S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1891
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by  M.  of A. LUPARDO, THIELE, SANTABARBARA, STECK -- Multi-
   Sponsored by -- M.  of  A.  McDONOUGH,  B. MILLER  --  read  once  and
   referred to the Committee on Higher Education
 
 AN  ACT  to amend the business corporation law, in relation to providing
   for expanded ownership in design professional corporations by employee
   stock ownership plans and non-licensed employees
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraphs  (i) and (ii) of paragraph (b-1) of section
 1503 of the business corporation law, as added by  chapter  550  of  the
 laws of 2011, are amended to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are owned by design professionals AND  AN  ESOP
 (OR  ESOPS)  WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES AND GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii)  an ESOP, either in part or in its entirety, shall not constitute
 part of the greater than seventy-five percent owned  by  design  profes-
 sionals  UNLESS  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES AND GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   §  2.  Subparagraphs  (i) and (ii) of paragraph (b) of section 1507 of
 the business corporation law, as added by chapter 550  of  the  laws  of
 2011, are amended to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are owned by design professionals AND  AN  ESOP
 (OR  ESOPS)  WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES AND GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii)  an ESOP, either in part or in its entirety, shall not constitute
 part of the greater than seventy-five percent owned  by  design  profes-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02875-01-1

 A. 1891                             2
 
 sionals  UNLESS  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES AND GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business
 corporation law, as added by chapter 550 of the laws of 2011, is amended
 to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are and were owned by design professionals  AND
 AN  ESOP (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S
 VOTING TRUSTEES AND GREATER THAN  SEVENTY-FIVE  PERCENT  OF  THE  PLAN'S
 COMMITTEE MEMBERS BEING DESIGN PROFESSIONALS,
   § 4. Paragraph (a) of section 1505 of the business corporation law, as
 amended  by  chapter  550  of  the  laws  of 2011, is amended to read as
 follows:
   (a) (I) Each shareholder, employee or agent of a professional  service
 corporation  and  a  design  professional  service  corporation shall be
 personally and fully liable and accountable for any negligent or  wrong-
 ful act or misconduct committed by him or by any person under his direct
 supervision  and control while rendering professional services on behalf
 of such corporation.
   (II) AN EMPLOYEE STOCK OWNERSHIP PLAN OWNING GREATER THAN  TWENTY-FIVE
 PERCENT  OF  THE  OUTSTANDING  SHARES  OF  A DESIGN PROFESSIONAL SERVICE
 CORPORATION ORGANIZED UNDER PARAGRAPH (B-1) OF SECTION  FIFTEEN  HUNDRED
 THREE  OF  THIS ARTICLE SHALL BE UNDER THE SUPERVISION OF THE REGENTS OF
 THE UNIVERSITY OF THE STATE OF NEW YORK AND BE SUBJECT  TO  DISCIPLINARY
 PROCEEDINGS  AND  PENALTIES,  AND  ITS  AUTHORITY TO HOLD SHARES OF SUCH
 CORPORATION SHALL BE SUBJECT TO SUSPENSION, REVOCATION OR ANNULMENT  FOR
 CAUSE,  IN  THE  SAME  MANNER AND TO THE SAME EXTENT AS IS PROVIDED WITH
 RESPECT TO INDIVIDUALS AND THEIR LICENSES, CERTIFICATES,  AND  REGISTRA-
 TIONS  IN  TITLE  EIGHT  OF THE EDUCATION LAW RELATING TO THE APPLICABLE
 PROFESSION.
   § 5. Subparagraphs (v) and (vi) of paragraph (b-1) of section 1503  of
 the  business  corporation  law,  as added by chapter 550 of the laws of
 2011, are amended and a new subparagraph  (vii)  is  added  to  read  as
 follows:
   (v)  the  president, the chairperson of the board of directors and the
 chief executive officer or officers are design professionals, [and]
   (vi) the single largest shareholder is either a design professional or
 an ESOP with greater than seventy-five  percent  of  the  plan's  voting
 trustees  being  design  professionals  and  greater  than  seventy-five
 percent of the plan's committee members being  design  professionals[.],
 AND
   (VII)  NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, NOT LESS THAN FIVE
 PERCENT OF THE OUTSTANDING SHARES  OF STOCK OF THE CORPORATION SHALL  BE
 OWNED BY DESIGN PROFESSIONALS.
   §  6.  Subparagraphs  (v) and (vi) of paragraph (b) of section 1507 of
 the business corporation law, as added by chapter 550  of  the  laws  of
 2011,  are  amended  and  a  new  subparagraph (vii) is added to read as
 follows:
   (v) the president, the chairperson of the board of directors  and  the
 chief executive officer or officers are design professionals, [and]
   (vi) the single largest shareholder is either a design professional or
 an  ESOP  with  greater  than  seventy-five percent of the plan's voting
 trustees  being  design  professionals  and  greater  than  seventy-five
 percent  of  the plan's committee members being design professionals[.],
 AND

 A. 1891                             3
 
   (VII) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NOT LESS  THAN  FIVE
 PERCENT  OF  THE OUTSTANDING SHARES OF STOCK OF THE CORPORATION SHALL BE
 OWNED BY DESIGN PROFESSIONALS.
   §  7.  Subparagraphs  (iv) and (v) of paragraph (b) of section 1514 of
 the business corporation law, as added by chapter 550  of  the  laws  of
 2011,  are  amended  and  a  new  subparagraph  (vi) is added to read as
 follows:
   (iv) the president, the chairperson of the board of directors and  the
 chief  executive  officer or officers are and were design professionals,
 [and]
   (v) the single largest shareholder is and was either a design  profes-
 sional  or  an ESOP with greater than seventy-five percent of the plan's
 voting trustees being design professionals and greater than seventy-five
 percent of the plan's committee members being  design  professionals[.],
 AND
   (VI)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, NOT LESS THAN FIVE
 PERCENT OF THE OUTSTANDING SHARES OF STOCK OF THE  CORPORATION  ARE  AND
 WERE OWNED BY DESIGN PROFESSIONALS.
   § 8. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1891--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced  by  M.  of A. LUPARDO, THIELE, SANTABARBARA, STECK -- Multi-
   Sponsored by -- M.  of  A.  McDONOUGH,  B. MILLER  --  read  once  and
   referred to the Committee on Higher Education -- committee discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee

 AN ACT to amend the business corporation law, in relation  to  providing
   for expanded ownership in design professional corporations by employee
   stock ownership plans and non-licensed employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraphs (i) and (ii) of paragraph  (b-1)  of  section
 1503  of  the  business  corporation law, as added by chapter 550 of the
 laws of 2011, are amended to read as follows:
   (i) greater than seventy-five percent of  the  outstanding  shares  of
 stock  of  the corporation are owned by design professionals AND AN ESOP
 (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii) an ESOP, either in part or in its entirety, shall not  constitute
 part  of  the  greater than seventy-five percent owned by design profes-
 sionals UNLESS GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   § 2. Subparagraphs (i) and (ii) of paragraph (b) of  section  1507  of
 the  business  corporation  law,  as added by chapter 550 of the laws of
 2011, are amended to read as follows:
   (i) greater than seventy-five percent of  the  outstanding  shares  of
 stock  of  the corporation are owned by design professionals AND AN ESOP
 (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02875-02-1

 A. 1891--A                          2
 
   (ii) an ESOP, either in part or in its entirety, shall not  constitute
 part  of  the  greater than seventy-five percent owned by design profes-
 sionals UNLESS GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business
 corporation law, as added by chapter 550 of the laws of 2011, is amended
 to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are and were owned by design professionals  AND
 AN  ESOP (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S
 VOTING TRUSTEES OR GREATER  THAN  SEVENTY-FIVE  PERCENT  OF  THE  PLAN'S
 COMMITTEE MEMBERS BEING DESIGN PROFESSIONALS,
   § 4. Paragraph (a) of section 1505 of the business corporation law, as
 amended  by  chapter  550  of  the  laws  of 2011, is amended to read as
 follows:
   (a) (I) Each shareholder, employee or agent of a professional  service
 corporation  and  a  design  professional  service  corporation shall be
 personally and fully liable and accountable for any negligent or  wrong-
 ful act or misconduct committed by him or by any person under his direct
 supervision  and control while rendering professional services on behalf
 of such corporation.
   (II) AN EMPLOYEE STOCK OWNERSHIP PLAN OWNING GREATER THAN  TWENTY-FIVE
 PERCENT  OF  THE  OUTSTANDING  SHARES  OF  A DESIGN PROFESSIONAL SERVICE
 CORPORATION ORGANIZED UNDER PARAGRAPH (B-1) OF SECTION  FIFTEEN  HUNDRED
 THREE  OF  THIS ARTICLE SHALL BE UNDER THE SUPERVISION OF THE REGENTS OF
 THE UNIVERSITY OF THE STATE OF NEW YORK AND BE SUBJECT  TO  DISCIPLINARY
 PROCEEDINGS  AND  PENALTIES,  AND  ITS  AUTHORITY TO HOLD SHARES OF SUCH
 CORPORATION SHALL BE SUBJECT TO SUSPENSION, REVOCATION OR ANNULMENT  FOR
 CAUSE,  IN  THE  SAME  MANNER AND TO THE SAME EXTENT AS IS PROVIDED WITH
 RESPECT TO INDIVIDUALS AND THEIR LICENSES, CERTIFICATES,  AND  REGISTRA-
 TIONS  IN  TITLE  EIGHT  OF THE EDUCATION LAW RELATING TO THE APPLICABLE
 PROFESSION.
   § 5. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1891--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced by M. of A. LUPARDO, THIELE, SANTABARBARA, STECK, FAHY, WOER-
   NER  -- Multi-Sponsored by -- M. of A. LAWLER, McDONOUGH, B. MILLER --
   read once and referred to the Committee on Higher Education -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted  to  said  committee  -- recommitted to the Committee on Higher
   Education in accordance with Assembly Rule  3,  sec.  2  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the business corporation law, in relation to providing
   for expanded ownership in design professional corporations by employee
   stock ownership plans and non-licensed employees
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subparagraphs  (i) and (ii) of paragraph (b-1) of section
 1503 of the business corporation law, as added by  chapter  550  of  the
 laws of 2011, are amended to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are owned by design professionals AND  AN  ESOP
 (OR  ESOPS)  WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES OR GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii)  an ESOP, either in part or in its entirety, shall not constitute
 part of the greater than seventy-five percent owned  by  design  profes-
 sionals  UNLESS  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES OR GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   §  2.  Subparagraphs  (i) and (ii) of paragraph (b) of section 1507 of
 the business corporation law, as added by chapter 550  of  the  laws  of
 2011, are amended to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are owned by design professionals AND  AN  ESOP
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02875-04-2
              

