senate Bill S6414

Permits doctors of chiropractic 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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actions

  • 22 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 12 / May / 2014
    • REPORTED AND COMMITTED TO HIGHER EDUCATION
  • 20 / May / 2014
    • 1ST REPORT CAL.863
  • 21 / May / 2014
    • 2ND REPORT CAL.
  • 28 / May / 2014
    • ADVANCED TO THIRD READING
  • 09 / Jun / 2014
    • PASSED SENATE
  • 09 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 09 / Jun / 2014
    • REFERRED TO HIGHER EDUCATION

Summary

Permits doctors of chiropractic to form limited liability companies.

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Bill Details

See Assembly Version of this Bill:
A5956A
Versions:
S6414
Legislative Cycle:
2013-2014
Current Committee:
Assembly Higher Education
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, 6509-a & 6531, Ed L
Versions Introduced in Previous Legislative Cycles:
2013-2014: S1940
2011-2012: S5012C, S5012C

Sponsor Memo

BILL NUMBER:S6414

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 doctors of chiropractic
licensed under title VIII, article 132 of the education law to form
limited liability companies

PURPOSE OR GENERAL IDEA OF BILL:

To amend the limited liability company law, the business corporation
law, the partnership law and the public health law to allow doctors of
chiropractic duly licensed under Title VIII, Article 132 of the
education law to form partnerships with medical doctors.

SUMMARY OF SPECIFIC PROVISIONS:

This legislation would amend § 1203(a) and § 1207(b) and § 1301(a) of
the limited liability law, 1503(a) of the business corporation law,
121-1500(q) and § 121-1502(q) of the partnership law and § 2801(l) of
the public health law to allow chiropractors licensed under Title
VIII, Article 132 of the education law. Amends section 6530 of the
Education law to make clear that such business entities would not be
prohibited from pooling fees.

JUSTIFICATION:

This bill would authorize physicians and chiropractors 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 law prohibiting
multidisciplinary practices, known as "integrative medicine," which
prevents physicians and other providers, including complementary and
alternative medicine (CAM) practitioners like chiropractors, from
co-owning a practice and collaborating and coordinating on patient
care are no longer valid and should not prevail.

While an integrative medical practice appears to be permissible on a
macro level, New York state law prohibits collaborative,
multidisciplinary practice ownership between physicians and
chiropractors. In New York, current law allows medical doctors to form
business entities only with other medical doctors. This law would not
prevent this practice. Instead, this law recognizes that as the nature
of health care changes, it is imperative that there be flexibility to
allow chiropractors, who are duly licensed, the ability to be a
co-owner or a joint, practice with physicians.

Currently, if a doctor of chiropractic wants to establish a practice
with a medical doctor, the doctor of chiropractic must give up their
independent practice and become an employee of the medical doctor.
This limits the business making decisions of both providers and thus
may limit the ability of patients to receive the most effective and
efficient healthcare. In today's health care milieu, such artificial
barriers to business relationships which inhibit care coordination and
collaboration are no longer tenable.


Having multiple health care providers in the same practice creates
ease of access, care coordination and collaboration that can only
benefit patients. This saves the patient precious time and resources
by allowing patient access to multiple health care services in one
location and practice.

This legislation is designed to clarify that each provider can
practice only within their respective scope of practice and
underscores that a doctor of chiropractic would not and could not be
in a position to make medical decisions for the practice as a whole.
Only the medical doctor can make medical decisions. In addition, this
legislation also makes clear that a medical doctor cannot order or
direct a chiropractor to practice outside of his or her scope, even if
supervised.

As the nature of health care continues to change, this legislation is
needed to allow practitioners to find ways to maintain healthy care
coordination and collaboration, and sustainable joint practices for
the benefit of patients.

PRIOR LEGISLATIVE HISTORY:

2013: Passed the Senate (S. 1940/A.5956)
2011-2012: Passed the Senate (S. 5012C/A.7403C)

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect on the thirtieth day after it shall have
became law.

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

                                  6414

                            I N  S E N A T E

                            January 22, 2014
                               ___________

Introduced  by  Sen. MARTINS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to amend the limited liability company law, the business corpo-
  ration law, the partnership law, the public health law and the  educa-
  tion  law,  in  relation  to allowing doctors of chiropractic licensed
  under title VIII, article 132 of the education  law  to  form  limited
  liability companies

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

  Section 1. Subdivision (a) of section 1203 of  the  limited  liability
company  law,  as amended by chapter 554 of the laws of 2013, 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. 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01399-03-4

S. 6414                             2

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. 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
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
RESPECT TO A LIMITED LIABILITY COMPANY  FORMED  TO  PROVIDE  INTEGRATED,
MULTIDISCIPLINARY  MEDICAL  AND  CHIROPRACTIC SERVICES, AS SUCH SERVICES
ARE RESPECTIVELY DEFINED UNDER ARTICLES 131 AND  132  OF  THE  EDUCATION
LAW,  (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE LICENSED
PURSUANT TO ARTICLE 131 OR ARTICLE 132 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 132 OF  THE  EDUCA-

S. 6414                             3

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)  THE  CLINICAL  JUDGMENT,
MANAGEMENT  AND  CLINICAL  DECISION-MAKING  OF  ONE  OR MORE ARTICLE 131
PROVIDERS  IN  AN  INTEGRATED,  MULTIDISCIPLINARY  PROFESSIONAL  SERVICE
LIMITED  LIABILITY  COMPANY  SHALL  BE CONTROLLING, (B) MEMBERS LICENSED
UNDER ARTICLE 132 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,  AND  (C)  INDIVIDUALS
LICENSED  UNDER  ARTICLE  131  MAY  NOT  ORDER  OR DIRECT A PROFESSIONAL
LICENSED UNDER ARTICLE 132 OF THE EDUCATION LAW TO PRACTICE  BEYOND  THE
SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 132 OF THE EDUCATION LAW, EVEN
IF  SUPERVISED  DIRECTLY  OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER
ARTICLE 131.
  S 2. Subdivision (b) of section 1207 of the limited liability  company
law,  as  amended by chapter 554 of the laws of 2013, 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
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

S. 6414                             4

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
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   CHIROPRACTIC
SERVICES,  AS  SUCH SERVICES ARE RESPECTIVELY DEFINED UNDER ARTICLES 131
AND 132 OF THE EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED  LIABILITY
COMPANY  MUST  BE LICENSED PURSUANT TO ARTICLE 131 OR ARTICLE 132 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 132 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) THE
CLINICAL JUDGMENT, MANAGEMENT AND CLINICAL  DECISION-MAKING  OF  ONE  OR
MORE  ARTICLE  131 PROVIDERS IN AN INTEGRATED, MULTIDISCIPLINARY PROFES-
SIONAL SERVICE LIMITED  LIABILITY  COMPANY  SHALL  BE  CONTROLLING,  (B)
MEMBERS  LICENSED  UNDER  ARTICLE  132  OF THE EDUCATION LAW, SHALL NOT,
DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR  LEGITI-
MATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, AND
(C)  INDIVIDUALS  LICENSED  UNDER  ARTICLE 131 MAY NOT ORDER OR DIRECT A
PROFESSIONAL LICENSED UNDER ARTICLE 132 OF THE EDUCATION LAW TO PRACTICE
BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 132 OF  THE  EDUCA-
TION  LAW,  EVEN  IF SUPERVISED DIRECTLY OR INDIRECTLY BY A PROFESSIONAL
LICENSED UNDER ARTICLE 131.
  S 3. Subdivision (a) of section 1301 of the limited liability  company
law,  as  amended by chapter 554 of the laws of 2013, 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

S. 6414                             5

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
service limited liability company which provides applied behavior analy-

S. 6414                             6

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.  WITH RESPECT TO A FOREIGN PROFESSIONAL SERVICE LIMITED LIABILITY
COMPANY FORMED TO PROVIDE  INTEGRATED,  MULTI-DISCIPLINARY  MEDICAL  AND
CHIROPRACTIC  SERVICES,  AS SUCH SERVICES ARE RESPECTIVELY DEFINED UNDER
ARTICLE 131 AND ARTICLE 132 OF THE EDUCATION LAW,  (I)  EACH  MEMBER  OF
SUCH  LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131
OR ARTICLE 132 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 ARTICLE 132 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  ENABL-
ING  LAW, PROVIDED THAT: (A) THE CLINICAL JUDGMENT, MANAGEMENT AND CLIN-
ICAL DECISION-MAKING OF ONE OR MORE ARTICLE 131 PROVIDERS  IN  AN  INTE-
GRATED, MULTIDISCIPLINARY PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY
SHALL  BE  CONTROLLING,  (B)  MEMBERS  LICENSED UNDER ARTICLE 132 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, AND (C) INDIVIDUALS LICENSED  UNDER  ARTICLE
131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTICLE 132 OF
THE  EDUCATION  LAW  TO  PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE
UNDER ARTICLE 132 OF THE EDUCATION LAW, EVEN IF SUPERVISED  DIRECTLY  OR
INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 4. 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
CHIROPRACTORS LICENSED UNDER ARTICLE 132 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  INDI-
VIDUALLY  IN  HIS OR HER RESPECTIVE PROFESSIONS, PROVIDED THAT THE CLIN-
ICAL INTEGRATION OF PROFESSIONAL PRACTICES WITHIN  AN  ENTITY  ORGANIZED
UNDER  THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRAC-
TICE 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  131

