HBA-RBT C.S.H.B. 2372 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2372 By: Gutierrez Ways & Means 4/9/1999 Committee Report (Substituted) 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. C.S.H.B. 2372 eliminates sales taxes on medication that is labeled with a national drug code issued by the federal Food and Drug Administration and is specifically formulated and labeled for children 12 years of age or younger. 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, to exempt from taxes imposed by this chapter a drug or medicine, without regard to whether it is prescribed or dispensed by a licensed practitioner of the healing arts, that is labeled with a national drug code issued by the federal Food and Drug Administration and is specifically formulated and labeled for children 12 years of age or younger. 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. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in SECTION 1 (Section 151.313(a)(3))by exempting from the sales tax a drug or medicine, without regard to whether it is prescribed or dispensed by a licensed practitioner of the healing arts, that is labeled with a national drug code issued by the federal Food and Drug Administration and is specifically formulated and labeled for children 12 years of age or younger. The original exempted a drug or medicine as the comptroller shall by rule define, using categories established by the federal Food and Drug Administration.