 A. 1891--B                          2
 
 (OR  ESOPS)  WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES OR GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii)  an ESOP, either in part or in its entirety, shall not constitute
 part of the greater than seventy-five percent owned  by  design  profes-
 sionals  UNLESS  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES OR GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business
 corporation law, as added by chapter 550 of the laws of 2011, is amended
 to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are and were owned by design professionals  AND
 AN  ESOP (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S
 VOTING TRUSTEES OR GREATER  THAN  SEVENTY-FIVE  PERCENT  OF  THE  PLAN'S
 COMMITTEE MEMBERS BEING DESIGN PROFESSIONALS,
   § 4. Paragraph (a) of section 1505 of the business corporation law, as
 amended  by  chapter  550  of  the  laws  of 2011, is amended to read as
 follows:
   (a) (I) Each shareholder, employee or agent of a professional  service
 corporation  and  a  design  professional  service  corporation shall be
 personally and fully liable and accountable for any negligent or  wrong-
 ful act or misconduct committed by him or by any person under his direct
 supervision  and control while rendering professional services on behalf
 of such corporation.
   (II) AN EMPLOYEE STOCK OWNERSHIP PLAN OWNING GREATER THAN  TWENTY-FIVE
 PERCENT  OF  THE  OUTSTANDING  SHARES  OF  A DESIGN PROFESSIONAL SERVICE
 CORPORATION ORGANIZED UNDER PARAGRAPH (B-1) OF SECTION  FIFTEEN  HUNDRED
 THREE  OF  THIS ARTICLE SHALL BE UNDER THE SUPERVISION OF THE REGENTS OF
 THE UNIVERSITY OF THE STATE OF NEW YORK AND BE SUBJECT  TO  DISCIPLINARY
 PROCEEDINGS  AND  PENALTIES,  AND  ITS  AUTHORITY TO HOLD SHARES OF SUCH
 CORPORATION SHALL BE SUBJECT TO SUSPENSION, REVOCATION OR ANNULMENT  FOR
 CAUSE,  IN  THE  SAME  MANNER AND TO THE SAME EXTENT AS IS PROVIDED WITH
 RESPECT TO INDIVIDUALS AND THEIR LICENSES, CERTIFICATES,  AND  REGISTRA-
 TIONS  IN  TITLE  EIGHT  OF THE EDUCATION LAW RELATING TO THE APPLICABLE
 PROFESSION.
   § 5. This act shall take effect two years after it shall have become a
 law.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1891--C
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 11, 2021
                                ___________
 
 Introduced by M. of A. LUPARDO, THIELE, SANTABARBARA, STECK, FAHY, WOER-
   NER  -- Multi-Sponsored by -- M. of A. LAWLER, McDONOUGH, B. MILLER --
   read once and referred to the Committee on Higher Education -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted  to  said  committee  -- recommitted to the Committee on Higher
   Education in accordance with Assembly Rule  3,  sec.  2  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  -- again reported from said committee with amend-
   ments, ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the business corporation law, in relation  to  providing
   for expanded ownership in design professional corporations by employee
   stock ownership plans and non-licensed employees
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subparagraphs (i) and (ii) of paragraph  (b-1)  of  section
 1503  of  the  business  corporation law, as added by chapter 550 of the
 laws of 2011, are amended to read as follows:
   (i) greater than seventy-five percent of  the  outstanding  shares  of
 stock  of  the corporation are owned by design professionals AND AN ESOP
 (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii) an ESOP, either in part or in its entirety, shall not  constitute
 part  of  the  greater than seventy-five percent owned by design profes-
 sionals UNLESS GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   § 2. Subparagraphs (i) and (ii) of paragraph (b) of  section  1507  of
 the  business  corporation  law,  as added by chapter 550 of the laws of
 2011, are amended to read as follows:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02875-06-2
 A. 1891--C                          2
              

 
   (i) greater than seventy-five percent of  the  outstanding  shares  of
 stock  of  the corporation are owned by design professionals AND AN ESOP
 (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE  PLAN'S  VOTING
 TRUSTEES  OR  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S COMMITTEE
 MEMBERS BEING DESIGN PROFESSIONALS,
   (ii)  an ESOP, either in part or in its entirety, shall not constitute
 part of the greater than seventy-five percent owned  by  design  profes-
 sionals  UNLESS  GREATER  THAN SEVENTY-FIVE PERCENT OF THE PLAN'S VOTING
 TRUSTEES OR GREATER THAN SEVENTY-FIVE PERCENT OF  THE  PLAN'S  COMMITTEE
 MEMBERS ARE DESIGN PROFESSIONALS,
   § 3. Subparagraph (i) of paragraph (b) of section 1514 of the business
 corporation law, as added by chapter 550 of the laws of 2011, is amended
 to read as follows:
   (i)  greater  than  seventy-five  percent of the outstanding shares of
 stock of the corporation are and were owned by design professionals  AND
 AN  ESOP (OR ESOPS) WITH GREATER THAN SEVENTY-FIVE PERCENT OF THE PLAN'S
 VOTING TRUSTEES OR GREATER  THAN  SEVENTY-FIVE  PERCENT  OF  THE  PLAN'S
 COMMITTEE MEMBERS BEING DESIGN PROFESSIONALS,
   § 4. Paragraph (a) of section 1505 of the business corporation law, as
 amended  by  chapter  550  of  the  laws  of 2011, is amended to read as
 follows:
   (a) (I) Each shareholder, employee or agent of a professional  service
 corporation  and  a  design  professional  service  corporation shall be
 personally and fully liable and accountable for any negligent or  wrong-
 ful act or misconduct committed by him or by any person under his direct
 supervision  and control while rendering professional services on behalf
 of such corporation.
   (II) AN EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) OWNING GREATER THAN TWEN-
 TY-FIVE PERCENT OF THE  OUTSTANDING  SHARES  OF  A  DESIGN  PROFESSIONAL
 SERVICE  CORPORATION  ORGANIZED UNDER PARAGRAPH (B-1) OF SECTION FIFTEEN
 HUNDRED THREE OF THIS ARTICLE SHALL BE  UNDER  THE  SUPERVISION  OF  THE
 REGENTS  OF THE UNIVERSITY OF THE STATE OF NEW YORK, SHALL REGISTER WITH
 THE DEPARTMENT OF EDUCATION AND SHALL BE ISSUED A  CERTIFICATE  GRANTING
 SUCH  ESOP  THE  AUTHORITY  TO  HOLD SHARES OF SUCH CORPORATIONS.   SUCH
 CERTIFICATE SHALL BE SUBJECT TO PROFESSIONAL  MISCONDUCT  PROVISIONS  AS
 SET  FORTH  IN ARTICLE ONE HUNDRED THIRTY OF THE EDUCATION LAW. IN ADDI-
 TION, THE FAILURE TO MAINTAIN AN ACTIVE REGISTRATION WITH THE DEPARTMENT
 OF EDUCATION SHALL  ALSO  SUBJECT  SUCH  CERTIFICATE  TO  DISCIPLINE  AS
 PROVIDED  ABOVE.    THE SECRETARY OF STATE SHALL BE THE DESIGNATED AGENT
 FOR SERVICE OF PROCESS IN ANY DISCIPLINARY MATTER INVOLVING A REGISTERED
 EMPLOYEE STOCK OWNERSHIP PLAN.
   (III) ANY SUCH EMPLOYEE STOCK OWNERSHIP PLAN SHALL NOT  INFLUENCE,  OR
 ATTEMPT  TO  INFLUENCE ANY DECISIONS THAT FALL WITHIN A LICENSEE'S SCOPE
 OF PRACTICE.
   § 5. This act shall take effect two years after it shall have become a
 law.