1.1 	A bill for an act
1.2 	relating to health occupations; modifying the
1.3 	Psychology Practice Act; phasing out licensure as a
1.4 	licensed psychological practitioner; amending
1.5 	Minnesota Statutes 2004, sections 148.89, subdivision
1.6 	5; 148.90, subdivision 1; 148.907, by adding a
1.7 	subdivision; 148.908, subdivision 2, by adding a
1.8 	subdivision; 148.909; 148.916, subdivision 2; 148.925,
1.9 	subdivision 6; 148.941, subdivision 2; 148.96,
1.10 	subdivision 3.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2004, section 148.89,
1.13 	subdivision 5, is amended to read:
1.14 		Subd. 5.Practice of psychology.  "Practice of
1.15 	psychology" means the observation, description, evaluation,
1.16 	interpretation, or modification of human behavior by the
1.17 	application of psychological principles, methods, or
1.18 	procedures for any reason, including to prevent, eliminate, or
1.19 	manage symptomatic, maladaptive, or undesired behavior and to
1.20 	enhance interpersonal relationships, work, life and
1.21 	developmental adjustment, personal and organizational
1.22 	effectiveness, behavioral health, and mental health.  The
1.23 	practice of psychology includes, but is not limited to, the
1.24 	following services, regardless of whether the provider receives
1.25 	payment for the services:
1.26 	(1) psychological research and teaching of psychology;
1.27 	(2) assessment, including psychological testing and other
1.28 	means of evaluating personal characteristics such as
2.1 	intelligence, personality, abilities, interests, aptitudes, and
2.2 	neuropsychological functioning;
2.3 	(3) a psychological report, whether written or oral,
2.4 	including testimony of a provider as an expert witness,
2.5 	concerning the characteristics of an individual or entity;
2.6 	(4) psychotherapy, including but not limited to, categories
2.7 	such as behavioral, cognitive, emotive, systems,
2.8 	psychophysiological, or insight-oriented therapies; counseling;
2.9 	hypnosis; and diagnosis and treatment of:
2.10 	(i) mental and emotional disorder or disability;
2.11 	(ii) alcohol and substance dependence or abuse;
2.12 	(iii) disorders of habit or conduct;
2.13 	(iv) the psychological aspects of physical illness or
2.14 	condition, accident, injury, or disability;
2.15 	(v) life adjustment issues, including work-related and
2.16 	bereavement issues; and
2.17 	(vi) child, family, or relationship issues;
2.18 	(5) psychoeducational services and treatment; and
2.19 	(6) consultation and supervision.

2.20 	Sec. 2. Minnesota Statutes 2004, section 148.90,
2.21 	subdivision 1, is amended to read:
2.22 		Subdivision 1.Board of psychology.  (a) The Board of
2.23 	Psychology is created with the powers and duties described in
2.24 	this section.  The board has 11 members who consist of:
2.25 	(1) three ~~persons~~ individuals licensed as licensed
2.26 	psychologists who have ~~a~~ doctoral ~~degree~~ degrees in psychology;
2.27 	(2) two ~~persons~~ individuals licensed as licensed
2.28 	psychologists who have ~~a~~ master's ~~degree~~ degrees in psychology;
2.29 	(3) two psychologists, not necessarily licensed, one with a
2.30 	doctoral degree in psychology who represents a doctoral training
2.31 	program in psychology, and one who represents a master's degree
2.32 	training program in psychology;
2.33 	(4) one ~~person~~ individual licensed or qualified to be
2.34 	licensed as:  (i) through December 31, 2010,a licensed 
2.35 	psychological practitioner; and (ii) after December 31, 2010, a
2.36 	licensed psychologist; and
3.1 	(5) three public members.
3.2 	(b) After the date on which fewer than 30 percent of the
3.3 	~~persons~~ individuals licensed by the board as licensed
3.4 	psychologists qualify for licensure under section 148.907,
3.5 	subdivision 3, paragraph (b), ~~the first vacancy~~ vacancies filled
3.6 	under paragraph (a), clause (2), shall be filled by ~~a person~~ an
3.7 	individual with either a master's or doctoral degree in
3.8 	psychology licensed or qualified to be licensed as a
3.9 	licensed ~~psychological practitioner.  From this date on, this~~
3.10 	~~position when vacant shall be filled by a person licensed or~~
3.11 	~~qualified to be licensed as a licensed psychological~~
3.12 	~~practitioner~~ psychologist.
3.13 	(c) After the date on which fewer than 15 percent of the
3.14 	~~persons~~ individuals licensed by the board as licensed
3.15 	psychologists qualify for licensure under section 148.907,
3.16 	subdivision 3, paragraph (b), ~~the first vacancy~~ vacancies under
3.17 	paragraph (a), clause (2), ~~for a licensed psychologist~~ shall be
3.18 	filled by an individual with either a master's or doctoral 
3.19 	degree in psychology ~~shall be filled by a~~ licensed or qualified
3.20 	to be licensed as a licensed psychologist. ~~From this date on,~~
3.21 	~~this position when vacant shall be filled by a person licensed~~
3.22 	~~as a licensed psychologist.~~

3.23 	Sec. 3. Minnesota Statutes 2004, section 148.907, is
3.24 	amended by adding a subdivision to read:
3.25 		Subd. 5.Converting from a licensed psychological
3.26 	practitioner to a licensed psychologist. Notwithstanding
3.27 	subdivision 3, to convert from licensure as a licensed
3.28 	psychological practitioner to licensure as a licensed
3.29 	psychologist, a licensed psychological practitioner shall have:
3.30 	(1) completed an application provided by the board for
3.31 	conversion from licensure as a licensed psychological
3.32 	practitioner to licensure as a licensed psychologist;
3.33 	(2) paid a nonrefundable fee of $500;
3.34 	(3) documented successful completion of two full years, or
3.35 	the equivalent, of supervised postlicensure employment meeting
3.36 	the requirements of section 148.925, subdivision 5, as it
4.1 	relates to preparation for licensure as a licensed psychologist
4.2 	as follows:
4.3 	(i) for individuals licensed as licensed psychological
4.4 	practitioners on or before December 31, 2006, the supervised
4.5 	practice must be completed by December 31, 2010; and 
4.6 	(ii) for individuals licensed as licensed psychological
4.7 	practitioners after December 31, 2006, the supervised practice
4.8 	must be completed within four years from the date of licensure;
4.9 	and 
4.10 	(4) no unresolved disciplinary action or complaints
4.11 	pending, or incomplete disciplinary orders or corrective action
4.12 	agreements in Minnesota or any other jurisdiction.

4.13 	Sec. 4. Minnesota Statutes 2004, section 148.908,
4.14 	subdivision 2, is amended to read:
4.15 		Subd. 2.Requirements for licensure as a licensed
4.16 	psychological practitioner.  To become licensed by the board as
4.17 	a licensed psychological practitioner, an applicant shall comply
4.18 	with the following requirements:
4.19 	(1) ~~pass an examination in psychology;~~
4.20 	~~(2) pass a professional responsibility examination on the~~
4.21 	~~practice of psychology;~~
4.22 	~~(3) pass any other examinations as required by board rules;~~
4.23 	~~(4) pay nonrefundable fees to the board for applications,~~
4.24 	~~processing, testing, renewals, and materials;~~
4.25 	~~(5) have attained the age of majority, be of good moral~~
4.26 	~~character, and have no unresolved disciplinary action or~~
4.27 	~~complaints pending in the state of Minnesota or any other~~
4.28 	~~jurisdiction; and~~ 
4.29 	~~(6)~~ have earned a doctoral or master's degree or the
4.30 	equivalent of a master's degree in a doctoral program with a
4.31 	major in psychology from a regionally accredited educational
4.32 	institution meeting the standards the board has established by
4.33 	rule. The degree requirements must be completed by December 31,
4.34 	2005;
4.35 	(2) complete an application for admission to the
4.36 	examination for professional practice in psychology and pay the
5.1 	nonrefundable application fee by December 31, 2005;
5.2 	(3) complete an application for admission to the
5.3 	professional responsibility examination and pay the
5.4 	nonrefundable application fee by December 31, 2005;
5.5 	(4) pass the examination for professional practice in
5.6 	psychology by December 31, 2005;
5.7 	(5) pass the professional responsibility examination by
5.8 	December 31, 2006;
5.9 	(6) complete an application for licensure as a licensed
5.10 	psychological practitioner and pay the nonrefundable application
5.11 	fee by March 1, 2007; and 
5.12 	(7) have attained the age of majority, be of good moral
5.13 	character, and have no unresolved disciplinary action or
5.14 	complaints pending in the state of Minnesota or any other
5.15 	jurisdiction.

5.16 	Sec. 5. Minnesota Statutes 2004, section 148.908, is
5.17 	amended by adding a subdivision to read:
5.18 		Subd. 3.Termination of licensure. Effective December
5.19 	31, 2011, the licensure of all licensed psychological
5.20 	practitioners shall be terminated without further notice and
5.21 	licensure as a licensed psychological practitioner in Minnesota
5.22 	shall be eliminated.

5.23 	Sec. 6. Minnesota Statutes 2004, section 148.909, is
5.24 	amended to read:
5.25 	148.909 LICENSURE FOR VOLUNTEER PRACTICE.
5.26 	The board, at its discretion, may grant licensure for
5.27 	volunteer practice to an applicant who:
5.28 	(1) ~~is a former licensee who~~ is completely retired from the
5.29 	practice of psychology;
5.30 	(2) has no unresolved disciplinary action or complaints
5.31 	pending in the state of Minnesota or any other jurisdiction; and
5.32 	(3) has held a license, certificate, or registration to
5.33 	practice psychology in any jurisdiction ~~for at least 15 years~~.

5.34 	Sec. 7. Minnesota Statutes 2004, section 148.916,
5.35 	subdivision 2, is amended to read:
5.36 		Subd. 2.Psychological consultations.  Notwithstanding
6.1 	subdivision 1, a nonresident of the state of Minnesota, who is
6.2 	not seeking licensure in this state, may serve as an expert
6.3 	witness, organizational consultant,presenter, or educator
6.4 	without obtaining guest licensure, provided the person is
6.5 	appropriately trained, educated, or has been issued a license,
6.6 	certificate, or registration by another jurisdiction.

6.7 	Sec. 8. Minnesota Statutes 2004, section 148.925,
6.8 	subdivision 6, is amended to read:
6.9 		Subd. 6.Supervisee duties.  Individuals preparing for
6.10 	licensure as a licensed psychologist during their postdegree
6.11 	supervised employment may perform as part of their training any
6.12 	functions specified in section 148.89, subdivision 5,but only
6.13 	under qualified supervision.

