GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 669

Short Title:  Bd. of Alternative Medicine.	(Public)
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Sponsors: Representative Gamble.
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Referred to:  Judiciary I.
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March 29, 1993

A BILL TO BE ENTITLED
AN ACT TO REGULATE THE PRACTICE OF ALTERNATIVE MEDICINE.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 90 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 29.
"Board of Alternative Medicine.
"§ 90-430.  Short title.
This Article shall be known as the North Carolina Alternative Medical Practices Act.
"§ 90-431.  Definitions.
(1)	'Alternative medical practice' means one or more of the following practices: card reading, channeling, eclectic medicine, herbalism, holistic medicine, hypnosis, iridology, mystic healing, Native American medicine, palm reading, phrenology, psychic, and voodoo.
(2)	'Alternative medical practitioner' means a person licensed pursuant to this Article to engage in an alternative medical practice.
(3)	'Board' means the Board of Alternative Medicine.
(4)	'Card reading' means a diagnostic system using a set of cards to determine the proper diagnosis and treatment of a patient's illness.
(5)	'Channeling' means a system of practice utilizing communication with invisible beings, spirits, or psychic forces for the purpose of determining the cause of and cure for a patient's illness.
(6)	'Eclectic medicine' means a system of medicine that uses whatever seems best from various sources or schools of thought with particular emphasis on the use of botanical remedies in the treatment of disease.
(7)	'Herbalism' means the practice of gathering and using medicinal herbs for the treatment of disease.
(8)	'Holistic medicine' means a system of practice that emphasizes treatment of the patient's whole system of existence, including environmental and other influences, rather than the treatment of individual illnesses or disease processes.
(9)	'Hypnosis' means a system that promotes the technique of mind over matter in the treatment of medical problems.
(10)	'Iridology' means a system of practice utilizing an examination of the iris of the eye to make a medical diagnosis.
(11)	'Mystic healing' means a system of healing predicated on an understanding of metaphysical entities that cause illness.
(12)	'Native American medicine' means a system of medicine based on a collection of herbal, mystic, natural, or spiritual remedies used by native peoples of North and South America.
(13)	'Palm reading' means a diagnostic system based on analysis of the contours in the palm of a patient's hand.
(14)	'Phrenology' means a system of practice by which an analysis of the development of the faculties can be made by studying the shape and protuberances of the skull.
(15)	'Psychic' means a method of diagnosis and treatment through the study of forces external to the body.
(16)	'Voodoo' means a system of practice designed to affect another through the use of conjuration and the supernatural.
"§ 90-431.1.  Practice of alternative medicine; prohibition; exemptions.
(a)	It is unlawful for any person not licensed pursuant to the provisions of this Chapter to engage in the practice of alternative medicine or to hold himself or herself out or advertise as engaging in the practice of alternative medicine.
(b)	This Article shall not apply to the practice of alternative medicine by a health care professional licensed, certified, or registered under this Chapter or Chapter 90C of the General Statutes, provided that the practice thereof is within the authorized scope of practice of the professional.
"§ 90-432.  Board of Alternative Medicine.
(a)	There is established a Board of Alternative Medicine which shall consist of five members.  Four of the members shall be alternative medical practitioners appointed by the General Assembly, two upon the recommendation of the President Pro Tempore of the Senate and two upon the recommendation of the Speaker of the House of Representatives.  The other member shall be a public member appointed by the Governor.  Except as provided for initial appointments in subsection (b) of this section, the term of office of each board member is three years, ending on June 30.
(b)	Of the initial appointments made by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, one member shall serve a term expiring June 30, 1995, and the other shall serve a term expiring June 30, 1996.  Of the initial appointments made by the General Assembly upon the recommendation of the Speaker of the House of Representatives, one member shall serve a term expiring June 30, 1995, and the other shall serve a term expiring June 30, 1996.  The Governor's initial appointee shall serve a term expiring June 30, 1994.  The initial appointees shall have experience in one of the alternative therapies or treatments regulated under this Article.
(c)	Board members may be removed by the Governor for neglect of duty, malfeasance, or misfeasance.  The Governor may fill vacancies in the public member's office.  Vacancies in positions appointed by the General Assembly shall be filled in accordance with G.S. 120-122.
"§ 90-433.  Meetings; organization; compensation.
(a)	The Board shall meet annually and may meet at other times upon the call of a majority of the Board members.
(b)	The Board shall annually elect a president and vice-president who shall serve until their successors are chosen.
(c)	Each Board member is eligible to receive compensation pursuant to G.S. 93B-5 for each day actually engaged in carrying out duties as an officer or member of the Board.  Compensation and expenses shall be paid from the Board's funds.
"§ 90-434.  Powers and duties.
(a)	The Board is authorized to:
(1)	Examine applicants for a license under this Article, issue licenses, conduct hearings, and discipline alternative medical practitioners.
(2)	Collect and account for all fees under this Article and deposit same in a fund maintained by the Board; funds may be expended from revenues generated by fees and interest thereon for the administration of this Article.
(3)	Maintain a record of its acts and proceedings, including, but not limited to, the issuance, refusal to issue, renewal, suspension, or revocation of licenses to practice according to this Article.
(4)	Make and adopt rules and regulations necessary for the administration of this Article.
(5)	Accredit educational institutions in this State which grant degrees toward licensing therapies which are regulated under this Article.
(6)	Hire permanent or temporary personnel to carry out the purposes of this Article.
(7)	Purchase, rent, lease, sell, or otherwise transfer office space, equipment, supplies, or other real or personal property for the administration of this Article.
"§ 90-435.  Exemptions.
This Article shall not apply to other health care practitioners licensed under this Chapter to the extent their use of alternative medical treatments and therapies is within their recognized scope of practice.
"§ 90-436.  Qualifications of applicant; application; fees.
To qualify for licensure as an alternative medical practitioner, the applicant shall:
(1)	Be of good moral character;
(2)	Successfully complete the Board-approved training for the particular alternative medical practice;
(3)	Successfully complete an examination administered by or on behalf of the Board;
(4)	Submit an application and examination fee to the Board, not to exceed twenty-five dollars ($25.00).
Upon qualifying for a license, the applicant shall pay an additional seventy-five dollar ($75.00) license fee.
"§ 90-437.  Examination; reexamination.
(a)	Examination for a license to practice under this Article shall include all subjects which are generally accepted as necessary for a thorough knowledge of the practice of the selected areas of alternative medicine.  The Board shall prescribe rules and regulations for conducting the examinations and set the passing grade.
(b)	Examinations shall be conducted at least twice annually at times and places to be designated by the Board.  Written notice of the date and place of examination shall be mailed to all applicants at least 30 days prior to the date of the examination.  A person failing to pass an examination may be reexamined within one year without payment of an additional fee.
"§ 90-438.  Renewal of license; failure to renew; reinstatement.
(a)	Each alternative medical practitioner holding a license under this Article shall renew it and pay a renewal fee not to exceed one hundred dollars ($100.00) prior to January 1 each year.  Failure to renew an active license as required by this section on or before February 1 requires an additional late payment fee of fifty dollars ($50.00).  Failure to renew an active license on or before April 1 shall result in the expiration of the active license.
(b)	A person whose license has expired may reapply for a license to practice alternative medicine as provided in this Article.
"§ 90-439.  Suspension or revocation of license; unprofessional conduct hearing; decision of Board.
(a)	The Board may investigate any information which appears to show that an alternative medical practitioner is or may be guilty of unprofessional conduct or is or may be mentally or physically unable to engage safely in the practice of medicine.  Any person who reports or provides information to the Board in good faith is not subject to an action for civil damages as a result thereof, and such person's name shall not be disclosed unless such person's testimony is essential to the disciplinary proceedings conducted pursuant to the section.  It is an act of unprofessional conduct for any alternative medical practitioner to fail to report a known violation of this Article.
(b)	If the Board has good reason to believe after its investigation that the alternative medical practitioner has violated the provisions of this Article, it may request an informal interview with the alternative medical practitioner.  If the alternative medical practitioner refuses the invitation or if he accepts the invitation and if the results of the interview indicate suspension or revocation of his license might be in order, a formal complaint shall be issued and a formal hearing shall be conducted in accordance with the provisions of Chapter 150B of the General Statutes.
(c)	'Unprofessional conduct' includes the following acts, whether occurring in the State or elsewhere:
(1)	Immoral or dishonorable conduct;
(2)	Producing or attempting to produce an abortion contrary to law;
(3)	Making false statements or representations to the Board, or willfully concealing from the Board material information in connection with his application for a license;
(4)	Being unable to practice medicine with reasonable skill and safety to patients by reason of illness, drunkenness, excessive use of alcohol, drugs, chemicals, or any other type of material or by reason of any physical or mental abnormality.  The Board is empowered and authorized to require a physician licensed by it to submit to a mental or physical examination by physicians designated by the Board before or after charges may be presented against him, and the results of examination shall be admissible in evidence in a hearing before the Board;
(5)	Unprofessional conduct including, but not limited to, the committing of any act contrary to honesty, justice, or good morals, whether the same is committed in the course of his practice or otherwise, and whether committed within or without North Carolina;
(6)	Conviction in any court of a crime involving moral turpitude, or the violation of a law involving the practice of medicine, or a conviction of a felony;
(7)	By false representations obtaining or attempting to obtain practice, money, or anything of value;
(8)	Advertising or publicly professing to treat human ailments under a system or school of treatment or practice other than that for which he has been educated;
(9)	Adjudication of mental incompetency, which shall automatically suspend a license unless the Board orders otherwise;
(10)	Lack of professional competence to practice medicine with a reasonable degree of skill and safety for patients.  In this connection the Board may consider repeated acts of a physician indicating his failure to properly treat a patient and may require such physician to submit to inquiries or examinations, written or oral, by members of the Board or by other physicians licensed to practice medicine in this State, as the Board deems necessary to determine the professional qualifications of such licensee;
(11)	Promotion of the sale of drugs, devices, appliances, or goods for a patient, or providing services to a patient, in such a manner as to exploit the patient for financial gain of the physician; and upon a finding of the exploitation for financial gain, the Board may order restitution be made to the payer of the bill, whether the patient or the insurer, by the physician; provided that a determination of the amount of restitution shall be based on credible testimony in the record;
(12)	Suspension or revocation of a license to practice medicine in any other state, or territory of the United States, or other country;
(13)	The failure to respond, within a reasonable period of time and in a reasonable manner as determined by the Board, to inquiries from the Board concerning any matter affecting the license to practice medicine; and
(14)	Sexual intimacies with a patient in the course of direct treatment.
(d)	Patient records, including clinical records, medical reports, laboratory statements and reports, any file, film, any other report or oral statement relating to diagnostic findings or treatment of patients, any information from which a patient or his family might be identified, or information received and records kept by the Board as a result of investigation procedures shall not be available to the public.  Hospital records, medical staff records, medical staff review committee records, and testimony concerning such records, and proceedings related to the creation of such records, are not available to the public, shall be kept confidential by the Board, and are subject to the same provisions concerning discovery and use in legal action as are the original records in the possession and control of hospitals, their medical staffs, and their medical staff review committees.  The Board shall use such records and testimony during the course of investigations and proceedings pursuant to this Article.
"§ 90-440.  Violation; classification.
It shall be unlawful for any person not licensed under nor exempted from the provisions of this Article to perform or engage in or to advertise or hold himself or herself out as performing or engaging in an alternative medical practice regulated under this Article.  An offense under this section is a misdemeanor, punishable by up to a one thousand dollar ($1,000) fine, six months imprisonment, or both.
"§ 90-441.  Third-party reimbursement.
Nothing in this act shall require direct third party reimbursement to a provider licensed hereunder."
Sec. 2.  G.S. 14-401.5 is repealed.
Sec. 3.  This act becomes effective January 1, 1994, provided, that the Board's rule-making authority is effective upon ratification of this act.