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Legal Alert

April 28, 2011

New Law Permits New York Not-For-Profits to Offer Licensed Professional Services  

Until recently, most not-for-profit and education corporations in New York State were not permitted to provide social work, counseling, or certain other professional services.  However, a recent change to the Education Law has created a process through which the Department of Education may grant a waiver to authorize qualified not-for-profit or education corporations to provide these professional services, and employ those licensed or authorized to provide such services.  

 

The professional services for which a waiver may be granted are master and clinical social work, mental health counseling, marriage and family therapy, creative arts therapy, psychoanalysis, and psychology.  Waived entities are subject to oversight and discipline by the Board of Regents.  Organizations that are already authorized under an operating certificate, license, or contract with certain government entities to employ licensed professionals do not need to apply for a separate waiver.

 

In order to apply for a waiver,the organization must have been in existence on June 18, 2010 and the application for a waiver must be submitted by June 16, 2011.  The organization may continue to provide services until the application is either approved or denied. If it is denied, the organization must stop offering the services.  The waiver is valid for three years, and must be renewed by the organization.

 

Organizations that do not need to apply for a waiver include:

  • Organizations with an operating certificate issued under the Public Health Law, the Mental Hygiene Law, or in accordance with comparable procedures by a state, federal or local government agency;
  • Institutions of higher education that provide a program leading to licensure in medicine, nursing, psychology, social work or the mental health professions to the extent the services being provided are within the scope of the registered program;
  • Institutions of higher education that provide counseling to students, staff and family members of students and staff
  • University faculty practice corporations; and
  • Other entities identified by the Regents, provided that such entity is otherwise authorized by law to provide such services.

The waiver application is available at http://www.op.nysed.gov/swmhpcorpce.pdf.  FAQs and other information about the waivers can be found at http://www.op.nysed.gov/waiver-corporate-practice.htm#forms.  For more information, please contact Lisa Muņoz at the Pro Bono Partnership at (914) 328-0674.

 

 

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The Pro Bono Partnership provides business and transactional legal services to nonprofit organizations serving the disadvantaged and enhancing the quality of life in neighborhoods throughout New York, New Jersey and Connecticut.  Each year we mobilize and support hundreds of lawyers from leading corporations and law firms who volunteer their legal expertise to our clients, enabling them to more effectively feed the hungry, house the homeless, promote the arts, protect the environment and provide essential programs to children, the elderly, immigrants, the disabled and the unemployed.