6.14 	Sec. 9. Minnesota Statutes 2004, section 148.941,
6.15 	subdivision 2, is amended to read:
6.16 		Subd. 2.Grounds for disciplinary action; forms of
6.17 	disciplinary action.  (a) The board may impose disciplinary
6.18 	action as described in paragraph (b) against an applicant or
6.19 	licensee whom the board, by a preponderance of the evidence,
6.20 	determines:
6.21 	(1) has violated a statute, rule, or order that the board
6.22 	issued or is empowered to enforce;
6.23 	(2) has engaged in fraudulent, deceptive, or dishonest
6.24 	conduct, whether or not the conduct relates to the practice of
6.25 	psychology, that adversely affects the person's ability or
6.26 	fitness to practice psychology;
6.27 	(3) has engaged in unprofessional conduct or any other
6.28 	conduct which has the potential for causing harm to the public,
6.29 	including any departure from or failure to conform to the
6.30 	minimum standards of acceptable and prevailing practice without
6.31 	actual injury having to be established;
6.32 	(4) has been convicted of or has pled guilty or nolo
6.33 	contendere to a felony or other crime, an element of which is
6.34 	dishonesty or fraud, or has been shown to have engaged in acts
6.35 	or practices tending to show that the applicant or licensee is
6.36 	incompetent or has engaged in conduct reflecting adversely on
7.1 	the applicant's or licensee's ability or fitness to engage in
7.2 	the practice of psychology;
7.3 	(5) has employed fraud or deception in obtaining or
7.4 	renewing a license, in requesting approval of continuing
7.5 	education activities, or in passing an examination;
7.6 	(6) has had a license, certificate, charter, registration,
7.7 	privilege to take an examination, or other similar authority
7.8 	denied, revoked, suspended, canceled, limited, reprimanded, or
7.9 	otherwise disciplined, or not renewed for cause in any
7.10 	jurisdiction; or has surrendered or voluntarily terminated a
7.11 	license or certificate during a board investigation of a
7.12 	complaint, as part of a disciplinary order, or while under a
7.13 	disciplinary order;
7.14 	(7) has been subject to a corrective action or similar
7.15 	action in another jurisdiction or by another regulatory
7.16 	authority;
7.17 	(8) has failed to meet any requirement for the issuance or
7.18 	renewal of the person's license.  The burden of proof is on the
7.19 	applicant or licensee to demonstrate the qualifications or
7.20 	satisfy the requirements for a license under the Psychology
7.21 	Practice Act;
7.22 	(9) has failed to cooperate with an investigation of the
7.23 	board as required under subdivision 4;
7.24 	(10) has demonstrated an inability to practice psychology
7.25 	with reasonable skill and safety to clients due to any mental or
7.26 	physical illness or condition; or
7.27 	(11) has engaged in fee splitting.  This clause does not
7.28 	apply to the distribution of revenues from a partnership, group
7.29 	practice, nonprofit corporation, or professional corporation to
7.30 	its partners, shareholders, members, or employees if the
7.31 	revenues consist only of fees for services performed by the
7.32 	licensee or under a licensee's administrative authority.  This
7.33 	clause also does not apply to the charging of a general
7.34 	membership fee by a licensee or applicant to health care
7.35 	providers, as defined in section 144.335, for participation in a
7.36 	referral service, provided that the licensee or applicant
8.1 	discloses in advance to each referred client the financial
8.2 	nature of the referral arrangement.  Fee splitting includes, but
8.3 	is not limited to:
8.4 	(i) paying, offering to pay, receiving, or agreeing to
8.5 	receive a commission, rebate, or remuneration, directly or
8.6 	indirectly, primarily for the referral of clients;
8.7 	(ii) dividing client fees with another individual or
8.8 	entity, unless the division is in proportion to the services
8.9 	provided and the responsibility assumed by each party;
8.10 	(iii) referring an individual or entity to any health care
8.11 	provider, as defined in section 144.335, or for other
8.12 	professional or technical services in which the referring
8.13 	licensee or applicant has a significant financial interest
8.14 	unless the licensee has disclosed the financial interest in
8.15 	advance to the client; and
8.16 	(iv) dispensing for profit or recommending any instrument,
8.17 	test, procedure, or device that for commercial purposes the
8.18 	licensee or applicant has developed or distributed, unless the
8.19 	licensee or applicant has disclosed any profit interest in
8.20 	advance to the client.
8.21 	(b) If grounds for disciplinary action exist under
8.22 	paragraph (a), the board may take one or more of the following
8.23 	actions:
8.24 	(1) refuse to grant or renew a license;
8.25 	(2) revoke a license;
8.26 	(3) suspend a license;
8.27 	(4) impose limitations or conditions on a licensee's
8.28 	practice of psychology, including, but not limited to, limiting
8.29 	the scope of practice to designated competencies, imposing
8.30 	retraining or rehabilitation requirements, requiring the
8.31 	licensee to practice under supervision, or conditioning
8.32 	continued practice on the demonstration of knowledge or skill by
8.33 	appropriate examination or other review of skill and competence;
8.34 	(5) censure or reprimand the licensee;
8.35 	(6) refuse to permit an applicant to take the licensure
8.36 	examination or refuse to release an applicant's examination
9.1 	grade if the board finds that it is in the public interest; or
9.2 	(7) impose a civil penalty not exceeding $7,500 for each
9.3 	separate violation.  The amount of the penalty shall be fixed so
9.4 	as to deprive the applicant or licensee of any economic
9.5 	advantage gained by reason of the violation charged, to
9.6 	discourage repeated violations, or to recover the board's costs
9.7 	that occur in bringing about a disciplinary order.  For purposes
9.8 	of this clause, costs are limited to legal, paralegal, and
9.9 	investigative charges billed to the board by the Attorney
9.10 	General's Office, witness costs, consultant and expert witness
9.11 	fees, and charges attendant to the use of an administrative law
9.12 	judge.
9.13 	(c) In lieu of or in addition to paragraph (b), the board
9.14 	may require, as a condition of ~~continued~~ licensure, termination
9.15 	of suspension, reinstatement of license, examination, or release
9.16 	of examination grades, that the applicant or licensee:
9.17 	(1) submit to a quality review, as specified by the board,
9.18 	of the applicant's or licensee's ability, skills, or quality of
9.19 	work;
9.20 	(2) complete to the satisfaction of the board educational
9.21 	courses specified by the board; and
9.22 	(3) reimburse to the board all costs incurred by the board
9.23 	that are the result of a provider failing, neglecting, or
9.24 	refusing to fully comply, or not complying in a timely manner,
9.25 	with any part of the remedy section of a stipulation and consent
9.26 	order or the corrective action section of an agreement for
9.27 	corrective action.  For purposes of this clause, costs are
9.28 	limited to legal, paralegal, and investigative charges billed to
9.29 	the board by the Attorney General's Office, witness costs,
9.30 	consultant and expert witness fees, and charges attendant to the
9.31 	use of an administrative law judge.
9.32 	(d) Service of the order is effective if the order is
9.33 	served on the applicant, licensee, or counsel of record
9.34 	personally or by mail to the most recent address provided to the
9.35 	board for the licensee, applicant, or counsel of record.  The
9.36 	order shall state the reasons for the entry of the order.

10.1 	Sec. 10. Minnesota Statutes 2004, section 148.96,
10.2 	subdivision 3, is amended to read:
10.3 		Subd. 3.Requirements for representations to public.  (a)
10.4 	Unless licensed under sections 148.88 to 148.98, except as
10.5 	provided in paragraphs (b) through (e), persons shall not
10.6 	represent themselves or permit themselves to be represented to
10.7 	the public by:
10.8 	(1) using any title or description of services
10.9 	incorporating the words "psychology," "psychological,"
10.10 	"psychological practitioner," or "psychologist"; or
10.11 	(2) representing that the person has expert qualifications
10.12 	in an area of psychology.
10.13 	(b) Psychologically trained individuals who are employed by
10.14 	an educational institution recognized by a regional accrediting
10.15 	organization, by a federal, state, county, or local government
10.16 	institution, ~~by agencies~~ agency, or ~~by~~ research
10.17 	~~facilities~~ facility, may represent themselves by the title
10.18 	designated by that organization provided that the title does not
10.19 	indicate that the individual is credentialed by the board.
10.20 	(c) A psychologically trained individual from an
10.21 	institution described in paragraph (b) may offer lecture
10.22 	services and is exempt from the provisions of this section.
10.23 	(d) A person who is preparing for the practice of
10.24 	psychology under supervision in accordance with board statutes
10.25 	and rules may be designated as a "psychological intern,"
10.26 	"psychological trainee," or by other terms clearly describing
10.27 	the person's training status.
10.28 	(e) Former licensees who are completely retired from the
10.29 	practice of psychology may represent themselves using the
10.30 	descriptions in paragraph (a), clauses (1) and (2), but shall
10.31 	not represent themselves or allow themselves to be represented
10.32 	as current licensees of the board.
10.33 	(f) Nothing in this section shall be construed to prohibit
10.34 	the practice of school psychology by a person licensed in
10.35 	accordance with chapters 122A and 129.