§ 6503-A — Waiver for entities providing certain professional services

§ 6503-a. Waiver for entities providing certain professional services.\n1. a. Notwithstanding any laws to the contrary, except as provided in\nsubdivision two of this section, a not-for-profit corporation formed for\ncharitable, educational, or religious purposes or other similar purposes\ndeemed acceptable by the department; or an education corporation as\ndefined in subdivision one of section two hundred sixteen-a of this\nchapter may provide the following services, provided that, except as\notherwise provided in paragraph b of this subdivision, the entity was in\nexistence prior to the effective date of this section and has applied to\nthe department for a waiver pursuant to this section by no later than\nFebruary first, two thousand twelve:\n (i) services provided under article one hundred fifty-four, one\nhundred sixty-three or one hundred sixty-seven of this title for which\nlicensure would be required, or\n (ii) services constituting the provision of psychotherapy as defined\nin subdivision two of section eighty-four hundred one of this title and\nauthorized and provided under article one hundred thirty-one, one\nhundred thirty-nine, or one hundred fifty-three of this title.\n Such services may be provided either directly through the entity's\nemployees or indirectly by contract with individuals or professional\nentities duly licensed, registered, or authorized to provide such\nservices.\n b. The department may issue a waiver on or after July first, two\nthousand twelve to an entity which was created before, on, or after the\neffective date of this section if there is a demonstration of need of\nthe entity's services satisfactory to the department.\n c. After the commissioner prescribes the application form and posts\nnotice of its availability on the department's website, any entity\ndescribed in paragraph a of this subdivision providing services on the\neffective date of this section, must apply for a waiver no later than\nFebruary first, two thousand twelve. Upon submission of an application,\nan entity may continue to operate and provide services until the\ndepartment shall either deny or approve the entity's application. After\nthe department renders a timely initial determination that the applicant\nhas submitted the information necessary to verify that the requirements\nof paragraphs d, e, and f of this subdivision are satisfied,\napplications for waivers shall be approved or denied within ninety days;\nprovided however, that if the waiver application is denied the entity\nshall cease providing professional services, pursuant to paragraph a of\nthis subdivision, in the state of New York.\n d. Such waiver shall provide that services rendered pursuant to this\nsection, directly or indirectly, shall be provided only by a person\nappropriately licensed to provide such services pursuant to article one\nhundred thirty-one, one hundred thirty-nine, one hundred fifty-three,\none hundred fifty-four, or one hundred sixty-three of this title, or by\na person otherwise authorized to provide such services under such\narticles, or by a professional entity authorized by law to provide such\nservices.\n e. An application for a waiver to provide professional services\npursuant to this section shall be on a form prescribed by the\ncommissioner. Such application shall include:\n (i) the name of the entity,\n (ii) the names of the directors and officers of such entity,\n (iii) a listing of any other jurisdictions where the entity may\nprovide services, and\n (iv) an attestation made by an officer authorized by the entity to\nmake such attestation that identifies the scope of services to be\nprovided; includes a list of professions under this title in which\nprofessional services will be provided by such entity; includes a\nstatement that, unless otherwise authorized by law, the entity shall\nonly provide professional services authorized under this section;\nincludes a statement that only a licensed professional, a person\notherwise authorized to provide such services, or a professional entity\nauthorized by law to provide such services shall provide such\nprofessional services as authorized under this section; and attests to\nthe adequacy of the entity's fiscal and financial resources to provide\nsuch services.\n Such application shall also include any other information related to\nthe application as may be required by the department.\n f. Each officer and director of such entity shall provide an\nattestation regarding his or her good moral character as required\npursuant to paragraph h of this subdivision. The commissioner shall be\nfurther authorized to promulgate rules or regulations relating to the\nstandards of the waiver for entities pursuant to this section. Such\nregulations shall include standards relating to the entity's ability to\nprovide services, the entity's maintenance of patient and business\nrecords, the entity's fiscal policies, and such other standards as may\nbe prescribed by the commissioner.\n g. The entity operating pursuant to a waiver shall display, at each\nsite where professional services are provided to the public, a\ncertificate of such waiver issued by the department pursuant to this\nsection, which shall contain the name of the entity and the address of\nthe site. Such entities shall obtain from the department additional\ncertificates for each site at which professional services are provided\nto the public. Each entity shall be required to re-apply for a waiver\nevery three years. If any information supplied to the department\nregarding the entity shall change, the entity shall be required to\nprovide such updated information to the department within sixty days.\n h. Entities operating under a waiver pursuant to this section shall be\nunder the supervision of the regents and shall be subject to\ndisciplinary proceedings and penalties. The waivers for such entities\nshall be subject to suspension, revocation or annulment for cause in the\nsame manner and to the same extent as individuals and professional\nservices corporations with respect to their licenses, certificates, and\nregistrations, as applicable, as provided in this title relating to the\napplicable profession. All officers and directors of such entities shall\nbe of good moral character. Entities operating pursuant to a waiver and\ntheir officers and directors shall be entitled to the same due process\nprocedures as are provided to such individuals and professional services\ncorporations. No waiver issued under this section shall be transferable\nor assignable, as such terms are defined in the regulations of the\ncommissioner.\n i. An entity operating pursuant to a waiver shall not practice any\nprofession licensed pursuant to this title or hold itself out to the\npublic as authorized to provide professional services pursuant to this\ntitle except as specifically authorized by this section or as otherwise\nauthorized by law.\n 2. No waiver pursuant to this section shall be required of:\n a. any entity operated under an operating certificate appropriately\nissued in accordance with article sixteen, thirty-one, or thirty-two of\nthe mental hygiene law, article twenty-eight of the public health law,\nor comparable procedures by a New York state or federal agency,\npolitical subdivision, municipal corporation, or local government agency\nor unit, in accordance with the scope of the authority of such operating\ncertificate; or\n b. a university faculty practice corporation duly incorporated\npursuant to the not-for-profit corporation law; or\n c. an institution of higher education authorized to provide a program\nleading to licensure in a profession defined under article one hundred\nthirty-one, one hundred thirty-nine, one hundred fifty-three, one\nhundred fifty-four or one hundred sixty-three of this title, to the\nextent that the scope of such services is limited to the services\nauthorized to be provided within such registered program; or\n d. an institution of higher education providing counseling only to the\nstudents, staff, or family members of students and staff of such\ninstitution; or\n e. any other entity as may be defined in the regulations of the\ncommissioner, provided that such entity is otherwise authorized to\nprovide such services pursuant to law and only to the extent such\nservices are authorized under any certificates of incorporation or such\nother organizing documents as may be applicable.\n 3. Nothing in this section shall be construed to limit the authority\nof another state agency to certify, license, contract or otherwise\nauthorize an entity applying for a waiver pursuant to this section, if\nsuch state agency is otherwise authorized under another provision of law\nto certify, license, contract or authorize such an entity, nor shall a\nwaiver pursuant to this section be construed to provide an exemption of\nsuch entity from any certification, licensure, need to contract or any\nother such requirement established by such state agency or under any\nother provision of law. If a state agency determines that such\ncertification, licensure, contract or other authorization is required, a\nwaiver pursuant to this section shall not have the effect of authorizing\nthe provision of professional services under the jurisdiction of such\nagency in the absence of certification, licensure, a contract or other\nauthorization from such state agency, and the department shall consult\nwith such agency regarding the need for licensure, contracting,\ncertification or authorization. In determining an application for a\nwaiver pursuant to this section, the department shall consider as a\nfactor in such determination any denial of an operating certificate or\nother authority to provide the services authorized pursuant to this\nsection by a New York state or federal agency, political subdivision,\nmunicipal corporation, or local government agency or unit, and shall not\napprove a waiver application authorizing an entity to provide a program\nor services where the entity operated such a program or provided such\nservices for which an operating certificate or license is pending, was\ndisapproved or was revoked, or a written authorization or contract was\nterminated for cause, by one of such agencies, except upon approval of\nsuch action by the appropriate state agency. Such state agencies shall\nnotify the department, upon request and within a fifteen day period,\nwhether a waiver applicant has been subject to such disapproval,\nrevocation or termination for cause or has a pending application for a\nlicense or operating certificate.\n 4. Nothing in this section shall be construed to limit the authority\nof the following entities to provide professional services they are\nauthorized by law to provide:\n a. any appropriately organized professional entity, including, but not\nlimited to, those established under the business corporation law, the\nlimited liability company law or the partnership law; or\n b. any entity operated by a New York state or federal agency,\npolitical subdivision, municipal corporation, or local government agency\nor unit pursuant to authority granted by law, including but not limited\nto any entity operated by the office of mental health, the office for\npeople with developmental disabilities, or the office of alcoholism and\nsubstance abuse services under articles seven, thirteen, and nineteen of\nthe mental hygiene law, respectively.\n 5. For the purposes of this section, "professional entity" shall mean\nand include sole proprietorships and any professional services\norganization established pursuant to article fifteen of the business\ncorporation law, article twelve of the limited liability company law and\nsection two and article eight-B of the partnership law.\n