By Van de Putte                                       H.B. No. 3415
         76R9323 T                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to regulation of mail order sales of hearing instruments.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1.01, Chapter 366, Acts of the 61st
 1-5     Legislature, Regular Session, 1969 (Article 4566-1.01, Vernon's
 1-6     Texas Civil Statutes), is amended by adding Subdivision (16) to
 1-7     read as follows:
 1-8                 (16)  "Mail order sales" means the transfer of title or
 1-9     of the right to use by lease, bailment, or any other contract from
1-10     any person whose primary business is the sale of hearing
1-11     instruments, and who is located in a state of the United State
1-12     other than this state.
1-13           SECTION 2.  Section 1.01A, Chapter 366, Acts of the 61st
1-14     Legislature, Regular Session, 1969 (Article 4566-1.01A, Vernon's
1-15     Texas Civil Statutes), is amended to read as follows:
1-16           Sec. 1.01A.  Policy.  It is the policy of this state to:
1-17                 (1)  safeguard the health and welfare of the
1-18     communicatively handicapped people of this state from the
1-19     dispensing of hearing instruments by unskilled or unprincipled
1-20     practitioners;
1-21                 (2)  establish and enforce standards of practitioner
1-22     competency;
1-23                 (3)  provide regulatory authority over practitioners
1-24     offering hearing instrument dispensing services to the public; and
 2-1                 (4)  ensure professional ethical conduct in the
 2-2     dispensing of hearing aid devices or instruments.
 2-3           SECTION 3.  Section 1.15, Chapter 366, Acts of the 61st
 2-4     Legislature, Regular Session, 1969 (Article 4566-1.15, Vernon's
 2-5     Texas Civil Statutes), is amended to read as follows:
 2-6           Sec. 1.15.  Prohibited acts;  (a)  It is unlawful for any
 2-7     person to:
 2-8                 (1)  buy, sell, or fraudulently obtain a license to fit
 2-9     and dispense hearing instruments or aid another in any of those
2-10     activities;
2-11                 (2)  alter a license to fit and dispense hearing
2-12     instruments with the intent to defraud;
2-13                 (3)  willfully make a false statement in an application
2-14     to the committee for a license, for a temporary training permit, or
2-15     for the renewal of a license;
2-16                 (4)  falsely impersonate any person licensed as a
2-17     fitter and dispenser of hearing instruments under this Act;
2-18                 (5)  offer or represent that the person is authorized
2-19     to fit and dispense hearing instruments, or use in connection with
2-20     the person's name any designation tending to imply that the person
2-21     is authorized to engage in the fitting and dispensing of hearing
2-22     instruments, if the person is not licensed under the provisions of
2-23     this Act;
2-24                 (6)  engage in the fitting and dispensing of hearing
2-25     instruments during the time the person's license shall be
2-26     cancelled, suspended, or revoked;
2-27                 (7)  dispense or fit a hearing instrument on any
 3-1     individual who has ordered the hearing instrument or device by
 3-2     mail, unless the person dispensing and fitting the hearing
 3-3     instrument or device is licensed under this Act or under Chapter
 3-4     381, Acts of the 68th Legislature, Regular Session, 1983 (Article
 3-5     4512j, Vernon's Texas Civil Statutes), and its subsequent
 3-6     amendments; or
 3-7                 (8)  offer for sale or sell [selling] hearing
 3-8     instruments by mail.
 3-9           (b)(1)  It is unlawful for any person not a licensed
3-10     dispenser of hearing instruments or a holder of a temporary
3-11     training permit or an apprentice permit provided in this Act, or a
3-12     licensed physician or surgeon to do any one act or thing or any
3-13     combination of acts or things named or described in this section.
3-14                 (2)  Any offer for sale or sale of a hearing instrument
3-15     in this state must include the fitting of the hearing device prior
3-16     to the sale.
3-17                 (3)  Nothing in this Act is intended to prohibit
3-18     advertising by mail or delivery of a hearing device by mail if the
3-19     fitting and sale were completed in this state.
3-20           SECTION 4.  Section 1.16A, Chapter 366, Acts of the 61st
3-21     Legislature, Regular Session, 1969 (Article 4566-1.16A(a), Vernon's
3-22     Texas Civil Statutes), is amended to read as follows:
3-23           Sec. 1.16A.  Surety bonding.  (a)  A sole proprietor,
3-24     partnership, corporation, or other legal entity regardless of
3-25     location, engaged in the sale or offer of sale or fitting and
3-26     dispensing of hearing instruments shall file a bond or a surety in
3-27     lieu of a bond in the amount of $10,000 with the committee
 4-1     conditioned on the promise to pay all:
 4-2                 (1)  taxes and contributions due to the state and
 4-3     political subdivisions of the state by the sole practitioner,
 4-4     partnership, corporation, or other legal entity; and
 4-5                 (2)  judgments that the sole practitioner, partnership,
 4-6     corporation, or other legal entity may be required to pay for
 4-7     negligently or improperly dispensing hearing instruments or for
 4-8     breaching a contract relating to the dispensing of hearing
 4-9     instruments.
4-10           SECTION 5.  Section 9, Chapter 381, Acts of the 68th
4-11     Legislature, Regular Session, 1983 (Article 4512j-9 Vernon's Texas
4-12     Civil Statutes), is amended by adding subdivisions (e) and (f) to
4-13     read as follows:
4-14           (e)  A licensed hearing aid fitter and dispenser or licensed
4-15     audiologist may not offer for sale or sell a hearing instrument in
4-16     this state without including the fitting of the hearing device
4-17     prior to the sale.
4-18           (f)  Nothing in this Act is intended to prohibit advertising
4-19     by mail or delivery of a hearing device by mail if the fitting and
4-20     sale were completed in this state.
4-21           SECTION 6.  This Act takes effect September 1, 1999.
4-22           SECTION 7.  The importance of this legislation and the
4-23     crowded condition of the calendars in both houses create an
4-24     emergency and an imperative public necessity that the
4-25     constitutional rule requiring bills to be read on three several
4-26     days in each house be suspended, and this rule is hereby suspended.