H.B. No. 535

	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.  Sections 2155.444(a), (b), and (c), Government
	Code, are amended 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)  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
	manufactured or 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,
	manufactured, 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, manufactured, 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.
	(2)  "Manufactured" means, with respect to a
	manufactured good, an item produced as a result of a manufacturing
	process that alters the form or function of components, including
	articles, materials, or supplies, that are directly incorporated
	into the item in a manner that adds value and transforms the
	components, and that is functionally distinct from a finished item
	produced merely from assembling the components into the item.
	(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, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 535 was passed by the House on April
	23, 2013, by the following vote:  Yeas 146, Nays 0, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 535 on May 13, 2013, by the following vote:  Yeas 145, Nays 0, 1
	present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 535 was passed by the Senate, with
	amendments, on May 8, 2013, by the following vote:  Yeas 23, Nays 7.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor