Update on Legislation!
From:Heather Evans, Hinman Straub Advisors, Inc.
Re: Corporate Practice Bill(s)
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The following two pieces of legislation relating to the corporate practice of certain professions were signed by the governor on June 18, 2010.
Chapter 130 of the Laws of 2010: S.5921-A Senator Stavisky & A.8897-A Member of the Assembly Pretlow
Chapter 132 of the Laws of 2010: S.8178 Senator Stavisky & A.11440 (Rules), {Chapter Amendment}
Below is an outline of the various provisions of the new law:
The Department of Education may authorize not-for-profit corporations (formed for charitable, educational or religious purposes) or education corporations which offer services provided by certain professionals licensed under Education Law that are not otherwise authorized, to provide those professional services upon obtaining a waiver from the Department by July 1, 2012. Licensed professions included are: (Education Law)
Article 131 Medicine
Article 139 Nursing
Article 153 Psychology
Article 154 Social Work
Article 163 Mental Health Practitioners (LMHC, LCAT, LP, LMFT)
Not-for-profit corporations or education corporations that offer such professional services on the effective date (June 18, 2010) would be allowed to continue to do so provided that the entity applies for a waiver within 120 days after the Department prescribes an application form.
Upon submission of a waiver application, the not-for-profit corporation or education corporation would be allowed to operate and provide services until its application is approved or denied. After the Department receives all necessary information for a waiver application, the Department would be required to approve or deny a waiver within 90 days. Not-for-profit corporations or education corporations which have obtained a waiver are required to reapply every three years.
The following entities would not be required to obtain a waiver:
appropriately organized professional entities,
certain entities operated by New York State or federal agencies, political subdivisions, municipal corporations, or local government agencies or units or entities operated under properly issued operating certificates,
a university faculty practice corporation established under the Not-for-Profit Corporation Law,
institutions of higher education authorized to offer programs leading to licensure in these professions (as part of a registered program), and
institutions of higher education that provide counseling to students or staff and their families.
Not-for-profit corporations or education corporations which have had an operating certificate denied, revoked, suspended or terminated for cause may not be eligible for a waiver.
Not-for-profit corporations or education corporations which obtain a waiver to provide professional services are to be supervised by the Regents of the University of the State of New York and would be subject to disciplinary action to the same extent as professionals licensed under Title VIII of the Education Law, including revocation, suspension and annulment.
The Department of Education has the discretion, for good cause, to accept satisfactory experience (for the purpose of obtaining licensure) acquired in an entity operating under a waiver by the Department; notwithstanding that such experience was obtained prior to the issuance of the waiver. The Department may accept experience that was obtained in “good faith” by the applicant under the belief that appropriate authorization has been obtained for experience. However, such experience still needs to meet all other requirements for licensure of that profession. This provision applies to LMHC, LCSW, LP, LCAT, and LMFT.
The social work, mental health practitioner and psychological licensure exemptions to certain state agencies and local governmental units is extended until July 1, 2013; an additional three years.
Exempted state agencies, social services districts and local governmental units are required to complete a self workforce study by October 10, 2010 for submission to the Commissioner of Education. Such report shall include data relating to the utilization and function of its workforce.
After receipt of the data, the Commissioner of Education shall convene a workgroup of state agencies to review the data and develop recommendations regarding any amendments to current law, rule or regulation necessary to clarify tasks and activities which must be performed by licensed professionals. By January 1, 2011, the Commissioner of Education shall develop criteria for the development of a report by the entities affected which includes guidance regarding such tasks and activities performed by licensed professionals.
On or before July 1, 2011, each state agency shall submit to the Commissioner of Education a report on the utilization of personal. Such report shall also include a plan detailing measures by which such entities comply with the requirements of licensure by the sunset of the exemption (July 1, 2013).
The Commissioner of Education shall submit by July 1, 2012 to the Executive and the Legislature a report recommending any amendments to law, rules or regulation necessary to fully implement the requirements for licensure by expiration of the exemption (July 1, 2013). Such report shall be developed after consultation with key stakeholder groups, such as, state agencies, not-for-profit providers, professional associations, and consumers.
The provisions take effect immediately.
