senate Bill S3481

Permits psychologists to form limited liability companies

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 04 / Feb / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Summary

Permits psychologists to form limited liability companies.

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Bill Details

See Assembly Version of this Bill:
A801
Versions:
S3481
Legislative Cycle:
2013-2014
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 §2801, Pub Health L; amd §6530, Ed L
Versions Introduced in 2011-2012 Legislative Cycle:
S7460A, A10777

Sponsor Memo

BILL NUMBER:S3481

TITLE OF BILL: An act to amend the limited liability company law, the
business corporation law, the partnership law, the public health law and
the education law, in relation to allowing psychologists licensed under
title VIII, article 153 of the education law to form limited liability
companies

PURPOSE: This hill would authorize physicians and psychologists to form
limited liability companies, professional corporations and partnerships
with one another. In the last two decades, practice in and among the
health professions has changed. Artificial barriers in current law
prohibit multidisciplinary practices, which prevents physicians and
other providers, including psychologists, from co-owning a practice and
collaborating and coordinating on patient care. Such restraints should
not prevail, as they are no longer in keeping with best practices in
modern health care which espouse the integration of behavioral and phys-
ical health.

SUMMARY OF PROVISIONS:

Section 2. Subdivision (a) of section 1203 of the limited liability
company law, as separately amended by chapters 420 and 676 of the laws
of 2002, is amended to read as follows: (a) Notwithstanding the educa-
tion law or ariy 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 article for the purpose of rendering the
professional service or services as such professionals are authorized to
practice.

JUSTIFICATION: In the last two decades, practice in and among the
health professions has changed. Artificial barriers in current law
prohibit multidisciplinary practices, which prevents physicians and
other providers, including psychologists, from co-owning a practice and
collaborating and coordinating on patient care.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3481

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 4, 2013
                               ___________

Introduced by Sens. RANZENHOFER, SAVINO -- read twice and ordered print-
  ed, 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 psychologists licensed under title
  VIII, article 153 of the  education  law  to  form  limited  liability
  companies

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative intent. This bill  would  authorize  physicians
and  psychologists  to  form  limited  liability companies, professional
corporations and partnerships with one another. In the last two decades,
practice in and among the health  professions  has  changed.  Artificial
barriers  in  current  law  prohibit  multidisciplinary practices, which
prevents physicians and other providers, including  psychologists,  from
co-owning a practice and collaborating and coordinating on patient care.
Such  restraints  should  not  prevail, as they are no longer in keeping
with best practices in modern health care which espouse the  integration
of behavioral and physical health.
  S  2. Subdivision (a) of section 1203 of the limited liability company
law, as separately amended by chapters 420 and 676 of the laws of  2002,
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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03943-01-3

S. 3481                             2

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. 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 liabil-
ity 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,  architec-
tural  and/or  landscape  architectural  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.  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.    NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SECTION, WITH

S. 3481                             3

RESPECT TO A LIMITED LIABILITY COMPANY  FORMED  TO  PROVIDE  INTEGRATED,
MULTIDISCIPLINARY  MEDICAL  AND PSYCHOLOGICAL SERVICES, AS SUCH SERVICES
ARE RESPECTIVELY DEFINED UNDER ARTICLES 131 AND  153  OF  THE  EDUCATION
LAW,  (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE LICENSED
PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION LAW TO  PRACTICE
HIS  OR  HER PROFESSION IN THIS STATE, (II) EACH MEMBER SHALL ONLY PRAC-
TICE HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFES-
SIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE 153 OF  THE  EDUCA-
TION  LAW,  AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES
WITHIN AN INTEGRATED,  MULTIDISCIPLINARY  ENTITY  ORGANIZED  UNDER  THIS
SECTION  DOES  NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR  HER  RESPECTIVE
PROFESSIONAL  ENABLING  LAW, PROVIDED THAT:   (A) MEMBERS LICENSED UNDER
ARTICLE 153 OF THE EDUCATION LAW, SHALL  NOT,  DIRECTLY  OR  INDIRECTLY,
INTERFERE  WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF
A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B)  MEMBERS  LICENSED  UNDER
ARTICLE  131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLIN-
ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
UNDER ARTICLE 153, AND (C) INDIVIDUALS LICENSED UNDER  ARTICLE  131  MAY
NOT  ORDER  OR  DIRECT  A PROFESSIONAL LICENSED UNDER ARTICLE 153 OF THE
EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER  LICENSE  UNDER
ARTICLE  153  OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY OR INDI-
RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 3. Subdivision (b) of section 1207 of the limited liability  company
law,  as separately amended by chapters 420 and 676 of the laws of 2002,
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. 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 veter-
inary  medicine  in  this  state. With respect to a professional service
limited liability company formed to  provide  professional  engineering,
land surveying, architectural and/or landscape architectural 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

S. 3481                             4

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.   NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS  SECTION,
WITH  RESPECT TO A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY FORMED
TO  PROVIDE  INTEGRATED,  MULTIDISCIPLINARY  MEDICAL  AND  PSYCHOLOGICAL
SERVICES,  AS  SUCH SERVICES ARE RESPECTIVELY DEFINED UNDER ARTICLES 131
AND 153 OF THE EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED  LIABILITY
COMPANY  MUST  BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 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 ARTICLE 131 OR ARTI-
CLE 153 OF THE EDUCATION LAW, AND  (III)  THE  CLINICAL  INTEGRATION  OF
PROFESSIONAL  PRACTICES  WITHIN  AN INTEGRATED, MULTIDISCIPLINARY ENTITY
ORGANIZED UNDER THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE
OF PRACTICE OF ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF  HIS
OR HER RESPECTIVE PROFESSIONAL ENABLING LAW, PROVIDED THAT:  (A) MEMBERS
LICENSED  UNDER ARTICLE 153 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR
INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE  CLINICAL
PRACTICE  OF  A  PROFESSIONAL  LICENSED  UNDER  ARTICLE 131, (B) MEMBERS
LICENSED UNDER ARTICLE 131 SHALL NOT, DIRECTLY OR INDIRECTLY,  INTERFERE
WITH  THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFES-
SIONAL LICENSED UNDER ARTICLE 153, AND (C)  INDIVIDUALS  LICENSED  UNDER
ARTICLE  131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTI-
CLE 153 OF THE EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR  HER
LICENSE  UNDER  ARTICLE  153  OF  THE  EDUCATION LAW, EVEN IF SUPERVISED
DIRECTLY OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 4. Subdivision (a) of section 1301 of the limited liability  company
law,  as separately amended by chapters 420 and 676 of the laws of 2002,
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

S. 3481                             5

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
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.  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 educa-
tion  law to practice dentistry in this state. With respect to a foreign
professional service limited liability company  which  provides  profes-
sional  engineering,  land  surveying,  architectural  and/or  landscape
architectural 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 professional 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 prac-
tice creative 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 education 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
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

S. 3481                             6

SERVICE   LIMITED   LIABILITY  COMPANY  FORMED  TO  PROVIDE  INTEGRATED,
MULTI-DISCIPLINARY MEDICAL AND PSYCHOLOGICAL SERVICES, AS SUCH  SERVICES
ARE RESPECTIVELY DEFINED UNDER ARTICLE 131 AND ARTICLE 153 OF THE EDUCA-
TION  LAW,  (I)  EACH  MEMBER  OF SUCH LIMITED LIABILITY COMPANY MUST BE
LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 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  RESPEC-
TIVE  PROFESSIONAL  ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE 153 OF
THE EDUCATION LAW, AND (III) THE CLINICAL  INTEGRATION  OF  PROFESSIONAL
PRACTICES WITHIN AN INTEGRATED, MULTIDISCIPLINARY ENTITY ORGANIZED UNDER
THIS  SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF
ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER  RESPEC-
TIVE  PROFESSIONAL  ENABLING  LAW,  PROVIDED  THAT: (A) MEMBERS LICENSED
UNDER ARTICLE 153 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECT-
LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B) MEMBERS LICENSED UNDER
ARTICLE 131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE  CLIN-
ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
UNDER  ARTICLE  153,  AND (C) INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY
NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER  ARTICLE  153  OF  THE
EDUCATION  LAW  TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER
ARTICLE 153 OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY  OR  INDI-
RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 5. Paragraph (a) of section 1503 of the business corporation law, as
amended  by  chapter  550  of  the  laws  of 2011, 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 or land  surveying  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 DULY LICENSED TO PRACTICE MEDICINE AND ONE OR MORE
PSYCHOLOGISTS LICENSED UNDER ARTICLE  ONE  HUNDRED  FIFTY-THREE  OF  THE
EDUCATION  LAW,  WHO  MAY  BE BOARD CERTIFIED OR QUALIFIED BY HIS OR HER
RESPECTIVE PROFESSIONAL SPECIALTY BOARDS, MAY ORGANIZE, OR CAUSE  TO  BE
ORGANIZED,  FOR BUSINESS PURPOSES ONLY, A MULTIDISCIPLINARY PROFESSIONAL
SERVICE CORPORATION FORMED FOR PECUNIARY PROFIT UNDER THIS  ARTICLE  FOR
THE  PURPOSE  OF  RENDERING  INTEGRATED  AND NON-INTEGRATED PROFESSIONAL
SERVICES WITHIN SUCH A CORPORATION AS SUCH INDIVIDUALS ARE AUTHORIZED TO
PRACTICE INDIVIDUALLY IN HIS OR  HER  RESPECTIVE  PROFESSIONS,  PROVIDED
THAT THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES WITHIN AN ENTITY
ORGANIZED UNDER THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE
OF  PRACTICE OF ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS
OR HER RESPECTIVE PROFESSIONAL ENABLING LAW; THAT THE CLINICAL JUDGMENT,
MANAGEMENT AND CLINICAL DECISION-MAKING  OF  ONE  OR  MORE  ARTICLE  ONE
HUNDRED  THIRTY-ONE  PROVIDERS IN AN INTEGRATED, MULTIDISCIPLINARY PRAC-
TICE SHALL BE CONTROLLING;  THAT  MEMBERS  LICENSED  UNDER  ARTICLE  ONE
HUNDRED  FIFTY-THREE  OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDI-
RECTLY, INTERFERE WITH THE  CLINICAL  JUDGMENT  OR  LEGITIMATE  CLINICAL
PRACTICE   OF   A   PROFESSIONAL  LICENSED  UNDER  ARTICLE  ONE  HUNDRED

S. 3481                             7

THIRTY-ONE; AND THAT INDIVIDUALS  LICENSED  UNDER  ARTICLE  ONE  HUNDRED
THIRTY-ONE MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTICLE
ONE  HUNDRED  FIFTY-THREE  OF  THE  EDUCATION LAW TO PRACTICE BEYOND THE
SCOPE OF HIS OR HER LICENSE UNDER ARTICLE ONE HUNDRED FIFTY-THREE OF THE
EDUCATION  LAW IN A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY, EVEN
IF SUPERVISED DIRECTLY OR INDIRECTLY BY A  PROFESSIONAL  LICENSED  UNDER
ARTICLE ONE HUNDRED THIRTY-ONE.
  S  6.  Subdivision  (q) of section 121-1500 of the partnership law, as
separately amended by chapters 420 and 676  of  the  laws  of  2002,  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 partner of a registered limited  liability  partnership  formed  to
provide dental services in this state must be licensed pursuant to arti-
cle  133 of the education law to practice dentistry in this state.  Each
partner of a registered limited liability partnership formed to  provide
veterinary  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,  architectural  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  clinical  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 crea-
tive 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 article 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 REGISTERED LIMITED
LIABILITY PARTNERSHIP FORMED TO  PROVIDE  INTEGRATED,  MULTIDISCIPLINARY
MEDICAL  AND  PSYCHOLOGICAL  SERVICES, AS SUCH SERVICES ARE RESPECTIVELY
DEFINED UNDER ARTICLE 131 AND ARTICLE 153 OF THE EDUCATION LAW, (I) MUST
BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION  LAW
TO  PRACTICE  HIS OR HER PROFESSION IN THIS STATE, (II) SHALL ONLY PRAC-
TICE HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFES-
SIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE 153 OF  THE  EDUCA-
TION  LAW,  AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES
WITHIN AN INTEGRATED, MULTI-DISCIPLINARY  ENTITY  ORGANIZED  UNDER  THIS
SECTION  DOES  NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR  HER  RESPECTIVE
PROFESSIONAL  ENABLING  LAW,  PROVIDED  THAT: (A) MEMBERS LICENSED UNDER
ARTICLE 153 OF THE EDUCATION LAW, SHALL  NOT,  DIRECTLY  OR  INDIRECTLY,
INTERFERE  WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF
A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B)  MEMBERS  LICENSED  UNDER

S. 3481                             8

ARTICLE  131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLIN-
ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
UNDER ARTICLE 153, AND (C) INDIVIDUALS LICENSED UNDER  ARTICLE  131  MAY
NOT  ORDER  OR  DIRECT  A PROFESSIONAL LICENSED UNDER ARTICLE 153 OF THE
EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER  LICENSE  UNDER
ARTICLE  153  OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY OR INDI-
RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 7. Subdivision (q) of section 121-1502 of the  partnership  law,  as
amended  by  chapter  230  of  the  laws  of 2004, 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  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, architectural  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. Each partner of a foreign limited  liability  partner-
ship which provides licensed clinical social work services in this state
must  be  licensed pursuant to article 154 of the education law to prac-
tice licensed clinical social work in this  state.  Each  partner  of  a
foreign limited liability partnership which provides creative arts ther-
apy  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  partnership  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  liabil-
ity partnership which provides 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
foreign  limited  liability  partnership  which  provides 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  FOREIGN  LIMITED  LIABILITY PARTNERSHIP FORMED TO PROVIDE INTEGRATED,
MULTIDISCIPLINARY MEDICAL AND PSYCHOLOGICAL SERVICES, AS  SUCH  SERVICES
ARE  DEFINED  UNDER ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION LAW, (I)
MUST BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 153 OF THE EDUCATION
LAW TO PRACTICE HIS OR HER PROFESSION IN THIS  STATE,  (II)  SHALL  ONLY
PRACTICE  HIS  OR  HER  PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE
PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131 OR ARTICLE  153  OF  THE
EDUCATION  LAW, AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRAC-
TICES WITHIN AN INTEGRATED,  MULTIDISCIPLINARY  ENTITY  ORGANIZED  UNDER
THIS  SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF
ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER  RESPEC-
TIVE  PROFESSIONAL ENABLING LAW, PROVIDED THAT: (A) MEMBERS NOT LICENSED
UNDER ARTICLE 131 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECT-
LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, (B) MEMBERS LICENSED UNDER
ARTICLE 131 SHALL NOT, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE  CLIN-

S. 3481                             9

ICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED
UNDER  ARTICLE  153,  AND (C) INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY
NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER  ARTICLE  153  OF  THE
EDUCATION  LAW  TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER
ARTICLE 153 OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY  OR  INDI-
RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S  8. Subdivision 1 of section 2801 of the public health law, as sepa-
rately amended by chapters 297 and 416 of the laws of 1983,  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,  for  the
prevention,  diagnosis  or  treatment  of  human  disease, pain, injury,
deformity or physical condition, including, but not limited to, a gener-
al hospital, public health center, diagnostic center, treatment  center,
dental  clinic,  dental  dispensary,  rehabilitation center other than a
facility used solely for vocational rehabilitation, nursing home, tuber-
culosis hospital, chronic disease hospital, maternity  hospital,  lying-
in-asylum,  out-patient  department, out-patient lodge, dispensary and a
laboratory or central service facility serving one or more  such  insti-
tutions,  but  the term hospital shall not include an institution, sani-
tarium or other facility engaged principally in providing  services  for
the prevention, diagnosis or treatment of mental disability and which is
subject  to the powers of visitation, examination, inspection and inves-
tigation 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  religious  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
BUSINESS  CORPORATION,  LIMITED  LIABILITY  CORPORATION  OR  PARTNERSHIP
BETWEEN A MEDICAL DOCTOR AND A  DULY  LICENSED  HEALTHCARE  PROFESSIONAL
UNDER TITLE VIII OF THE EDUCATION LAW.
  S  9. 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 A PSYCHOLOGIST 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  practice,  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;
  S 10. This act shall take effect immediately.

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