Buy Texan, Buy American... Just not in Texas

[crashhelmet]

Texas Legislature passes the "Buy Texan, Buy American" bill 24-7 in the Senate and a unanimous 145-0 in the House of Representatives.

This bill states that if the State needs a product and they can find one of equal quality and cost, the required order of choice is Texas made, American made, and then foreign made.

In fact, the first priority in the list is:

goods manufactured, 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

This bill would help to support job growth and the economy in Texas as well as other areas around the country.

Not surprisingly, Governor Rick Perry vetoed it.

Many speculate he did it for his lobbyists that make money from foreign companies. I'm of that thinking as well.

Link to the Bill from the Texas State Legislature site

From NBC in Dallas Ft Worth
From Forward Progressives

[Rapscallion]

So, free market be damned?

Rapscallion

[Gravekeeper]

Not surprisingly, Governor Rick Perry vetoed it.

Normally I would say it could be over possible problems or loopholes with protectionist issues. But Rick Perry is not that smart. So lobbyists it is.

[Kheldarson]

So, free market be damned?

Rapscallion

Technically, the governor would be standing up for the free market by denying this...except it only affects the state government.

Which isn't complete free market at all.

They have all kinds of rules about the bidding process for things they need in terms of supplies and projects.

[Panacea]

The law would quickly be twisted to favor Texan businesses, forcing the state to pay higher prices than they normally would. I don't like Rick Perry much, but he actually did the smart thing for the state's finances, which are in horrible shape right now.

[D_Yeti_Esquire]

Yea, don't talk to me about the free market when it comes to the Texas State government and municipalities. I think it was just a feel good bill that everyone could vote for and let Perry be the heavy on. Here's the thing, if they they truly want to do this they can override it and if support is really 175-0 why wouldn't you?

The trick is that the way Texas runs its legislature the veto could throw this into one of those dead periods where they legislature isn't doing anything. Still, if they want this bill and it's actually this supported, it will pass via override. But I don't think it will, because it was always about scoring points.

Regarding the bill itself, it couldn't be twisted by Texas businessmen by raising their prices or the comptroller can select the cheaper substitute. The bill requires equal pricing to be effective. What it could mean is they skimp on construction leading to inferior product purchases. It would also mean you are absolutely SCREWED if you are not a service-disabled veteran and you run a business that supplies the government because the government has to give veterans first priority. Believe me, companies will exploit with token ownership.

I'd be curious if this had passed if it wouldn't be challenged underneath the commerce clause. But since its just tying the local state governments hands, I doubt it.

[Gravekeeper]

The law would quickly be twisted to favor Texan businesses, forcing the state to pay higher prices than they normally would.

That was kind of what I was thinking. On the surface it sounds like a Good Thing(tm) but there's no way it didn't have some catch or loophole too it. However, I am hestitant to attribute any sort of intelligence or cunning to Rick Perry. ;p

[HYHYBT]

One other problem, at least as worded here: equal price and quality, but not necessarily equal availability? As in, "I can make those just as cheap, but it will take longer?"

[bainsidhe]

Quote: (1)goods manufactured, 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
manufactured or 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;

So if I read this correctly, a service-disable veteran just has to "offer" goods, not necessarily produce them. Wouldn't this just mean they'd offer to resell imported items? Other Texas residents have to manufacture or produce the goods in order to be considered. Yeah, I can't see how this is a problem. /sarcasm.

At the end of the day, it still comes down to price and quality. If you're building a bridge, you'll pay for higher quality because you don't want the bridge collapsing. If you're reviewing the annual pencil budget, you'll buy the cheapest crap available.