The New York State Senate

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

                                  1943

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            January 17, 2017
                               ___________

Introduced  by  M.  of  A. PEOPLES-STOKES, TITONE, BENEDETTO, SEPULVEDA,
  STECK, LUPINACCI -- Multi-Sponsored by -- M. of A. ARROYO -- read once
  and referred to the Committee on Higher Education

AN ACT to amend the limited liability company law, the  business  corpo-
  ration  law,  the  partnership  law,  the education law and the public
  health  law,  in  relation  to  authorizing  certain  licensed  health
  services professionals 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 amended by chapter 475 of the laws of 2014, 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.  NOTWITHSTANDING ANY OTHER PROVISION OF  THIS  SECTION,  ANY
PERSON LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE
MEDICINE  AND  ANY  PERSON  LICENSED PURSUANT TO ARTICLES 132, 137, 140,
141, 143, 144, 153, 154, 155 OR 156 OR SUBDIVISION 3 OF SECTION 6902  OF
ARTICLE  139  OF  THE  EDUCATION  LAW MAY FORM, OR CAUSE TO BE FORMED, A
PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY TO PROVIDE MULTIDISCIPLI-
NARY SERVICES WITH ONE OR MORE LICENSED PROFESSIONALS,  SUBJECT  TO  THE

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

                                                           LBD06073-01-7

A. 1943                             2

FOLLOWING  CONDITIONS: (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY
MUST BE LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW  TO  PRAC-
TICE  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 STATUE UNDER TITLE EIGHT OF THE EDUCATION LAW; AND
(III) ANY CLINICAL INTEGRATION  OF  PROFESSIONAL  PRACTICES  UNDER  THIS
SECTION  SHALL NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
OF THE MEMBERS; PROVIDED FURTHER THAT: (A) NO MEMBER SHALL, DIRECTLY  OR
INDIRECTLY,  INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL
PRACTICE OF ANOTHER MEMBER; AND (B) NO  MEMBER  SHALL  ORDER  OR  DIRECT
ANOTHER  MEMBER TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE. 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,  land-
scape  architectural  and/or  geological  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. With respect to a professional service limited liability
company formed to provide applied behavior  analysis  services  as  such
services are defined in article 167 of the education law, each member of
such limited liability company must be licensed or certified pursuant to
article  167  of the education law to practice applied behavior analysis

A. 1943                             3

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.
  §  2. Subdivision (b) of section 1207 of the limited liability company
law, as amended by chapter 475 of the laws of 2014, 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.  NOTWITHSTANDING ANY OTHER PROVISION OF
THIS  SECTION, ANY PERSON LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCA-
TION LAW TO PRACTICE MEDICINE AND ANY PERSON LICENSED PURSUANT TO  ARTI-
CLES 132, 137, 140, 141, 143, 144, 153, 154, 155 OR 156 OR SUBDIVISION 3
OF  SECTION  6902 OF ARTICLE 139 OF THE EDUCATION LAW MAY FORM, OR CAUSE
TO BE FORMED,  A  PROFESSIONAL  SERVICE  LIMITED  LIABILITY  COMPANY  TO
PROVIDE  MULTIDISCIPLINARY  SERVICES  WITH  ONE OR MORE LICENSED PROFES-
SIONALS, SUBJECT TO THE FOLLOWING CONDITIONS: (I) EACH  MEMBER  OF  SUCH
LIMITED  LIABILITY  COMPANY  MUST BE LICENSED PURSUANT TO TITLE EIGHT 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 TITLE EIGHT OR
THE EDUCATION LAW; AND (III) ANY CLINICAL  INTEGRATION  OF  PROFESSIONAL
PRACTICES  UNDER  THIS  SECTION  SHALL  NOT ALTER, EXPAND OR CURTAIL THE
SCOPE OF PRACTICE OF ANY OF THE MEMBERS; PROVIDED FURTHER THAT:  (A)  NO
MEMBER SHALL, DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGE-
MENT  OR  LEGITIMATE  CLINICAL  PRACTICE  OF  ANOTHER MEMBER; AND (B) NO
MEMBER SHALL ORDER OR DIRECT ANOTHER MEMBER TO PRACTICE BEYOND THE SCOPE
OF HIS OR HER LICENSE. 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 educa-
tion  law to practice dentistry in this state. With respect to a profes-
sional 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,  landscape  architectural  and/or  geological
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 educa-

A. 1943                             4

tion 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.  With
respect  to  a  professional service limited liability company formed to
provide applied behavior analysis services as such services are  defined
in article 167 of the education law, each member of such limited liabil-
ity company must be licensed or certified pursuant to article 167 of the
education law to practice applied behavior analysis in this state.
  §  3. Subdivision (a) of section 1301 of the limited liability company
law, as amended by chapter 475 of the laws of 2014, 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

A. 1943                             5

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.  NOTWITHSTANDING
ANY OTHER PROVISION OF THIS SECTION, ANY  PERSON  LICENSED  PURSUANT  TO
ARTICLE  131  OF  THE  EDUCATION LAW TO PRACTICE MEDICINE AND ANY PERSON
LICENSED PURSUANT TO ARTICLES 132, 137, 140, 141, 143,  144,  153,  154,
155 OR 156 OR SUBDIVISION 3 OF SECTION 6902 OF ARTICLE 139 OF THE EDUCA-
TION LAW MAY FORM, OR CAUSE TO BE FORMED, A FOREIGN PROFESSIONAL SERVICE
LIMITED LIABILITY COMPANY TO PROVIDE MULTIDISCIPLINARY SERVICES WITH ONE
OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE FOLLOWING CONDITIONS: (I)
EACH  MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT
TO TITLE EIGHT 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 TITLE EIGHT OF THE EDUCATION LAW; AND  (III)  ANY  CLINICAL  INTE-
GRATION  OF  PROFESSIONAL  PRACTICES UNDER THIS SECTION SHALL NOT ALTER,
EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF THE MEMBERS;  PROVIDED
FURTHER  THAT:  (A)  NO  MEMBER SHALL, DIRECTLY OR INDIRECTLY, INTERFERE
WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL  PRACTICE  OF  ANOTHER
MEMBER;  AND (B) NO MEMBER SHALL ORDER OR DIRECT ANOTHER MEMBER TO PRAC-
TICE BEYOND THE SCOPE OF HIS OR HER LICENSE. 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, geologic, architectural and/or landscape architec-
tural 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 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

A. 1943                             6

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 which provides applied behavior analy-
sis services as such services are defined in article 167 of  the  educa-
tion  law,  each  member  of  such  foreign professional service limited
liability company must be licensed or certified pursuant to article  167
of  the  education  law  to  practice  applied behavior analysis in this
state.
  § 4. Paragraph (a) of section 1503 of the business corporation law, as
amended by chapter 475 of the laws  of  2014,  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, land surveying or geology
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 LICENSED TO PRACTICE PURSUANT TO ARTI-
CLE 131 AND ONE OR MORE INDIVIDUALS LICENSED PURSUANT TO  ARTICLES  132,
137,  140,  141,  143,  144,  153,  154,  155 OR 156 OR SUBDIVISION 3 OF
SECTION 6902 OF ARTICLE 139 OF TITLE EIGHT  OF  THE  EDUCATION  LAW  MAY
ORGANIZE,  OR  CAUSE  TO  BE  ORGANIZED,  FOR  BUSINESS PURPOSES ONLY, A
PROFESSIONAL SERVICE CORPORATION FORMED FOR PECUNIARY PROFIT UNDER  THIS
ARTICLE  FOR  THE PURPOSE OF RENDERING MULTIDISCIPLINARY SERVICES WITHIN
SUCH A CORPORATION AS SUCH INDIVIDUALS ARE AUTHORIZED TO PRACTICE  INDI-
VIDUALLY  IN HIS OR HER RESPECTIVE PROFESSIONS, SUBJECT TO THE FOLLOWING
CONDITIONS: (A) INDIVIDUAL WHO ORGANIZES, OR CAUSES  TO  ORGANIZE,  SUCH
CORPORATION  MUST  BE  LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION
LAW TO PRACTICE HIS OR HER PROFESSION IN THIS  STATE;  (B)  EACH  MEMBER
SHALL  ONLY  PRACTICE  HIS  OR HER PROFESSION AS SPECIFIED IN HIS OR HER
RESPECTIVE PROFESSIONAL ENABLING STATUTE UNDER TITLE EIGHT OF THE EDUCA-
TION LAW; AND (C) ANY CLINICAL  INTEGRATION  OF  PROFESSIONAL  PRACTICES
UNDER THIS SECTION SHALL NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRAC-
TICE  OF  ANY OF THE MEMBERS; (D) NO INDIVIDUAL SHALL, DIRECTLY OR INDI-
RECTLY, INTERFERE WITH THE  CLINICAL  JUDGMENT  OR  LEGITIMATE  CLINICAL
PRACTICE  OF  ANOTHER  INDIVIDUAL;  AND (E) NO INDIVIDUAL SHALL ORDER OR
DIRECT ANOTHER INDIVIDUAL TO PRACTICE BEYOND THE SCOPE  OF  HIS  OR  HER
LICENSE.
  §  5.  Subdivision  (q) of section 121-1500 of the partnership law, as
amended by chapter 475 of the laws  of  2014,  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].  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, ANY PERSON
LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE  MEDI-

A. 1943                             7

CINE  AND  ANY  PERSON LICENSED PURSUANT TO ARTICLES 132, 137, 140, 141,
143, 144, 153, 154, 155 OR 156 SUBDIVISION 3 OF SECTION 6902 OF  ARTICLE
139  OF  THE EDUCATION LAW MAY FORM, OR CAUSE TO BE FORMED, A REGISTERED
LIMITED LIABILITY PARTNERSHIP TO PROVIDE MULTIDISCIPLINARY SERVICES WITH
ONE OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE FOLLOWING CONDITIONS:
(I)  EACH PARTNER OF SUCH LIMITED LIABILITY PARTNERSHIP MUST BE LICENSED
PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW  TO  PRACTICE  HIS  OR  HER
PROFESSION  IN  THIS STATE; (II) EACH PARTNER SHALL ONLY PRACTICE HIS OR
HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
ING STATUTE UNDER TITLE EIGHT OF THE EDUCATION LAW; AND (III) ANY  CLIN-
ICAL  INTEGRATION OF THE PROFESSIONAL PRACTICES UNDER THIS SECTION SHALL
NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF  THE  PART-
NERS; PROVIDED FURTHER THAT: (A) NO PARTNER SHALL, DIRECTLY OR INDIRECT-
LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
OF  ANOTHER  PARTNER;  AND  (B) NO PARTNER SHALL ORDER OR DIRECT ANOTHER
PARTNER TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE.  EACH  part-
ner  of  a  registered  limited  liability partnership formed to provide
dental services in this state must be licensed pursuant to  article  133
of  the education law to practice dentistry in this state.  Each partner
of a registered limited liability partnership formed to provide  veteri-
nary  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, geological services, architec-
tural 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  clin-
ical  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 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 arti-
cle 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 regis-
tered limited liability partnership formed to provide  applied  behavior
analysis service in this state must be licensed or certified pursuant to
article  167  of the education law to practice applied behavior analysis
in this state.
  § 6. Subdivision (q) of section 121-1502 of the  partnership  law,  as
amended  by  chapter  475  of  the  laws  of 2014, 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].  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SECTION, ANY PERSON
LICENSED PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE  MEDI-

