By King                                               H.B. No. 1765
       74R5427 JMM-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of the fitting and dispensing of hearing
    1-3  instruments.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 1, Chapter 366, Acts of the 61st
    1-6  Legislature, Regular Session, 1969 (Article 4566-1.01, Vernon's
    1-7  Texas Civil Statutes), is amended by amending Subdivision (3) and
    1-8  adding Subdivision (14) to read as follows:
    1-9              (3)  "Temporary training permit" means a permit issued
   1-10  by the committee to persons authorized to fit and dispense hearing
   1-11  instruments only under the direct or indirect supervision, as
   1-12  appropriate, of a person who holds a license under this Act.
   1-13              (14)  "Indirect supervision" means the daily review by
   1-14  a supervisor of a temporary training permit holder's patient
   1-15  contact and daily work.
   1-16        SECTION 2.  Section 2(a), Chapter 366, Acts of the 61st
   1-17  Legislature, Regular Session, 1969 (Article 4566-1.02, Vernon's
   1-18  Texas Civil Statutes), is amended to read as follows:
   1-19        (a)  The State Committee of Examiners in the Fitting and
   1-20  Dispensing of Hearing Instruments is within the Texas Department of
   1-21  Health and is composed of nine members appointed by the governor
   1-22  with the advice and consent of the senate.  Appointments shall be
   1-23  made without regard to the race, creed, sex, religion, or national
   1-24  origin of the appointees.  The committee members must have the
    2-1  following qualifications:
    2-2              (1)  six committee members must possess a hearing
    2-3  instrument dispenser's license under this Act and have been
    2-4  residents of this state actually engaged in fitting and dispensing
    2-5  hearing instruments for at least five years preceding their
    2-6  appointment; not <no> more than one person <two persons> licensed
    2-7  under Chapter 381, Acts of the 68th Legislature, Regular Session,
    2-8  1983 (Article 4512j, Vernon's Texas Civil Statutes), is <and its
    2-9  subsequent amendments, are> eligible to serve as a member
   2-10  <members> of the committee;
   2-11              (2)  two committee members must be members of the
   2-12  general public, each of whom is eligible for appointment as a
   2-13  public member only if the person and the person's spouse are not
   2-14  licensed by an occupational regulatory agency in the field of
   2-15  health care; are not employed by and do not participate in the
   2-16  management of a business entity or other organization that provides
   2-17  health-care services or that sells, manufactures, or distributes
   2-18  health-care supplies or equipment; and do not own, control, or
   2-19  have, directly or indirectly, an interest in a business entity or
   2-20  other organization that provides health-care services or that
   2-21  sells, manufactures, or distributes health-care supplies or
   2-22  equipment; and
   2-23              (3)  one committee member must be a citizen of the
   2-24  United States and a resident of this state for at least two years
   2-25  preceding the person's appointment, be an active practicing
   2-26  physician or surgeon licensed to practice in this state by the
   2-27  Texas State Board of Medical Examiners, and specialize in the
    3-1  practice of otolaryngology and may not have a financial interest in
    3-2  a hearing instrument manufacturing company or a wholesale or retail
    3-3  hearing instrument company.
    3-4        SECTION 3.  Section 6(b), Chapter 366, Acts of the 61st
    3-5  Legislature, Regular Session, 1969 (Article 4566-1.06, Vernon's
    3-6  Texas Civil Statutes), is amended to read as follows:
    3-7        (b)  The applicant shall:
    3-8              (1)  apply <must make application> to the committee on
    3-9  forms to be furnished by the committee, including sworn evidence
   3-10  that the applicant has attained the age of majority and has
   3-11  graduated from an accredited high school or equivalent and
   3-12  providing other information as the committee may deem necessary for
   3-13  the enforcement of this Act; and
   3-14              (2)  pay any required fees for application and
   3-15  examination.
   3-16        SECTION 4.  Sections 9(a), (e), (f), and (h), Chapter 366,
   3-17  Acts of the 61st Legislature, Regular Session, 1969 (Article
   3-18  4566-1.09, Vernon's Texas Civil Statutes), are amended to read as
   3-19  follows:
   3-20        (a)(1)  The committee shall grant a temporary training permit
   3-21  to fit and dispense hearing instruments to any person applying to
   3-22  the committee who has never taken the examination provided in the
   3-23  Act and who possesses the qualifications in Subsection (b) of
   3-24  Section 6 of this Act, on written application to the committee.
