A BILL TO BE ENTITLED
AN ACT to adopt the streamlined sales tax changes.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑163.3 is amended by adding the following new subdivisions to read:
"(8a)	Drug. – A compound, substance, or preparation or a component of one of these that meets any of the following descriptions and is not food, a dietary supplement, or an alcoholic beverage:
a.	Is recognized in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary.
b.	Is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease.
c.	Is intended to affect the structure or function of the body.
…
(25a)	Over-the-counter drug. – A drug that can be dispensed under federal law without a prescription and is required by 21 C.F.R. § 210.66 to have a label containing a "Drug Facts" panel and a statement of its active ingredients."
SECTION 2.  G.S. 106‑164.3(29) reads as rewritten:
"(29)	Prescription. – An order, formula, or recipe issued orally, in writing, electronically, or by another means of transmission by a physician, dentist, veterinarian, or another person licensed to prescribe drugs."
SECTION 3.  G.S. 105‑164.13(13) reads as rewritten:
"(13)	All of the following drugs, including their packaging  materials and any instructions or information about the drugs included in the package with them:
a.	Drugs required by federal law to be dispensed only on prescription.
b.	Over-the-counter drugs sold on prescription.
c.	Insulin."
SECTION 4.  This act becomes effective July 1, 2003.