Texas Senate Bill SB 2416

Texas 2025 - 89th Regular

• Filed: 3/12/25

Caption

Relating to a preference against state resources being used to compete against private commercial sources.

Summary

SB 2416 would expand Texas procurement preferences for state purchases of goods and services. The bill directs the comptroller and state agencies to favor Texas-produced goods, Texas bidders, Texas-grown agricultural products, Texas-native vegetation, and certain Texas-based service providers when cost and quality are comparable. It also gives special first preference to Texas bidders and service providers owned by service-disabled veterans who are Texas residents, and it extends preference to Texas-located commercial production companies and advertising agencies for state advertising campaigns involving commercials. In addition to these procurement preferences, the bill adds a broader policy statement that state agencies should prefer private commercial sources over using state funds to produce competing goods and services, unless the legislature specifically directs otherwise. The bill assigns rulemaking authority for the advertising-campaign provisions to the Music, Film, Television, and Multimedia Office in the governor’s office, including authority to determine when an advertising campaign is covered and how to evaluate whether a company is located in Texas.

Impact

The bill would amend Section 2155.444 of the Government Code and broaden existing state purchasing preferences, affecting how the comptroller and state agencies evaluate bids for goods, agricultural products, services, landscaping vegetation, and commercial production/advertising work. It would strengthen in-state and U.S.-based sourcing preferences, add a specific preference for service-disabled veteran-owned businesses, and create a new directive limiting state competition with private commercial providers unless expressly authorized by the Legislature. The bill would take effect September 1, 2025, if enacted.

Sentiment

The available context shows the bill was referred to the Senate Business & Commerce Committee and there are no recorded votes or committee transcripts in the provided materials. Based on the bill text, the measure appears to reflect a pro-Texas, pro-private-sector procurement policy, with particular support for Texas businesses and veteran-owned firms. Because no debate record is provided, there is no documented public sentiment in the materials beyond the bill’s stated policy direction.

Contention

The main potential point of contention is the bill’s new restriction on using state resources to produce goods and services that compete with private commercial sources, which could be viewed as limiting state-run programs or in-house production. Another likely issue is the expanded preference structure, which may raise concerns about procurement flexibility, cost, competition, and how agencies determine whether a bidder or production company qualifies as Texas-based. The advertising-campaign provisions and the governor’s office rulemaking authority could also draw scrutiny from agencies, vendors, or stakeholders concerned about administrative control and implementation standards.