senate Bill S2932A

2011-2012 Legislative Session

Authorizes physicians, optometrists and ophthalmic dispensers to establish professional service corporations, limited liability companies and registered partnerships

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 27, 2012 print number 2932a
amend and recommit to corporations, authorities and commissions
Jan 04, 2012 referred to corporations, authorities and commissions
Feb 03, 2011 referred to corporations, authorities and commissions

Bill Amendments

Original
A (Active)
Original
A (Active)

S2932 - Bill Details

See Assembly Version of this Bill:
A58A
Current Committee:
Law Section:
Business Corporation Law
Laws Affected:
Amd §§1503 & 1529, BC L; amd §§1203, 1207 & 1301, Lim Lil L; amd §§121-1500 & 121-1502, Partn L
Versions Introduced in 2009-2010 Legislative Session:
S3101, A5879

S2932 - Bill Texts

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Authorizes physicians, optometrists and ophthalmic dispensers to join together to establish professional service corporations, limited liability companies and registered limited liability partnerships.

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BILL NUMBER:S2932

TITLE OF BILL:
An act
to amend the business corporation law, the limited liability company
law and the partnership law,
in relation to authorizing certain health care providers to form
professional service entities

PURPOSE:
To authorize persons licensed to practice medicine, optometry and/or
ophthalmic dispensing to jointly establish practices that provide a
broader range of professional medical services.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Business Corporation Law § 1503(a)
to authorize one or more individuals licensed in New York State to
practice medicine, optometry or ophthalmic, dispensing to organize a
professional service corporation.

Section 2 would amend Business Corporation Law § 1529 to provide that
foreign professional service corporations organized to practice
ophthalmology, optometry and/or ophthalmic dispensing shall not be
authorized to be a member or partner of a professional service
limited liability company, a foreign professional service limited
liability company, a registered limited liability partnership or a
foreign limited liability partnership unless all of its shareholders,
directors and officers are licensed to practice medicine, optometry,
and/or ophthalmic dispensing in this state.

Section 3 would amend Limited Liability Company Law § 1203(a) to
authorize individuals providing ophthalmologic, optometric or
ophthalmic dispensing services to organize a professional service
limited liability company, provided they are licensed to practice
medicine, optometry and/or ophthalmic dispensing.

Section 4 would amend Limited Liability Company Law § 1207(b) to
authorize individuals providing ophthalmologic, optometric or
ophthalmic dispensing services to organize a professional service
limited liability company, provided they are licensed to practice
medicine, optometry and/or ophthalmic dispensing.

Section 5 would amend Limited Liability Company Law § 1301(a) to
authorize individuals providing ophthalmologic, optometric or
ophthalmic dispensing services to organize a foreign professional
service limited liability company, provided they are licensed to
practice medicine, optometry and/or ophthalmic dispensing.

Section 6 would amend Partnership Law § 121-1500(q) to authorize
individuals providing ophthalmologic, optometric or ophthalmic
dispensing services to organize a registered limited liability
partnership, provided they are licensed to practice medicine,
optometry and/or ophthalmic dispensing.

Section 7 would amend Partnership Law § 121-1502( q) to authorize
individuals providing ophthalmologic, optometric or ophthalmic


dispensing services to organize a foreign limited liability
partnership, provided they are licensed to practice medicine,
optometry and/or ophthalmic dispensing.

Section 8 provides the effective date.

EXISTING LAW:
Current law provides that one or more individuals who render the same
professional service may organize a professional service corporation.
In addition, while the law generally permits members of different
professions to form a single professional limited liability company
or partnership, the statute currently prohibits certain
professionals, including physicians, from forming limited liability
entities with licensed professionals from other disciplines.

JUSTIFICATION:
The purpose of this bill is to authorize these separately licensed
professionals - ophthalmologists, optometrists, and ophthalmic
dispensers - to join together to own and operate a single
professional practice where patients can seek treatment and care. A
number of multi-disciplinary practices have already been established
throughout the State that permit "one-stop" shopping for eye care
services.
Practitioners who have entered into these practices believe patients
may benefit from being able to access the full array of eye care
services at a single location, where an ophthalmologist, an
optometrist and an ophthalmic dispenser (or optician) practice
collaboratively. Although these practitioners are currently permitted
to practice together, current law precludes physicians (including
ophthalmologists) from entering into practices that would be jointly
owned with other professionals, such as optometrists and opticians.

