BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1950 (Maienschein) - Hearing aids:  audio switch
          
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          |Version: April 25, 2016         |Policy Vote: B., P. & E.D. 8 -  |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          This bill meets the criteria for referral to the Suspense File.

          Bill  
          Summary:  AB 1950 would require licensed hearing aid dispensers  
          and licensed dispensing audiologists to provide consumers with a  
          disclosure developed by the Speech-Language Pathology and  
          Audiology and Hearing Aid Dispensers Board that includes  
          information about a specific technology used in some hearing  
          aids.


          Fiscal  
          Impact:  
           One-time costs of about $100,000 and ongoing costs of $70,000  
            for the development of the consumer disclosure, adoption of  
            regulations, and ongoing review of the necessary information  
            in the disclosure by the Speech-Language Pathology and  
            Audiology and Hearing Aid Dispensers Board (Speech-Language  
            Pathology and Audiology and Hearing Aid Dispensers Fund).

           Potential additional costs of $50,000 to $150,000 per year to  
            respond to consumer complaints and take disciplinary action by  
            the Board (Speech-Language Pathology and Audiology and Hearing  







          AB 1950 (Maienschein)                                  Page 1 of  
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            Aid Dispensers Fund). There are about 230,000 purchases of  
            hearing aids in the state each year. Of those purchases, a  
            significant portion are for hearing aids that do not include  
            the "telecoil" technology that would be the subject of the  
            consumer disclosure under the bill. When a consumer is  
            dispensed one type of hearing aid (under the professional  
            judgment of the dispenser or audiologist) but also given  
            information about a different type of hearing aid, some number  
            of those consumers will be confused or feel that they have not  
            been well served by the dispenser or audiologist. If even 1%  
            of those consumers make a complaint to the Board, there will  
            be substantial staff costs to process those complaints.

           Unknown impact on public health care programs such as Medi-Cal  
            and CalPERS (various funds). The Medi-Cal program and most  
            CalPERS health plans provide coverage for hearing aids. By  
            providing information to consumers about a specific type of  
            hearing aid technology, the bill may result in some consumers  
            requesting a hearing aid with that technology, rather than a  
            different hearing aid that would have been dispensed absent  
            the consumer notification. To the extent that there is any  
            consumer shift towards telecoil hearing aids under the bill,  
            there could be cost implications for public programs that pay  
            for hearing aids, if telecoil hearing aids are more expensive  
            than the hearing aid a consumer would have been dispensed  
            absent the disclosure.


          Background:  Under current law hearing aid dispensers and audiologists are  
          licensed and regulated by the Speech-Language Pathology and  
          Audiology and Hearing Aid Dispensers Board. 
          In general, hearing aids are devices that amplify ambient sound  
          and are placed behind the ear, in the ear, or in the ear canal.  
          In addition to amplifying ambient sound, there are technologies  
          on the market to improve the function of hearing aids by working  
          with outside systems. For example, "telecoil" (also referred to  
          as "t-coil" or "t-switch") technology connects a hearing aid to  
          an outside system that records sound in a room and then  
          broadcasts it to telecoil devises, to improve the hearing  
          experience. For example, a movie theater may be equipped with a  
          telecoil system that transmits the sounds from the movie  
          directly to the hearing aids of those in the theater using the  
          telecoil technology in the hearing aid. There are other  
          technologies that use Bluetooth or FM radio signals to provide  








          AB 1950 (Maienschein)                                  Page 2 of  
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          similar enhancements to the use of hearing aids.




          Proposed Law:  
            AB 1950 would require licensed hearing aid dispensers and  
          licensed dispensing audiologists to provide consumers with a  
          disclosure developed by the Speech-Language Pathology and  
          Audiology and Hearing Aid Dispensers Board with information  
          about a specific technology used in some hearing aids.
          Specific provisions of the bill would:
           After July 1, 2017, require a licensed hearing aid dispenser  
            or a licensed dispensing audiologist, upon the sale of a  
            hearing aid, to provide the purchaser with a copy of a  
            consumer hearing aid disclosure developed by the Board;
           Before July 1, 2017, require the Board to develop a consumer  
            hearing aid disclosure that provides information for the  
            benefit of consumers, including information on telecoil,  
            t-coil, or t-switch.

          Staff comments: The only costs that may be incurred by a local  
          agency relate to crimes and infractions. Under the California  
          Constitution, such costs are not reimbursable by the state.




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