Relates to the organization of university faculty practice corporations and physical therapy programs.

Sponsor: RANZENHOFER / Co-sponsor(s): AVELLA, OPPENHEIMER
Law Section: Not-for-Profit Corporation Law / Law: Amd S1412, N-PC L

S6980-2011 Actions

Jun 21, 2012: SUBSTITUTED BY A10002
May 16, 2012: ADVANCED TO THIRD READING
May 15, 2012: 2ND REPORT CAL.
May 14, 2012: 1ST REPORT CAL.741
Apr 19, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S6980-2011 Meetings

Corporations, Authorities and Commissions: May 14, 2012

S6980-2011 Calendars

S6980-2011 Votes

VOTE: COMMITTEE VOTE: - Corporations, Authorities and Commissions - May 14, 2012

Ayes (5): Ranzenhofer, Flanagan, Larkin, Martins, Squadron
Ayes W/R (1): Perkins

S6980-2011 Memo

BILL NUMBER:S6980

TITLE OF BILL:
An act
to amend the not-for-profit corporation law, in relation to the
organization of university faculty practice corporations

SUMMARY OF PROVISIONS:
Section 1 - amends section 1412 of the
Not-for-Profit Law to extend the current list of professions
authorized to organize or cause to be organized a university faculty
practice corporation to include persons who are authorized to
practice physical therapy and who are members of the faculty of the
same accredited college or university with an accredited doctor of
physical therapy program.

Section 2 - provides that this act shall take effect immediately.

PURPOSE AND JUSTIFICATION:
Currently, university faculty practice
corporations are permitted for the practice of medicine, the practice
of dentistry, the practice of chiropractic and the practice of
optometry. These faculty practice corporations have proven to offer
valuable clinical and educational experience to students in these
professions. This bill proposes to extend these same educational
benefits to students who are studying in doctor of physical therapy
programs.

EXISTING LAW:
Section 1412 of the Not-for-Profit Corporation Law
currently permits the organization of university faculty practice
corporations to provide clinical instruction and supervision, and
incident thereto rendering professional services, of students of
accredited medical school, dental schools, chiropractic colleges, and
optometry colleges.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

S6980-2011 Text

 S T A T E   O F   N E W   Y O R K
 
                                          6980
 I N  SENATE
 April 19, 2012
 
 Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
 when printed to be committed to the Committee on Corporations, Author
 ities and Commissions
 

AN ACT to amend the not-for-profit corporation law, in relation  to  the
 organization of university faculty practice corporations
 

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

 

Section 1. Paragraphs (a), (c) and (e) of section 1412 of the not-for
 profit corporation law, as amended by chapter 253 of the laws  of  1999,
 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 or the practice of optometry, and who are  members  of  the
 faculty of the same accredited medical school, dental school, chiroprac
 tic college, COLLEGE OR UNIVERSITY WITH AN ACCREDITED DOCTOR OF PHYSICAL
 THERAPY PROGRAM or optometry college, as applicable, in the state of New
 York  may organize, or cause to be organized, a university faculty prac
 tice 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
 practice  the  profession  which  the  corporation is being organized to
 practice. The certificate shall also state (1) the name of  the  medical
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD15314-01-2
        S. 6980                             2
 school,  dental school, chiropractic college, COLLEGE OR UNIVERSITY WITH
 AN ACCREDITED DOCTOR OF PHYSICAL 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  or  optometry  college  which  such corporation is organized to
 support.
 

S 2. This act shall take effect immediately.

S6980-2011: Relates to the organization of university faculty practice corporations and physical therapy programs