HBA-RBT C.S.H.B. 2372 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2372
By: Gutierrez
Ways & Means
4/9/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, purchases of over-the-counter medication are taxed.  Many
families without insurance often are forced to rely on these
over-the-counter medications because they cannot afford to see a doctor.
Additionally many doctors are suggesting using newly available
over-the-counter medications rather than prescription medicine.  C.S.H.B.
2372 eliminates sales taxes on medication that is labeled with a national
drug code issued by the federal Food and Drug Administration and is
specifically formulated and labeled for children 12 years of age or
younger. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 
 
SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 151.313(a), Tax Code, to exempt from taxes
imposed by this chapter a drug or medicine, without regard to whether it is
prescribed or dispensed by a licensed practitioner of the healing arts,
that is labeled with a national drug code issued by the federal Food and
Drug Administration and is specifically formulated and labeled for children
12 years of age or younger. 

SECTION 2.  Effective date: The first day of the first calendar quarter
after the 90th day after                  adjournment. 
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in SECTION 1 (Section
151.313(a)(3))by exempting from the sales tax a drug or medicine,  without
regard to whether it is prescribed or dispensed by a licensed practitioner
of the healing arts, that is labeled with a national drug code issued by
the federal Food and Drug Administration and is specifically formulated and
labeled for children 12 years of age or younger.  The original exempted a
drug or medicine as the comptroller shall by rule define, using categories
established by the federal Food and Drug Administration.