82R6453 YDB-D
	By: Davis of Dallas	H.B. No. 1655

	A BILL TO BE ENTITLED
	AN ACT
	relating to the preference given by state agencies to goods offered
	by bidders in this state or manufactured, produced, or grown in this
	state or in the United States.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 2155.444, Government Code, is amended by
	amending Subsections (a), (b), and (c) and adding Subsections
	(a-1), (b-1), (b-2), (b-3), and (b-4) to read as follows:
	(a)  The comptroller [commission] and all state agencies
	making purchases of goods, including agricultural products, shall
	promote the purchase of and give preference to goods manufactured,
	[those] produced, or grown in this state or offered by Texas bidders
	as follows:
	(1)  unless the state agency determines that the goods
	are not available in reasonably sufficient quantities,  goods
	manufactured, 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)  unless the state agency determines that the
	agricultural products are not available in reasonably sufficient
	quantities,  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].
	(a-1)  A state agency that determines goods manufactured,
	produced, or grown in this state or offered by a Texas bidder are
	not available in reasonably sufficient quantities shall:
	(1)  at least 30 days before purchasing the goods
	publish a copy of the agency's determination for public comment;
	(2)  file a written copy of the determination with the
	comptroller and other relevant state agencies; and
	(3)  work with the comptroller and other state agencies
	to ensure the goods are available from a Texas bidder in the future.
	(b)  If goods, including agricultural products,
	manufactured, produced, or grown in this state or offered by Texas
	bidders are not available in reasonably sufficient quantities, the
	[equal in cost and quality to other products, then] goods,
	including agricultural products, manufactured, produced, or grown
	in other states of the United States shall be given preference over
	foreign products unless the agency determines that the goods are
	not available in reasonably sufficient quantities [if the cost to
	the state and quality are equal].
	(b-1)  A state agency that determines goods manufactured,
	produced, or grown in another state are not available in reasonably
	sufficient quantities shall:
	(1)  at least 30 days before purchasing the goods
	publish a copy of the agency's determination for public comment;
	(2)  file a written copy of the determination with the
	comptroller and other relevant state agencies; and
	(3)  work with the comptroller and other state agencies
	to ensure the goods are available from a Texas bidder or from
	another state in the future.
	(b-2)  A contract between a state agency and any person who
	is given preference under this section must contain a provision
	that requires the person to certify the goods provided under the
	contract or any subcontract are manufactured, produced, or grown in
	this state or in the United States or offered by a Texas bidder, as
	applicable.
	(b-3)  If a state agency determines a person who was awarded
	a contract through the use of a preference under Subsection (a) or
	(b) knowingly provided goods under the contract that were not
	manufactured, produced, or grown in this state or another state of
	the United States or offered by a Texas bidder, as applicable, the
	contracting agency and all other state agencies are prohibited from
	contracting with the person before the fifth anniversary of the
	date the contracting agency made the determination. The
	contracting agency shall notify the comptroller of the
	determination and the comptroller shall notify all other state
	agencies of the determination. The contracting agency may:
	(1)  void the contract with the person; and
	(2)  recover damages in a civil action in an amount
	equal to three times the value of the preference given to the
	person.
	(b-4)  Nothing in this section is intended to contravene an
	existing treaty, law, agreement, or regulation of the United
	States. A preference may not be granted under this section if the
	preference would contravene any treaty, law, agreement, or
	regulation of the United States.
	(c)  In this section:
	(1)  "Agricultural products" includes textiles and
	other similar products.
	(2)  "Manufactured" means, with respect to assembled
	goods, the final assembly, processing, packaging, testing, or other
	process that adds value, quality, or reliability.
	(3) [(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).
	(4) [(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.
	SECTION 2.  The change in law made by this Act applies only
	to a contract for goods that is entered into on or after the
	effective date of this Act. A contract entered into before the
	effective date of this Act is governed by the law in effect on the
	date the contract was entered into, and the former law is continued
	in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2011.