1 South Carolina General Assembly 2 115th Session, 2003-2004 3 4 S. 317 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Senators Elliott, Rankin, Short, Reese and Giese 10 Document Path: l:\council\bills\nbd\11169ac03.doc 11 Companion/Similar bill(s): 380 12 13 Introduced in the Senate on February 4, 2003 14 Introduced in the House on May 21, 2003 15 Last Amended on June 3, 2003 16 Currently residing in conference committee 17 18 Summary: Interstate bulk prescription program established 19 20 21 HISTORY OF LEGISLATIVE ACTIONS 22 23 Date Body Action Description with journal page number 24 2/4/2003 Senate Introduced and read first time SJ-4 25 2/4/2003 Senate Referred to Committee on Medical Affairs SJ-4 26 5/19/2003 Senate Committee report: Favorable with amendment Medical Affairs SJ-8 27 5/20/2003 Senate Amended SJ-25 28 5/20/2003 Senate Read second time SJ-25 29 5/21/2003 Senate Read third time and sent to House SJ-19 30 5/21/2003 House Introduced, read first time, placed on calendar without reference HJ-51 31 5/27/2003 House Debate adjourned HJ-22 32 5/27/2003 House Read second time HJ-338 33 5/28/2003 House Debate adjourned until Thursday, May 29, 2003 HJ-23 34 5/29/2003 House Debate adjourned until Tuesday, June 3, 2003 HJ-14 35 6/3/2003 House Debate adjourned HJ-66 36 6/3/2003 House Amended HJ-129 37 6/3/2003 House Read third time and returned to Senate with amendments HJ-147 38 6/5/2003 Senate Non-concurrence in House amendment SJ-306 39 6/5/2003 House House insists upon amendment and conference committee appointed Reps. McGee, 40 Cobb-Hunter and White HJ-174 41 1/13/2004 Senate Conference committee appointed Sens. Smith, Peeler, Elliott SJ-48 42 43 44 VERSIONS OF THIS BILL 45 46 2/4/2003 47 5/19/2003 48 5/20/2003 49 5/21/2003 50 6/3/2003 51 1 Indicates Matter Stricken 2 Indicates New Matter 3 4 AMENDED--NOT PRINTED IN THE HOUSE 5 Amt. No. 1 (Doc. Path Council\swb\5571cm03) 6 June 3, 2003 7 8 S. 317 9 10 Introduced by Senators Elliott, Rankin, Short, Reese and Giese 11 12 S. Printed 5/21/03--H. 13 Read the first time May 21, 2003. 14 15

1 [317-1] 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 12 1976, BY ADDING ARTICLE 5 TO CHAPTER 6, TITLE 44 SO 13 AS TO CREATE THE INTERSTATE BULK PRESCRIPTION 14 DRUG PROGRAM WITH NEIGHBORING STATES TO 15 PROVIDE PRESCRIPTION DRUGS AT A REDUCED COST 16 TO SENIOR AND DISABLED RESIDENTS WHO DO NOT 17 HAVE PRESCRIPTION DRUG COVERAGE. 18 Amend Title To Conform 19 20 Whereas, tens of thousands of senior and disabled South 21 Carolinians have no prescription drug insurance coverage and are 22 unable to keep pace with the skyrocketing cost of prescription 23 drugs which are rising at the rate of twenty percent, or more, 24 annually; and 25 26 Whereas, many thousands of other senior and disabled South 27 Carolinians are losing their employer-provided health insurance 28 coverage as soon as they reach sixty-five years of age and become 29 eligible for Medicare coverage; and 30 31 Whereas, still many hundreds of South Carolinians are seeing their 32 deductibles double, and their health insurance premiums triple, 33 mainly because of the rapidly increasing cost of prescription drugs; 34 and 35 36 Whereas, joining with neighboring states to form a bulk buying 37 program for prescription drugs would provide South Carolina’s 38 seniors and disabled residents without prescription coverage a 39 resource for obtaining prescription drugs at a reduced cost. Now, 40 therefore, 41

1 [317] 1 1 Be it enacted by the General Assembly of the State of South 2 Carolina: 3 4 SECTION 1. Chapter 6, Title 44 of the 1976 Code is amended by 5 adding: 6 7 “Article 5 8 9 The South Carolina Retirees and Individuals 10 Pooling Together for Savings Act 11 12 Section 44-6-610. This article may be cited as the ‘South 13 Carolina Retirees and Individuals Pooling for Savings Act’. 14 15 Section 44-6-620. For purposes of this article: 16 (1) ‘Department’ means the Department of Health and Human 17 Services. 18 (2) ‘Prescription drugs’ means outpatient prescription drugs 19 that have been approved as safe and effective by the United States 20 Food and Drug Administration including insulin syringes, insulin 21 needles, and insulin. ‘Prescription drugs’ do not include 22 experimental drugs and over-the-counter pharmaceutical products. 23 (3) ‘Program’ means the South Carolina Retirees and 24 Individuals Polling Together for Savings (SCRIPTS) program 25 created pursuant to this article. 26 27 Section 44-6-630. There is created within the Department of 28 Health and Human Services the South Carolina Retirees and 29 Individuals Pooling Together for Savings (SCRIPTS) program. 30 The program must combine the purchasing power of all South 31 Carolina citizens sixty-five years of age and older who enroll in 32 the program to reduce their prescription drug costs. Where 33 possible, without violation of federal law, the department shall 34 combine negotiating power for the program with negotiating 35 power for pharmaceutical pricing and rebates which may exist now 36 or in the future. 37 38 Section 44-6-640. (A) This program must be administered by 39 the Department of Health and Human Services. The department 40 may designate, or enter into contracts with, other entities 41 including, but not limited to, other states, other governmental 42 purchasing pools, and nonprofit organizations to assist in the 43 administration of this program.

