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.