   3-25  The applicant must pay the temporary training permit fee and make
   3-26  application on forms to be furnished by the committee furnishing
   3-27  sworn evidence that the applicant possesses the qualifications
    4-1  contained in Subsection (b), Section 6, of this Act, that the
    4-2  applicant has never taken the examination provided in this Act, and
    4-3  that the applicant has never previously been issued in this state a
    4-4  temporary training permit to fit and dispense hearing instruments.
    4-5              (2)  Students of audiology in an accredited college or
    4-6  university program are exempt from the provisions of this Act,
    4-7  provided that their activities and services constitute a part of
    4-8  their supervised course of study or practicum experience.  Such
    4-9  students are subject to the provisions of Chapter 381, Acts of the
   4-10  68th Legislature, Regular Session, 1983 (Article 4512j, Vernon's
   4-11  Texas Civil Statutes)<, and its subsequent amendments>.
   4-12        (e)  The committee shall establish educational guidelines,
   4-13  both formal and practical, for the training of temporary training
   4-14  permit holders.  The training guidelines must include directions to
   4-15  the training supervisor about the subject matter to be taught,
   4-16  length of the training, extent of a trainee's contact with the
   4-17  public, and responsibility of the training supervisor for direct
   4-18  and indirect supervision of all aspects of the training.  A trainee
   4-19  shall be required to have at least 150 hours of directly supervised
   4-20  practicum that shall include the following:
   4-21              (1)  25 hours of pure tone air conduction, bone
   4-22  conduction, and speech audiometry, recorded and live voice;
   4-23              (2)  25 hours of hearing instrument evaluations
   4-24  including sound field measurements with recorded and live voice;
   4-25              (3)  20 hours of instrument fittings with actual
   4-26  clients;
   4-27              (4)  10 hours of earmold orientation types, uses, and
    5-1  terminology;
    5-2              (5)  15 hours of earmold impressions and otoscopic
    5-3  examinations of the ear;
    5-4              (6)  15 hours of troubleshooting of defective hearing
    5-5  instruments;
    5-6              (7)  20 hours of case history with actual clients;
    5-7              (8)  10 hours of the laws governing the licensing of
    5-8  persons fitting and dispensing hearing instruments and federal Food
    5-9  and Drug Administration and Federal Trade Commission regulations
   5-10  relating to the fitting and dispensing of hearing instruments; and
   5-11              (9)  10 hours of supplemental work in one or more of
   5-12  the above areas.
   5-13        (f)  <The length of the training may not be shorter than 200
   5-14  days.>  The training period begins on the date of the issuance of
   5-15  the temporary permit.  On completion of the 150 hours of directly
   5-16  supervised practicum under Subsection (e) of this section, a
   5-17  temporary training permit holder shall complete the permit holder's
   5-18  training under the indirect supervision of the permit holder's
   5-19  supervisor.
   5-20        (h)  A supervisor of a temporary training permit holder must
   5-21  be licensed under this Act.  Supervision of a permit holder shall
   5-22  entail direct and indirect supervision by the supervisor as
   5-23  appropriate.  A supervisor may not supervise more than two trainees
   5-24  at any one time.
   5-25        SECTION 5.  Section 9A(a), Chapter 366, Acts of the 61st
   5-26  Legislature, Regular Session, 1969 (Article 4566-1.09A, Vernon's
   5-27  Texas Civil Statutes), is amended to read as follows:
    6-1        (a)  A temporary training permit holder who has taken all
    6-2  parts of the examination given by the committee and has passed all
    6-3  parts of the examination with a score of 70 percent or greater and
    6-4  paid the required fees shall be issued an apprentice permit to fit
    6-5  and dispense hearing instruments.  An apprentice permit remains
    6-6  valid for one year unless it is extended by the committee for an
    6-7  additional period not to exceed six months.
