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.