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

                                 1384--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by M. of A. CAHILL, LUPARDO, STIRPE -- Multi-Sponsored by --
  M. of A. STEC -- read once and referred to  the  Committee  on  Higher
  Education  -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the limited liability company law, the  business  corpo-
  ration  law, the partnership law, the public health law and the educa-
  tion law, in relation to authorizing  ophthamologists  and  ophthalmic
  dispensing practices 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 separately amended by chapters 420 and 676 of the laws
of 2002, 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. 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

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

                                                           LBD03534-07-3

A. 1384--A                          2

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,  architec-
tural  and/or  landscape  architectural  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.  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.    NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SECTION, WITH
RESPECT TO A LIMITED LIABILITY COMPANY  FORMED  TO  PROVIDE  INTEGRATED,
MULTIDISCIPLINARY  MEDICAL SERVICES DEFINED IN ARTICLE 131 OF THE EDUCA-
TION LAW WITH OPTOMETRY AND/OR OPHTHALMIC DISPENSING SERVICES DEFINED IN
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I) EACH MEMBER  OF
SUCH  LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131
AND CERTIFIED BY THE AMERICAN BOARD OF  OPHTHALMOLOGY,  AND/OR  LICENSED
PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRAC-
TICE  ONE  OR  MORE  OF SUCH PROFESSIONS IN THIS STATE, (II) EACH MEMBER
SHALL ONLY PRACTICE HIS OR HER PROFESSION AS SPECIFIED  IN  HIS  OR  HER

A. 1384--A                          3

RESPECTIVE PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131 OF THE EDUCA-
TION  LAW,  AND (III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES
WITHIN AN INTEGRATED,  MULTIDISCIPLINARY  ENTITY  ORGANIZED  UNDER  THIS
SECTION  DOES  NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY
OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR  HER  RESPECTIVE
PROFESSIONAL  ENABLING  LAW,  PROVIDED  THAT: (A) THE CLINICAL JUDGMENT,
MANAGEMENT AND CLINICAL DECISION-MAKING  OF  ONE  OR  MORE  ARTICLE  131
PROVIDERS  IN  AN  INTEGRATED,  MULTIDISCIPLINARY  PROFESSIONAL  SERVICE
LIMITED LIABILITY COMPANY SHALL BE  CONTROLLING,  (B)  MEMBERS  LICENSED
UNDER  ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW, SHALL NOT,
DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR  LEGITI-
MATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, AND
(C)  INDIVIDUALS  LICENSED  UNDER  ARTICLE 131 MAY NOT ORDER OR DIRECT A
PROFESSIONAL LICENSED UNDER ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCA-
TION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER  ARTI-
CLE  143  AND/OR  ARTICLE  144  OF THE EDUCATION LAW, EVEN IF SUPERVISED
DIRECTLY OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 2. Subdivision (b) of section 1207 of the limited liability  company
law,  as separately amended by chapters 420 and 676 of the laws of 2002,
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. 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 and/or landscape architectural 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