The current law is unreasonably restrictive and serves no legitimate
public purpose. There is no evidence that jointly owned practices are
any less committed to the best interests of their patients than
single profession-owned practices or existing multi-disciplinary
practices. In the absence of any legitimate public health or patient
protection concern, the decision whether health care professionals
should jointly own a practice is properly a decision for the relevant
professionals. This bill would not require professionals to form
multi-disciplinary professional corporations or limited liability
companies or partnerships, and many professionals from each of these
licensing categories may prefer to maintain separate practices. This
bill would merely remove an artificial impediment to joint ownership
and permit those who would choose to provide their professional
services in a collaboratively owned and operated practice to do so,
consistent with a growing majority of other states.

This bill would make New York law consistent with the practice in at
least twenty-six other states, including New Jersey, Ohio,
Massachusetts, Pennsylvania, Connecticut and New Hampshire, which
allow optometrists to form professional corporations with other
health care professionals. As the trend to authorize such
multi-disciplinary professional corporations among health care
professionals increases particularly in the northeast United States -
it is vital that New York continue its national leadership in


providing these professionals with the option to form practices that
may be best suited to meeting the needs of their patients.

LEGISLATIVE HISTORY:
2008: S.7269

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                  2932

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 3, 2011
                               ___________

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

AN  ACT  to  amend  the  business corporation law, the limited liability
  company law and  the  partnership  law,  in  relation  to  authorizing
  certain health care providers to form professional service entities

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

  Section 1. Paragraph (a) of section 1503 of the  business  corporation
law,  as added by chapter 974 of the laws of 1970, is amended to read as
follows:
  (a) Notwithstanding any other provision of law, one or  more  individ-
uals  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]  PROVIDED
that  one or more individuals duly authorized by law to practice profes-
sional engineering, architecture, landscape architecture or land survey-
ing within the state may organize, or cause to be organized,  a  profes-
sional  service  corporation for pecuniary profit under this article for
the purpose of rendering such professional services as such  individuals
are  authorized  to  practice,  AND,  FURTHER, PROVIDED THAT ONE OR MORE
INDIVIDUALS DULY LICENSED BY LAW TO PRACTICE MEDICINE AND WHO ARE CERTI-
FIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND INDIVIDUALS LICENSED BY
LAW TO PRACTICE OPTOMETRY AND/OR OPHTHALMIC DISPENSING WITHIN THE  STATE
MAY  ORGANIZE,  OR  CAUSE TO BE ORGANIZED, A PROFESSIONAL SERVICE CORPO-
RATION FOR PECUNIARY PROFIT  UNDER  THIS  ARTICLE  FOR  THE  PURPOSE  OF
RENDERING  PROFESSIONAL  SERVICES  AS SUCH INDIVIDUALS ARE AUTHORIZED TO
PRACTICE.
  S 2. Section 1529 of the business corporation law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01173-01-1

S. 2932                             2

S 1529. Business corporation law applicable.
  Except for the provisions of sections thirteen hundred three, thirteen
hundred  four,  thirteen hundred sixteen, thirteen hundred seventeen and
thirteen hundred twenty, this chapter shall be applicable to  a  foreign
professional service corporation to the extent that the provisions ther-
eof  are  not in conflict with the provisions of this article. A foreign
professional service corporation may practice  in  this  state,  or  may
consolidate  or  merge with another corporation, or may be a member of a
professional service limited liability company, a  foreign  professional
service  limited liability company, a registered limited liability part-
nership or foreign limited liability partnership, only  if  all  of  the
professions  practiced by such corporations, limited liability companies
or limited liability partnerships could be practiced by a single profes-
sional service corporation organized in this state; and,  further,  only
if such foreign professional service corporation is domiciled in a state
or  territory  of  the  United  States the laws of which, at the time of
application by such corporation under section fifteen hundred thirty  of
this  article,  contain  a reciprocal provision under which professional
service corporations domiciled in this state may similarly apply for the
privilege of doing business in any such state  or  territory[;  provided
further however, that nothing herein].
  (A)  NOTHING  IN  THIS  SECTION shall authorize a foreign professional
service corporation practicing professional engineering, land surveying,
architecture and/or landscape architecture to be a member or partner  of
a professional service limited liability company, a foreign professional
service  limited liability company, a registered limited liability part-
nership or a foreign limited liability partnership  unless  all  of  the
shareholders,  directors  and  officers  of  such  foreign  professional
service corporation are  licensed  to  practice  one  or  more  of  such
professions in this state.
  (B)  NOTHING  IN  THIS  SECTION SHALL AUTHORIZE A FOREIGN PROFESSIONAL
SERVICE CORPORATION ORGANIZED TO PRACTICE MEDICINE WITH OPTOMETRY AND/OR
OPHTHALMIC DISPENSING TO BE  A  MEMBER  OR  PARTNER  OF  A  PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, A FOREIGN PROFESSIONAL SERVICE LIMIT-
ED  LIABILITY  COMPANY,  A REGISTERED LIMITED LIABILITY PARTNERSHIP OR A
FOREIGN LIMITED LIABILITY PARTNERSHIP UNLESS ALL  OF  THE  SHAREHOLDERS,
DIRECTORS  AND OFFICERS OF SUCH FOREIGN PROFESSIONAL SERVICE CORPORATION
ARE LICENSED TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS IN THIS  STATE;
PROVIDED, HOWEVER, THAT ANY SHAREHOLDER, DIRECTOR OR OFFICER LICENSED TO
PRACTICE  MEDICINE IN THIS STATE SHALL ALSO BE CERTIFIED BY THE AMERICAN
BOARD OF OPHTHALMOLOGY.
  S 3. 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-
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

