Request By:
Mr. Larry Naiser, Chairman
Kentucky Board for Licensing
Hearing Aid Dealers
P.O. Box 456
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: B. F. Radmacher, III, Assistant Attorney General
Please be advised that your letter to the Attorney General, Robert F. Stephens, has been referred to me for response. Your letter requests an opinion as to the definition of the word "profit" as it relates to Kentucky Revised Statute 334.020(2). Specifically, that statute states as follows:
". . . No physician conducting an examination for an approval or hearing aid evaluation, or an audiologist conducting a hearing aid evaluation, under this section shall have a direct or indirect interest in any business concern controlled by, or employing, a licensee solely for the purpose of engaging in the fitting or sale of hearing aids for profit. "
The obvious intent of the above statute, is to eliminate the possibility of a financial benefit through the sale of a hearing aid device to the physician or audiologist who administers the hearing examination.
In view of the above, it is the opinion of this office that "profit" must be defined as follows:
"The excess of the selling price of hearing instruments and related goods over their actual cost to the seller."
The application of the above definition is subject to the exceptions provided in KRS 334.040.
If this office can be of further assistance, please advise.