By Flores                                             H.B. No. 1172
         77R4468 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the implementation of a "just-in-time" inventory pilot
 1-3     program by the Texas Department of Transportation for the purchase
 1-4     of certain supplies.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter I, Chapter 201, Transportation Code, is
 1-7     amended by adding Section 201.705 to read as follows:
 1-8           Sec. 201.705.  JUST-IN-TIME INVENTORY PILOT PROGRAM. (a)
 1-9     Before January 1, 2002, the General Services Commission and the
1-10     department shall implement a "just-in-time" inventory pilot program
1-11     for the purchase of office and janitorial supplies for the
1-12     department in small quantities with frequent deliveries.
1-13           (b)  The General Services Commission and the department shall
1-14     determine which office supplies and janitorial items are to be
1-15     included in the pilot program.
1-16           (c)  To the extent necessary to implement the inventory pilot
1-17     program, the department or the General Services Commission, as
1-18     applicable, may modify the terms of contracts offered to vendors as
1-19     part of the pilot program to ensure that items are delivered to the
1-20     department within 24 to 48 hours from the time the department
1-21     orders those items.
1-22           (d)  To the extent practicable, items to be purchased under
1-23     the pilot program should not be inventoried at a regional supply
1-24     center or district warehouse of the department, but should be
 2-1     delivered directly to the location where they are to be used.
 2-2           (e)  The General Services Commission and the department shall
 2-3     use as the model for the pilot program under this section the
 2-4     program for "just-in-time" inventory approaches for the purchase of
 2-5     office supplies and the program for the purchase of office or
 2-6     janitorial supplies adopted by other states with populations that
 2-7     exceed the population of this state.
 2-8           (f)  Under the pilot program developed by the General
 2-9     Services Commission and the department, the department should offer
2-10     one contract for office supplies and a separate contract for
2-11     janitorial items.  A contract offered under the pilot program must:
2-12                 (1)  require service guarantees similar to those
2-13     required by the programs in the other states; and
2-14                 (2)  allow orders to be placed by telephone, facsimile,
2-15     mail, or the Internet, with the Internet to be used as the primary
2-16     communication mode.
2-17           (g)  This section expires December 31, 2003.
2-18           SECTION 2.  This Act takes effect immediately if it receives
2-19     a vote of two-thirds of all the members elected to each house, as
2-20     provided by Section 39, Article III, Texas Constitution.  If this
2-21     Act does not receive the vote necessary for immediate effect, this
2-22     Act takes effect September 1, 2001.