4) "Local government" means a:
(A) county, municipality, special district, or other political subdivision of this state or another state ; or
(B) combination of two or more of those entities.
SECTION 2. Section 791.011 GOV'T, Government Code, is amended by amending Subsection (b) and adding Subsection (g) to read as follows:
(b) A party to an interlocal contract may contract with a:
(1) state agency, as that term is defined by Section 771.002; or
(2) similar agency of another state.
(g) A governmental entity of this state or another state that makes purchases or provides purchasing services under an interlocal contract for a state agency, as that term is defined by Section 771.002, must comply with Chapter 2161 in making the purchases or providing the services.