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

                                  6980

                            I N  S E N A T E

                             April 19, 2012
                               ___________

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

AN ACT to amend the not-for-profit corporation law, in relation  to  the
  organization of university faculty practice corporations

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

  Section 1. Paragraphs (a), (c) and (e) of section 1412 of the not-for-
profit corporation law, as amended by chapter 253 of the laws  of  1999,
are amended to read as follows:
  (a)  Organization.  Notwithstanding any other provision of law, one or
more individuals who are duly authorized  by  law  to  render  the  same
professional service, which shall be the practice of medicine, the prac-
tice  of dentistry, the practice of chiropractics, THE PRACTICE OF PHYS-
ICAL THERAPY or the practice of optometry, and who are  members  of  the
faculty of the same accredited medical school, dental school, chiroprac-
tic college, COLLEGE OR UNIVERSITY WITH AN ACCREDITED DOCTOR OF PHYSICAL
THERAPY PROGRAM or optometry college, as applicable, in the state of New
York  may organize, or cause to be organized, a university faculty prac-
tice corporation under this article (1) for the  purpose  of  supporting
the educational mission of such school by providing clinical instruction
and  supervision  of students of such school, interns and residents and,
incident thereto, rendering professional services and (2) which shall be
operated in compliance with (A) section 501(c)(3) of the  United  States
internal  revenue  code  and  (B)  the  faculty practice plan with which
members of the faculty of such school are required to comply, as amended
from time to time.
  (c) Certificate of incorporation. The certificate of incorporation  of
a university faculty practice corporation shall meet the requirements of
this  chapter  and  shall have attached thereto a certificate or certif-
icates issued by the licensing authority certifying  that  each  of  the
proposed members, if any, directors and officers is authorized by law to
practice  the  profession  which  the  corporation is being organized to
practice. The certificate shall also state (1) the name of  the  medical

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

                                                           LBD15314-01-2

S. 6980                             2

school,  dental school, chiropractic college, COLLEGE OR UNIVERSITY WITH
AN ACCREDITED DOCTOR OF PHYSICAL THERAPY PROGRAM or  optometry  college,
as  applicable,  in the state of New York of which the proposed members,
if any, directors and officers are faculty and (2) that such corporation
shall  operate  in  compliance  with (A) section 501(c)(3) of the United
States internal revenue code and (B)  the  faculty  practice  plan  with
which  members  of the faculty of such school are required to comply, as
amended from time to time.
  (e) Applicability of laws; members, directors and officers. This chap-
ter shall be applicable to a  university  faculty  practice  corporation
except  to  the  extent  that  the provisions thereof conflict with this
section. A university faculty practice corporation  may  consolidate  or
merge  only  with  another  university faculty practice corporation. The
following provisions of article fifteen of the business corporation  law
shall  be applicable to a university faculty practice corporation except
that each reference in such  provisions  to  a  "shareholder"  shall  be
deemed  to  be  a  reference  to  a  "member" and each reference in such
provisions to "shareholders" shall be deemed a reference  to  "members":
paragraphs  (a),  (b), (c) and (e) of section fifteen hundred one; para-
graphs (b), (c) and (d) of section  fifteen  hundred  three;  paragraphs
(a),  (c)  and  (g)  of  section  fifteen  hundred four; section fifteen
hundred five; section fifteen hundred nine except  to  the  extent  such
section  refers to section fifteen hundred ten; paragraph (a) of section
fifteen hundred twelve; section fifteen hundred  fourteen;  and  section
fifteen  hundred  fifteen.    No individual may be a member, director or
officer of a university faculty practice corporation unless  such  indi-
vidual  is  authorized  by  law to practice in this state the profession
which such corporation is authorized to practice and is a member of  the
faculty  of  the  medical  school,  dental school, chiropractic college,
COLLEGE OR UNIVERSITY WITH AN  ACCREDITED  DOCTOR  OF  PHYSICAL  THERAPY
PROGRAM  or  optometry  college  which  such corporation is organized to
support.
  S 2. This act shall take effect immediately.