A. 1943                             8

CINE  AND  ANY  PERSON LICENSED PURSUANT TO ARTICLES 132, 137, 140, 141,
143, 144, 153, 154, 155 OR 156 OR SUBDIVISION 3 OF SECTION 6902 OF ARTI-
CLE 139 OF THE EDUCATION LAW MAY FORM, OR CAUSE TO BE FORMED, A  FOREIGN
LIMITED LIABILITY PARTNERSHIP TO PROVIDE MULTIDISCIPLINARY SERVICES WITH
ONE OR MORE LICENSED PROFESSIONALS, SUBJECT TO THE FOLLOWING CONDITIONS:
(I)  EACH  PARTNER OF SUCH FOREIGN LIMITED LIABILITY PARTNERSHIP MUST BE
LICENSED PURSUANT TO TITLE EIGHT OF THE EDUCATION LAW TO PRACTICE HIS OR
HER PROFESSION IN THIS STATE; (II) EACH PARTNER SHALL ONLY PRACTICE  HIS
OR  HER  PROFESSION  AS  SPECIFIED IN HIS OR HER RESPECTIVE PROFESSIONAL
ENABLING STATUTE UNDER TITLE EIGHT OF THE EDUCATION LAW; AND  (III)  ANY
CLINICAL  INTEGRATION OF PROFESSIONAL PRACTICES UNDER THIS SECTION SHALL
NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF  THE  PART-
NERS; PROVIDED FURTHER THAT: (A) NO PARTNER SHALL, DIRECTLY OR INDIRECT-
LY, INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE
OF  ANOTHER  PARTNER;  AND  (B) NO PARTNER SHALL ORDER OR DIRECT ANOTHER
PARTNER TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE. 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, geological services, architectural and/or land-
scape  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 creative arts
therapy in this state. Each partner of a foreign limited liability part-
nership 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 coun-
seling  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 arti-
cle  163  of the education law to practice psychoanalysis in this state.
Each partner of a foreign limited liability partnership  which  provides
applied  behavior  analysis  services  in this state must be licensed or
certified pursuant to article 167  of  the  education  law  to  practice
applied behavior analysis in this state.
  § 7. Section 6509-a of the education law, as amended by chapter 555 of
the laws of 1993, is amended to read as follows:
  § 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,

A. 1943                             9

one hundred fifty-nine and one hundred sixty-four of this chapter may be
revoked,  suspended  or  annulled  or  such person may be subject to any
other penalty provided in section  sixty-five  hundred  eleven  of  this
article  in accordance with the provisions and procedure of this article
for the following:
  That any person subject to the above enumerated articles, has directly
or indirectly requested,  received  or  participated  in  the  division,
transference,  assignment,  rebate, splitting or refunding of a fee for,
or has directly requested, received or profited by means of a credit  or
other  valuable  consideration  as a commission, discount or gratuity in
connection with the furnishing of professional care, or service, includ-
ing x-ray examination and treatment, or for or in  connection  with  the
sale, rental, supplying or furnishing of clinical laboratory services or
supplies,  x-ray  laboratory  services  or  supplies, inhalation therapy
service or equipment, ambulance service, hospital or  medical  supplies,
physiotherapy  or  other  therapeutic  service  or equipment, artificial
limbs, teeth or eyes, orthopedic or  surgical  appliances  or  supplies,
optical  appliances,  supplies or equipment, devices for aid of hearing,
drugs, medication or medical supplies or any other  goods,  services  or
supplies  prescribed for medical diagnosis, care or treatment under this
chapter, except payment, not to exceed thirty-three  and  one-third  per
centum  of  any  fee received for x-ray examination, diagnosis or treat-
ment, to any hospital furnishing facilities for such examination,  diag-
nosis  or  treatment.   Nothing contained in this section shall prohibit
such persons from practicing as partners, in groups or as a professional
corporation or as a university faculty  practice  corporation  nor  from
pooling  fees  and  moneys received, either by the partnerships, profes-
sional corporations, university faculty practice corporations or  groups
by  the  individual members thereof, for professional services furnished
by any individual professional member, or employee of such  partnership,
corporation or group, nor shall the professionals constituting the part-
nerships, corporations or groups be prohibited from sharing, dividing or
apportioning the fees and moneys received by them or by the partnership,
corporation  or  group  in accordance with a partnership or other agree-
ment; provided that no such practice as  partners,  corporations  or  in
groups  or  pooling  of  fees  or moneys received or shared, division or
apportionment of fees shall be permitted with respect to care and treat-
ment under the workers' compensation law except as expressly  authorized
by  the  workers'  compensation  law.  NOTHING CONTAINED IN THIS SECTION
SHALL PROHIBIT A MULTIDISCIPLINARY SERVICES PRACTICE FORMED PURSUANT  TO
SUBDIVISION (A) OF SECTION TWELVE HUNDRED THREE OF THE LIMITED LIABILITY
COMPANY  LAW,  SUBDIVISION  (B)  OF  SECTION TWELVE HUNDRED SEVEN 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 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 indemnity corporation and to the
subscriber statements itemizing  the  services  rendered  by  each  such
professional and the charges therefor.

