84R18774 BEF-D
 
  By: Bonnen of Galveston H.B. No. 633
 
  Substitute the following for H.B. No. 633:
 
  By:  Wray C.S.H.B. No. 633
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a sales and use tax exemption for certain health care
  supplies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 151.313(a), (c), and (e), Tax Code, are
  amended to read as follows:
         (a)  The following items are exempted from the taxes imposed
  by this chapter:
               (1)  a drug or medicine, other than insulin, if
  prescribed or dispensed for a human or animal by a licensed
  practitioner of the healing arts, including a veterinarian;
               (2)  insulin;
               (3)  a drug or medicine that is required to be labeled
  with a "Drug Facts" panel in accordance with regulations of the
  federal Food and Drug Administration, without regard to whether it
  is prescribed or dispensed by a licensed practitioner of the
  healing arts;
               (4)  a hypodermic syringe or needle;
               (5)  a brace; hearing aid or audio loop; orthopedic,
  dental, or prosthetic device; ileostomy, colostomy, or ileal
  bladder appliance; or supplies or replacement parts for the listed
  items;
               (6)  a therapeutic appliance, device, and any related
  supplies specifically designed for those products, if dispensed or
  prescribed for a human or animal by a licensed practitioner of the
  healing arts, including a veterinarian, when those items are
  purchased and used by:
                     (A)  an individual for whom the items listed in
  this subdivision were dispensed or prescribed; or
                     (B)  an owner or caretaker of an animal for which
  the items listed in this subdivision were dispensed or prescribed;
               (7)  corrective lens and necessary and related
  supplies, if dispensed or prescribed by an ophthalmologist or
  optometrist;
               (8)  specialized printing or signalling equipment used
  by the deaf for the purpose of enabling the deaf to communicate
  through the use of an ordinary telephone and all materials, paper,
  and printing ribbons used in that equipment;
               (9)  a braille wristwatch, braille writer, braille
  paper and braille electronic equipment that connects to computer
  equipment, and the necessary adaptive devices and adaptive computer
  software;
               (10)  each of the following items if purchased for use
  by the blind to enable them to function more independently: a slate
  and stylus, print enlarger, light probe, magnifier, white cane,
  talking clock, large print terminal, talking terminal, or harness
  for guide dog;
               (11)  hospital beds;
               (12)  blood glucose monitoring test strips;
               (13)  an adjustable eating utensil used to facilitate
  independent eating if purchased for use by a person, including a
  person who is elderly, has a physical disability [or physically
  disabled], has had a stroke, or is a burn victim, who does not have
  full use or control of the person's hands or arms;
               (14)  subject to Subsection (d), a dietary supplement;
  and
               (15)  intravenous systems, supplies, and replacement
  parts designed or intended to be used in the diagnosis or treatment
  of humans or animals.
         (c)  A product is a drug or medicine for purposes of this
  section if the product:
               (1) is intended for use in the diagnosis, cure,
  mitigation, treatment, or prevention of disease, illness, injury,
  or pain;
               (2) is:
                     (A)  applied to the human body or is a product that
  a human ingests or inhales; or
                     (B)  prescribed or dispensed by a veterinarian and
  is applied to the body of an animal or is a product that an animal is
  intended to ingest or inhale;
               (3) is not an appliance or device; and
               (4) is not food.
         (e)  A product is an intravenous system for purposes of this
  section if, regardless of whether the product is designed or
  intended to be inserted subcutaneously into any part of a human's or
  animal's [the] body, the product is designed or intended to be used
  to administer fluids, electrolytes, blood and blood products, or
  drugs [to patients] or to withdraw blood or fluids [from patients].  
  The term includes access ports, adapters, bags and bottles,
  cannulae, cassettes, catheters, clamps, connectors, drip chambers,
  extension sets, filters, in-line ports, luer locks, needles, poles,
  pumps and batteries, spikes, tubing, valves, volumetric chambers,
  and items designed or intended to connect qualifying products to
  one another or secure qualifying products to a patient who is a
  human or animal.  The term does not include a wound drain.
         SECTION 2.  The changes in law made by this Act do not affect
  tax liability accruing before the effective date of this Act. That
  liability continues in effect as if this Act had not been enacted,
  and the former law is continued in effect for the collection of
  taxes due and for civil and criminal enforcement of the liability
  for those taxes.
         SECTION 3.  This Act takes effect September 1, 2015.