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.