1-1     By:  Fraser                                            S.B. No. 443
 1-2           (In the Senate - Filed January 29, 2001; January 30, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     February 14, 2001, reported favorably by the following vote:  Yeas
 1-5     8, Nays 0; February 14, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to analyzing the use of warehouse space by certain state
 1-9     agencies.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter C, Chapter 2167, Government Code, is
1-12     amended by adding Section 2167.105 to read as follows:
1-13           Sec. 2167.105.  WAREHOUSE SPACE USE STUDY.  (a)  The
1-14     commission shall evaluate the operation of the first four
1-15     state-leased warehouses in Austin for which the leases expire after
1-16     October 1, 2001.  The commission shall work with the state agency
1-17     that operates the warehouse to reduce inefficient warehouse space
1-18     use and adopt practices that can reduce the agency's need for
1-19     warehouse space and eliminate warehouse leases.
1-20           (b)  The commission and the state agency shall:
1-21                 (1)  identify excess inventory;
1-22                 (2)  determine the most appropriate ways to eliminate
1-23     excess inventory; and
1-24                 (3)  determine the extent to which the state agency
1-25     uses the following management principles in operating the
1-26     warehouse:
1-27                       (A)  automated order processing;
1-28                       (B)  training customers how to use the supply
1-29     system;
1-30                       (C)  changing relationships with suppliers to
1-31     reduce inventory maintained by the state agency;
1-32                       (D)  establishing supplier support agreements to
1-33     reduce the time for delivery from a supplier;
1-34                       (E)  training supply staff to use information to
1-35     manage supplies; and
1-36                       (F)  reducing administrative cycle times through
1-37     automation.
1-38           (c)  The commission shall assist the state agency operating
1-39     the warehouse in developing a plan to reduce the need for warehouse
1-40     space by reducing inventory, selling surplus property, and
1-41     efficiently managing warehouse operations.  Each agency shall
1-42     include the plan as part of its strategic plan submitted under
1-43     Chapter 2056 during calendar year 2002.
1-44           (d)  This section expires September 1, 2003.
1-45           SECTION 2.  This Act takes effect September 1, 2001.
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