BILL ANALYSIS C.S.H.B. 1765 By: King 04-04-95 Committee Report (Substituted) BACKGROUND During the 73rd Session, the Legislature passed a bill relating to the fitting and dispensing of hearing aids. A result of this legislation is that fitters and dispensers are licensed and regulated by the State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments (the Committee). However, some of the provisions passed have proven to be inappropriate and cumbersome for hearing aid fitters and dispensers. PURPOSE H.B. 1765 amends the laws relating to the licensing and regulation of fitters and dispensers of hearing aids, and the requirements regarding a temporary training permit and indirect supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants additional rulemaking authority to the Committee in SECTION 6 (Sec. 12(a), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969). SECTION BY SECTION ANALYSIS SECTION 1. Amends subdivisions (3) and (13) and adds subdivisions (14) and (15), Section 1, Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.01, Vernon's Texas Civil Statutes), as follows: (3) Includes a reference to indirect supervision in the definition of "temporary training permit." (13) Adds the requirement of the presence of a supervisor on the premises and available for prompt consultation to the definition of "direct supervision" while deleting required supervision any time a temporary permit holder is engaged in services related to hearing instruments. (14) Adds the definition of "indirect supervision," meaning the daily review of a supervisor of a temporary training permit holder's work. (15) Adds the definition of "contact hour," meaning 55 minutes. SECTION 2. Amends Section 2(a), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.02, V.T.C.S.), by reducing the Committee member qualifications of persons licensed under Chapter 381, Acts of the 68th Legislature, Regular Session, 1983 (Article 4512j, V.T.C.S.) from two to one, and deleting a reference to the subsequent amendments to Chapter 381. SECTION 3. Amends Section 6(b), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.06, V.T.C.S.), by requiring that applicants apply to the Committee on forms furnished by the Committee, and pay any required fees for application and examination. SECTION 4. Amends Sections 9(a), (e), (f), and (h) and adds Subsection (1), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.09, V.T.C.S.) as follows: (a) Adds that the applicant must pay the temporary training permit fee. (e) Adds a reference to indirect supervision with regard to training guidelines, and adds the word "contact" to the hours required of a trainee, also adding to (e)(1) that 15 of the 25 required contact hours of training specified in this subsection be with actual clients. (f) Changes the length of the training period from at least 200 days to on completion of 150 hours of directly supervised practice according to the provisions of Subsection (e) of this Section, and requires a temporary training permit holder to complete training under the indirect supervision of the permit holder's supervisor. (h) Adds a reference to indirect supervision with regard to supervision guidelines, and adds Subsection (h)(1) establishing that a temporary training permit holder may provide routine fitting and dispensing ordered by the permit holder's supervisor, who is the sole judge of whether the permit holder has the qualifications necessary to do this. Establishes that a supervisor is accountable to the Committee for the permit holder's misdeeds while acting at the supervisor's discretion. SECTION 5. Amends Section 9A(a), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.09A, V.T.C.S.), by adding that a temporary training permit holder must also pay the required fees when applying for an apprentice permit. SECTION 6. Amends Section 12, Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.12, V.T.C.S.), as follows: (a) Deletes the specific fee amounts for administering this Act, adds a requirement that the Committee, by rule, adopt reasonable and necessary fees to cover the costs of administering this Act, and specifies what types of fees may be adopted. (b) Deletes the requirement specifying when the fees are to be deposited, adds that the hearing instrument dispensers licensing account is in the general revenue fund, and states that the fees may be used only to administer this Act. Requires the fees to be deposited in this fund, and establishes that Sections 403.094 and 403.095, Government Code, do not apply to this account. (c) Deletes the requirement that the funds are to be provided by the General Appropriations Act from the general revenue fund. SECTION 7. Amends Section 16A(a), (b), and (d), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.16A, V.T.C.S.), as follows: (a) Deletes "a license holder," and adds that a sole proprietor, partnership, corporation, or other legal entity engaged in the fitting and dispensing of hearing instruments must file a bond or a surety in lieu of a bond for $10,000 with the Committee. Requires this to cover taxes and contributions due to the state, and possible judgments for negligence or a breach of a contract by the aforementioned persons. (b) Deletes "a license holder," and adds that a sole proprietor, partnership, corporation, or other legal entity subject to the provisions of subsection (a) may file with the Committee a cash deposit or other negotiable security acceptable to the Committee in the amount of $10,000 in lieu of a bond. (d) Establishes that a purchaser of a hearing instrument may rescind the purchase and recover certain allowances as provided in this section, and amends the text so that the liability for the hearing instrument moves from the license holder to the sole proprietor, partnership, corporation or other legal entity that employs the license holder. SECTION 8. Amends Section 16B, Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.16B, V.T.C.S.), by requiring that each person owning, maintaining or operating a partnership under this Subsection must be licensed as provided by this Section; if the person is the chief executive officer of a corporation or other entity, then that person must also be licensed. Deletes a reference to the subsequent amendments of Chapter 381 with regard to licensing. SECTION 9. Effective date: September 1, 1995. SECTION 10. Establishes that the change in law made by this Act to Section 9(f), Chapter 366, Acts of the 61st Legislature, Regular Session, 1969 (Article 4566-1.09, V.T.C.S.), relates only to those persons holding a temporary training permit issued on or after the effective date of this Act. Permits issued before this date are governed by the law in effect at the time the permit was issued. SECTION 11. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE H.B. 1765, as originally filed, raised several concerns among the persons affected by the bill. The committee substitute for H.B. 1765 addresses these concerns by amending the definition of "direct supervision" and adding the definition of "contact hour," and by deleting the sections concerning ambient noise levels, selling hearing instruments by mail, and selling hearing instruments by direct-mail and catalog sales. The substitute also deletes the subsection concerning the effective dates for the regulation of selling a hearing instrument. SUMMARY OF COMMITTEE ACTION H.B. 1765 was considered by the Public Health Committee in a public hearing on April 4, 1995. The Committee considered a complete substitute for the bill. The substitute was adopted without objection. The following persons testified for the bill: Ray Jones, representing self. Bill Gilliam, representing Houston Area Hearing Aid Dispensers Association. Wes McKinzey, representing self. Jim Wilson, representing Licensed Hearing Aid Dispensers in Texas. The following person testified on the bill: Bobby Schmidt, representing State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed by a record vote of 7 Ayes, 0 Nays, 0 PNV, and 2 Absent.