EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

Whereas, Contact with the world through hearing is important for

2-1 Section 1. At the general election on November 7, 2000, a proposal

2-2 must be submitted to the registered voters of this state to amend the Sales

2-3 and Use Tax Act, which was enacted by the 47th session of the legislature

2-4 of the State of Nevada and approved by the governor in 1955, and

2-5 subsequently approved by the people of this state at the general election

2-6 held on November 6, 1956.

2-7 Sec. 2. At the time and in the manner provided by law, the secretary of

2-8 state shall transmit the proposed act to the several county clerks, and the

2-9 county clerks shall cause it to be published and posted as provided by law.

2-10 Sec. 3. The proclamation and notice to the voters given by the county

2-11 clerks pursuant to law must be in substantially the following form:

2-12 Notice is hereby given that at the general election on November 7,

2-13 2000, a question will appear on the ballot for the adoption or rejection by

2-14 the registered voters of the state of the following proposed act:

2-15 AN ACT to amend an act entitled "An Act to provide revenue for

2-16 the State of Nevada; providing for sales and use taxes; providing

2-17 for the manner of collection; defining certain terms; providing

2-18 penalties for violation, and other matters properly relating

2-19 thereto." approved March 29, 1955, as amended.

2-20 THE PEOPLE OF THE STATE OF NEVADA
2-21 DO ENACT AS FOLLOWS:

2-22 Section 1. Section 56.1 of the above-entitled act, being chapter

2-23 397, Statutes of Nevada 1955, as added by chapter 306, Statutes of

2-24 Nevada 1969, as last amended by chapter 404, Statutes of Nevada

2-25 1995, at page 1008, is hereby amended to read as follows:

2-26 Section 56.1 1. There are exempted from the taxes imposed

2-34 (c) Products for hemodialysis.

3-1 (d) Hearing aids.

3-2 (e) Medicines:

3-3 (1) Prescribed for the treatment of a human being by a person

3-4 authorized to prescribe medicines, and dispensed on a prescription

3-5 filled by a registered pharmacist in accordance with law;

3-6 (2) Furnished by a licensed physician, dentist or podiatric

3-7 physician to his own patient for the treatment of the patient;

3-8 (3) Furnished by a hospital for treatment of any person

3-9 pursuant to the order of a licensed physician, dentist or podiatric

3-10 physician; or

3-11 (4) Sold to a licensed physician, dentist, podiatric physician or

3-12 hospital for the treatment of a human being.

3-13 2. As used in this section:

3-14 (a) "Hearing aid" means a wearable instrument or device

3-15 designed for or offered to aid or compensate for impaired human

3-16 hearing and any parts, attachments or accessories, including

3-17 earmolds, but excluding batteries and cords.

3-18 (b) "Medicine" means any substance or preparation intended for

3-19 use by external or internal application to the human body in the

3-20 diagnosis, cure, mitigation, treatment or prevention of disease or

3-21 affliction of the human body and which is commonly recognized as

3-22 a substance or preparation intended for such use. The term includes

3-23 splints, bandages, pads, compresses and dressings.

3-24 [(b)] (c) "Medicine" does not include:

3-25 (1) Any [auditory,] ophthalmic or ocular device or appliance.

3-26 (2) Articles which are in the nature of instruments, crutches,

3-27 canes, devices or other mechanical, electronic, optical or physical

3-28 equipment.

3-29 (3) Any alcoholic beverage, except where the alcohol merely

3-30 provides a solution in the ordinary preparation of a medicine.

3-31 (4) Braces or supports, other than those prescribed or applied

3-32 by a licensed provider of health care, within his scope of practice,

3-33 for human use.

3-34 3. Insulin furnished by a registered pharmacist to a person for

3-35 treatment of diabetes as directed by a physician shall be deemed to

3-36 be dispensed on a prescription within the meaning of this section.

3-37 Sec. 2. This act becomes effective on January 1, 2001.

3-38 Sec. 4. The ballot page assemblies and the paper ballots to be used in

3-39 voting on the question must present the question in substantially the

3-40 following form:

4-1 Shall the Sales and Use Tax Act of 1955 be amended to provide an

4-2 exemption from the taxes imposed by this act on the gross receipts

4-3 from the sale and storage, use or other consumption of hearing aids?

4-4 Yes ¨ No ¨

4-5 Sec. 5. The explanation of the question that must appear on each paper

4-6 ballot and sample ballot and in every publication and posting of notice of

4-7 the question must be in substantially the following form:

4-8 (Explanation of Question)

4-9 The proposed amendment to the Sales and Use Tax Act of 1955

4-10 would exempt from the taxes imposed by this act the gross receipts

4-11 from the sale and storage, use or other consumption of hearing aids. If

4-12 this proposal is adopted, the legislature has provided that the Local

4-13 School Support Tax Law and the City-County Relief Tax Law will be

4-14 amended to provide the same exemption.

4-15 Sec. 6. If a majority of the votes cast on the question is yes, the

4-16 amendment to the Sales and Use Tax Act of 1955 becomes effective on

4-17 January 1, 2001. If less than a majority of votes cast on the question is yes,

4-18 the question fails and the amendment to the Sales and Use Tax Act of 1955

4-19 does not become effective.

4-20 Sec. 7. All general election laws not inconsistent with this act are

4-21 applicable.

4-22 Sec. 8. Any informalities, omissions or defects in the content or

4-23 making of the publications, proclamations or notices provided for in this act

4-24 and by the general election laws under which this election is held must be

4-25 so construed as not to invalidate the adoption of the act by a majority of the

4-26 registered voters voting on the question if it can be ascertained with

4-27 reasonable certainty from the official returns transmitted to the office of the

4-28 secretary of state that the proposed amendment was adopted by a majority

4-29 of those registered voters.

4-30 Sec. 9. NRS 374.287 is hereby amended to read as follows:

4-31 374.287 1. There are exempted from the taxes imposed by this

4-42 (e) Hearing aids.

5-1 (f) Medicines:

5-2 (1) Prescribed for the treatment of a human being by a person

5-3 authorized to prescribe medicines, and dispensed on a prescription filled by

5-4 a registered pharmacist in accordance with law;

5-5 (2) Furnished by a licensed physician, dentist or podiatric physician

5-6 to his own patient for the treatment of the patient;

5-7 (3) Furnished by a hospital for treatment of any person pursuant to the

5-8 order of a licensed physician, dentist or podiatric physician; or

5-9 (4) Sold to a licensed physician, dentist, podiatric physician or

5-10 hospital for the treatment of a human being.

5-11 2. As used in this section:

5-12 (a) "Hearing aid" means a wearable instrument or device designed

5-13 for or offered to aid or compensate for impaired human hearing and any

5-14 parts, attachments or accessories, including earmolds, but excluding

5-15 batteries and cords.

5-16 (b) "Medicine" means any substance or preparation intended for use by

5-17 external or internal application to the human body in the diagnosis, cure,

5-18 mitigation, treatment or prevention of disease or affliction of the human

5-19 body and which is commonly recognized as a substance or preparation

5-20 intended for such use. The term includes splints, bandages, pads,

5-21 compresses and dressings.

5-22 [(b)] (c) "Medicine" does not include:

5-23 (1) [Any auditory device or appliance.

5-24 (2)] Articles which are in the nature of instruments, crutches, canes,

5-25 devices or other mechanical, electronic, optical or physical equipment.

5-26 [(3)] (2) Any alcoholic beverage, except where the alcohol merely

5-27 provides a solution in the ordinary preparation of a medicine.

5-28 [(4)] (3) Braces or supports, other than those prescribed or applied by

5-29 a licensed provider of health care, within his scope of practice, for human

5-30 use.

5-31 3. Insulin furnished by a registered pharmacist to a person for

5-32 treatment of diabetes as directed by a physician shall be deemed to be

5-33 dispensed on a prescription within the meaning of this section.

5-34 Sec. 10. Section 9 of this act becomes effective on January 1, 2001,

5-35 only if the proposal submitted pursuant to sections 1 to 5, inclusive, of this

5-36 act is approved by the voters at the general election on November 7, 2000.