HBA-RBT H.B. 2372 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2372
By: Gutierrez
Ways & Means
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

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.  H.B. 2372
eliminates all sales taxes on over-thecounter medication. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the comptroller of public accounts in
SECTION 1 (Section 151.313(a), Tax Code) of this bill. 
 
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 as the comptroller shall by rule
define, using categories established by the federal Food and Drug
Administration, rather than a drug or medicine, other than insulin, if
prescribed or dispensed for a human or animal by a licensed practitioner of
the healing arts. 

SECTION 2.  Effective date: The first day of the first calendar quarter
after the 90th day after                  adjournment. 
            Makes application of this Act prospective.

SECTION 3.  Emergency clause.