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Key: (1) language to be deleted (2) new language

                            CHAPTER 66-H.F.No. 1151 
                  An act relating to professions; modifying penalty 
                  provisions for psychologists; amending Minnesota 
                  Statutes 2000, section 148.941, subdivision 2, and by 
                  adding a subdivision. 
           Section 1.  Minnesota Statutes 2000, section 148.941, 
        subdivision 2, is amended to read: 
        DISCIPLINARY ACTION.] (a) The board may impose disciplinary 
        action as described in paragraph (b) against an applicant or 
        licensee whom the board, by a preponderance of the evidence, 
           (1) has violated a statute, rule, or order that the board 
        issued or is empowered to enforce; 
           (2) has engaged in fraudulent, deceptive, or dishonest 
        conduct, whether or not the conduct relates to the practice of 
        psychology, that adversely affects the person's ability or 
        fitness to practice psychology; 
           (3) has engaged in unprofessional conduct or any other 
        conduct which has the potential for causing harm to the public, 
        including any departure from or failure to conform to the 
        minimum standards of acceptable and prevailing practice without 
        actual injury having to be established; 
           (4) has been convicted of or has pled guilty or nolo 
        contendere to a felony or other crime, an element of which is 
        dishonesty or fraud, or has been shown to have engaged in acts 
        or practices tending to show that the applicant or licensee is 
        incompetent or has engaged in conduct reflecting adversely on 
        the applicant's or licensee's ability or fitness to engage in 
        the practice of psychology; 
           (5) has employed fraud or deception in obtaining or 
        renewing a license, in requesting approval of continuing 
        education activities, or in passing an examination; 
           (6) has had a license, certificate, charter, registration, 
        privilege to take an examination, or other similar authority 
        denied, revoked, suspended, canceled, limited, reprimanded, or 
        otherwise disciplined, or not renewed for cause in any 
        jurisdiction; or has surrendered or voluntarily terminated a 
        license or certificate during a board investigation of a 
        complaint, as part of a disciplinary order, or while under a 
        disciplinary order; 
           (7) has been subject to a corrective action or similar 
        action in another jurisdiction or by another regulatory 
           (8) has failed to meet any requirement for the issuance or 
        renewal of the person's license.  The burden of proof is on the 
        applicant or licensee to demonstrate the qualifications or 
        satisfy the requirements for a license under the Psychology 
        Practice Act; 
           (9) has failed to cooperate with an investigation of the 
        board as required under subdivision 4; 
           (10) has demonstrated an inability to practice psychology 
        with reasonable skill and safety to clients due to any mental or 
        physical illness or condition; or 
           (11) has engaged in fee splitting.  This clause does not 
        apply to the distribution of revenues from a partnership, group 
        practice, nonprofit corporation, or professional corporation to 
        its partners, shareholders, members, or employees if the 
        revenues consist only of fees for services performed by the 
        licensee or under a licensee's administrative authority.  This 
        clause also does not apply to the charging of a general 
        membership fee by a licensee or applicant to health care 
        providers, as defined in section 144.335, for participation in a 
        referral service, provided that the licensee or applicant 
        discloses in advance to each referred client the financial 
        nature of the referral arrangement.  Fee splitting includes, but 
        is not limited to: 
           (i) paying, offering to pay, receiving, or agreeing to 
        receive a commission, rebate, or remuneration, directly or 
        indirectly, primarily for the referral of clients; 
           (ii) dividing client fees with another individual or 
        entity, unless the division is in proportion to the services 
        provided and the responsibility assumed by each party; 
           (iii) referring an individual or entity to any health care 
        provider, as defined in section 144.335, or for other 
        professional or technical services in which the referring 
        licensee or applicant has a significant financial interest 
        unless the licensee has disclosed the financial interest in 
        advance to the client; and 
           (iv) dispensing for profit or recommending any instrument, 
        test, procedure, or device that for commercial purposes the 
        licensee or applicant has developed or distributed, unless the 
        licensee or applicant has disclosed any profit interest in 
        advance to the client.  
           (b) If grounds for disciplinary action exist under 
        paragraph (a), the board may take one or more of the following 
           (1) refuse to grant or renew a license; 
           (2) revoke a license; 
           (3) suspend a license; 
           (4) impose limitations or conditions on a licensee's 
        practice of psychology, including, but not limited to, limiting 
        the scope of practice to designated competencies, imposing 
        retraining or rehabilitation requirements, requiring the 
        licensee to practice under supervision, or conditioning 
        continued practice on the demonstration of knowledge or skill by 
        appropriate examination or other review of skill and competence; 
           (5) censure or reprimand the licensee; 
           (6) refuse to permit an applicant to take the licensure 
        examination or refuse to release an applicant's examination 
        grade if the board finds that it is in the public interest; or 
           (7) impose a civil penalty not exceeding $5,000 $7,500 for 
        each separate violation.  The amount of the penalty shall be 
        fixed so as to deprive the applicant or licensee of any economic 
        advantage gained by reason of the violation charged, or to 
        discourage repeated violations, or to recover the board's costs 
        that occur in bringing about a disciplinary order.  For purposes 
        of this clause, costs are limited to legal, paralegal, and 
        investigative charges billed to the board by the attorney 
        general's office, witness costs, consultant and expert witness 
        fees, and charges attendant to the use of an administrative law 
           (c) In lieu of or in addition to paragraph (b), the board 
        may require, as a condition of continued licensure, termination 
        of suspension, reinstatement of license, examination, or release 
        of examination grades, that the applicant or licensee: 
           (1) submit to a quality review, as specified by the board, 
        of the applicant's or licensee's ability, skills, or quality of 
        work; and 
           (2) complete to the satisfaction of the board educational 
        courses specified by the board.; and 
           (3) reimburse to the board all costs incurred by the board 
        that are the result of provider failing, neglecting, or refusing 
        to fully comply, or not complying in a timely manner, with any 
        part of the remedy section of a stipulation and consent order or 
        the corrective action section of an agreement for corrective 
        action.  For purposes of this clause, costs are limited to 
        legal, paralegal, and investigative charges billed to the board 
        by the attorney general's office, witness costs, consultant and 
        expert witness fees, and charges attendant to the use of an 
        administrative law judge. 
           (d) Service of the order is effective if the order is 
        served on the applicant, licensee, or counsel of record 
        personally or by mail to the most recent address provided to the 
        board for the licensee, applicant, or counsel of record.  The 
        order shall state the reasons for the entry of the order. 
           Sec. 2.  Minnesota Statutes 2000, section 148.941, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [LIMITATION PERIOD.] (a) For complaints against 
        providers received by the board after July 31, 2001, a board 
        proceeding against a provider must not be instituted unless it 
        is begun within seven years from the date of some portion of the 
        alleged misconduct that is complained of. 
           (b) The following are exceptions to the limitation period 
        in paragraph (a): 
           (1) complaints alleging a violation of subdivision 2, 
        paragraph (a), clauses (2), (4), (5), and (6); 
           (2) complaints alleging sexual intercourse or other 
        physical intimacies with a client, or any verbal or physical 
        behavior that is sexually seductive or sexually demeaning to the 
        client; or complaints alleging sexual intercourse or other 
        physical intimacies with a former client, or any verbal or 
        physical behavior that is sexually demeaning to the former 
        client, for a period of two years following the date of the last 
        professional contact with the former client, whether or not the 
        provider has formally terminated the professional relationship.  
        Physical intimacies include handling of the breasts, genital 
        areas, buttocks, or thighs of either sex by either the provider 
        or the client.  
           (c) If a complaint is received by the board less than 12 
        months from the expiration of the limitation period in paragraph 
        (a), the limitation period is extended for a period of 12 months 
        from the date the complaint is received by the board. 
           (d) If alleged misconduct is complained of that involves a 
        client who is a minor, the limitation period in paragraph (a) 
        does not begin until the minor reaches the age of 18.  
           (e) For purposes of this subdivision only, "proceeding" 
        means the service of a notice of conference, or in cases in 
        which a notice of conference was not served, a notice of hearing.
           Presented to the governor April 30, 2001 
           Signed by the governor May 2, 2001, 2:54 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes