H-56                 _______________________________________________

                                                   HOUSE BILL NO. 1148

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives May, Sprenkle, Ferguson, Holland, Valle, Day, Rayburn, Brekke, Cole, Scott, Jones, Wood, Beck, McLean, Walker, Todd, Rasmussen, Patrick, Zellinsky, Leonard and Van Luven

Read first time 1/18/89 and referred to Committee on Revenue.

AN ACT Relating to excise taxation of prescription drugs and related devices; amending RCW 82.08.0281 and 82.12.0275; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 46, chapter 37, Laws of 1980 and RCW 82.08.0281 are each amended to read as follows:

          The tax levied by RCW 82.08.020 shall not apply to sales of prescription drugs and devices, including sales to the state or a political subdivision or municipal corporation thereof of drugs or devices to be dispensed to patients by prescription without charge.  The term "prescription drugs and devices" shall include any medicine, drug, syringe or similar device used to administer prescription drugs, prescription lens, or other substance other than food for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or other ailment in humans ordered by (1) the written prescription to a pharmacist by a practitioner authorized by law of this state or laws of another jurisdiction to issue prescriptions, or (2) upon an oral prescription of such practitioner which is reduced promptly to writing and filed by a duly licensed pharmacist, or (3) by refilling any such written or oral prescription if such refilling is authorized by the prescriber either in the original prescription or by oral order which is reduced promptly to writing and filed by the pharmacist, or (4) physicians or optometrists by way of written directions and specifications for the preparation, grinding, and fabrication of lenses intended to aid or correct visual defects or anomalies of humans.

        Sec. 2.  Section 73, chapter 37, Laws of 1980 and RCW 82.12.0275 are each amended to read as follows:

          The provisions of this chapter shall not apply in respect to the use of prescription drugs, including the use by the state or a political subdivision or municipal corporation thereof of drugs to be dispensed to patients by prescription without charge, and the use of syringes or other medical apparatus used to administer prescription drugs.  The term "prescription drugs" shall include any medicine, drug, prescription lens, or other substance other than food for use in the diagnosis, cure, mitigation, treatment, or prevention of disease or other ailment in humans ordered by (1) the written prescription to a pharmacist by a practitioner authorized by law of this state or laws of another jurisdiction to issue prescriptions, or (2) upon an oral prescription of such practitioner which is reduced promptly to writing and filed by a duly licensed pharmacist, or (3) by refilling any such written or oral prescription if such refilling is authorized by the prescriber either in the original prescription or by oral order which is reduced promptly to writing and filed by the pharmacist, or (4) physicians or optometrists by way of written directions and specifications for the preparation, grinding, and fabrication of lenses intended to aid or correct visual defects or anomalies of humans.

NEW SECTION. Sec. 3.     This act shall take effect on October 1, 1989.