By Fraser                                              S.B. No. 443
         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.