SRC-PNG H.B. 2372 76(R)BILL ANALYSIS


Senate Research CenterH.B. 2372
By: Gutierrez (Ellis)
Finance
5/13/1999
Committee Report (Amended)


DIGEST 

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.  This bill
would eliminate sales tax on medication that is labeled with a national
drug code issued by the federal Food and Drug Administration and blood
glucose monitoring strips. 

PURPOSE

As proposed, H.B. 2372 eliminates sales tax on medication that is labeled
with a national drug code issued by the federal Food and Drug
Administration and blood glucose monitoring strips. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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 blood glucose monitoring test strips.  Makes
conforming changes. 

SECTION 2. (a) Effective date: The first day of the first calendar quarter
after the 90th day after adjournment. 

(b) Makes application of this Act prospective.

SECTION 3. Emergency clause.