A. 7403--C 2
services as such services are defined in article 131 of the education
law, each member of such limited liability company must be licensed
pursuant to article 131 of the education law to practice medicine in
this state. With respect to a professional service limited liability
company formed to provide dental services as such services are defined
in article 133 of the education law, each member of such limited liabil-
ity company must be licensed pursuant to article 133 of the education
law to practice dentistry in this state. With respect to a professional
service limited liability company formed to provide veterinary services
as such services are defined in article 135 of the education law, each
member of such limited liability company must be licensed pursuant to
article 135 of the education law to practice veterinary medicine in this
state. With respect to a professional service limited liability company
formed to provide professional engineering, land surveying, architec-
tural and/or landscape architectural services as such services are
defined in article 145, article 147 and article 148 of the education
law, each member of such limited liability company must be licensed
pursuant to article 145, article 147 and/or article 148 of the education
law to practice one or more of such professions in this state. With
respect to a professional service limited liability company formed to
provide licensed clinical social work services as such services are
defined in article 154 of the education law, each member of such limited
liability company shall be licensed pursuant to article 154 of the
education law to practice licensed clinical social work in this state.
With respect to a professional service limited liability company formed
to provide creative arts therapy services as such services are defined
in article 163 of the education law, each member of such limited liabil-
ity company must be licensed pursuant to article 163 of the education
law to practice creative arts therapy in this state. With respect to a
professional service limited liability company formed to provide
marriage and family therapy services as such services are defined in
article 163 of the education law, each member of such limited liability
company must be licensed pursuant to article 163 of the education law to
practice marriage and family therapy in this state. With respect to a
professional service limited liability company formed to provide mental
health counseling services as such services are defined in article 163
of the education law, each member of such limited liability company must
be licensed pursuant to article 163 of the education law to practice
mental health counseling in this state. With respect to a professional
service limited liability company formed to provide psychoanalysis
services as such services are defined in article 163 of the education
law, each member of such limited liability company must be licensed
pursuant to article 163 of the education law to practice psychoanalysis
in this state. In addition to engaging in such profession or
professions, a professional service limited liability company may engage
in any other business or activities as to which a limited liability
company may be formed under section two hundred one of this chapter.
Notwithstanding any other provision of this section, a professional
service limited liability company (i) authorized to practice law may
only engage in another profession or business or activities or (ii)
which is engaged in a profession or other business or activities other
than law may only engage in the practice of law, to the extent not
prohibited by any other law of this state or any rule adopted by the
appropriate appellate division of the supreme court or the court of
appeals. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, WITH
RESPECT TO A LIMITED LIABILITY COMPANY FORMED TO PROVIDE INTEGRATED,
A. 7403--C 3
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-
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 separately amended by chapters 420 and 676 of the laws of 2002,
is amended to read as follows:
(b) With respect to a professional service limited liability company
formed to provide medical services as such services are defined in arti-
cle 131 of the education law, each member of such limited liability
company must be licensed pursuant to article 131 of the education law to
practice medicine in this state. With respect to a professional service
limited liability company formed to provide dental services as such
services are defined in article 133 of the education law, each member of
such limited liability company must be licensed pursuant to article 133
of the education law to practice dentistry in this state. With respect
to a professional service limited liability company formed to provide
veterinary services as such services are defined in article 135 of the
education law, each member of such limited liability company must be
licensed pursuant to article 135 of the education law to practice veter-
inary medicine in this state. With respect to a professional service
limited liability company formed to provide professional engineering,
land surveying, architectural and/or landscape architectural services as
such services are defined in article 145, article 147 and article 148 of
the education law, each member of such limited liability company must be
licensed pursuant to article 145, article 147 and/or article 148 of the
education law to practice one or more of such professions in this state.
With respect to a professional service limited liability company formed
to provide licensed clinical social work services as such services are
defined in article 154 of the education law, each member of such limited
liability company shall be licensed pursuant to article 154 of the
education law to practice licensed clinical social work in this state.
With respect to a professional service limited liability company formed
to provide creative arts therapy services as such services are defined
in article 163 of the education law, each member of such limited liabil-
ity company must be licensed pursuant to article 163 of the education
law to practice creative arts therapy in this state. With respect to a
A. 7403--C 4
professional service limited liability company formed to provide
marriage and family therapy services as such services are defined in
article 163 of the education law, each member of such limited liability
company must be licensed pursuant to article 163 of the education law to
practice marriage and family therapy in this state. With respect to a
professional service limited liability company formed to provide mental
health counseling services as such services are defined in article 163
of the education law, each member of such limited liability company must
be licensed pursuant to article 163 of the education law to practice
mental health counseling in this state. With respect to a professional
service limited liability company formed to provide psychoanalysis
services as such services are defined in article 163 of the education
law, each member of such limited liability company must be licensed
pursuant to article 163 of the education law to practice psychoanalysis
in this state. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,
WITH RESPECT TO A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY FORMED
TO PROVIDE INTEGRATED, MULTIDISCIPLINARY MEDICAL AND 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 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,
A. 7403--C 5
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. 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
A. 7403--C 6
psychoanalysis 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 EDUCA-
TION 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 RESPEC-
TIVE 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 RESPEC-
TIVE PROFESSIONAL ENABLING LAW, PROVIDED THAT: (A) THE CLINICAL JUDG-
MENT, 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 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
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
A. 7403--C 7
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
separately amended by chapters 420 and 676 of the laws of 2002, is
amended to read as follows:
(q) Each partner of a registered limited liability partnership formed
to provide medical services in this state must be licensed pursuant to
article 131 of the education law to practice medicine in this state and
each partner of a registered limited liability partnership formed to
provide dental services in this state must be licensed pursuant to arti-
cle 133 of the education law to practice dentistry in this state. Each
partner of a registered limited liability partnership formed to provide
veterinary services in this state must be licensed pursuant to article
135 of the education law to practice veterinary medicine in this state.