S. 2932                             3

this state; PROVIDED, HOWEVER,  THAT  WITH  RESPECT  TO  A  PROFESSIONAL
SERVICE  LIMITED  LIABILITY  COMPANY  FORMED TO PROVIDE MEDICAL SERVICES
DEFINED IN ARTICLE 131 OF THE EDUCATION LAW  WITH  SERVICES  DEFINED  IN
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, EACH MEMBER OF SUCH
LIMITED  LIABILITY  COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND
CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSU-
ANT TO ARTICLE 143 AND/OR ARTICLE 144 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  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 educa-
tion law to practice veterinary medicine in this state. With respect  to
a  professional  service  limited  liability  company  formed to provide
professional engineering, land surveying, architectural 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 profes-
sional service limited liability company formed to provide creative arts
therapy services as such services are defined  in  article  163  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 163 of the education law to practice  crea-
tive  arts therapy in this state. With respect to a professional service
limited liability company formed to provide marriage and family  therapy
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  163 of the education law to practice marriage and
family therapy in this state. With respect  to  a  professional  service
limited  liability  company  formed  to provide mental health counseling
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to practice  mental  health
counseling in this state. With respect to a professional service limited
liability  company  formed  to  provide  psychoanalysis services as such
services are defined in article 163 of the education law, each member of
such limited liability company must be licensed pursuant to article  163
of  the education law to practice psychoanalysis in this state. In addi-
tion 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

S. 2932                             4

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 divi-
sion of the supreme court or the court of appeals.
  S  4. 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; PROVIDED, HOWEVER, THAT WITH RESPECT TO
A  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY  FORMED TO PROVIDE
SERVICES DEFINED IN ARTICLE 131  OF  THE  EDUCATION  LAW  WITH  SERVICES
DEFINED  IN  ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW, EACH
MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE  LICENSED  PURSUANT  TO
ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR
LICENSED PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 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
dental services as such services are  defined  in  article  133  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article  133  of  the  education  law  to  practice
dentistry  in this state. With respect to a professional service limited
liability company formed to provide veterinary services as such services
are defined in article 135 of the education law,  each  member  of  such
limited  liability  company  must be licensed pursuant to article 135 of
the education law to practice veterinary medicine in  this  state.  With
respect  to  a  professional service limited liability company formed to
provide professional engineering, land surveying,  architectural  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  profes-
sional service limited liability company formed to provide creative arts
therapy  services  as  such  services  are defined in article 163 of the
education law, each member of such limited  liability  company  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state. With respect to a professional  service
limited  liability company formed to provide marriage and family therapy
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to  practice  marriage  and
family  therapy  in  this  state. With respect to a professional service
limited liability company formed to  provide  mental  health  counseling
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article 163 of the education law to practice mental health
counseling in this state. With respect to a professional service limited
liability company formed to  provide  psychoanalysis  services  as  such
services are defined in article 163 of the education law, each member of

