NY State Senate Bill 2017-S6866

Senate Bill S6866

2017-2018 Legislative Session

Permits licensed clinical social workers, creative arts therapists, marriage and family therapists, mental health counselors and psychoanalysts to form a single corporate structure

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to corporations, authorities and commissions
Sep 06, 2017	referred to rules

2017-S6866 (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Limited Liability Company Law
Laws Affected:: Amd §§1203, 1207 & 1301, Lim Lil L; amd §§121-1500 & 121-1502, Partn L

2017-S6866 (ACTIVE) - Summary

Permits licensed clinical social workers, licensed creative arts therapists, licensed marriage and family therapists, licensed mental health counselors and licensed psychoanalysts to form a single corporate structure as a means to promote inter-professional practice and improved mental health care for patients, families and communities, both rural and urban.

2017-S6866 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6866

 TITLE OF BILL :

An act to amend the limited liability company law and the partnership
law, in relation to permitting licensed clinical social workers,
licensed creative arts therapists, licensed marriage and family
therapists, licensed mental health counselors and licensed
psychoanalysts to form a single corporate structure

 PURPOSE :

This bill would allow Licensed Clinical Social Workers, Licensed
Creative Arts Therapists, Licensed Marriage and Family Therapists,
Licensed Mental Health Counselors and Licensed Psychoanalysts to form
a single corporate structure as a means of promoting
inter-professional practice and improved mental health care for
patients, families and communities, both rural and urban.

 SUMMARY OF PROVISIONS :

Section 1 of the bill amends Limited Liability Law § 1203(a) with
respect to the formation of a professional limited liability company
to eliminate language requiring that each member of such limited
liability company providing the professional services of clinical
social work, creative arts therapy, marriage and family therapy,

mental health counseling or psychoanalysis, be licensed to practice
such profession pursuant to the Education Law.

Section 2 of the bill, amends Limited Liability Law § 1207(b) with
respect to the membership of a professional limited liability company
to eliminate language requiring that each member of such limited
liability company providing the professional services of clinical
social work, creative arts therapy, marriage and family therapy,
mental health counseling or psychoanalysis, be licensed to practice
such profession pursuant to the Education Law.

Section 3 of the bill amends Limited Liability Law § 1301(a) with
respect to the membership of a foreign professional limited liability
company to eliminate language requiring that each member of such
limited liability company providing the professional services of
clinical social work, creative arts therapy, marriage and family
therapy, mental health counseling or psychoanalysis, be licensed to
practice such profession pursuant to the Education Law.

Section 4 of the bill amends Partnership Law S 121-1500(q) with
respect to membership of a registered limited liability partnership to
eliminate language requiring that each member of such limited
liability partnership providing the professional services of clinical
social work, creative arts therapy, marriage and family therapy,
mental health counseling or psychoanalysis, be licensed to practice
such profession pursuant to the Education Law.

Section 5 of the bill amends Partnership Law § 121-1502(q) with
respect to membership of a registered foreign limited liability
partnership to eliminate language requiring that each member of such
limited liability partnership providing the professional services of
clinical social work, creative arts therapy, marriage and family
therapy, mental health counseling or psychoanalysis, be licensed to
practice such profession pursuant to the Education Law.

 JUSTIFICATION :

Inter-professional and trans-professional collaborative practice is
health care provided by members of different mental health professions
with different but ultimately complementary expertise within those
professions, working together in a collaborative and coordinated
manner, combining and integrating their various distinct and
overlapping approaches, competencies, knowledge, perspectives and
skills in an effort to comprehensively address the evaluation, care,
and treatment of patients, families and significant others in their
lives.

The increasing diversity of the population and the growing number of
vulnerable individuals, such as the elderly, the immuno-compromised
and the uninsured, have created new challenges in caring for people
with complex chronic and social illnesses. These challenges call for
revised thinking about the delivery of health and mental health care
and the corporate structures that deliver this care. Evidence is
mounting that inter-professional practice models are effective in
improving patient outcomes, increasing patient and provider
satisfaction, and decreasing health care costs when employed in a
variety of practice settings. Existing New York State law prohibits
inter-professional legal structures. This negatively affects practical
issues, including reimbursement and licensing, and creates unnecessary
competition between professionals. This legislation would allow
collaborative practices in New York State, which will benefit both
patients and providers and the health care system overall.

 LEGISLATIVE HISTORY :

A3910 of 2013-14;
A.1593 of 2015-16 - referred to higher education.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6866 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6866
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             September 6, 2017
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the limited liability company law  and  the  partnership
   law,  in  relation  to  permitting  licensed  clinical social workers,
   licensed creative arts therapists, licensed marriage and family thera-
   pists, licensed mental health counselors and  licensed  psychoanalysts
   to form a single corporate structure
 
   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
 professional 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
 as  such  services are defined in article 135 of the education law, each
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04863-01-7

 S. 6866                             2
 
 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,  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 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
 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

 S. 6866                             3
 
 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, 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-
 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

 S. 6866                             4
 
 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.  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, geologic, architectural and/or land-
 scape 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 compa-
 ny 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  clin-
 ical  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  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

 S. 6866                             5

 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 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. 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  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, geological services,
 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  prac-
 tice  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 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 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 arti-
 cle  163  of the education law to practice psychoanalysis in this state.
 Each partner of a registered 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.]
   § 5. 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:

 S. 6866                             6

   (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, 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.]
   § 6. This act shall take effect immediately.

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