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Application for Waiver of Corporate Practice Prohibitions

Due to prohibitions in New York State law against the "corporate practice" of the professions, certain not-for-profit, religious and education corporations that are providing professional services must apply for a waiver to continue providing those professional services. This packet contains the instructions and forms for those entities required to apply for a waiver.

Corporate practice restrictions affect agencies

Section 6503-a of the Education Law authorizes the New York State Education Department (Department) to issue waivers to allow qualified entities to provide certain professional services. The services are defined in Articles 153, 154, 163 and 167 of the Education Law and include psychotherapy. The Board of Regents approved regulations to implement these provisions, effective February 2, 2011.

Section 6503-a of the Education Law authorizes the Department to issue a waiver to certain not-for-profit, religious, or education corporations that were in existence on the effective date of the law, June 18, 2010. An entity must submit an Application for Waiver (Form CE) on or before February 1, 2012, and may continue to provide services until the application is approved or denied. If an application is denied by the Department, the entity must cease providing professional services in New York. An entity that applies for a waiver after February 1, 2012 must demonstrate to the Department the need for services. A template is provided with the application materials.

Applicability of the waiver

By law, the waiver is not intended to supplant the authority of other State agencies, such as the Department of Health or Office of Mental Health, that have oversight of health and mental health services. In reviewing applications for a waiver, the Department will collaborate with other State agencies to minimize the risk of an unqualified entity receiving a waiver to provide professional services. There are also provisions in the law defining eligible entities, professional services that may be offered by entities, oversight by the Board of Regents, and attestations by each officer and director of the entity that he or she is of good moral character. For more information, see Education Law section 6503-a.

Programs that do not require a waiver

The law identifies a number of entities that do not require a waiver from the corporate practice prohibitions. Those not requiring a waiver include:

  • any entity 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;
  • an institution of higher education that provides a program leading to licensure in medicine, nursing, psychology, social work, applied behavior analysis or the mental health professions to the extent the services being provided are within the scope of the registered program;
  • an institution of higher education that provides counseling to students, staff and family members of students and staff
  • a university faculty practice corporation; and
  • other entities identified by the Regents, provided that such entity is otherwise authorized by law to provide such services.

Additionally, programs and services operated, regulated, funded or approved by the department of mental hygiene, the office of children and family services, the department of corrections and community supervision, the office of temporary and disability assistance, the state office for the aging and the department of health or a local governmental unit as the term is defined in section 41.03 of the mental hygiene law or a social services district as defined in section 61 of the social services law are not required to receive a waiver to employ individuals licensed under articles 153, 154 or 163 of the education law. Please note that this provision applies only to such programs and services and does not extend to the entity. As such, if an entity also offers professional services or employs professional licensees in programs that are not directly operated, regulated, funded or approved by one of the above agencies, they are required to obtain a waiver for such programs and/or services.

Requirements for a waiver

Section 59.14 of the Commissioner's Regulations implements the provisions of the law by setting forth the requirements to be met by a qualified entity in order to receive a waiver. Although the granting of a waiver resolves the issue of the authority of the entity to provide professional services, only licensed or authorized persons may provide services, and the entity is responsible for verifying the licensure of providers and the appropriate supervision of interns or permit holders who are only authorized to practice under supervision.

Ensuring public protection

The addition of section 29.18 of the Rules of the Board of Regents implements the Board of Regents disciplinary authority over entities receiving waivers under Education Law section 6503-a. Section 29.18 clarifies that the entity is subject to the same professional misconduct provisions of the Regents Rules as a licensed professional or professional business entity. It also clarifies that the entity has the same due process rights as a licensed professional or professional business entity.

Processing of waiver applications

The Department will not review an application for a waiver from an entity unless it includes information specified in sections (c), (e) and (f) of section 59.14 of the Commissioner's Regulations. This includes a complete Application for Waiver (Form CE), signed by the individual authorized to act on behalf of the entity (e.g., Chief Executive Officer, President, or Chair of the Board); including a list of the professional services that will be provided by the entity; and a Moral Character Attestation of the Director, Trustee and Officer (Form CE-1) by each officer, trustee and director of the entity.

An application may be denied based on the entity's failure to provide the Department with information necessary to complete the application review. When, in the determination of the Department, an application is complete, it will be reviewed by the Department and a decision to approve or deny the waiver application shall be made within 90 days of such determination. If the Department requests additional or clarifying information, the entity applying for the waiver shall submit the requested information in a timely manner, as determined by the Department. An entity whose application is denied shall cease the provision of professional services as defined in the Education Law.

Authorization by government entity

The waiver is intended to allow a not-for-profit, religious or education corporation, that is not otherwise authorized, to employ licensed professionals and provide services that are restricted under Articles 153, 154, 163 and 167 of the Education Law. A corporation may be authorized under an operating certificate, license or contract with certain government entities and, in such case, would not need a waiver from the Department. However, an entity may need to apply for a waiver to provide services through a program that is not authorized under such operating certificate, license or contract.

Application forms for 6503-a certificate

Instructions for completing and submitting the forms required for the certificate appear below. You may also need to submit additional information (for example, "yes" response on moral character questions). Please refer to the certificate requirements link on the left for complete information regarding all requirements the entity must meet.

Note: All forms are in Adobe Portable Document Format (PDF). To view or print these documents, you will need to have the free Adobe Reader PDF installed on your computer. Download times and print quality will depend on your connection speed and printer.
Please type or print all information and sign all forms in black or blue ink. Original signatures are required on all forms.

Instructions for completing the Application for Certificate (Form CE)( PDF 17 KB)

Item 1. The application must include the name of the entity and the primary address for the entity.

Item 2. Provide the address for the entity, including phone, e-mail, and employer identification numbers.

Item 3. The applicant shall designate a contact person and provide a phone number and e-mail address so that the Department can follow-up with the entity.

Item 4. Please indicate if the entity has filed with the New York Department of State and, if yes, the name and registration number.

Item 5. Please provide the date the entity was formed under New York law. An entity that was formed after June 18, 2010 may not be eligible for a certificate. For more information, please see "demonstration of need" below.

Item 6. If the entity operates under an assumed name or trade name, this must be provided.

Item 7. You must indicate the type of entity and attach a copy of the certificate of incorporation, charter or other document that authorizes the entity to operate in New York.

Item 8. Please indicate any other state in which the entity provides services.

Item 9. Please indicate if the entity has ever been known by another name and, if yes, why the name was changed.

Item 10. Please indicate the professions in which the entity will provide services.

Item 11a. Has any contract, license or operating certificate issued by one or more of the identified agencies ever been revoked, suspended or annulled? Please attach an explanation.

Item 11b. Is any program or service operated by the entity currently under review, investigation or suspension by any of the identified agencies? Please attach an explanation.

Item 12. Please list each director, trustee, and officer (add additional sheets if needed) and provide the preferred contact information (home or business). Each director, trustee and officer must complete and submit the Moral Character Attestation of Director, Trustee or Officer (Form CE-1) as part of the application.

Attestation. An individual authorized to act on behalf of the agency and sign contracts or applications must complete the attestation. Generally, this will not be the contact person, identified in Item 3.

Demonstration of Need. The law states an entity that applies for a certificate after July 1, 2012 must demonstrate the need for the entity's services, acceptable to the Department. The form below provides a template for submitting information for review by the Department.

Demonstration of Need for Services form ( Word Document Icon 29.5 KB)

Instructions for completing the Moral Character Attestation of Directors, Trustees or Officers (Form CE-1)( PDF 12 KB)

Section 6503-a of the Education Law and paragraph (f) of section 59.14 of the Commissioner's Regulations require each officer, trustee and director of the entity to submit an attestation of his/her moral character as part of this application. The officer, trustee or director may use a home or business address, phone, or e-mail, so that we can follow up in case there are questions about the attestation. Please provide a list of each officer and director of the entity that will submit an attestation on Form CE-1.

Note: If there are any changes in the directors, trustees and officers of the entity, an updated listing must be provided to the Office of the Professions and the new director, trustee or officer shall complete and submit the required attestation on Form CE-1.

Instructions for completing the Request for Additional Setting (Form CE-2) ( PDF 13 KB)

The certificate authorizes the entity to provide professional services at the address named on the certificate application. If the entity provides services at another site(s) in New York State, you must file a Request for Additional Setting (Form CE-2) for each site.

Instructions for completing the Certificate Change of Information (Form COI) ( PDF 16 KB)

If the entity plans to relocate the main office at which services are provided, notification must be submitted to the oversight agency if applicable, for review and approval, as appropriate. You must notify the Office of the Professions by submitting the Change of Information (COI) Form within 60 days of any change in the name of the entity or a change in directors, trustees or officers, including Executive Director, Chief Executive Office, Chief Operating Officer, Chief Financial Officer or other person authorized to act on behalf of the entity. Each new officer, director or trustee must also submit a Moral Character Attestation of Director, Trustee or Officer (Form CE-1). You must notify the Office of the Professions using a Request for Additional Setting (Form CE-2) of any change in the name or address of an additional site at which professional services are provided, including the addition or closure of a program under the certificate. If there is a change in the professions in which services are provided, the entity should submit a revised certificate application (Form CE).

The certificate is valid for three years and must be renewed for the entity and any additional sites. The Department will send renewal notices.

You can access the Education Law, the Commissioner's Regulations and Regents Rules on this site.

For an e-mail response contact us, or you can mail us at 89 Washington Avenue, Albany, NY 12234.