Relating to programs to promote economic development in the Office of the Governor and to the repeal of the governor's broadband development council.

Contracts

• Supply Chain Agreements: Review Master Supply Agreements (MSAs) for components used in "Made in Texas" products. You must amend these contracts to require vendors to provide immediate notification of manufacturing location changes. A vendor silently shifting production from Texas to Mexico could drop your total Texas content below 51%, creating immediate liability for false advertising.
• Grant Agreements: Semiconductor entities currently negotiating with the state should pause and review terms. Signatory authority has shifted; ensure your contracts reference the Office of the Governor rather than the Consortium’s Executive Committee.

Hiring/Training

• Marketing & Product Teams: Train staff on the new 51% threshold. They must understand that "Made in Texas" is no longer a subjective claim but a mathematical calculation.
• Procurement Staff: Staff must be trained to flag non-Texas sourcing decisions that might imperil the 51% threshold for key SKUs.

Reporting & Record-Keeping

• Origin Verification Files: For every SKU carrying the "Made in Texas" label, you must generate and retain a Bill of Materials (BOM) analysis. This document must explicitly calculate the cost of "significant parts" and the location of "significant processing" to prove the 51% threshold is met in the event of a DTPA (Deceptive Trade Practices Act) audit.
• Semiconductor Reporting: The reporting burden has shifted from the Consortium to the Governor's Office. External stakeholders are no longer responsible for the biennial report to the Legislature.

Fees & Costs

• No New Fees: The bill does not introduce new filing fees.
• Marketing Savings: Businesses previously barred from the "Made in Texas" label due to minor out-of-state components can now utilize the brand, potentially increasing market share without altering supply chains.