senate Bill S3756A

2013-2014 Legislative Session

Authorizes optometrists and ophthalmic dispensers to establish limited liability companies

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to corporations, authorities and commissions
Apr 23, 2013 print number 3756a
amend (t) and recommit to corporations, authorities and commissions
Feb 13, 2013 referred to corporations, authorities and commissions

Bill Amendments

Original
A (Active)
Original
A (Active)

S3756 - Bill Details

See Assembly Version of this Bill:
A1384A
Current Committee:
Law Section:
Limited Liability Company Law
Laws Affected:
Amd §1503, BC L; amd §§1203, 1207 & 1301, Lim Lil L; amd §§121-1500 & 121-1502, Partn L; amd §2801, Pub Health L; amd §§6530, 6509-a & 6531, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2932A, A58A
2009-2010: S3101, A5879

S3756 - Bill Texts

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Authorizes optometrists and ophthalmic dispensers to establish limited liability companies.

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BILL NUMBER:S3756

TITLE OF BILL: An act to amend the business corporation law, the limit-
ed liability company law and the partnership law, in relation to author-
izing certain health care providers to form professional service enti-
ties

PURPOSE:

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

SUMMARY OF PROVISIONS:

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

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

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

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

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

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

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

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

Section 8 provides the effective date.

EXISTING LAW:

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

JUSTIFICATION:

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

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

and operated practice to do so, consistent with a growing majority of
other states.

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

LEGISLATIVE HISTORY:

2011-2012: S.2932-A
2010: S.3101
2008: S.7269

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                  3756

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 13, 2013
                               ___________

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

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

  Section  1.  Paragraph (a) of section 1503 of the business corporation
law, as amended by chapter 550 of the laws of 2011, is amended  to  read
as follows:
  (a)  Notwithstanding  any other provision of law, one or more individ-
uals duly authorized by law to  render  the  same  professional  service
within  the state may organize, or cause to be organized, a professional
service corporation for pecuniary profit  under  this  article  for  the
purpose  of  rendering  the same professional service, [except] PROVIDED
that one or more individuals duly authorized by law to practice  profes-
sional engineering, architecture, landscape architecture or land survey-
ing  within  the state may organize, or cause to be organized, a profes-
sional service corporation or a design professional service  corporation
for  pecuniary  profit  under  this article for the purpose of rendering
such professional services as such individuals are authorized  to  prac-
tice,  AND, FURTHER, PROVIDED THAT ONE OR MORE INDIVIDUALS DULY LICENSED
BY LAW TO PRACTICE MEDICINE AND WHO ARE CERTIFIED BY THE AMERICAN  BOARD
OF  OPHTHALMOLOGY, AND INDIVIDUALS LICENSED BY LAW TO PRACTICE OPTOMETRY
AND/OR OPHTHALMIC DISPENSING WITHIN THE STATE MAY ORGANIZE, OR CAUSE  TO
BE  ORGANIZED,  A  PROFESSIONAL SERVICE CORPORATION FOR PECUNIARY PROFIT
UNDER THIS ARTICLE FOR THE PURPOSE OF RENDERING PROFESSIONAL SERVICES AS
SUCH INDIVIDUALS ARE AUTHORIZED TO PRACTICE.
  S 2. Section 1529 of the business corporation law, as amended by chap-
ter 576 of the laws of 1994, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03534-01-3

S. 3756                             2

S 1529. Business corporation law applicable.
  Except for the provisions of sections thirteen hundred three, thirteen
hundred  four,  thirteen hundred sixteen, thirteen hundred seventeen and
thirteen hundred twenty, this chapter shall be applicable to  a  foreign
professional service corporation to the extent that the provisions ther-
eof  are  not in conflict with the provisions of this article. A foreign
professional service corporation may practice  in  this  state,  or  may
consolidate  or  merge with another corporation, or may be a member of a
professional service limited liability company, a  foreign  professional
service  limited liability company, a registered limited liability part-
nership or foreign limited liability partnership, only  if  all  of  the
professions  practiced by such corporations, limited liability companies
or limited liability partnerships could be practiced by a single profes-
sional service corporation organized in this state; and,  further,  only
if such foreign professional service corporation is domiciled in a state
or  territory  of  the  United  States the laws of which, at the time of
application by such corporation under section fifteen hundred thirty  of
this  article,  contain  a reciprocal provision under which professional
service corporations domiciled in this state may similarly apply for the
privilege of doing business in any such state  or  territory[;  provided
further however, that nothing herein].
  (A)  NOTHING  IN  THIS  SECTION shall authorize a foreign professional
service corporation practicing professional engineering, land surveying,
architecture and/or landscape architecture to be a member or partner  of
a professional service limited liability company, a foreign professional
service  limited liability company, a registered limited liability part-
nership or a foreign limited liability partnership  unless  all  of  the
shareholders,  directors  and  officers  of  such  foreign  professional
service corporation are  licensed  to  practice  one  or  more  of  such
professions in this state.
  (B)  NOTHING  IN  THIS  SECTION SHALL AUTHORIZE A FOREIGN PROFESSIONAL
SERVICE CORPORATION ORGANIZED TO PRACTICE MEDICINE WITH OPTOMETRY AND/OR
OPHTHALMIC DISPENSING TO BE  A  MEMBER  OR  PARTNER  OF  A  PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, A FOREIGN PROFESSIONAL SERVICE LIMIT-
ED  LIABILITY  COMPANY,  A REGISTERED LIMITED LIABILITY PARTNERSHIP OR A
FOREIGN LIMITED LIABILITY PARTNERSHIP UNLESS ALL  OF  THE  SHAREHOLDERS,
DIRECTORS  AND OFFICERS OF SUCH FOREIGN PROFESSIONAL SERVICE CORPORATION
ARE LICENSED TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS IN THIS  STATE;
PROVIDED, HOWEVER, THAT ANY SHAREHOLDER, DIRECTOR OR OFFICER LICENSED TO
PRACTICE  MEDICINE IN THIS STATE SHALL ALSO BE CERTIFIED BY THE AMERICAN
BOARD OF OPHTHALMOLOGY.
  S 3. Subdivision (a) of section 1203 of the limited liability  company
law,  as separately amended by chapters 420 and 676 of the laws of 2002,
is amended to read as follows:
  (a) Notwithstanding the education law or any other provision  of  law,
one  or more professionals each of whom is authorized by law to render a
professional service within the state, or one or more professionals,  at
least  one of whom is authorized by law to render a professional service
within the state, may form,  or  cause  to  be  formed,  a  professional
service  limited liability company for pecuniary profit under this arti-
cle for the purpose of rendering the professional service or services as
such professionals are authorized to practice. With respect to a profes-
sional service limited  liability  company  formed  to  provide  medical
services  as  such  services are defined in article 131 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  131  of the education law to practice medicine in

