79R7832 MCK-D

By:  Rose                                                         H.B. No. 2252



A BILL TO BE ENTITLED

AN ACT

relating to state purchases from foreign corporations.                        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 2155, Government Code, is 
amended by adding Section 2155.0775 to read as follows:
	Sec. 2155.0775.  PURCHASES FROM FOREIGN CORPORATIONS 
PROHIBITED.  (a)  In this section, "foreign corporation" means a 
corporation that is incorporated under the laws of a jurisdiction 
other than the United States or any state in the United States.
	(b)  Except as provided by Subsection (c), a foreign 
corporation may not participate in state contracts that are subject 
to this subtitle, including contracts for which purchasing 
authority is delegated to a state agency.
	(c)  This section does not apply to a foreign corporation 
that engages in business in this state and that has a physical 
office in this state.
	SECTION 2.  Section 2155.0775, Government Code, as added by 
this Act, applies only to a contract entered into or renewed on or 
after the effective date of this Act.  A contract in existence on 
the effective date of this Act is governed by the law as it existed 
when the contract was made.
	SECTION 3.  This Act takes effect September 1, 2005.