1-1 By: Gutierrez, et al. (Senate Sponsor - Ellis) H.B. No. 2372
1-2 (In the Senate - Received from the House May 10, 1999;
1-3 May 10, 1999, read first time and referred to Committee on Finance;
1-4 May 14, 1999, reported favorably, as amended, by the following
1-5 vote: Yeas 10, Nays 0; May 14, 1999, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Truan
1-7 Amend House Bill 2372, relating to Section 151.313(a) of the
1-8 Tax Code, as follows:
1-9 On page 1, line 56, strike Section 2 of the bill
1-10 A BILL TO BE ENTITLED
1-11 AN ACT
1-12 relating to exempting certain drugs, medicines, and medical devices
1-13 from the sales tax.
1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Section 151.313(a), Tax Code, is amended to read
1-16 as follows:
1-17 (a) The following items are exempted from the taxes imposed
1-18 by this chapter:
1-19 (1) a drug or medicine, other than insulin, if
1-20 prescribed or dispensed for a human or animal by a licensed
1-21 practitioner of the healing arts;
1-22 (2) insulin;
1-23 (3) a drug or medicine, without regard to whether it
1-24 is prescribed or dispensed by a licensed practitioner of the
1-25 healing arts, that is labeled with a national drug code issued by
1-26 the federal Food and Drug Administration;
1-27 (4) a hypodermic syringe or needle;
1-28 (5) [(4)] a brace; hearing aid or audio loop;
1-29 orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
1-30 ileal bladder appliance; or supplies or replacement parts for the
1-31 listed items;
1-32 (6) [(5)] a therapeutic appliance, device, and any
1-33 related supplies specifically designed for those products, if
1-34 dispensed or prescribed by a licensed practitioner of the healing
1-35 arts, when those items are purchased and used by an individual for
1-36 whom the items listed in this subdivision were dispensed or
1-37 prescribed;
1-38 (7) [(6)] corrective lens and necessary and related
1-39 supplies, if dispensed or prescribed by an ophthalmologist or
1-40 optometrist;
1-41 (8) [(7)] specialized printing or signalling equipment
1-42 used by the deaf for the purpose of enabling the deaf to
1-43 communicate through the use of an ordinary telephone and all
1-44 materials, paper, and printing ribbons used in that equipment;
1-45 (9) [(8)] a braille wristwatch, braille writer,
1-46 braille paper and braille electronic equipment that connects to
1-47 computer equipment, and the necessary adaptive devices and adaptive
1-48 computer software;
1-49 (10) [(9)] each of the following items if purchased
1-50 for use by the blind to enable them to function more independently:
1-51 a slate and stylus, print enlarger, light probe, magnifier, white
1-52 cane, talking clock, large print terminal, talking terminal, or
1-53 harness for guide dog; [and]
1-54 (11) [(10)] hospital beds; and
1-55 (12) blood glucose monitoring test strips.
1-56 SECTION 2. (a) Notwithstanding any other provision of this
1-57 Act, the governing body of a local taxing authority that imposes a
1-58 local sales and use tax may repeal an exemption to that tax
1-59 authorized by this Act if the governing body finds by an
1-60 appropriate order, including an ordinance, that the exemption would
1-61 materially impair the obligation of any contract existing at the
1-62 time this Act goes into effect and to which the local taxing
1-63 authority is a party.
2-1 (b) The secretary of the local taxing authority adopting an
2-2 order under this section shall send to the comptroller by certified
2-3 or registered mail a copy of the order.
2-4 (c) The repeal of the exemption takes effect on the first
2-5 day of the month following the expiration of the calendar quarter
2-6 occurring after the date on which the comptroller receives a copy
2-7 of the order.
2-8 SECTION 3. (a) This Act takes effect on the first day of
2-9 the first calendar quarter beginning on or after the date that it
2-10 may take effect under Section 39, Article III, Texas Constitution.
2-11 (b) The change in law made by this Act does not affect taxes
2-12 imposed before the effective date of this Act, and the law in
2-13 effect before the effective date of this Act is continued in effect
2-14 for purposes of the liability for and collection of those taxes.
2-15 SECTION 4. The importance of this legislation and the
2-16 crowded condition of the calendars in both houses create an
2-17 emergency and an imperative public necessity that the
2-18 constitutional rule requiring bills to be read on three several
2-19 days in each house be suspended, and this rule is hereby suspended,
2-20 and that this Act take effect and be in force according to its
2-21 terms, and it is so enacted.
2-22 * * * * *