S. 3756                             3

this state; PROVIDED, HOWEVER,  THAT  WITH  RESPECT  TO  A  PROFESSIONAL
SERVICE  LIMITED  LIABILITY  COMPANY  FORMED TO PROVIDE MEDICAL SERVICES
DEFINED IN ARTICLE 131 OF THE EDUCATION LAW  WITH  SERVICES  DEFINED  IN
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, EACH MEMBER OF SUCH
LIMITED  LIABILITY  COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND
CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSU-
ANT TO ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW  TO  PRACTICE
ONE  OR  MORE  OF  SUCH  PROFESSIONS  IN THIS STATE.   With respect to a
professional service limited liability company formed to provide  dental
services  as  such  services are defined in article 133 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  133 of the education law to practice dentistry in
this state. With respect to a  professional  service  limited  liability
company  formed  to  provide  veterinary  services  as such services are
defined in article 135 of the education law, each member of such limited
liability company must be licensed pursuant to article 135 of the educa-
tion law to practice veterinary medicine in this state. With respect  to
a  professional  service  limited  liability  company  formed to provide
professional engineering, land surveying, architectural and/or landscape
architectural services as such services  are  defined  in  article  145,
article  147  and  article 148 of the education law, each member of such
limited liability company must be  licensed  pursuant  to  article  145,
article  147  and/or article 148 of the education law to practice one or
more of such professions in this state. With respect to  a  professional
service  limited  liability  company formed to provide licensed clinical
social work services as such services are defined in article 154 of  the
education  law,  each  member of such limited liability company shall be
licensed pursuant to article  154  of  the  education  law  to  practice
licensed  clinical  social work in this state. With respect to a profes-
sional service limited liability company formed to provide creative arts
therapy services as such services are defined  in  article  163  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article 163 of the education law to practice  crea-
tive  arts therapy in this state. With respect to a professional service
limited liability company formed to provide marriage and family  therapy
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article  163 of the education law to practice marriage and
family therapy in this state. With respect  to  a  professional  service
limited  liability  company  formed  to provide mental health counseling
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to practice  mental  health
counseling in this state. With respect to a professional service limited
liability  company  formed  to  provide  psychoanalysis services as such
services are defined in article 163 of the education law, each member of
such limited liability company must be licensed pursuant to article  163
of  the education law to practice psychoanalysis in this state. In addi-
tion to engaging in  such  profession  or  professions,  a  professional
service  limited  liability  company may engage in any other business or
activities as to which a limited liability company may be  formed  under
section  two  hundred  one  of this chapter.   Notwithstanding any other
provision of this section,  a  professional  service  limited  liability
company  (i)  authorized  to  practice  law  may  only engage in another
profession or business or activities or  (ii)  which  is  engaged  in  a
profession  or  other  business  or  activities  other than law may only

S. 3756                             4

engage in the practice of law, to the extent not prohibited by any other
law of this state or any rule adopted by the appropriate appellate divi-
sion of the supreme court or the court of appeals.
  S  4. Subdivision (b) of section 1207 of the limited liability company
law, as separately amended by chapters 420 and 676 of the laws of  2002,
is amended to read as follows:
  (b)  With  respect to a professional service limited liability company
formed to provide medical services as such services are defined in arti-
cle 131 of the education law, each  member  of  such  limited  liability
company must be licensed pursuant to article 131 of the education law to
practice medicine in this state; PROVIDED, HOWEVER, THAT WITH RESPECT TO
A  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY  FORMED TO PROVIDE
SERVICES DEFINED IN ARTICLE 131  OF  THE  EDUCATION  LAW  WITH  SERVICES
DEFINED  IN  ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW, EACH
MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE  LICENSED  PURSUANT  TO
ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR
LICENSED PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW
TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS IN THIS STATE.  With respect
to  a  professional  service limited liability company formed to provide
dental services as such services are  defined  in  article  133  of  the
education  law,  each  member  of such limited liability company must be
licensed pursuant to article  133  of  the  education  law  to  practice
dentistry  in this state. With respect to a professional service limited
liability company formed to provide veterinary services as such services
are defined in article 135 of the education law,  each  member  of  such
limited  liability  company  must be licensed pursuant to article 135 of
the education law to practice veterinary medicine in  this  state.  With
respect  to  a  professional service limited liability company formed to
provide professional engineering, land surveying,  architectural  and/or
landscape architectural services as such services are defined in article
145,  article  147  and article 148 of the education law, each member of
such limited liability company must be licensed pursuant to article 145,
article 147 and/or article 148 of the education law to practice  one  or
more  of  such professions in this state. With respect to a professional
service limited liability company formed to  provide  licensed  clinical
social  work services as such services are defined in article 154 of the
education law, each member of such limited liability  company  shall  be
licensed  pursuant  to  article  154  of  the  education law to practice
licensed clinical social work in this state. With respect to  a  profes-
sional service limited liability company formed to provide creative arts
therapy  services  as  such  services  are defined in article 163 of the
education law, each member of such limited  liability  company  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state. With respect to a professional  service
limited  liability company formed to provide marriage and family therapy
services as such services are defined in article 163  of  the  education
law,  each  member  of  such  limited liability company must be licensed
pursuant to article 163 of the education law to  practice  marriage  and
family  therapy  in  this  state. With respect to a professional service
limited liability company formed to  provide  mental  health  counseling
services  as  such  services are defined in article 163 of the education
law, each member of such limited  liability  company  must  be  licensed
pursuant  to  article 163 of the education law to practice mental health
counseling in this state. With respect to a professional service limited
liability company formed to  provide  psychoanalysis  services  as  such
services are defined in article 163 of the education law, each member of

S. 3756                             5

such  limited liability company must be licensed pursuant to article 163
of the education law to practice psychoanalysis in this state.
  S  5. Subdivision (a) of section 1301 of the limited liability company
law, as separately amended by chapters 420 and 676 of the laws of  2002,
is amended to read as follows:
  (a)  "Foreign  professional service limited liability company" means a
professional service limited liability company, whether or  not  denomi-
nated  as  such,  organized  under the laws of a jurisdiction other than
this state, (i) each of whose members and managers, if any, is a profes-
sional authorized by law to render a professional  service  within  this
state  and who is or has been engaged in the practice of such profession
in such professional service limited liability company or a  predecessor
entity, or will engage in the practice of such profession in the profes-
sional  service limited liability company within thirty days of the date
such professional becomes a member, or each of whose members and  manag-
ers,  if  any, is a professional at least one of such members is author-
ized by law to render a professional service within this state  and  who
is  or  has  been  engaged  in  the  practice of such profession in such
professional service limited liability company or a predecessor  entity,
or  will  engage  in the practice of such profession in the professional
service limited liability company within thirty days of  the  date  such
professional  becomes  a  member,  or  (ii)  authorized by, or holding a
license, certificate, registration or permit  issued  by  the  licensing
authority  pursuant  to,  the  education  law  to  render a professional
service within this state; except that all members and managers, if any,
of  a  foreign  professional  service  limited  liability  company  that
provides  health services in this state shall be licensed in this state.
With respect to a foreign professional service limited liability company
which provides veterinary services as such services are defined in arti-
cle 135 of the education law, each member of such  foreign  professional
service  limited liability company shall be licensed pursuant to article
135 of the education law to practice veterinary medicine.  With  respect
to  a  foreign  professional  service  limited  liability  company which
provides medical services as such services are defined in article 131 of
the education law, each member  of  such  foreign  professional  service
limited  liability  company  must be licensed pursuant to article 131 of
the education law to practice medicine in this state; PROVIDED, HOWEVER,
THAT WITH RESPECT TO A FOREIGN PROFESSIONAL  SERVICE  LIMITED  LIABILITY
COMPANY  FORMED TO PROVIDE SERVICES DEFINED IN ARTICLE 131 OF THE EDUCA-
TION LAW WITH SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF  THE
EDUCATION  LAW, EACH MEMBER OF SUCH FOREIGN PROFESSIONAL SERVICE LIMITED
LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED
BY THE AMERICAN BOARD OF  OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT  TO
ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE ONE OR
MORE OF SUCH PROFESSIONS IN THIS STATE.    With  respect  to  a  foreign
professional  service  limited  liability  company which provides dental
services as such services are defined in article 133  of  the  education
law,  each member of such foreign professional service limited liability
company must be licensed pursuant to article 133 of the education law to
practice dentistry in this state. With respect to a foreign professional
service limited liability company which provides professional  engineer-
ing,   land  surveying,  architectural  and/or  landscape  architectural
services as such services are defined in article 145,  article  147  and
article  148  of  the education law, each member of such foreign profes-
sional service limited liability company must be  licensed  pursuant  to
article  145,  article  147  and/or  article 148 of the education law to

S. 3756                             6

practice one or more of such professions in this state. With respect  to
a  foreign professional service limited liability company which provides
licensed clinical social work services as such services are  defined  in
article  154  of  the education law, each member of such foreign profes-
sional service limited liability company shall be licensed  pursuant  to
article  154  of  the  education law to practice clinical social work in
this state. With respect  to  a  foreign  professional  service  limited
liability  company which provides creative arts therapy services as such
services are defined in article 163 of the education law, each member of
such foreign professional service  limited  liability  company  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state. With respect to a foreign  professional
service  limited  liability  company  which provides marriage and family
therapy services as such services are defined  in  article  163  of  the
education  law, each member of such foreign professional service limited
liability company must be licensed pursuant to article 163 of the educa-
tion law to practice marriage and family therapy  in  this  state.  With
respect  to  a  foreign  professional  service limited liability company
which provides mental health counseling services as  such  services  are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice mental health counseling
in  this  state.  With respect to a foreign professional service limited
liability  company  which  provides  psychoanalysis  services  as   such
services are defined in article 163 of the education law, each member of
such  foreign  professional  service  limited  liability company must be
licensed pursuant to article  163  of  the  education  law  to  practice
psychoanalysis in this state.
  S  6.  Subdivision  (q) of section 121-1500 of the partnership law, as
separately amended by chapters 420 and 676  of  the  laws  of  2002,  is
amended to read as follows:
  (q)  Each partner of a registered limited liability partnership formed
to provide medical services in this state must be licensed  pursuant  to
article  131 of the education law to practice medicine in this state and
each partner of a registered limited  liability  partnership  formed  to
provide dental services in this state must be licensed pursuant to arti-
cle  133  of  the  education  law  to  practice dentistry in this state;
PROVIDED, HOWEVER, THAT WITH RESPECT TO A REGISTERED  LIMITED  LIABILITY
PARTNERSHIP  FORMED  TO  PROVIDE  SERVICES DEFINED IN ARTICLE 131 OF THE
EDUCATION LAW WITH SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF
THE EDUCATION LAW, EACH MEMBER  OF  SUCH  REGISTERED  LIMITED  LIABILITY
PARTNERSHIP  MUST  BE  LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY
THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSUANT TO ARTICLE
143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE ONE OR  MORE  OF
SUCH  PROFESSIONS  IN THIS STATE.   Each partner of a registered limited
liability partnership formed to  provide  veterinary  services  in  this
state  must  be licensed pursuant to article 135 of the education law to
practice veterinary medicine in this state. Each partner of a registered
limited liability partnership formed to provide  professional  engineer-
ing,   land  surveying,  architectural  and/or  landscape  architectural
services in this state must be licensed pursuant to article 145, article
147 and/or article 148 of the education law to practice one or  more  of
such  professions  in  this  state. Each partner of a registered limited
liability partnership formed to provide licensed  clinical  social  work
services  in  this state must be licensed pursuant to article 154 of the
education law to practice clinical social work in this state. Each part-

S. 3756                             7

ner of a registered limited  liability  partnership  formed  to  provide
creative  arts  therapy services in this state must be licensed pursuant
to article 163 of the education law to practice creative arts therapy in
this  state.  Each partner of a registered limited liability partnership
formed to provide marriage and family therapy  services  in  this  state
must  be  licensed pursuant to article 163 of the education law to prac-
tice marriage and family therapy in this state. Each partner of a regis-
tered limited liability partnership  formed  to  provide  mental  health
counseling  services  in this state must be licensed pursuant to article
163 of the education law to practice mental health  counseling  in  this
state. Each partner of a registered limited liability partnership formed
to provide psychoanalysis services in this state must be licensed pursu-
ant  to  article  163 of the education law to practice psychoanalysis in
this state.
  S 7. Subdivision (q) of section 121-1502 of the  partnership  law,  as
amended  by  chapter  230  of  the  laws  of 2004, is amended to read as
follows:
  (q) Each partner of a  foreign  limited  liability  partnership  which
provides  medical  services  in  this state must be licensed pursuant to
article 131 of the education law to practice medicine in the  state  and
each  partner  of a foreign limited liability partnership which provides
dental services in the state must be licensed pursuant to article 133 of
the education law to practice dentistry in this state; PROVIDED,  HOWEV-
ER,  THAT WITH RESPECT TO A FOREIGN LIMITED LIABILITY PARTNERSHIP FORMED
TO PROVIDE SERVICES DEFINED IN ARTICLE 131 OF  THE  EDUCATION  LAW  WITH
SERVICES DEFINED IN ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW,
EACH  MEMBER  OF  SUCH  FOREIGN  LIMITED  LIABILITY  PARTNERSHIP MUST BE
LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD  OF
OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT TO ARTICLE 143 AND/OR ARTICLE
144 OF THE EDUCATION LAW TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS  IN
THIS  STATE.    Each  partner of a foreign limited liability partnership
which provides veterinary service in the state shall be licensed  pursu-
ant  to article 135 of the education law to practice veterinary medicine
in this state. Each partner of a foreign limited  liability  partnership
which  provides  professional engineering, land surveying, architectural
and/or landscape architectural services in this state must  be  licensed
pursuant to article 145, article 147 and/or article 148 of the education
law  to  practice  one  or  more  of such professions. Each partner of a
foreign limited liability partnership which provides  licensed  clinical
social  work services in this state must be licensed pursuant to article
154 of the education law to practice licensed clinical  social  work  in
this  state.  Each  partner  of  a foreign limited liability partnership
which provides creative arts therapy services  in  this  state  must  be
licensed  pursuant to article 163 of the education law to practice crea-
tive arts therapy in this state.  Each  partner  of  a  foreign  limited
liability   partnership  which  provides  marriage  and  family  therapy
services in this state must be licensed pursuant to article 163  of  the
education  law  to  practice  marriage and family therapy in this state.
Each partner of a foreign limited liability partnership  which  provides
mental  health counseling services in this state must be licensed pursu-
ant to article 163 of the education law to practice mental health  coun-
seling  in this state. Each partner of a foreign limited liability part-
nership which provides psychoanalysis services in  this  state  must  be
licensed  pursuant  to  article  163  of  the  education law to practice
psychoanalysis in this state.
  S 8. This act shall take effect immediately.

S3756A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A1384A
Current Committee:
Law Section:
Limited Liability Company Law
Laws Affected:
Amd §1503, BC L; amd §§1203, 1207 & 1301, Lim Lil L; amd §§121-1500 & 121-1502, Partn L; amd §2801, Pub Health L; amd §§6530, 6509-a & 6531, Ed L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S2932A, A58A
2009-2010: S3101, A5879

S3756A (ACTIVE) - Bill Texts

view summary

Authorizes optometrists and ophthalmic dispensers to establish limited liability companies.

view sponsor memo
BILL NUMBER:S3756A

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 authorizing ophthamologists and
ophthalmic dispensing practices 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 optometrists and/or ophthalmic dispensers
licensed under Title VIII, Article 143 and/or Article 144 of the
Education Law to form partnerships with medical doctors.

SUMMARY OF SPECIFIC PROVISIONS: This legislation would amend
1203(a)and § 1207(b) and § 1301(a) of the Limited Liability Law,
1503(a) of the Business Corporation Law, § 121-1500(q) and
121-1502(q)of the Partnership Law and § 2801(1) of the Public Health
Law to allow optometrists and/or ophthalmic dispensers licensed under
Title VIII, Article 143 and/or Article 144 of the Education Law to
form businesses with physicians. It also amends section 6530 of the
Education Law to make clear that such business entities would not be
prohibited from pooling fees.

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

While an integrative medical practice appears to be permissible on a
macro level, New York State law prohibits collaborative,
multidisciplinary practice ownership between physicians and
optometrists and /or ophthalmic dispensers. 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 optometrists and
ophthalmic dispensers, who are duly licensed, the ability to be a
co-owner of a joint practice with physicians.

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

Having multiple health care providers in the same practice creates
ease of access, care coordination and collaboration that can only


benefit patients. This saves the patient precious time and resources
by allowing patient access to multiple health care services in one
location and practice.

This legislation is designed to clarify that each provider can
practice only within their respective scope of practice and
underscores that an optometrist or ophthalmic dispenser would not and
could not be in a position to make medical decisions for the practice
as a whole. Only the medical doctor can make medical decisions. In
addition, this legislation also makes clear that a medical doctor
cannot order or direct an optometrist or ophthalmic dispenser 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: 2012 - S.2932-A/A.58-A -
CORPORATIONS/Higher Ed

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
________________________________________________________________________

                                 3756--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 13, 2013
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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 authorizing ophthamologists and ophthalmic
  dispensing practices 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
law to practice dentistry in this state. With respect to a  professional
service  limited liability company formed to provide veterinary services

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03534-06-3

S. 3756--A                          2

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 SERVICES DEFINED IN ARTICLE 131 OF THE EDUCA-
TION LAW WITH OPTOMETRY AND/OR OPHTHALMIC DISPENSING SERVICES DEFINED IN
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I) EACH MEMBER  OF
SUCH  LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131
AND CERTIFIED BY THE AMERICAN BOARD OF  OPHTHALMOLOGY,  AND/OR  LICENSED
PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRAC-
TICE  ONE  OR  MORE  OF SUCH PROFESSIONS 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 OF THE EDUCA-

S. 3756--A                          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 143 AND/OR ARTICLE 144 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 143 AND/OR ARTICLE 144 OF THE EDUCA-
TION  LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTI-
CLE 143 AND/OR ARTICLE 144 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. 3756--A                          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  SERVICES DEFINED IN
ARTICLE 131 OF  THE  EDUCATION  LAW  WITH  OPTOMETRY  AND/OR  OPHTHALMIC
DISPENSING  SERVICES  DEFINED  IN  ARTICLE 143 AND/OR ARTICLE 144 OF THE
EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE
LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD  OF
OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT TO ARTICLE 143 AND/OR ARTICLE
144 OF THE EDUCATION LAW TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS  IN
THIS  STATE,  (II) EACH MEMBER SHALL ONLY PRACTICE HIS OR HER PROFESSION
AS SPECIFIED IN HIS OR  HER  RESPECTIVE  PROFESSIONAL  ENABLING  STATUTE
UNDER ARTICLE 131, ARTICLE 143, OR ARTICLE 144 OF THE EDUCATION LAW, AND
(III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES WITHIN AN INTE-
GRATED,  MULTIDISCIPLINARY  ENTITY ORGANIZED UNDER THIS SECTION DOES NOT
ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF THE INDIVIDUALS
LICENSED UNDER THE STATUTE OF HIS OR HER RESPECTIVE PROFESSIONAL  ENABL-
ING  LAW, PROVIDED THAT: (A) THE CLINICAL JUDGMENT, MANAGEMENT AND CLIN-
ICAL DECISION-MAKING OF ONE OR MORE ARTICLE 131 PROVIDERS  IN  AN  INTE-
GRATED, MULTIDISCIPLINARY PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY
SHALL  BE  CONTROLLING,  (B)  MEMBERS  LICENSED UNDER ARTICLE 143 AND/OR
ARTICLE 144 OF THE EDUCATION LAW, SHALL  NOT,  DIRECTLY  OR  INDIRECTLY,
INTERFERE  WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE OF
A PROFESSIONAL LICENSED UNDER ARTICLE 131, AND (C) INDIVIDUALS  LICENSED
UNDER  ARTICLE 131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED UNDER
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO  PRACTICE  BEYOND
THE  SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 143 AND/OR ARTICLE 144 OF
THE EDUCATION 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

