Floor Packet Page No. 58 Amend HB 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