Senate Bill S10291

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10291
 
                             I N  S E N A T E
 
                               May 11, 2026
                                ___________
 
 Introduced  by  Sen. ZELLNER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 AN  ACT  to  amend  the  not-for-profit  corporation law, in relation to
   authorizing university faculty practice corporations for the  practice
   of occupational therapy

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions (a), (c) and (e) of section 1412 of  the  not-
 for-profit  corporation  law,  as  amended by chapter 323 of the laws of
 2012, are amended to read as follows:
   (a) Organization. Notwithstanding any other provision of law,  one  or
 more  individuals  who  are  duly  authorized  by law to render the same
 professional service, which shall be the practice of medicine, the prac-
 tice of dentistry, the practice of chiropractics, the practice of  phys-
 ical  therapy,  THE PRACTICE OF OCCUPATIONAL THERAPY, or the practice of
 optometry, and who are members of the faculty  of  the  same  accredited
 medical  school, dental school, chiropractic college, college or univer-
 sity with an accredited doctor of physical therapy program,  COLLEGE  OR
 UNIVERSITY WITH AN ACCREDITED OCCUPATIONAL THERAPY PROGRAM, or optometry
 college,  as applicable, in the state of New York may organize, or cause
 to be organized, a university faculty practice  corporation  under  this
 article  (1)  for  the  purpose of supporting the educational mission of
 such  school  by  providing  clinical  instruction  and  supervision  of
 students  of  such  school, interns and residents and, incident thereto,
 rendering professional services and  (2)  which  shall  be  operated  in
 compliance  with  (A)  section  501(c)(3)  of the United States internal
 revenue code and (B) the faculty practice plan with which members of the
 faculty of such school are required to comply, as amended from  time  to
 time.
   (c)  Certificate of incorporation. The certificate of incorporation of
 a university faculty practice corporation shall meet the requirements of
 this chapter and shall have attached thereto a  certificate  or  certif-
 icates  issued  by  the  licensing authority certifying that each of the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14909-01-6
 S. 10291                            2
 
 proposed members, if any, directors and officers is authorized by law to
 practice the profession which the  corporation  is  being  organized  to
 practice.  The  certificate shall also state (1) the name of the medical
 school,  dental school, chiropractic college, college or university with
 an accredited doctor of physical therapy program, COLLEGE OR  UNIVERSITY
 WITH  AN  ACCREDITED OCCUPATIONAL THERAPY PROGRAM, or optometry college,
 as applicable, in the state of New York of which the  proposed  members,
 if any, directors and officers are faculty and (2) that such corporation
 shall  operate  in  compliance  with (A) section 501(c)(3) of the United
 States internal revenue code and (B)  the  faculty  practice  plan  with
 which  members  of the faculty of such school are required to comply, as
 amended from time to time.
   (e) Applicability of laws; members, directors and officers. This chap-
 ter shall be applicable to a  university  faculty  practice  corporation
 except  to  the  extent  that  the provisions thereof conflict with this
 section. A university faculty practice corporation  may  consolidate  or
 merge  only  with  another  university faculty practice corporation. The
 following provisions of article fifteen of the business corporation  law
 shall  be applicable to a university faculty practice corporation except
 that each reference in such  provisions  to  a  "shareholder"  shall  be
 deemed  to  be  a  reference  to  a  "member" and each reference in such
 provisions to "shareholders" shall be deemed a reference  to  "members":
 paragraphs  (a),  (b), (c) and (e) of section fifteen hundred one; para-
 graphs (b), (c) and (d) of section  fifteen  hundred  three;  paragraphs
 (a),  (c)  and  (g)  of  section  fifteen  hundred four; section fifteen
 hundred five; section fifteen hundred nine except  to  the  extent  such
 section  refers to section fifteen hundred ten; paragraph (a) of section
 fifteen hundred twelve; section fifteen hundred  fourteen;  and  section
 fifteen  hundred  fifteen.    No individual may be a member, director or
 officer of a university faculty practice corporation unless  such  indi-
 vidual  is  authorized  by  law to practice in this state the profession
 which such corporation is authorized to practice and is a member of  the
 faculty  of  the  medical  school,  dental school, chiropractic college,
 college or university with an  accredited  doctor  of  physical  therapy
 program,  COLLEGE  OR UNIVERSITY WITH AN ACCREDITED OCCUPATIONAL THERAPY
 PROGRAM, or optometry college which such  corporation  is  organized  to
 support.
   § 2. This act shall take effect immediately.