Relating to a preference in state purchasing for certain goods and services produced or provided by private commercial sources in Texas.

HB 3638 requires Texas state agencies to give preference to goods and services produced or provided by Texas-based businesses when cost and quality are equal. It creates a two-tier preference system: first preference for goods/services from Texas businesses owned by service-disabled veteran residents, and second preference for other Texas businesses. The bill specifically applies to agricultural products, native vegetation for landscaping, and advertising services, with definitions clarifying "Texas bidder" as businesses incorporated, headquartered, or operating physically in Texas. This policy directly affects state procurement decisions and Texas businesses competing for state contracts.