S. 3756--A                          5

authority  pursuant  to,  the  education  law  to  render a professional
service within this state; except that all members and managers, if any,
of  a  foreign  professional  service  limited  liability  company  that
provides  health services in this state shall be licensed in this state.
With respect to a foreign professional service limited liability company
which provides veterinary services as such services are defined in arti-
cle 135 of the education law, each member of such  foreign  professional
service  limited liability company shall be licensed pursuant to article
135 of the education law to practice veterinary medicine.  With  respect
to  a  foreign  professional  service  limited  liability  company which
provides medical services as such services are defined in article 131 of
the education law, each member  of  such  foreign  professional  service
limited  liability  company  must be licensed pursuant to article 131 of
the education law to practice medicine in this state.  With respect to a
foreign professional service limited liability  company  which  provides
dental  services  as  such  services  are  defined in article 133 of the
education law, each member of such foreign professional service  limited
liability company must be licensed pursuant to article 133 of the educa-
tion  law to practice dentistry in this state. With respect to a foreign
professional service limited liability company  which  provides  profes-
sional  engineering,  land  surveying,  architectural  and/or  landscape
architectural services as such services  are  defined  in  article  145,
article  147  and  article 148 of the education law, each member of such
foreign professional service limited liability company must be  licensed
pursuant to article 145, article 147 and/or article 148 of the education
law  to  practice  one  or  more of such professions in this state. With
respect to a foreign  professional  service  limited  liability  company
which  provides  licensed clinical social work services as such services
are defined in article 154 of the education law,  each  member  of  such
foreign professional service limited liability company shall be licensed
pursuant to article 154 of the education law to practice clinical social
work  in  this  state.  With  respect  to a foreign professional service
limited liability company which provides creative arts therapy  services
as  such  services are defined in article 163 of the education law, each
member of such foreign professional service  limited  liability  company
must  be  licensed pursuant to article 163 of the education law to prac-
tice creative arts therapy in this state.  With  respect  to  a  foreign
professional  service  limited liability company which provides marriage
and family therapy services as such services are defined in article  163
of  the  education law, each member of such foreign professional service
limited liability company must be licensed pursuant to  article  163  of
the education law to practice marriage and family therapy in this state.
With respect to a foreign professional service limited liability company
which  provides  mental  health counseling services as such services are
defined in article 163 of the education law, each member of such foreign
professional service limited liability company must be licensed pursuant
to article 163 of the education law to practice mental health counseling
in this state. With respect to a foreign  professional  service  limited
liability   company  which  provides  psychoanalysis  services  as  such
services are defined in article 163 of the education law, each member of
such foreign professional service  limited  liability  company  must  be
licensed  pursuant  to  article  163  of  the  education law to practice
psychoanalysis in this state.  WITH RESPECT TO  A  FOREIGN  PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY FORMED TO PROVIDE INTEGRATED MULTIDIS-
CIPLINARY  MEDICAL  SERVICES DEFINED IN ARTICLE 131 OF THE EDUCATION LAW
WITH OPTOMETRY AND/OR OPHTHALMIC DISPENSING SERVICES DEFINED IN  ARTICLE

S. 3756--A                          6

143  AND/OR  ARTICLE  144  OF THE EDUCATION LAW, (I) EACH MEMBER OF SUCH
LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE  131  AND
CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSU-
ANT  TO  ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE
ONE OR MORE OF SUCH PROFESSIONS IN THIS STATE, (II)  EACH  MEMBER  SHALL
ONLY  PRACTICE  HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPEC-
TIVE PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131,  ARTICLE  143,  OR
ARTICLE  144 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 143 AND/OR ARTICLE 144 OF  THE  EDUCATION
LAW,  SHALL  NOT,  DIRECTLY  OR  INDIRECTLY, INTERFERE WITH THE CLINICAL
JUDGMENT OR LEGITIMATE CLINICAL  PRACTICE  OF  A  PROFESSIONAL  LICENSED
UNDER  ARTICLE  131,  AND (C) INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY
NOT ORDER OR DIRECT A PROFESSIONAL LICENSED  UNDER  ARTICLE  143  AND/OR
ARTICLE  144 OF THE EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR
HER LICENSE UNDER ARTICLE 143 AND/OR ARTICLE 144 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  WHO  ARE
CERTIFIED  BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND ONE OR MORE OPTO-
METRIST AND/OR OPHTHALMIC DISPENSER LICENSED UNDER  ARTICLE  143  AND/OR
ARTICLE  144  OF THE EDUCATION LAW, WHO MAY BE BOARD CERTIFIED OR QUALI-
FIED BY HIS OR HER RESPECTIVE PROFESSIONAL SPECIALTY BOARDS, MAY  ORGAN-
IZE, OR CAUSE TO BE ORGANIZED, FOR BUSINESS PURPOSES ONLY, A MULTIDISCI-
PLINARY  PROFESSIONAL  SERVICE  CORPORATION  FORMED FOR PECUNIARY PROFIT
UNDER THIS ARTICLE FOR THE PURPOSE OF RENDERING INTEGRATED AND NON-INTE-
GRATED PROFESSIONAL SERVICES WITHIN SUCH A CORPORATION AS SUCH  INDIVID-
UALS  ARE  AUTHORIZED  TO PRACTICE INDIVIDUALLY IN HIS OR HER RESPECTIVE
PROFESSIONS, PROVIDED THAT  THE  CLINICAL  INTEGRATION  OF  PROFESSIONAL
PRACTICES  WITHIN AN ENTITY ORGANIZED UNDER THIS SECTION DOES NOT ALTER,
EXPAND OR CURTAIL THE SCOPE  OF  PRACTICE  OF  ANY  OF  THE  INDIVIDUALS
LICENSED  UNDER THE STATUTE OF HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
ING  LAW;  THAT  THE  CLINICAL   JUDGMENT,   MANAGEMENT   AND   CLINICAL
DECISION-MAKING  OF  ONE OR MORE ARTICLE 131 PROVIDERS IN AN INTEGRATED,
MULTIDISCIPLINARY PRACTICE SHALL BE CONTROLLING; THAT  MEMBERS  LICENSED
UNDER  ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW, SHALL NOT,

