senate Bill S1940

2013-2014 Legislative Session

Permits doctors of chiropractic to form limited liability companies

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 05, 2013 referred to higher education
delivered to assembly
passed senate
Jun 04, 2013 ordered to third reading cal.1028
committee discharged and committed to rules
Feb 04, 2013 reported and committed to higher education
Jan 09, 2013 referred to corporations, authorities and commissions

Votes

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Jun 4, 2013 - Rules committee Vote

S1940
22
1
committee
22
Aye
1
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Feb 4, 2013 - Corporations, Authorities and Commissions committee Vote

S1940
6
0
committee
6
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Corporations, Authorities and Commissions Committee Vote: Feb 4, 2013

Co-Sponsors

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S1940 - Bill Details

See Assembly Version of this Bill:
A5956
Current Committee:
Assembly Higher Education
Law Section:
Limited Liability Company Law
Laws Affected:
Amd §§1203, 1207 & 1301, Lim Lil L; amd §1503, BC L; amd §§121-1500 & 121-1502, Partn L; amd §2801, Pub Health L; amd §§6530, 6509-a & 6531, Ed L
Versions Introduced in 2011-2012 Legislative Session:
S5012C

S1940 - Bill Texts

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Permits doctors of chiropractic to form limited liability companies.

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BILL NUMBER:S1940

TITLE OF BILL: An act to amend the limited liability company law, the
business corporation law, the partnership law, the public health law and
the education law, in relation to allowing doctors of chiropractic
licensed under title VIII, article 132 of the education law to form
limited liability companies

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

SUMMARY OF SPECIFIC PROVISIONS: This legislation would amend § 1203(a)
and § 1207(b) and § 1301(a) of the limited liability law, 1503(a) of the
business corporation law, § 121-1500(q) and § 121-1502(q) of the part-
nership law and § 2801(1) of the public health law to allow chiroprac-
tors licensed under Title VIII, Article 132 of the education law. Amends
section 6530 of the Education law to make clear that such business enti-
ties would not be prohibited from pooling fees.

JUSTIFICATION: This bill would authorize physicians and chiropractors
to form limited liability companies, professional corporations and part-
nerships with one another. In the last two decades, practice in and
among the health professions has changed. Artificial barriers in law
prohibiting multidisciplinary practices, known as "integrative medi-
cine," which prevents physicians and other providers, including comple-
mentary and alternative medicine (CAM) practitioners like chiropractors,
from co-owning a practice and collaborating and coordinating on patient
care are no longer valid and should not prevail.

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

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

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

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

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

PRIOR LEGISLATIVE HISTORY: 2011-2012: Passed the Senate (S. 5012C/A.
7403C)

FISCAL IMPLICATIONS: None to the State.

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

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

                                  1940

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  FUSCHILLO,  GRISANTI,  ADDABBO, BONACIC, KENNEDY,
  MAZIARZ -- read twice and ordered printed,  and  when  printed  to  be
  committed  to  the  Committee on Corporations, Authorities and Commis-
  sions

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

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

  Section  1.  Subdivision  (a) of section 1203 of the limited liability
company law, as 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
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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01399-02-3

S. 1940                             2

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,
MULTIDISCIPLINARY MEDICAL AND CHIROPRACTIC SERVICES,  AS  SUCH  SERVICES
ARE  RESPECTIVELY  DEFINED  UNDER  ARTICLES 131 AND 132 OF THE EDUCATION
LAW, (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE  LICENSED
PURSUANT  TO ARTICLE 131 OR ARTICLE 132 OF THE EDUCATION LAW TO PRACTICE
HIS OR HER PROFESSION IN THIS STATE, (II) EACH MEMBER SHALL  ONLY  PRAC-
TICE HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFES-
SIONAL  ENABLING  STATUTE UNDER ARTICLE 131 OR ARTICLE 132 OF THE EDUCA-

S. 1940                             3

TION LAW, AND (III) THE CLINICAL INTEGRATION OF  PROFESSIONAL  PRACTICES
WITHIN  AN  INTEGRATED,  MULTIDISCIPLINARY  ENTITY  ORGANIZED UNDER THIS
SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE  OF  ANY
OF  THE  INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER RESPECTIVE
PROFESSIONAL ENABLING LAW, PROVIDED THAT:  (A)  THE  CLINICAL  JUDGMENT,
MANAGEMENT  AND  CLINICAL  DECISION-MAKING  OF  ONE  OR MORE ARTICLE 131
PROVIDERS  IN  AN  INTEGRATED,  MULTIDISCIPLINARY  PROFESSIONAL  SERVICE
LIMITED  LIABILITY  COMPANY  SHALL  BE CONTROLLING, (B) MEMBERS LICENSED
UNDER ARTICLE 132 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECT-
LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
OF A PROFESSIONAL  LICENSED  UNDER  ARTICLE  131,  AND  (C)  INDIVIDUALS
LICENSED  UNDER  ARTICLE  131  MAY  NOT  ORDER  OR DIRECT A PROFESSIONAL
LICENSED UNDER ARTICLE 132 OF THE EDUCATION LAW TO PRACTICE  BEYOND  THE
SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 132 OF THE EDUCATION LAW, EVEN
IF  SUPERVISED  DIRECTLY  OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER
ARTICLE 131.
  S 2. Subdivision (b) of section 1207 of the limited liability  company
law,  as 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
professional  service  limited  liability  company  formed  to   provide
marriage  and  family  therapy  services as such services are defined in
article 163 of the education law, each member of such limited  liability
company must be licensed pursuant to article 163 of the education law to
practice  marriage  and  family therapy in this state. With respect to a
professional service limited liability company formed to provide  mental
health  counseling  services as such services are defined in article 163

