What's happening
This bill allows university faculty practice corporations to include occupational therapy programs.
Why it matters
Expands opportunities for occupational therapy faculty and students. By allowing occupational therapy programs to form university faculty practice corporations, the bill enables faculty to provide clinical instruction and real-world training for students, which could improve the quality and availability of occupational therapy education across New York State.
Aligns occupational therapy with other health professions. The amendment puts occupational therapy on par with medicine, dentistry, physical therapy, and related fields in terms of faculty practice rights, representing a significant change in how universities can organize and support their clinical training missions.
Potential for increased access to occupational therapy services. By formalizing these faculty practice corporations, universities and their faculty may be able to offer more community-based occupational therapy services under a non-profit model, potentially benefiting patients as well as advancing research and practice standards in the field.
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Who cares
Occupational Therapists and Occupational Therapy Faculty
Faculty members who teach occupational therapy at accredited New York colleges and universities, as this bill allows them to form university faculty practice corporations similar to those available for other health professions.
Colleges and Universities with Occupational Therapy Programs
Institutions offering accredited occupational therapy programs, since this legislation enables them to expand clinical education and supervision opportunities for students and faculty.
Occupational Therapy Students
Students enrolled in these programs could benefit from increased access to clinical instruction, supervised practice settings, and real-world experience facilitated by these faculty practice corporations.
Patients Needing Occupational Therapy Services
Individuals in the community who may receive enhanced or expanded occupational therapy services through university-affiliated clinics staffed and supervised by faculty practitioners.
Headline styles
Allow Faculty OT Practices
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Allow University OT Practice Groups
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Karen McMahon
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10291
IN SENATE
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 Assembly, do enact as follows:
Section 1. Subdivisions (a), (c) and (e) of section 1412 of the notfor-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 practice of dentistry, the practice of chiropractics, the practice of physical 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 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 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 certificates 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
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 chapter 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; paragraphs (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 individual 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the not-for-profit corporation law, in relation to authorizing university faculty practice corporations for the practice of occupational therapy
Purpose or general idea of bill
This legislation amends § 1412 of the not-for-profit corporation law, in relation to university faculty practice corporations, adding occupa- tional therapy, to permit the faculty of an accredited occupational therapy program to organize practice corporations under the State's Not-for-Profit Corporation Law Section 1412.
Summary of provisions
Section 1 amends subdivisions (a), (c) and (e) of section 1412 of the not-for-profit corporation law. Section 2 sets the effective date.
Justification
University faculty practice corporations are developed by universities for the purpose of supporting the educational mission of the university. An accredited occupational therapy program can better achieve that mission when skilled and distinguished faculty are able to provide clin- ical instruction and supervision of their students in actual clinical environments that are closely coordinated with the classroom. University faculty practice corporations also allow the university and its faculty to offer access to professional services for needy communities under the supervision cf skilled faculty. Occupational therapy is a rehabilitation profession that enables people across the lifespan to perform daily activities needed for living, working, and functioning. It focuses on maximizing independence, improving quality of life, and promoting health for those with physical, cognitive, or mental disabilities.
Prior legislative history
New bill.
Fiscal implications for state and local governments
None to the state. EFFECTIVE DATE: This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.