Amend CSHB 3 by adding the following  appropriately numbered 

SECTION:      

	SECTION ____.  Section 23.12, Tax Code, is amended by adding 

Subsection (h) to read as follows:

	(h)  In this subsection, "drug supplies held in surplus" 

means drugs, as defined by the TEXAS FOOD, DRUG AND COSMETIC ACT, 

Section 431.002(14), Health and Safety Code, that are owned by a 

person who holds a wholesale drug distributor license under Chapter 

431, for use in responding to public emergencies, including 

trauma-related incidents, and that are held for less than 

sixty-(60) days, but only that percentage of the owner's inventory 

necessary to treat victims of public emergencies by attending 

physicians or other emergency health care personnel.  In 

determining the market value of drug supplies held in surplus, the 

chief appraiser shall exclude as economic obsolescence from  the 

market value the value attributable to drug supplies held in 

surplus that exceed the amount of drugs held for normal market 

purposes.  For rendition purposes, in calculating the number of 

days drug supplies held in surplus are held in an inventory, the 

owner shall quantify the average number of days of the owner's 

day-to-day working inventory (cycle stock) that the owner holds to 

meet normal customer demand and shall subtract that number of days 

from the average number of days the owner holds the owner's total 

drug inventory.  When the owner renders the owner's total drug 

inventory, the owner shall include information sufficient to 

establish the validity of the owner's calculations under this 

subsection.  Notwithstanding any other provision of this 

subsection, the percentage of an owner's drug supplies held in 

surplus inventory may not exceed three-(3) days of the owner's 

total inventory of drugs as defined by the TEXAS FOOD, DRUG and 

COSMETIC ACT, Section 431.002(14), Health and Safety Code