A. 1384--A                          4

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.   NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS  SECTION,
WITH  RESPECT TO A PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY FORMED
TO PROVIDE INTEGRATED  MULTIDISCIPLINARY  MEDICAL  SERVICES  DEFINED  IN
ARTICLE  131  OF  THE  EDUCATION  LAW  WITH  OPTOMETRY AND/OR OPHTHALMIC
DISPENSING SERVICES DEFINED IN ARTICLE 143 AND/OR  ARTICLE  144  OF  THE
EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED LIABILITY COMPANY MUST BE
LICENSED  PURSUANT TO ARTICLE 131 AND CERTIFIED BY THE AMERICAN BOARD OF
OPHTHALMOLOGY, AND/OR LICENSED PURSUANT TO ARTICLE  143  AND/OR  ARTICLE
144  OF THE EDUCATION LAW TO PRACTICE ONE OR MORE OF SUCH PROFESSIONS IN
THIS STATE, (II) EACH MEMBER SHALL ONLY PRACTICE HIS OR  HER  PROFESSION
AS  SPECIFIED  IN  HIS  OR  HER RESPECTIVE PROFESSIONAL ENABLING STATUTE
UNDER ARTICLE 131, ARTICLE 143, OR ARTICLE 144 OF THE EDUCATION LAW, AND
(III) THE CLINICAL INTEGRATION OF PROFESSIONAL PRACTICES WITHIN AN INTE-
GRATED, MULTIDISCIPLINARY ENTITY ORGANIZED UNDER THIS SECTION  DOES  NOT
ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE OF ANY OF THE INDIVIDUALS
LICENSED  UNDER THE STATUTE OF HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
ING LAW, PROVIDED THAT: (A) THE CLINICAL JUDGMENT, MANAGEMENT AND  CLIN-
ICAL  DECISION-MAKING  OF  ONE OR MORE ARTICLE 131 PROVIDERS IN AN INTE-
GRATED, MULTIDISCIPLINARY PROFESSIONAL SERVICE LIMITED LIABILITY COMPANY
SHALL BE CONTROLLING, (B) MEMBERS  LICENSED  UNDER  ARTICLE  143  AND/OR
ARTICLE  144  OF  THE  EDUCATION LAW, SHALL NOT, DIRECTLY OR INDIRECTLY,
INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL PRACTICE  OF
A  PROFESSIONAL LICENSED UNDER ARTICLE 131, AND (C) INDIVIDUALS LICENSED
UNDER ARTICLE 131 MAY NOT ORDER OR DIRECT A PROFESSIONAL LICENSED  UNDER
ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE BEYOND
THE SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 143 AND/OR ARTICLE 144  OF
THE  EDUCATION  LAW,  EVEN  IF  SUPERVISED  DIRECTLY  OR INDIRECTLY BY A
PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 3. Subdivision (a) of section 1301 of the limited liability  company
law,  as separately amended by chapters 420 and 676 of the laws of 2002,
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

A. 1384--A                          5

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,  architectural  and/or  landscape
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 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 professional 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  prac-
tice  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
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 FORMED TO PROVIDE INTEGRATED MULTIDIS-
CIPLINARY MEDICAL SERVICES DEFINED IN ARTICLE 131 OF THE  EDUCATION  LAW