1 [317] 2 1 (B) By December 30, 2003, the department must submit a 2 program implementation and administration plan for review by the 3 State Budget and Control Board. The plan must include: 4 (1) procedures for program enrollment; 5 (2) requirements for program participation; and 6 (3) annual program enrollment fees that must be calculated 7 to pay all additional costs incurred by the department in the 8 administration of the program. 9 (C) Upon review of the State Budget and Control Board, the 10 program may be implemented as soon as practicable. 11 (D) When requested by the department, other state agencies 12 shall provide assistance or information necessary for the 13 administration of this program. 14 15 Section 44-6-650. A person eligible to participate in this 16 program must: 17 (1) have attained the age of sixty-five years; 18 (2) have resided in South Carolina at least six consecutive 19 months before enrolling in the program; and 20 (3) not be eligible for Medicaid prescription benefits. 21 22 Section 44-6-660. (A) The department shall maintain data to 23 allow evaluation of the cost effectiveness of the program. 24 (B) Beginning with the 2005 regular session of the General 25 Assembly, no later than thirty days before the convening of each 26 regular session, the department shall submit an annual report to the 27 Governor, the Chairman of the House Ways and Means 28 Committee, and the Chairman of the Senate Finance Committee 29 summarizing enrollment, financial information, and any other 30 information needed to evaluate the costs and benefits of the 31 program. 32 33 Section 44-6-670. (A) The department may seek waivers of 34 any federal laws, regulations, or rules necessary to implement this 35 program. 36 (B) The department may promulgate regulations necessary for 37 the administration of this program. 38 39 Section 44-6-680. The program must be funded entirely from 40 annual enrollment fees collected from program participants.” 41 42 SECTION 2. Chapter 25, Title 40 of the 1976 Code is amended to 43 read:

1 [317] 3 1 “CHAPTER 25 2 3 The Practice Of Specializing In Hearing Aids 4 5 Section 40-25-10. This chapter may be cited as the ‘Practice of 6 Specializing in Hearing Aids Act’. 7 Section 40-25-20. As used in this chapter, unless the context 8 requires otherwise: 9 (1) ‘Department’ means the Department of Health and 10 Environmental Control. 11 (2) ‘Commission’ means the State Commission for Hearing 12 Aid Specialists. 13 (3) ‘License’ means a license issued by the department under 14 this chapter to hearing aid specialists. 15 (4) ‘Temporary permit’ means a permit issued while the 16 applicant is in training to become a licensed hearing aid specialist. 17 (5) ‘Hearing aid’ means an acceptable wearable instrument or 18 device designated or offered to aid or compensate for impaired 19 human hearing and parts, attachments, or accessories, including 20 earmold, but excluding batteries and cords. 21 (6) ‘Practice of specializing in hearing aids’ means the 22 measurement of human hearing by an audiometer and by other 23 established means solely for fitting, making selections, 24 adaptations, or sale of hearing aids. It also includes the making of 25 impressions for earmolds. 26 (7) ‘Sell’ or ‘sale’ means the transfer of title or of the right to 27 use by lease, bailment, or other contract, excluding wholesale 28 transactions with distributors or specialists. 29 (8) ‘Hearing aid specialist’ means an individual licensed under 30 this chapter to engage in the practice of specializing in hearing 31 aids. 32 (9) ‘Audiologist’ means an individual licensed by the State 33 Board of Examiners in Speech Pathology and Audiology as an 34 audiologist. 35 (10) ‘Otolaryngologist’ means a licensed physician specializing 36 in ear, nose, and throat. 37 38 Section 40-25-30. The powers and duties of the department are 39 to: 40 (1) authorize disbursements necessary to carry out this chapter; 41 (2) supervise issuance of licenses “by experience” and 42 administer qualifying examinations to test the knowledge and 43 proficiency of applicants licensed by examination;

1 [317] 4 1 (3) register persons who apply to the department and are 2 qualified to engage in the practice of specializing in hearing aids; 3 (4) purchase and maintain or rent audiometric equipment and 4 other facilities necessary to carry out the examination of 5 applicants; 6 (5) issue and renew licenses; 7 (6) suspend or revoke licenses or require that refunds be made; 8 (7) designate the time and place for examining applicants; 9 (8) enforce this chapter; 10 (9) promulgate and publish regulations not inconsistent with 11 the laws of this State and necessary to carry out this chapter, 12 including the establishment of licensing fees; 13 (10) appoint or employ subordinate employees; 14 (11) retain funds received for administration of the program; 15 (12) require the periodic inspection of audiometric testing 16 equipment and carry out the periodic inspection of facilities of 17 persons who engage in the practice of specializing in hearing aids. 18 (13) appoint members of the commission and other individuals 19 who are not audiologists to conduct and supervise the written and 20 practical examinations; 21 22 Section 40-25-40. (A) A Commission of Hearing Aid 23 Specialists is established to guide, advise, and make 24 recommendations to the department. 25 (B)(1) Members of the commission must be residents of the 26 State. The commission consists of: 27 (a) five licensed hearing aid specialists, and each must be 28 a principal dealer of a different manufacturer’s hearing aid who are 29 not audiologists; 30 (b) one otolaryngologist; 31 (c) one representative of the general public who is a user 32 of a hearing aid, is not associated with a hearing aid specialist or 33 manufacturer, and is not a member of the other groups or 34 professions required to be represented on the commission; 35 (d) the State Health Officer or his designee. 36 (2) Each hearing aid specialist on the commission must have 37 no less than five years experience under this chapter. 38 (C) Members of the commission in subsection (B)(1)(a) 39 through (d) must be appointed by the Governor with the advice 40 and consent of the Senate. Before appointing the member in 41 subsection (B)(1)(d) the Governor shall invite recommendations 42 from the South Carolina Hearing Aid Society, the Commission on 43 Aging, the Department of Consumer Affairs, the Department of

1 [317] 5 1 Education, the Department of Vocational Rehabilitation, the Board 2 of Commissioners of the School for the Deaf and the Blind, and 3 other agencies or organizations which might have knowledge of 4 qualified citizens to serve on the commission. The term of each 5 member is four years. Before a member’s term expires the 6 Governor, with the advice and consent of the Senate, shall appoint 7 a successor to assume his duties at the expiration of the term. A 8 vacancy must be filled in the manner of the original appointment. 9 The members annually shall designate one member as chairman 10 and another as secretary. No member of the commission who has 11 served two or more full terms may be reappointed until at least one 12 year after the expiration of his most recent full term of office. 13 (D) Commission members may receive per diem and mileage 14 provided by law for members of state boards, committees, and 15 commissions for each day actually spent in the duties of the 16 commission. No member may receive more than fifteen days per 17 diem in one fiscal year. 18 19 Section 40-25-50. The commission shall: 20 (1) advise the department in all matters relating to this chapter; 21 (2) prepare the examinations required by this chapter for the 22 department; 23 (3) assist the department in carrying out this chapter; 24 (4) keep a record of its proceedings and a register of persons 25 licensed under this chapter; 26 (5) make a report each year to the Governor of all its official 27 acts during the preceding year; 28 (6) meet not less than once each year at a place, day, and hour 29 determined by the commission and meet at other times and places 30 requested by the department. 31 32 Section 40-25-60. (A) No person may engage in the practice 33 of specializing in hearing aids or display a sign or in another way 34 advertise or represent himself as a person who engages in the 35 practice of specializing in hearing aids after January 1, 1972, 36 unless he holds an unsuspended, unrevoked license issued by the 37 department under this chapter. The license number must be listed 38 in an advertisement or a representation. The license must be 39 posted conspicuously in his office or place of business. Duplicate 40 licenses must be issued by the department to valid license holders 41 operating more than one office without additional payment. A 42 license under this chapter confers upon the holder the right to

1 [317] 6 1 perform only those hearing tests necessary to select, fit, and sell 2 hearing aids. 3 (B) Nothing in this chapter prohibits a corporation, partnership, 4 trust, association, or like organization maintaining an established 5 business address from engaging in the business of selling or 6 offering for sale hearing aids at retail without a license, if it 7 employs only properly licensed natural persons in the direct sale 8 and fitting of the products. 9 10 Section 40-25-70. (A) A person who engages in the practice of 11 specializing in hearing aids shall deliver to a person supplied with 12 a hearing aid a receipt which contains the licensee’s signature and 13 business address, the number of his license, specifications as to the 14 make and model of the hearing aid furnished, and full terms of the 15 sale clearly stated. If an aid which is not new is sold, the receipt 16 and its container must be marked clearly as “used” or 17 “reconditioned”, whichever is applicable, with terms of guarantee, 18 if any. 19 (B) The purchaser must be advised at the outset of his 20 relationship with the hearing aid specialist that an examination or a 21 representation is not an examination, diagnosis, or prescription by 22 a person licensed to practice medicine in this State. 23 (C) A person engaged in the practice of specializing in hearing 24 aids shall comply with federal regulations, 21 CFR 801, or related 25 amendments to the regulations. He may not sell a hearing aid to a 26 prospective user under eighteen years of age unless he presents to 27 the dealer a written statement signed by a licensed physician 28 stating that the patient’s hearing loss has been evaluated medically, 29 and the patient may be considered a candidate for a hearing aid. 30 This evaluation must have taken place within the preceding six 31 months. 32 33 Section 40-25-80. (A) This chapter does not: 34 (1) prevent a person from engaging in the practice of 35 measuring human hearing for the purpose of selection of hearing 36 aids if the person or organization employing him does not sell 37 hearing aids or their accessories except for earmolds used only for 38 audiologic evaluation; 39 (2) apply to a physician or audiologist licensed to practice in 40 South Carolina; 41 (3) apply to an audiologist or another person while he is 42 engaged in the practice of recommending hearing aids if his 43 practice is part of the academic curriculum of an accredited

1 [317] 7 1 institution of higher education or part of a program conducted by a 2 public, charitable institution or nonprofit organization which 3 primarily is supported by voluntary contributions, if this 4 organization does not sell hearing aids or accessories. 5 (B) On the selling and fitting of hearing aids located in the 6 temples of glasses, licensees may not make facial measurements or 7 adapt, fit, or adjust lenses or frames under this chapter, except for 8 the replacement of temples by those incorporating hearing aid 9 components, unless legally qualified to do so under other South 10 Carolina statutes. 11 12 Section 40-25-90. For six months after January 1, 1972, an 13 applicant for a license must be issued one without examination if 14 the applicant: 15 (1) principally has been engaged as a hearing aid specialist for at 16 least two years within a period of five years immediately before 17 January 1, 1972; 18 (2) is a resident of South Carolina and is of good moral 19 character; 20 (3) is twenty-one years of age or older; 21 (4) is free of contagious or infectious disease. 22 23 Section 40-25-100. (A) The department shall register each 24 applicant without discrimination or examination who satisfactorily 25 passes the experience requirement in Section 40-25-90 or passes an 26 examination in Section 40-25-110 and upon the applicant’s 27 payment of a fee set by the department through regulation shall 28 issue to the applicant a license signed by the department. The 29 license is effective for one year and expires one year after it is 30 issued. 31 (B) When the commission determines that another state or 32 jurisdiction has requirements equivalent to or higher than those in 33 effect pursuant to this chapter and that the state or jurisdiction has 34 a program equivalent to or stricter than the program for 35 determining whether applicants pursuant to this chapter are 36 qualified to dispense and fit hearing aids, the department may issue 37 certificates of endorsement to applicants who hold current 38 unsuspended and unrevoked certificates or licenses to fit and sell 39 hearing aids in the other state or jurisdiction if the applicant is 40 twenty-one years of age. Applicants for certificate of endorsement 41 are not required to submit to or undergo a qualifying examination, 42 other than the payment of fees pursuant to this chapter. The holder 43 of a certificate of endorsement must be registered in the same

1 [317] 8 1 manner as licensees. The fee for issuance of a license based upon 2 an initial certificate of endorsement is the same as the fee for an 3 initial license. Fees, grounds for renewal, and procedures for the 4 suspension and revocation of certificates of endorsement and 5 licenses are the same. 6 7 Section 40-25-110. (A) An applicant may obtain a license by 8 successfully passing a qualifying examination if he: 9 (1) is at least twenty-one years of age; 10 (2) has an education equivalent to a four-year course in an 11 accredited high school. 12 (B) [Reserved] 13 (C) An applicant for license by examination shall appear at a 14 time, place, and before persons the department may designate to be 15 examined by means of written and practical tests in order to 16 demonstrate that he is qualified to engage in the practice of 17 specializing in hearing aids. The examination administered as 18 directed by the department constituting standards for licensing 19 must not be conducted so that college training is required to pass 20 the examination. Nothing in this examination may imply that the 21 applicant possess the degree of medical competence normally 22 expected of physicians. If an applicant fails the practical portion 23 of the examination, he may appeal to the commission. 24 (D) The department shall give examinations at least once a year. 25 26 Section 40-25-120. (A) A person who fulfills the requirements 27 regarding age and education in Section 40-25-110 may obtain a 28 temporary permit upon application to the department. Previous 29 experience or a waiting period is not required to obtain a 30 temporary permit. 31 (B) Upon receiving an application under this section 32 accompanied by a fee set by the department through regulation, the 33 department shall issue a temporary permit which entitles the 34 applicant to engage in the fitting and sale of hearing aids for one 35 year. A person holding a valid hearing aid specialist license shall 36 supervise and train the applicant, maintain adequate personal 37 contact, and make quarterly reports to the department about the 38 performance of the person holding the temporary permit. 39 (C) If a person who holds a temporary permit under this section 40 has not passed successfully the licensing examination within one 41 year from the date of issuance, the temporary permit, may be 42 renewed or the applicant may be permitted to reapply at a later 43 date.

1 [317] 9 1 Section 40-25-130. The qualifying examination in Section 2 40-25-110 must be designated to demonstrate the applicant’s 3 adequate technical qualifications by: 4 (1) tests of knowledge in the following areas as they pertain to 5 the practice of specializing in hearing aids: 6 (a) basic physics of sound; 7 (b) anatomy and physiology of the ear; 8 (c) function of hearing aids; 9 (2) practical tests of proficiency in the following techniques as 10 they pertain to the fitting of hearing aids: 11 (a) pure tone audiometry, including air conduction testing and 12 bone conduction testing; 13 (b) live voice or recorded voice speech audiometry, including 14 speech reception threshold testing and speech discrimination 15 testing; 16 (c) masking when indicated; 17 (d) recording and evaluation of audiograms and speech 18 audiometry to determine proper selection and adaptation of a 19 hearing aid; 20 (e) taking earmold impressions. 21 22 Section 40-25-140.(A) A person who holds a license shall notify 23 the department in writing of the regular address of the place where 24 he engages or intends to engage in the practice of specializing in 25 hearing aids. 26 (B) The department shall keep a record of the place of business 27 of licensees. 28 (C) Notice required to be given by the department to a person 29 who holds a license must be mailed to him by certified mail at the 30 address of the last place of business of which he has notified the 31 department. 32 33 Section 40-25-150. (A) A person who engages in the practice of 34 specializing in hearing aids before the license expiration date shall 35 pay to the department a fee set by the department through 36 regulation for issuance or a renewal of his license. The license 37 must be posted conspicuously in his office or place of business. 38 Where more than one office is operated by the licensee, duplicate 39 licenses must be issued by the department for posting in each 40 location. A thirty-day grace period is allowed after the license 41 expiration date during which licenses may be renewed on payment 42 of a fee set by the department through regulation. After expiration 43 of the grace period, the department may renew the certificates

1 [317] 10 1 upon payment of a fee set by the department through regulation. 2 No person who applies for renewal whose license has expired is 3 required to submit to examination as a condition to renewal, if the 4 renewal application is made within two years from the date of the 5 expiration. 6 (B) A licensee or temporary permit holder shall maintain a 7 progressing level of professional competence by participation 8 during the previous year of licensing in educational programs 9 designed to keep the licensee informed of changes, current 10 practices, and developments pertaining to the fitting of hearing 11 aids and rehabilitation as appropriate to hearing aid use. 12 (C) The licensee annually shall submit to the commission proof 13 of having participated in a minimum of eight hours of continuing 14 education during the previous year of licensing. The requirement 15 may be fulfilled by attending and participating in training activities 16 approved by the commission and those accredited by the 17 International Hearing Society, unless disapproved by the 18 commission. 19 (D) A person or organization desiring to conduct continuing 20 education training programs shall submit the programs to the 21 commission for approval before presentation. The commission 22 shall develop procedures for submitting these requests and for 23 approving or disapproving them. 24 (E) Failure to complete the minimum educational requirements 25 results in a license suspension until the requirements are met. The 26 commission, upon sufficient cause shown by the licensee, may 27 allow the licensee to make up the necessary hours during the next 28 year of licensing. The make-up allowance does not waive the full 29 annual requirements for continued education. 30 31 Section 40-25-160. (A) A person wishing to make a complaint 32 against a licensee under this chapter shall file a written complaint 33 with the department within one year from the date of the action 34 upon which the complaint is based. If the department determines 35 the charges made in the complaint are sufficient to warrant a 36 hearing to determine whether the license issued under this chapter 37 must be suspended or revoked, it shall make an order fixing a time 38 and place for hearing and require the licensee complained against 39 to appear and defend against the complaint. The order and copy of 40 the complaint must be served upon the licensee at least thirty days 41 before the date set for hearing, personally or by registered mail 42 sent to the licensee’s last known address. Continuances or 43 adjournment of hearing date must be made if for good cause. At

