BILL ANALYSIS


                                                     C.S.S.B. 525
                                                        By: Lucio
                                                      Agriculture
                                                         04-05-95
                                   Committee Report (Substituted)
BACKGROUND

Current Texas law encourages state agencies to purchase Texas
products if practicable or cost effective.  The agricultural
economy of Texas will improve if Texas schools and universities are
also encouraged to purchase Texas citrus and agriculture products
as long as the cost and quality standards are equal or better.

PURPOSE

As proposed, C.S.S.B. 525 requires Texas public schools and
universities to give first preference to purchasing Texas-grown
products and second preference to products offered by Texas
bidders.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

     SECTION 1.     Amends Chapter 51Z, Education Code, by adding Section
51.940, as follows:

     Sec.  51.940.  PURCHASE OF AGRICULTURAL PRODUCTS.  (a)
     Requires a higher education institution (institution) that
     purchases agricultural products to give first preference to
     products grown, produced, or processed in this state if the
     cost to the institution and the quality of the products are
     equal to the cost and quality of other available products.
     
     (b) Requires an institution to ensure that bid
       specifications used by the institution for the purchase of
       agricultural products do not preclude or discourage the
       purchase of products grown, produced, or processed in this
       state.
       
       (c) Defines "institution of higher education."
     SECTION 2.     Effective date: September 1, 1995.

SECTION 3. Emergency clause.