    6-8        SECTION 6.  Section 12, Chapter 366, Acts of the 61st
    6-9  Legislature, Regular Session, 1969 (Article 4566-1.12, Vernon's
   6-10  Texas Civil Statutes), is amended to read as follows:
   6-11        Sec. 12.  Fees and expenses.  (a)  The committee by rule
   6-12  shall adopt reasonable and necessary fees so that the fees, in the
   6-13  aggregate, produce sufficient revenue to cover the costs of
   6-14  administering this Act.  The fees adopted by the committee under
   6-15  this section may include a license fee, license renewal fee,
   6-16  examination fee, temporary training permit fee, apprentice license
   6-17  fee, duplicate document fee, and other fees as necessary to
   6-18  administer this Act.  <The fees for administering this Act shall be
   6-19  as follows:>
   6-20              <1.  Temporary Training Permit               $200>
   6-21              <2.  Examination Fee                          250>
   6-22              <3.  Apprentice License Fee                   300>
   6-23              <4.  License Fee                              220>
   6-24              <5.  License Renewal Fee                      440>
   6-25              <6.  Duplicate Document Fee                    50>
   6-26        (b)  The hearing instrument dispensers licensing account is
   6-27  created in the general revenue fund.  Funds in the account may be
    7-1  used by the committee and department only for the administration of
    7-2  this Act.  Fees received under this Act shall be deposited in the
    7-3  general revenue fund to the credit of the account.  Sections
    7-4  403.094 and 403.095, Government Code, do not apply to the hearing
    7-5  instrument dispensers licensing account.  <The committee shall,
    7-6  every third work day, remit to the state treasurer all of the fees
    7-7  collected by the committee during the preceding month for deposit
    7-8  in the general revenue fund.>
    7-9        (c)  <Funds for the administration of this Act shall be
   7-10  provided by the General Appropriations Act from the general revenue
   7-11  fund.>  The financial transactions of the committee are subject to
   7-12  audit by the state auditor in accordance with Chapter 321,
   7-13  Government Code.
   7-14        SECTION 7.  Section 14(e), Chapter 366, Acts of the 61st
   7-15  Legislature, Regular Session, 1969 (Article 4566-1.14, Vernon's
   7-16  Texas Civil Statutes), is amended to read as follows:
   7-17        (e)  <If audiometric testing is not conducted in a stationary
   7-18  acoustical enclosure, sound level measurements must be conducted at
   7-19  the time of the testing to ensure that ambient noise levels meet
   7-20  permissible standards for testing threshold to 20 dB based on the
   7-21  most current American National Standards Institute (ANSI) "ears
   7-22  covered" octave band criteria for Permissible Ambient Noise Levels
   7-23  During Audiometric Testing.  A dBA equivalent level may be used to
   7-24  determine compliance.>  The committee by rule shall establish
   7-25  maximum ambient noise levels permissible for the testing of human
   7-26  hearing <adopt rules necessary to enforce the provisions of this
   7-27  subsection>.
    8-1        SECTION 8.  Section 15(a), Chapter 366, Acts of the 61st
    8-2  Legislature, Regular Session, 1969 (Article 4566-1.15, Vernon's
    8-3  Texas Civil Statutes), is amended to read as follows:
    8-4        (a)  It is unlawful for any person to:
    8-5              (1)  buy, sell, or fraudulently obtain a license to fit
    8-6  and dispense hearing instruments or aid another in any of those
    8-7  activities;
    8-8              (2)  alter a license to fit and dispense hearing
    8-9  instruments with the intent to defraud;
   8-10              (3)  willfully make a false statement in an application
   8-11  to the committee for a license, for a temporary training permit, or
   8-12  for the renewal of a license;
   8-13              (4)  falsely impersonate any person licensed as a
   8-14  fitter and dispenser of hearing instruments under this Act;
   8-15              (5)  offer or represent that the person is authorized
   8-16  to fit and dispense hearing instruments, or use in connection with
   8-17  the person's name any designation tending to imply that the person
   8-18  is authorized to engage in the fitting and dispensing of hearing
   8-19  instruments, if the person is not licensed under the provisions of
   8-20  this Act;
   8-21              (6)  engage in the fitting and dispensing of hearing
   8-22  instruments during the time the person's license shall be
   8-23  cancelled, suspended, or revoked;
   8-24              (7)  dispense or fit a hearing instrument on any
   8-25  individual who has ordered the hearing instrument or device by mail
   8-26  unless the person dispensing and fitting the hearing instrument or
   8-27  device is licensed under this Act or under Chapter 381, Acts of the
    9-1  68th Legislature, Regular Session, 1983 (Article 4512j, Vernon's
    9-2  Texas Civil Statutes)<, and its subsequent amendments>; or
    9-3              (8)  sell hearing instruments by mail except as
    9-4  provided by Section 18 of this Act.
