Date Requested:January 13, 2012
Time Requested:01:39 PM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2012R4023 Introduced HB4023
CBD Subject: PRESCRIPTION FOR DISPENSING CERTAIN DRUG PRODUCTS
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

     The stated purpose of this bill is to require a prescription to dispense drug products that contain as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine. This bill makes those drugs Schedule III drugs. The bill eliminates certain provisions and definitions that are no longer applicable. The bill makes additional legislative findings. The bill exempts wholesalers from certain requirements of the United States Drug Enforcement Administration relating to storage, reporting, record keeping or physical security control requirements for controlled substances containing ephedrine, pseudoephedrine or phenylpropanolamine. The bill adds affirmative defenses. The bill requires the Superintendent of the West Virginia State Police to submit a legislative report by December 1, 2012 on how to improve the effectiveness of a reduction in illegal methamphetamine production and distribution. The bill also provides rule-making authority.
    
     According to our interpretation, this bill would require a prescription for dispensing certain medications containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine that are currently available without a prescription (i.e., over the counter). As a result, these medications, which are currently taxable over the counter, would become exempt from the Consumers Sales and Use Tax as a prescription. The loss to the General Revenue Fund from the passage of this bill would be less than $500,000 per year. It should also be noted that Medicaid currently covers these types of medications (e.g., ephedrine and pseudoephedrine) pursuant to a prescription. As a result, these prescriptions would already be exempt from the Consumers Sales Tax.
    
     There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 -500,000
3. Explanation of above estimates (including long-range effect):
     According to our interpretation, this bill would require a prescription for dispensing certain medications containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine that are currently available without a prescription (i.e., over the counter). As a result, these medications, which are currently taxable over the counter, would become exempt from the Consumers Sales and Use Tax as a prescription. The loss to the General Revenue Fund from the passage of this bill would be less than $500,000 per year. It should also be noted that Medicaid currently covers these types of medications (e.g., ephedrine and pseudoephedrine) pursuant to a prescription. As a result, these prescriptions would already be exempt from the Consumers Sales Tax.
    
     There would be no additional administrative costs to the State Tax Department from the passage of this bill.


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov