| 1 | 1 | | 86R9784 MCK-D |
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| 2 | 2 | | By: Johnson S.B. No. 788 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the preference given by state and local governmental |
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| 8 | 8 | | entities to agricultural products produced or grown in this state. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 44.042(a) and (b), Education Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (a) A school district that purchases agricultural products |
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| 13 | 13 | | shall give preference to those produced, processed, or grown in |
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| 14 | 14 | | this state if the cost to the school district is equal and the |
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| 15 | 15 | | quality is equal. A school district that purchases agricultural |
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| 16 | 16 | | products may give preference to products produced, processed, or |
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| 17 | 17 | | grown in this state if the cost to the school district does not |
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| 18 | 18 | | exceed 107 percent of the cost of agricultural products produced, |
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| 19 | 19 | | processed, or grown outside of this state and the quality is equal. |
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| 20 | 20 | | (b) If agricultural products produced, processed, or grown |
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| 21 | 21 | | in this state are not given a preference under Subsection (a) [equal |
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| 22 | 22 | | in cost and quality to other products], the school district shall |
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| 23 | 23 | | give preference to agricultural products produced, processed, or |
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| 24 | 24 | | grown in other states of the United States over foreign products if |
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| 25 | 25 | | the cost to the school district is equal and the quality is equal. |
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| 26 | 26 | | SECTION 2. Sections 2155.444(a) and (b), Government Code, |
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| 27 | 27 | | are amended to read as follows: |
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| 28 | 28 | | (a) The commission and all state agencies making purchases |
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| 29 | 29 | | of goods, including agricultural products, shall give preference to |
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| 30 | 30 | | those produced or grown in this state or offered by Texas bidders as |
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| 31 | 31 | | follows: |
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| 32 | 32 | | (1) goods produced or offered by a Texas bidder that is |
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| 33 | 33 | | owned by a service-disabled veteran who is a Texas resident shall be |
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| 34 | 34 | | given a first preference and goods produced in this state or offered |
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| 35 | 35 | | by other Texas bidders shall be given second preference, if the cost |
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| 36 | 36 | | to the state and quality are equal; and |
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| 37 | 37 | | (2) agricultural products grown in this state shall be |
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| 38 | 38 | | given first preference if the cost to the state and quality are |
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| 39 | 39 | | equal, and may be given first preference if the cost to the state |
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| 40 | 40 | | does not exceed 107 percent of the cost of agricultural products |
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| 41 | 41 | | grown outside of this state and the quality is equal, and |
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| 42 | 42 | | agricultural products offered by Texas bidders shall be given |
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| 43 | 43 | | second preference, if the cost to the state and quality are equal. |
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| 44 | 44 | | (b) If goods, including agricultural products, produced or |
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| 45 | 45 | | grown in this state or offered by Texas bidders are not given |
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| 46 | 46 | | preference under Subsection (a) [equal in cost and quality to other |
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| 47 | 47 | | products], then goods, including agricultural products, produced |
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| 48 | 48 | | or grown in other states of the United States shall be given |
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| 49 | 49 | | preference over foreign products if the cost to the state and |
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| 50 | 50 | | quality are equal. |
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| 51 | 51 | | SECTION 3. Subchapter Z, Chapter 271, Local Government |
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| 52 | 52 | | Code, is amended by adding Section 271.909 to read as follows: |
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| 53 | 53 | | Sec. 271.909. PREFERENCE FOR TEXAS AGRICULTURAL PRODUCTS. |
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| 54 | 54 | | (a) In this section, "local governmental entity" means a |
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| 55 | 55 | | municipality, county, special-purpose district or authority, or |
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| 56 | 56 | | other political subdivision of this state. The term does not |
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| 57 | 57 | | include a school district. |
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| 58 | 58 | | (b) A local governmental entity that purchases agricultural |
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| 59 | 59 | | products shall give preference to those produced or grown in this |
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| 60 | 60 | | state if the cost to the local governmental entity is equal and the |
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| 61 | 61 | | quality is equal. |
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| 62 | 62 | | (c) A local governmental entity that purchases agricultural |
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| 63 | 63 | | products may give preference to those products produced or grown in |
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| 64 | 64 | | this state if the cost to the local governmental entity does not |
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| 65 | 65 | | exceed 107 percent of the cost of agricultural products produced or |
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| 66 | 66 | | grown outside of this state and the quality is equal. |
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| 67 | 67 | | SECTION 4. The changes in law made by this Act apply only to |
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| 68 | 68 | | a contract for which a state agency, school district, or local |
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| 69 | 69 | | governmental entity first advertises or otherwise solicits bids, |
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| 70 | 70 | | proposals, offers, or qualifications on or after the effective date |
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| 71 | 71 | | of this Act. A contract for which a state agency, school district, |
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| 72 | 72 | | or local governmental entity first advertised or otherwise |
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| 73 | 73 | | solicited bids, proposals, offers, or qualifications before that |
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| 74 | 74 | | date is governed by the law in effect when the first advertisement |
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| 75 | 75 | | or solicitation was given, and the former law is continued in effect |
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| 76 | 76 | | for that purpose. |
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| 77 | 77 | | SECTION 5. This Act takes effect September 1, 2019. |
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