NY State Senate Bill 2017-S4125

Senate Bill S4125

2017-2018 Legislative Session

Authorizes certain licensed health service professionals to form limited liability companies

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to corporations, authorities and commissions
Feb 03, 2017	referred to corporations, authorities and commissions

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2017-S4125 (ACTIVE) - Details

See Assembly Version of this Bill:: A1943
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Limited Liability Company Law
Laws Affected:: Amd §§1203, 1207 & 1301, Lim Lil L; amd §1503, BC L; amd §§121-1500 & 121-1502, Partn L; amd §§6509-a, 6530 & 6531, Ed L; amd §2801, Pub Health L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5862, A8153
2019-2020: A6377
2021-2022: A3526
2023-2024: A715

2017-S4125 (ACTIVE) - Summary

Authorizes certain licensed health service professionals to form limited liability companies.

2017-S4125 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4125

 TITLE OF BILL :

An act to amend the limited liability company law, the business
corporation law, the partnership law, the education law and the public
health law, in relation to authorizing certain licensed health
services professionals to form limited liability companies

 PURPOSE :

To allow various licensed allied professionals to form
multidisciplinary partnerships limited liability companies and
professional service corporation.

 SUMMARY OF PROVISIONS :

Section 1-3 would amend section of the limited liability company law
to allow the following licensed professionals to form
multidisciplinary professional; service limited liability companies:
physicians, chiropractors, pharmacists, midwives, podiatrist,
optometrist, ophthalmic dispensers, psychologists, social workers,
massage therapists, occupational therapist and nurse practitioners.

Section 4 would amend the business corporation law to allow the
aforementioned licensed health professionals to form professional

service corporations.

Sections 5 and 6 would amend the partnership law to allow licensed
health professionals to form limited liability partnerships.

Sections 7-9 would amend the limited liability company law to allow
licensed health professionals to form professional service limited
liability companies.

Section 10 would amend the business corporation law to allow licensed
health professionals to form professional service corporations.

Sections 11 and 12 would amend the partnership law to allow licensed
health professionals to form limited liability partnerships.

Section 13 would amend the section 6509-a of the education law to
allow for the pooling of fees or monies by multidisciplinary services
practice form under the partnership, business corporation or LLC laws.

Section 14 would amend section 6530 of the education law to allow
licensed health professionals to share fees with a physician for
professionals services rendered as part of a multidisciplinary
services practice.

Section 15 would amend section 6531 of the education law to allow for
the pooling of fees or monies by multidisciplinary services practice
formed under the partnership, business corporation or LLC laws.

Section 16 would amend section 2801 of the public health law to ensure
that a multidisciplinary services practice does not fall under the
definition of hospital.

 JUSTIFICATION :

The healthcare field is changing rapidly. Collaboration and the
ability to offer multidisciplinary services are the present and
future. The advent of patient-centered medical homes, health homes and
accountable care organizations all promise to shift health care
delivery to more collaborative models. As such, New York State's
prohibitions on the formation of limited liability companies,
partnerships and professional service corporations by allied health
professionals are outdated.

This bill seeks to further bring collaboration among licensed health
professionals into the 21st century by allowing various professionals
to integrate their services under one roof as a partnership LLC or
professional service corporation. In permitting such organizational
entities to be formed by licensed professionals, it broadens the array
of collaborative option available to health care practitioners looking
to offer multidisciplinary services. The bill does not change the
existing rules surrounding the organizational structures addressed
through the legislation. It recognizes that the allied health
professions should be treated equally, rather disparately through a
piecemeal approach to allowing for a broader array of organizational
formation.

Finally, the bill would prohibit the alteration, expansion or
curtailing of the scope of practice of any licensed professional
providing services through one of the newly formed organizations and
provide that no member or partner shall interfere with the clinical
judgment or practice of another member. These protections are critical
to guarding against the exercise of undue influence over another
licensed professional.

 LEGISLATIVE HISTORY :

2015-16 S.5862/A.8153A.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
30 days after becoming law.

2017-S4125 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4125
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2017
                                ___________
 
 Introduced  by  Sens.  LAVALLE, BOYLE -- 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  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:
 
   Section  1.  Subdivision  (a) of section 1203 of the limited liability
 company law, as amended by chapter 475 of the laws of 2014,  is  amended
 to read as follows:
   (a)  Notwithstanding  the education law or any other provision of law,
 one or more professionals each of whom is authorized by law to render  a
 professional  service within the state, or one or more professionals, at
 least one of whom is authorized by law to render a professional  service
 within  the  state,  may  form,  or  cause  to be formed, a professional
 service limited liability company for pecuniary profit under this  arti-
 cle for the purpose of rendering the professional service or services as
 such professionals are authorized to practice. With respect to a profes-
 sional  service  limited  liability  company  formed  to provide medical
 services as such services are defined in article 131  of  the  education
 law,  each  member  of  such  limited liability company must be licensed
 pursuant to article 131 of the education law  to  practice  medicine  in
 this  state.    NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, ANY
 PERSON LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE
 MEDICINE AND ANY PERSON LICENSED PURSUANT TO  ARTICLES  132,  137,  140,
 141,  143, 144, 153, 154, 155 OR 156 OR SUBDIVISION 3 OF SECTION 6902 OF
 ARTICLE 139 OF THE EDUCATION LAW MAY FORM, OR  CAUSE  TO  BE  FORMED,  A
 PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY TO PROVIDE MULTIDISCIPLI-
 NARY  SERVICES  WITH  ONE OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD06073-01-7

 S. 4125                             2
 
 FOLLOWING CONDITIONS: (I) EACH MEMBER OF SUCH LIMITED LIABILITY  COMPANY
 MUST  BE  LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW TO PRAC-
 TICE HIS OR HER PROFESSION IN THIS STATE; (II) EACH  MEMBER  SHALL  ONLY
 PRACTICE  HIS  OR  HER  PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE
 PROFESSIONAL ENABLING STATUE UNDER TITLE EIGHT OF THE EDUCATION LAW; AND
 (III) ANY CLINICAL INTEGRATION  OF  PROFESSIONAL  PRACTICES  UNDER  THIS
 SECTION  SHALL NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
 OF THE MEMBERS; PROVIDED FURTHER THAT: (A) NO MEMBER SHALL, DIRECTLY  OR
 INDIRECTLY,  INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL
 PRACTICE OF ANOTHER MEMBER; AND (B) NO  MEMBER  SHALL  ORDER  OR  DIRECT
 ANOTHER  MEMBER TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE. With
 respect to a professional service limited liability  company  formed  to
 provide  dental  services as such services are defined in article 133 of
 the education law, each member of such limited liability company must be
 licensed pursuant to article  133  of  the  education  law  to  practice
 dentistry  in this state. With respect to a professional service limited
 liability company formed to provide veterinary services as such services
 are defined in article 135 of the education law,  each  member  of  such
 limited  liability  company  must be licensed pursuant to article 135 of
 the education law to practice veterinary medicine in  this  state.  With
 respect  to  a  professional service limited liability company formed to
 provide professional engineering, land surveying,  architectural,  land-
 scape  architectural  and/or  geological  services  as such services are
 defined in article 145, article 147 and article  148  of  the  education
 law,  each  member  of  such  limited liability company must be licensed
 pursuant to article 145, article 147 and/or article 148 of the education
 law to practice one or more of such professions  in  this  state.  [With
 respect  to  a  professional service limited liability company formed to
 provide licensed clinical social work  services  as  such  services  are
 defined in article 154 of the education law, each member of such limited
 liability  company  shall  be  licensed  pursuant  to article 154 of the
 education law to practice licensed clinical social work in this  state.]
 With  respect to a professional service limited liability company formed
 to provide creative arts therapy services as such services  are  defined
 in article 163 of the education law, each member of such limited liabil-
 ity  company  must  be licensed pursuant to article 163 of the education
 law to practice creative arts therapy in this state. With respect  to  a
 professional   service  limited  liability  company  formed  to  provide
 marriage and family therapy services as such  services  are  defined  in
 article  163 of the education law, each member of such limited liability
 company must be licensed pursuant to article 163 of the education law to
 practice marriage and family therapy in this state. With  respect  to  a
 professional  service limited liability company formed to provide mental
 health counseling services as such services are defined in  article  163
 of the education law, each member of such limited liability company must
 be  licensed  pursuant  to  article 163 of the education law to practice
 mental health counseling in this state. With respect to  a  professional
 service  limited  liability  company  formed  to  provide psychoanalysis
 services as such services are defined in article 163  of  the  education
 law,  each  member  of  such  limited liability company must be licensed
 pursuant to article 163 of the education law to practice  psychoanalysis
 in  this state. With respect to a professional service limited liability
 company formed to provide applied behavior  analysis  services  as  such
 services are defined in article 167 of the education law, each member of
 such limited liability company must be licensed or certified pursuant to
 article  167  of the education law to practice applied behavior analysis

 S. 4125                             3
 
 in  this  state.  In  addition  to  engaging  in  such   profession   or
 professions, a professional service limited liability company may engage
 in  any  other  business  or  activities as to which a limited liability
 company  may  be  formed  under section two hundred one of this chapter.
 Notwithstanding any other provision  of  this  section,  a  professional
 service  limited  liability  company  (i) authorized to practice law may
 only engage in another profession or  business  or  activities  or  (ii)
 which  is  engaged in a profession or other business or activities other
 than law may only engage in the practice  of  law,  to  the  extent  not
 prohibited  by  any  other  law of this state or any rule adopted by the
 appropriate appellate division of the supreme  court  or  the  court  of
 appeals.
   §  2. Subdivision (b) of section 1207 of the limited liability company
 law, as amended by chapter 475 of the laws of 2014, is amended  to  read
 as follows:
   (b)  With  respect to a professional service limited liability company
 formed to provide medical services as such services are defined in arti-
 cle 131 of the education law, each  member  of  such  limited  liability
 company must be licensed pursuant to article 131 of the education law to
 practice medicine in this state.  NOTWITHSTANDING ANY OTHER PROVISION OF
 THIS  SECTION, ANY PERSON LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCA-
 TION LAW TO PRACTICE MEDICINE AND ANY PERSON LICENSED PURSUANT TO  ARTI-
 CLES 132, 137, 140, 141, 143, 144, 153, 154, 155 OR 156 OR SUBDIVISION 3
 OF  SECTION  6902 OF ARTICLE 139 OF THE EDUCATION LAW MAY FORM, OR CAUSE
 TO BE FORMED,  A  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY  TO
 PROVIDE  MULTIDISCIPLINARY  SERVICES  WITH  ONE OR MORE LICENSED PROFES-
 SIONALS, SUBJECT TO THE FOLLOWING CONDITIONS: (I) EACH  MEMBER  OF  SUCH
 LIMITED  LIABILITY  COMPANY  MUST BE LICENSED PURSUANT TO TITLE EIGHT OF
 THE EDUCATION LAW TO PRACTICE HIS OR HER PROFESSION IN THIS STATE;  (II)
 EACH  MEMBER  SHALL  ONLY PRACTICE HIS OR HER PROFESSION AS SPECIFIED IN
 HIS OR HER RESPECTIVE PROFESSIONAL ENABLING STATUTE UNDER TITLE EIGHT OR
 THE EDUCATION LAW; AND (III) ANY CLINICAL  INTEGRATION  OF  PROFESSIONAL
 PRACTICES  UNDER  THIS  SECTION  SHALL  NOT ALTER, EXPAND OR CURTAIL THE
 SCOPE OF PRACTICE OF ANY OF THE MEMBERS; PROVIDED FURTHER THAT:  (A)  NO
 MEMBER SHALL, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGE-
 MENT  OR  LEGITIMATE  CLINICAL  PRACTICE  OF  ANOTHER MEMBER; AND (B) NO
 MEMBER SHALL ORDER OR DIRECT ANOTHER MEMBER TO PRACTICE BEYOND THE SCOPE
 OF HIS OR HER LICENSE. With respect to a  professional  service  limited
 liability company formed to provide dental services as such services are
 defined in article 133 of the education law, each member of such limited
 liability company must be licensed pursuant to article 133 of the educa-
 tion  law to practice dentistry in this state. With respect to a profes-
 sional service limited liability company formed  to  provide  veterinary
 services  as  such  services are defined in article 135 of the education
 law, each member of such limited  liability  company  must  be  licensed
 pursuant  to  article  135  of  the education law to practice veterinary
 medicine in this state. With respect to a professional  service  limited
 liability  company  formed  to  provide  professional  engineering, land
 surveying,  architectural,  landscape  architectural  and/or  geological
 services  as  such  services are defined in article 145, article 147 and
 article 148 of the education law, each member of such limited  liability
 company  must  be  licensed  pursuant to article 145, article 147 and/or
 article 148 of the education  law  to  practice  one  or  more  of  such
 professions  in  this  state.  [With  respect  to a professional service
 limited liability company formed to  provide  licensed  clinical  social
 work  services as such services are defined in article 154 of the educa-

