bill telling state agencies to prefer private businesses

The text as introduced · 704 words

By: Troxclair
H.B. No. 3638

A BILL TO BE ENTITLED

AN ACT

relating to a preference against state resources being used to

compete against private commercial sources.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Amend Sec. 2155.444, Government Code, by adding

new Subsection (i) as follows:

Sec. 2155.444. PREFERENCE TO TEXAS AND UNITED STATES

PRODUCTS AND TEXAS SERVICES. (a) The comptroller and all state

agencies making purchases of goods, including agricultural

products, shall give preference to those produced or grown in this

state or offered by Texas bidders as follows:

(1) goods produced or offered by a Texas bidder that is

owned by a service-disabled veteran who is a Texas resident shall be

given a first preference and goods produced in this state or offered

by other Texas bidders shall be given second preference, if the cost

to the state and quality are equal; and

(2) agricultural products grown in this state shall be

given first preference and agricultural products offered by Texas

bidders shall be given second preference, if the cost to the state

and quality are equal.

(b) If goods, including agricultural products, produced or

grown in this state or offered by Texas bidders are not equal in

cost and quality to other products, then goods, including

agricultural products, produced or grown in other states of the

United States shall be given preference over foreign products if

the cost to the state and quality are equal.

(c) In this section:

(1) "Agricultural products" includes textiles and

other similar products.

(1-a) "Service-disabled veteran" means a person who is

a veteran as defined by 38 U.S.C. Section 101(2) and who has a

service-connected disability as defined by 38 U.S.C. Section

101(16).

(2) "Texas bidder" means a business:

(A) incorporated in this state;

(B) that has its principal place of business in

this state; or

(C) that has an established physical presence in

this state.

(d) The comptroller and all state agencies making purchase

of vegetation for landscaping purposes, including plants, shall

give preference to Texas vegetation native to the region if the cost

to the state is not greater and the quality is not inferior.

(e) The comptroller and all state agencies procuring

services shall give first preference to services offered by a Texas

bidder that is owned by a service-disabled veteran who is a Texas

resident and shall give second preference to services offered by

other Texas bidders if:

(1) the services meet state requirements regarding the

service to be performed and expected quality; and

(2) the cost of the service does not exceed the cost of

other similar services of similar expected quality that are offered

by a bidder that is not entitled to a preference under this

subsection.

(f) The comptroller and each state agency conducting an

advertising campaign that involves the creation or production of a

commercial shall give preference to a commercial production company

and advertising agency located in this state if:

(1) the services meet state requirements regarding the

service to be performed and regarding expected quality; and

(2) the cost of the service does not exceed the cost of

other similar services of similar expected quality that are offered

by a bidder that is not entitled to a preference under this

subsection.

(g) For purposes of Subsection (f), "commercial production

company" means a corporation, limited liability company,

partnership, or other private entity that includes as one of its

purposes the production of one or more television, film, radio, or

other media-related commercials.

(h) The Music, Film, Television, and Multimedia Office

within the office of the governor has exclusive rulemaking

authority for purposes of:

(1) determining whether an advertising campaign is

subject to the requirements of this section;

(2) establishing a bid process for purposes of the

services described by Subsection (f); and

(3) establishing criteria to determine whether a

commercial production company or advertising agency is located in

this state for the purposes of this section.

(i) The comptroller and all state agencies shall give

preference to goods and services produced by private commercial

sources rather than use state funds, unless specifically directed

by the legislature, to produce competing goods and services.

SECTION 2. This Act takes effect September 1, 2025.