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