A. 1384--A                          6

WITH  OPTOMETRY AND/OR OPHTHALMIC DISPENSING SERVICES DEFINED IN ARTICLE
143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I)  EACH  MEMBER  OF  SUCH
LIMITED  LIABILITY  COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND
CERTIFIED BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED PURSU-
ANT  TO  ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE
ONE OR MORE OF SUCH PROFESSIONS IN THIS STATE, (II)  EACH  MEMBER  SHALL
ONLY  PRACTICE  HIS OR HER PROFESSION AS SPECIFIED IN HIS OR HER RESPEC-
TIVE PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131,  ARTICLE  143,  OR
ARTICLE  144 OF THE EDUCATION LAW, AND (III) THE CLINICAL INTEGRATION OF
PROFESSIONAL PRACTICES WITHIN AN  INTEGRATED,  MULTIDISCIPLINARY  ENTITY
ORGANIZED UNDER THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE
OF  PRACTICE OF ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS
OR HER RESPECTIVE PROFESSIONAL ENABLING  LAW,  PROVIDED  THAT:  (A)  THE
CLINICAL  JUDGMENT,  MANAGEMENT  AND  CLINICAL DECISION-MAKING OF ONE OR
MORE ARTICLE 131 PROVIDERS IN AN INTEGRATED,  MULTIDISCIPLINARY  PROFES-
SIONAL  SERVICE  LIMITED  LIABILITY  COMPANY  SHALL  BE CONTROLLING, (B)
MEMBERS LICENSED UNDER ARTICLE 143 AND/OR ARTICLE 144 OF  THE  EDUCATION
LAW,  SHALL  NOT,  DIRECTLY  OR  INDIRECTLY, INTERFERE WITH THE CLINICAL
JUDGMENT OR LEGITIMATE CLINICAL  PRACTICE  OF  A  PROFESSIONAL  LICENSED
UNDER  ARTICLE  131,  AND (C) INDIVIDUALS LICENSED UNDER ARTICLE 131 MAY
NOT ORDER OR DIRECT A PROFESSIONAL LICENSED  UNDER  ARTICLE  143  AND/OR
ARTICLE  144 OF THE EDUCATION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR
HER LICENSE UNDER ARTICLE 143 AND/OR ARTICLE 144 OF THE  EDUCATION  LAW,
EVEN  IF  SUPERVISED  DIRECTLY  OR INDIRECTLY BY A PROFESSIONAL LICENSED
UNDER ARTICLE 131.
  S 4. Paragraph (a) of section 1503 of the business corporation law, as
amended by chapter 550 of the laws  of  2011,  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 or land surveying 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 DULY LICENSED  TO  PRACTICE  MEDICINE  AND  WHO  ARE
CERTIFIED  BY THE AMERICAN BOARD OF OPHTHALMOLOGY, AND ONE OR MORE OPTO-
METRIST AND/OR OPHTHALMIC DISPENSER LICENSED UNDER  ARTICLE  143  AND/OR
ARTICLE  144  OF THE EDUCATION LAW, WHO MAY BE BOARD CERTIFIED OR QUALI-
FIED BY HIS OR HER RESPECTIVE PROFESSIONAL SPECIALTY BOARDS, MAY  ORGAN-
IZE, OR CAUSE TO BE ORGANIZED, FOR BUSINESS PURPOSES ONLY, A MULTIDISCI-
PLINARY  PROFESSIONAL  SERVICE  CORPORATION  FORMED FOR PECUNIARY PROFIT
UNDER THIS ARTICLE FOR THE PURPOSE OF RENDERING INTEGRATED AND NON-INTE-
GRATED PROFESSIONAL SERVICES WITHIN SUCH A CORPORATION AS SUCH  INDIVID-
UALS  ARE  AUTHORIZED  TO PRACTICE INDIVIDUALLY IN HIS OR HER RESPECTIVE
PROFESSIONS, PROVIDED THAT  THE  CLINICAL  INTEGRATION  OF  PROFESSIONAL
PRACTICES  WITHIN AN ENTITY ORGANIZED UNDER THIS SECTION DOES NOT ALTER,
EXPAND OR CURTAIL THE SCOPE  OF  PRACTICE  OF  ANY  OF  THE  INDIVIDUALS
LICENSED  UNDER THE STATUTE OF HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
ING  LAW;  THAT  THE  CLINICAL   JUDGMENT,   MANAGEMENT   AND   CLINICAL
DECISION-MAKING  OF  ONE OR MORE ARTICLE 131 PROVIDERS IN AN INTEGRATED,
MULTIDISCIPLINARY PRACTICE SHALL BE CONTROLLING; THAT  MEMBERS  LICENSED

A. 1384--A                          7

UNDER  ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW, SHALL NOT,
DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR  LEGITI-
MATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED UNDER ARTICLE 131; AND
THAT  INDIVIDUALS  LICENSED  UNDER ARTICLE 131 MAY NOT ORDER OR DIRECT A
PROFESSIONAL LICENSED UNDER ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCA-
TION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER  ARTI-
CLE  143  AND/OR  ARTICLE  144  OF  THE  EDUCATION LAW IN A PROFESSIONAL
SERVICE LIMITED LIABILITY COMPANY, EVEN IF SUPERVISED DIRECTLY OR  INDI-
RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S  5.  Subdivision  (q) of section 121-1500 of the partnership law, as
separately amended by chapters 420 and 676  of  the  laws  of  2002,  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,  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 practice  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 crea-
tive 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 article 163 of the  education  law  to  practice
psychoanalysis  in  this  state.  EACH  PARTNER  OF A REGISTERED LIMITED
LIABILITY PARTNERSHIP FORMED TO  PROVIDE  INTEGRATED,  MULTIDISCIPLINARY
MEDICAL  SERVICES DEFINED IN ARTICLE 131 OF THE EDUCATION LAW WITH OPTO-
METRY AND/OR OPHTHALMIC  DISPENSING  SERVICES  DEFINED  IN  ARTICLE  143
AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I) EACH MEMBER OF SUCH LIMITED
LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE 131 AND CERTIFIED
BY  THE  AMERICAN  BOARD  OF  OPHTHALMOLOGY, AND/OR LICENSED PURSUANT TO
ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRACTICE  ONE  OR
MORE  OF SUCH PROFESSIONS IN THIS STATE, (II) SHALL ONLY PRACTICE HIS OR
HER PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE PROFESSIONAL ENABL-
ING STATUTE UNDER ARTICLE 131, ARTICLE 143, OR ARTICLE 144 OF THE EDUCA-
TION LAW, AND (III) THE CLINICAL INTEGRATION OF  PROFESSIONAL  PRACTICES
WITHIN  AN  INTEGRATED,  MULTI-DISCIPLINARY  ENTITY ORGANIZED UNDER THIS
SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE SCOPE OF PRACTICE  OF  ANY

