HB 3638

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
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
(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.
(1)  "Agricultural products" includes textiles and
(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
(2)  "Texas bidder" means a business:
(A)  incorporated in this state;
(B)  that has its principal place of business in
(C)  that has an established physical presence in
(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
(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
(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
(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
(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.