Assembly Bill A10436

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10436
 
                           I N  A S S E M B L Y
 
                               March 6, 2026
                                ___________
 
 Introduced  by M. of A. McMAHON -- read once and referred to the Commit-
   tee on Corporations, Authorities and Commissions
 
 AN ACT to amend the  not-for-profit  corporation  law,  in  relation  to
   authorizing  university faculty practice corporations for the practice
   of occupational therapy
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions (a), (c) and (e) of section 1412 of the not-
 for-profit corporation law, as amended by chapter 323  of  the  laws  of
 2012, are amended to read as follows:
   (a)  Organization.  Notwithstanding any other provision of law, one or
 more individuals who are duly authorized  by  law  to  render  the  same
 professional service, which shall be the practice of medicine, the prac-
 tice  of dentistry, the practice of chiropractics, the practice of phys-
 ical therapy, THE PRACTICE OF OCCUPATIONAL THERAPY, or the  practice  of
 optometry,  and  who  are  members of the faculty of the same accredited
 medical school, dental school, chiropractic college, college or  univer-
 sity  with  an accredited doctor of physical therapy program, COLLEGE OR
 UNIVERSITY WITH AN ACCREDITED OCCUPATIONAL THERAPY PROGRAM, or optometry
 college, as applicable, in the state of New York may organize, or  cause
 to  be  organized,  a university faculty practice corporation under this
 article (1) for the purpose of supporting  the  educational  mission  of
 such  school  by  providing  clinical  instruction  and  supervision  of
 students of such school, interns and residents  and,  incident  thereto,
 rendering  professional  services  and  (2)  which  shall be operated in
 compliance with (A) section 501(c)(3)  of  the  United  States  internal
 revenue code and (B) the faculty practice plan with which members of the
 faculty  of  such school are required to comply, as amended from time to
 time.
   (c) Certificate of incorporation. The certificate of incorporation  of
 a university faculty practice corporation shall meet the requirements of
 this  chapter  and  shall have attached thereto a certificate or certif-
 icates issued by the licensing authority certifying  that  each  of  the
 proposed members, if any, directors and officers is authorized by law to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14909-01-6
 A. 10436                            2
 
 practice  the  profession  which  the  corporation is being organized to
 practice. The certificate shall also state (1) the name of  the  medical
 school,  dental school, chiropractic college, college or university with
 an  accredited doctor of physical therapy program, COLLEGE OR UNIVERSITY
 WITH AN ACCREDITED OCCUPATIONAL THERAPY PROGRAM, or  optometry  college,
 as  applicable,  in the state of New York of which the proposed members,
 if any, directors and officers are faculty and (2) that such corporation
 shall operate in compliance with (A) section  501(c)(3)  of  the  United
 States  internal  revenue  code  and  (B) the faculty practice plan with
 which members of the faculty of such school are required to  comply,  as
 amended from time to time.
   (e) Applicability of laws; members, directors and officers. This chap-
 ter  shall  be  applicable  to a university faculty practice corporation
 except to the extent that the  provisions  thereof  conflict  with  this
 section.  A  university  faculty practice corporation may consolidate or
 merge only with another university  faculty  practice  corporation.  The
 following  provisions of article fifteen of the business corporation law
 shall be applicable to a university faculty practice corporation  except
 that  each  reference  in  such  provisions  to a "shareholder" shall be
 deemed to be a reference to  a  "member"  and  each  reference  in  such
 provisions  to  "shareholders" shall be deemed a reference to "members":
 paragraphs (a), (b), (c) and (e) of section fifteen hundred  one;  para-
 graphs  (b),  (c)  and  (d) of section fifteen hundred three; paragraphs
 (a), (c) and (g)  of  section  fifteen  hundred  four;  section  fifteen
 hundred  five;  section  fifteen  hundred nine except to the extent such
 section refers to section fifteen hundred ten; paragraph (a) of  section
 fifteen  hundred  twelve;  section fifteen hundred fourteen; and section
 fifteen hundred fifteen.  No individual may be  a  member,  director  or
 officer  of  a university faculty practice corporation unless such indi-
 vidual is authorized by law to practice in  this  state  the  profession
 which  such corporation is authorized to practice and is a member of the
 faculty of the medical  school,  dental  school,  chiropractic  college,
 college  or  university  with  an  accredited doctor of physical therapy
 program, COLLEGE OR UNIVERSITY WITH AN ACCREDITED  OCCUPATIONAL  THERAPY
 PROGRAM,  or  optometry  college  which such corporation is organized to
 support.
   § 2. This act shall take effect immediately.