S. 2932                             5

such  limited liability company must be licensed pursuant to article 163
of the education law to practice psychoanalysis in this state.
  S  5. 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
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; PROVIDED, HOWEVER,
THAT WITH RESPECT TO A FOREIGN PROFESSIONAL  SERVICE  LIMITED  LIABILITY
COMPANY  FORMED TO PROVIDE SERVICES DEFINED IN ARTICLE 131 OF THE EDUCA-
TION LAW WITH SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF  THE
EDUCATION  LAW, EACH MEMBER OF SUCH FOREIGN PROFESSIONAL SERVICE LIMITED
LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED
BY THE AMERICAN BOARD OF  OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT  TO
ARTICLE  143  AND/OR ARTICLE 144 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 dental
services as such services are defined in article 133  of  the  education
law,  each member of such foreign professional service limited liability
company must be licensed pursuant to article 133 of the education law to
practice dentistry in this state. With respect to a foreign professional
service limited liability company which provides professional  engineer-
ing,   land  surveying,  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 profes-
sional service limited liability company must be  licensed  pursuant  to
article  145,  article  147  and/or  article 148 of the education law to

S. 2932                             6

practice one or more of such professions in this state. With respect  to
a  foreign professional service limited liability company which provides
licensed clinical social work services as such services are  defined  in
article  154  of  the education law, each member of such foreign profes-
sional service limited liability company shall be licensed  pursuant  to
article  154  of  the  education law to practice clinical social work in
this state. With respect  to  a  foreign  professional  service  limited
liability  company which provides creative arts therapy services as such
services are defined in article 163 of the education law, each member of
such foreign professional service  limited  liability  company  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state. With respect to a foreign  professional
service  limited  liability  company  which provides marriage and family
therapy services as such services are defined  in  article  163  of  the
education  law, each member of such foreign professional service limited
liability company must be licensed pursuant to article 163 of the educa-
tion law to practice marriage and family therapy  in  this  state.  With
respect  to  a  foreign  professional  service limited liability company
which provides mental health counseling services as  such  services  are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
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.
  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;
PROVIDED, HOWEVER, THAT WITH RESPECT TO A REGISTERED  LIMITED  LIABILITY
PARTNERSHIP  FORMED  TO  PROVIDE  SERVICES DEFINED IN ARTICLE 131 OF THE
EDUCATION LAW WITH SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF
THE EDUCATION LAW, EACH MEMBER  OF  SUCH  REGISTERED  LIMITED  LIABILITY
PARTNERSHIP  MUST  BE  LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY
THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSUANT TO ARTICLE
143 AND/OR ARTICLE 144 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  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  engineer-
ing,   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 part-

S. 2932                             7

ner of a registered limited  liability  partnership  formed  to  provide
creative  arts  therapy services in this state must be licensed pursuant
to article 163 of the education law to practice creative arts therapy in
this  state.  Each partner of a registered limited liability partnership
formed to provide marriage and family therapy  services  in  this  state
must  be  licensed pursuant to article 163 of the education law to prac-
tice marriage and family therapy in this state. Each partner of a regis-
tered 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 pursu-
ant  to  article  163 of the education law to practice psychoanalysis in
this state.
  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; PROVIDED,  HOWEV-
ER,  THAT WITH RESPECT TO A FOREIGN LIMITED LIABILITY PARTNERSHIP FORMED
TO PROVIDE SERVICES DEFINED IN ARTICLE 131 OF  THE  EDUCATION  LAW  WITH
SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW,
EACH  MEMBER  OF  SUCH  FOREIGN  LIMITED  LIABILITY  PARTNERSHIP MUST BE
LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD  OF
OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT TO ARTICLE 143 AND/OR ARTICLE
144 OF THE EDUCATION LAW TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS  IN
THIS  STATE.    Each  partner of a foreign limited liability partnership
which provides veterinary service in the state shall be licensed  pursu-
ant  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 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. Each partner of a
foreign limited liability partnership which provides  licensed  clinical
social  work services in this state must be licensed pursuant to article
154 of the education law to practice licensed clinical  social  work  in
this  state.  Each  partner  of  a foreign limited liability partnership
which provides creative arts therapy services  in  this  state  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive 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 liability partnership  which  provides
mental  health counseling services in this state must be licensed pursu-
ant to article 163 of the education law to practice mental health  coun-
seling  in this state. Each partner of a foreign limited liability part-
nership which provides psychoanalysis services in  this  state  must  be
licensed  pursuant  to  article  163  of  the  education law to practice
psychoanalysis in this state.
  S 8. This act shall take effect immediately.

