HBA-NMO H.B. 3415 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3415 By: Van de Putte Public Health 4/5/1999 Introduced BACKGROUND AND PURPOSE Current law does not regulate the sale of hearing aids through the Internet or from out-of-state mail order companies. H.B. 3415 prohibits a person from offering for sale or selling hearing instruments by mail and provides that an offer for sale or sale of a hearing instrument in this state must include the fitting of the hearing device prior to sale. This bill also requires a legal entity engaged in the sale or offer of sale of hearing instruments, regardless of location, to file a bond or a surety in lieu of a bond in the amount of $10,000 with the State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments conditioned on the promise to pay all required taxes, contributions, and judgments. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 4566-1.01, V.T.C.S., by adding Subdivision (16), as follows: (16) Defines "mail order sales" as the transfer of title or of the right to use by lease, bailment, or any other contract from any person whose primary business is the sale of hearing instruments, and who is located in a state of the United States other than this state. SECTION 2. Makes no change. SECTION 3. Amends Article 4566-1.15, V.T.C.S., to provide that it is unlawful for any person to offer for sale or sell, rather than sell, hearing instruments by mail. Provides that any offer for sale or sale of a hearing instrument in this state must include the fitting of the hearing device prior to the sale. Provides that nothing in this Act is intended to prohibit advertising by mail or delivery of a hearing device by mail if the fitting and sale were completed in this state. SECTION 4. Amends Article 4566-1.16A(a), V.T.C.S., to require a legal entity engaged in the sale or offer of sale of hearing instruments, regardless of location, to file a bond or a surety in lieu of a bond in the amount of $10,000 with the State Committee of Examiners in the Fitting and Dispensing of Hearing Instruments conditioned on the promise to pay all required taxes, contributions, and judgments. SECTION 5. Amends Article 4512j-9, V.T.C.S., by adding subdivisions (e) and (f) to make conforming changes. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause.