By Mowery H.B. No. 1401 77R4258 MCK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to analyzing the use of warehouse space by certain state 1-3 agencies. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter C, Chapter 2167, Government Code, is 1-6 amended by adding Section 2167.105 to read as follows: 1-7 Sec. 2167.105. WAREHOUSE SPACE USE STUDY. (a) The 1-8 commission shall evaluate the operation of the first four 1-9 state-leased warehouses in Austin for which the leases expire after 1-10 October 1, 2001. The commission shall work with the state agency 1-11 that operates the warehouse to reduce inefficient warehouse space 1-12 use and adopt practices that can reduce the agency's need for 1-13 warehouse space and eliminate warehouse leases. 1-14 (b) The commission and the state agency shall: 1-15 (1) identify excess inventory; 1-16 (2) determine the most appropriate ways to eliminate 1-17 excess inventory; and 1-18 (3) determine the extent to which the state agency 1-19 uses the following management principles in operating the 1-20 warehouse: 1-21 (A) automated order processing; 1-22 (B) training customers how to use the supply 1-23 system; 1-24 (C) changing relationships with suppliers to 2-1 reduce inventory maintained by the state agency; 2-2 (D) establishing supplier support agreements to 2-3 reduce the time for delivery from a supplier; 2-4 (E) training supply staff to use information to 2-5 manage supplies; and 2-6 (F) reducing administrative cycle times through 2-7 automation. 2-8 (c) The commission shall assist the state agency operating 2-9 the warehouse in developing a plan to reduce the need for warehouse 2-10 space by reducing inventory, selling surplus property, and 2-11 efficiently managing warehouse operations. Each agency shall 2-12 include the plan as part of its strategic plan submitted under 2-13 Chapter 2056 during calendar year 2002. 2-14 (d) This section expires September 1, 2003. 2-15 SECTION 2. This Act takes effect September 1, 2001.