A. 1943                            10

  §  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 AUTHORIZED PROFESSIONAL LICENSED
PURSUANT TO ARTICLE ONE HUNDRED THIRTY-ONE, ONE HUNDRED THIRTY-TWO,  ONE
HUNDRED  THIRTY-SEVEN,  ONE  HUNDRED  FORTY,  ONE HUNDRED FORTY-ONE, ONE
HUNDRED FORTY-THREE, ONE HUNDRED FORTY-FOUR,  ONE  HUNDRED  FIFTY-THREE,
ONE HUNDRED FIFTY-FOUR, ONE HUNDRED FIFTY-FIVE, ONE HUNDRED FIFTY-SIX OR
ONE  HUNDRED  FIFTY-NINE  OR  SUBDIVISION  THREE  OF  SECTION SIXTY NINE
HUNDRED TWO OF ARTICLE ONE HUNDRED THIRTY-NINE OF THIS CHAPTER 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 prac-
tice, 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;
  § 9. Section 6531 of the education law, as amended by chapter  555  of
the laws of 1993, is amended to read as follows:
  § 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

A. 1943                            11

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  SERVICES
PRACTICE  FORMED  PURSUANT  TO SUBDIVISION (A) OF SECTION TWELVE HUNDRED
THREE OF THE LIMITED LIABILITY COMPANY LAW, SUBDIVISION (B)  OF  SECTION
TWELVE  HUNDRED  SEVEN 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, SUBDIVISION (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 prora-
tioning a medical or dental expenses indemnity allowance  among  two  or
more  professionals  in proportion to the services rendered by each such
professional at the request of the subscriber, provided  that  prior  to
payment  thereof such professionals shall submit both to the corporation
licensed pursuant to article forty-three of the insurance law and to the
subscriber statements itemizing  the  services  rendered  by  each  such
professional and the charges therefor.
  §  10.  Subdivision  1  of  section  2801 of the public health law, as
amended by chapter 397 of the laws  of  2016,  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, or,  in  the
case  of  a  midwifery  birth  center, of a midwife, for the prevention,
diagnosis or treatment of human  disease,  pain,  injury,  deformity  or
physical  condition,  including, but not limited to, a general hospital,
public health center, diagnostic center, treatment center, dental  clin-
ic,  dental dispensary, rehabilitation center other than a facility used
solely for vocational rehabilitation, nursing home, tuberculosis  hospi-
tal,  chronic  disease  hospital,  maternity  hospital,  midwifery birth
center,  lying-in-asylum,  out-patient  department,  out-patient  lodge,
dispensary  and  a laboratory or central service facility serving one or
more such institutions, but the  term  hospital  shall  not  include  an
institution, sanitarium or other facility engaged principally in provid-
ing  services for the prevention, diagnosis or treatment of mental disa-
bility and which is subject to the powers  of  visitation,  examination,
inspection  and investigation 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 reli-
gious 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 MULTIDISCIPLINARY SERVICES PRACTICE FORMED PURSUANT TO
SUBDIVISION (A) OF SECTION TWELVE HUNDRED THREE OF THE LIMITED LIABILITY
COMPANY LAW, SUBDIVISION (B) OF SECTION  TWELVE  HUNDRED  SEVEN  OF  THE

A. 1943                            12

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.
  § 11. This act shall take effect on the thirtieth day after  it  shall
have become a law.