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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to the preference given by state agencies to goods offered  | 
      
      
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        by bidders in this state or manufactured, produced, or grown in this  | 
      
      
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        state or in the United States. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Sections 2155.444(a), (b), and (c), Government  | 
      
      
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        Code, are amended to read as follows: | 
      
      
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               (a)  The comptroller [commission] and all state agencies  | 
      
      
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        making purchases of goods, including agricultural products, shall  | 
      
      
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        promote the purchase of and give preference to goods manufactured,  | 
      
      
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        [those] produced, or grown in this state or offered by Texas bidders  | 
      
      
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        as follows: | 
      
      
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                     (1)  goods manufactured, produced, or offered by a  | 
      
      
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        Texas bidder that is owned by a service-disabled veteran who is a  | 
      
      
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        Texas resident shall be given a first preference and goods  | 
      
      
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        manufactured or produced in this state or offered by other Texas  | 
      
      
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        bidders shall be given second preference, if the cost to the state  | 
      
      
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        and quality are equal; and | 
      
      
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                     (2)  agricultural products grown in this state shall be  | 
      
      
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        given first preference and agricultural products offered by Texas  | 
      
      
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        bidders shall be given second preference, if the cost to the state  | 
      
      
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        and quality are equal. | 
      
      
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               (b)  If goods, including agricultural products,  | 
      
      
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        manufactured, produced, or grown in this state or offered by Texas  | 
      
      
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        bidders are not equal in cost and quality to other products, then  | 
      
      
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        goods, including agricultural products, manufactured, produced, or  | 
      
      
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        grown in other states of the United States shall be given preference  | 
      
      
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        over foreign products if the cost to the state and quality are  | 
      
      
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        equal. | 
      
      
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               (c)  In this section: | 
      
      
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                     (1)  "Agricultural products" includes textiles and  | 
      
      
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        other similar products. | 
      
      
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                     (2)  "Manufactured" means, with respect to assembled  | 
      
      
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        goods, the final assembly, processing, packaging, testing, or other  | 
      
      
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        process that adds value, quality, or reliability. | 
      
      
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                     (3) [(1-a)]  "Service-disabled veteran" means a person  | 
      
      
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        who is a veteran as defined by 38 U.S.C. Section 101(2) and who has a  | 
      
      
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        service-connected disability as defined by 38 U.S.C. Section  | 
      
      
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        101(16). | 
      
      
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                     (4) [(2)]  "Texas bidder" means a business: | 
      
      
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                           (A)  incorporated in this state; | 
      
      
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                           (B)  that has its principal place of business in  | 
      
      
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        this state; or | 
      
      
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                           (C)  that has an established physical presence in  | 
      
      
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        this state. | 
      
      
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               SECTION 2.  The change in law made by this Act applies only  | 
      
      
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        to a contract for goods that is entered into on or after the  | 
      
      
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        effective date of this Act. A contract entered into before the  | 
      
      
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        effective date of this Act is governed by the law in effect on the  | 
      
      
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        date the contract was entered into, and the former law is continued  | 
      
      
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        in effect for that purpose. | 
      
      
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               SECTION 3.  This Act takes effect September 1, 2013. |