 S. 4125                             4

 tion law, each  member  of  such  limited  liability  company  shall  be
 licensed  pursuant  to  article  154  of  the  education law to practice
 licensed clinical social work in this state.] With respect to a  profes-
 sional service limited liability company formed to provide creative arts
 therapy  services  as  such  services  are defined in article 163 of the
 education law, each member of such limited  liability  company  must  be
 licensed  pursuant to article 163 of the education law to practice crea-
 tive arts therapy in this state. With respect to a professional  service
 limited  liability company formed to provide marriage and family therapy
 services as such services are defined in article 163  of  the  education
 law,  each  member  of  such  limited liability company must be licensed
 pursuant to article 163 of the education law to  practice  marriage  and
 family  therapy  in  this  state. With respect to a professional service
 limited liability company formed to  provide  mental  health  counseling
 services  as  such  services are defined in article 163 of the education
 law, each member of such limited  liability  company  must  be  licensed
 pursuant  to  article 163 of the education law to practice mental health
 counseling in this state. With respect to a professional service limited
 liability company formed to  provide  psychoanalysis  services  as  such
 services are defined in article 163 of the education law, each member of
 such  limited liability company must be licensed pursuant to article 163
 of the education law to practice  psychoanalysis  in  this  state.  With
 respect  to  a  professional service limited liability company formed to
 provide applied behavior analysis services as such services are  defined
 in article 167 of the education law, each member of such limited liabil-
 ity company must be licensed or certified pursuant to article 167 of the
 education law to practice applied behavior analysis in this state.
   §  3. Subdivision (a) of section 1301 of the limited liability company
 law, as amended by chapter 475 of the laws of 2014, is amended  to  read
 as follows:
   (a)  "Foreign  professional service limited liability company" means a
 professional service limited liability company, whether or  not  denomi-
 nated  as  such,  organized  under the laws of a jurisdiction other than
 this state, (i) each of whose members and managers, if any, is a profes-
 sional authorized by law to render a professional  service  within  this
 state  and who is or has been engaged in the practice of such profession
 in such professional service limited liability company or a  predecessor
 entity, or will engage in the practice of such profession in the profes-
 sional  service limited liability company within thirty days of the date
 such professional becomes a member, or each of whose members and  manag-
 ers,  if  any, is a professional at least one of such members is author-
 ized by law to render a professional service within this state  and  who
 is  or  has  been  engaged  in  the  practice of such profession in such
 professional service limited liability company or a predecessor  entity,
 or  will  engage  in the practice of such profession in the professional
 service limited liability company within thirty days of  the  date  such
 professional  becomes  a  member,  or  (ii)  authorized by, or holding a
 license, certificate, registration or permit  issued  by  the  licensing
 authority  pursuant  to,  the  education  law  to  render a professional
 service within this state; except that all members and managers, if any,
 of  a  foreign  professional  service  limited  liability  company  that
 provides  health services in this state shall be licensed in this state.
 With respect to a foreign professional service limited liability company
 which provides veterinary services as such services are defined in arti-
 cle 135 of the education law, each member of such  foreign  professional
 service  limited liability company shall be licensed pursuant to article

 S. 4125                             5
 
 135 of the education law to practice veterinary medicine.  With  respect
 to  a  foreign  professional  service  limited  liability  company which
 provides medical services as such services are defined in article 131 of
 the  education  law,  each  member  of such foreign professional service
 limited liability company must be licensed pursuant to  article  131  of
 the  education  law to practice medicine in this state.  NOTWITHSTANDING
 ANY OTHER PROVISION OF THIS SECTION, ANY  PERSON  LICENSED  PURSUANT  TO
 ARTICLE  131  OF  THE  EDUCATION LAW TO PRACTICE MEDICINE AND ANY PERSON
 LICENSED PURSUANT TO ARTICLES 132, 137, 140, 141, 143,  144,  153,  154,
 155 OR 156 OR SUBDIVISION 3 OF SECTION 6902 OF ARTICLE 139 OF THE EDUCA-
 TION LAW MAY FORM, OR CAUSE TO BE FORMED, A FOREIGN PROFESSIONAL SERVICE
 LIMITED LIABILITY COMPANY TO PROVIDE MULTIDISCIPLINARY SERVICES WITH ONE
 OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE FOLLOWING CONDITIONS: (I)
 EACH  MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT
 TO TITLE EIGHT OF THE EDUCATION LAW TO PRACTICE HIS OR HER PROFESSION IN
 THIS STATE; (II) EACH MEMBER SHALL ONLY PRACTICE HIS OR  HER  PROFESSION
 AS  SPECIFIED  IN  HIS  OR  HER RESPECTIVE PROFESSIONAL ENABLING STATUTE
 UNDER TITLE EIGHT OF THE EDUCATION LAW; AND  (III)  ANY  CLINICAL  INTE-
 GRATION  OF  PROFESSIONAL  PRACTICES UNDER THIS SECTION SHALL NOT ALTER,
 EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF THE MEMBERS;  PROVIDED
 FURTHER  THAT:  (A)  NO  MEMBER SHALL, DIRECTLY OR INDIRECTLY, INTERFERE
 WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL  PRACTICE  OF  ANOTHER
 MEMBER;  AND (B) NO MEMBER SHALL ORDER OR DIRECT ANOTHER MEMBER TO PRAC-
 TICE BEYOND THE SCOPE OF HIS OR HER LICENSE. With respect to  a  foreign
 professional  service  limited  liability  company which provides dental
 services as such services are defined in article 133  of  the  education
 law,  each member of such foreign professional service limited liability
 company must be licensed pursuant to article 133 of the education law to
 practice dentistry in this state. With respect to a foreign professional
 service limited liability company which provides professional  engineer-
 ing,  land surveying, geologic, architectural and/or landscape architec-
 tural services as such services are defined in article 145, article  147
 and  article  148  of  the  education  law,  each member of such foreign
 professional service limited liability company must be licensed pursuant
 to article 145, article 147 and/or article 148 of the education  law  to
 practice one or more of such professions in this state. [With respect to
 a  foreign professional service limited liability company which provides
 licensed clinical social work services as such services are  defined  in
 article  154  of  the education law, each member of such foreign profes-
 sional service limited liability company shall be licensed  pursuant  to
 article  154  of  the  education law to practice clinical social work in
 this state.] With respect to  a  foreign  professional  service  limited
 liability  company which provides creative arts therapy services as such
 services are defined in article 163 of the education law, each member of
 such foreign professional service  limited  liability  company  must  be
 licensed  pursuant to article 163 of the education law to practice crea-
 tive arts therapy in this state. With respect to a foreign  professional
 service  limited  liability  company  which provides marriage and family
 therapy services as such services are defined  in  article  163  of  the
 education  law, each member of such foreign professional service limited
 liability company must be licensed pursuant to article 163 of the educa-
 tion law to practice marriage and family therapy  in  this  state.  With
 respect  to  a  foreign  professional  service limited liability company
 which provides mental health counseling services as  such  services  are
 defined in article 163 of the education law, each member of such foreign
 professional service limited liability company must be licensed pursuant

 S. 4125                             6
 
 to article 163 of the education law to practice mental health counseling
 in  this  state.  With respect to a foreign professional service limited
 liability  company  which  provides  psychoanalysis  services  as   such
 services are defined in article 163 of the education law, each member of
 such  foreign  professional  service  limited  liability company must be
 licensed pursuant to article  163  of  the  education  law  to  practice
 psychoanalysis  in  this  state.  With respect to a foreign professional
 service limited liability company which provides applied behavior analy-
 sis services as such services are defined in article 167 of  the  educa-
 tion  law,  each  member  of  such  foreign professional service limited
 liability company must be licensed or certified pursuant to article  167
 of  the  education  law  to  practice  applied behavior analysis in this
 state.
   § 4. Paragraph (a) of section 1503 of the business corporation law, as
 amended by chapter 475 of the laws  of  2014,  is  amended  to  read  as
 follows:
   (a)  Notwithstanding any other provision of law, (I) one or more indi-
 viduals duly authorized by law to render the same  professional  service
 within  the state may organize, or cause to be organized, a professional
 service corporation for pecuniary profit  under  this  article  for  the
 purpose  of  rendering the same professional service, except that one or
 more individuals duly authorized by law to practice  professional  engi-
 neering, architecture, landscape architecture, land surveying or geology
 within  the state may organize, or cause to be organized, a professional
 service corporation or a design  professional  service  corporation  for
 pecuniary  profit  under  this article for the purpose of rendering such
 professional services as such individuals are  authorized  to  practice,
 AND  (II) ONE OR MORE INDIVIDUALS LICENSED TO PRACTICE PURSUANT TO ARTI-
 CLE 131 AND ONE OR MORE INDIVIDUALS LICENSED PURSUANT TO  ARTICLES  132,
 137,  140,  141,  143,  144,  153,  154,  155 OR 156 OR SUBDIVISION 3 OF
 SECTION 6902 OF ARTICLE 139 OF TITLE EIGHT  OF  THE  EDUCATION  LAW  MAY
 ORGANIZE,  OR  CAUSE  TO  BE  ORGANIZED,  FOR  BUSINESS PURPOSES ONLY, A
 PROFESSIONAL SERVICE CORPORATION FORMED FOR PECUNIARY PROFIT UNDER  THIS
 ARTICLE  FOR  THE PURPOSE OF RENDERING MULTIDISCIPLINARY SERVICES WITHIN
 SUCH A CORPORATION AS SUCH INDIVIDUALS ARE AUTHORIZED TO PRACTICE  INDI-
 VIDUALLY  IN HIS OR HER RESPECTIVE PROFESSIONS, SUBJECT TO THE FOLLOWING
 CONDITIONS: (A) INDIVIDUAL WHO ORGANIZES, OR CAUSES  TO  ORGANIZE,  SUCH
 CORPORATION  MUST  BE  LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION
 LAW TO PRACTICE HIS OR HER PROFESSION IN THIS  STATE;  (B)  EACH  MEMBER
 SHALL  ONLY  PRACTICE  HIS  OR HER PROFESSION AS SPECIFIED IN HIS OR HER
 RESPECTIVE PROFESSIONAL ENABLING STATUTE UNDER TITLE EIGHT OF THE EDUCA-
 TION LAW; AND (C) ANY CLINICAL  INTEGRATION  OF  PROFESSIONAL  PRACTICES
 UNDER THIS SECTION SHALL NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRAC-
 TICE  OF  ANY OF THE MEMBERS; (D) NO INDIVIDUAL SHALL, DIRECTLY OR INDI-
 RECTLY, INTERFERE WITH THE  CLINICAL  JUDGMENT  OR  LEGITIMATE  CLINICAL
 PRACTICE  OF  ANOTHER  INDIVIDUAL;  AND (E) NO INDIVIDUAL SHALL ORDER OR
 DIRECT ANOTHER INDIVIDUAL TO PRACTICE BEYOND THE SCOPE  OF  HIS  OR  HER
 LICENSE.
   §  5.  Subdivision  (q) of section 121-1500 of the partnership law, as
 amended by chapter 475 of the laws  of  2014,  is  amended  to  read  as
 follows:
   (q)  Each partner of a registered limited liability partnership formed
 to provide medical services in this state must be licensed  pursuant  to
 article 131 of the education law to practice medicine in this state [and
 each].  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, ANY PERSON
 LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE  MEDI-

 S. 4125                             7
 
 CINE  AND  ANY  PERSON LICENSED PURSUANT TO ARTICLES 132, 137, 140, 141,
 143, 144, 153, 154, 155 OR 156 SUBDIVISION 3 OF SECTION 6902 OF  ARTICLE
 139  OF  THE EDUCATION LAW MAY FORM, OR CAUSE TO BE FORMED, A REGISTERED
 LIMITED LIABILITY PARTNERSHIP TO PROVIDE MULTIDISCIPLINARY SERVICES WITH
 ONE OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE FOLLOWING CONDITIONS:
 (I)  EACH PARTNER OF SUCH LIMITED LIABILITY PARTNERSHIP MUST BE LICENSED
 PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW  TO  PRACTICE  HIS  OR  HER
 PROFESSION  IN  THIS STATE; (II) EACH PARTNER SHALL ONLY PRACTICE HIS OR
 HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
 ING STATUTE UNDER TITLE EIGHT OF THE EDUCATION LAW; AND (III) ANY  CLIN-
 ICAL  INTEGRATION OF THE PROFESSIONAL PRACTICES UNDER THIS SECTION SHALL
 NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF  THE  PART-
 NERS; PROVIDED FURTHER THAT: (A) NO PARTNER SHALL, DIRECTLY OR INDIRECT-
 LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
 OF  ANOTHER  PARTNER;  AND  (B) NO PARTNER SHALL ORDER OR DIRECT ANOTHER
 PARTNER TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE.  EACH  part-
 ner  of  a  registered  limited  liability partnership formed to provide
 dental services in this state must be licensed pursuant to  article  133
 of  the education law to practice dentistry in this state.  Each partner
 of a registered limited liability partnership formed to provide  veteri-
 nary  services in this state must be licensed pursuant to article 135 of
 the education law to practice veterinary medicine in  this  state.  Each
 partner  of a registered limited liability partnership formed to provide
 professional engineering, land surveying, geological services, architec-
 tural and/or landscape architectural services  in  this  state  must  be
 licensed  pursuant to article 145, article 147 and/or article 148 of the
 education law to practice one or more of such professions in this state.
 [Each partner of a registered limited liability  partnership  formed  to
 provide  licensed  clinical  social  work services in this state must be
 licensed pursuant to article 154 of the education law to practice  clin-
 ical  social  work  in this state.] Each partner of a registered limited
 liability partnership formed to provide creative arts  therapy  services
 in  this state must be licensed pursuant to article 163 of the education
 law to practice creative arts therapy in this state. Each partner  of  a
 registered  limited liability partnership formed to provide marriage and
 family therapy services in this state must be licensed pursuant to arti-
 cle 163 of the education law to practice marriage and family therapy  in
 this  state.  Each partner of a registered limited liability partnership
 formed to provide mental health counseling services in this  state  must
 be  licensed  pursuant  to  article 163 of the education law to practice
 mental health counseling in this state. Each  partner  of  a  registered
 limited  liability partnership formed to provide psychoanalysis services
 in this state must be licensed pursuant to article 163 of the  education
 law  to  practice psychoanalysis in this state. Each partner of a regis-
 tered limited liability partnership formed to provide  applied  behavior
 analysis service in this state must be licensed or certified pursuant to
 article  167  of the education law to practice applied behavior analysis
 in this state.
   § 6. Subdivision (q) of section 121-1502 of the  partnership  law,  as
 amended  by  chapter  475  of  the  laws  of 2014, is amended to read as
 follows:
   (q) Each partner of a  foreign  limited  liability  partnership  which
 provides  medical  services  in  this state must be licensed pursuant to
 article 131 of the education law to practice medicine in the state  [and
 each].  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, ANY PERSON
 LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE  MEDI-

 S. 4125                             8
 
 CINE  AND  ANY  PERSON LICENSED PURSUANT TO ARTICLES 132, 137, 140, 141,
 143, 144, 153, 154, 155 OR 156 OR SUBDIVISION 3 OF SECTION 6902 OF ARTI-
 CLE 139 OF THE EDUCATION LAW MAY FORM, OR CAUSE TO BE FORMED, A  FOREIGN
 LIMITED LIABILITY PARTNERSHIP TO PROVIDE MULTIDISCIPLINARY SERVICES WITH
 ONE OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE FOLLOWING CONDITIONS:
 (I)  EACH  PARTNER OF SUCH FOREIGN LIMITED LIABILITY PARTNERSHIP MUST BE
 LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW TO PRACTICE HIS OR
 HER PROFESSION IN THIS STATE; (II) EACH PARTNER SHALL ONLY PRACTICE  HIS
 OR  HER  PROFESSION  AS  SPECIFIED IN HIS OR HER RESPECTIVE PROFESSIONAL
 ENABLING STATUTE UNDER TITLE EIGHT OF THE EDUCATION LAW; AND  (III)  ANY
 CLINICAL  INTEGRATION OF PROFESSIONAL PRACTICES UNDER THIS SECTION SHALL
 NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF  THE  PART-
 NERS; PROVIDED FURTHER THAT: (A) NO PARTNER SHALL, DIRECTLY OR INDIRECT-
 LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
 OF  ANOTHER  PARTNER;  AND  (B) NO PARTNER SHALL ORDER OR DIRECT ANOTHER
 PARTNER TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE. EACH partner
 of  a  foreign  limited  liability  partnership  which  provides  dental
 services  in  the  state must be licensed pursuant to article 133 of the
 education law to practice dentistry in this state.  Each  partner  of  a
 foreign  limited liability partnership which provides veterinary service
 in the state shall be licensed pursuant to article 135 of the  education
 law  to  practice  veterinary  medicine in this state. Each partner of a
 foreign limited liability partnership which provides professional  engi-
 neering, land surveying, geological services, architectural and/or land-
 scape  architectural services in this state must be licensed pursuant to
 article 145, article 147 and/or article 148  of  the  education  law  to
 practice  one  or  more  of such professions. [Each partner of a foreign
 limited liability partnership which provides  licensed  clinical  social
 work  services in this state must be licensed pursuant to article 154 of
 the education law to practice licensed  clinical  social  work  in  this
 state.]  Each  partner  of a foreign limited liability partnership which
 provides creative arts therapy services in this state must  be  licensed
 pursuant  to  article 163 of the education law to practice creative arts
 therapy in this state. Each partner of a foreign limited liability part-
 nership which provides marriage and  family  therapy  services  in  this
 state  must  be licensed pursuant to article 163 of the education law to
 practice marriage and family therapy in this state. Each  partner  of  a
 foreign limited liability partnership which provides mental health coun-
 seling  services  in this state must be licensed pursuant to article 163
 of the education law to practice mental health counseling in this state.
 Each partner of a foreign limited liability partnership  which  provides
 psychoanalysis services in this state must be licensed pursuant to arti-
 cle  163  of the education law to practice psychoanalysis in this state.
 Each partner of a foreign limited liability partnership  which  provides
 applied  behavior  analysis  services  in this state must be licensed or
 certified pursuant to article 167  of  the  education  law  to  practice
 applied behavior analysis in this state.
   § 7. Section 6509-a of the education law, as amended by chapter 555 of
 the laws of 1993, is amended to read as follows:
   § 6509-a. Additional  definition  of  professional misconduct; limited
 application.  Notwithstanding any inconsistent provision of this article
 or of any other provision of law to the contrary, the license or  regis-
 tration  of  a  person subject to the provisions of articles one hundred
 thirty-two,  one  hundred  thirty-three,  one  hundred  thirty-six,  one
 hundred  thirty-seven,  one  hundred thirty-nine, one hundred forty-one,
 one hundred forty-three, one hundred forty-four, one hundred  fifty-six,

