Kentucky Board for Licensing Hearing Aid Dealers v. Rallo

549 S.W.2d 825, 1977 Ky. LEXIS 415
CourtKentucky Supreme Court
DecidedApril 22, 1977
StatusPublished

This text of 549 S.W.2d 825 (Kentucky Board for Licensing Hearing Aid Dealers v. Rallo) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Board for Licensing Hearing Aid Dealers v. Rallo, 549 S.W.2d 825, 1977 Ky. LEXIS 415 (Ky. 1977).

Opinion

JONES, Justice.

This litigation involves an interpretation of KRS 334.190, the “grandfather clause” contained in KRS Ch. 334, which regulates hearing aid dealers and fitters. The Kentucky Board for Licensing Hearing Aid Dealers and its individual members prosecute this appeal from a final order granting summary judgment to Rallo and seven other hearing aid dealers. The trial court held that the legislative intent of KRS 334.190 was to exempt from the requirement of examination those persons who were dealers for a period of two out of three continuous years prior to June 16, 1972. He held that Rallo and seven other hearing aid dealers were within the exception of the “grandfather clause.” KRS 334.190.

The sole issue presented in this appeal is whether Rallo and the seven other hearing aid dealers are entitled to licenses without examination under the “grandfather clause.” KRS 334.190.

Louis Rallo and seven other hearing aid dealers applied for hearing aid licenses as required by KRS Ch. 334. They invoked KRS 334.190 to avoid the required licensing examination.

KRS 334.190 provides:

“For a period of six months following June 16, 1972, an applicant for a license shall be issued a license without examination provided applicant:
(1) has been principally engaged as a hearing aid dealer or fitter for a total of at least two (2) continuous years within a period of three (3) years immediately prior to June 16, 1972; (emphasis added)
(2) is a person of>good moral character;
(3) is eighteen (18) years of age or older; and
(4) is free of contagious or infectious disease.”

Rallo and the seven others were formerly active in the sale and fitting of hearing aids. However, during the time prescribed by statute Rallo and the others had occupied executive and managerial positions.

The Board for Licensing Hearing Aid Dealers requested that Rallo and the seven other hearing aid dealers submit a list of the names and addresses of ten individuals each had personally tested and fitted with a hearing aid during the time preceding June 16, 1972. Rallo and the other dealers refused to supply such information.

Thereafter the Board for Licensing Hearing Aid Dealers notified Rallo and the others that if they continued to withhold the requested information each would be required to take the licensing examination or cease and desist from selling hearing aids. Subsequently the hearing aid licensing board notified Rallo and the others they were not eligible for licensing under the “grandfather clause.”

Rallo and the other dealers filed an appeal in the circuit court. The trial court granted summary judgment to Rallo and the others. He held that the word “dealer” was to be construed as to its common ordinary meaning; that is, one who buys to sell. He also held that Rallo and the other hearing aid dealers were exempt from the licensing requirements of KRS Ch. 334.

A dealer is ordinarily defined as one who buys to sell. Webster’s Third New International Dictionary (1966); Black’s Law Dictionary (4th Edition 1957). Although admitting that the ordinary meaning of “dealer” would entitle Rallo and the seven other hearing aid executives to licensing without the necessity of examination, the licensing board contends that within the hearing aid industry “dealer” has assumed a technical or trade usage. The licensing board contends that a “dealer” within that industry is “one who sells, in addition to fitting, hearing aids.” The board’s interpretation would require Rallo and the seven other hearing aid executives to demonstrate that each had personally fitted hearing aids during the statutorily prescribed period in order to be exempted from the required licensing examination.

Rallo and the other hearing aid executives contend that the use of the words “dealer” and “fitter” throughout the chapter constitutes a legislative recognition of [827]*827two separate and distinct activities within the industry. They argue that such usage militates against the board’s interpretation of the word “dealer” as one who sells in addition to fitting hearing aids. As dealers of hearing aids during the statutorily prescribed period, Rallo and the seven other executives assert that the clear wording of the “grandfather clause” entitled them to licenses without any demonstration that they had fitted hearing aids.

The interpretation of statutes in this Commonwealth is governed by the provisions of KRS 446.080, which require that all statutes be liberally construed to promote their objectives and that all words be construed according to their common and approved usage, unless they have acquired a peculiar meaning.

The purpose of KRS Ch. 334 is to protect the public from abuses within the hearing aid industry. To accomplish this purpose, the legislation established a board for the examination and licensing of hearing aid dealers and fitters and the general policing of the industry. Under this chapter no person may engage in the “sale of or practice of fitting hearing aids” unless he holds a valid license from the board. KRS 334.-020. Except for certain limited exceptions, such a license will only be issued to persons who have, by examination, demonstrated a knowledge of and proficiency in techniques pertaining to the fitting of hearing aids. KRS 334.070. The objective of these provisions is to insure that all future licensees, whether dealers or fitters, will have a basic competency in the fitting of hearing aids. That objective, the board argues, will be thwarted by allowing Rallo and the other hearing aid executives to become licensed without an examination or demonstration of their competency to fit hearing aids. Such an argument ignores the specific legislative intent of the provisions of KRS 334.-190.

It is not the general intent of the legislature in enacting KRS Ch. 334 that is relevant, but the specific legislative purpose in enacting the “grandfather clause” of that chapter. This court has held that the purpose of a “grandfather clause” in initial regulatory legislation is to satisfy the dictates of fairness by affording relief to previously established enterprises. Commonwealth Air Transport v. Stuart, 303 Ky. 69, 196 S.W.2d 866, 869 (1946).

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Related

Commonwealth Air Transport, Inc. v. Stuart
196 S.W.2d 866 (Court of Appeals of Kentucky (pre-1976), 1946)

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Bluebook (online)
549 S.W.2d 825, 1977 Ky. LEXIS 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-board-for-licensing-hearing-aid-dealers-v-rallo-ky-1977.