STATE OF NEW YORK ________________________________________________________________________ 5715 2017-2018 Regular Sessions IN SENATE April 26, 2017 ___________ Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the limited liability company law and the partnership law, in relation to permitting licensed clinical social workers, licensed psychiatrists and licensed psychologists The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (a) of section 1203 of the limited liability 2 company law, as amended by chapter 475 of the laws of 2014, is amended 3 to read as follows: 4 (a) Notwithstanding the education law or any other provision of law, 5 one or more professionals each of whom is authorized by law to render a 6 professional service within the state, or one or more professionals, at 7 least one of whom is authorized by law to render a professional service 8 within the state, may form, or cause to be formed, a professional 9 service limited liability company for pecuniary profit under this arti- 10 cle for the purpose of rendering the professional service or services as 11 such professionals are authorized to practice. With respect to a profes- 12 sional service limited liability company formed to provide medical 13 services as such services are defined in article 131 of the education 14 law, each member of such limited liability company must be licensed 15 pursuant to article 131 of the education law to practice medicine in 16 this state except as provided herein. With respect to a professional 17 service limited liability company formed to provide dental services as 18 such services are defined in article 133 of the education law, each 19 member of such limited liability company must be licensed pursuant to 20 article 133 of the education law to practice dentistry in this state. 21 With respect to a professional service limited liability company formed 22 to provide veterinary services as such services are defined in article 23 135 of the education law, each member of such limited liability company EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09112-01-7S. 5715 2 1 must be licensed pursuant to article 135 of the education law to prac- 2 tice veterinary medicine in this state. With respect to a professional 3 service limited liability company formed to provide professional engi- 4 neering, land surveying, architectural, landscape architectural and/or 5 geological services as such services are defined in article 145, article 6 147 and article 148 of the education law, each member of such limited 7 liability company must be licensed pursuant to article 145, article 147 8 and/or article 148 of the education law to practice one or more of such 9 professions in this state. With respect to a professional service limit- 10 ed liability company formed to provide licensed clinical social work 11 services as such services are defined in article 154 of the education 12 law, each member of such limited liability company shall be licensed 13 pursuant to article 154 of the education law to practice licensed clin- 14 ical social work in this state or licensed pursuant to article 131 of 15 the education law to practice psychiatry in this state or licensed 16 pursuant to article 153 of the education law to practice psychology in 17 this state. With respect to a professional service limited liability 18 company formed to provide creative arts therapy services as such 19 services are defined in article 163 of the education law, each member of 20 such limited liability company must be licensed pursuant to article 163 21 of the education law to practice creative arts therapy in this state. 22 With respect to a professional service limited liability company formed 23 to provide marriage and family therapy services as such services are 24 defined in article 163 of the education law, each member of such limited 25 liability company must be licensed pursuant to article 163 of the educa- 26 tion law to practice marriage and family therapy in this state. With 27 respect to a professional service limited liability company formed to 28 provide mental health counseling services as such services are defined 29 in article 163 of the education law, each member of such limited liabil- 30 ity company must be licensed pursuant to article 163 of the education 31 law to practice mental health counseling in this state. With respect to 32 a professional service limited liability company formed to provide 33 psychoanalysis services as such services are defined in article 163 of 34 the education law, each member of such limited liability company must be 35 licensed pursuant to article 163 of the education law to practice 36 psychoanalysis in this state. With respect to a professional service 37 limited liability company formed to provide applied behavior analysis 38 services as such services are defined in article 167 of the education 39 law, each member of such limited liability company must be licensed or 40 certified pursuant to article 167 of the education law to practice 41 applied behavior analysis in this state. In addition to engaging in such 42 profession or professions, a professional service limited liability 43 company may engage in any other business or activities as to which a 44 limited liability company may be formed under section two hundred one of 45 this chapter. Notwithstanding any other provision of this section, a 46 professional service limited liability company (i) authorized to prac- 47 tice law may only engage in another profession or business or activities 48 or (ii) which is engaged in a profession or other business or activities 49 other than law may only engage in the practice of law, to the extent not 50 prohibited by any other law of this state or any rule adopted by the 51 appropriate appellate division of the supreme court or the court of 52 appeals. 53 § 2. Subdivision (b) of section 1207 of the limited liability company 54 law, as amended by chapter 475 of the laws of 2014, is amended to read 55 as follows:S. 5715 3 1 (b) With respect to a professional service limited liability company 2 formed to provide medical services as such services are defined in arti- 3 cle 131 of the education law, each member of such limited liability 4 company must be licensed pursuant to article 131 of the education law to 5 practice medicine in this state except as provided herein. With respect 6 to a professional service limited liability company formed to provide 7 dental services as such services are defined in article 133 of the 8 education law, each member of such limited liability company must be 9 licensed pursuant to article 133 of the education law to practice 10 dentistry in this state. With respect to a professional service limited 11 liability company formed to provide veterinary services as such services 12 are defined in article 135 of the education law, each member of such 13 limited liability company must be licensed pursuant to article 135 of 14 the education law to practice veterinary medicine in this state. With 15 respect to a professional service limited liability company formed to 16 provide professional engineering, land surveying, architectural, land- 17 scape architectural and/or geological services as such services are 18 defined in article 145, article 147 and article 148 of the education 19 law, each member of such limited liability company must be licensed 20 pursuant to article 145, article 147 and/or article 148 of the education 21 law to practice one or more of such professions in this state. With 22 respect to a professional service limited liability company formed to 23 provide licensed clinical social work services as such services are 24 defined in article 154 of the education law, each member of such limited 25 liability company shall be licensed pursuant to article 154 of the 26 education law to practice licensed clinical social work in this state or 27 licensed pursuant to article 131 of the education law to practice 28 psychiatry in this state or licensed pursuant to article 153 of the 29 education law to practice psychology in this state. With respect to a 30 professional service limited liability company formed to provide crea- 31 tive arts therapy services as such services are defined in article 163 32 of the education law, each member of such limited liability company must 33 be licensed pursuant to article 163 of the education law to practice 34 creative arts therapy in this state. With respect to a professional 35 service limited liability company formed to provide marriage and family 36 therapy services as such services are defined in article 163 of the 37 education law, each member of such limited liability company must be 38 licensed pursuant to article 163 of the education law to practice 39 marriage and family therapy in this state. With respect to a profes- 40 sional service limited liability company formed to provide mental health 41 counseling services as such services are defined in article 163 of the 42 education law, each member of such limited liability company must be 43 licensed pursuant to article 163 of the education law to practice mental 44 health counseling in this state. With respect to a professional service 45 limited liability company formed to provide psychoanalysis services as 46 such services are defined in article 163 of the education law, each 47 member of such limited liability company must be licensed pursuant to 48 article 163 of the education law to practice psychoanalysis in this 49 state. With respect to a professional service limited liability company 50 formed to provide applied behavior analysis services as such services 51 are defined in article 167 of the education law, each member of such 52 limited liability company must be licensed or certified pursuant to 53 article 167 of the education law to practice applied behavior analysis 54 in this state.S. 5715 4 1 § 3. Subdivision (a) of section 1301 of the limited liability company 2 law, as amended by chapter 475 of the laws of 2014, is amended to read 3 as follows: 4 (a) "Foreign professional service limited liability company" means a 5 professional service limited liability company, whether or not denomi- 6 nated as such, organized under the laws of a jurisdiction other than 7 this state, (i) each of whose members and managers, if any, is a profes- 8 sional authorized by law to render a professional service within this 9 state and who is or has been engaged in the practice of such profession 10 in such professional service limited liability company or a predecessor 11 entity, or will engage in the practice of such profession in the profes- 12 sional service limited liability company within thirty days of the date 13 such professional becomes a member, or each of whose members and manag- 14 ers, if any, is a professional at least one of such members is author- 15 ized by law to render a professional service within this state and who 16 is or has been engaged in the practice of such profession in such 17 professional service limited liability company or a predecessor entity, 18 or will engage in the practice of such profession in the professional 19 service limited liability company within thirty days of the date such 20 professional becomes a member, or (ii) authorized by, or holding a 21 license, certificate, registration or permit issued by the licensing 22 authority pursuant to, the education law to render a professional 23 service within this state; except that all members and managers, if any, 24 of a foreign professional service limited liability company that 25 provides health services in this state shall be licensed in this state. 26 With respect to a foreign professional service limited liability company 27 which provides veterinary services as such services are defined in arti- 28 cle 135 of the education law, each member of such foreign professional 29 service limited liability company shall be licensed pursuant to article 30 135 of the education law to practice veterinary medicine. With respect 31 to a foreign professional service limited liability company which 32 provides medical services as such services are defined in article 131 of 33 the education law, each member of such foreign professional service 34 limited liability company must be licensed pursuant to article 131 of 35 the education law to practice medicine in this state except as provided 36 herein. With respect to a foreign professional service limited liabil- 37 ity company which provides dental services as such services are defined 38 in article 133 of the education law, each member of such foreign profes- 39 sional service limited liability company must be licensed pursuant to 40 article 133 of the education law to practice dentistry in this state. 41 With respect to a foreign professional service limited liability company 42 which provides professional engineering, land surveying, geologic, 43 architectural and/or landscape architectural services as such services 44 are defined in article 145, article 147 and article 148 of the education 45 law, each member of such foreign professional service limited liability 46 company must be licensed pursuant to article 145, article 147 and/or 47 article 148 of the education law to practice one or more of such 48 professions in this state. With respect to a foreign professional 49 service limited liability company which provides licensed clinical 50 social work services as such services are defined in article 154 of the 51 education law, each member of such foreign professional service limited 52 liability company shall be licensed pursuant to article 154 of the 53 education law to practice clinical social work in this state or licensed 54 pursuant to article 131 of the education law to practice psychiatry in 55 this state or licensed pursuant to article 153 of the education law to 56 practice psychology in this state. With respect to a foreign profes-S. 5715 5 1 sional service limited liability company which provides creative arts 2 therapy services as such services are defined in article 163 of the 3 education law, each member of such foreign professional service limited 4 liability company must be licensed pursuant to article 163 of the educa- 5 tion law to practice creative arts therapy in this state. With respect 6 to a foreign professional service limited liability company which 7 provides marriage and family therapy services as such services are 8 defined in article 163 of the education law, each member of such foreign 9 professional service limited liability company must be licensed pursuant 10 to article 163 of the education law to practice marriage and family 11 therapy in this state. With respect to a foreign professional service 12 limited liability company which provides mental health counseling 13 services as such services are defined in article 163 of the education 14 law, each member of such foreign professional service limited liability 15 company must be licensed pursuant to article 163 of the education law to 16 practice mental health counseling in this state. With respect to a 17 foreign professional service limited liability company which provides 18 psychoanalysis services as such services are defined in article 163 of 19 the education law, each member of such foreign professional service 20 limited liability company must be licensed pursuant to article 163 of 21 the education law to practice psychoanalysis in this state. With respect 22 to a foreign professional service limited liability company which 23 provides applied behavior analysis services as such services are defined 24 in article 167 of the education law, each member of such foreign profes- 25 sional service limited liability company must be licensed or certified 26 pursuant to article 167 of the education law to practice applied behav- 27 ior analysis in this state. 