GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 1349*

Short Title:  Amend Psychology Practice Act.	(Public)

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Sponsors: Representatives Lemmond; Aldridge, Arnold, Berry, Black, Cansler, Carpenter, Cocklereece, Culp, Cummings, Eddins, Ives, Justus, Kiser, Linney, McMahan, Pulley, Rayfield, Sexton, Sharpe, Sherrill, Shubert, Watson, Wilkins, and G. Wilson.

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Referred to:  Rules, Calendar and Operations of the House.

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May 24, 1996

A BILL TO BE ENTITLED
AN ACT TO AMEND THE PSYCHOLOGY PRACTICE ACT AND RELATED STATUTES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 90-270.2 is amended by inserting a new subdivision after subdivision (7) to read:
"(7a)	Licensed psychologist-masters. – An individual holding a masters or specialist degree in psychology to whom a license has been issued pursuant to the provisions of this Article, whose license is in force and not suspended or revoked, and whose license permits him or her to engage in the practice of psychology as defined in this Article."
Sec. 2.  G.S. 90-270.3 reads as rewritten:
"§ 90-270.3.  Practice of medicine and optometry not permitted.
Nothing in this Article shall be construed as permitting licensed psychologists, licensed psychologist-masters, or licensed psychological associates to engage in any manner in all or any of the parts of the practice of medicine or optometry licensed under Articles 1 and 6 of Chapter 90 of the General Statutes, including, among others, the diagnosis and correction of visual and muscular anomalies of the human eyes and visual apparatus, eye exercises, orthoptics, vision training, visual training and developmental vision.  A licensed psychologist, licensed psychologist-masters, or licensed psychological associate shall assist his or her client or patient in obtaining professional help for all aspects of the client's or patient's problems that fall outside the boundaries of the psychologist's own competence, including provision for the diagnosis and treatment of relevant medical or optometric problems."
Sec. 3.  G.S. 90-270.4(c) reads as rewritten:
"(c)	Persons certified by the State Board of Education as school psychologists and serving as regular salaried employees of the Department of Public Instruction or local boards of education are not required to be licensed under this Article in order to perform the duties for which they serve the Department of Public Instruction or local boards of education, and nothing in this Article shall be construed as limiting their activities, services, or titles while performing those duties for which they serve the Department of Public Instruction or local boards of education.  If a person certified by the State Board of Education as a school psychologist and serving as a regular salaried employee of the Department of Public Instruction or a local board of education is or becomes a licensed psychologist or licensed psychologist-masters under this Article, he or she shall be required to comply with all conditions, requirements, and obligations imposed by statute or by Board rules upon all other licensed psychologists or licensed psychologist-masters as a condition to retaining that license. Other provisions of this Article notwithstanding, if a person certified by the State Board of Education as a school psychologist and serving as a regular salaried employee of the Department of Public Instruction or a local board of education is or becomes a licensed psychological associate under this Article, he or she shall not be required to comply with the supervision requirements otherwise applicable to licensed psychological associates by Board rules or by this Article in the course of his or her regular salaried employment with the Department of Public Instruction or a local board of education, but he or she shall be required to comply with all other conditions, requirements, and obligations imposed by statute or a local board of education or by Board rules upon all other licensed psychological associates as a condition to retaining that license."
Sec. 4.  G.S. 90-270.4(d) reads as rewritten:
"(d)	Nothing in this Article shall be construed as limiting the activities, services, and use of title designating training status of a student, intern, fellow, or other trainee preparing for the practice of psychology under the supervision and responsibility of a qualified psychologist in an institution of higher education or service facility, provided that such activities and services constitute a part of his course of or her course of study as a matriculated graduate student in psychology.  For individuals pursuing postdoctoral or post-masters training or experience in psychology, nothing shall limit the use of a title designating training status, but the Board may develop rules defining qualified supervision, disclosure of supervisory relationships, frequency of supervision, settings to which trainees may be assigned, activities in which trainees may engage, qualifications for trainee status, nature of responsibility assumed by the supervisor, and the structure, content, and organization of postdoctoral or post-masters  experience."
Sec. 5.  G.S. 90-270.5 reads as rewritten:
"§ 90-270.5.  Application; examination; supervision; provisional and temporary licenses.
(a)	Except as otherwise exempted by G.S. 90-270.4, persons who are qualified by education to practice psychology in this State must make application for licensure to the Board within 30 days of offering to practice or undertaking the practice of psychology in North Carolina.  Applications must then be completed for review by the Board within the time period stipulated in the duly adopted rules of the Board.  Persons who practice or offer to practice psychology for more than 30 days without making application for licensure, who fail to complete the application process within the time period specified by the Board, or who are denied licensure pursuant to G.S. 90-270.11 or G.S. 90-270.15, may not subsequently practice or offer to practice psychology without first becoming licensed.
(b)	After making application for licensure, applicants must take the first examination to which they are admitted by the Board.  If applicants fail the examination, they may continue to practice psychology until they take the next examination to which they are admitted by the Board.  If applicants fail the second examination, they shall cease the practice of psychology per G.S. 90-270.4(h), and may not subsequently practice or offer to practice psychology without first reapplying for and receiving a license from the Board.  An applicant who does not take an examination on the date prescribed by the Board shall be deemed to have failed that examination.
(c)	All individuals who have yet to apply and who are practicing or offering to practice psychology in North Carolina, and all applicants who are practicing or offering to practice psychology in North Carolina, shall at all times comply with supervision requirements established by the Board.  The Board shall specify in its rules the format, setting, content, time frame, amounts of supervision, qualifications of supervisors, disclosure of supervisory relationships, the organization of the supervised experience, and the nature of the responsibility assumed by the supervisor.  Individuals shall be supervised for all activities comprising the practice of psychology until they have met the following conditions:
(1)	For licensed psychologist applicants, until they have passed the examination to which they have been admitted by the Board, have been notified of the results, have completed supervision requirements specified in subsection (d) of this section, and have been informed by the Board of permanent licensure as a licensed psychologist; 
(2)	For licensed psychological associate applicants, until they have passed the examination to which they have been admitted by the Board, have been notified of the results, and have been informed by the Board of permanent licensure as a licensed psychological associate, after which time supervision is required only for those activities specified in subsection (e) of this section; or
(3)	For licensed psychologist-masters applicants, until they have passed the examination to which they have been admitted by the Board, have been notified of the results, have completed supervision requirements specified in subsection (e1) of this section, and have been informed by the Board of permanent licensure as a licensed psychologist-masters.
(d)	For permanent licensure as a licensed psychologist, an otherwise qualified psychologist must secure two years of acceptable and appropriate supervised experience germane to his or her training and intended area of practice as a psychologist.  The Board shall permit such supervised experience to be acquired on a less than full-time basis, and shall additionally specify in its rules the format, setting, content, time frame, amounts of supervision, qualifications of supervisors, disclosure of supervisory relationships, the organization of the supervised experience, and the nature of the responsibility assumed by the supervisor.  Supervision of health services must be received from qualified licensed psychologists holding health services provider certificates, or from other psychologists recognized by the Board in accordance with Board rules.
(1)	One of these years of experience shall be postdoctoral, and for this year, the Board may require, as specified in its rules, that the supervised experience be comparable to the knowledge and skills acquired during formal doctoral or postdoctoral education, in accordance with established professional standards.
(2)	One of these years may be predoctoral and the Board shall establish rules governing appropriate supervised predoctoral experience.
(3)	A psychologist who meets all other requirements of G.S. 90-270.11(a) as a licensed psychologist, except the two years of supervised experience, may be issued a provisional license by the Board for the practice of psychology.  If the psychologist terminates the supervised experience before the completion of two years, the Board may place the psychologist on inactive status, during which time supervision will not be required, and the practice of psychology or the offer to practice psychology is prohibited.  In the event a licensed psychologist issued a provisional license under this subsection is placed on inactive status or is completing the supervised experience on a part-time basis, the Board may renew the provisional license as necessary until such time as the psychologist has completed the equivalent of two years' supervised experience.
(e)	A licensed psychological associate shall be supervised by a qualified licensed psychologist, or other qualified professionals, in accordance with Board rules specifying the format, setting, content, time frame, amounts of supervision, qualifications of supervisors, disclosure of supervisory relationships, the organization of the supervised experience, and the nature of the responsibility assumed by the supervisor.  A licensed psychological associate who provides health services shall be supervised, for those activities requiring supervision, by a qualified licensed psychologist holding health services provider certification or by other qualified professionals under the overall direction of a qualified licensed psychologist holding health services provider certification, in accordance with Board rules.  Except as provided below, supervision, including the supervision of health services, is required only when a licensed psychological associate engages in:  assessment of personality functioning; neuropsychological evaluation; psychotherapy, counseling, and other interventions with clinical populations for the purpose of preventing or eliminating symptomatic, maladaptive, or undesired behavior; and, the use of intrusive, punitive, or experimental procedures, techniques, or measures.  The Board shall adopt rules implementing and defining this provision, and as the practice of psychology evolves, may identify additional activities requiring supervision in order to maintain acceptable standards of practice.
(e1)	For permanent licensure as a licensed psychologist-masters, an otherwise qualified psychologist holding a masters or specialist degree (M.A., M.S., or Ed.S.) must secure four years of acceptable and appropriate supervised experience germane to his or her training and intended area of practice as a psychologist. The Board shall permit such supervised experience to be acquired on a less than full-time basis, and shall additionally specify in its rules the format, setting, content, time frame, amounts of supervision, qualifications of supervisors, disclosure of supervisory relationships, the organization of the supervision experience, and the nature of the responsibility assumed by the supervisor. Supervision of health services must be received from qualified licensed psychologists holding health services provider certificates, or from other psychologists authorized by the Board in accordance with Board rules. All four years of supervised experience must be acquired following completion of the masters degree, and graduate internships will not count towards meeting this supervision requirement.
(f)	A nonresident psychologist who is either licensed or certified by a similar Board in another jurisdiction whose standards, in the opinion of the Board, are, at the date of his or her certification or licensure, substantially equivalent to or higher than the requirements of this Article, may be issued a temporary license by the Board for the practice of psychology in this State for a period not to exceed the aggregate of 30 days in any calendar year.  The Board may issue temporary health services provider certification simultaneously if the nonresident psychologist can demonstrate two years of acceptable supervised health services experience.  All temporarily licensed psychologists shall comply with supervision requirements established by the Board.
(g)	An applicant for reinstatement of licensure, whose license was suspended under G.S. 90-270.15(f), may be issued a temporary license and temporary health services provider certification in accordance with the duly adopted rules of the Board."
Sec. 6.  G.S. 90-270.6 reads as rewritten:
"§ 90-270.6.  Psychology Board; appointment; term of office; composition.