S. 1940                             4

of the education law, each member of such limited liability company must
be licensed pursuant to article 163 of the  education  law  to  practice
mental  health  counseling in this state. With respect to a professional
service  limited  liability  company  formed  to  provide psychoanalysis
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to practice  psychoanalysis
in  this  state.    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,
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

S. 1940                             5

provides  health services in this state shall be licensed in this state.
With respect to a foreign professional service limited liability company
which provides veterinary services as such services are defined in arti-
cle  135  of the education law, each member of such foreign professional
service limited liability company shall be licensed pursuant to  article
135  of  the education law to practice veterinary medicine. With respect
to a  foreign  professional  service  limited  liability  company  which
provides medical services as such services are defined in article 131 of
the  education  law,  each  member  of such foreign professional service
limited liability company must be licensed pursuant to  article  131  of
the education law to practice medicine in this state.  With respect to a
foreign  professional  service  limited liability company which provides
dental services as such services are  defined  in  article  133  of  the
education  law, each member of such foreign professional service limited
liability company must be licensed pursuant to article 133 of the educa-
tion law to practice dentistry in this state. With respect to a  foreign
professional  service  limited  liability company which provides profes-
sional  engineering,  land  surveying,  architectural  and/or  landscape
architectural  services  as  such  services  are defined in article 145,
article 147 and article 148 of the education law, each  member  of  such
foreign  professional service limited liability company must be licensed
pursuant to article 145, article 147 and/or article 148 of the education
law to practice one or more of such  professions  in  this  state.  With
respect  to  a  foreign  professional  service limited liability company
which provides licensed clinical social work services as  such  services
are  defined  in  article  154 of the education law, each member of such
foreign professional service limited liability company shall be licensed
pursuant to article 154 of the education law to practice clinical social
work in this state. With  respect  to  a  foreign  professional  service
limited  liability company which provides creative arts therapy services
as such services are defined in article 163 of the education  law,  each
member  of  such  foreign professional service limited liability company
must be licensed pursuant to article 163 of the education law  to  prac-
tice  creative  arts  therapy  in  this state. With respect to a foreign
professional service limited liability company which  provides  marriage
and  family therapy services as such services are defined in article 163
of the education law, each member of such foreign  professional  service
limited  liability  company  must be licensed pursuant to article 163 of
the education law to practice marriage and family therapy in this state.
With respect to a foreign professional service limited liability company
which provides mental health counseling services as  such  services  are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice mental health counseling
in  this  state.  With respect to a foreign professional service limited
liability  company  which  provides  psychoanalysis  services  as   such
services are defined in article 163 of the education law, each member of
such  foreign  professional  service  limited  liability company must be
licensed pursuant to article  163  of  the  education  law  to  practice
psychoanalysis  in  this state.   WITH RESPECT TO A FOREIGN PROFESSIONAL
SERVICE  LIMITED  LIABILITY  COMPANY  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

S. 1940                             6

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
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. 1940                             7

  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
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

S. 1940                             8

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
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

S. 1940                             9

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 to read as follows:
  S 6509-a. Additional  definition  of  professional misconduct; limited
application.  Notwithstanding any inconsistent provision of this article
or of any other provision of law to the contrary, the license or  regis-
tration  of  a  person subject to the provisions of articles one hundred
thirty-two,  one  hundred  thirty-three,  one  hundred  thirty-six,  one
hundred  thirty-seven,  one  hundred thirty-nine, one hundred forty-one,
one hundred forty-three, one hundred forty-four, one hundred  fifty-six,
one hundred fifty-nine and one hundred sixty-four of this chapter may be

S. 1940                            10

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
subscriber,  provided  that  prior to payment thereof such professionals
shall submit both to the medical or dental expense indemnity corporation
and to the subscriber statements itemizing the services rendered by each
such professional and the charges therefor.
  S 10. Section 6531 of the education law, as amended by chapter 555  of
the laws of 1993, is amended to read as follows:

S. 1940                            11

  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
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

S. 1940                            12

insurance  law  and  to the subscriber statements itemizing the services
rendered by each such professional and the charges therefor.
  S  11.  This act shall take effect on the thirtieth day after it shall
have became a law.

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