Each partner of a registered limited liability partnership formed to
provide professional engineering, land surveying, architectural and/or
landscape architectural services in this state must be licensed pursuant
to article 145, article 147 and/or article 148 of the education law to
practice one or more of such professions in this state. Each partner of
a registered limited liability partnership formed to provide licensed
clinical social work services in this state must be licensed pursuant to
article 154 of the education law to practice clinical social work in
this state. Each partner of a registered limited liability partnership
formed to provide creative arts therapy services in this state must be
licensed pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state. Each partner of a registered limited
liability partnership formed to provide marriage and family therapy
services in this state must be licensed pursuant to article 163 of the
education law to practice marriage and family therapy in this state.
Each partner of a registered limited liability partnership formed to
provide mental health counseling services in this state must be licensed
pursuant to article 163 of the education law to practice mental health
counseling in this state. Each partner of a registered limited liability
partnership formed to provide psychoanalysis services in this state must
be licensed pursuant to article 163 of the education law to practice
psychoanalysis in this state. EACH PARTNER OF A REGISTERED LIMITED
LIABILITY PARTNERSHIP FORMED TO PROVIDE INTEGRATED, MULTIDISCIPLINARY
MEDICAL AND 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 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-
TION LAW, AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES
WITHIN AN INTEGRATED, MULTI-DISCIPLINARY ENTITY ORGANIZED UNDER THIS
SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER RESPECTIVE
PROFESSIONAL ENABLING LAW, PROVIDED THAT: (A) 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
A. 7403--C 8
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 6. Subdivision (q) of section 121-1502 of the partnership law, as
amended by chapter 230 of the laws of 2004, is amended to read as
follows:
(q) Each partner of a foreign limited liability partnership which
provides medical services in this state must be licensed pursuant to
article 131 of the education law to practice medicine in the state and
each partner of a foreign limited liability partnership which provides
dental services in the state must be licensed pursuant to article 133 of
the education law to practice dentistry in this state. Each partner of a
foreign limited liability partnership which provides veterinary service
in the state shall be licensed pursuant to article 135 of the education
law to practice veterinary medicine in this state. Each partner of a
foreign limited liability partnership which provides professional engi-
neering, land surveying, architectural and/or landscape architectural
services in this state must be licensed pursuant to article 145, article
147 and/or article 148 of the education law to practice one or more of
such professions. Each partner of a foreign limited liability partner-
ship which provides licensed clinical social work services in this state
must be licensed pursuant to article 154 of the education law to prac-
tice licensed clinical social work in this state. Each partner of a
foreign limited liability partnership which provides creative arts ther-
apy services in this state must be licensed pursuant to article 163 of
the education law to practice creative arts therapy in this state. Each
partner of a foreign limited liability partnership which provides
marriage and family therapy services in this state must be licensed
pursuant to article 163 of the education law to practice marriage and
family therapy in this state. Each partner of a foreign limited liabil-
ity partnership which provides mental health counseling services in this
state must be licensed pursuant to article 163 of the education law to
practice mental health counseling in this state. Each partner of a
foreign limited liability partnership which provides psychoanalysis
services in this state must be licensed pursuant to article 163 of the
education law to practice psychoanalysis in this state. EACH PARTNER OF
A FOREIGN LIMITED LIABILITY PARTNERSHIP FORMED TO PROVIDE INTEGRATED,
MULTIDISCIPLINARY MEDICAL AND CHIROPRACTIC SERVICES, AS SUCH SERVICES
ARE DEFINED UNDER ARTICLE 131 OR 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 PRAC-
TICES WITHIN AN INTEGRATED, MULTIDISCIPLINARY ENTITY ORGANIZED UNDER
THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF
ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER RESPEC-
TIVE PROFESSIONAL ENABLING LAW, PROVIDED THAT: (A) THE CLINICAL JUDG-
MENT, 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 NOT LICENSED
A. 7403--C 9
UNDER ARTICLE 131 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECT-
LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, 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
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 as follows:
S 6509-a. Additional definition of professional misconduct; limited
application. Notwithstanding any inconsistent provision of this article
A. 7403--C 10
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
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
A. 7403--C 11
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 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
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
A. 7403--C 12
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 immediately.