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103D CONGRESS

1ST SESSION H. R. 1304

To amend the Internal Revenue Code of 1986 to impose an excise tax

on sales of syringes and intravenous systems which do not meet

antineedlestick prevention standards.

IN THE HOUSE OF REPRESENTATIVES

MARCH 10, 1993

Mr. STARK (for himself and Mr. RANGEL) introduced the following bill; which

was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to impose

an excise tax on sales of syringes and intravenous

systems which do not meet antineedlestick prevention

standards.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 That (a) chapter 36 of the Internal Revenue Code of 1986

4 (relating to certain other excise taxes) is amended by in5 serting after subchapter D the following new subchapter:

6 ‘‘SUBCHAPTER E—CERTAIN MEDICAL ITEMS

‘‘Sec. 4491. Imposition of tax.

‘‘Sec. 4492. Definitions and special rules.
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1 ‘‘SEC. 4491. IMPOSITION OF TAX.

2 ‘‘(a) GENERAL RULE.—There is hereby imposed on

3 the taxable sale of any taxable medical item a tax of 10

4 cents per item.

5 ‘‘(b) TERMINATION.—No tax shall be imposed by this

6 section on any sale after December 31, 1999.

7 ‘‘SEC. 4492. DEFINITIONS AND SPECIAL RULES.

8 ‘‘(a) TAXABLE MEDICAL ITEM.—For purposes of this

9 subchapter—

10 ‘‘(1) IN GENERAL.—The term ‘taxable medical

11 item’ means any item—

12 ‘‘(A) which is—

13 ‘‘(i) a syringe, or

14 ‘‘(ii) an item which is designed to be

15 part of an intravenous system and to

16 which a standard prescribed under para17 graph (2) applies,

18 ‘‘(B) which is manufactured or produced in

19 the United States or entered into the United

20 States for consumption, use, or warehousing,

21 and

22 ‘‘(C) which does not meet the applicable

23 standard prescribed under paragraph (2).

24 ‘‘(2) ANTINEEDLESTICK PREVENTION STAND25 ARDS.—Not later than the date 1 year after the date

26 of the enactment of this section, the Commissioner
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1 of the Food and Drug Administration shall prescribe

2 safety performance standards for syringes, and such

3 components of intravenous systems as such Commis4 sioner deems appropriate, for purposes of preventing

5 accidental needlestick injuries to health care provid6 ers. Not less frequently than annually, such Com7 missioner shall review such standards and make

8 such revisions as such Commissioner may deem ap9 propriate. Before prescribing any such standards or

10 making any revisions of such standards, such Com11 missioner shall consult with appropriate private

12 sector experts.

13 ‘‘(3) EXEMPTIONS.—The Commissioner of the

14 Food and Drug Administration may by regulation

15 provide for such exemptions from the tax imposed by

16 section 4491 as such Commissioner may deem

17 appropriate.

18 ‘‘(b) TAXABLE SALE.—For purposes of this sub19 chapter—

20 ‘‘(1) IN GENERAL.—The term ‘taxable sale’

21 means any sale of a taxable medical item to a health

22 care provider for use in the United States in provid23 ing health care services, but only if such sale is the

24 first sale to such a provider for such use after manu25 facture, production, or importation.
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1 ‘‘(2) HEALTH CARE PROVIDER.—The term

2 ‘health care provider’ means any person or entity

3 (including a governmental entity) which provides

4 services covered under the insurance program estab5 lished by title XVIII of the Social Security Act and

6 which has a provider number issued pursuant to

7 such program.

8 ‘‘(c) OTHER DEFINITIONS AND SPECIAL RULES.—

9 For purposes of this subchapter—

10 ‘‘(1) UNITED STATES.—The term ‘United

11 States’ has the meaning given such term by section

12 4612(a)(4).

13 ‘‘(2) DISPOSITION OF REVENUES FROM PUERTO

14 RICO AND THE VIRGIN ISLANDS.—The provisions of

15 subsections (a)(3) and (b)(3) of section 7652 shall

16 not apply to the tax imposed by section 4491.’’

17 (b) The table of subchapters for chapter 36 of such

18 Code is amended by inserting after the item relating to

19 subchapter D the following new item:

‘‘SUBCHAPTER E. Certain medical items.’’

20 (c) The amendments made by this section shall apply

21 to sales after December 31, 1996.

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