HBA-RBT, BTC H.B. 112 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 112
By: Maxey
Ways & Means
2/24/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, prescription medicines are exempt from sales tax but
over-the-counter medicines are not. Many families cannot afford to go to
the doctor for nonemergency illnesses, and rely solely on overthe-counter
medicines to treat their illnesses.  Additionally, doctors frequently
recommend medicines that used to be dispensed only by prescription and are
now available over-the-counter.  H.B. 112 would exempt over-the-counter
medications from tax, which would thereby extend the state's policy of not
taxing necessities, and aid those persons most in need by making
over-the-counter medicines more affordable.  

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, as follows:  

Certain pharmaceutical items are exempt from taxes imposed by this chapter.
This bill modifies existing text to exempt a drug or medicine, including
insulin, from taxes imposed by this chapter.  Deletes the provision that a
drug or medicine has to be prescribed or dispensed for a human or animal by
a licensed practitioner of the healing arts.  Deletes existing  Subdivision
(2) and redesignates existing Subdivisions (3) - (10) to (2) - (9). 

SECTION 2. Provides that this Act takes effect on the first day of the
first calendar quarter beginning on or after the date it may take effect
pursuant to Sec. 39, Article III, Texas Constitution.  Makes application of
this Act prospective. 

SECTION 3.  Emergency clause.