    9-5        SECTION 9.  Sections 16A(a), (b), and (d), Chapter 366, Acts
    9-6  of the 61st Legislature, Regular Session, 1969 (Article 4566-1.16A,
    9-7  Vernon's Texas Civil Statutes), are amended to read as follows:
    9-8        (a)  A sole proprietor, partnership, corporation, or other
    9-9  legal entity engaged in the fitting and dispensing of hearing
   9-10  instruments <A license holder> shall file a bond or a surety in
   9-11  lieu of a bond in the amount of $10,000 with the committee
   9-12  conditioned on the <license holder's> promise to pay all:
   9-13              (1)  taxes and contributions due to the state and
   9-14  political subdivisions of the state by the sole proprietor,
   9-15  partnership, corporation, or other legal entity; and
   9-16              (2)  judgments that the sole proprietor, partnership,
   9-17  corporation, or other legal entity <license holder>  may be
   9-18  required to pay for negligently or improperly dispensing hearing
   9-19  instruments or for breaching a contract relating to the dispensing
   9-20  of hearing instruments.
   9-21        (b)  A sole proprietor, partnership, corporation, or other
   9-22  legal entity subject to Subsection (a) of this section <A license
   9-23  holder> may file with the committee a cash deposit or other
   9-24  negotiable security acceptable to the committee in the amount
   9-25  required in Subsection (a) of this section in lieu of a bond.
   9-26        (d)  The purchaser of a hearing instrument may rescind the
   9-27  purchase and recover as provided by this section for:
   10-1              (1)  a material misstatement of fact or
   10-2  misrepresentation by a <the> license holder employed by the sole
   10-3  proprietor, partnership, corporation, or other legal entity
   10-4  regarding the hearing instrument or services to be provided by the
   10-5  license holder that were relied on by the purchaser or that induced
   10-6  the purchaser to purchase the instrument;
   10-7              (2)  the failure by the sole proprietor, partnership,
   10-8  corporation, or other legal entity <license holder> to provide the
   10-9  purchaser with an instrument or with fitting and dispensing
  10-10  services that conform to the specifications of the purchase
  10-11  agreement;
  10-12              (3)  the diagnosis of a medical condition unknown to
  10-13  the purchaser at the time of the purchase that precludes the
  10-14  purchaser's use of the instrument;
  10-15              (4)  the failure by the sole proprietor, partnership,
  10-16  corporation, or other legal entity <license holder> to remedy a
  10-17  significant material defect of the hearing instrument within a
  10-18  reasonable time;
  10-19              (5)  the provision by the sole proprietor, partnership,
  10-20  corporation, or other legal entity <license holder  of a hearing
  10-21  instrument> of fitting and dispensing services that are not in
  10-22  accordance with accepted industry practices; or
  10-23              (6)  the failure by a <the> license holder employed by
  10-24  the sole proprietor, partnership, corporation, or other legal
  10-25  entity to meet the standards of conduct prescribed under this Act
  10-26  or by rules adopted under this Act that adversely affects the
  10-27  transactions between the purchaser and  the license holder or sole
   11-1  proprietorship, partnership, corporation, or other legal entity.
   11-2        SECTION 10.  Section 16B, Chapter 366, Acts of the 61st
   11-3  Legislature, Regular Session, 1969 (Article 4566-1.16B, Vernon's
   11-4  Texas Civil Statutes), is amended to read as follows:
   11-5        Sec. 16B.  Ownership of dispensing practice.  (a)  A person
   11-6  who owns, maintains, or operates an office or place of business
   11-7  where the person employs or engages under contract a person who
   11-8  practices the fitting and dispensing of hearing instruments shall
   11-9  be considered also to be engaged in the practice of fitting and
  11-10  dispensing of hearing instruments under this Act.  If the person
  11-11  who owns, maintains, or operates an office or place of business
  11-12  under this subsection is a partnership, each partner must be
  11-13  licensed as provided by this section.  If the person who owns,
  11-14  maintains, or operates an office or place of business under this
  11-15  subsection is a corporation or other entity, the chief executive
  11-16  officer of the corporation or entity must be licensed as provided
  11-17  by this section.