S2932A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A58A
Current Committee:
Law Section:
Business Corporation Law
Laws Affected:
Amd §§1503 & 1529, BC L; amd §§1203, 1207 & 1301, Lim Lil L; amd §§121-1500 & 121-1502, Partn L
Versions Introduced in 2009-2010 Legislative Session:
S3101, A5879

S2932A (ACTIVE) - Bill Texts

view summary

Authorizes physicians, optometrists and ophthalmic dispensers to join together to establish professional service corporations, limited liability companies and registered limited liability partnerships.

view sponsor memo
BILL NUMBER:S2932A

TITLE OF BILL:
An act
to amend the business corporation law, the limited liability company
law and the partnership law,
in relation to authorizing certain health care providers to form
professional service entities

PURPOSE:
To authorize persons licensed to practice medicine, optometry and/or
ophthalmic dispensing to jointly establish practices that provide a
broader range of professional medical services.

SUMMARY OF PROVISIONS:
Section 1 of the bill would amend Business Corporation Law § 1503(a)
to authorize one or more individuals licensed in New York State to
practice medicine, optometry or ophthalmic, dispensing to organize a
professional service corporation.

Section 2 would amend Business Corporation Law § 1529 to provide that
foreign professional service corporations organized to practice
ophthalmology, optometry and/or ophthalmic dispensing shall not be
authorized to be a member or partner of a professional service
limited liability company, a foreign professional service limited
liability company, a registered limited liability partnership or a
foreign limited liability partnership unless all of its shareholders,
directors and officers are licensed to practice medicine, optometry,
and/or ophthalmic dispensing in this state.

Section 3 would amend Limited Liability Company Law § 1203(a) to
authorize individuals providing ophthalmologic, optometric or
ophthalmic dispensing services to organize a professional service
limited liability company, provided they are licensed to practice
medicine, optometry and/or ophthalmic dispensing.

Section 4 would amend Limited Liability Company Law § 1207(b) to
authorize individuals providing ophthalmologic, optometric or
ophthalmic dispensing services to organize a professional service
limited liability company, provided they are licensed to practice
medicine, optometry and/or ophthalmic dispensing.

Section 5 would amend Limited Liability Company Law § 1301 (a) to
authorize individuals providing ophthalmologic, optometric or
ophthalmic dispensing services to organize a foreign professional
service limited liability company, provided they are licensed to
practice medicine, optometry and/or ophthalmic dispensing.

Section 6 would amend Partnership Law § 121-1500( q) to authorize
individuals providing ophthalmologic, optometric or ophthalmic
dispensing services to organize a registered limited liability

partnership, provided they are licensed to practice medicine,
optometry and/or ophthalmic dispensing.

Section 7 would amend Partnership Law § 121-1502(q) to authorize
individuals providing ophthalmologic, optometric or ophthalmic
dispensing services to organize a foreign limited liability
partnership, provided they are licensed to practice medicine,
optometry and/or ophthalmic dispensing.

Section 8 provides the effective date.

EXISTING LAW:
Current law provides that one or more individuals who render the same
professional service may organize a professional service corporation.
In addition, while the law generally permits members of different
professions to form a single professional limited liability company
or partnership, the statute currently prohibits certain
professionals, including physicians, from forming limited liability
entities with licensed professionals from other disciplines.

JUSTIFICATION:
The purpose of this bill is to authorize these separately licensed
professionals - ophthalmologists, optometrists, and ophthalmic
dispensers - to join together to own and operate a single
professional practice where patients can seek treatment and care. A
number of multi-disciplinary practices have already been established
throughout the State that permit "one-stop" shopping for eye care
services.
Practitioners who have entered into these practices believe patients
may benefit from being able to access the full array of eye care
services at a single location, where an ophthalmologist, an
optometrist and an ophthalmic dispenser (or optician) practice
collaborative/y. Although these practitioners are currently permitted
to practice together, current law precludes physicians (including
ophthalmologists) from entering into practices that would be jointly
owned with other professionals, such as optometrists and opticians.

The current law is unreasonably restrictive and serves no legitimate
public purpose. There is no evidence that jointly owned practices are
any less committed to the best interests of their patients than
single profession-owned practices or existing multi-disciplinary
practices. In the absence of any legitimate public health or patient
protection concern, the decision whether health care professionals
should jointly own a practice is properly a decision for the relevant
professionals. This bill would not require professionals to form
multi-disciplinary professional corporations or limited liability
companies or partnerships, and many professionals from each of these
licensing categories may prefer to maintain separate practices. This
bill would merely remove an artificial impediment to joint ownership
and permit those who would choose to provide their professional
services in a collaboratively owned and operated practice to do so,
consistent with a growing majority of other states.

This bill would make New York law consistent with the practice in at
least twenty-six other states, including New Jersey, Ohio,
Massachusetts, Pennsylvania, Connecticut and New Hampshire, which
allow optometrists to form professional corporations with other
health care professionals. As the trend to authorize such
multi-disciplinary professional corporations among health care
professionals increases _ particularly in the northeast United States
- it is vital that New York continue its national leadership in
providing these professionals with the option to form practices that
may be best suited to meeting the needs of their patients.

LEGISLATIVE HISTORY:
2008: S.7269

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                 2932--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 3, 2011
                               ___________

Introduced  by  Sen. JOHNSON -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and  Commissions  --  recommitted  to  the  Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the business  corporation  law,  the  limited  liability
  company  law  and  the  partnership  law,  in  relation to authorizing
  certain health care providers to form professional service entities

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

  Section  1.  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, one or more individ-
uals 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] PROVIDED
that one or more individuals duly authorized by law to practice  profes-
sional engineering, architecture, landscape architecture or land survey-
ing  within  the state may organize, or cause to be organized, a profes-
sional 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  prac-
tice,  AND, FURTHER, PROVIDED THAT ONE OR MORE INDIVIDUALS DULY LICENSED
BY LAW TO PRACTICE MEDICINE AND WHO ARE CERTIFIED BY THE AMERICAN  BOARD
OF  OPHTHALMOLOGY, AND INDIVIDUALS LICENSED BY LAW TO PRACTICE OPTOMETRY
AND/OR OPHTHALMIC DISPENSING WITHIN THE STATE MAY ORGANIZE, OR CAUSE  TO
BE  ORGANIZED,  A  PROFESSIONAL SERVICE CORPORATION FOR PECUNIARY PROFIT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01173-02-2

S. 2932--A                          2

UNDER THIS ARTICLE FOR THE PURPOSE OF RENDERING PROFESSIONAL SERVICES AS
SUCH INDIVIDUALS ARE AUTHORIZED TO PRACTICE.
  S 2. Section 1529 of the business corporation law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:
S 1529. Business corporation law applicable.
  Except for the provisions of sections thirteen hundred three, thirteen
hundred  four,  thirteen hundred sixteen, thirteen hundred seventeen and
thirteen hundred twenty, this chapter shall be applicable to  a  foreign
professional service corporation to the extent that the provisions ther-
eof  are  not in conflict with the provisions of this article. A foreign
professional service corporation may practice  in  this  state,  or  may
consolidate  or  merge with another corporation, or may be a member of a
professional service limited liability company, a  foreign  professional
service  limited liability company, a registered limited liability part-
nership or foreign limited liability partnership, only  if  all  of  the
professions  practiced by such corporations, limited liability companies
or limited liability partnerships could be practiced by a single profes-
sional service corporation organized in this state; and,  further,  only
if such foreign professional service corporation is domiciled in a state
or  territory  of  the  United  States the laws of which, at the time of
application by such corporation under section fifteen hundred thirty  of
this  article,  contain  a reciprocal provision under which professional
service corporations domiciled in this state may similarly apply for the
privilege of doing business in any such state  or  territory[;  provided
further however, that nothing herein].
  (A)  NOTHING  IN  THIS  SECTION shall authorize a foreign professional
service corporation practicing professional engineering, land surveying,
architecture and/or landscape architecture to be a member or partner  of
a professional service limited liability company, a foreign professional
service  limited liability company, a registered limited liability part-
nership or a foreign limited liability partnership  unless  all  of  the
shareholders,  directors  and  officers  of  such  foreign  professional
service corporation are  licensed  to  practice  one  or  more  of  such
professions in this state.
  (B)  NOTHING  IN  THIS  SECTION SHALL AUTHORIZE A FOREIGN PROFESSIONAL
SERVICE CORPORATION ORGANIZED TO PRACTICE MEDICINE WITH OPTOMETRY AND/OR
OPHTHALMIC DISPENSING TO BE  A  MEMBER  OR  PARTNER  OF  A  PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, A FOREIGN PROFESSIONAL SERVICE LIMIT-
ED  LIABILITY  COMPANY,  A REGISTERED LIMITED LIABILITY PARTNERSHIP OR A
FOREIGN LIMITED LIABILITY PARTNERSHIP UNLESS ALL  OF  THE  SHAREHOLDERS,
DIRECTORS  AND OFFICERS OF SUCH FOREIGN PROFESSIONAL SERVICE CORPORATION
ARE LICENSED TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS IN THIS  STATE;
PROVIDED, HOWEVER, THAT ANY SHAREHOLDER, DIRECTOR OR OFFICER LICENSED TO
PRACTICE  MEDICINE IN THIS STATE SHALL ALSO BE CERTIFIED BY THE AMERICAN
BOARD OF OPHTHALMOLOGY.
  S 3. 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-

S. 2932--A                          3

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; PROVIDED, HOWEVER,  THAT  WITH  RESPECT  TO  A  PROFESSIONAL
SERVICE  LIMITED  LIABILITY  COMPANY  FORMED TO PROVIDE MEDICAL SERVICES
DEFINED IN ARTICLE 131 OF THE EDUCATION LAW  WITH  SERVICES  DEFINED  IN
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, EACH MEMBER OF SUCH
LIMITED  LIABILITY  COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND
CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSU-
ANT TO ARTICLE 143 AND/OR ARTICLE 144 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  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 educa-
tion law to practice veterinary medicine in this state. With respect  to
a  professional  service  limited  liability  company  formed to provide
professional engineering, land surveying, architectural 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 profes-
sional service limited liability company formed to provide creative arts
therapy services as such services are defined  in  article  163  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 163 of the education law to practice  crea-
tive  arts therapy in this state. With respect to a professional service
limited liability company formed to provide marriage and family  therapy
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  163 of the education law to practice marriage and
family therapy in this state. With respect  to  a  professional  service
limited  liability  company  formed  to provide mental health counseling
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to practice  mental  health
counseling in this state. With respect to a professional service limited
liability  company  formed  to  provide  psychoanalysis services as such
services are defined in article 163 of the education law, each member of
such limited liability company must be licensed pursuant to article  163
of  the education law to practice psychoanalysis in this state. In addi-
tion 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

S. 2932--A                          4

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 divi-
sion of the supreme court or the court of appeals.
  S 4. 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; PROVIDED, HOWEVER, THAT WITH RESPECT TO
A PROFESSIONAL SERVICE  LIMITED  LIABILITY  COMPANY  FORMED  TO  PROVIDE
SERVICES  DEFINED  IN  ARTICLE  131  OF  THE EDUCATION LAW WITH SERVICES
DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF  THE  EDUCATION  LAW,  EACH
MEMBER  OF  SUCH  LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO
ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR
LICENSED PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 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
dental  services  as  such  services  are  defined in article 133 of the
education law, each member of such limited  liability  company  must  be
licensed  pursuant  to  article  133  of  the  education law to practice
dentistry in this state. With respect to a professional service  limited
liability company formed to provide veterinary services as such services
are  defined  in  article  135 of the education law, each member of such
limited liability company must be licensed pursuant to  article  135  of
the  education  law  to practice veterinary medicine in this state. With
respect to a professional service limited liability  company  formed  to
provide  professional  engineering, land surveying, architectural 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 profes-
sional service limited liability company formed to provide creative arts
therapy services as such services are defined  in  article  163  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 163 of the education law to practice  crea-
tive  arts therapy in this state. With respect to a professional service
limited liability company formed to provide marriage and family  therapy
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  163 of the education law to practice marriage and
family therapy in this state. With respect  to  a  professional  service
limited  liability  company  formed  to provide mental health counseling
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed

S. 2932--A                          5

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.
  S 5. 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
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; PROVIDED, HOWEVER,
THAT  WITH  RESPECT  TO A FOREIGN PROFESSIONAL SERVICE LIMITED LIABILITY
COMPANY FORMED TO PROVIDE SERVICES DEFINED IN ARTICLE 131 OF THE  EDUCA-
TION  LAW WITH SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF THE
EDUCATION LAW, EACH MEMBER OF SUCH FOREIGN PROFESSIONAL SERVICE  LIMITED
LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED
BY  THE  AMERICAN  BOARD  OF  OPHTHALMOLOGY, AND/OR LICENSED PURSUANT TO
ARTICLE 143 AND/OR ARTICLE 144 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  dental
services  as  such  services are defined in article 133 of the education
law, each member of such foreign professional service limited  liability
company must be licensed pursuant to article 133 of the education law to
practice dentistry in this state. With respect to a foreign professional
service  limited liability company which provides professional engineer-
ing,  land  surveying,  architectural  and/or  landscape   architectural

S. 2932--A                          6

services  as  such  services are defined in article 145, article 147 and
article 148 of the education law, each member of  such  foreign  profes-
sional  service  limited  liability company must be licensed pursuant to
article  145,  article  147  and/or  article 148 of the education law to
practice one or more of such professions in this state. With respect  to
a  foreign professional service limited liability company which provides
licensed clinical social work services as such services are  defined  in
article  154  of  the education law, each member of such foreign profes-
sional service limited liability company shall be licensed  pursuant  to
article  154  of  the  education law to practice clinical social work in
this state. With respect  to  a  foreign  professional  service  limited
liability  company which provides creative arts therapy services as such
services are defined in article 163 of the education law, each member of
such foreign professional service  limited  liability  company  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state. With respect to a foreign  professional
service  limited  liability  company  which provides marriage and family
therapy services as such services are defined  in  article  163  of  the
education  law, each member of such foreign professional service limited
liability company must be licensed pursuant to article 163 of the educa-
tion law to practice marriage and family therapy  in  this  state.  With
respect  to  a  foreign  professional  service limited liability company
which provides mental health counseling services as  such  services  are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
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.
  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;
PROVIDED, HOWEVER, THAT WITH RESPECT TO A REGISTERED  LIMITED  LIABILITY
PARTNERSHIP  FORMED  TO  PROVIDE  SERVICES DEFINED IN ARTICLE 131 OF THE
EDUCATION LAW WITH SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF
THE EDUCATION LAW, EACH MEMBER  OF  SUCH  REGISTERED  LIMITED  LIABILITY
PARTNERSHIP  MUST  BE  LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY
THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSUANT TO ARTICLE
143 AND/OR ARTICLE 144 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  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  engineer-
ing,   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

S. 2932--A                          7

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 part-
ner  of  a  registered  limited  liability partnership formed to provide
creative arts therapy services in this state must be  licensed  pursuant
to article 163 of the education law to practice creative arts therapy in
this  state.  Each partner of a registered limited liability partnership
formed to provide marriage and family therapy  services  in  this  state
must  be  licensed pursuant to article 163 of the education law to prac-
tice marriage and family therapy in this state. Each partner of a regis-
tered 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 pursu-
ant  to  article  163 of the education law to practice psychoanalysis in
this state.
  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; PROVIDED,  HOWEV-
ER,  THAT WITH RESPECT TO A FOREIGN LIMITED LIABILITY PARTNERSHIP FORMED
TO PROVIDE SERVICES DEFINED IN ARTICLE 131 OF  THE  EDUCATION  LAW  WITH
SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW,
EACH  MEMBER  OF  SUCH  FOREIGN  LIMITED  LIABILITY  PARTNERSHIP MUST BE
LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD  OF
OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT TO ARTICLE 143 AND/OR ARTICLE
144 OF THE EDUCATION LAW TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS  IN
THIS  STATE.    Each  partner of a foreign limited liability partnership
which provides veterinary service in the state shall be licensed  pursu-
ant  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 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. Each partner of a
foreign limited liability partnership which provides  licensed  clinical
social  work services in this state must be licensed pursuant to article
154 of the education law to practice licensed clinical  social  work  in
this  state.  Each  partner  of  a foreign limited liability partnership
which provides creative arts therapy services  in  this  state  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive 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 liability partnership  which  provides
mental  health counseling services in this state must be licensed pursu-
ant to article 163 of the education law to practice mental health  coun-
seling  in this state. Each partner of a foreign limited liability part-

S. 2932--A                          8

nership which provides psychoanalysis services in  this  state  must  be
licensed  pursuant  to  article  163  of  the  education law to practice
psychoanalysis in this state.
  S 8. This act shall take effect immediately.

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