76R9671 BDH-D                           
         By Flores, McReynolds                                  H.B. No. 597
         Substitute the following for H.B. No. 597:
         By Oliveira                                        C.S.H.B. No. 597
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to preference to Texas and United States products in
 1-3     purchasing by school districts; providing a civil penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 44, Education Code, is
 1-6     amended by adding Section 44.042 to read as follows:
 1-7           Sec. 44.042.  PREFERENCE TO TEXAS AND UNITED STATES PRODUCTS;
 1-8     CIVIL PENALTY.  (a)  A school district that purchases goods,
 1-9     including agricultural products, shall give preference to those
1-10     produced, processed, or grown in this state if the cost to the
1-11     school district is equal and the quality is comparable.
1-12           (b)  If goods, including agricultural products, produced,
1-13     processed, or grown in this state are not equal in cost and
1-14     comparable in quality to other products, the school district shall
1-15     give preference to goods produced, processed, or grown in other
1-16     states of the United States over foreign products if the cost to
1-17     the school district is equal and the quality is comparable.
1-18           (c)  A school district that purchases vegetation for
1-19     landscaping purposes, including plants, shall give preference to
1-20     Texas vegetation if the cost to the school district is equal and
1-21     the quality is comparable.
1-22           (d)  A school district that violates this section or a rule
1-23     adopted under this section is liable for a civil penalty not to
1-24     exceed $5,000 in addition to any injunctive relief or other remedy
 2-1     provided by law.
 2-2           (e)  The attorney general or a county or district attorney,
 2-3     at the request of the commissioner, may bring a civil action to
 2-4     collect a civil penalty under this section.
 2-5           (f)  A contract awarded in violation of this section is void.
 2-6           (g)  In the implementation of this section, a school district
 2-7     may receive assistance from and use the resources of the Texas
 2-8     Department of Agriculture, including information on availability of
 2-9     agricultural products.
2-10           (h)  A school district may not adopt product purchasing
2-11     specifications that unnecessarily exclude goods produced,
2-12     processed, or grown in this state.
2-13           (i)  In this section:
2-14                 (1)  "Agricultural products" includes textiles and
2-15     other similar products.
2-16                 (2)  "Processed" means canning, freezing, drying,
2-17     juicing, preserving, or any other act that changes the form of a
2-18     good from its natural state to another form.
2-19           SECTION 2.  The Texas Education Agency shall conduct an
2-20     analysis of purchases by school districts to determine the
2-21     effectiveness of Section 44.042, Education Code, as added by this
2-22     Act, and shall report the results of its analysis to the governor,
2-23     lieutenant governor, and speaker of the house of representatives
2-24     not later than January 1, 2001.
2-25           SECTION 3.  This Act takes effect September 1, 1999.
2-26           SECTION 4.  The importance of this legislation and the
2-27     crowded condition of the calendars in both houses create an
 3-1     emergency and an imperative public necessity that the
 3-2     constitutional rule requiring bills to be read on three several
 3-3     days in each house be suspended, and this rule is hereby suspended.