1 [317] 11 1 the hearing the licensee complained against may be represented by 2 counsel. The licensee complained against and the department may 3 compel the attendance of witnesses by subpoenas issued by the 4 department under its seal. 5 (B) A person registered under this chapter may have his license 6 revoked or suspended for a fixed period or be required to make a 7 refund by the department for: 8 (1) conviction of a felony or misdemeanor involving moral 9 turpitude. The record of conviction or a certified copy, certified by 10 the clerk of court or by the judge in whose court the conviction is 11 had, is conclusive evidence of the conviction; 12 (2) procuring of license by fraud or deceit practiced upon the 13 department; 14 (3) unethical conduct, including, but not limited to: 15 (a) obtaining a fee or making a sale by fraud or 16 misrepresentation; 17 (b) knowingly employing directly or indirectly a suspended 18 or unregistered person to perform work covered by this chapter; 19 (c) using or causing or promoting the use of advertising 20 matter, promotional literature, or testimonial, guarantee, warranty, 21 label, brand, insignia, or other representation, however 22 disseminated or published, which is misleading, deceptive, or 23 untruthful; 24 (d) advertising a particular model or type of hearing aid for 25 sale when purchasers or prospective purchasers responding to the 26 advertisement cannot purchase the advertised model or type, where 27 it is established that the purpose of the advertisement is to obtain 28 prospects for the sale of a different model or type than that 29 advertised; 30 (e) representing that the service or advice of a person 31 licensed to practice medicine will be used or made available in the 32 selection, fitting, adjustment, maintenance, or repair of hearing 33 aids when that is not true or using the words “doctor” or “clinic” or 34 similar words, abbreviations, or symbols which tend to connote the 35 medical profession when the use is not the case. No hearing aid 36 specialist who is not a licensed audiologist may represent himself 37 as a licensed audiologist in the practice of selling hearing aids; 38 (f) habitual intemperance; 39 (g) gross immorality; 40 (h) permitting another’s use of a license; 41 (i) advertising a manufacturer’s product or using a 42 manufacturer’s name or trademark which implies a relationship 43 with the manufacturer that does not exist;

1 [317] 12 1 (j) directly or indirectly giving or offering to give or 2 permitting or causing to be given money or anything of value to a 3 person who advises another in a professional capacity as an 4 inducement to influence him or have him influence others to 5 purchase or contract to purchase products sold or offered for sale 6 by a hearing aid specialist; 7 (k) stating or implying that the use of a hearing aid will 8 restore or preserve hearing or prevent or retard progression of 9 hearing impairment; 10 (4) conducting business while suffering from a contagious or 11 infectious disease; 12 (5) engaging in the practice of specializing in hearing aids 13 under a false name or alias with fraudulent intent; 14 (6) selling a hearing aid to a person who has not been given 15 tests utilizing appropriate established procedures and 16 instrumentation in fitting of hearing aids, except in cases of selling 17 replacement hearing aids or where it is medically impossible to 18 conduct routine testing; 19 (7) gross incompetence or negligence in fitting and selling 20 hearing aids; or 21 (8) violating this chapter. 22 (C) If a refund must be made under this section, the department 23 may suspend the license of the person required to make the refund 24 until it is made. 25 26 Section 40-25-170. (A) The final order of the department in 27 proceedings for the suspension or revocation of certificates of 28 registration are subject to review by the circuit court of Richland 29 County, the county in which the registrant has his principal place 30 of business, or the county in which the books and records of the 31 department are kept. Other final orders of the department under 32 this chapter are subject to review in the same courts. 33 (B) Appeals to the circuit court must be upon the original 34 records before the department, and the court in its discretion may 35 affirm, reverse, or modify an order made by the department. 36 37 Section 40-25-180. No person may: 38 (1) sell, barter, or offer to sell or barter a license; 39 (2) purchase or procure by barter a license with intent to use it as 40 evidence of the holder’s qualification to engage in the practice of 41 specializing in hearing aids; 42 (3) alter a license with fraudulent intent;

1 [317] 13 1 (4) use or attempt to use as a valid license a license which has 2 been purchased, fraudulently obtained, counterfeited, or materially 3 altered; 4 (5) wilfully make a false statement in an application for license 5 or application for renewal of license. 6 7 Section 40-25-190. A person violating this chapter is guilty of a 8 misdemeanor and, upon conviction, must be fined not more than 9 one hundred dollars or imprisoned not more than thirty days. 10 11 Hearing Instrument Specialists and Hearing Aid Fitters 12 13 Section 40 - 25 - 5. Unless otherwise provided for in this chapter, 14 Article 1, Chapter 1, Title 40 applies to Hearing Instrument 15 Specialists and Fitters. However, if there is a conflict between this 16 chapter and Article 1, Chapter 1, Title 40, the provisions of this 17 chapter control. 18 19 Section 40 - 25 - 10. (A) There is created the Board of Examiners 20 for Hearing Instrument Specialists and Fitters under the 21 administration of the Department of Labor, Licensing and 22 Regulation. The purpose of this board is to protect the public 23 through the administration and enforcement of this chapter and any 24 regulations promulgated under this chapter regulating the practice 25 of hearing instrument specialists and fitters. 26 (B) The Board of Examiners for Hearing Instrument Specialists 27 and Fitters consists of five hearing instrument specialists, each of 28 whom must have five years or more experience and hold a valid 29 license issued under this chapter, one otolaryngologist licensed 30 under Chapter 47, and one consumer member. Members must be 31 appointed by the Governor with the advice and consent of the 32 Senate. Nominations for appointment to the board may be 33 submitted to the Governor from a group, individual, or association 34 and must be considered in accordance with Section 40 - 1 - 45. 35 Members shall serve terms of four years and until a successor has 36 been appointed and qualifies. A member may not serve more than 37 two consecutive terms. A vacancy on the board must be filled for 38 the remainder of the unexpired term in the manner of the original 39 appointment. 40 (C) The Governor may remove a member of the board in 41 accordance with Section 1 - 3 - 240. 42 (D) A member of the board, before entering upon the discharge 43 of the duties of the office, shall take and file with the Secretary of

1 [317] 14 1 State, in writing, an oath to perform properly the duties of the 2 office as a member of the board and to uphold the Constitution of 3 this State and the United States. 4 5 Section 40 - 25 - 20. As used in this chapter: 6 (1) ‘Audioprosthologist’ means an individual licensed under 7 this chapter who has completed the audioprosthology coursework 8 and is currently certified by the National Institute for Hearing 9 Instrument Studies. 10 (2) ‘Board’ means the Board of Examiners for Hearing 11 Instrument Specialists and Fitters. 12 (3) ‘Department’ means the Department of Labor, Licensing 13 and Regulation. 14 (4) ‘Hearing Aid’ means an acceptable wearable instrument 15 or device designated or offered to aid or compensate for impaired 16 human hearing, including parts, attachments, and accessories, 17 which include earmold, cords, and batteries. 18 (5) ‘Hearing Aid Fitter’ means an individual licensed under 19 this chapter to engage in practice only under the supervision of a 20 licensed Hearing Instrument Specialist. 21 (6) ‘Hearing Instrument Specialist’ means an individual 22 licensed under this chapter who is currently board certified by the 23 National Board for Certification in Hearing Instrument Sciences. 24 (7) ‘IHS’ means the International Hearing Society. 25 (8) ‘License’ means a license issued by the board under this 26 chapter to practice as a hearing instrument specialist or fitter. 27 (9) ‘Specializing in hearing aids’ means the measurement of 28 human hearing by an audiometer and by other established means 29 solely for fitting, selecting, adapting, programming, or selling 30 hearing aids. It also includes making impressions for earmolds. 31 (10) ‘Temporary Permit’ means a permit issued to an 32 individual which would allow a person in training or a person 33 licensed in another jurisdiction to practice under the supervision of 34 a licensed hearing instrument specialist while completing the 35 license requirements set forth by the board. 36 37 Section 40 - 25 - 30. No person may specialize in hearing aids 38 without a license issued in accordance with this chapter. A hearing 39 aid fitter or temporary permit holder may only practice under the 40 supervision of a Hearing Instrument Specialist. However, as of 41 July 1, 2003, a person currently licensed to dispense hearing aids 42 in the State who provides proof of being certified as a Hearing 43 Instrument Specialist by the National Board for

1 [317] 15 1 Certification - Hearing Instrument Sciences must be issued a license 2 as a ‘Hearing Instrument Specialist’ without further examination. 3 Other persons who are currently licensed as of July 1, 2003, must 4 be issued a ‘Hearing Aid Fitter’ license and are authorized to 5 operate unsupervised for five years, at which time those 6 individuals must have become certified by the National Board for 7 Certification - Hearing Instrument Sciences or must be supervised 8 by a Hearing Instrument Specialist. 9 10 Section 40 - 25 - 50. (A) These fees must be assessed, collected, 11 and adjusted on behalf of the board by the Department of Labor, 12 Licensing and Regulation in accordance with this chapter and 13 Section 40 - 1 - 50(D): 14 (1) biennial license renewal fee; 15 (2) annual fee, temporary permit; 16 (3) license examination fee, written; 17 (4) license examination fee, practical; 18 (5) reinstatement of license fee. 19 (B) All fees are nonrefundable. 20 (C) A check which is presented to the board as payment for a 21 fee which the board is permitted to charge under this chapter and 22 which is returned unpaid may be cause for denial of a license or 23 for imposing a sanction authorized under this chapter or Section 24 40 - 1 - 120. 25 26 Section 40 - 25 - 60. (A)The board annually shall elect from 27 among its members a chairman, vice - chairman, and other officers 28 as the board determines necessary. The board shall adopt rules and 29 procedures reasonably necessary for the performance of its duties 30 and the governance of its operations and proceedings. 31 (B) The board shall meet quarterly to administer examinations 32 and conduct business on behalf of the board and at other times 33 upon the call of the chairman or a majority of the board. 34 (C) Three members of the board constitute a quorum; however, 35 if there is a vacancy on the board, a majority of the members 36 serving constitutes a quorum. 37 (D) Any business conducted by the board must be by a positive 38 majority vote. For purposes of this subsection, ‘positive majority 39 vote’ means a majority vote of the entire membership of the board, 40 reduced by any vacancies existing at the time. 41 (E) The board may have and use an official seal bearing the 42 name of the board.

1 [317] 16 1 Section 40 - 25 - 70. In addition to the powers and duties 2 enumerated in Sections 40 - 1 - 70 through 40 - 1 - 100, the board shall: 3 (1) regulate the issuance of Hearing Instrument Specialist, 4 Hearing Aid Fitters licenses and temporary permits; 5 (2) promulgate regulations and establish policies and 6 procedures necessary to carry out this chapter; and 7 (3) discipline licensees in any manner permitted by this chapter 8 or under Sections 40 - 1 - 110 through 40 - 1 - 150. 9 10 Section 40 - 25 - 80. For the purpose of conducting an 11 investigation or proceeding under this chapter, the board or a 12 person designated by the board may subpoena witnesses, take 13 evidence, and require the production of any documents or records 14 which the board considers relevant to the inquiry. 15 16 Section 40 - 25 - 100. Restraining orders and cease and desist 17 orders must be issued in accordance with Section 40 - 1 - 100. 18 19 Section 40 - 25 - 110. In addition to grounds for disciplinary action 20 as set forth in Section 40 - 1 - 110 and in accordance with Section 21 40 - 25 - 120, the board may take disciplinary action against a 22 licensee who: 23 (1) violates federal or state laws relating to the practice of 24 specializing in hearing aids; 25 (2) violates a provision of this chapter or an order issued 26 under this chapter or a regulation promulgated under this chapter; 27 (3) fraudulently or deceptively attempts to use, obtain, alter, 28 sell, or barter a license; 29 (4) aids or abets a person who is not a licensed hearing 30 instrument specialist or hearing aid fitter in illegally engaging in 31 the practice of specializing in hearing aids within this State; 32 (5) participates in the fraudulent procurement or renewal of 33 a license for himself or another person or allows another person to 34 use his license; 35 (6) commits fraud or deceit in the practice of specializing in 36 hearing aids including, but not limited to: 37 (a) using or promoting or causing the use of any 38 misleading deceiving or untruthful advertising matter, promotional 39 literature, testimonial guarantee, warranty, label, brand insignia, or 40 any other representation; 41 (b) wilfully making or filing a false report or record in the 42 practice of specializing in hearing aids or in satisfying 43 requirements of this chapter;

1 [317] 17 1 (c) submitting a false statement to collect a fee or 2 obtaining a fee through fraud or misrepresentation; 3 (7) commits an act of dishonest, immoral, or unprofessional 4 conduct while engaging in the practice of specializing in hearing 5 aids including, but not limited to: 6 (a) engaging in illegal, incompetent, or negligent practice 7 of specializing in hearing aids; 8 (b) providing professional services while mentally 9 incompetent or under the influence of alcohol or drugs; 10 (c) promoting the sale of devices to a person who cannot 11 reasonably be expected to benefit from the devices; 12 (8) is convicted of or pleads guilty or nolo contendere to a 13 felony or violation of a federal, state, or local drug law; 14 (9) is disciplined by a licensing or disciplinary authority of 15 another state, country, or nationally recognized professional 16 organization or convicted of or disciplined by a court of any state 17 or country for an act that would be grounds for disciplinary action 18 under this section; 19 (10) violates the code of ethics promulgated in regulation by 20 the board. 21 22 Section 40 - 25 - 115. (A) The board has jurisdiction over the 23 actions of licensees and former licensees as provided for in Section 24 40 - 1 - 115. 25 (B)(1) Before dispensing a hearing aid, a licensee shall conduct 26 a hearing measurement including: 27 (a) pure tone audiometry; 28 (b) speech audiometry; 29 (c) hearing aid evaluation. 30 (2) A licensee shall deliver a receipt to the person being 31 supplied a hearing aid which contains the licensee’s signature, 32 business address, license number, specifications as to the make and 33 model of the hearing aid being furnished, and full terms of the sale 34 clearly stated. If no commercial office is located within the State, a 35 clear statement to that effect must be made on the receipt. If the 36 office is not open five days a week, the regular hours when 37 licensed persons are present to provide service must be noted on 38 the receipt. If an aid which is not new is sold, the receipt and the 39 aid’s container must be marked clearly as ‘used’ or 40 ‘reconditioned’, whichever is applicable, with terms of the 41 guarantee, if any. 42 (3) A licensee may not sell a hearing aid to a prospective user 43 under eighteen years of age unless the patient presents to the

1 [317] 18 1 licensee a written statement signed by a licensed physician stating 2 that the patient’s hearing loss has been evaluated medically, and 3 the patient may be considered a candidate for a hearing aid. This 4 evaluation must have taken place within the preceding six months. 5 (4) A licensee must advise a prospective user that an 6 examination by a hearing instrument specialist is not an 7 examination, diagnosis, or prescription by a physician licensed to 8 practice medicine under chapter 47. 9 10 Section 40 - 25 - 120. Upon a determination by the board that one 11 or more of the grounds for discipline of a licensee exists, as 12 provided for in Section 40 - 25 - 110 or 40 - 1 - 110, the board, in 13 addition to the actions provided for in Section 40 - 1 - 120, may 14 impose a fine of not more than one thousand dollars. 15 16 Section 40 - 25 - 130. The board may deny licensure to an 17 applicant based on the grounds for which the board may take 18 disciplinary action against a licensee. 19 20 Section 40 - 25 - 140. A license may be denied based on a person’s 21 prior criminal record only as provided for in Section 40 - 1 - 140. 22 23 Section 40 - 25 - 150. A licensee who is under investigation for 24 any of the disciplinary grounds provided for in Section 40 - 25 - 110 25 or Section 40 - 1 - 110 voluntarily may surrender his license to the 26 board in accordance with Section 40 - 1 - 150. 27 28 Section 40 - 25 - 160. A person aggrieved by an action of the board 29 may seek review of the decision in accordance with Section 30 40 - 1 - 160. 31 32 Section 40 - 25 - 170. A person found in violation of this chapter or 33 regulations promulgated under this chapter may be required to pay 34 costs associated with the investigation and prosecution of the case 35 in accordance with Section 40 - 1 - 170. 36 37 Section 40 - 25 - 180. All costs and fines imposed pursuant to this 38 chapter must be paid in accordance with and are subject to the 39 collection and enforcement provisions of Section 40 - 1 - 180. 40 41 Section 40 - 25 - 190. Communications made in connection with 42 an investigation or hearing relevant to a complaint against a 43 licensee are privileged as provided for in Section 40 - 1 - 190.

1 [317] 19 1 Section 40 - 25 - 200. A person who practices or offers to practice 2 specializing in hearing aids in this State in violation of this chapter 3 or a regulation promulgated under this chapter or who violates any 4 other provision of this chapter or a regulation promulgated under 5 this chapter is guilty of a misdemeanor and, upon conviction, must 6 be fined not more than one thousand dollars or imprisoned for not 7 more than six months, or both. 8 9 Section 40 - 25 - 210. In addition to initiating a criminal 10 proceeding for a violation of this chapter, the board also may seek 11 civil and injunctive relief pursuant to Section 40 - 1 - 210. 12 13 Section 40 - 25 - 220. (A) A license must be issued independently 14 either as a Hearing Instrument Specialist or Hearing Aid Fitter. 15 (B) To be licensed by the board as a Hearing Instrument 16 Specialist an individual must: 17 (1) currently hold a valid certificate of board certification 18 from the National Board for Certification in Hearing Instrument 19 Sciences; 20 (2) have an education equivalent to a four - year course in an 21 accredited high school; and 22 (3) have passed an examination approved by the board. 23 (C) To be licensed by the board as a Hearing Aid Fitter an 24 individual must: 25 (1) have on file with the board the name and address of a 26 currently licensed hearing instrument specialist who will be 27 responsible for the supervision of the activities covered by the 28 individual’s hearing aid fitter license; 29 (2) have an education equivalent to a four - year course in an 30 accredited high school; and 31 (3) have passed an examination approved by the board. 32 (D) To be issued a temporary permit by the board an individual 33 must complete an application and pay the required fee. A 34 temporary permit is valid for twelve months and may be renewed 35 for twelve months at the discretion of the board. During the 36 temporary permit period, the permit holder must pass an 37 examination approved by the board. 38 39 Section 40 - 25 - 230. An individual applying for a license as a 40 hearing instrument specialist or a hearing aid fitter must file a 41 notarized application with the board; a renewal form is not 42 required to be notarized. The appropriate fee and documentation of

1 [317] 20 1 eligibility as prescribed by the board must accompany each 2 application. 3 4 Section 40 - 25 - 240. (A) If an applicant satisfies all the licensure 5 requirements provided for in this chapter, the board shall issue a 6 license to the applicant. A license is a personal right and not 7 transferable, and the issuance of a license is evidence that the 8 person is entitled to all rights and privileges of a hearing 9 instrument specialist or hearing aid fitter while the license remains 10 current and unrestricted. However, the license is the property of 11 the State and upon suspension or revocation immediately must be 12 returned to the board. 13 (B) A person licensed under this chapter must display the 14 document in a prominent and conspicuous place in the person’s 15 place of business or place of employment. 16 (C) Only a person licensed under this chapter may use the title 17 ‘Hearing Instrument Specialist’ or ‘Hearing Aid Fitter’. 18 (D) A duplicate license may be issued by the board upon 19 payment of the fee provided for in Section 40 - 25 - 50. 20 21 Section 40 - 25 - 250. The board may issue a license to a person 22 who holds a current unrestricted hearing instrument specialist 23 license in another state if the standards for licensure in that state 24 are at least the substantial equivalent to the licensing standards 25 provided for in this chapter and the person satisfies any other 26 requirements the board may prescribe including, but not limited to, 27 continuing education requirements. 28 29 Section 40 - 25 - 260. As a condition of license renewal, a hearing 30 instrument specialist or hearing aid fitter must satisfactorily 31 complete at least sixteen hours continuing education per license 32 period. The requirement may be fulfilled by attending and 33 participating in training activities approved by the board pursuant 34 to regulations promulgated by the board. 35 36 Section 40 - 25 - 270. (A) A hearing instrument specialist license 37 or hearing aid fitter license must be renewed biennially and expires 38 on December 31 of the second year. A temporary permit expires 39 twelve months from the date of issue and may, at the discretion of 40 the board, be renewed for one twelve - month period. 41 (B) To renew a license the individual shall: 42 (1) pay a renewal fee as provided for in Section 40 - 25 - 50;

1 [317] 21 1 (2) submit evidence of compliance with continuing 2 education requirements as provided for in Section 40 - 25 - 260. 3 (C) A license which was not renewed by December 31 is 4 invalid and only may be reinstated upon receipt of a renewal 5 application postmarked before February 1 and accompanied by the 6 biennial license fee and the reinstatement fee. 7 8 Section 40 - 25 - 290. The Board of Examiners for Hearing 9 Instrument Specialists and Hearing Aid Fitters may promulgate 10 regulations setting forth a code of ethics for persons licensed by 11 the board. 12 13 Section 40 - 25 - 300. This chapter does not apply to audiologists 14 licensed under Chapter 67 or to physicians licensed under Chapter 15 47. 16 17 Section 40 - 25 - 350. If a provision of this chapter or the 18 application of a provision to a person or circumstance is held 19 invalid, the invalidity does not affect other provisions or 20 applications of this chapter which can be given effect without the 21 invalid provision or application, and to this end the provisions of 22 this chapter are severable. 23 24 SECTION 3. The powers, duties, functions, and responsibilities 25 of the Department of Health and Environmental Control regarding 26 the ‘Practice of Specializing in Hearing Aids Act’ under Chapter 27 25, Title 40 of the 1976 Code are devolved upon the Department 28 of Labor, Licensing and Regulation, and the Commission for 29 Hearing Aid specialists shall act as a professional and occupational 30 licensing board for hearing aid specialists and fitters within the 31 Department of Labor, Licensing and Regulation. 32 33 SECTION 4. This act takes effect upon approval by the 34 Governor. 35 ----XX---- 36

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