Assigned to COM FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR S.B. 1096
firearms; contracts; prohibited practices
Purpose
Prohibits a public entity from entering into a contract of $100,000 or more with a company
to acquire or dispose of services, supplies, information technology or construction unless the
contract includes a written certification that the company does not, and will not, discriminate
against a firearm entity or firearm trade association.
Background
Current statute prohibits the state, a political subdivision of the state or an agency, board,
commission or department (public entity) from entering into a contract with a value of $100,000
or more with a company to acquire or dispose of services, supplies, information technology or
construction unless the contract includes a written certification that the company is not currently
engaged in, and agrees for the duration of the contract to not engage in, a boycott of goods and
services from Israel. A public entity may not adopt a procurement, investment or other policy that
has the effect of inducing or requiring a person or company to boycott Israel (A.R.S §§ 35-393 and
35-393.01).
Current statute also prohibits a public entity from entering into or renewing a contract with
a company to acquire or dispose of services, supplies, information technology, goods or
construction unless the contract includes a written certification that the company does not
currently, and agrees for the duration of the contract that it will not, use: 1) the forced labor of
ethnic Uyghurs in the People's Republic of China; 2) any goods or services produced by the forced
labor of ethnic Uyghurs in the People's Republic of China; or 3) any contractors, subcontractors
or suppliers that use the forced labor or any goods or services produced by the forced labor of
ethnic Uyghurs in the People's Republic of China (A.R.S. § 35-394).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits a public entity from entering into a contract with a value of $100,000 or more with a
company to acquire or dispose of services, supplies, information technology or construction
unless the contract includes a written certification that the company does not currently, and
agrees for the duration of the contract that it will not, discriminate against a firearm entity or
firearm trade association.
2. Exempts, from the written certification requirement, contracts entered into by a public entity
if either:
a) the contract is a sole source contract; or
b) the public entity does not receive a responsive bid from any company that is able to provide
the written certification. FACT SHEET
S.B. 1096
Page 2
3. Specifies that a public entity complies with the written certification requirement by including
a written certification that was submitted by the company as part of the procurement process.
4. Prohibits a public entity from adopting a procurement, investment or other policy that has the
effect of inducing or requiring a person or company to discriminate against a firearm entity or
firearm trade association.
5. Specifies that the written certification requirement and the public entity policy prohibition do
not apply to contracts entered into before the general effective date.
6. Defines public entity as the state, a political subdivision of the state or an agency, board,
commission or department of the state, or a political subdivision of the state, except a political
subdivision that operates a federal reclamation project.
7. Defines company as an organization, association, corporation, partnership, joint venture,
limited partnership, limited liability partnership, limited liability company or other entity or
business association, including a wholly owned subsidiary, majority-owned subsidiary, parent
company or affiliate, that engages in for-profit activity and that has 10 or more full-time
employees.
8. Defines discriminate as, based solely on its status as a firearm entity or firearm trade
association:
a) refusing to engage in trading any goods or services with a firearm entity or firearm trade
association;
b) refraining from continuing an existing business relationship with a firearm entity or firearm
trade association; or
c) terminating an existing business relationship with a firearm entity or firearm trade
association.
9. Excludes, from the definition of discriminate:
a) following the established policies of a merchant, retail seller or platform that restrict or
prohibit the listing or selling of ammunition, firearms or firearms accessories; and
b) refusing to engage in trading goods or services, refraining from continuing an existing
business relationship or terminating an existing business relationship in order to comply
with a federal, state or local law, policy, rule or regulation or for any traditional business
reason that is specific to the firearm entity or firearm trade association but is not based
solely on its status as a firearm entity or firearm trade association.
10. Defines firearm entity as either:
a) a firearm, firearm accessory or ammunition manufacturer, retailer, wholesaler, supplier or
distributor; or
b) an indoor or outdoor shooting range.
11. Defines firearm trade association as any person, corporation, unincorporated association,
federation, business league or professional or business organization that:
a) is not organized or operated for profit and for which no part of its net earning inures to the
benefit of any private shareholder or individual; FACT SHEET
S.B. 1096
Page 3
b) is a 501(c)(6) organization; and
c) has two or more members who are firearm, firearm accessory or ammunition manufacturers
or sellers.
12. Defines ammunition, firearm and firearm accessory.
13. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2023
JT/FB/sr