 S. 4125                             9
 
 one hundred fifty-nine and one hundred sixty-four of this chapter may be
 revoked,  suspended  or  annulled  or  such person may be subject to any
 other penalty provided in section  sixty-five  hundred  eleven  of  this
 article  in accordance with the provisions and procedure of this article
 for the following:
   That any person subject to the above enumerated articles, has directly
 or indirectly requested,  received  or  participated  in  the  division,
 transference,  assignment,  rebate, splitting or refunding of a fee for,
 or has directly requested, received or profited by means of a credit  or
 other  valuable  consideration  as a commission, discount or gratuity in
 connection with the furnishing of professional care, or service, includ-
 ing x-ray examination and treatment, or for or in  connection  with  the
 sale, rental, supplying or furnishing of clinical laboratory services or
 supplies,  x-ray  laboratory  services  or  supplies, inhalation therapy
 service or equipment, ambulance service, hospital or  medical  supplies,
 physiotherapy  or  other  therapeutic  service  or equipment, artificial
 limbs, teeth or eyes, orthopedic or  surgical  appliances  or  supplies,
 optical  appliances,  supplies or equipment, devices for aid of hearing,
 drugs, medication or medical supplies or any other  goods,  services  or
 supplies  prescribed for medical diagnosis, care or treatment under this
 chapter, except payment, not to exceed thirty-three  and  one-third  per
 centum  of  any  fee received for x-ray examination, diagnosis or treat-
 ment, to any hospital furnishing facilities for such examination,  diag-
 nosis  or  treatment.   Nothing contained in this section shall prohibit
 such persons from practicing as partners, in groups or as a professional
 corporation or as a university faculty  practice  corporation  nor  from
 pooling  fees  and  moneys received, either by the partnerships, profes-
 sional corporations, university faculty practice corporations or  groups
 by  the  individual members thereof, for professional services furnished
 by any individual professional member, or employee of such  partnership,
 corporation or group, nor shall the professionals constituting the part-
 nerships, corporations or groups be prohibited from sharing, dividing or
 apportioning the fees and moneys received by them or by the partnership,
 corporation  or  group  in accordance with a partnership or other agree-
 ment; provided that no such practice as  partners,  corporations  or  in
 groups  or  pooling  of  fees  or moneys received or shared, division or
 apportionment of fees shall be permitted with respect to care and treat-
 ment under the workers' compensation law except as expressly  authorized
 by  the  workers'  compensation  law.  NOTHING CONTAINED IN THIS SECTION
 SHALL PROHIBIT A MULTIDISCIPLINARY SERVICES PRACTICE FORMED PURSUANT  TO
 SUBDIVISION (A) OF SECTION TWELVE HUNDRED THREE OF THE LIMITED LIABILITY
 COMPANY  LAW,  SUBDIVISION  (B)  OF  SECTION TWELVE HUNDRED SEVEN OF THE
 LIMITED LIABILITY COMPANY  LAW,  SUBDIVISION  (A)  OF  SECTION  THIRTEEN
 HUNDRED  ONE  OF  THE  LIMITED  LIABILITY  COMPANY LAW, PARAGRAPH (A) OF
 SECTION FIFTEEN HUNDRED THREE OF THE BUSINESS CORPORATION LAW,  SUBDIVI-
 SION  (Q) OF SECTION 121-1500 OF THE PARTNERSHIP LAW, OR SUBDIVISION (Q)
 OF SECTION 121-1502 OF THE PARTNERSHIP LAW FROM POOLING FEES  OR  MONIES
 RECEIVED.  Nothing contained in this chapter shall prohibit a medical or
 dental expense indemnity corporation pursuant to its contract  with  the
 subscriber  from  prorationing  a  medical  or  dental expense indemnity
 allowance among two or more professionals in proportion to the  services
 rendered  by  each  such  professional at the request of the subscriber,
 provided that prior to payment thereof such professionals  shall  submit
 both  to  the medical or dental expense indemnity corporation and to the
 subscriber statements itemizing  the  services  rendered  by  each  such
 professional and the charges therefor.

 S. 4125                            10
 
   §  8. Subdivision 19 of section 6530 of the education law, as added by
 chapter 606 of the laws of 1991, is amended to read as follows:
   19.  Permitting  any  person  to  share  in  the fees for professional
 services, other than: a partner, employee, associate in  a  professional
 firm or corporation, professional subcontractor or consultant authorized
 to practice medicine, [or] a legally authorized trainee practicing under
 the  supervision  of  a licensee, OR AN AUTHORIZED PROFESSIONAL LICENSED
 PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE, ONE HUNDRED THIRTY-TWO,  ONE
 HUNDRED  THIRTY-SEVEN,  ONE  HUNDRED  FORTY,  ONE HUNDRED FORTY-ONE, ONE
 HUNDRED FORTY-THREE, ONE HUNDRED FORTY-FOUR,  ONE  HUNDRED  FIFTY-THREE,
 ONE HUNDRED FIFTY-FOUR, ONE HUNDRED FIFTY-FIVE, ONE HUNDRED FIFTY-SIX OR
 ONE  HUNDRED  FIFTY-NINE  OR  SUBDIVISION  THREE  OF  SECTION SIXTY NINE
 HUNDRED TWO OF ARTICLE ONE HUNDRED THIRTY-NINE OF THIS CHAPTER PROVIDING
 PROFESSIONAL SERVICES IN  THE  SAME  PRACTICE.  This  prohibition  shall
 include  any  arrangement  or  agreement  whereby the amount received in
 payment  for  furnishing  space,  facilities,  equipment  or   personnel
 services used by a licensee constitutes a percentage of, or is otherwise
 dependent  upon,  the income or receipts of the licensee from such prac-
 tice, except as otherwise provided by law with  respect  to  a  facility
 licensed  pursuant  to  article twenty-eight of the public health law or
 article thirteen of the mental hygiene law;
   § 9. Section 6531 of the education law, as amended by chapter  555  of
 the laws of 1993, is amended to read as follows:
   § 6531. Additional  definition  of  professional  misconduct,  limited
 application.  Notwithstanding any inconsistent provision of this article
 or any other provisions of law to the contrary, the license or registra-
 tion of a person subject to the provisions of this article  and  article
 one  hundred  thirty-one-B of this chapter may be revoked, suspended, or
 annulled or such person may be subject to any other penalty provided  in
 section two hundred thirty-a of the public health law in accordance with
 the provisions and procedures of this article for the following:
   That  any person subject to the above-enumerated articles has directly
 or indirectly requested,  received  or  participated  in  the  division,
 transference,  assignment, rebate, splitting, or refunding of a fee for,
 or has directly requested, received or profited by means of a credit  or
 other  valuable  consideration as a commission, discount or gratuity, in
 connection with the furnishing of professional care or service,  includ-
 ing  x-ray  examination  and treatment, or for or in connection with the
 sale, rental, supplying, or furnishing of clinical  laboratory  services
 or  supplies,  x-ray laboratory services or supplies, inhalation therapy
 service or equipment, ambulance service, hospital or  medical  supplies,
 physiotherapy  or  other  therapeutic  service  or equipment, artificial
 limbs, teeth or eyes, orthopedic or  surgical  appliances  or  supplies,
 optical  appliances, supplies, or equipment, devices for aid of hearing,
 drugs, medication, or medical supplies, or any other goods, services, or
 supplies prescribed for medical diagnosis, care, or treatment under this
 chapter, except  payment,  not  to  exceed  thirty-three  and  one-third
 percent  of any fee received for x-ray examination, diagnosis, or treat-
 ment, to any hospital furnishing facilities for such examination,  diag-
 nosis,  or  treatment.  Nothing contained in this section shall prohibit
 such persons from practicing as partners, in groups or as a professional
 corporation or as a university faculty practice  corporation,  nor  from
 pooling  fees  and  moneys received, either by the partnerships, profes-
 sional corporations, or  university  faculty  practice  corporations  or
 groups  by  the  individual  members  thereof, for professional services
 furnished by an individual professional  member,  or  employee  of  such

 S. 4125                            11
 
 partnership,  corporation, or group, nor shall the professionals consti-
 tuting the partnerships, corporations or groups be prohibited from shar-
 ing, dividing, or apportioning the fees and moneys received by  them  or
 by  the partnership, corporation, or group in accordance with a partner-
 ship or other agreement; provided that no  such  practice  as  partners,
 corporations,  or  groups,  or  pooling  of  fees  or moneys received or
 shared, division or  apportionment  of  fees  shall  be  permitted  with
 respect  to  and  treatment under the workers' compensation law. NOTHING
 CONTAINED IN THIS SECTION SHALL PROHIBIT  A  MULTIDISCIPLINARY  SERVICES
 PRACTICE  FORMED  PURSUANT  TO SUBDIVISION (A) OF SECTION TWELVE HUNDRED
 THREE OF THE LIMITED LIABILITY COMPANY LAW, SUBDIVISION (B)  OF  SECTION
 TWELVE  HUNDRED  SEVEN OF THE LIMITED LIABILITY COMPANY LAW, SUBDIVISION
 (A) OF SECTION THIRTEEN HUNDRED ONE OF  THE  LIMITED  LIABILITY  COMPANY
 LAW,  PARAGRAPH  (A)  OF  SECTION  FIFTEEN HUNDRED THREE OF THE BUSINESS
 CORPORATION LAW, SUBDIVISION (Q) OF SECTION 121-1500 OF THE  PARTNERSHIP
 LAW,  OR SUBDIVISION (Q) OF SECTION 121-1502 OF THE PARTNERSHIP LAW FROM
 POOLING FEES OR MONIES RECEIVED. Nothing contained in this chapter shall
 prohibit a corporation licensed pursuant to article forty-three  of  the
 insurance  law  pursuant to its contract with the subscribed from prora-
 tioning a medical or dental expenses indemnity allowance  among  two  or
 more  professionals  in proportion to the services rendered by each such
 professional at the request of the subscriber, provided  that  prior  to
 payment  thereof such professionals shall submit both to the corporation
 licensed pursuant to article forty-three of the insurance law and to the
 subscriber statements itemizing  the  services  rendered  by  each  such
 professional and the charges therefor.
   §  10.  Subdivision  1  of  section  2801 of the public health law, as
 amended by chapter 397 of the laws  of  2016,  is  amended  to  read  as
 follows:
   1.  "Hospital"  means a facility or institution engaged principally in
 providing services by or under the supervision of a physician or, in the
 case of a dental clinic or dental dispensary, of a dentist, or,  in  the
 case  of  a  midwifery  birth  center, of a midwife, for the prevention,
 diagnosis or treatment of human  disease,  pain,  injury,  deformity  or
 physical  condition,  including, but not limited to, a general hospital,
 public health center, diagnostic center, treatment center, dental  clin-
 ic,  dental dispensary, rehabilitation center other than a facility used
 solely for vocational rehabilitation, nursing home, tuberculosis  hospi-
 tal,  chronic  disease  hospital,  maternity  hospital,  midwifery birth
 center,  lying-in-asylum,  out-patient  department,  out-patient  lodge,
 dispensary  and  a laboratory or central service facility serving one or
 more such institutions, but the  term  hospital  shall  not  include  an
 institution, sanitarium or other facility engaged principally in provid-
 ing  services for the prevention, diagnosis or treatment of mental disa-
 bility and which is subject to the powers  of  visitation,  examination,
 inspection  and investigation of the department of mental hygiene except
 for those distinct parts of  such  a  facility  which  provide  hospital
 service. The provisions of this article shall not apply to a facility or
 institution  engaged  principally  in providing services by or under the
 supervision of the bona fide members and adherents of a recognized reli-
 gious organization whose teachings include reliance on  spiritual  means
 through prayer alone for healing in the practice of the religion of such
 organization  and  where  services are provided in accordance with those
 teachings OR TO A MULTIDISCIPLINARY SERVICES PRACTICE FORMED PURSUANT TO
 SUBDIVISION (A) OF SECTION TWELVE HUNDRED THREE OF THE LIMITED LIABILITY
 COMPANY LAW, SUBDIVISION (B) OF SECTION  TWELVE  HUNDRED  SEVEN  OF  THE

 S. 4125                            12
 
 LIMITED  LIABILITY  COMPANY  LAW,  SUBDIVISION  (A)  OF SECTION THIRTEEN
 HUNDRED ONE OF THE LIMITED  LIABILITY  COMPANY  LAW,  PARAGRAPH  (A)  OF
 SECTION  FIFTEEN HUNDRED THREE OF THE BUSINESS CORPORATION LAW, SUBDIVI-
 SION  (Q) OF SECTION 121-1500 OF THE PARTNERSHIP LAW, OR SUBDIVISION (Q)
 OF SECTION 121-1502 OF THE PARTNERSHIP LAW.
   § 11. This act shall take effect on the thirtieth day after  it  shall
 have become a law.

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