The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3526
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 27, 2021
                                ___________
 
 Introduced  by  M.  of  A.  PEOPLES-STOKES, BENEDETTO, STECK, O'DONNELL,
   THIELE, LUPARDO, GOTTFRIED, WOERNER, RODRIGUEZ,  STIRPE,  BUTTENSCHON,
   GRIFFIN -- Multi-Sponsored by -- M. of A. FITZPATRICK -- 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD05295-01-1

 A. 3526                             2
 
 NARY  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 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

 A. 3526                             3
 
 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
 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

 A. 3526                             4

 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
 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

 A. 3526                             5
 
 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.  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

 A. 3526                             6
 
 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. 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

 A. 3526                             7
 
 LICENSED  PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE MEDI-
 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

 A. 3526                             8
 
 LICENSED  PURSUANT TO ARTICLE 131 OF THE EDUCATION LAW TO PRACTICE MEDI-
 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,

 A. 3526                             9
 
 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 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

 A. 3526                            10
 
 subscriber  statements  itemizing  the  services  rendered  by each such
 professional and the charges therefor.
   §  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

 A. 3526                            11
 
 groups by the individual  members  thereof,  for  professional  services
 furnished  by  an  individual  professional  member, or employee of such
 partnership, corporation, or group, nor shall the professionals  consti-
 tuting the partnerships, corporations or groups be prohibited from shar-
 ing,  dividing,  or apportioning the fees and moneys received by them or
 by the partnership, corporation, or group in accordance with a  partner-
 ship  or  other  agreement;  provided that no such practice as partners,
 corporations, or groups, or  pooling  of  fees  or  moneys  received  or
 shared,  division  or  apportionment  of  fees  shall  be permitted with
 respect to and treatment under the workers'  compensation  law.  NOTHING
 CONTAINED  IN  THIS  SECTION SHALL PROHIBIT A MULTIDISCIPLINARY 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  section  1  of part Z of chapter 57 of the laws of 2019, 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

 A. 3526                            12
 
 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.  No provision of this  arti-
 cle  or  any other provision of law shall be construed to: (a) limit the
 volume of mental health, substance use  disorder  services  or  develop-
 mental disability services that can be provided by a provider of primary
 care  services  licensed  under  this  article and authorized to provide
 integrated services in accordance with regulations issued by the commis-
 sioner in consultation with the commissioner of  the  office  of  mental
 health, the commissioner of the office of alcoholism and substance abuse
 services  and  the  commissioner  of the office for people with develop-
 mental disabilities, including regulations issued pursuant  to  subdivi-
 sion  seven of section three hundred sixty-five-l of the social services
 law or part L of chapter fifty-six of the laws of two  thousand  twelve;
 (b)  require  a  provider licensed pursuant to article thirty-one of the
 mental hygiene law or certified pursuant to article sixteen  or  article
 thirty-two  of the mental hygiene law to obtain an operating certificate
 from the department if such provider  has  been  authorized  to  provide
 integrated services in accordance with regulations issued by the commis-
 sioner  in  consultation  with  the commissioner of the office of mental
 health, the commissioner of the office of alcoholism and substance abuse
 services and the commissioner of the office  for  people  with  develop-
 mental  disabilities,  including regulations issued pursuant to subdivi-
 sion seven of section three hundred sixty-five-l of the social  services
 law or part L of chapter fifty-six of the laws of two thousand twelve.
   §  11.  This act shall take effect on the thirtieth day after it shall
 have become a law.