  11-18        (b)  A person who is considered to be practicing the fitting
  11-19  and dispensing of hearing instruments under this section shall be
  11-20  required to be licensed under this Act or licensed under Chapter
  11-21  381, Acts of the 68th Legislature, Regular Session, 1983 (Article
  11-22  4512j, Vernon's Texas Civil Statutes), <and its subsequent
  11-23  amendments,> as an audiologist.
  11-24        SECTION 11.  Chapter 366, Acts of the 61st Legislature,
  11-25  Regular Session, 1969 (Article 4566-1.01 et seq., Vernon's Texas
  11-26  Civil Statutes), is amended by adding Section 18 to read as
  11-27  follows:
   12-1        Sec. 18.  DIRECT-MAIL AND CATALOG SALES.  (a)  Hearing
   12-2  instruments may be sold by direct mail or through a catalog under
   12-3  this Act only as provided by this section.
   12-4        (b)  A person who sells hearing instruments by direct mail or
   12-5  through a catalog must be licensed under this Act.
   12-6        (c)  A person who sells a hearing instrument by direct mail
   12-7  or through a catalog may not give advice regarding:
   12-8              (1)  the fitting, selection, or adaptation of the
   12-9  instrument; or
  12-10              (2)  the taking of an ear impression for an earmold.
  12-11        (d)  Before a person may sell a hearing instrument by direct
  12-12  mail or through a catalog, the person purchasing the instrument
  12-13  must provide the person selling the instrument with a statement
  12-14  signed by a physician or surgeon specializing in the practice of
  12-15  otolaryngology, an audiologist, or a license holder under this Act
  12-16  practicing in this state who has performed an examination on the
  12-17  person purchasing the instrument that complies with the
  12-18  requirements of Section 14, Chapter 366, Acts of the 61st
  12-19  Legislature, Regular Session, 1969 (Article 4566-1.14, Vernon's
  12-20  Texas Civil Statutes).  The information required under Sections
  12-21  14(c)(1), (2), and (3), Chapter 366, Acts of the 61st Legislature,
  12-22  Regular Session, 1969 (Article 4566-1.14, Vernon's Texas Civil
  12-23  Statutes), must be retained by the person selling the hearing
  12-24  instrument for a period specified by committee rule.  The
  12-25  information required under Sections 14(c)(4) and (5), Chapter 366,
  12-26  Acts of the 61st Legislature, Regular Session, 1969 (Article
  12-27  4566-1.14, Vernon's Texas Civil Statutes), must be retained for a
   13-1  period specified by committee rule by the physician specializing in
   13-2  the practice of otolaryngology, the audiologist, or the license
   13-3  holder under this Act practicing in this state who performed the
   13-4  required post-fitting verifications.
   13-5        SECTION 12.  This Act takes effect September 1, 1995.
   13-6        SECTION 13.  (a)  The change in law made by this Act to
   13-7  Section 9(f), Chapter 366, Acts of the 61st Legislature, Regular
   13-8  Session, 1969 (Article 4566-1.09, Vernon's Texas Civil Statutes),
   13-9  regarding the requirements for a person holding a temporary
  13-10  training permit applies only to a person holding a temporary
  13-11  training permit issued on or after the effective date of this Act.
  13-12  A person holding a temporary training permit issued before that
  13-13  date is governed by the law in effect at the time the permit was
  13-14  issued, and the former law is continued in effect for that purpose.
  13-15        (b)  The change in law made by this Act to Section 15,
  13-16  Chapter 366, Acts of the 61st Legislature, Regular Session, 1969
  13-17  (Article 4566-1.15, Vernon's Texas Civil Statutes), applies only to
  13-18  a hearing instrument sold on or after the effective date of this
  13-19  Act.  A hearing instrument sold before that date is governed by the
  13-20  law in effect at the time the instrument was sold, and the former
  13-21  law is continued in effect for that purpose.
  13-22        SECTION 14.  The importance of this legislation and the
  13-23  crowded condition of the calendars in both houses create an
  13-24  emergency and an imperative public necessity that the
  13-25  constitutional rule requiring bills to be read on three several
  13-26  days in each house be suspended, and this rule is hereby suspended.