For the purpose of carrying out the provisions of this Article, there is created a North Carolina Psychology Board, which shall consist of nine members appointed by the Governor.  At all times three members shall be licensed psychologists with a doctorate degree in psychology, three members shall be licensed psychologist-masters or licensed psychological associates, and three members shall be members of the public who are not licensed under this Article.  Each member of the Board must reside in a different congressional district at the time of the appointment.  Due consideration shall also be given to the adequate representation of the various fields and areas of practice of psychology.  Terms of office shall be three years.  All terms of service on the Board expire June 30 in appropriate years.  As the term of a licensed psychologist member with a doctorate degree in psychology expires, or as a vacancy occurs in that category for any other reason, the North Carolina Psychological Association shall, having sought the advice of the chairs of the graduate departments of psychology in the State, for each vacancy, submit to the Governor a list of the names of three eligible persons for each vacancy.  As the term of a licensed psychologist-masters or licensed psychological associate expires or as a vacancy occurs in that category for any other reason, the professional psychological organization representing the largest number of licensed psychologist-masters and licensed psychological associates in North Carolina shall, having sought the advice of the chairs of the graduate departments of psychology in the State for each vacancy, submit to the Governor a list of the names of three eligible persons for each vacancy.  From these lists the Governor shall make these appointments, each for a full term, or for the remainder of the unexpired term, if any.  Each Board member shall serve until his or her successor has been appointed.  As the term of a member expires, or if one should become vacant for any reason, the Governor shall appoint a new member within 60 days of the vacancy's occurring.  No member, either public or licensed under this Article, shall serve more than three complete consecutive terms."
Sec. 6.1. G.S. 90-270.7(a) reads as rewritten:
"(a)	Each licensed psychologist, licensed psychologist-masters, and licensed psychological associate member of the Board shall have the following qualifications:
(1)	Shall be a resident of this State and a citizen of the United States;
(2)	Shall be at the time of appointment and shall have been for at least five years prior thereto, actively engaged in one or more branches of psychology or in the education and training of master's, specialist, doctoral, or postdoctoral students of psychology or in psychological research, and such activity during the two years preceding appointment shall have occurred primarily in this State.
(3)	Shall be free of conflict of interest in performing the duties of the Board."
Sec. 7.  G.S. 90-270.10 reads as rewritten:
"§ 90-270.10.  Annual report.
On June 30 of each year, the Board shall submit a report to the Governor of the Board's activities since the preceding July 1, including the names of all licensed psychologists, licensed psychologist-masters, and licensed psychological associates to whom licenses have been granted under this Article, any cases heard and decisions rendered in matters before the Board, the recommendations of the Board as to future actions and policies, and a financial report.  Each member of the Board shall review and sign the report before its submission to the Governor.  Any Board member shall have the right to record a dissenting view."
Sec. 8.  G.S. 90-270.11 reads as rewritten:
"§ 90-270.11.  Licensure; examination; foreign graduates.
(a)	Licensed Psychologist. – The Board shall issue a permanent license to practice psychology to any applicant who pays an application fee and any applicable examination fee as specified in G.S. 90-270.18(b), who who passes an examination in psychology as prescribed by the Board, and who submits evidence verified by oath and satisfactory to the Board that he or she:
(1)	Is at least 18 years of age;
(2)	Is of good moral character;
(3)	Has received a doctoral degree based on a planned and directed program of studies in psychology from an institution of higher education.  The degree program, wherever administratively housed, must be publicly identified and clearly labeled as a psychology program.  The Board shall adopt rules implementing and defining these provisions, including, but not limited to, such factors as residence in the educational program, internship and related field experiences, number of course credits, course content, numbers and qualifications of faculty, and program identification and identity.
(4)	Has had at least two years of acceptable and appropriate supervised experience germane to his or her training and intended area of practice as a psychologist as specified in G.S. 90-270.5(d).
(a1)	Licensed Psychologist-Masters. – The Board shall issue a permanent license to practice psychology to any applicant who pays an application fee and any applicable examination fee as specified in G.S. 90-270.18(b), who passes an examination in psychology as prescribed by the Board, and who submits evidence verified by oath and satisfactory to the Board that he or she:
(1)	Is at least 18 years of age;
(2)	Is of good moral character;
(3)	Has received a masters or specialist degree based on a planned and directed program of studies in psychology from an institution of higher education. The degree program, wherever administratively housed, must be publicly identified and clearly labeled as a psychology program. The Board shall adopt rules implementing and defining these provisions, including, but not limited to, such factors as residence in the educational program, internship and related field experiences, number of course credits, course content, numbers and qualifications of faculty, and program identification and identity;
(4)	Has had at least four years of acceptable and appropriate supervised experience germane to his or her training and intended area of practice as a psychologist as specified in G.S. 90-270.5(e);
(5)	Has passed the national examination in psychology at the licensed psychologist passing point.
