By Berman                                              H.B. No. 272
         77R623 KSK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting certain health care items from state sales
 1-3     tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 151.313(a), Tax Code, as amended by
 1-6     Chapters 394 and 683, Acts of the 76th Legislature, Regular
 1-7     Session, 1999, is amended and reenacted to read as follows:
 1-8           (a)  The following items are exempted from the taxes imposed
 1-9     by this chapter:
1-10                 (1)  a drug or medicine, other than insulin, if
1-11     prescribed or dispensed for a human or animal by a licensed
1-12     practitioner of the healing arts;
1-13                 (2)  insulin;
1-14                 (3)  a drug or medicine, without regard to whether it
1-15     is prescribed or dispensed by a licensed practitioner of the
1-16     healing arts, that is labeled with a national drug code issued by
1-17     the federal Food and Drug Administration;
1-18                 (4)  a hypodermic syringe or needle;
1-19                 (5)  a brace; hearing aid or audio loop; orthopedic,
1-20     dental, or prosthetic device; ileostomy, colostomy, or ileal
1-21     bladder appliance; or supplies or replacement parts for the listed
1-22     items;
1-23                 (6)  a therapeutic appliance or[,] device, and any
1-24     related supplies specifically designed for those products, if
 2-1     dispensed or prescribed by a licensed practitioner of the healing
 2-2     arts, when those items are purchased and used by an individual for
 2-3     whom the items listed in this subdivision were dispensed or
 2-4     prescribed;
 2-5                 (7)  a therapeutic appliance or device, and any related
 2-6     supplies specifically designed for those products, without regard
 2-7     to whether those items are dispensed or prescribed by a licensed
 2-8     practitioner of the healing arts, when those items are used in
 2-9     surgical procedures to perform intraoperative, autologous blood
2-10     transfusions;
2-11                 (8) [(7)]  corrective lens and necessary and related
2-12     supplies, if dispensed or prescribed by an ophthalmologist or
2-13     optometrist;
2-14                 (9) [(8)]  specialized printing or signalling equipment
2-15     used by the deaf for the purpose of enabling the deaf to
2-16     communicate through the use of an ordinary telephone and all
2-17     materials, paper, and printing ribbons used in that equipment;
2-18                 (10) [(9)]  a braille wristwatch, braille writer,
2-19     braille paper and braille electronic equipment that connects to
2-20     computer equipment, and the necessary adaptive devices and adaptive
2-21     computer software;
2-22                 (11) [(10)]  each of the following items if purchased
2-23     for use by the blind to enable them to function more independently:
2-24     a slate and stylus, print enlarger, light probe, magnifier, white
2-25     cane, talking clock, large print terminal, talking terminal, or
2-26     harness for guide dog;
2-27                 (12) [(11)]  hospital beds;
 3-1                 (13) [(12)]  blood glucose monitoring test strips; and
 3-2                 (14) [(13)]  an adjustable eating utensil used to
 3-3     facilitate independent eating if purchased for use by a person,
 3-4     including a person who is elderly or physically disabled, has had a
 3-5     stroke, or is a burn victim, who does not have full use or control
 3-6     of the person's hands or arms.
 3-7           SECTION 2. (a)  This Act takes effect on the first day of the
 3-8     first calendar quarter beginning on or after the date on which it
 3-9     may take effect under Section 39, Article III, Texas Constitution.
3-10           (b)  The change in law made by this Act does not affect taxes
3-11     imposed before the effective date of this Act, and the law in
3-12     effect before the effective date of this Act is continued in effect
3-13     for purposes of the liability for and collection of those taxes.