28 § 4. Subdivision (q) of section 121-1500 of the partnership law, as 29 amended by chapter 475 of the laws of 2014, is amended to read as 30 follows: 31 (q) Each partner of a registered limited liability partnership formed 32 to provide medical services in this state must be licensed pursuant to 33 article 131 of the education law to practice medicine in this state 34 except as provided herein and each partner of a registered limited 35 liability partnership formed to provide dental services in this state 36 must be licensed pursuant to article 133 of the education law to prac- 37 tice dentistry in this state. Each partner of a registered limited 38 liability partnership formed to provide veterinary services in this 39 state must be licensed pursuant to article 135 of the education law to 40 practice veterinary medicine in this state. Each partner of a registered 41 limited liability partnership formed to provide professional engineer- 42 ing, land surveying, geological services, architectural and/or landscape 43 architectural services in this state must be licensed pursuant to arti- 44 cle 145, article 147 and/or article 148 of the education law to practice 45 one or more of such professions in this state. Each partner of a regis- 46 tered limited liability partnership formed to provide licensed clinical 47 social work services in this state must be licensed pursuant to article 48 154 of the education law to practice clinical social work in this state 49 or licensed pursuant to article 131 of the education law to practice 50 psychiatry in this state or licensed pursuant to article 153 of the 51 education law to practice psychology in this state. Each partner of a 52 registered limited liability partnership formed to provide creative arts 53 therapy services in this state must be licensed pursuant to article 163 54 of the education law to practice creative arts therapy in this state. 55 Each partner of a registered limited liability partnership formed to 56 provide marriage and family therapy services in this state must beS. 5715 6 1 licensed pursuant to article 163 of the education law to practice 2 marriage and family therapy in this state. Each partner of a registered 3 limited liability partnership formed to provide mental health counseling 4 services in this state must be licensed pursuant to article 163 of the 5 education law to practice mental health counseling in this state. Each 6 partner of a registered limited liability partnership formed to provide 7 psychoanalysis services in this state must be licensed pursuant to arti- 8 cle 163 of the education law to practice psychoanalysis in this state. 9 Each partner of a registered limited liability partnership formed to 10 provide applied behavior analysis service in this state must be licensed 11 or certified pursuant to article 167 of the education law to practice 12 applied behavior analysis in this state. 13 § 5. Subdivision (q) of section 121-1502 of the partnership law, as 14 amended by chapter 475 of the laws of 2014, is amended to read as 15 follows: 16 (q) Each partner of a foreign limited liability partnership which 17 provides medical services in this state must be licensed pursuant to 18 article 131 of the education law to practice medicine in the state 19 except as provided herein and each partner of a foreign limited liabil- 20 ity partnership which provides dental services in the state must be 21 licensed pursuant to article 133 of the education law to practice 22 dentistry in this state. Each partner of a foreign limited liability 23 partnership which provides veterinary service in the state shall be 24 licensed pursuant to article 135 of the education law to practice veter- 25 inary medicine in this state. Each partner of a foreign limited liabil- 26 ity partnership which provides professional engineering, land surveying, 27 geological services, architectural and/or landscape architectural 28 services in this state must be licensed pursuant to article 145, article 29 147 and/or article 148 of the education law to practice one or more of 30 such professions. Each partner of a foreign limited liability partner- 31 ship which provides licensed clinical social work services in this state 32 must be licensed pursuant to article 154 of the education law to prac- 33 tice licensed clinical social work in this state or licensed pursuant to 34 article 131 of the education law to practice psychiatry in this state or 35 licensed pursuant to article 153 of the education law to practice 36 psychology in this state. Each partner of a foreign limited liability 37 partnership which provides creative arts therapy services in this state 38 must be licensed pursuant to article 163 of the education law to prac- 39 tice creative arts therapy in this state. Each partner of a foreign 40 limited liability partnership which provides marriage and family therapy 41 services in this state must be licensed pursuant to article 163 of the 42 education law to practice marriage and family therapy in this state. 43 Each partner of a foreign limited liability partnership which provides 44 mental health counseling services in this state must be licensed pursu- 45 ant to article 163 of the education law to practice mental health coun- 46 seling in this state. Each partner of a foreign limited liability part- 47 nership which provides psychoanalysis services in this state must be 48 licensed pursuant to article 163 of the education law to practice 49 psychoanalysis in this state. Each partner of a foreign limited liabil- 50 ity partnership which provides applied behavior analysis services in 51 this state must be licensed or certified pursuant to article 167 of the 52 education law to practice applied behavior analysis in this state. 53 § 6. This act shall take effect immediately.