senate Bill S3354

Relates to special provisions for not-for-profit sales

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 01 / Feb / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 08 / Jan / 2014
    • REFERRED TO CONSUMER PROTECTION

Summary

Relates to special provisions for not-for-profit sales.

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Bill Details

Versions:
S3354
Legislative Cycle:
2013-2014
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd ยง802, Gen Bus L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3788
2009-2010: S5257

Sponsor Memo

BILL NUMBER:S3354

TITLE OF BILL: An act to amend the general business law, in relation to
special provisions of the not-for-profit sales

PURPOSE OR GENERAL IDEA OF BILL: This bill would repeal a portion of
section eight hundred two of the general business law to permit the
for-profit sale of hearing aids by physicians.

SUMMARY OF SPECIFIC PROVISIONS: This bill would amend the general busi-
ness law by a portion of section eight hundred two of the general busi-
ness law to permit the for-profit sale of hearing aids by physicians.

Section 1 of the bill repeals a portion of section eight hundred two of
the general business law to permit the for-profit sale of hearing aids
by physicians.

Section 2 of the bill provides that the bill shall take effect imme-
diately.

JUSTIFICATION: Currently, physicians are prohibited by section eight
hundred two of the general business law to sell hearing aids for a
profit. This prohibition, however, dates back to the mid-seventies, a
time in which even hearing aid dealers were prohibited by law from sell-
ing hearing aids without a referral from a physician. Since that time,
the law has changed as has the practice of medicine and otolaryngology.
New York State is the only state that prohibits the sale of hearing aids
by physicians for-profit, which effectively eliminates the sale of any
hearing aids by physicians. By enabling consumers to purchase hearing
aids from physicians, access to such devices and care coordination would
be enhanced.

Moreover, it is an unfair restraint of trade to prohibit a profession to
operate at a profit. The practice of fitting and dispensing of hearing
aids has long been a recognized part of the scope of practice of otolar-
yngology. The American Academy of Otolaryngology position statement
reads: "The American Academy of Otolaryngology Head and Neck Surgery,
Inc. states: dispensing of hearing aids, hearing assisted devices and
other hearing rehabilitation devices is within the scope of practice for
otolaryngologists head and neck surgeons. "Physician practices are
small business, and cannot effectively run their businesses by offering
services without earning a profit.

Lifting the prohibition on earning a profit would be in the best inter-
est of patients as it would improve access to hearing aids and the dual-
ity of care delivered by enabling all appropriately trained and quali-
fied healthcare providers to offer hearing aid services to patients.

Patients are also likely to enjoy more competitive pricing among all
hearing aid dispensers through the application of market forces for an
item which is often not covered by insurance.

PRIOR LEGISLATIVE HISTORY: 2009-10: S.5257 - Referred to Consumer
Protection

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3354

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 1, 2013
                               ___________

Introduced  by  Sen. HASSELL-THOMPSON -- read twice and ordered printed,
  and when  printed  to  be  committed  to  the  Committee  on  Consumer
  Protection

AN  ACT  to  amend  the  general  business  law,  in relation to special
  provisions of the not-for-profit sales

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Section 802 of the general business law, as added by chap-
ter 599 of the laws of 1998, subdivision 1 as designated and subdivision
2 as added by chapter 301 of the laws of 2000, is  amended  to  read  as
follows:
  S  802.  Special provisions[; not-for-profit sales]. 1.  [No otolaryn-
gologist or other licensed physician who has conducted a medical  evalu-
ation of hearing loss shall engage in the business of dispensing hearing
aids  for a profit.] No otolaryngologist or other licensed physician who
has dispensed a hearing aid shall refuse or fail to perform  repairs  or
service on any hearing aid that they have dispensed.
  2.  Every  licensed physician who engages in the dispensing of hearing
aids in compliance with the provisions of this section shall be required
to comply with sections seven hundred ninety-one, seven hundred  ninety-
eight and eight hundred three of this article, in addition to compliance
with this section.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06413-01-3

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