Notwithstanding the provisions of this subsection, the Board shall adopt rules implementing a transition provision whereby any licensed psychological associate in good standing may apply for a license to practice psychology as a licensed psychologist-masters (M.A., M.S., or Ed.S.) if application for such is made to the Board by June 30, 1996. These rules shall define criteria, including, but not limited to, combinations of graduate course work and years of experience that shall be deemed satisfactory to meet all requirements for licensure as a licensed psychologist-masters.
(b)	Licensed Psychological Associate. –
(1)	The Board shall issue a permanent license to practice psychology to any applicant who pays an application fee and any applicable examination fee as specified in G.S. 90-270.18(b), who passes an examination in psychology as prescribed by the Board, and who submits evidence verified by oath and satisfactory to the Board that he or she:
a.	Is at least 18 years of age;
b.	Is of good moral character;
c.	Has received a master's degree in psychology or a specialist degree in psychology from an institution of higher education.  The degree program, wherever administratively housed, must be publicly identified and clearly labeled as a psychology program.  The Board shall adopt rules implementing and defining these provisions, including, but not limited to, such factors as residence in the program, internship and related field experiences, number of course credits, course content, numbers and qualifications of faculty, and program identification and identity.
(2)	Notwithstanding the provisions of this subsection, a licensed psychologist applicant who has met all requirements for licensure except passing the examination at the licensed psychologist level, may be issued a license as a licensed psychological associate without having a master's degree or specialist degree in psychology if the applicant passes the examination at the licensed psychological associate level.
(c)	Foreign Graduates. – Applicants trained in institutions outside the United States, applying for licensure at either the licensed psychologist or licensed psychologist-masters or licensed psychological associate level, must show satisfactory evidence of training and degrees substantially equivalent to those required of applicants trained within the United States, pursuant to Board rules and regulations.
(d)	Prior Licensure. – A person who is licensed in good standing as a licensed practicing psychologist or psychological associate under the provisions of the Practicing Psychologist Licensing Act in effect immediately prior to the ratification of this Psychology Practice Act shall be deemed, as of October 1, 1993 to have met all requirements for licensure under this act and shall be eligible for renewal of licensure in accordance with the provisions of this act."
Sec. 9.  G.S. 90-270.15(a)(9) reads as rewritten:
"(9)	For a licensed psychologist or psychologist-masters, has provided health services without health services provider certification;".
Sec. 10.  G.S. 90-270.16(a) reads as rewritten:
"(a)	Except as permitted in G.S. 90-270.4 and G.S. 90-270.5, it shall be a violation of this Article for any person not licensed in accordance with the provisions of this Article to represent himself or herself as a psychologist, licensed psychologist, licensed psychological associate, licensed psychologist-masters, or health services provider in psychology."
Sec. 11.  G.S. 90-270.18(b) reads as rewritten:
"(b)	Fees for activities specified by this Article are as follows:
(1)	Application fees for licensed psychologists, licensed psychologist-masters, and licensed psychological associates per G.S. 90-270.11(a) and (b)(1), or G.S. 90-270.13, shall not exceed one hundred dollars ($100.00).
(2)	Fees for the national written examination shall be the cost of the examination to the Board plus an additional fee not to exceed fifty dollars ($50.00).
(3)	Fees for additional examinations shall be as prescribed by the Board.
(4)	Fees for the renewal of licenses, per G.S. 90-270.14(a)(1), shall not exceed two hundred fifty dollars ($250.00) per biennium.  This fee may not be prorated.
(5)	Late fees for license renewal, per G.S. 90-270.14(a)(1), shall be twenty-five dollars ($25.00).
