(a) Notwithstanding any other law to the contrary, state public colleges and universities are permitted to establish and operate clinical and dispensary programs in speech pathology, speech therapy and audiology for the purpose of educating students and generating financial support necessary to operate and make necessary improvements to those programs.

(b) It is not the intent of the general assembly for such programs to compete directly with private hearing device retailers. Hearing centers operated and governed by public institutions of higher education shall not expand to operate satellite centers for the purpose of selling hearing aids, and shall not advertise the sale of hearing aids through any form of mass media, including, but not limited to, newspapers, magazines, billboards, phone directories, television, radio or Internet, or through mass mailings, either printed or electronic. Such clinics and programs are permitted to receive patient referrals, to treat patients wishing to receive services from the college or university and to dispense hearing aids to such patients.

(c) Each public institution of higher education operating a hearing center shall, by September 15 of each year, provide a written report to the Tennessee higher education commission and the education committee of the senate and the education committee of the house of representatives. The report shall contain the following information relative to the prior year:

(1) The number of patients served;

(2) The number of patient-contact hours for which students received credit;

(3) The number of billed patient hours;

(4) The number of hearing aids dispensed to patients; and

(5) The revenues from clinical and dispensing operations.