S. 6414                             7

PROVIDERS IN AN INTEGRATED, MULTIDISCIPLINARY PRACTICE SHALL BE CONTROL-
LING;  THAT  MEMBERS  LICENSED  UNDER  ARTICLE 132 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;  AND  THAT  INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY NOT ORDER OR
DIRECT A PROFESSIONAL LICENSED UNDER ARTICLE 132 OF THE EDUCATION LAW TO
PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 132 OF THE
EDUCATION LAW IN A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY,  EVEN
IF  SUPERVISED  DIRECTLY  OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER
ARTICLE 131.
  S 5. Subdivision (q) of section 121-1500 of the  partnership  law,  as
amended  by  chapter  554  of  the  laws  of 2013, 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  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.   EACH PARTNER OF  A  REGISTERED  LIMITED  LIABILITY  PARTNERSHIP
FORMED TO PROVIDE INTEGRATED, MULTIDISCIPLINARY MEDICAL AND CHIROPRACTIC
SERVICES,  AS  SUCH  SERVICES ARE RESPECTIVELY DEFINED UNDER ARTICLE 131
AND ARTICLE 132 OF THE EDUCATION LAW, (I) MUST BE LICENSED  PURSUANT  TO
ARTICLE  131  OR ARTICLE 132 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 132 OF THE EDUCATION LAW, AND (III) THE
CLINICAL INTEGRATION OF PROFESSIONAL  PRACTICES  WITHIN  AN  INTEGRATED,

S. 6414                             8

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 ENABL-
ING  LAW, PROVIDED THAT: (A) THE CLINICAL JUDGMENT, MANAGEMENT AND CLIN-
ICAL DECISION-MAKING OF ONE OR MORE ARTICLE 131 PROVIDERS  IN  AN  INTE-
GRATED, MULTIDISCIPLINARY PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY
SHALL  BE  CONTROLLING,  (B)  MEMBERS  LICENSED UNDER ARTICLE 132 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, AND (C) INDIVIDUALS LICENSED  UNDER  ARTICLE
131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTICLE 132 OF
THE  EDUCATION  LAW  TO  PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE
UNDER ARTICLE 132 OF THE EDUCATION LAW, EVEN IF SUPERVISED  DIRECTLY  OR
INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S  6.  Subdivision  (q) of section 121-1502 of the partnership law, as
amended by chapter 554 of the laws  of  2013,  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 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 analy-
sis in this state.  EACH PARTNER OF A FOREIGN LIMITED LIABILITY PARTNER-
SHIP FORMED TO PROVIDE INTEGRATED, MULTIDISCIPLINARY MEDICAL AND CHIROP-
RACTIC SERVICES, AS SUCH SERVICES  ARE  DEFINED  UNDER  ARTICLE  131  OR
ARTICLE 132 OF THE EDUCATION LAW, (I) MUST BE LICENSED PURSUANT TO ARTI-
CLE  131  OR  ARTICLE  132  OF  THE EDUCATION LAW TO PRACTICE HIS OR HER
PROFESSION IN THIS STATE, (II) SHALL ONLY PRACTICE HIS OR HER PROFESSION

S. 6414                             9

AS SPECIFIED IN HIS OR  HER  RESPECTIVE  PROFESSIONAL  ENABLING  STATUTE
UNDER  ARTICLE  131  OR  ARTICLE 132 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 ENABL-
ING LAW, PROVIDED THAT: (A) THE CLINICAL JUDGMENT, MANAGEMENT AND  CLIN-
ICAL  DECISION-MAKING  OF  ONE OR MORE ARTICLE 131 PROVIDERS IN AN INTE-
GRATED, MULTIDISCIPLINARY PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY
SHALL BE CONTROLLING, (B) MEMBERS NOT LICENSED UNDER ARTICLE 131 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, AND (C) INDIVIDUALS LICENSED UNDER ARTICLE
131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER ARTICLE 132 OF
THE EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF  HIS  OR  HER  LICENSE
UNDER  ARTICLE  132 OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY OR
INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 7. 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 TITLE VIII HEALTHCARE
PROFESSIONAL.
  S 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 A CHIROPRACTOR  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

S. 6414                            10

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 9. Section 6509-a of the education law, as amended by chapter 555 of
the laws of 1993, is amended to read as follows:
  S 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,
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  MEDICAL AND CHIROPRACTIC PRACTICE
FORMED PURSUANT TO SUBDIVISION (A) OR  (B)  OF  SECTION  TWELVE  HUNDRED
THREE  OF  THE LIMITED LIABILITY COMPANY LAW, SUBDIVISION (A) OF SECTION

S. 6414                            11

THIRTEEN HUNDRED ONE OF THE LIMITED LIABILITY COMPANY LAW, PARAGRAPH (A)
OF SECTION FIFTEEN HUNDRED THREE OF THE BUSINESS CORPORATION LAW, SUBDI-
VISION (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 indem-
nity  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 10. Section 6531 of the education law, as amended by chapter 555  of
the laws of 1993, is amended to read as follows:
  S 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
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

S. 6414                            12

CONTAINED IN THIS SECTION, SHALL PROHIBIT  A  MULTIDISCIPLINARY  MEDICAL
AND  CHIROPRACTIC  PRACTICE FORMED PURSUANT TO SUBDIVISION (A) OR (B) OF
SECTION TWELVE HUNDRED THREE  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 BUSI-
NESS  CORPORATION  LAW, SUBDIVISION (Q) OF SECTION 121-1500 OF THE PART-
NERSHIP 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 prorationing 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.
  S 11. This act shall take effect on the thirtieth day after  it  shall
have became a law.

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