Proposed new law could change design industry - part II

In Part I of this article I discussed a proposed new sill in the State of New York which would allow design firms to offer a limited ownership interest to employees who are not licensed design professionals, by creating a new type of entity to be known as a "Design Professional Service Corporation." In this article, I will discuss some of the specific provisions of the proposed bill. It would also apply to combinations of the other licensed professions ie. architecture, engineering, landscape architecture and land surveying. The Design Professional Service Corporation's Certificate of Incorporation must provide that more than 75 % of its outstanding shares must be owned by design professionals. In other words, the state still wants licensed design professionals to be in control of the company. The same percentage is required for the directors and officers. The president, chairperson of the board of directors, chief executive officers and the single largest shareholder must all be licensed design professionals. There is a requirement for a certified statement containing key information about each shareholder, officer and director. The State Education Department must give a certificate of authorization. These are some of the highlights of the proposed bill. It has been returned to the state senate for ratification, then possible signature by the governor. C. Jaye Berger, Esq, is an attorney and the principal of Law Offices C. Jaye Berger, New York, N.Y.