A. 1384--A                          8

OF  THE  INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR HER RESPECTIVE
PROFESSIONAL ENABLING LAW, PROVIDED THAT:  (A)  THE  CLINICAL  JUDGMENT,
MANAGEMENT  AND  CLINICAL  DECISION-MAKING  OF  ONE  OR MORE ARTICLE 131
PROVIDERS  IN  AN  INTEGRATED,  MULTIDISCIPLINARY  PROFESSIONAL  SERVICE
LIMITED LIABILITY COMPANY SHALL BE  CONTROLLING,  (B)  MEMBERS  LICENSED
UNDER  ARTICLE  143  AND/OR ARTICLE 144 OF THE EDUCATION LAW, SHALL NOT,
DIRECTLY OR INDIRECTLY, INTERFERE WITH THE CLINICAL JUDGMENT OR  LEGITI-
MATE CLINICAL PRACTICE OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, AND
(C)  INDIVIDUALS  LICENSED  UNDER  ARTICLE 131 MAY NOT ORDER OR DIRECT A
PROFESSIONAL LICENSED UNDER ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCA-
TION LAW TO PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER  ARTI-
CLE  143  AND/OR  ARTICLE  144  OF THE EDUCATION LAW, EVEN IF SUPERVISED
DIRECTLY OR INDIRECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 6. Subdivision (q) of section 121-1502 of the  partnership  law,  as
amended  by  chapter  230  of  the  laws  of 2004, 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  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, 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. Each partner of a foreign limited  liability  partner-
ship which provides licensed clinical social work services in this state
must  be  licensed pursuant to article 154 of the education law to prac-
tice licensed clinical social work in this  state.  Each  partner  of  a
foreign limited liability partnership which provides creative arts ther-
apy  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  partnership  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  liabil-
ity partnership which provides 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
foreign  limited  liability  partnership  which  provides 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  FOREIGN  LIMITED  LIABILITY PARTNERSHIP FORMED TO PROVIDE INTEGRATED,
MULTIDISCIPLINARY MEDICAL SERVICES DEFINED IN ARTICLE 131 OF THE  EDUCA-
TION LAW WITH OPTOMETRY AND/OR OPHTHALMIC DISPENSING SERVICES DEFINED IN
ARTICLE  143 AND/OR ARTICLE 144 OF THE EDUCATION LAW, (I) EACH MEMBER OF
SUCH LIMITED LIABILITY COMPANY MUST BE LICENSED PURSUANT TO ARTICLE  131
AND  CERTIFIED  BY  THE AMERICAN BOARD OF OPHTHALMOLOGY, AND/OR LICENSED
PURSUANT TO ARTICLE 143 AND/OR ARTICLE 144 OF THE EDUCATION LAW TO PRAC-
TICE ONE OR MORE OF SUCH PROFESSIONS IN  THIS  STATE,  (II)  SHALL  ONLY
PRACTICE  HIS  OR  HER  PROFESSION AS SPECIFIED IN HIS OR HER RESPECTIVE
PROFESSIONAL ENABLING STATUTE UNDER ARTICLE 131, ARTICLE 143, OR ARTICLE

A. 1384--A                          9

144 OF THE EDUCATION LAW, AND (III) THE CLINICAL INTEGRATION OF  PROFES-
SIONAL  PRACTICES  WITHIN AN INTEGRATED, MULTIDISCIPLINARY ENTITY ORGAN-
IZED UNDER THIS SECTION DOES NOT ALTER, EXPAND OR CURTAIL THE  SCOPE  OF
PRACTICE  OF ANY OF THE INDIVIDUALS LICENSED UNDER THE STATUTE OF HIS OR
HER RESPECTIVE PROFESSIONAL ENABLING LAW, PROVIDED THAT: (A)  THE  CLIN-
ICAL  JUDGMENT,  MANAGEMENT  AND CLINICAL DECISION-MAKING OF ONE OR MORE
ARTICLE 131 PROVIDERS IN AN INTEGRATED,  MULTIDISCIPLINARY  PROFESSIONAL
SERVICE  LIMITED LIABILITY COMPANY SHALL BE CONTROLLING, (B) MEMBERS NOT
LICENSED UNDER ARTICLE 131 OF THE EDUCATION LAW, SHALL NOT, DIRECTLY  OR
INDIRECTLY,  INTERFERE WITH THE CLINICAL JUDGMENT OR LEGITIMATE CLINICAL
PRACTICE OF A PROFESSIONAL LICENSED UNDER ARTICLE 131, AND (C)  INDIVID-
UALS  LICENSED  UNDER ARTICLE 131 MAY NOT ORDER OR DIRECT A PROFESSIONAL
LICENSED UNDER ARTICLE 143 AND/OR ARTICLE 144 OF THE  EDUCATION  LAW  TO
PRACTICE BEYOND THE SCOPE OF HIS OR HER LICENSE UNDER ARTICLE 143 AND/OR
ARTICLE  144  OF THE EDUCATION LAW, EVEN IF SUPERVISED DIRECTLY OR INDI-
RECTLY BY A PROFESSIONAL LICENSED UNDER ARTICLE 131.
  S 7. Subdivision 1 of section 2801 of the public health law, as  sepa-
rately  amended  by chapters 297 and 416 of the laws of 1983, 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, for the
prevention, diagnosis or  treatment  of  human  disease,  pain,  injury,
deformity or physical condition, including, but not limited to, a gener-
al  hospital, public health center, diagnostic center, treatment center,
dental clinic, dental dispensary, rehabilitation  center  other  than  a
facility used solely for vocational rehabilitation, nursing home, tuber-
culosis  hospital,  chronic disease hospital, maternity hospital, lying-
in-asylum, out-patient department, out-patient lodge, dispensary  and  a
laboratory  or  central service facility serving one or more such insti-
tutions, but the term hospital shall not include an  institution,  sani-
tarium  or  other facility engaged principally in providing services for
the prevention, diagnosis or treatment of mental disability and which is
subject to the powers of visitation, examination, inspection and  inves-
tigation  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 religious 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
BUSINESS  CORPORATION,  LIMITED  LIABILITY  CORPORATION  OR  PARTNERSHIP
BETWEEN  A  MEDICAL  DOCTOR  AND  A  DULY LICENSED TITLE VIII HEALTHCARE
PROFESSIONAL.
  S 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  OPTOMETRIST  AND/OR  OPHTHALMIC
DISPENSER  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

A. 1384--A                         10

is otherwise dependent upon, the income or receipts of the licensee from
such practice, 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;
  S 9. Section 6509-a of the education law, as amended by chapter 555 of
the laws of 1993, is amended to read as follows:
  S 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,
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 AN INTEGRATED, MULTIDISCIPLINARY  MEDICAL  AND  OPTOMETRY
AND/OR OPHTHALMIC DISPENSING PRACTICE FORMED PURSUANT TO SUBDIVISION (A)
OR  (B) OF SECTION TWELVE HUNDRED THREE OF THE LIMITED LIABILITY COMPANY
LAW, SUBDIVISION (A) OF SECTION THIRTEEN  HUNDRED  ONE  OF  THE  LIMITED

A. 1384--A                         11

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 PARTNER-
SHIP 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 indem-
nity corporation and to the subscriber statements itemizing the services
rendered by each such professional and the charges therefor.
  S 10. Section 6531 of the education law, as amended by chapter 555  of
the laws of 1993, is amended to read as follows:
  S 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
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 AN INTEGRATED,  MULTIDISCIPLI-

A. 1384--A                         12

NARY  MEDICAL AND OPTOMETRY AND/OR OPHTHALMIC DISPENSING PRACTICE FORMED
PURSUANT TO SUBDIVISION (A) OR (B) OF SECTION TWELVE  HUNDRED  THREE  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 corporation
licensed  pursuant  to article forty-three of the insurance law pursuant
to its contract with the  subscribed  from  prorationing  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 state-
ments itemizing the services rendered by each such professional and  the
charges therefor.
  S  11.  This act shall take effect on the thirtieth day after it shall
have became a law.