HLS 22RS-1993 REENGROSSED
2022 Regular Session
HOUSE BILL NO. 978
BY REPRESENTATIVE MIGUEZ
CONTRACTS: Provides relative to prohibition on certain governmental entity contracts
with companies that discriminate against firearm and ammunition industries
1 AN ACT
2To enact R.S. 38:2216.1 and R.S. 39:1602.2, relative to public contracts; to prohibit certain
3 discriminatory practices with respect to firearm associations, retailers, and
4 manufacturers; to provide for definitions; to provide restrictions on applicability; and
5 to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 38:2216.1 is hereby enacted to read as follows:
8 §2216.1. Prohibition on contracts with companies that discriminate against firearm
9 and ammunition industries
10 A. As used in this Section, the following terms shall have the following
11 meanings unless the context clearly indicates otherwise:
12 (1) "Ammunition" shall mean a loaded cartridge case, primer, bullet, or
13 propellant powder with or without a projectile.
14 (2) "Company" shall mean a for-profit organization, association, corporation,
15 partnership, joint venture, limited partnership, limited liability partnership, or limited
16 liability company that exists to make a profit. "Company" shall not mean a sole
17 proprietorship.
18 (3)(a) "Discriminate against a firearm entity or firearm trade association"
19 shall mean that the company:
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HB NO. 978
1 (i) Refuses to engage in the trade of any goods or services with the entity or
2 association based solely on its status as a firearm entity or firearm trade association.
3 (ii) Refrains from continuing an existing business relationship with the entity
4 or association based solely on its status as a firearm entity or firearm trade
5 association.
6 (iii) Terminates an existing business relationship with the entity or
7 association based solely on its status as a firearm entity or firearm trade association.
8 (b) A company does not "discriminate against a firearm entity or firearm
9 trade association" if it refuses to engage in the trade of any goods or services,
10 refrains from continuing an existing business relationship, or declines to enter into,
11 modifies, or terminates an existing business relationship for any of the following
12 reasons:
13 (i) To comply with federal, state, or local law, policy, or regulations or a
14 directive by a regulator.
15 (ii) For any traditional or ordinary business reason that is specific to the
16 customer or potential customer and not based solely on an entity's or association's
17 status as a firearm entity or firearm trade association.
18 (c) Nothing in this Paragraph shall be construed to require a company that
19 is a merchant, retail seller, or platform to sell or list for sale ammunition, firearms,
20 or firearm accessories.
21 (4) "Firearm" shall mean a weapon that expels a projectile by the action of
22 explosive or expanding gases.
23 (5) "Firearm accessory" shall mean:
24 (a) A device specifically designed or adapted to enable an individual to
25 wear, carry, store, or mount a firearm on the individual or on a conveyance.
26 (b) An item used in conjunction with or mounted on a firearm that is not
27 essential to the basic function of the firearm, including a detachable firearm
28 magazine.
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HB NO. 978
1 (6) "Firearm entity" shall mean:
2 (a) A manufacturer, distributor, wholesaler, supplier, or retailer of firearms,
3 firearm accessories, or ammunition.
4 (b) A business establishment, private club, or association that operates an
5 area for the discharge or other use of firearms for silhouette, skeet, trap, black
6 powder, target, self-defense, or similar recreational shooting, at which not fewer than
7 twenty different individuals discharge firearms each calendar year.
8 (7) "Firearm trade association" shall mean any person, corporation,
9 unincorporated association, federation, business league, or business organization that
10 meets all of the following criteria:
11 (a) Is not organized or operated for profit and for which none of its net
12 earnings inures to the benefit of any private shareholder or individual.
13 (b) Has two or more firearm entities as members.
14 (c) Is exempt from federal income taxation pursuant to 26 U.S.C. 501(a) as
15 an organization described by 26 U.S.C. 501(c)(6).
16 B.(1) The provisions of this Section shall apply to any contract with a value
17 of one hundred thousand dollars or more that meets all of the following criteria:
18 (a) It is to be paid partly or wholly from public funds.
19 (b) It is between a public entity and a company with at least ten full-time
20 employees.
21 (c) It is entered into on or after August 1, 2022.
22 (2) Notwithstanding the provisions of Paragraph (1) of this Subsection, the
23 provisions of this Section shall not apply if either of the following conditions are
24 met:
25 (a) The contract is with a sole-source provider.
26 (b) The public entity does not receive any bids from companies that are able
27 to provide the written verification required by this Section.
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HB NO. 978
1 C. A public entity may not enter into a contract with a company for the
2 purchase of goods or services unless the contract contains a written verification from
3 the company of both of the following:
4 (1) The company does not have a practice, policy, guidance, or directive that
5 discriminates against a firearm entity or firearm trade association based solely on the
6 entity's or association's status as a firearm entity or firearm trade association.
7 (2) The company will not discriminate against a firearm entity or firearm
8 trade association during the term of the contract based solely on the entity's or
9 association's status as a firearm entity or firearm trade association.
10 Section 2. R.S. 39:1602.2 is hereby enacted to read as follows:
11 §1602.2. Prohibition on contracts with companies that discriminate against firearm
12 and ammunition industries
13 A. As used in this Section, the following terms shall have the following
14 meanings unless the context clearly indicates otherwise:
15 (1) "Ammunition" shall mean a loaded cartridge case, primer, bullet, or
16 propellant powder with or without a projectile.
17 (2) "Company" shall mean a for-profit organization, association, corporation,
18 partnership, joint venture, limited partnership, limited liability partnership, or limited
19 liability company that exists to make a profit. "Company" shall not mean a sole
20 proprietorship.
21 (3)(a) "Discriminate against a firearm entity or firearm trade association"
22 shall mean the company:
23 (i) Refuses to engage in the trade of any goods or services with the entity or
24 association based solely on its status as a firearm entity or firearm trade association.
25 (ii) Refrains from continuing an existing business relationship with the entity
26 or association based solely on its status as a firearm entity or firearm trade
27 association.
28 (iii) Terminates an existing business relationship with the entity or
29 association based solely on its status as a firearm entity or firearm trade association.
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HB NO. 978
1 (b) A company does not "discriminate against a firearm entity or firearm
2 trade association" if it refuses to engage in the trade of any goods or services,
3 refrains from continuing an existing business relationship, or declines to enter into,
4 modifies, or terminates an existing business relationship for any of the following
5 reasons:
6 (i) To comply with federal, state, or local law, policy, or regulations or a
7 directive by a regulator.
8 (ii) For any traditional or ordinary business reason that is specific to the
9 customer or potential customer and not based solely on an entity's or association's
10 status as a firearm entity or firearm trade association.
11 (c) Nothing in this Paragraph shall be construed to require a company that
12 is a merchant, retail seller, or platform to sell or list for sale ammunition, firearms,
13 or firearm accessories.
14 (4) "Firearm" shall mean a weapon that expels a projectile by the action of
15 explosive or expanding gases.
16 (5) "Firearm accessory" shall mean:
17 (a) A device specifically designed or adapted to enable an individual to
18 wear, carry, store, or mount a firearm on the individual or on a conveyance.
19 (b) An item used in conjunction with or mounted on a firearm that is not
20 essential to the basic function of the firearm, including a detachable firearm
21 magazine.
22 (6) "Firearm entity" shall mean:
23 (a) A manufacturer, distributor, wholesaler, supplier, or retailer of firearms,
24 firearm accessories, or ammunition.
25 (b) A business establishment, private club, or association that operates an
26 area for the discharge or other use of firearms for silhouette, skeet, trap, black
27 powder, target, self-defense, or similar recreational shooting, at which not fewer than
28 twenty different individuals discharge firearms each calendar year.
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HB NO. 978
1 (7) "Firearm trade association" shall mean any person, corporation,
2 unincorporated association, federation, business league, or business organization that
3 meets all of the following criteria:
4 (a) Is not organized or operated for profit and for which none of its net
5 earnings inures to the benefit of any private shareholder or individual.
6 (b) Has two or more firearm entities as members.
7 (c) Is exempt from federal income taxation pursuant to 26 U.S.C. 501(a) as
8 an organization described by 26 U.S.C. 501(c)(6).
9 (8) "Public entity" shall mean:
10 (a) Any department, office division, commission, council, board, bureau,
11 committee, institution, agency, government corporation, or other establishment or
12 official of the executive branch of state government.
13 (b) Any parish, city, town, governmental body, and any other subdivision of
14 the state or public agency thereof, public authority, public educational, health, or
15 other institution, and to the extent provided by law, any other entity which expends
16 public funds for the acquisition or leasing of supplies, services, major repairs, and
17 construction, and any nonprofit corporation operating a charitable hospital.
18 B.(1) The provisions of this Section shall apply to any contract with a value
19 of one hundred thousand dollars or more that meets all of the following criteria:
20 (a) It is to be paid partly or wholly from public funds.
21 (b) It is between a public entity and a company with at least ten full-time
22 employees.
23 (c) It is entered into on or after August 1, 2022.
24 (2) Notwithstanding the provisions of Paragraph (1) of this Subsection, the
25 provisions of this Section shall not apply if either of the following conditions are
26 met:
27 (a) The contract is with a sole-source provider.
28 (b) The public entity does not receive any bids from companies that are able
29 to provide the written verification required by this Section.
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1 C. A public entity may not enter into a contract with a company for the
2 purchase of goods or services unless the contract contains a written verification from
3 the company of both of the following:
4 (1) The company does not have a practice, policy, guidance, or directive that
5 discriminates against a firearm entity or firearm trade association based solely on the
6 entity's or association's status as a firearm entity or firearm trade association.
7 (2) The company will not discriminate against a firearm entity or firearm
8 trade association during the term of the contract based solely on the entity's or
9 association's status as a firearm entity or firearm trade association.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 978 Reengrossed 2022 Regular Session Miguez
Abstract:
Prohibits state agencies and political subdivisions from entering into public
works or procurement contracts with companies that discriminate against firearm entities or
trade associations.
Proposed law creates certain restrictions with respect to the ability of the state and its
political subdivisions to contract pursuant to the Public Bid Law (R.S. 38:2181 et seq.) and
the La. Procurement Code (R.S. 39:1551 et seq.).
PUBLIC BID LAW
Present law establishes the Public Bid Law to govern the letting of contracts for materials
and supplies necessary to conduct public business and for the erection, construction,
alteration, improvement, or repair of any public facility or land owned, used, or leased by
a public entity. Defines "public entity" to mean the state of La., or any agency, board,
commission, department, or public corporation of the state, or any political subdivision of
the state, and any public housing authority, public school board, or any public officer
whether or not an officer of a public corporation or political subdivision. (Pursuant to
present law, the term does not include a public body or officer where the particular
transaction of the public body or officer is governed by the provisions of the model
procurement code.)
Proposed law adds an additional restriction to contracts let by public entities pursuant to
present law. Prohibits a public entity from entering into a contract with a company for the
purchase of goods or services unless the contract contains a written verification from the
company of both of the following:
(1)The company does not have a practice, policy, guidance, or directive that
discriminates against a firearm entity or firearm trade association based solely on the
entity's or association's status as a firearm entity or firearm trade association.
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HB NO. 978
(2)The company will not discriminate against a firearm entity or firearm trade
association during the term of the contract based solely on the entity's or
association's status as a firearm entity or firearm trade association.
Further provides that proposed law applies only to a contract with a value of $100,000 or
more that meets all of the following criteria:
(1)It is to be paid partly or wholly from public funds.
(2)It is between a public entity and a company with at least 10 full-time employees.
(3)It is entered into on or after Aug. 1, 2022.
Further establishes exceptions to proposed law for sole-source provider contracts and
circumstances where the public entity does not receive any bids from companies that are able
to provide the written verification required by proposed law.
Proposed law provides that "discriminate against a firearm entity or firearm trade
association" shall mean that a company:
(1)Refuses to engage in the trade of any goods or services with the entity or association
based solely on the entity's or association's status as a firearm entity or firearm trade
association.
(2)Refrains from continuing an existing business relationship with the entity or
association based solely on the entity's or association's status as a firearm entity or
firearm trade association.
(3)Terminates an existing business relationship with the entity or association based
solely on the entity or association's status as a firearm entity or firearm trade
association.
Further provides that a company does not "discriminate against a firearm entity or firearm
trade association" if it refuses to engage in the trade of any goods or services, refrains from
continuing an existing business relationship, or declines to enter into, modifies, or terminates
an existing business relationship for any of the following reasons:
(1)To comply with federal, state, or local law, policy or regulations or a directive by a
regulator.
(2)For any traditional or ordinary 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.
Further provides that nothing in proposed law shall be construed to require a company that
is a merchant, retail seller, or platform to sell or list for sale ammunition, firearms, or firearm
accessories.
LOUISIANA PROCUREMENT CODE
Present law establishes the La. Procurement Code to govern buying, purchasing, renting,
leasing, or otherwise obtaining supplies, services, or major repairs by any governmental
body of the state. Present law defines "governmental body" as any department, office,
division, commission, council, board, bureau, committee, institution, agency, government
corporation, or other establishment or official of the executive branch of state government.
Present law further authorizes political subdivisions to participate in certain contracts let
pursuant to present law.
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HB NO. 978
Present law (R.S. 39:2191, et seq.) establishes restrictions on contracting that apply to any
bid or award resulting from present law (the La. Procurement Code). Proposed law adds an
additional restriction for contracts let public entities pursuant to the La. Procurement Code.
Defines "public entity" as:
(1)Any department, office division, commission, council, board, bureau, committee,
institution, agency, government corporation, or other establishment or official of the
executive branch of state government.
(2)Any parish, city, town, governmental body, and any other subdivision of the state or
public agency thereof, public authority, public educational, health, or other
institution, and to the extent provided by law, any other entity which expends public
funds for the acquisition or leasing of supplies, services, major repairs, and
construction, and any nonprofit corporation operating a charitable hospital.
Proposed law prohibits a public entity from entering into a contract with a company for the
purchase of goods or services unless the contract contains a written verification from the
company of both of the following:
(1)The company does not have a practice, policy, guidance, or directive that
discriminates against a firearm entity or firearm trade association based solely on the
entity's or association's status as a firearm entity or firearm trade association.
(2)The company will not discriminate against a firearm entity or firearm trade
association during the term of the contract based solely on the entity's or
association's status as a firearm entity or firearm trade association.
Further provides that proposed law only applies to a contract with a value of $100,000 or
more that meets all of the following criteria:
(1)It is to be paid partly or wholly from public funds.
(2)It is between a public entity and a company with at least 10 full-time employees.
(3)It is entered into on or after Aug. 1, 2022.
Further establishes exceptions to proposed law for sole-source provider contracts and
circumstances where the public entity does not receive any bids from companies that are able
to provide the written verification required by proposed law.
Proposed law provides that "discriminate against a firearm entity or firearm trade
association" shall mean that a company:
(1)Refuses to engage in the trade of any goods or services with the entity or association
based solely on the entity's or association's status as a firearm entity or firearm trade
association.
(2)Refrains from continuing an existing business relationship with the entity or
association based solely on the entity's or association's status as a firearm entity or
firearm trade association.
(3)Terminates an existing business relationship with the entity or association based
solely on the entity's or association's status as a firearm entity or firearm trade
association.
Further provides that a company does not "discriminate against a firearm entity or firearm
trade association" if it refuses to engage in the trade of any goods or services, refrains from
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HB NO. 978
continuing an existing business relationship, or declines to enter into, modifies, or terminates
an existing business relationship for any of the following reasons:
(1)To comply with federal, state, or local law, policy, or regulations or a directive by
a regulator.
(2)For any traditional or ordinary 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.
Further provides that nothing in proposed law shall be construed to require a company that
is a merchant, retail seller, or platform to sell or list for sale ammunition, firearms, or firearm
accessories.
(Adds R.S. 38:2216.1 and R.S. 39:1602.2)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Remove wholly owned subsidiaries, majority-owned subsidiaries, parent
companies, or affiliates of those entities or associations from the definition of
"company" in proposed law.
2. Provide that a company does not "discriminate against a firearm entity or firearm
trade association" if it refuses to engage in business with, refrains from
continuing an existing business relationship with, or alters or terminates an
existing business relationship for any ordinary business reason that is specific to
the customer and not based solely on an entity's or association's status as a
firearm entity or firearm trade association.
The House Floor Amendments to the engrossed bill:
1. Change a defined term in proposed law from "governmental entity" to "public
entity".
2. Make technical changes.
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