(6)	Fees for the reinstatement of a license, per G.S. 90-270.15(f), shall not exceed one hundred dollars ($100.00).
(7)	Fees for a duplicate license, per G.S. 90-270.14(b), shall be twenty-five dollars ($25.00).
(8)	Fees for a temporary license, per G.S. 90-270.5(f) and 90-270.5(g), shall be twenty-five dollars ($25.00).
(9)	Application fees for a health services provider certificate, per G.S. 90-270.20, shall be fifty dollars ($50.00)."
Sec. 12.  G.S. 90-270.20 reads as rewritten:
"§ 90-270.20.  Provision of health services; certification as health services provider.
(a)	Health services, as defined in G.S. 90-270.2(4) and G.S. 90-270.2(8), may be provided by qualified licensed psychological associates, qualified licensed psychologist-masters, qualified licensed psychologists holding provisional, temporary, or permanent licenses, or qualified applicants. Qualified licensed psychological associates, qualified licensed psychologist-masters holding temporary licenses, qualified licensed psychologists holding provisional or temporary licenses, or qualified applicants may provide health services only under supervision as specified in the duly adopted rules of the Board.
(b)	After January 1, 1995, any licensed psychologist who is qualified by education, who holds permanent licensure and a doctoral degree, and who provides or offers to provide health services to the public must be certified as a health services provider psychologist (HSP-P) by the Board. The Board shall certify as health services provider psychologists those applicants who shall demonstrate at least two years of acceptable supervised health services experience, of which at least one year is postdoctoral. The Board shall specify the format, setting, content, and organization of the supervised health services experience or program. The Board may, upon verification of supervised experience and the meeting of all requirements as a licensed psychologist, issue the license and certificate simultaneously. An application fee, as specified in G.S. 90-270.18(b)(9), must be paid.
(b1)	After June 30, 1996, any licensed psychologist-masters who is qualified by education, who holds permanent licensure and a masters or specialist degree, and who provides or offers to provide health services to the public must be certified as a health services provider psychologist-masters (HSP-PM) by the Board. The Board shall certify as health services providers those applicants who shall demonstrate at least two years of acceptable supervised health services experience, of which all is post-masters. The Board shall specify the format, setting, content, and organization of the supervised health services experience or program. The Board may, upon verification of supervised experience and the meeting of all the requirements as a psychologist-masters, issue the license and certificate simultaneously. An application fee, as specified in G.S. 90-270.18(b)(9), must be paid.
(c)	After January 1, 1995, any licensed psychological associate who is qualified by education may be granted certification as a health services provider psychological associate (HSP-PA). The Board may, upon verification of qualifications and the meeting of all requirements as a licensed psychological associate, issue the license and certificate simultaneously. An application fee, as specified in G.S. 90-270.18(b)(9), must be paid.
(d)	After January 1, 1995, any licensed psychologist holding a provisional license who is qualified by education may be granted certification as a health services provider psychologist (provisional) (HSP-PP) by the Board. The Board may, upon verification of qualifications and the meeting of all requirements for a provisional license, issue the license and certificate simultaneously. An application fee, as specified in G.S. 90-270.18(b)(9), must be paid.
						(g)	The Board shall have the authority to deny, revoke, or suspend the health services provider certificate issued pursuant to these subsections upon a finding that the psychologist has not behaved in conformity with the ethical and professional standards prescribed in G.S. 90-270.15."
Sec. 13. G.S. 58-50-30(b) reads as rewritten:
"(b)	For the purposes of this section, a 'duly licensed psychologist' shall be defined only to include a psychologist who is duly licensed in the State of North Carolina and has a doctorate degree in psychology and at least two years clinical experience in a recognized health setting, or has met the standards of the National Register of Health Service Providers in Psychology.  After January 1, 1995, a duly licensed psychologist shall be defined as a licensed psychologist or a licensed psychologist-masters who holds permanent licensure and certification as a health services provider psychologist or health services provider psychologist-masters issued by the North Carolina Psychology Board."
Sec. 14. G.S. 58-65-1(c) reads as rewritten:
"(c)	For purposes of this section, an 'advanced practice registered nurse' means only a registered nurse who is duly licensed or certified as a nurse practitioner, clinical specialist in psychiatric and mental health nursing, or nurse midwife.
For the purposes of this section, a 'duly certified clinical social worker' is a 'certified clinical social worker' as defined in G.S. 90B-3(2)	and certified by the North Carolina Certification Board for Social Work pursuant to Chapter 90B of the General Statutes.
For the purposes of this section, a 'duly licensed psychologist' shall be defined only to include a psychologist who is duly licensed in the State of North Carolina and has a doctorate degree in psychology and at least two years clinical experience in a recognized health setting, or has met the standards of the National Register of Health Providers in Psychology.  After January 1, 1995, a duly licensed psychologist shall be defined as a licensed psychologist or licensed psychologist-masters who holds permanent licensure and certification as a health services provider psychologist or health services provider psychologist-masters issued by the North Carolina Psychology Board.
The term 'dental service plan' as used in this Article and Article 66 of this Chapter includes contracting for the payment of fees toward, or furnishing of dental and/or any other professional services authorized or permitted to be furnished by a duly licensed dentist.
The insured or beneficiary of every 'medical service plan' and of every 'dental service plan,' as those terms are used in this Article and Article 66 of this Chapter, or of any policy of insurance issued thereunder, that includes services which are within the scope of practice of both a duly licensed physician and a duly licensed dentist shall have the right to choose the provider of such care or service, and shall be entitled to payment of or reimbursement for such care or service, whether the provider be a duly licensed physician or a duly licensed dentist notwithstanding any provision to the contrary contained in any such plan or policy.
The term 'hospital service corporation' as used in this Article and Article 66 of this Chapter is intended to mean any nonprofit corporation operating a hospital and/or medical and/or dental service plan, as herein defined.  Any corporation heretofore or hereafter organized and coming within the provisions of this Article and Article 66 of this Chapter, the certificate of incorporation of which authorizes the operation of either a hospital or medical and/or dental service plan, or any or all of them, may, with the approval of the Commissioner of Insurance, issue subscribers' contracts or certificates approved by the Commissioner of Insurance, for the payment of either hospital or medical and/or dental fees, or the furnishing of such services, or any or all of them, and may enter into contracts with hospitals for physicians and/or dentists, or any or all of them, for the furnishing of fees or services respectively under a hospital or medical and/or dental service plan, or any or all of them.
The term 'preferred provider' as used in this Article and Article 66 of this Chapter with respect to contracts, organizations, policies or otherwise means a health care service provider who has agreed to accept, from a corporation organized for the purposes authorized by this Article and Article 66 of this Chapter or other applicable law, special reimbursement terms in exchange for providing services to beneficiaries of a plan administered pursuant to this Article and Article 66 of this Chapter.  Except to the extent prohibited either by G.S. 58-65-140 or by regulations promulgated by the Department of Insurance not inconsistent with this Article and Article 66 of this Chapter, the contractual terms and conditions for special reimbursement shall be those which the corporation and preferred provider find to be mutually agreeable."
Sec. 15. G.S. 58-65-75(d) reads as rewritten:
"(d)	Provisions for benefits for necessary care and treatment of chemical dependency in group certificates or group contracts shall provide for benefit payments for the following providers of necessary care and treatment of chemical dependency:
(1)	The following units of a general hospital licensed under Article 5 of General Statutes Chapter 131E:
a.	Chemical dependency units in facilities licensed after October 1, 1984;
b.	Medical units;
c.	Psychiatric units; and
(2)	The following facilities or programs licensed after July 1, 1984, under Article 2 of General Statutes Chapter 122C:
a.	Chemical dependency units in psychiatric hospitals;
b.	Chemical dependency hospitals;
c.	Residential chemical dependency treatment facilities;
d.	Social setting detoxification facilities or programs;
e.	Medical detoxification facilities or programs; and
(3)	Duly licensed physicians and duly licensed psychologists and certified professionals working under the direct supervision of such physicians or psychologists in facilities described in (1) and (2) above and in day/night programs or outpatient treatment facilities licensed after July 1, 1984, under Article 2 of General Statutes Chapter 122C.  " After January 1, 1995, a 'duly licensed psychologist' shall be defined as a licensed psychologist or a licensed psychologist-masters who holds permanent licensure and certification as a health services provider psychologist or health services provider psychologist-masters issued by the North Carolina Psychologist Board.
Provided, however, that nothing in this subsection shall prohibit any certificate or contract from requiring the most cost effective treatment setting to be utilized by the person undergoing necessary care and treatment for chemical dependency."
Sec. 16.  G.S. 122C-3(13b) reads as rewritten:
"(13b)	'Eligible psychologist' means a licensed psychologist who has at least two years' clinical experience.  After January 1, 1995, 'eligible psychologist' means a licensed psychologist or a licensed psychologist-masters who holds permanent licensure and certification as a health services provider psychologist or health services provider psychologist-masters issued by the North Carolina Psychology Board."
Sec. 17.  G.S. 135-40.7A(c) reads as rewritten:
"(c)	Notwithstanding any other provision of this Part, provisions for benefits for necessary care and treatment of chemical dependency under this Part shall provide for benefit payments for the following providers of necessary care and treatment of chemical dependency:
(1)	The following units of a general hospital licensed under Article 5 of General Statutes Chapter 131E:
a.	Chemical dependency units in facilities licensed after October 1, 1984;
b.	Medical units;
c.	Psychiatric units; and
(2)	The following facilities licensed after July 1, 1984, under Article 2 of General Statutes Chapter 122C:
a.	Chemical dependency units in psychiatric hospitals;
b.	Chemical dependency hospitals;
c.	Residential chemical dependency treatment facilities;
d.	Social setting detoxification facilities or programs;
e.	Medical detoxification facilities or programs; and
(3)	Duly licensed physicians and duly licensed practicing psychologists, duly licensed psychologist-masters, certified clinical social workers, certified clinical specialists in psychiatric and mental health nursing, and certified professionals working under the direct supervision of such physicians or psychologists in facilities described in (1) and (2) above and in day/night programs or outpatient treatment facilities licensed after July 1, 1984, under Article 2 of General Statutes Chapter 122C.
Provided, however, that nothing in this subsection shall prohibit the Plan from requiring the most cost effective treatment setting to be utilized by the person undergoing necessary care and treatment for chemical dependency."
Sec. 18.  G.S. 135-40.7B(c) reads as rewritten:
"(c)	Notwithstanding any other provisions of this Part, the following providers are authorized to provide necessary care and treatment for mental illness under this section:
(1)	Licensed psychiatrists;
(2)	Licensed or certified doctors of psychology;
(3)	Certified clinical social workers;
(4)	Psychiatric nurses;
(5)	Other social workers under the direct employment and supervision of a licensed psychiatrist or licensed doctor of psychology;
(6)	Psychological associates with a master's degree in psychology under the direct employment and supervision of a licensed psychiatrist or licensed or certified doctor of psychology;
(6.1)	Duly licensed psychologist-masters who hold permanent licensure and certification  as health service provider psychologist-masters issued by the North Carolina Psychology Board;
(7)	Licensed psychiatric hospitals and licensed general hospitals providing psychiatric treatment programs; and
(8)	Certified residential treatment facilities, community mental health centers, and partial hospitalization facilities."
Sec. 19.  The initial terms of the two additional members of the North Carolina Psychology Board added by Section 6 of this act shall commence upon the ratification of this act and shall end on June 30 of the third calendar year after the year in which the act is ratified.
Sec. 20.  This act is effective upon ratification.