, to any hospital furnishing facilities for such examination, diag- 42 nosis or treatment. Nothing contained in this section shall prohibit 43 such persons from practicing as partners, in groups or as a professional 44 corporation or as a university faculty practice corporation nor from 45 pooling fees and moneys received, either by the partnerships, profes- 46 sional corporations, university faculty practice corporations or groups 47 by the individual members thereof, for professional services furnished 48 by any individual professional member, or employee of such partnership, 49 corporation or group, nor shall the professionals constituting the part- 50 nerships, corporations or groups be prohibited from sharing, dividing or 51 apportioning the fees and moneys received by them or by the partnership, 52 corporation or group in accordance with a partnership or other agree- 53 ment; provided that no such practice as partners, corporations or in 54 groups or pooling of fees or moneys received or shared, division or 55 apportionment of fees shall be permitted with respect to care and treat- 56 ment under the workers' compensation law except as expressly authorizedS. 4291 11 1 by the workers' compensation law. Nothing contained in this section, 2 shall prohibit a multidisciplinary medical and chiropractic practice 3 formed pursuant to subdivision (a) or (b) of section twelve hundred 4 three of the limited liability company law, subdivision (a) of section 5 thirteen hundred one of the limited liability company law, paragraph (a) 6 of section fifteen hundred three of the business corporation law, subdi- 7 vision (q) of section 121-1500 of the partnership law, or subdivision 8 (q) of section 121-1502 of the partnership law from pooling fees or 9 monies received. Nothing contained in this chapter shall prohibit a 10 medical or dental expense indemnity corporation pursuant to its contract 11 with the subscriber from prorationing a medical or dental expense indem- 12 nity allowance among two or more professionals in proportion to the 13 services rendered by each such professional at the request of the 14 subscriber, provided that prior to payment thereof such professionals 15 shall submit both to the medical or dental expense indemnity corporation 16 and to the subscriber statements itemizing the services rendered by each 17 such professional and the charges therefor. 18 § 10. Section 6531 of the education law, as amended by chapter 555 of 19 the laws of 1993, is amended to read as follows: 20 § 6531. Additional definition of professional misconduct, limited 21 application. Notwithstanding any inconsistent provision of this article 22 or any other provisions of law to the contrary, the license or registra- 23 tion of a person subject to the provisions of this article and article 24 one hundred thirty-one-B of this chapter may be revoked, suspended, or 25 annulled or such person may be subject to any other penalty provided in 26 section two hundred thirty-a of the public health law in accordance with 27 the provisions and procedures of this article for the following: 28 That any person subject to the above-enumerated articles has directly 29 or indirectly requested, received or participated in the division, 30 transference, assignment, rebate, splitting, or refunding of a fee for, 31 or has directly requested, received or profited by means of a credit or 32 other valuable consideration as a commission, discount or gratuity, in 33 connection with the furnishing of professional care or service, includ- 34 ing x-ray examination and treatment, or for or in connection with the 35 sale, rental, supplying, or furnishing of clinical laboratory services 36 or supplies, x-ray laboratory services or supplies, inhalation therapy 37 service or equipment, ambulance service, hospital or medical supplies, 38 physiotherapy or other therapeutic service or equipment, artificial 39 limbs, teeth or eyes, orthopedic or surgical appliances or supplies, 40 optical appliances, supplies, or equipment, devices for aid of hearing, 41 drugs, medication, or medical supplies, or any other goods, services, or 42 supplies prescribed for medical diagnosis, care, or treatment under this 43 chapter, except payment, not to exceed thirty-three and one-third 44 percent of any fee received for x-ray examination, diagnosis, or treat- 45 ment, to any hospital furnishing facilities for such examination, diag- 46 nosis, or treatment. Nothing contained in this section shall prohibit 47 such persons from practicing as partners, in groups or as a professional 48 corporation or as a university faculty practice corporation, nor from 49 pooling fees and moneys received, either by the partnerships, profes- 50 sional corporations, or university faculty practice corporations or 51 groups by the individual members thereof, for professional services 52 furnished by an individual professional member, or employee of such 53 partnership, corporation, or group, nor shall the professionals consti- 54 tuting the partnerships, corporations or groups be prohibited from shar- 55 ing, dividing, or apportioning the fees and moneys received by them or 56 by the partnership, corporation, or group in accordance with a partner-S. 4291 12 1 ship or other agreement; provided that no such practice as partners, 2 corporations, or groups, or pooling of fees or moneys received or 3 shared, division or apportionment of fees shall be permitted with 4 respect to and treatment under the workers' compensation law. Nothing 5 contained in this section, shall prohibit a multidisciplinary medical 6 and chiropractic practice formed pursuant to subdivision (a) or (b) of 7 section twelve hundred three of the limited liability company law, 8 subdivision (a) of section thirteen hundred one of the limited liability 9 company law, paragraph (a) of section fifteen hundred three of the busi- 10 ness corporation law, subdivision (q) of section 121-1500 of the part- 11 nership law, or subdivision (q) of section 121-1502 of the partnership 12 law from pooling fees or monies received. Nothing contained in this 13 chapter shall prohibit a corporation licensed pursuant to article 14 forty-three of the insurance law pursuant to its contract with the 15 subscribed from prorationing a medical or dental expenses indemnity 16 allowance among two or more professionals in proportion to the services 17 rendered by each such professional at the request of the subscriber, 18 provided that prior to payment thereof such professionals shall submit 19 both to the corporation licensed pursuant to article forty-three of the 20 insurance law and to the subscriber statements itemizing the services 21 rendered by each such professional and the charges therefor. 22 § 11. This act shall take effect on the thirtieth day after it shall 23 have became a law.
