New York Laws
Sub Art. 1 - Introductory Summary.
6503-A - Waiver for Entities Providing Certain Professional Services.

(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.