Texas Senate Bill SB39

Texas 2015 - 84th Regular

• Filed: 11/10/14

Caption

Relating to the preference given by state and local governmental entities, including public institutions of higher education, to agricultural products produced or grown in this state.

Impact

The implications of SB39 are significant, as it will alter existing purchasing policies of school districts, state agencies, and local governments concerning agricultural products. Notably, the bill creates a two-tier system of preference; products from service-disabled veteran-owned Texas bidders are given the utmost priority. The preference extends to local governmental entities to give first preference to Texas agricultural products when costs and quality are equal. The goal is to reduce reliance on out-of-state agricultural products and to energize Texas's agricultural market.

Summary

Senate Bill 39 aims to establish a preference for agricultural products produced or grown in Texas by both state and local governmental entities. The bill stipulates that such entities, including public institutions of higher education, must prioritize Texas agricultural products in their purchasing decisions if the cost and quality are competitive with alternatives from outside the state. This legislation is positioned as a means to support local farmers and strengthen the state's agricultural economy by ensuring that Texas-produced goods receive priority in government contracts and procurements.

Contention

While the bill is largely supported by agriculture proponents, it may face scrutiny regarding its real-world applicability and enforcement. Critics may argue that such preferences could lead to potential increases in costs for state entities if local products are more expensive but of equal quality. Additionally, the stipulation that Texas products may be favored even if their costs are slightly above alternatives from other states raises questions about market competition. The balance between supporting local businesses and ensuring fiscal responsibility will be a key point of contention as the bill progresses.