2023 New York Laws › EDN - Education › Title 8 - The Professions › Article 130* - General Provisions › Sub Art. 1 - Introductory Summary. › 6503-A - Waiver for Entities Providing Certain Professional Services.

§ 6503-a. Waiver for entities providing certain professional services.
1.  a.  Notwithstanding  any laws to the contrary, except as provided in
subdivision two of this section, a not-for-profit corporation formed for
charitable, educational, or religious purposes or other similar purposes
deemed acceptable by the department;  or  an  education  corporation  as
defined  in  subdivision  one  of  section two hundred sixteen-a of this
chapter may provide the following services,  provided  that,  except  as
otherwise provided in paragraph b of this subdivision, the entity was in
existence prior to the effective date of this section and has applied to
the  department  for  a waiver pursuant to this section by no later than
February first, two thousand twelve:
(i) services  provided  under  article  one  hundred  fifty-four,  one
hundred  sixty-three  or one hundred sixty-seven of this title for which
licensure would be required, or
(ii) services constituting the provision of psychotherapy  as  defined
in  subdivision two of section eighty-four hundred one of this title and
authorized and  provided  under  article  one  hundred  thirty-one,  one
hundred thirty-nine, or one hundred fifty-three of this title.
Such  services  may  be  provided either directly through the entity's
employees or indirectly by contract  with  individuals  or  professional
entities  duly  licensed,  registered,  or  authorized  to  provide such
services.
b. The department may issue a waiver  on  or  after  July  first,  two
thousand  twelve to an entity which was created before, on, or after the
effective date of this section if there is a demonstration  of  need  of
the entity's services satisfactory to the department.
c.  After  the  commissioner prescribes the application form and posts
notice of its availability  on  the  department's  website,  any  entity
described  in  paragraph a of this subdivision providing services on the
effective date of this section, must apply for a waiver  no  later  than
February  first, two thousand twelve. Upon submission of an application,
an entity may  continue  to  operate  and  provide  services  until  the
department  shall either deny or approve the entity's application. After
the department renders a timely initial determination that the applicant
has submitted the information necessary to verify that the  requirements
of   paragraphs   d,  e,  and  f  of  this  subdivision  are  satisfied,
applications for waivers shall be approved or denied within ninety days;
provided however, that if the waiver application is  denied  the  entity
shall  cease providing professional services, pursuant to paragraph a of
this subdivision, in the state of New York.
d. Such waiver shall provide that services rendered pursuant  to  this
section,  directly  or  indirectly,  shall  be provided only by a person
appropriately licensed to provide such services pursuant to article  one
hundred  thirty-one,  one  hundred thirty-nine, one hundred fifty-three,
one hundred fifty-four, or one hundred sixty-three of this title, or  by
a  person  otherwise  authorized  to  provide  such  services under such
articles, or by a professional entity authorized by law to provide  such
services.
e.  An  application  for  a  waiver  to  provide professional services
pursuant  to  this  section  shall  be  on  a  form  prescribed  by  the
commissioner. Such application shall include:
(i) the name of the entity,
(ii) the names of the directors and officers of such entity,
(iii)  a  listing  of  any  other  jurisdictions  where the entity may
provide services, and
(iv) an attestation made by an officer authorized  by  the  entity  to
make  such  attestation  that  identifies  the  scope  of services to be
provided; includes a list of  professions  under  this  title  in  which

professional  services  will  be  provided  by  such  entity; includes a
statement that, unless otherwise authorized by  law,  the  entity  shall
only  provide  professional  services  authorized  under  this  section;
includes  a  statement  that  only  a  licensed  professional,  a person
otherwise authorized to provide such services, or a professional  entity
authorized   by   law  to  provide  such  services  shall  provide  such
professional services as authorized under this section; and  attests  to
the  adequacy  of the entity's fiscal and financial resources to provide
such services.
Such application shall also include any other information  related  to
the application as may be required by the department.
f.  Each  officer  and  director  of  such  entity  shall  provide  an
attestation regarding his  or  her  good  moral  character  as  required
pursuant  to  paragraph h of this subdivision. The commissioner shall be
further authorized to promulgate rules or regulations  relating  to  the
standards  of  the  waiver  for  entities pursuant to this section. Such
regulations shall include standards relating to the entity's ability  to
provide  services,  the  entity's  maintenance  of  patient and business
records, the entity's fiscal policies, and such other standards  as  may
be prescribed by the commissioner.
g.  The  entity  operating pursuant to a waiver shall display, at each
site  where  professional  services  are  provided  to  the  public,   a
certificate  of  such  waiver  issued by the department pursuant to this
section, which shall contain the name of the entity and the  address  of
the  site.  Such  entities  shall  obtain from the department additional
certificates for each site at which professional services  are  provided
to  the public.   Each entity shall be required to re-apply for a waiver
every three  years.  If  any  information  supplied  to  the  department
regarding  the  entity  shall  change,  the  entity shall be required to
provide such updated information to the department within sixty days.
h. Entities operating under a waiver pursuant to this section shall be
under  the  supervision  of  the  regents  and  shall  be   subject   to
disciplinary  proceedings  and  penalties. The waivers for such entities
shall be subject to suspension, revocation or annulment for cause in the
same manner and to the  same  extent  as  individuals  and  professional
services  corporations with respect to their licenses, certificates, and
registrations, as applicable, as provided in this title relating to  the
applicable profession. All officers and directors of such entities shall
be  of good moral character. Entities operating pursuant to a waiver and
their officers and directors shall be entitled to the same  due  process
procedures as are provided to such individuals and professional services
corporations.  No waiver issued under this section shall be transferable
or assignable, as such terms are  defined  in  the  regulations  of  the
commissioner.
i.  An  entity  operating  pursuant to a waiver shall not practice any
profession licensed pursuant to this title or hold  itself  out  to  the
public  as  authorized to provide professional services pursuant to this
title except as specifically authorized by this section or as  otherwise
authorized by law.
2. No waiver pursuant to this section shall be required of:
a.  any  entity  operated under an operating certificate appropriately
issued in accordance with article sixteen, thirty-one, or thirty-two  of
the  mental  hygiene law, article twenty-eight of the public health law,
or comparable  procedures  by  a  New  York  state  or  federal  agency,
political subdivision, municipal corporation, or local government agency
or unit, in accordance with the scope of the authority of such operating
certificate; or
b.   a  university  faculty  practice  corporation  duly  incorporated
pursuant to the not-for-profit corporation law; or
c.  an institution of higher education authorized to provide a program
leading to licensure in a profession defined under article  one  hundred
thirty-one,  one  hundred  thirty-nine,  one  hundred  fifty-three,  one
hundred fifty-four or one hundred sixty-three  of  this  title,  to  the
extent  that  the  scope  of  such  services  is limited to the services
authorized to be provided within such registered program; or
d. an institution of higher education providing counseling only to the
students, staff, or  family  members  of  students  and  staff  of  such
institution; or
e.  any  other  entity  as  may  be  defined in the regulations of the
commissioner, provided that  such  entity  is  otherwise  authorized  to
provide  such  services  pursuant  to  law  and  only to the extent such
services are authorized under any certificates of incorporation or  such
other organizing documents as may be applicable.
3.  Nothing  in this section shall be construed to limit the authority
of another state agency  to  certify,  license,  contract  or  otherwise
authorize  an  entity applying for a waiver pursuant to this section, if
such state agency is otherwise authorized under another provision of law
to certify, license, contract or authorize such an entity, nor  shall  a
waiver  pursuant to this section be construed to provide an exemption of
such entity from any certification, licensure, need to contract  or  any
other  such  requirement  established  by such state agency or under any
other  provision  of  law.  If  a  state  agency  determines  that  such
certification, licensure, contract or other authorization is required, a
waiver pursuant to this section shall not have the effect of authorizing
the  provision  of  professional services under the jurisdiction of such
agency in the absence of certification, licensure, a contract  or  other
authorization  from  such state agency, and the department shall consult
with  such  agency  regarding  the  need  for  licensure,   contracting,
certification  or  authorization.  In  determining  an application for a
waiver pursuant to this section, the  department  shall  consider  as  a
factor  in  such determination any denial of an operating certificate or
other authority to provide the  services  authorized  pursuant  to  this
section  by  a  New York state or federal agency, political subdivision,
municipal corporation, or local government agency or unit, and shall not
approve a waiver application authorizing an entity to provide a  program
or  services  where  the entity operated such a program or provided such
services for which an operating certificate or license is  pending,  was
disapproved  or  was revoked, or a written authorization or contract was
terminated for cause, by one of such agencies, except upon  approval  of
such  action  by the appropriate state agency. Such state agencies shall
notify the department, upon request and within  a  fifteen  day  period,
whether  a  waiver  applicant  has  been  subject  to  such disapproval,
revocation or termination for cause or has a pending application  for  a
license or operating certificate.
4.  Nothing  in this section shall be construed to limit the authority
of the following entities to  provide  professional  services  they  are
authorized by law to provide:
a. any appropriately organized professional entity, including, but not
limited  to,  those  established under the business corporation law, the
limited liability company law or the partnership law; or
b. any entity  operated  by  a  New  York  state  or  federal  agency,
political subdivision, municipal corporation, or local government agency
or  unit pursuant to authority granted by law, including but not limited
to any entity operated by the office of mental health,  the  office  for
people  with developmental disabilities, or the office of alcoholism and

substance abuse services under articles seven, thirteen, and nineteen of
the mental hygiene law, respectively.
5.  For the purposes of this section, "professional entity" shall mean
and  include  sole  proprietorships  and   any   professional   services
organization  established  pursuant  to  article fifteen of the business
corporation law, article twelve of the limited liability company law and
section two and article eight-B of the partnership law.