| 5 | 3 | | |
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| 6 | 4 | | |
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| 7 | 5 | | A BILL TO BE ENTITLED |
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| 8 | 6 | | AN ACT |
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| 9 | 7 | | relating to a sales and use tax exemption for certain health care |
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| 10 | 8 | | supplies. |
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| 11 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 10 | | SECTION 1. Sections 151.313(a), (c), and (e), Tax Code, are |
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| 13 | 11 | | amended to read as follows: |
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| 14 | 12 | | (a) The following items are exempted from the taxes imposed |
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| 15 | 13 | | by this chapter: |
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| 16 | 14 | | (1) a drug or medicine, other than insulin, if |
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| 17 | 15 | | prescribed or dispensed for a human or animal by a licensed |
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| 18 | 16 | | practitioner of the healing arts, including a veterinarian; |
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| 19 | 17 | | (2) insulin; |
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| 20 | 18 | | (3) a drug or medicine that is required to be labeled |
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| 21 | 19 | | with a "Drug Facts" panel in accordance with regulations of the |
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| 22 | 20 | | federal Food and Drug Administration, without regard to whether it |
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| 23 | 21 | | is prescribed or dispensed by a licensed practitioner of the |
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| 24 | 22 | | healing arts; |
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| 25 | 23 | | (4) a hypodermic syringe or needle; |
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| 26 | 24 | | (5) a brace; hearing aid or audio loop; orthopedic, |
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| 27 | 25 | | dental, or prosthetic device; ileostomy, colostomy, or ileal |
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| 28 | 26 | | bladder appliance; or supplies or replacement parts for the listed |
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| 29 | 27 | | items; |
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| 30 | 28 | | (6) a therapeutic appliance, device, and any related |
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| 31 | 29 | | supplies specifically designed for those products, if dispensed or |
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| 32 | 30 | | prescribed for a human or animal by a licensed practitioner of the |
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| 33 | 31 | | healing arts, including a veterinarian, when those items are |
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| 34 | 32 | | purchased and used by: |
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| 35 | 33 | | (A) an individual for whom the items listed in |
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| 36 | 34 | | this subdivision were dispensed or prescribed; or |
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| 37 | 35 | | (B) an owner or caretaker of an animal for which |
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| 38 | 36 | | the items listed in this subdivision were dispensed or prescribed; |
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| 39 | 37 | | (7) corrective lens and necessary and related |
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| 40 | 38 | | supplies, if dispensed or prescribed by an ophthalmologist or |
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| 41 | 39 | | optometrist; |
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| 42 | 40 | | (8) specialized printing or signalling equipment used |
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| 43 | 41 | | by the deaf for the purpose of enabling the deaf to communicate |
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| 44 | 42 | | through the use of an ordinary telephone and all materials, paper, |
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| 45 | 43 | | and printing ribbons used in that equipment; |
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| 46 | 44 | | (9) a braille wristwatch, braille writer, braille |
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| 47 | 45 | | paper and braille electronic equipment that connects to computer |
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| 48 | 46 | | equipment, and the necessary adaptive devices and adaptive computer |
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| 49 | 47 | | software; |
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| 50 | 48 | | (10) each of the following items if purchased for use |
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| 51 | 49 | | by the blind to enable them to function more independently: a slate |
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| 52 | 50 | | and stylus, print enlarger, light probe, magnifier, white cane, |
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| 53 | 51 | | talking clock, large print terminal, talking terminal, or harness |
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| 54 | 52 | | for guide dog; |
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| 55 | 53 | | (11) hospital beds; |
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| 56 | 54 | | (12) blood glucose monitoring test strips; |
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| 57 | 55 | | (13) an adjustable eating utensil used to facilitate |
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| 58 | 56 | | independent eating if purchased for use by a person, including a |
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| 59 | 57 | | person who is elderly, has a physical disability [or physically |
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| 60 | 58 | | disabled], has had a stroke, or is a burn victim, who does not have |
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| 61 | 59 | | full use or control of the person's hands or arms; |
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| 62 | 60 | | (14) subject to Subsection (d), a dietary supplement; |
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| 63 | 61 | | and |
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| 64 | 62 | | (15) intravenous systems, supplies, and replacement |
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| 65 | 63 | | parts designed or intended to be used in the diagnosis or treatment |
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| 66 | 64 | | of humans or animals. |
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| 67 | 65 | | (c) A product is a drug or medicine for purposes of this |
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| 68 | 66 | | section if the product: |
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| 69 | 67 | | (1) is intended for use in the diagnosis, cure, |
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| 70 | 68 | | mitigation, treatment, or prevention of disease, illness, injury, |
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| 71 | 69 | | or pain; |
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| 72 | 70 | | (2) is: |
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| 73 | 71 | | (A) applied to the human body or is a product that |
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| 74 | 72 | | a human ingests or inhales; or |
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| 75 | 73 | | (B) prescribed or dispensed by a veterinarian and |
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| 76 | 74 | | is applied to the body of an animal or is a product that an animal is |
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| 77 | 75 | | intended to ingest or inhale; |
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| 78 | 76 | | (3) is not an appliance or device; and |
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| 79 | 77 | | (4) is not food. |
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| 80 | 78 | | (e) A product is an intravenous system for purposes of this |
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| 81 | 79 | | section if, regardless of whether the product is designed or |
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| 82 | 80 | | intended to be inserted subcutaneously into any part of a human's or |
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| 83 | 81 | | animal's [the] body, the product is designed or intended to be used |
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| 84 | 82 | | to administer fluids, electrolytes, blood and blood products, or |
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| 85 | 83 | | drugs [to patients] or to withdraw blood or fluids [from patients]. |
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| 86 | 84 | | The term includes access ports, adapters, bags and bottles, |
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| 87 | 85 | | cannulae, cassettes, catheters, clamps, connectors, drip chambers, |
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| 88 | 86 | | extension sets, filters, in-line ports, luer locks, needles, poles, |
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| 89 | 87 | | pumps and batteries, spikes, tubing, valves, volumetric chambers, |
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| 90 | 88 | | and items designed or intended to connect qualifying products to |
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| 91 | 89 | | one another or secure qualifying products to a patient who is a |
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| 92 | 90 | | human or animal. The term does not include a wound drain. |
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| 93 | 91 | | SECTION 2. The changes in law made by this Act do not affect |
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| 94 | 92 | | tax liability accruing before the effective date of this Act. That |
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| 95 | 93 | | liability continues in effect as if this Act had not been enacted, |
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| 96 | 94 | | and the former law is continued in effect for the collection of |
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| 97 | 95 | | taxes due and for civil and criminal enforcement of the liability |
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| 98 | 96 | | for those taxes. |
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| 99 | 97 | | SECTION 3. This Act takes effect September 1, 2015. |
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