S. 3756--A                          7

DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR  LEGITI-
MATE 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 143 AND/OR ARTICLE 144 OF THE EDUCA-
TION  LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTI-
CLE 143 AND/OR ARTICLE 144  OF  THE  EDUCATION  LAW  IN  A  PROFESSIONAL
SERVICE  LIMITED LIABILITY COMPANY, EVEN IF SUPERVISED DIRECTLY OR INDI-
RECTLY 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 SERVICES DEFINED IN ARTICLE 131 OF THE EDUCATION LAW WITH  OPTO-
METRY  AND/OR  OPHTHALMIC  DISPENSING  SERVICES  DEFINED  IN ARTICLE 143
AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED
LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED
BY THE AMERICAN BOARD OF  OPHTHALMOLOGY,  AND/OR  LICENSED  PURSUANT  TO
ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE ONE OR
MORE OF SUCH PROFESSIONS IN THIS STATE, (II) SHALL ONLY PRACTICE HIS  OR
HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
ING STATUTE UNDER ARTICLE 131, ARTICLE 143, OR ARTICLE 144 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

S. 3756--A                          8

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 143 AND/OR ARTICLE 144 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 143 AND/OR ARTICLE 144 OF THE EDUCA-
TION  LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTI-
CLE 143 AND/OR ARTICLE 144 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 SERVICES DEFINED IN ARTICLE 131 OF THE EDUCA-
TION LAW WITH OPTOMETRY AND/OR OPHTHALMIC DISPENSING SERVICES DEFINED IN
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I) EACH MEMBER  OF
SUCH  LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131
AND CERTIFIED BY THE AMERICAN BOARD OF  OPHTHALMOLOGY,  AND/OR  LICENSED
PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRAC-
TICE  ONE  OR  MORE  OF  SUCH PROFESSIONS IN THIS STATE, (II) SHALL ONLY
PRACTICE HIS OR HER PROFESSION AS SPECIFIED IN  HIS  OR  HER  RESPECTIVE
PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131, ARTICLE 143, OR ARTICLE
144  OF THE EDUCATION LAW, AND (III) THE CLINICAL INTEGRATION OF PROFES-

S. 3756--A                          9

SIONAL PRACTICES WITHIN AN INTEGRATED, MULTIDISCIPLINARY  ENTITY  ORGAN-
IZED  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 CLIN-
ICAL 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  NOT
LICENSED  UNDER ARTICLE 131 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY OR
INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE  CLINICAL
PRACTICE  OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, AND (C) INDIVID-
UALS LICENSED UNDER ARTICLE 131 MAY NOT ORDER OR DIRECT  A  PROFESSIONAL
LICENSED  UNDER  ARTICLE  143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO
PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 143 AND/OR
ARTICLE 144 OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY  OR  INDI-
RECTLY 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  AN  OPTOMETRIST AND/OR OPHTHALMIC
DISPENSER 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

S. 3756--A                         10

such  practice,  except  as  otherwise provided by law with respect to a
facility licensed pursuant to article twenty-eight of the public  health
law or article thirteen of the mental hygiene law;
  S 9. Section 6509-a of the education law, as amended by chapter 555 of
the laws of 1993, is amended to read as follows:
  S 6509-a. Additional  definition  of  professional misconduct; limited
application.  Notwithstanding any inconsistent provision of this article
or of any other provision of law to the contrary, the license or  regis-
tration  of  a  person subject to the provisions of articles one hundred
thirty-two,  one  hundred  thirty-three,  one  hundred  thirty-six,  one
hundred  thirty-seven,  one  hundred thirty-nine, one hundred forty-one,
one hundred forty-three, one hundred forty-four, one hundred  fifty-six,
one hundred fifty-nine and one hundred sixty-four of this chapter may be
revoked,  suspended  or  annulled  or  such person may be subject to any
other penalty provided in section  sixty-five  hundred  eleven  of  this
article  in accordance with the provisions and procedure of this article
for the following:
  That any person subject to the above enumerated articles, has directly
or indirectly requested,  received  or  participated  in  the  division,
transference,  assignment,  rebate, splitting or refunding of a fee for,
or has directly requested, received or profited by means of a credit  or
other  valuable  consideration  as a commission, discount or gratuity in
connection with the furnishing of professional care, or service, includ-
ing x-ray examination and treatment, or for or in  connection  with  the
sale, rental, supplying or furnishing of clinical laboratory services or
supplies,  x-ray  laboratory  services  or  supplies, inhalation therapy
service or equipment, ambulance service, hospital or  medical  supplies,
physiotherapy  or  other  therapeutic  service  or equipment, artificial
limbs, teeth or eyes, orthopedic or  surgical  appliances  or  supplies,
optical  appliances,  supplies or equipment, devices for aid of hearing,
drugs, medication or medical supplies or any other  goods,  services  or
supplies  prescribed for medical diagnosis, care or treatment under this
chapter, except payment, not to exceed thirty-three  and  one-third  per
centum  of  any  fee received for x-ray examination, diagnosis or treat-
ment, to any hospital furnishing facilities for such examination,  diag-
nosis  or  treatment.   Nothing contained in this section shall prohibit
such persons from practicing as partners, in groups or as a professional
corporation or as a university faculty  practice  corporation  nor  from
pooling  fees  and  moneys received, either by the partnerships, profes-
sional corporations, university faculty practice corporations or  groups
by  the  individual members thereof, for professional services furnished
by any individual professional member, or employee of such  partnership,
corporation or group, nor shall the professionals constituting the part-
nerships, corporations or groups be prohibited from sharing, dividing or
apportioning the fees and moneys received by them or by the partnership,
corporation  or  group  in accordance with a partnership or other agree-
ment; provided that no such practice as  partners,  corporations  or  in
groups  or  pooling  of  fees  or moneys received or shared, division or
apportionment of fees shall be permitted with respect to care and treat-
ment under the workers' compensation law except as expressly  authorized
by  the  workers'  compensation  law. NOTHING CONTAINED IN THIS SECTION,
SHALL PROHIBIT AN INTEGRATED, MULTIDISCIPLINARY  MEDICAL  AND  OPTOMETRY
AND/OR OPHTHALMIC DISPENSING 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

S. 3756--A                         11

THE BUSINESS CORPORATION LAW, SUBDIVISION (Q) OF SECTION 121-1500 OF THE
PARTNERSHIP  LAW, OR SUBDIVISION (Q) OF SECTION 121-1502 OF THE PARTNER-
SHIP 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 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 medical or dental expense indem-
nity corporation and to the subscriber statements itemizing the services
rendered by each such professional and the charges therefor.
  S 10. Section 6531 of the education law, as amended by chapter 555  of
the laws of 1993, is amended to read as follows:
  S 6531. Additional  definition  of  professional  misconduct,  limited
application.  Notwithstanding any inconsistent provision of this article
or any other provisions of law to the contrary, the license or registra-
tion of a person subject to the provisions of this article  and  article
one  hundred  thirty-one-B of this chapter may be revoked, suspended, or
annulled or such person may be subject to any other penalty provided  in
section two hundred thirty-a of the public health law in accordance with
the provisions and procedures of this article for the following:
  That  any person subject to the above-enumerated articles has directly
or indirectly requested,  received  or  participated  in  the  division,
transference,  assignment, rebate, splitting, or refunding of a fee for,
or has directly requested, received or profited by means of a credit  or
other  valuable  consideration as a commission, discount or gratuity, in
connection with the furnishing of professional care or service,  includ-
ing  x-ray  examination  and treatment, or for or in connection with the
sale, rental, supplying, or furnishing of clinical  laboratory  services
or  supplies,  x-ray laboratory services or supplies, inhalation therapy
service or equipment, ambulance service, hospital or  medical  supplies,
physiotherapy  or  other  therapeutic  service  or equipment, artificial
limbs, teeth or eyes, orthopedic or  surgical  appliances  or  supplies,
optical  appliances, supplies, or equipment, devices for aid of hearing,
drugs, medication, or medical supplies, or any other goods, services, or
supplies prescribed for medical diagnosis, care, or treatment under this
chapter, except  payment,  not  to  exceed  thirty-three  and  one-third
percent  of any fee received for x-ray examination, diagnosis, or treat-
ment, to any hospital furnishing facilities for such examination,  diag-
nosis,  or  treatment.  Nothing contained in this section shall prohibit
such persons from practicing as partners, in groups or as a professional
corporation or as a university faculty practice  corporation,  nor  from
pooling  fees  and  moneys received, either by the partnerships, profes-
sional corporations, or  university  faculty  practice  corporations  or
groups  by  the  individual  members  thereof, for professional services
furnished by an individual professional  member,  or  employee  of  such
partnership,  corporation, or group, nor shall the professionals consti-
tuting the partnerships, corporations or groups be prohibited from shar-
ing, dividing, or apportioning the fees and moneys received by  them  or
by  the partnership, corporation, or group in accordance with a partner-
ship or other agreement; provided that no  such  practice  as  partners,
corporations,  or  groups,  or  pooling  of  fees  or moneys received or
shared, division or  apportionment  of  fees  shall  be  permitted  with
respect  to  and  treatment under the workers' compensation law. NOTHING
CONTAINED IN THIS SECTION, SHALL PROHIBIT AN INTEGRATED,  MULTIDISCIPLI-
NARY  MEDICAL AND OPTOMETRY AND/OR OPHTHALMIC DISPENSING PRACTICE FORMED

S. 3756--A                         12

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, SUBDIVI-
SION (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 corporation
licensed pursuant to article forty-three of the insurance  law  pursuant
to  its  contract  with  the  subscribed  from prorationing a medical or
dental expenses indemnity allowance among two or more  professionals  in
proportion  to  the  services  rendered by each such professional at the
request of the subscriber, provided that prior to payment  thereof  such
professionals  shall submit both to the corporation licensed pursuant to
article forty-three of the insurance law and to  the  subscriber  state-
ments  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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