S.B. No. 19

	AN ACT
	relating to prohibited contracts with companies that discriminate
	against the firearm or ammunition industries.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle F, Title 10, Government Code, is
	amended by adding Chapter 2274 to read as follows:
	CHAPTER 2274. PROHIBITION ON CONTRACTS WITH COMPANIES THAT
	DISCRIMINATE AGAINST FIREARM AND AMMUNITION INDUSTRIES
	Sec. 2274.001.  DEFINITIONS. In this chapter:
	(1)  "Ammunition" means a loaded cartridge case,
	primer, bullet, or propellant powder with or without a projectile.
	(2)  "Company" means a for-profit organization,
	association, corporation, partnership, joint venture, limited
	partnership, limited liability partnership, or limited liability
	company, including a wholly owned subsidiary, majority-owned
	subsidiary, parent company, or affiliate of those entities or
	associations that exists to make a profit.  The term does not
	include a sole proprietorship.
	(3)  "Discriminate against a firearm entity or firearm
	trade association":
	(A)  means, with respect to the entity or
	association, to:
	(i)  refuse to engage in the trade of any
	goods or services with the entity or association based solely on its
	status as a firearm entity or firearm trade association;
	(ii)  refrain from continuing an existing
	business relationship with the entity or association based solely
	on its status as a firearm entity or firearm trade association; or
	(iii)  terminate an existing business
	relationship with the entity or association based solely on its
	status as a firearm entity or firearm trade association; and
	(B)  does not include:
	(i)  the established policies of a merchant,
	retail seller, or platform that restrict or prohibit the listing or
	selling of ammunition, firearms, or firearm accessories; and
	(ii)  a company's refusal to engage in the
	trade of any goods or services, decision to refrain from continuing
	an existing business relationship, or decision to terminate an
	existing business relationship:
	(aa)  to comply with federal, state, or
	local law, policy, or regulations or a directive by a regulatory
	agency; or
	(bb)  for any traditional business
	reason that is specific to the customer or potential customer and
	not based solely on an entity's or association's status as a firearm
	entity or firearm trade association.
	(4)  "Firearm" means a weapon that expels a projectile
	by the action of explosive or expanding gases.
	(5)  "Firearm accessory" means a device specifically
	designed or adapted to enable an individual to wear, carry, store,
	or mount a firearm on the individual or on a conveyance and an item
	used in conjunction with or mounted on a firearm that is not
	essential to the basic function of the firearm. The term includes a
	detachable firearm magazine.
	(6)  "Firearm entity" means:
	(A)  a firearm, firearm accessory, or ammunition
	manufacturer, distributor, wholesaler, supplier, or retailer; and
	(B)  a sport shooting range as defined by Section
	250.001, Local Government Code.
	(7)  "Firearm trade association" means any person,
	corporation, unincorporated association, federation, business
	league, or business organization that:
	(A)  is not organized or operated for profit and
	for which none of its net earnings inures to the benefit of any
	private shareholder or individual;
	(B)  has two or more firearm entities as members;
	and
	(C)  is exempt from federal income taxation under
	Section 501(a), Internal Revenue Code of 1986, as an organization
	described by Section 501(c) of that code.
	(8)  "Governmental entity" has the meaning assigned by
	Section 2251.001.
	Sec. 2274.002.  PROVISION REQUIRED IN CONTRACT. (a)  This
	section applies only to a contract that:
	(1)  is between a governmental entity and a company
	with at least 10 full-time employees; and
	(2)  has a value of at least $100,000 that is paid
	wholly or partly from public funds of the governmental entity.
	(b)  Except as provided by Subsection (c) and Section
	2274.003, a governmental entity may not enter into a contract with a
	company for the purchase of goods or services unless the contract
	contains a written verification from the company that it:
	(1)  does not have a practice, policy, guidance, or
	directive that discriminates against a firearm entity or firearm
	trade association; and
	(2)  will not discriminate during the term of the
	contract against a firearm entity or firearm trade association.
	(c)  Subsection (b) does not apply to a governmental entity
	that:
	(1)  contracts with a sole-source provider; or
	(2)  does not receive any bids from a company that is
	able to provide the written verification required by that
	subsection.
	Sec. 2274.003.  CERTAIN CONTRACTS EXEMPTED. (a) A contract
	entered into in connection with or relating to the issuance, sale,
	or delivery of notes under Subchapter H, Chapter 404, or the
	administration of matters related to the notes, including the
	investment of note proceeds, is exempt from this chapter if, in the
	comptroller's sole discretion, the comptroller determines that
	compliance with Section 2274.002 is likely to prevent:
	(1)  an issuance, sale, or delivery that is sufficient
	to address the general revenue cash flow shortfall forecast; or
	(2)  the administration of matters related to the
	notes.
	(b)  Before making a determination under Subsection (a), the
	comptroller must:
	(1)  survey potential respondents or bidders to a
	solicitation for a contract described by Subsection (a) to
	determine the number of qualified potential respondents or bidders
	that are able to provide the written verification required by
	Section 2274.002; and
	(2)  evaluate the historical bidding performance of
	qualified potential bidders.
	SECTION 2.  The change in law made by this Act applies only
	to a contract entered into on or after the effective date of this
	Act. A contract entered into before the effective date of this Act
	is governed by the law as it existed immediately before the
	effective date of this Act, and that law is continued in effect for
	that purpose.
	SECTION 3.  This Act takes effect September 1, 2021.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 19 passed the Senate on
	April 15, 2021, by the following vote: Yeas 18, Nays 12; and that
	the Senate concurred in House amendments on May 28, 2021, by the
	following vote: Yeas 19, Nays 12.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 19 passed the House, with
	amendments, on May 13, 2021, by the following vote: Yeas 86,
	Nays 60, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor